Document And Entity Information
Document And Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Mar. 04, 2016 | Jun. 30, 2015 | |
Entity Registrant Name | Anika Therapeutics, Inc. | ||
Entity Central Index Key | 898,437 | ||
Trading Symbol | anik | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Accelerated Filer | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Common Stock, Shares Outstanding (in shares) | 14,330,207 | ||
Entity Public Float | $ 483,203,467 | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2015 | ||
Document Fiscal Year Focus | 2,015 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Dec. 31, 2015 | Dec. 31, 2014 |
Current assets: | ||
Cash and cash equivalents | $ 110,707,000 | $ 100,156,000 |
Investments | 27,751,000 | 6,750,000 |
Accounts receivable, net of reserves of $167 and $147 at December 31, 2015 and December 31, 2014, respectively | 21,652,000 | 17,152,000 |
Inventories | 14,938,000 | 12,407,000 |
Prepaid expenses and other current assets | 1,385,000 | 1,371,000 |
Total current assets | 176,433,000 | 137,836,000 |
Property and equipment, net | 40,108,000 | 31,669,000 |
Long-term deposits and other | 69,000 | 69,000 |
Intangible assets, net | 11,656,000 | 14,895,000 |
Goodwill | 7,482,000 | 8,339,000 |
Total assets | 235,748,000 | 192,808,000 |
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||
Accounts payable | 8,302,000 | 1,201,000 |
Accrued expenses and other current liabilities | 4,778,000 | $ 4,772,000 |
Income taxes payable | 4,198,000 | |
Total current liabilities | 17,278,000 | $ 5,973,000 |
Other long-term liabilities | 781,000 | 894,000 |
Long-term deferred revenue | 66,000 | 102,000 |
Deferred tax liability | $ 6,775,000 | $ 7,741,000 |
Commitments and contingencies | ||
Stockholders’ equity: | ||
Preferred stock, $.01 par value; 1,250,000 shares authorized, no shares issued and outstanding at December 31, 2015 and December 31, 2014, respectively | $ 0 | $ 0 |
Common stock, $.01 par value; 30,000,000 shares authorized, 15,036,808 and 14,851,703 shares issued and outstanding at December 31, 2015 and December 31, 2014, respectively | 150,000 | 149,000 |
Additional paid-in-capital | 81,685,000 | 77,540,000 |
Accumulated other comprehensive loss | (6,649,000) | (4,495,000) |
Retained earnings | 135,662,000 | 104,904,000 |
Total stockholders’ equity | 210,848,000 | 178,098,000 |
Total Liabilities and Stockholders’ Equity | $ 235,748,000 | $ 192,808,000 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parentheticals) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Accounts receivable, net of reserves | $ 167 | $ 147 |
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (in shares) | 1,250,000 | 1,250,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 30,000,000 | 30,000,000 |
Common stock, shares issued (in shares) | 15,036,808 | 14,851,703 |
Common stock,shares outstanding (in shares) | 15,036,808 | 14,851,703 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations and Comprehensive Income - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Product revenue | $ 87,696 | $ 75,474 | $ 71,774 |
Licensing, milestone and contract revenue | 5,303 | 30,121 | 3,307 |
Total revenue | 92,999 | 105,595 | 75,081 |
Operating expenses: | |||
Cost of product revenue | 21,053 | 20,930 | 22,765 |
Research & development | 8,987 | 8,144 | 7,060 |
Selling, general & administrative | $ 14,825 | $ 15,074 | 12,936 |
Restructuring credits | (287) | ||
Total operating expenses | $ 44,865 | $ 44,148 | 42,474 |
Income from operations | 48,134 | 61,447 | 32,607 |
Interest income (expense), net | 120 | 58 | (127) |
Income before income taxes | 48,254 | 61,505 | 32,480 |
Provision for income taxes | 17,496 | 23,186 | 11,905 |
Net income | $ 30,758 | $ 38,319 | $ 20,575 |
Basic net income per share: | |||
Basic net income per share (in dollars per share) | $ 2.06 | $ 2.61 | $ 1.46 |
Basic weighted average common shares outstanding (in shares) | 14,934 | 14,678 | 14,087 |
Diluted net income per share: | |||
Diluted net income per share (in dollars per share) | $ 2.01 | $ 2.51 | $ 1.39 |
Diluted weighted average common shares outstanding (in shares) | 15,321 | 15,269 | 14,826 |
Net income | $ 30,758 | $ 38,319 | $ 20,575 |
Other comprehensive income (loss): | |||
Foreign currency translation adjustment | (2,154) | (2,796) | 956 |
Comprehensive income | $ 28,604 | $ 35,523 | $ 21,531 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | AOCI Attributable to Parent [Member] | Total |
Balance (in shares) at Dec. 31, 2012 | 13,866,060 | ||||
Balance at Dec. 31, 2012 | $ 139,000 | $ 65,431,000 | $ 46,010,000 | $ (2,655,000) | $ 108,925,000 |
Issuance of common stock for equity awards (in shares) | 423,248 | ||||
Issuance of common stock for equity awards | $ 4,000 | 3,050,000 | 3,054,000 | ||
Tax benefit related to equity awards | 857,000 | 857,000 | |||
Stock-based compensation expense | 1,268,000 | 1,268,000 | |||
Net income | 20,575,000 | 20,575,000 | |||
Other comprehensive income | 956,000 | 956,000 | |||
Balance (in shares) at Dec. 31, 2013 | 14,289,308 | ||||
Balance at Dec. 31, 2013 | $ 143,000 | 70,606,000 | 66,585,000 | (1,699,000) | 135,635,000 |
Issuance of common stock for equity awards (in shares) | 696,169 | ||||
Issuance of common stock for equity awards | $ 7,000 | 2,048,000 | 2,055,000 | ||
Tax benefit related to equity awards | 9,626,000 | 9,626,000 | |||
Stock-based compensation expense | 1,607,000 | 1,607,000 | |||
Net income | 38,319,000 | 38,319,000 | |||
Other comprehensive income | (2,796,000) | (2,796,000) | |||
Balance (in shares) at Dec. 31, 2014 | 14,851,703 | ||||
Balance at Dec. 31, 2014 | $ 149,000 | 77,540,000 | 104,904,000 | (4,495,000) | 178,098,000 |
Retirement of common stock for minimum tax withholdings (in shares) | (133,774) | ||||
Retirement of common stock for minimum tax withholdings | $ (1,000) | (6,347,000) | (6,348,000) | ||
Issuance of common stock for equity awards (in shares) | 185,105 | ||||
Issuance of common stock for equity awards | $ 1,000 | 1,073,000 | 1,074,000 | ||
Tax benefit related to equity awards | 847,000 | 847,000 | |||
Stock-based compensation expense | 2,225,000 | 2,225,000 | |||
Net income | 30,758,000 | 30,758,000 | |||
Other comprehensive income | (2,154,000) | (2,154,000) | |||
Balance (in shares) at Dec. 31, 2015 | 15,036,808 | ||||
Balance at Dec. 31, 2015 | $ 150,000 | $ 81,685,000 | $ 135,662,000 | $ (6,649,000) | $ 210,848,000 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Cash flows from operating activities: | |||
Net income | $ 30,758,000 | $ 38,319,000 | $ 20,575,000 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 3,775,000 | 4,706,000 | 4,772,000 |
Stock-based compensation expense | 2,225,000 | 1,607,000 | 1,268,000 |
Deferred income taxes | (747,000) | $ 815,000 | 2,206,000 |
Provision for doubtful accounts | 38,000 | 238,000 | |
Provision for inventory | $ 210,000 | $ 378,000 | 171,000 |
Gain on sale of assets | (126,000) | ||
Tax benefit from equity awards | $ (847,000) | $ (9,626,000) | $ (857,000) |
Non-cash impairment charges for IPR&D | $ 697,000 | ||
Restructuring credits | $ (161,000) | ||
Changes in operating assets and liabilities: | |||
Accounts receivable | $ (4,996,000) | $ 898,000 | 2,411,000 |
Inventories | (2,939,000) | (1,974,000) | (2,823,000) |
Prepaid expenses, other current and long-term assets | 89,000 | 585,000 | 307,000 |
Accounts payable | 5,625,000 | (750,000) | 623,000 |
Accrued expenses | (199,000) | (1,189,000) | (377,000) |
Deferred revenue | (15,000) | (2,014,000) | (2,795,000) |
Income taxes payable | 5,484,000 | 8,436,000 | 152,000 |
Other long-term liabilities | (94,000) | (213,000) | (419,000) |
Net cash provided by operating activities | 39,064,000 | 39,978,000 | $ 25,165,000 |
Cash flows from investing activities: | |||
Proceeds from maturity of investments | 24,250,000 | 20,000,000 | |
Purchase of investments | (45,251,000) | (26,750,000) | |
Purchase of property and equipment | $ (9,225,000) | $ (1,553,000) | $ (441,000) |
Proceeds from sale of assets | 188,000 | ||
Net cash used in investing activities | $ (30,226,000) | $ (8,303,000) | (253,000) |
Cash flows from financing activities: | |||
Principal payments on debt | (9,600,000) | ||
Proceeds from exercise of equity awards | $ 1,074,000 | $ 2,055,000 | 3,054,000 |
Tax benefit from equity awards | $ 847,000 | 9,626,000 | $ 857,000 |
Minimum tax withholdings on share-based awards | (6,349,000) | ||
Net cash provided by financing activities | $ 1,921,000 | 5,332,000 | $ (5,689,000) |
Exchange rate impact on cash | (208,000) | (184,000) | 43,000 |
Increase in cash and cash equivalents | 10,551,000 | 36,823,000 | 19,266,000 |
Cash and cash equivalents at beginning of period | 100,156,000 | 63,333,000 | 44,067,000 |
Cash and cash equivalents at end of period | 110,707,000 | 100,156,000 | 63,333,000 |
Supplemental disclosure of cash flow information: | |||
Cash paid for income taxes | $ 12,724,000 | $ 13,778,000 | 9,842,000 |
Cash paid for interest | 126,000 | ||
Non-cash Investing Activities: | |||
Purchases of property and equipment included in accounts payable and accrued expenses | $ 1,949,000 | $ 52,000 | $ 364,000 |
Note 1 - Nature of Business
Note 1 - Nature of Business | 12 Months Ended |
Dec. 31, 2015 | |
Notes to Financial Statements | |
Nature of Operations [Text Block] | 1. Nature of Business Anika Therapeutics, Inc. is a global, integrated orthopedic medicines company committed to improving the lives of patients with degenerative orthopedic diseases and traumatic conditions by providing innovative and differentiated therapeutic pain management solutions along the continuum of care, from palliative care to regenerative medicine. The Company has over two decades of expertise developing, manufacturing and commercializing more than 20 products, in markets across the globe, based on the Company’s proprietary hyaluronic acid technology. The Company’s orthopedic medicine portfolio is comprised of marketed (ORTHOVISC and MONOVISC) and pipeline (CINGAL and HYALOFAST in the United States) products to alleviate pain and restore joint function by replenishing depleted HA and aiding cartilage repair and regeneration. The Company is subject to risks common to companies in the biotechnology and medical device industries including, but not limited to, development by the Company or its competitors of new technological innovations, dependence on key personnel, protection of proprietary technology, commercialization of existing and new products, and compliance with FDA and foreign regulations and approval requirements, as well as the ability to grow the Company’s business through appropriate commercial strategies. |
Note 2 - Summary of Significant
Note 2 - Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2015 | |
Notes to Financial Statements | |
Significant Accounting Policies [Text Block] | 2. Summary of Significant Accounting Policies Use of Estimates The preparation of financial statements in conformity with generally accepted accounting principles in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Principles of Consolidation The accompanying consolidated financial statements include the accounts of Anika Therapeutics, Inc. and its wholly owned subsidiaries, Anika Securities, Inc. (a Massachusetts Securities Corporation), and Anika Therapeutics S.r.l. All intercompany balances and transactions have been eliminated in consolidation. Certain prior period amounts have been reclassified to conform to the current period presentation. There was no impact on operating income. Foreign Currency Translation The functional currency of our foreign subsidiary is the Euro. Assets and liabilities of the foreign subsidiary are translated using the exchange rate existing on each respective balance sheet date. Revenues and expenses are translated using the monthly average exchange rates prevailing throughout the year. The translation adjustments resulting from this process are included as a component of accumulated currency translation adjustment which resulted in a loss from foreign currency translation of $2.2 million and $2.8 million for the years ended December 31, 2015 and 2014, respectively. The translation adjustments resulted in a gain from foreign currency translation of $1.0 million for the year ended December 31, 2013. The Company recognized a loss from foreign currency transactions of $0.4 million and $0.6 million during the years ended December 31, 2015 and 2014, respectively and a gain from foreign currency transactions of $259 thousand during the year ended December 31, 2013. Fair Value Measurements Fair value is defined as the price that would be received from selling an asset, or paid to transfer a liability, in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities required to be recorded at fair value, the Company considers the principal or most advantageous market in which it would transact and consider assumptions that market participants would use when pricing the asset or liability, such as inherent risk, transfer restrictions and risk of non-performance. The accounting standard establishes a fair value hierarchy that requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. A financial instrument’s categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. Three levels of inputs that may be used to measure fair value are: • Level 1 – Valuation is based upon quoted prices for identical instruments traded in active markets. Level 1 instruments include securities traded on active exchange markets, such as the New York Stock Exchange. • Level 2 – Valuation is based upon quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active and model-based valuation techniques for which all significant assumptions are directly observable in the market. • Level 3 – Valuation is generated from model-based techniques that use significant assumptions not observable in the market. These unobservable assumptions reflect our own estimates of assumptions market participants would use in pricing the instrument. The Company’s financial assets have been classified as Level 2. The Company’s financial assets (which include cash equivalents and investments) have been initially valued at the transaction price and subsequently valued, at the end of each reporting period, utilizing third party pricing services or other market observable data. Allowance for Doubtful Accounts The Company maintains an allowance for doubtful accounts for estimated losses resulting from the inability of our customers to make required payments, and are included in general and administrative expenses in the accompanying consolidated statements of operations. In determining the adequacy of the allowance for doubtful accounts, management specifically analyzes individual accounts receivable, historical bad debts, customer concentrations, customer credit-worthiness, current economic conditions, accounts receivable aging trends, and changes in our customer payment terms. A summary of activity in the allowance for doubtful accounts is as follows (in thousands): December 31, 2015 2014 2013 Balance, beginning of the year $ 147 $ 593 $ 337 Amounts provided 38 - 238 Amounts written off (3 ) (377 ) - Translation adjustments (15 ) (69 ) 18 Balance, end of the year $ 167 $ 147 $ 593 Revenue Recognition - General The Company recognizes revenue when all of the following criteria are met: persuasive evidence of an arrangement exists, risk of loss has passed or services have been rendered, the seller's price to the buyer is fixed or determinable, and collection from the customer is reasonably assured. Product Revenue Revenues from product sales are recognized when title and risk of loss have passed to the customer, which is typically upon shipment to the customer. Amounts billed or collected prior to recognition of revenue are classified as deferred revenue. When determining whether risk of loss has transferred to customers on product sales, or if the sales price is fixed or determinable, the Company evaluates both the contractual terms and conditions of its distribution and supply agreements as well as its business practices. Product revenue also includes royalties. Royalty revenue is based on our distributors’ sales and recognized in the same period our distributors record their sale of products manufactured by us. On a quarterly basis the Company records royalty revenue based upon sales provided to us by our distributor customers. Pursuant to the Health Care and Education Reconciliation Act of 2010, in conjunction with the Patient Protection and Affordable Care Act, a medical device excise tax (“MDET”) became effective on January 1, 2013 for sales of certain medical devices. Some of our product sales are subject to the provisions of the MDET. The Company has elected to recognize any amounts related to the MDET under the gross method as allowed under ASC 605-45. For the periods ended December 31, 2015 and 2014, amounts included in revenues and costs of goods sold for the MDET were immaterial. On December 18, 2015, President Obama signed the Consolidated Appropriations Act of 2016, which suspends the 2.3 percent MDET beginning on January 1, 2016, with the suspension ending on December 31, 2017. Licensing, Milestone, and Contract Revenue Licensing, milestone, and contract revenue consist of revenue recognized on initial and milestone payments, as well as contractual amounts received from partners. The Company’s business strategy includes entering into collaborative license, development and/or supply agreements with partners for the development and commercialization of the Company’s products. Under the milestone method, the Company recognizes a consideration that is contingent upon the achievement of a milestone in its entirety as revenue in the period in which the milestone is achieved only if the milestone is substantive in its entirety. A milestone is considered substantive when it meets all of the following criteria: 1. The consideration is commensurate with either the entity’s performance to achieve the milestone or the enhancement of the value of the delivered item(s) as a result of a specific outcome resulting from the entity’s performance to achieve the milestone, 2. The consideration relates solely to past performance, and 3. The consideration is reasonable relative to all of the deliverables and payment terms within the arrangement. A milestone is defined as an event (i) that can only be achieved based in whole or in part on either the entity’s performance or on the occurrence of a specific outcome resulting from the entity’s performance, (ii) for which there is substantive uncertainty at the date the arrangement is entered into that the event will be achieved and (iii) that would result in additional payments being due to the Company. Non substantive milestones are recognized when there are no further obligations by the Company. The terms of the agreements typically include non-refundable license fees, funding of research and development and payments based upon achievement of certain milestones. The Company adopted ASU 2009-13, Revenue Recognition, Multiple Element Arrangements Cash and Cash Equivalents The Company considers only those investments which are highly liquid, readily convertible to cash, and that mature within three months from date of purchase to be cash equivalents. The Company’s cash equivalents consist of money market funds and bank certificates of deposit with an original maturity of less than 90 days. Investments The Company’s investments consist of bank certificates of deposit with an original maturity of more than 90 days. The Company has designated all investments as available-for-sale and therefore, such investments are reported at fair value, with unrealized gains and losses recorded in accumulated other comprehensive income. For securities sold prior to maturity, the cost of securities sold is based on the specific identification method. Realized gains and losses on the sale of investments are recorded in interest income (expense), net. Interest is recorded when earned. Investments with original maturities greater than approximately three months and remaining maturities less than one year are classified as short-term investments. Investments with remaining maturities greater than one year are classified as long-term investments. The Company considers securities with maturities of three months or less from the purchase date to be cash equivalents. All of the Company’s investments are subject to a periodic impairment review. The Company recognizes an impairment charge when a decline in the fair value of its investments below the cost basis is judged to be other-than-temporary. Factors considered in determining whether a loss is temporary include the extent and length of time the investment's fair value has been lower than its cost basis, the financial condition and near-term prospects of the investee, extent of the loss related to credit of the issuer, the expected cash flows from the security, the Company’s intent to sell the security, and whether or not the Company will be required to sell the security prior the expected recovery of the investment's amortized cost basis. During the years ended December 31, 2015 and 2014, the Company did not record any other-than-temporary impairment charges on its available-for-sale securities because the Company does not intend to sell the securities and it is not more likely than not that the Company will be required to sell these securities before the recovery of their amortized cost basis. Concentration of Credit Risk and Significant Customers The Company has no significant off-balance sheet risks related to foreign exchange contracts, option contracts, or other foreign hedging arrangements. The Company’s cash equivalents and investments are held with two major international financial institutions. The Company, by policy, routinely assesses the financial strength of its customers. As a result, the Company believes that its accounts receivable credit risk exposure is limited. As of December 31, 2015 and 2014, DePuy Mitek, represented 60% and 52%, respectively, of the Company’s accounts receivable balance, no other single customer accounted for more than 10% of accounts receivable in either period. Inventories Inventories are stated at the lower of cost or market, with cost being determined using the first-in, first-out method. Work-in-process and finished goods inventories include materials, labor and manufacturing overhead. Inventory costs associated with product candidates that have not yet received regulatory approval are capitalized if the Company believes there is probable future commercial use and future economic benefit. The Company’s policy is to write-down inventory when conditions exist that suggest inventory may be in excess of anticipated demand or is obsolete based upon assumptions about future demand for the Company’s products and market conditions. The Company regularly evaluates the ability to realize the value of inventory based on a combination of factors including, but not limited to, historical usage rates, forecasted sales or usage, product end of life dates, and estimated current or future market values. Purchasing requirements and alternative usage avenues are explored within these processes to mitigate inventory exposure. When recorded, inventory write-downs are intended to reduce the carrying value of inventory to its net realizable value. Inventory and $12.4 million as of December 31, 2015 and 2014, respectively, is stated net of inventory reserves of approximately $0.9 million and $0.9 million, respectively. If actual demand for the Company’s products deteriorates, or market conditions are less favorable than those projected, additional inventory write-downs may be required. Property and Equipment Property and equipment are recorded at cost and depreciated using the straight-line method over their estimated useful lives. Equipment and software are typically amortized over two to ten years, and furniture and fixtures over five to seven years. Leasehold improvements are amortized over the shorter of their useful lives or the remaining terms of the related leases. Maintenance and repairs are charged to expense when incurred; additions and improvements are capitalized. When an item is sold or retired, the cost and related accumulated depreciation is relieved, and the resulting gain or loss, if any, is recognized in income. Construction-in-process is stated at cost, which includes the cost of construction and other direct costs attributable to the construction. Construction-in-process is not depreciated until such time as the relevant assets are completed and put into use. Construction-in-process at December 31, 2015 and 2014 primarily represents the costs of building, leasehold improvements, machinery and equipment under installation. Goodwill and Acquired Intangible Assets Goodwill is the amount by which the purchase price of acquired net assets in a business combination exceeded the fair values of net identifiable assets on the date of acquisition. Acquired IPR&D represents the fair value assigned to research and development assets that we acquire that have not been completed at the date of acquisition or are pending regulatory approval in certain jurisdictions. The value assigned to the acquired IPR&D is determined by estimating the costs to develop the acquired technology into commercially viable products, estimating the resulting revenue from the projects, and discounting the net cash flows to present value. Goodwill and IPR&D are evaluated for impairment annually or more frequently if events or changes in circumstances indicate that the asset might be impaired. Factors the Company considers important, on an overall company basis, that could trigger an impairment review include significant underperformance relative to historical or projected future operating results, significant changes in the Company’s use of the acquired assets or the strategy for its overall business, significant negative industry or economic trends, a significant decline in our stock price for a sustained period, or a reduction of our market capitalization relative to net book value. To conduct impairment tests of goodwill, the fair value of the reporting unit is compared to its carrying value. If the reporting unit’s carrying value exceeds its fair value, we record an impairment loss to the extent that the carrying value of goodwill exceeds its implied fair value. The Company estimates the fair value for its reporting unit using discounted cash flow valuation models which require the use of significant estimates and assumptions, including but not limited to, risk free rate of return on an investment, weighted average cost of capital, future revenue, operating margin, working capital, and capital expenditure needs. The Company’s annual assessment for impairment of goodwill as of November 30, 2015 indicated that the fair value of our reporting unit exceeded the carrying value of the reporting unit. To conduct impairment tests of IPR&D, the fair value of the IPR&D project is compared to its carrying value. If the carrying value exceeds its fair value, the Company records an impairment loss to the extent that the carrying value of the IPR&D project exceeds its fair value. The Company estimates the fair value for IPR&D projects using discounted cash flow valuation models, which require the use of significant estimates and assumptions, including but not limited to, estimating the timing of and expected costs to complete the in-process projects, projecting regulatory approvals, estimating future cash flows from product sales resulting from completed projects and in-process projects, and developing appropriate discount rates. During the fourth quarter of 2015 the Company performed an impairment review of its IPR&D projects as it reassessed its R&D strategy. The Company recorded an impairment charge of $0.7 million due to the decision to discontinue further development efforts needed to commercialize this technology. Long-Lived Assets Long-lived assets primarily include property and equipment, and intangible assets with finite lives. The Company’s intangible assets are comprised of purchased developed technologies, distributor relationships, patents and trade names. These intangible assets are carried at cost, net of accumulated amortization. Amortization is recorded on a straight-line basis over the intangible assets' useful lives, which range from approximately 5 to 16 years. The Company reviews long-lived assets for impairment when events or changes in business circumstances indicate that the carrying amount of the assets may not be fully recoverable or that the useful lives of those assets are no longer appropriate. Each impairment test is based on a comparison of the undiscounted cash flows to the recorded value of the asset. If impairment is indicated, the asset is written down to its estimated fair value based on a discounted cash flow analysis. Research and Development Research and development costs consist primarily of salaries and related expenses for personnel and fees paid to outside consultants and outside service providers, including costs associated with licensing, milestone, and contract revenue. Research and development costs are expensed as incurred. Stock-Based Compensation The Company measures the compensation cost of award recipients’ services received in exchange for an award of equity instruments based on the grant date fair value of the underlying award. That cost is recognized over the period during which an employee is required to provide service in exchange for the award. See Note 13 for a description of the types of stock-based awards granted, the compensation expense related to such awards, and detail of equity-based awards outstanding. For performance based awards with financial achievement targets, the Company recognizes expense using the graded vesting methodology based on the number of shares expected to vest. Compensation cost associated with these grants was estimated using the Black-Scholes valuation method multiplied by the expected number of shares to be issued, which is adjusted based on the estimated probabilities of achieving the performance goals. Changes to the probability assessment and the estimated shares expected to vest will result in adjustments to the related share-based compensation expense that will be recorded in the period of the change. If the performance targets are not achieved, no compensation cost is recognized, and any previously recognized compensation cost is reversed. The Company recorded approximately $0.4 million related to performance based awards in 2015. There was no expense recognized on performance based awards in 2014 as satisfaction of the performance conditions were not considered probable. Income Taxes The Company’s income tax expense includes U.S. and international income taxes. Certain items of income and expense are not reported in tax returns and financial statements in the same year. The tax effects of these timing differences are reported as deferred tax assets and liabilities. Deferred tax assets are recognized for the estimated future tax effects of deductible temporary differences, tax operating losses, and tax credit carry-forwards (including investment tax credits). Changes in deferred tax assets and liabilities are recorded in the provision for income taxes. The Company assesses the likelihood that its deferred tax assets will be recovered from future taxable income and, to the extent it believes that it is more likely than not that all or a portion of deferred tax assets will not be realized, the Company establishes a valuation allowance to reduce the deferred tax assets to the appropriate valuation. To the extent the Company establishes a valuation allowance or increases or decreases this allowance in a given period, it includes the related tax expense or tax benefit within the tax provision in the consolidated statement of operations in that period. Comprehensive Income Comprehensive income consists of net income and other comprehensive income (loss), which includes foreign currency translation adjustments, and unrealized gains and losses on available-for-sale securities. For the purposes of comprehensive income disclosures, the Company does not record tax provisions or benefits for the net changes in the foreign currency translation adjustment, as it intends to indefinitely reinvest undistributed earnings of its foreign subsidiary. Accumulated other comprehensive income (loss) is reported as a component of stockholders' equity and, for the years ended December 31, 2015 and 2014, comprehensive income was comprised solely of cumulative translation adjustments. Segment Information Operating segments, as defined under U.S. GAAP, are components of an enterprise about which separate financial information is available that is evaluated regularly by the chief operating decision maker, or decision-making group, in deciding how to allocate resources and in assessing performance. The Company’s chief operating decision maker is its Chief Executive Officer. Based on the criteria established by ASC 280, Segment Reportin Subsequent Events Events occurring subsequent to December 31, 2015 have been evaluated for potential recognition or disclosure in the consolidated financial statements. See Note 19 Subsequent Events Recent Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-09, “Revenue from Contracts with Customers.” ASU 2014-09 supersedes the revenue recognition requirements in “Topic 605, Revenue Recognition” and requires entities to recognize revenue in a way that depicts the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. In July 2015, the FASB issued ASU No. 2015-11, Inventory (Topic 330) “Simplifying the Measurement of Inventory.” In November 2015 FASB issued ASU No. 2015-17, Income Taxes (Topic 740) Balance Sheet Classification of Deferred Taxes. ASU 2015-17 requires entities to present deferred tax assets and deferred tax liabilities as noncurrent in a classified balance sheet. The ASU simplifies the current guidance, which requires entities to separately present deferred tax assets and deferred tax liabilities as current and noncurrent in a classified balance sheet. The guidance in ASU 2015-17 is required for annual reporting periods beginning after December 15, 2016, including interim periods within the reporting period. We early adopted the provisions of this ASU during the fourth quarter of fiscal year 2015 and applied it retrospectively. The adoption of ASU 2015-17 resulted in the reclassification of $2.3 million of current deferred tax assets to a reduction in noncurrent deferred tax liabilities as of December 31, 2015. We retrospectively adjusted the December 31, 2014 consolidated balance sheet and related disclosures to reflect the reclassification of $1.2 million of current deferred tax assets to a reduction in noncurrent deferred tax liabilities. Adoption of this standard did not impact results of operations, retained earnings, or cash flows in the current or previous interim and annual reporting periods. In February 2016, the FASB issued “Leases (Topic 842)” (ASU 2016-02). This new standard amends existing leasing accounting requirements. The most significant change will result in the recognition of lease assets and lease liabilities by lessees for virtually all leases. The new guidance will also require significant additional disclosures about the amount, timing and uncertainty of cash flows from leases. ASU 2016-02 is effective for fiscal years and interim periods beginning after December 15, 2018. Upon adoption, entities are required to recognize and measure leases at the beginning of the earliest period presented using a modified retrospective approach. Early adoption is permitted, and a number of optional practical expedients may be elected to simplify the impact of adoption. We are currently evaluating the impact of adopting this guidance. |
Note 3 - Investments
Note 3 - Investments | 12 Months Ended |
Dec. 31, 2015 | |
Notes to Financial Statements | |
Cash and Cash Equivalents Disclosure [Text Block] | 3. Investments All of the Company’s investments are classified as available-for-sale and are carried at fair value with unrealized gains and losses recorded as a component of accumulated other comprehensive income, net of related income taxes. The Company held corporate debt securities of $2.0 million at December 31, 2015 and bank certificates of deposits of $25.8 million and $6.8 million at December 31, 2015 and 2014, respectively. There were no unrealized gains or losses on the Company’s available-for-sale securities at December 31, 2015 or 2014. |
Note 4 - Fair Value Measurement
Note 4 - Fair Value Measurements | 12 Months Ended |
Dec. 31, 2015 | |
Notes to Financial Statements | |
Fair Value Disclosures [Text Block] | 4. Fair Value Measurements The Company’s investments are all classified within Level 2 of the fair value hierarchy. The Company’s investments classified within Level 2 of the fair value hierarchy are valued based on matrix pricing compiled by third party pricing vendors, using observable market inputs such as interest rates, yield curves, and credit risk. The fair value hierarchy of the Company’s cash equivalents and investments at fair value is as follows (in thousands): Fair Value Measurements at Reporting December 31, 2015 Quoted Prices in Significant Other Significant Cash equivalents: Money market funds $ 61,385 $ - $ 61,385 $ - Bank certificates of deposit 250 - 250 - Total cash equivalents $ 61,635 $ - $ 61,635 $ - Investments: Corporate debt securities $ 2,001 $ - $ 2,001 $ - Bank certificates of deposit 25,750 - 25,750 - Total investments $ 27,751 $ - $ 27,751 $ - Fair Value Measurements at Reporting December 31, 2014 Quoted Prices in Significant Other Significant Cash equivalents: Money market funds $ 69,552 $ - $ 69,552 $ - Bank certificates of deposit 3,000 - 3,000 - Total cash equivalents $ 72,552 $ - $ 72,552 $ - Investments: Bank certificates of deposit $ 6,750 $ - $ 6,750 $ - The Company did not have any transfers between Level 1 and Level 2 or transfers in or out of Level 3 of the fair value hierarchy during the years ended December 31, 2015 and 2014. |
Note 5 - Earnings Per Share ("E
Note 5 - Earnings Per Share ("EPS") | 12 Months Ended |
Dec. 31, 2015 | |
Notes to Financial Statements | |
Earnings Per Share [Text Block] | 5. Earnings per Share (“EPS”) Basic EPS is calculated by dividing net income by the weighted average number of shares outstanding during the period. Unvested restricted shares, although legally issued and outstanding, are not considered outstanding for purposes of calculating basic earnings per share. Diluted EPS is calculated by dividing net income by the weighted average number of shares outstanding plus the dilutive effect, if any, of outstanding stock options, stock appreciation rights (“SAR’s”), restricted shares, and restricted stock units using the treasury stock method. The following table provides share information used in the calculation of the Company's basic and diluted earnings per share (in thousands): Years Ended December 31, 2015 2014 2013 Shares used in the calculation of basic earnings per share 14,934 14,678 14,087 Effect of dilutive securities: Stock options, SARs, and RSAs 387 591 739 Diluted shares used in the calculation of earnings per share 15,321 15,269 14,826 Stock options to purchase 197,691 shares, 129,540 shares, and 21,326 shares for 2015, 2014, and 2013, respectively, were excluded from the computation of diluted EPS as their effect would have been anti-dilutive. At December 31, 2015, 2014, and 2013, 62,825 shares, 30,700 shares, and 52,339 shares of issued and outstanding unvested restricted stock, respectively, were excluded from the basic earnings per share. |
Note 6 - Inventories
Note 6 - Inventories | 12 Months Ended |
Dec. 31, 2015 | |
Notes to Financial Statements | |
Inventory Disclosure [Text Block] | 6. Inventories Inventories consist of the following (in thousands): December 31, 2015 2014 Raw materials $ 5,780 $ 6,162 Work-in-process 5,656 3,041 Finished goods 3,502 3,204 Total $ 14,938 $ 12,407 |
Note 7 - Property and Equipment
Note 7 - Property and Equipment | 12 Months Ended |
Dec. 31, 2015 | |
Notes to Financial Statements | |
Property, Plant and Equipment Disclosure [Text Block] | 7. Property and Equipment Property and equipment is stated at cost and consists of the following (in thousands): December 31, 2015 2014 Equipment and software $ 24,512 $ 24,176 Furniture and fixtures 1,240 1,296 Leasehold improvements 27,622 27,589 Construction in progress 11,274 559 Subtotal 64,648 53,620 Less accumulated depreciation (24,540 ) (21,951 ) Total $ 40,108 $ 31,669 Depreciation expense was $2.7 million, $2.6 million, and $2.7 million for the years ended December 31, 2015, 2014, and 2013, respectively. |
Note 8 - Acquired Intangible As
Note 8 - Acquired Intangible Assets, Net | 12 Months Ended |
Dec. 31, 2015 | |
Notes to Financial Statements | |
Goodwill and Intangible Assets Disclosure [Text Block] | 8. Acquired Intangible Assets, Net In November 2007, in connection with the termination of the agreement with Galderma which originally granted to Galderma the worldwide rights to commercialize, distribute, and market the ELEVESS product, the Company reacquired the worldwide rights and control of the future development and marketing of ELEVESS. The intangible asset realized during this process was the ELEVESS trade name. On December 30, 2009, in connection with the acquisition of Anika S.r.l., the Company purchased various intangible assets. The Company finalized the purchase price allocation relative to this acquisition during the fourth quarter of 2010. The Company recorded an impairment charge totaling $0.7 million to write-off in-process research and development that was recorded in connection with our acquisition of Anika S.r.l. Subsequent to an evaluation in the fourth quarter of the ongoing research and development efforts surrounding the Hemostatic Patch IPR&D project, the Company determined it would discontinue further development efforts needed to commercialize this technology. As a result of this decision, an impairment charge was recorded. These amounts are included in research and development expenses on our consolidated statements of operations. In January 2015 the Company received CE Mark approval for HYALOSPINE which is an innovative adhesion prevention gel for use after spinal surgery, and was a component of the IPR&D intangible assets initially identified. As a result of this approval the Company has reclassified $400 thousand from IPR&D to developed technology and began amortization on the HYALOSPINE asset. Amortization expense was $1.1 million, $2.1 million, and $2.1 million for the years ended December 31, 2015, 2014, and 2013, respectively. Amortization expense on intangible assets is expected to be approximately $1.0 million in 2016, $0.9 million annually through 2020 and approximately $3.8 million in aggregate thereafter. Intangible assets consist of the following (in thousands): December 31, 2015 December 31, 2014 Gross Value Current Period Completed Projects Abandonment Accumulated Currency Translation Adjustment Accumulated Amortization Net Book Value Net Book Value Useful Life Developed technology $ 16,700 $ 400 $ - $ (3,215 ) $ (5,926 ) $ 7,959 $ 9,410 15 In-process research & development 5,503 (400 ) (697 ) (1,307 ) - 3,099 4,653 Indefinite Distributor relationships 4,700 - - (415 ) (4,285 ) - - 5 Patents 1,000 - - (194 ) (333 ) 473 581 16 Elevess trade name 1,000 - - - (875 ) 125 251 9 Total $ 28,903 $ - $ (697 ) $ (5,131 ) $ (11,419 ) $ 11,656 $ 14,895 |
Note 9 - Goodwill
Note 9 - Goodwill | 12 Months Ended |
Dec. 31, 2015 | |
Notes to Financial Statements | |
Goodwill Disclosure [Text Block] | 9. Goodwill The Company completed its annual impairment review as of November 30, 2015 and concluded that no impairment in the carrying value exists as of that date with respect to goodwill. Through December 31, 2015, there have not been any events or changes in circumstances that indicate that the carrying value of goodwill may not be recoverable. Changes in the carrying value of goodwill were as follows (in thousands): December 31, 2015 2014 Balance, beginning $ 8,339 $ 9,444 Effect of foreign currency adjustments (857 ) (1,105 ) Balance, ending $ 7,482 $ 8,339 |
Note 10 - Accrued Expenses
Note 10 - Accrued Expenses | 12 Months Ended |
Dec. 31, 2015 | |
Notes to Financial Statements | |
Accounts Payable and Accrued Liabilities Disclosure [Text Block] | 10. Accrued Expenses Accrued expenses consist of the following (in thousands): December 31, 2015 2014 Compensation and related expenses $ 3,082 $ 2,792 Facility construction costs 415 - Research grants 381 539 Clinical trial costs 252 508 Professional fees 210 554 Other 438 379 Total $ 4,778 $ 4,772 |
Note 11 - Deferred Revenue
Note 11 - Deferred Revenue | 12 Months Ended |
Dec. 31, 2015 | |
Notes to Financial Statements | |
Deferred Revenue Disclosure [Text Block] | 11. Deferred Revenue In December 2003, the Company entered into the Mitek ORTHOVISC Agreement with Ortho Biotech Products, L.P., a member of the Johnson & Johnson family of companies, to market ORTHOVISC in the U.S. In mid-2005, the agreement was assigned to Mitek. Under the Mitek ORTHOVISC Agreement, Mitek performs sales, marketing, and distribution functions, and Mitek licenses the right to further develop and commercialize ORTHOVISC, as well as other new products for the treatment of pain associated with osteoarthritis based on the Company’s viscosupplementation technology. In support of the license, the Mitek ORTHOVISC Agreement provides that Mitek will fund post-marketing clinical trials for new indications of ORTHOVISC. The Company received an initial payment of $2.0 million upon entering into the Mitek ORTHOVISC Agreement, a milestone payment of $20.0 million in February 2004 as a result of obtaining FDA approval of ORTHOVISC, and a milestone payment of $5.0 million in December 2004 for planned upgrades to our manufacturing operations. The Company evaluated the terms of the Mitek ORTHOVISC Agreement and determined that the upfront fee and milestone payments did not meet the conditions to be recognized separately from the supply agreement. These payments were recognized into revenue as all of the performance obligations were met. In December 2011, the Company entered into a fifteen-year licensing agreement (the “Mitek MONOVISC Agreement”) with DePuy Synthes Mitek Sports Medicine, a division of DePuy Orthopaedics, Inc., to exclusively market MONOVISC in the U.S. The Company received an upfront payment of $2.5 million in December 2011. This non-refundable upfront payment did not have standalone value without Anika’s completion of development obligations, which included obtaining regulatory approval of the product and resolving the related patent litigation. As a result, the Company recognized the upfront payment over the development obligation period. During the first quarter of 2014, the Company received FDA approval of MONOVISC and resolved the patent lawsuit with Genzyme Corporation. As a result of the full delivery of its development obligations under this agreement, the Company recognized approximately $2.2 million, which represented the remaining balance of deferred revenue relating to the initial $2.5 million payment. In the first quarter of 2014, the Company also received a milestone payment of $17.5 million as a result of achieving FDA approval for MONOVISC and resolving the patent litigation with Genzyme. This milestone payment was fully recognized as revenue during the three months ended March 31, 2014. On April 15, 2014 the first U.S. commercial sale of MONOVISC was made by our commercial partner, Mitek. Under the terms of the Mitek MONOVISC Agreement, the Company earned and collected a milestone payment of $5 million, which was fully recognized as revenue in the second quarter of 2014. On November 10, 2014, the Center for Medicare & Medicaid Services ("CMS") assigned a unique Healthcare Common Procedure Coding System ("HCPCS") code, or J-Code, to MONOVISC. The issuance of this code by CMS set national Medicare reimbursement rates for the product. The new J-Code became effective on January 1, 2015. As a result of CMS assigning the J-Code, the Company collected a milestone payment of $5.0 million, which was fully recognized as revenue in the fourth quarter of 2014. During the fourth quarter of 2015, the Company collected and fully recognized revenue for a milestone payment of $5.0 million as a result of U.S. MONOVISC annual end-user sales exceeding $50 million. For the year ended December 31, 2015 and 2014, the Company recognized a total of $5.0 million and $29.7 million in milestone revenue related to MONOVISC, respectively. |
Note 12 - Commitments and Conti
Note 12 - Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2015 | |
Notes to Financial Statements | |
Commitments and Contingencies Disclosure [Text Block] | 12. Commitments and Contingencies Leasing Arrangements The Company’s headquarters facility is located in Bedford, Massachusetts, where the Company leases approximately 134,000 square feet of administrative, manufacturing, and R&D space. This lease was entered into on January 4, 2007, and the lease commenced on May 1, 2007 for an initial term of ten and one-half years. The Company has an option under the lease to extend its terms for up to four additional periods beyond the original expiration date subject to the condition that the Company notify the landlord that the Company is exercising each option at least one year prior to the expiration of the original or then current term. The first three renewal options each extend the term an additional five years, while the final renewal option extends the term by six years. The Company’s administrative and R&D personnel moved into the Bedford facility in November of 2007. The Bedford facility was fully validated and approved by applicable regulatory authorities in 2012. Anika S.r.l., leases approximately 28,000 square feet of laboratory, warehouse and office space in Abano Terme, Italy. The lease commenced on December 30, 2009 for an initial term of six (6) years, with options to extend, which the Company has not exercised as of December 31, 2015 and is currently renting this facility under a six year lease that Anika may terminate at any time by providing six months’ notice. The Company expects to exit this facility in late 2016. On October 9, 2015, Anika S.r.l, entered into a build-to-suit lease agreement with Consorzio Zona Industriale E Porto Fluviale di Padova (“ZIP”), as landlord, pursuant to which Anika S.r.l. will lease a new Eurpoean headquarters facility, consisting of approximately 33,000 square feet of general office, research and development, training, and warehousing space located in Padova, Italy. The Lease has an initial term of fifteen years, which is expected to commence during the fourth quarter of 2016 once construction of the facility is completed. The Lease will automatically renew for up to three additional six-year terms, subject to certain terms and conditions. The Company has the ability to withdraw from this lease subject to certain financial penalties after six years and with no penalties after the ninth year. Beginning on the commencement date, the Lease provides for an initial yearly rent of approximately $0.4 million. Construction of the new facility is expected to begin in the first quarter of 2016 and is expected to be completed in late 2016. During the period of construction the Company is considered the deemed owner of the facility and as a result at December 31, 2015 has recorded a construction-in-process asset of approximately $0.2 million, and an offsetting facility lease obligation of approximately $30 thousand associated with the new facility. Rental expense in connection with the various facility leases totaled $1.3 million for the year ended December 31, 2015, and $1.4 million, for the years ended December 31, 2014 and 2013, respectively. The Company’s future lease commitments as of December 31, 2015 are as follows (in thousands): 2016 $ 1,540 2017 1,309 2018 1,309 2019 1,319 2020 and thereafter 4,926 Total $ 10,403 Warranty and Guarantor Arrangements In certain of our contracts, the Company warrants to its customers that the products it manufactures conform to the product specifications as in effect at the time of delivery of the specific product. The Company may also warrant that the products it manufactures do not infringe, violate or breach any U.S. patent or intellectual property rights, trade secret, or other proprietary information of any third party. On occasion, the Company contractually indemnifies its customers against any and all losses arising out of, or in any way connected with, any claim or claims of breach of its warranties or any actual or alleged defect in any product caused by the negligence or acts or omissions of the Company. The Company maintains a products liability insurance policy that limits its exposure to these risks. Based on the Company’s historical activity, in combination with its liability insurance coverage, the Company believes the estimated fair value of these indemnification agreements is immaterial. The Company has no accrued warranties at December 31, 2015 or 2014, respectively, and has no history of claims paid. Legal Proceedings On July 7, 2010, Genzyme Corporation filed a complaint against the Company in the United States District Court for the District of Massachusetts seeking unspecified damages and equitable relief. The complaint alleged that the Company infringed U.S. Patent No. 5,143,724 by manufacturing MONOVISC in the United States for sale outside the United States and would infringe U.S. Patent Nos. 5,143,724 and 5,399,351 if the Company manufactured and sold MONOVISC in the United States. On March 7, 2014, Genzyme and the Company filed a joint motion to lift the stay in Genzyme’s lawsuit against the Company and to dismiss with prejudice all of Genzyme’s claims. On March 10, 2014, the District Court granted the motion to dismiss all of Genzyme’s claims against the Company with prejudice, and the case was terminated. The Company is involved in various other legal proceedings arising in the normal course of business. Although the outcomes of these other legal proceedings are inherently difficult to predict, the Company does not expect the resolution of these other legal proceedings to have a material adverse effect on our financial position, results of operations, or cash flow. |
Note 13 - Equity Incentive Plan
Note 13 - Equity Incentive Plan | 12 Months Ended |
Dec. 31, 2015 | |
Notes to Financial Statements | |
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] | 13. Equity Incentive Plan The Anika Therapeutics, Inc. Stock Option and Incentive Plan, as amended, (the “2003 Plan”) provides for grants of nonqualified and incentive stock options, common stock, restricted stock, restricted stock units, and SAR’s to employees, directors, officers, and consultants. The 2003 Plan was originally approved by the Board of Directors on April 4, 2003, approved by the Company’s shareholders on June 4, 2003, and reserved 1,500,000 shares of common stock for grant pursuant to its terms. There are 1,251,635 shares available for future grant at December 31, 2015. On May 29, 2009, the Board of Directors approved changes to the 2003 Plan and adopted the Amended and Restated 2003 Stock Option and Incentive Plan (the “Amended 2003 Plan”) to increase the number of shares available to grant by 850,000. The Amended 2003 Plan was approved by the Company’s shareholders on June 5, 2009, and it resulted in a total of 2,350,000 shares of common stock being reserved for issuance under the Amended 2003 Plan. At the 2011 Annual Meeting of Stockholders on June 7, 2011, the shareholders of the Company approved the Anika Therapeutics, Inc. Second Amended and Restated Stock Option and Incentive Plan (the “2003 Plan”), which, among other things, increased the number of shares reserved for issuance under the Company’s predecessor stock option and incentive plan by 800,000 to 3,150,000 shares. Pursuant to this amendment and restatement to the 2003 Plan approved by our shareholders, each share award issued after June 7, 2011 other than options or stock appreciation rights will reduce the number of total shares available for grant by 1.9 shares. At the 2013 Annual Meeting of Stockholders on June 18, 2013, the shareholders of the Company approved an additional amendment to the Amended 2003 Plan, which, among other things, increased the number of shares reserved for issuance under the Company’s stock option and incentive plan by 650,000 to 3,800,000 shares. Pursuant to this amendment and restatement to the 2003 Plan approved by our shareholders, each share award issued after June 18, 2013 other than options or stock appreciation rights will reduce the number of total shares available for grant by 1.5 shares The Company may satisfy the awards upon exercise, or upon fulfillment of the vesting requirements for other equity-based awards, with either newly-issued shares or shares reacquired by the Company. Stock-based awards are granted with an exercise price equal to the market price of the Company’s stock on the date of grant. Awards contain service conditions or service and performance conditions, and they generally become exercisable ratably over one to four years. The Company estimates the fair value of stock options and SAR’s using the Black-Scholes valuation model. Fair value of restricted stock is measured by the grant-date price of the Company’s shares. Key input assumptions used to estimate the fair value of stock options and SAR’s include the exercise price of the award, the expected award term, the expected volatility of the Company’s stock over the option’s expected term, the risk-free interest rate over the award’s expected term, and the Company’s expected annual dividend yield. The Company uses historical data on the exercise of stock options and other factors to evaluate and estimate the expected term of share-based awards. The Company also evaluates actual forfeiture rates periodically and adjusts the expected forfeiture rate assumption within the model accordingly. The expected volatility assumption is evaluated against the historical volatility of the Company’s common stock over a four year average, and it is adjusted if there are material swings in historical volatility. The risk-free interest rate assumption is based on U.S. Treasury interest rates at the time of grant. The fair value of each stock option and SAR award during 2015, 2014, and 2013 was estimated on the grant date using the Black-Scholes option-pricing model with the following assumptions: December 31, 2015 2014 2013 Risk free interest rate 1.15% - 1.46% 1.16% - 1.39% 0.61% - 1.02% Expected volatility 53.15% - 54.65% 53.28% - 57.05% 53.60% - 57.60% Expected life (years) 4.5 4.0 4.0 Expected dividend yield 0.00% 0.00% 0.00% The Company recorded $2.2 million, $1.6 million, and $1.3 million of share-based compensation expense for the years ended December 31, 2015, 2014, and 2013, respectively, for stock options, SAR’s, and restricted stock awards. The Company presents the expenses related to stock-based compensation awards in the same expense line items as cash compensation paid to each of its employees. Combined stock options and SAR’s activity under our plans is summarized as follows for the years ended December 31, 2015 and 2014, respectively: 2015 2014 Number of Weighted Number of Weighted Options and SAR's outstanding at beginning of year 851,287 $ 14.85 1,513,326 $ 9.14 Granted 111,625 $ 39.25 179,240 $ 35.62 Cancelled (85,349 ) $ 19.77 (53,325 ) $ 23.73 Expired (8,825 ) $ 20.03 (24,292 ) $ 9.87 Exercised (106,478 ) $ 10.96 (763,662 ) $ 7.95 Options and SAR's outstanding at end of year 762,260 $ 18.75 851,287 $ 14.85 Of the 762,260 options and SAR’s outstanding at December 31, 2015, 734,301 are vested or are expected to vest, with a weighted-average exercise price of approximately $17.88 as well as an aggregate intrinsic value of approximately $15 million related to these awards. The weighted average remaining contractual term of the vested and expected to vest options and SAR’s was 6.7 years as of December 31, 2015. As of December 31, 2015, total unrecognized compensation costs related to non-vested options and SAR’s was approximately $2.6 million and is expected to be recognized over a weighted average period of 2.5 years. There were 140,023 incentive stock options exercisable at December 31, 2015 with a weighted-average exercise price of $9.52 and a weighted-average remaining contractual term of 5.6 years for these awards. There were 225,620 non-qualified stock options exercisable at December 31, 2015 with a weighted-average exercise price of $12.27 and a weighted-average remaining contractual term of 6.3 years. There were 56,220 SAR’s exercisable at December 31, 2015 with a weighted-average exercise price of $8.30 and a weighted-average remaining contractual term of 2.9 years for these awards. The aggregate intrinsic value of stock options and SAR’s fully vested at December 31, 2015 and 2014 was $11.6 million and $12.0 million, respectively. The aggregate intrinsic value of stock options and SAR’s outstanding at December 31, 2015 and 2014 was $15.2 million and $21.7 million, respectively. The total intrinsic value of options and SAR’s exercised was $3.1 million and $26.7 million for the years ended December 31, 2015 and 2014, respectively. During the second quarter of 2014, the Company acquired, and subsequently retired, 133,774 common shares related to an employee SAR’s exercise to meet minimum statutory tax withholding requirements. The total fair value of options and SAR’s vested during the years ended December 31, 2015 and 2014 was approximately $1.1 million for both periods. The Company received $1.1 million and $2.1 million for exercises of stock options during the years ended December 31, 2015 and 2014, respectively. The restricted stock activity for the years ended December 31, 2015 and 2014 is as follows: 2015 2014 Number of Weighted Number of Weighted Nonvested at Beginning of year 109,614 $ 23.91 79,591 $ 11.93 Granted 81,080 $ 37.84 60,098 $ 32.02 Cancelled (10,635 ) $ 32.02 (7,500 ) $ 25.46 Expired - $ - - $ - Vested/Released (29,675 ) $ 19.31 (22,575 ) $ 10.01 Nonvested at end of year 150,384 $ 34.29 109,614 $ 23.91 The total fair value of restricted stock and restricted stock units vested during the year ended December 31, 2015 and 2014 was $1.2 million and $0.8 million. |
Note 14 - Shareholder Rights Pl
Note 14 - Shareholder Rights Plan | 12 Months Ended |
Dec. 31, 2015 | |
Notes to Financial Statements | |
Stockholders' Equity Note Disclosure [Text Block] | 14. Shareholder Rights Plan On April 4, 2008, the Board of Directors of the Company adopted a Shareholder Rights Plan (the “2008 Plan”) that replaced the Company’s former Shareholder Rights Plan. Under the 2008 Plan, the Rights generally become exercisable if: (1) A person becomes an “Acquiring Person” by acquiring 15% or more of the Company’s common stock, or (2) A person commences a tender offer that would result in that person owning 15% or more of the Company’s common stock. In the event that a person becomes an “Acquiring Person,” each holder of a Right (other than the Acquiring Person) would be entitled to acquire a number of shares of preferred stock equivalent to shares of the Company’s common stock having a value of twice the exercise price of the Right. If, after any such event, the Company enters into a merger or other business combination transaction with another entity, each holder of a Right would then be entitled to purchase, at the then-current exercise price, shares of the acquiring company’s common stock having a value of twice the exercise price of the Right. The current exercise price per Right is $75.00. The Rights may be redeemed in whole, but not in part, at a price of $0.01 per Right (payable in cash, shares of the Company’s common stock or other consideration deemed appropriate by the Board of Directors) by the Board of Directors only until the earlier of : (1) The time at which any person becomes an “Acquiring Person,” or (2) The Expiration Date. At any time after any person becomes an “Acquiring Person,” the Board of Directors may, at its option, exchange all or any part of the then outstanding and exercisable Rights for shares of the Company’s common stock at an exchange ratio specified in the 2008 Plan. Notwithstanding the foregoing, the Board of Directors generally will not be empowered to affect such exchange at any time after any person becomes the beneficial owner of 50% or more of the Company’s common stock. In connection with the establishment of the 2008 Plan, the Board of Directors approved the creation of Preferred Stock of the Company designated as Series B Junior Participating Cumulative Preferred Stock with a par value of $0.01 per share. The Board also reserved 175,000 shares of preferred stock for issuance upon exercise of the Rights. Until a Right is exercised, the holder will have no rights as a stockholder of the Company, beyond those as an existing stockholder, including the right to vote or to receive dividends. |
Note 15 - Employee Benefit Plan
Note 15 - Employee Benefit Plan | 12 Months Ended |
Dec. 31, 2015 | |
Notes to Financial Statements | |
Compensation and Employee Benefit Plans [Text Block] | 15. Employee Benefit Plan U.S. employees are eligible to participate in the Company’s 401(k) savings plan. Employees may elect to contribute a percentage of their compensation to the plan, and the Company will make matching contributions up to a limit of 5% of an employee’s eligible compensation. In addition, the Company may make annual discretionary contributions. The Company made matching contributions of approximately $350 thousand, $350 thousand, and $362 thousand, for the years ended December 31, 2015, 2014, and 2013, respectively. |
Note 16 - Revenue by Product Gr
Note 16 - Revenue by Product Group, by Significant Customer and by Geographic Region; Geographic Information | 12 Months Ended |
Dec. 31, 2015 | |
Notes to Financial Statements | |
Segment Reporting Disclosure [Text Block] | 16. Revenue by Product Group, by Significant Customer and by Geographic Region; Geographic Information Product revenue by product group is as follows (in thousands, except percentages): Years Ended December 31, 2015 2014 2013 Revenue Percentage of Product Revenue Revenue Percentage of Product Revenue Revenue Percentage of Product Revenue Orthobiologics $ 73,247 84 % $ 61,957 82 % $ 55,956 78 % Dermal 2,266 2 % 1,334 2 % 1,817 3 % Surgical 5,812 7 % 5,855 8 % 5,446 8 % Other 6,371 7 % 6,328 8 % 8,555 11 % $ 87,696 100 % $ 75,474 100 % $ 71,774 100 % Product revenue by significant customers as a percent of product revenues is as follows: Percentage of Product Revenue 2015 2014 2013 Mitek 72 % 72 % 63 % Boehringer 5 % 4 % 5 % Medtronic 3 % 4 % 3 % Nordic Pharma 2 % 2 % 2 % Pharmascience 2 % 2 % 3 % 84 % 84 % 76 % Total revenue by geographic location based on the location of the customer in total and as a percentage of total revenue are as follows (in thousands, except percentages): Years Ended December 31, 2015 2014 2013 Total Percentage of Total Percentage of Total Percentage of Geographic Location: United States $ 76,621 82 % $ 92,259 87 % $ 58,490 78 % Europe 8,756 9 % 6,215 6 % 7,412 10 % Other 7,622 9 % 7,121 7 % 9,179 12 % Total $ 92,999 100 % $ 105,595 100 % $ 75,081 100 % The Company recorded licensing, milestone, and contract revenue of $5.3 million, $30.1 million and $3.3 million for the years ended December 31, 2015, 2014, and 2013, respectively. Substantially all licensing, milestone, and contract revenue was derived in the United States for each year presented. Net long-lived assets, consisting of net property and equipment, are subject to geographic risks because they are generally difficult to move and to effectively utilize in another geographic area in a reasonable time period and because they are relatively illiquid. Net tangible long-lived assets by principal geographic areas were as follows (in thousands): Years Ended December 31, 2015 2014 United States $ 39,732 $ 31,059 Italy 376 610 Total $ 40,108 $ 31,669 |
Note 17 - Income Taxes
Note 17 - Income Taxes | 12 Months Ended |
Dec. 31, 2015 | |
Notes to Financial Statements | |
Income Tax Disclosure [Text Block] | 17. Income Taxes Income Tax Expense The components of the Company’s income before income taxes and our provision for (benefit from) income taxes consist of the following (in thousands): Years ended December 31, 2015 2014 2013 Income (loss) before income taxes Domestic $ 48,608 $ 63,232 $ 33,061 Foreign (354 ) (1,727 ) (581 ) $ 48,254 $ 61,505 $ 32,480 Years ended December 31, 2015 2014 2013 Provision for (benefit from) income taxes: Current provision: Federal $ 14,572 $ 18,301 $ 8,024 State 3,635 3,895 1,581 Foreign 249 192 94 18,456 22,388 9,699 Deferred provision: Federal (370 ) 1,153 2,375 State (33 ) 122 115 Foreign (557 ) (477 ) (284 ) (960 ) 798 2,206 Total provision $ 17,496 $ 23,186 $ 11,905 Deferred Tax Assets and Liabilities Significant components of the Company’s deferred tax assets and liabilities consist of the following (in thousands): December 31, 2015 2014 Deferred tax assets: Net operating loss carry forward, foreign $ 1,567 $ 2,292 Stock-based compensation expense 1,043 755 Foreign currency exchange 762 353 Accrued expenses and other 510 527 Inventory reserve 547 334 Tax credit carry forward - 46 Deferred tax assets $ 4,429 $ 4,307 December 31, 2015 2014 Deferred tax liabilities: Acquisition-related Intangibles $ (3,738 ) $ (4,827 ) Depreciation (7,466 ) (7,221 ) Deferred tax liabilities $ (11,204 ) $ (12,048 ) Net deferred tax liabilities $ (6,775 ) $ (7,741 ) Tax Rate The reconciliation between the U.S. federal statutory rate and our effective rate is summarized as follows: Years ended December 31, 2015 2014 2013 Statutory federal income tax rate 35.0 % 35.0 % 35.0 % State tax expense, net of federal benefit 4.8 % 4.9 % 4.8 % Permanent items, including nondeductible expenses (0.3 %) 0.1 % (0.2 %) State investment tax credit 0.0 % (0.1 %) (0.1 %) Federal, state and foreign research and development credits (0.4 %) (0.7 %) (0.5 %) Foreign rate differential 0.1 % 0.2 % 0.1 % Domestic production deduction (2.9 %) (1.7 %) (2.4 %) Effective income tax rate 36.3 % 37.7 % 36.7 % As of December 31, 2015, the Company had NOL’s for income tax purposes in Italy of $6.3 million with no expiration date. Accounting for Uncertainty in Income Taxes The Company had no unrecognized tax benefits for the years ended December 31, 2015 and 2014, respectively. A reconciliation of the beginning and ending amount of our unrecognized tax benefits is summarized as follows (in thousands): Year ended Unrecognized tax benefit, beginning of year $ 56 Tax positions related to current year - Tax positions related to prior years - Statute expirations (56 ) Unrecognized tax benefit, end of year $ - In the normal course of business, Anika and its subsidiaries may be periodically examined by various taxing authorities. The Company files income tax returns in the U.S. federal jurisdiction, in certain U.S. states, and in Italy. The associated tax filings remain subject to examination by applicable tax authorities for a certain length of time following the tax year to which those filings relate. The 2012 through 2015 tax years remain subject to examination by the IRS and other taxing authorities for U.S. federal and state tax purposes. The 2011 through 2015 tax years remain subject to examination by the appropriate governmental authorities for Italy. The Company does not anticipate experiencing any significant increases or decreases in our unrecognized tax benefits within the twelve months following December 31, 2015. The Company incurred expenses related to stock-based compensation in 2015, 2014, and 2013 of $2.2 million, $1.6 million, and $1.3 million, respectively. Accounting for the tax effects of certain stock-based awards requires that the Company establish a deferred tax asset as the compensation expense is recognized for financial reporting prior to recognizing the related tax deduction upon exercise of the awards. The gross tax benefit recognized in the consolidated statement of operations related to stock-based compensation totaled $1.1 million, $3.1 million, and $2.0 million in 2015, 2014, and 2013, respectively. Upon the settlement of certain stock-based awards (i.e., exercise, vesting, forfeiture, or cancellation), the actual tax deduction is compared with cumulative financial reporting compensation cost and any excess tax deduction related to these awards is considered a windfall tax benefit. Such benefits are tracked in a “windfall tax benefit pool” to offset any future tax deduction shortfalls, and they will be recorded as increases to additional paid-in capital in the period when the tax deduction reduces income taxes payable. The Company follows the with-and-without approach for the direct effects of windfall/shortfall items and to determine the timing of the recognition of any related benefits. The Company recorded a net windfall of $0.9 million, $9.6 million and $0.9 million in 2015, 2014, and 2013, respectively. |
Note 18 - Quarterly Financial D
Note 18 - Quarterly Financial Data (Unaudited) | 12 Months Ended |
Dec. 31, 2015 | |
Notes to Financial Statements | |
Quarterly Financial Information [Text Block] | 18. Quarterly Financial Data (Unaudited) Year 2015 Quarter ended Quarter ended Quarter ended Quarter ended Product revenue $ 25,607 $ 23,676 $ 22,898 $ 15,515 Total revenue 30,894 23,681 22,904 15,520 Cost of product revenue 6,290 5,176 5,274 4,313 Gross profit on product revenue 19,317 18,500 17,624 11,202 Net income $ 11,042 $ 8,380 $ 7,820 $ 3,516 Per common share information: Basic net income per share $ 0.74 $ 0.56 $ 0.52 $ 0.24 Basic common shares outstanding 14,965 14,967 14,961 14,905 Diluted net income per share $ 0.72 $ 0.55 $ 0.51 $ 0.23 Diluted common shares outstanding 15,353 15,316 15,336 15,330 Year 2014 Quarter ended Quarter ended Quarter ended Quarter ended Product revenue $ 17,880 $ 21,975 $ 21,267 $ 14,352 Total revenue 23,255 22,055 26,275 34,010 Cost of product revenue 5,511 5,725 5,333 4,361 Gross profit on product revenue 12,369 16,250 15,934 9,991 Net income $ 7,816 $ 6,171 $ 9,302 $ 15,030 Per common share information: Basic net income per share $ 0.53 $ 0.42 $ 0.63 $ 1.04 Basic common shares outstanding 14,801 14,759 14,688 14,461 Diluted net income per share $ 0.51 $ 0.40 $ 0.60 $ 0.97 Diluted common shares outstanding 15,278 15,435 15,493 15,499 |
Note 19 - Subsequent Event
Note 19 - Subsequent Event | 12 Months Ended |
Dec. 31, 2015 | |
Notes to Financial Statements | |
Subsequent Events [Text Block] | 19. Subsequent Events On February 26, 2016, the Company entered into an accelerated stock repurchase agreement with Morgan Stanley & Co. LLC (“Morgan Stanley”) pursuant to a Fixed Dollar Accelerated Share Repurchase Transaction ("ASR Agreement") to purchase $25.0 million of shares of its common stock. Pursuant to the terms of the ASR Agreement, the Company paid Morgan Stanley $25.0 million in cash and received an initial delivery of 377,155 shares of the Company’s common stock on February 29, 2016. The total number of shares to be repurchased will be based generally on the daily volume-weighted average share prices of the Company’s common stock during the term of the transaction. At settlement, Morgan Stanley may be required to deliver additional shares of common stock to the Company, or, under certain circumstances, the Company may be required to deliver shares of its common stock or may elect to make a cash payment to Morgan Stanley. Final settlement of the ASR Agreement is expected to be completed in the third quarter of 2016, although the settlement may be accelerated at Morgan Stanley’s option or extended, in either case subject to certain terms and conditions. |
Significant Accounting Policies
Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Use of Estimates, Policy [Policy Text Block] | Use of Estimates The preparation of financial statements in conformity with generally accepted accounting principles in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. |
Consolidation, Policy [Policy Text Block] | Principles of Consolidation The accompanying consolidated financial statements include the accounts of Anika Therapeutics, Inc. and its wholly owned subsidiaries, Anika Securities, Inc. (a Massachusetts Securities Corporation), and Anika Therapeutics S.r.l. All intercompany balances and transactions have been eliminated in consolidation. Certain prior period amounts have been reclassified to conform to the current period presentation. There was no impact on operating income. |
Foreign Currency Transactions and Translations Policy [Policy Text Block] | Foreign Currency Translation The functional currency of our foreign subsidiary is the Euro. Assets and liabilities of the foreign subsidiary are translated using the exchange rate existing on each respective balance sheet date. Revenues and expenses are translated using the monthly average exchange rates prevailing throughout the year. The translation adjustments resulting from this process are included as a component of accumulated currency translation adjustment which resulted in a loss from foreign currency translation of $2.2 million and $2.8 million for the years ended December 31, 2015 and 2014, respectively. The translation adjustments resulted in a gain from foreign currency translation of $1.0 million for the year ended December 31, 2013. The Company recognized a loss from foreign currency transactions of $0.4 million and $0.6 million during the years ended December 31, 2015 and 2014, respectively and a gain from foreign currency transactions of $259 thousand during the year ended December 31, 2013. |
Fair Value Measurement, Policy [Policy Text Block] | Fair Value Measurements Fair value is defined as the price that would be received from selling an asset, or paid to transfer a liability, in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities required to be recorded at fair value, the Company considers the principal or most advantageous market in which it would transact and consider assumptions that market participants would use when pricing the asset or liability, such as inherent risk, transfer restrictions and risk of non-performance. The accounting standard establishes a fair value hierarchy that requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. A financial instrument’s categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. Three levels of inputs that may be used to measure fair value are: • Level 1 – Valuation is based upon quoted prices for identical instruments traded in active markets. Level 1 instruments include securities traded on active exchange markets, such as the New York Stock Exchange. • Level 2 – Valuation is based upon quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active and model-based valuation techniques for which all significant assumptions are directly observable in the market. • Level 3 – Valuation is generated from model-based techniques that use significant assumptions not observable in the market. These unobservable assumptions reflect our own estimates of assumptions market participants would use in pricing the instrument. The Company’s financial assets have been classified as Level 2. The Company’s financial assets (which include cash equivalents and investments) have been initially valued at the transaction price and subsequently valued, at the end of each reporting period, utilizing third party pricing services or other market observable data. |
Loans and Leases Receivable, Allowance for Loan Losses Policy [Policy Text Block] | Allowance for Doubtful Accounts The Company maintains an allowance for doubtful accounts for estimated losses resulting from the inability of our customers to make required payments, and are included in general and administrative expenses in the accompanying consolidated statements of operations. In determining the adequacy of the allowance for doubtful accounts, management specifically analyzes individual accounts receivable, historical bad debts, customer concentrations, customer credit-worthiness, current economic conditions, accounts receivable aging trends, and changes in our customer payment terms. A summary of activity in the allowance for doubtful accounts is as follows (in thousands): December 31, 2015 2014 2013 Balance, beginning of the year $ 147 $ 593 $ 337 Amounts provided 38 - 238 Amounts written off (3 ) (377 ) - Translation adjustments (15 ) (69 ) 18 Balance, end of the year $ 167 $ 147 $ 593 |
Revenue Recognition, Policy [Policy Text Block] | Revenue Recognition - General The Company recognizes revenue when all of the following criteria are met: persuasive evidence of an arrangement exists, risk of loss has passed or services have been rendered, the seller's price to the buyer is fixed or determinable, and collection from the customer is reasonably assured. |
Revenue Recognition, Sales of Goods [Policy Text Block] | Product Revenue Revenues from product sales are recognized when title and risk of loss have passed to the customer, which is typically upon shipment to the customer. Amounts billed or collected prior to recognition of revenue are classified as deferred revenue. When determining whether risk of loss has transferred to customers on product sales, or if the sales price is fixed or determinable, the Company evaluates both the contractual terms and conditions of its distribution and supply agreements as well as its business practices. Product revenue also includes royalties. Royalty revenue is based on our distributors’ sales and recognized in the same period our distributors record their sale of products manufactured by us. On a quarterly basis the Company records royalty revenue based upon sales provided to us by our distributor customers. Pursuant to the Health Care and Education Reconciliation Act of 2010, in conjunction with the Patient Protection and Affordable Care Act, a medical device excise tax (“MDET”) became effective on January 1, 2013 for sales of certain medical devices. Some of our product sales are subject to the provisions of the MDET. The Company has elected to recognize any amounts related to the MDET under the gross method as allowed under ASC 605-45. For the periods ended December 31, 2015 and 2014, amounts included in revenues and costs of goods sold for the MDET were immaterial. On December 18, 2015, President Obama signed the Consolidated Appropriations Act of 2016, which suspends the 2.3 percent MDET beginning on January 1, 2016, with the suspension ending on December 31, 2017. |
Revenue Recognition, Services, Licensing Fees [Policy Text Block] | Licensing, Milestone, and Contract Revenue Licensing, milestone, and contract revenue consist of revenue recognized on initial and milestone payments, as well as contractual amounts received from partners. The Company’s business strategy includes entering into collaborative license, development and/or supply agreements with partners for the development and commercialization of the Company’s products. Under the milestone method, the Company recognizes a consideration that is contingent upon the achievement of a milestone in its entirety as revenue in the period in which the milestone is achieved only if the milestone is substantive in its entirety. A milestone is considered substantive when it meets all of the following criteria: 1. The consideration is commensurate with either the entity’s performance to achieve the milestone or the enhancement of the value of the delivered item(s) as a result of a specific outcome resulting from the entity’s performance to achieve the milestone, 2. The consideration relates solely to past performance, and 3. The consideration is reasonable relative to all of the deliverables and payment terms within the arrangement. A milestone is defined as an event (i) that can only be achieved based in whole or in part on either the entity’s performance or on the occurrence of a specific outcome resulting from the entity’s performance, (ii) for which there is substantive uncertainty at the date the arrangement is entered into that the event will be achieved and (iii) that would result in additional payments being due to the Company. Non substantive milestones are recognized when there are no further obligations by the Company. The terms of the agreements typically include non-refundable license fees, funding of research and development and payments based upon achievement of certain milestones. The Company adopted ASU 2009-13, Revenue Recognition, Multiple Element Arrangements |
Cash and Cash Equivalents, Policy [Policy Text Block] | Cash and Cash Equivalents The Company considers only those investments which are highly liquid, readily convertible to cash, and that mature within three months from date of purchase to be cash equivalents. The Company’s cash equivalents consist of money market funds and bank certificates of deposit with an original maturity of less than 90 days. |
Marketable Securities, Policy [Policy Text Block] | Investments The Company’s investments consist of bank certificates of deposit with an original maturity of more than 90 days. The Company has designated all investments as available-for-sale and therefore, such investments are reported at fair value, with unrealized gains and losses recorded in accumulated other comprehensive income. For securities sold prior to maturity, the cost of securities sold is based on the specific identification method. Realized gains and losses on the sale of investments are recorded in interest income (expense), net. Interest is recorded when earned. Investments with original maturities greater than approximately three months and remaining maturities less than one year are classified as short-term investments. Investments with remaining maturities greater than one year are classified as long-term investments. The Company considers securities with maturities of three months or less from the purchase date to be cash equivalents. All of the Company’s investments are subject to a periodic impairment review. The Company recognizes an impairment charge when a decline in the fair value of its investments below the cost basis is judged to be other-than-temporary. Factors considered in determining whether a loss is temporary include the extent and length of time the investment's fair value has been lower than its cost basis, the financial condition and near-term prospects of the investee, extent of the loss related to credit of the issuer, the expected cash flows from the security, the Company’s intent to sell the security, and whether or not the Company will be required to sell the security prior the expected recovery of the investment's amortized cost basis. During the years ended December 31, 2015 and 2014, the Company did not record any other-than-temporary impairment charges on its available-for-sale securities because the Company does not intend to sell the securities and it is not more likely than not that the Company will be required to sell these securities before the recovery of their amortized cost basis. |
Concentration Risk, Credit Risk, Policy [Policy Text Block] | Concentration of Credit Risk and Significant Customers The Company has no significant off-balance sheet risks related to foreign exchange contracts, option contracts, or other foreign hedging arrangements. The Company’s cash equivalents and investments are held with two major international financial institutions. The Company, by policy, routinely assesses the financial strength of its customers. As a result, the Company believes that its accounts receivable credit risk exposure is limited. As of December 31, 2015 and 2014, DePuy Mitek, represented 60% and 52%, respectively, of the Company’s accounts receivable balance, no other single customer accounted for more than 10% of accounts receivable in either period. |
Inventory, Policy [Policy Text Block] | Inventories Inventories are stated at the lower of cost or market, with cost being determined using the first-in, first-out method. Work-in-process and finished goods inventories include materials, labor and manufacturing overhead. Inventory costs associated with product candidates that have not yet received regulatory approval are capitalized if the Company believes there is probable future commercial use and future economic benefit. The Company’s policy is to write-down inventory when conditions exist that suggest inventory may be in excess of anticipated demand or is obsolete based upon assumptions about future demand for the Company’s products and market conditions. The Company regularly evaluates the ability to realize the value of inventory based on a combination of factors including, but not limited to, historical usage rates, forecasted sales or usage, product end of life dates, and estimated current or future market values. Purchasing requirements and alternative usage avenues are explored within these processes to mitigate inventory exposure. When recorded, inventory write-downs are intended to reduce the carrying value of inventory to its net realizable value. Inventory and $12.4 million as of December 31, 2015 and 2014, respectively, is stated net of inventory reserves of approximately $0.9 million and $0.9 million, respectively. If actual demand for the Company’s products deteriorates, or market conditions are less favorable than those projected, additional inventory write-downs may be required. |
Property, Plant and Equipment, Policy [Policy Text Block] | Property and Equipment Property and equipment are recorded at cost and depreciated using the straight-line method over their estimated useful lives. Equipment and software are typically amortized over two to ten years, and furniture and fixtures over five to seven years. Leasehold improvements are amortized over the shorter of their useful lives or the remaining terms of the related leases. Maintenance and repairs are charged to expense when incurred; additions and improvements are capitalized. When an item is sold or retired, the cost and related accumulated depreciation is relieved, and the resulting gain or loss, if any, is recognized in income. Construction-in-process is stated at cost, which includes the cost of construction and other direct costs attributable to the construction. Construction-in-process is not depreciated until such time as the relevant assets are completed and put into use. Construction-in-process at December 31, 2015 and 2014 primarily represents the costs of building, leasehold improvements, machinery and equipment under installation. |
Goodwill and Intangible Assets, Goodwill, Policy [Policy Text Block] | Goodwill and Acquired Intangible Assets Goodwill is the amount by which the purchase price of acquired net assets in a business combination exceeded the fair values of net identifiable assets on the date of acquisition. Acquired IPR&D represents the fair value assigned to research and development assets that we acquire that have not been completed at the date of acquisition or are pending regulatory approval in certain jurisdictions. The value assigned to the acquired IPR&D is determined by estimating the costs to develop the acquired technology into commercially viable products, estimating the resulting revenue from the projects, and discounting the net cash flows to present value. Goodwill and IPR&D are evaluated for impairment annually or more frequently if events or changes in circumstances indicate that the asset might be impaired. Factors the Company considers important, on an overall company basis, that could trigger an impairment review include significant underperformance relative to historical or projected future operating results, significant changes in the Company’s use of the acquired assets or the strategy for its overall business, significant negative industry or economic trends, a significant decline in our stock price for a sustained period, or a reduction of our market capitalization relative to net book value. To conduct impairment tests of goodwill, the fair value of the reporting unit is compared to its carrying value. If the reporting unit’s carrying value exceeds its fair value, we record an impairment loss to the extent that the carrying value of goodwill exceeds its implied fair value. The Company estimates the fair value for its reporting unit using discounted cash flow valuation models which require the use of significant estimates and assumptions, including but not limited to, risk free rate of return on an investment, weighted average cost of capital, future revenue, operating margin, working capital, and capital expenditure needs. The Company’s annual assessment for impairment of goodwill as of November 30, 2015 indicated that the fair value of our reporting unit exceeded the carrying value of the reporting unit. To conduct impairment tests of IPR&D, the fair value of the IPR&D project is compared to its carrying value. If the carrying value exceeds its fair value, the Company records an impairment loss to the extent that the carrying value of the IPR&D project exceeds its fair value. The Company estimates the fair value for IPR&D projects using discounted cash flow valuation models, which require the use of significant estimates and assumptions, including but not limited to, estimating the timing of and expected costs to complete the in-process projects, projecting regulatory approvals, estimating future cash flows from product sales resulting from completed projects and in-process projects, and developing appropriate discount rates. During the fourth quarter of 2015 the Company performed an impairment review of its IPR&D projects as it reassessed its R&D strategy. The Company recorded an impairment charge of $0.7 million due to the decision to discontinue further development efforts needed to commercialize this technology. |
Impairment or Disposal of Long-Lived Assets, Including Intangible Assets, Policy [Policy Text Block] | Long-Lived Assets Long-lived assets primarily include property and equipment, and intangible assets with finite lives. The Company’s intangible assets are comprised of purchased developed technologies, distributor relationships, patents and trade names. These intangible assets are carried at cost, net of accumulated amortization. Amortization is recorded on a straight-line basis over the intangible assets' useful lives, which range from approximately 5 to 16 years. The Company reviews long-lived assets for impairment when events or changes in business circumstances indicate that the carrying amount of the assets may not be fully recoverable or that the useful lives of those assets are no longer appropriate. Each impairment test is based on a comparison of the undiscounted cash flows to the recorded value of the asset. If impairment is indicated, the asset is written down to its estimated fair value based on a discounted cash flow analysis. |
Research and Development Expense, Policy [Policy Text Block] | Research and Development Research and development costs consist primarily of salaries and related expenses for personnel and fees paid to outside consultants and outside service providers, including costs associated with licensing, milestone, and contract revenue. Research and development costs are expensed as incurred. |
Share-based Compensation, Option and Incentive Plans Policy [Policy Text Block] | Stock-Based Compensation The Company measures the compensation cost of award recipients’ services received in exchange for an award of equity instruments based on the grant date fair value of the underlying award. That cost is recognized over the period during which an employee is required to provide service in exchange for the award. See Note 13 for a description of the types of stock-based awards granted, the compensation expense related to such awards, and detail of equity-based awards outstanding. For performance based awards with financial achievement targets, the Company recognizes expense using the graded vesting methodology based on the number of shares expected to vest. Compensation cost associated with these grants was estimated using the Black-Scholes valuation method multiplied by the expected number of shares to be issued, which is adjusted based on the estimated probabilities of achieving the performance goals. Changes to the probability assessment and the estimated shares expected to vest will result in adjustments to the related share-based compensation expense that will be recorded in the period of the change. If the performance targets are not achieved, no compensation cost is recognized, and any previously recognized compensation cost is reversed. The Company recorded approximately $0.4 million related to performance based awards in 2015. There was no expense recognized on performance based awards in 2014 as satisfaction of the performance conditions were not considered probable. |
Income Tax, Policy [Policy Text Block] | Income Taxes The Company’s income tax expense includes U.S. and international income taxes. Certain items of income and expense are not reported in tax returns and financial statements in the same year. The tax effects of these timing differences are reported as deferred tax assets and liabilities. Deferred tax assets are recognized for the estimated future tax effects of deductible temporary differences, tax operating losses, and tax credit carry-forwards (including investment tax credits). Changes in deferred tax assets and liabilities are recorded in the provision for income taxes. The Company assesses the likelihood that its deferred tax assets will be recovered from future taxable income and, to the extent it believes that it is more likely than not that all or a portion of deferred tax assets will not be realized, the Company establishes a valuation allowance to reduce the deferred tax assets to the appropriate valuation. To the extent the Company establishes a valuation allowance or increases or decreases this allowance in a given period, it includes the related tax expense or tax benefit within the tax provision in the consolidated statement of operations in that period. |
Comprehensive Income, Policy [Policy Text Block] | Comprehensive Income Comprehensive income consists of net income and other comprehensive income (loss), which includes foreign currency translation adjustments, and unrealized gains and losses on available-for-sale securities. For the purposes of comprehensive income disclosures, the Company does not record tax provisions or benefits for the net changes in the foreign currency translation adjustment, as it intends to indefinitely reinvest undistributed earnings of its foreign subsidiary. Accumulated other comprehensive income (loss) is reported as a component of stockholders' equity and, for the years ended December 31, 2015 and 2014, comprehensive income was comprised solely of cumulative translation adjustments. |
Segment Reporting, Policy [Policy Text Block] | Segment Information Operating segments, as defined under U.S. GAAP, are components of an enterprise about which separate financial information is available that is evaluated regularly by the chief operating decision maker, or decision-making group, in deciding how to allocate resources and in assessing performance. The Company’s chief operating decision maker is its Chief Executive Officer. Based on the criteria established by ASC 280, Segment Reportin |
Subsequent Events, Policy [Policy Text Block] | Subsequent Events Events occurring subsequent to December 31, 2015 have been evaluated for potential recognition or disclosure in the consolidated financial statements. See Note 19 Subsequent Events |
New Accounting Pronouncements, Policy [Policy Text Block] | Recent Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-09, “Revenue from Contracts with Customers.” ASU 2014-09 supersedes the revenue recognition requirements in “Topic 605, Revenue Recognition” and requires entities to recognize revenue in a way that depicts the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. In July 2015, the FASB issued ASU No. 2015-11, Inventory (Topic 330) “Simplifying the Measurement of Inventory.” In November 2015 FASB issued ASU No. 2015-17, Income Taxes (Topic 740) Balance Sheet Classification of Deferred Taxes. ASU 2015-17 requires entities to present deferred tax assets and deferred tax liabilities as noncurrent in a classified balance sheet. The ASU simplifies the current guidance, which requires entities to separately present deferred tax assets and deferred tax liabilities as current and noncurrent in a classified balance sheet. The guidance in ASU 2015-17 is required for annual reporting periods beginning after December 15, 2016, including interim periods within the reporting period. We early adopted the provisions of this ASU during the fourth quarter of fiscal year 2015 and applied it retrospectively. The adoption of ASU 2015-17 resulted in the reclassification of $2.3 million of current deferred tax assets to a reduction in noncurrent deferred tax liabilities as of December 31, 2015. We retrospectively adjusted the December 31, 2014 consolidated balance sheet and related disclosures to reflect the reclassification of $1.2 million of current deferred tax assets to a reduction in noncurrent deferred tax liabilities. Adoption of this standard did not impact results of operations, retained earnings, or cash flows in the current or previous interim and annual reporting periods. In February 2016, the FASB issued “Leases (Topic 842)” (ASU 2016-02). This new standard amends existing leasing accounting requirements. The most significant change will result in the recognition of lease assets and lease liabilities by lessees for virtually all leases. The new guidance will also require significant additional disclosures about the amount, timing and uncertainty of cash flows from leases. ASU 2016-02 is effective for fiscal years and interim periods beginning after December 15, 2018. Upon adoption, entities are required to recognize and measure leases at the beginning of the earliest period presented using a modified retrospective approach. Early adoption is permitted, and a number of optional practical expedients may be elected to simplify the impact of adoption. We are currently evaluating the impact of adopting this guidance. |
Note 2 - Summary of Significa27
Note 2 - Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Notes Tables | |
Allowance for Credit Losses on Financing Receivables [Table Text Block] | December 31, 2015 2014 2013 Balance, beginning of the year $ 147 $ 593 $ 337 Amounts provided 38 - 238 Amounts written off (3 ) (377 ) - Translation adjustments (15 ) (69 ) 18 Balance, end of the year $ 167 $ 147 $ 593 |
Note 4 - Fair Value Measureme28
Note 4 - Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Notes Tables | |
Fair Value, Assets Measured on Recurring Basis [Table Text Block] | Fair Value Measurements at Reporting December 31, 2015 Quoted Prices in Significant Other Significant Cash equivalents: Money market funds $ 61,385 $ - $ 61,385 $ - Bank certificates of deposit 250 - 250 - Total cash equivalents $ 61,635 $ - $ 61,635 $ - Investments: Corporate debt securities $ 2,001 $ - $ 2,001 $ - Bank certificates of deposit 25,750 - 25,750 - Total investments $ 27,751 $ - $ 27,751 $ - Fair Value Measurements at Reporting December 31, 2014 Quoted Prices in Significant Other Significant Cash equivalents: Money market funds $ 69,552 $ - $ 69,552 $ - Bank certificates of deposit 3,000 - 3,000 - Total cash equivalents $ 72,552 $ - $ 72,552 $ - Investments: Bank certificates of deposit $ 6,750 $ - $ 6,750 $ - |
Note 5 - Earnings Per Share (29
Note 5 - Earnings Per Share ("EPS") (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Notes Tables | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | Years Ended December 31, 2015 2014 2013 Shares used in the calculation of basic earnings per share 14,934 14,678 14,087 Effect of dilutive securities: Stock options, SARs, and RSAs 387 591 739 Diluted shares used in the calculation of earnings per share 15,321 15,269 14,826 |
Note 6 - Inventories (Tables)
Note 6 - Inventories (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Notes Tables | |
Schedule of Inventory, Current [Table Text Block] | December 31, 2015 2014 Raw materials $ 5,780 $ 6,162 Work-in-process 5,656 3,041 Finished goods 3,502 3,204 Total $ 14,938 $ 12,407 |
Note 7 - Property and Equipme31
Note 7 - Property and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Notes Tables | |
Property, Plant and Equipment [Table Text Block] | December 31, 2015 2014 Equipment and software $ 24,512 $ 24,176 Furniture and fixtures 1,240 1,296 Leasehold improvements 27,622 27,589 Construction in progress 11,274 559 Subtotal 64,648 53,620 Less accumulated depreciation (24,540 ) (21,951 ) Total $ 40,108 $ 31,669 |
Note 8 - Acquired Intangible 32
Note 8 - Acquired Intangible Assets, Net (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Notes Tables | |
Schedule of Finite-Lived and Indefinite-Lived Intangible Assets by Major Class [Table Text Block] | December 31, 2015 December 31, 2014 Gross Value Current Period Completed Projects Abandonment Accumulated Currency Translation Adjustment Accumulated Amortization Net Book Value Net Book Value Useful Life Developed technology $ 16,700 $ 400 $ - $ (3,215 ) $ (5,926 ) $ 7,959 $ 9,410 15 In-process research & development 5,503 (400 ) (697 ) (1,307 ) - 3,099 4,653 Indefinite Distributor relationships 4,700 - - (415 ) (4,285 ) - - 5 Patents 1,000 - - (194 ) (333 ) 473 581 16 Elevess trade name 1,000 - - - (875 ) 125 251 9 Total $ 28,903 $ - $ (697 ) $ (5,131 ) $ (11,419 ) $ 11,656 $ 14,895 |
Note 9 - Goodwill (Tables)
Note 9 - Goodwill (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Notes Tables | |
Schedule of Goodwill [Table Text Block] | December 31, 2015 2014 Balance, beginning $ 8,339 $ 9,444 Effect of foreign currency adjustments (857 ) (1,105 ) Balance, ending $ 7,482 $ 8,339 |
Note 10 - Accrued Expenses (Tab
Note 10 - Accrued Expenses (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Notes Tables | |
Schedule of Accrued Liabilities [Table Text Block] | December 31, 2015 2014 Compensation and related expenses $ 3,082 $ 2,792 Facility construction costs 415 - Research grants 381 539 Clinical trial costs 252 508 Professional fees 210 554 Other 438 379 Total $ 4,778 $ 4,772 |
Note 12 - Commitments and Con35
Note 12 - Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Notes Tables | |
Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block] | 2016 $ 1,540 2017 1,309 2018 1,309 2019 1,319 2020 and thereafter 4,926 Total $ 10,403 |
Note 13 - Equity Incentive Pl36
Note 13 - Equity Incentive Plan (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Notes Tables | |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block] | December 31, 2015 2014 2013 Risk free interest rate 1.15% - 1.46% 1.16% - 1.39% 0.61% - 1.02% Expected volatility 53.15% - 54.65% 53.28% - 57.05% 53.60% - 57.60% Expected life (years) 4.5 4.0 4.0 Expected dividend yield 0.00% 0.00% 0.00% |
Schedule of Share-based Compensation, Stock Options and Stock Appreciation Rights Award Activity [Table Text Block] | 2015 2014 Number of Weighted Number of Weighted Options and SAR's outstanding at beginning of year 851,287 $ 14.85 1,513,326 $ 9.14 Granted 111,625 $ 39.25 179,240 $ 35.62 Cancelled (85,349 ) $ 19.77 (53,325 ) $ 23.73 Expired (8,825 ) $ 20.03 (24,292 ) $ 9.87 Exercised (106,478 ) $ 10.96 (763,662 ) $ 7.95 Options and SAR's outstanding at end of year 762,260 $ 18.75 851,287 $ 14.85 |
Schedule of Nonvested Restricted Stock Units Activity [Table Text Block] | 2015 2014 Number of Weighted Number of Weighted Nonvested at Beginning of year 109,614 $ 23.91 79,591 $ 11.93 Granted 81,080 $ 37.84 60,098 $ 32.02 Cancelled (10,635 ) $ 32.02 (7,500 ) $ 25.46 Expired - $ - - $ - Vested/Released (29,675 ) $ 19.31 (22,575 ) $ 10.01 Nonvested at end of year 150,384 $ 34.29 109,614 $ 23.91 |
Note 16 - Revenue by Product 37
Note 16 - Revenue by Product Group, by Significant Customer and by Geographic Region; Geographic Information (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Notes Tables | |
Schedule of Segment Reporting Information, by Segment [Table Text Block] | Years Ended December 31, 2015 2014 2013 Revenue Percentage of Product Revenue Revenue Percentage of Product Revenue Revenue Percentage of Product Revenue Orthobiologics $ 73,247 84 % $ 61,957 82 % $ 55,956 78 % Dermal 2,266 2 % 1,334 2 % 1,817 3 % Surgical 5,812 7 % 5,855 8 % 5,446 8 % Other 6,371 7 % 6,328 8 % 8,555 11 % $ 87,696 100 % $ 75,474 100 % $ 71,774 100 % |
Schedule of Revenue by Major Customers [Table Text Block] | Percentage of Product Revenue 2015 2014 2013 Mitek 72 % 72 % 63 % Boehringer 5 % 4 % 5 % Medtronic 3 % 4 % 3 % Nordic Pharma 2 % 2 % 2 % Pharmascience 2 % 2 % 3 % 84 % 84 % 76 % |
Schedule of Revenue and Operating Income by Geographical Areas [Table Text Block] | Years Ended December 31, 2015 2014 2013 Total Percentage of Total Percentage of Total Percentage of Geographic Location: United States $ 76,621 82 % $ 92,259 87 % $ 58,490 78 % Europe 8,756 9 % 6,215 6 % 7,412 10 % Other 7,622 9 % 7,121 7 % 9,179 12 % Total $ 92,999 100 % $ 105,595 100 % $ 75,081 100 % |
Schedule of Revenue from External Customers and Long-Lived Assets, by Geographical Areas [Table Text Block] | Years Ended December 31, 2015 2014 United States $ 39,732 $ 31,059 Italy 376 610 Total $ 40,108 $ 31,669 |
Note 17 - Income Taxes (Tables)
Note 17 - Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Notes Tables | |
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block] | Years ended December 31, 2015 2014 2013 Income (loss) before income taxes Domestic $ 48,608 $ 63,232 $ 33,061 Foreign (354 ) (1,727 ) (581 ) $ 48,254 $ 61,505 $ 32,480 Years ended December 31, 2015 2014 2013 Provision for (benefit from) income taxes: Current provision: Federal $ 14,572 $ 18,301 $ 8,024 State 3,635 3,895 1,581 Foreign 249 192 94 18,456 22,388 9,699 Deferred provision: Federal (370 ) 1,153 2,375 State (33 ) 122 115 Foreign (557 ) (477 ) (284 ) (960 ) 798 2,206 Total provision $ 17,496 $ 23,186 $ 11,905 |
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | December 31, 2015 2014 Deferred tax assets: Net operating loss carry forward, foreign $ 1,567 $ 2,292 Stock-based compensation expense 1,043 755 Foreign currency exchange 762 353 Accrued expenses and other 510 527 Inventory reserve 547 334 Tax credit carry forward - 46 Deferred tax assets $ 4,429 $ 4,307 December 31, 2015 2014 Deferred tax liabilities: Acquisition-related Intangibles $ (3,738 ) $ (4,827 ) Depreciation (7,466 ) (7,221 ) Deferred tax liabilities $ (11,204 ) $ (12,048 ) Net deferred tax liabilities $ (6,775 ) $ (7,741 ) |
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | Years ended December 31, 2015 2014 2013 Statutory federal income tax rate 35.0 % 35.0 % 35.0 % State tax expense, net of federal benefit 4.8 % 4.9 % 4.8 % Permanent items, including nondeductible expenses (0.3 %) 0.1 % (0.2 %) State investment tax credit 0.0 % (0.1 %) (0.1 %) Federal, state and foreign research and development credits (0.4 %) (0.7 %) (0.5 %) Foreign rate differential 0.1 % 0.2 % 0.1 % Domestic production deduction (2.9 %) (1.7 %) (2.4 %) Effective income tax rate 36.3 % 37.7 % 36.7 % |
Summary of Income Tax Contingencies [Table Text Block] | Year ended Unrecognized tax benefit, beginning of year $ 56 Tax positions related to current year - Tax positions related to prior years - Statute expirations (56 ) Unrecognized tax benefit, end of year $ - |
Note 18 - Quarterly Financial39
Note 18 - Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Notes Tables | |
Schedule of Quarterly Financial Information [Table Text Block] | Year 2015 Quarter ended Quarter ended Quarter ended Quarter ended Product revenue $ 25,607 $ 23,676 $ 22,898 $ 15,515 Total revenue 30,894 23,681 22,904 15,520 Cost of product revenue 6,290 5,176 5,274 4,313 Gross profit on product revenue 19,317 18,500 17,624 11,202 Net income $ 11,042 $ 8,380 $ 7,820 $ 3,516 Per common share information: Basic net income per share $ 0.74 $ 0.56 $ 0.52 $ 0.24 Basic common shares outstanding 14,965 14,967 14,961 14,905 Diluted net income per share $ 0.72 $ 0.55 $ 0.51 $ 0.23 Diluted common shares outstanding 15,353 15,316 15,336 15,330 Year 2014 Quarter ended Quarter ended Quarter ended Quarter ended Product revenue $ 17,880 $ 21,975 $ 21,267 $ 14,352 Total revenue 23,255 22,055 26,275 34,010 Cost of product revenue 5,511 5,725 5,333 4,361 Gross profit on product revenue 12,369 16,250 15,934 9,991 Net income $ 7,816 $ 6,171 $ 9,302 $ 15,030 Per common share information: Basic net income per share $ 0.53 $ 0.42 $ 0.63 $ 1.04 Basic common shares outstanding 14,801 14,759 14,688 14,461 Diluted net income per share $ 0.51 $ 0.40 $ 0.60 $ 0.97 Diluted common shares outstanding 15,278 15,435 15,493 15,499 |
Note 1 - Nature of Business (De
Note 1 - Nature of Business (Details Textual) | Dec. 31, 2015 |
Number of Products Developed, Manufactured, and Commercialized | 20 |
Note 2 - Summary of Significa41
Note 2 - Summary of Significant Accounting Policies (Details Textual) - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Performance Shares [Member] | |||
Allocated Share-based Compensation Expense | $ 400,000 | $ 0 | |
Accounts Receivable [Member] | Customer Concentration Risk [Member] | DePuy Mitek Inc [Member] | |||
Concentration Risk, Percentage | 60.00% | 52.00% | |
Machinery and Equipment [Member] | Minimum [Member] | |||
Property, Plant and Equipment, Useful Life | 2 years | ||
Machinery and Equipment [Member] | Maximum [Member] | |||
Property, Plant and Equipment, Useful Life | 10 years | ||
Furniture and Fixtures [Member] | Minimum [Member] | |||
Property, Plant and Equipment, Useful Life | 5 years | ||
Furniture and Fixtures [Member] | Maximum [Member] | |||
Property, Plant and Equipment, Useful Life | 7 years | ||
Minimum [Member] | |||
Property, Plant and Equipment, Useful Life | 5 years | ||
Maximum [Member] | |||
Property, Plant and Equipment, Useful Life | 16 years | ||
In Process Research Development [Member] | Research and Development Expense [Member] | |||
Impairment of Intangible Assets, Finite-lived | $ 700,000 | ||
Reclassification from Current Deferred Tax Assets to a Reduction in Noncurrent Deferred Tax Liabilities [Member] | |||
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification | 2,300,000 | ||
Prior Period Reclassification Adjustment | 1,200,000 | ||
Other than Temporary Impairment Losses, Investments, Available-for-sale Securities | 0 | $ 0 | |
Allocated Share-based Compensation Expense | 2,200,000 | 1,600,000 | $ 1,300,000 |
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, Net of Tax | 2,200,000 | 2,800,000 | 1,000,000 |
Foreign Currency Transaction Gain (Loss), before Tax | $ 400,000 | $ 600,000 | $ 259,000 |
Concentration Risk, Percentage | 100.00% | 100.00% | 100.00% |
Inventory, Net | $ 14,938,000 | $ 12,407,000 | |
Inventory Adjustments | $ 900,000 | $ 900,000 | |
Number of Reportable Segments | 1 |
Note 2 - Allowance for Doubtful
Note 2 - Allowance for Doubtful Accounts (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Foreign Currency Spot Rate [Member] | |||
Provision for doubtful accounts | $ 38 | $ 238 | |
Balance, beginning of the year | 147 | $ 593 | 337 |
Provision for doubtful accounts | 38 | $ 238 | |
Amounts written off | (3) | $ (377) | |
Translation adjustments | (15) | (69) | $ 18 |
Balance, end of the year | $ 167 | $ 147 | $ 593 |
Note 3 - Investments (Details T
Note 3 - Investments (Details Textual) - USD ($) | Dec. 31, 2015 | Dec. 31, 2014 |
Corporate Debt Securities [Member] | ||
Available-for-sale Securities | $ 2,000,000 | |
Certificates of Deposit [Member] | ||
Available-for-sale Securities | 25,800,000 | $ 6,800,000 |
Available-for-sale Securities, Accumulated Gross Unrealized Gain (Loss), before Tax | $ 0 | $ 0 |
Note 4 - Fair Value of Financia
Note 4 - Fair Value of Financial Instruments (Details) - USD ($) | Dec. 31, 2015 | Dec. 31, 2014 |
Money Market Funds [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Cash equivalents: | ||
Money Market Funds [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Cash equivalents: | $ 61,385,000 | $ 69,552,000 |
Money Market Funds [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Cash equivalents: | ||
Money Market Funds [Member] | ||
Cash equivalents: | 61,385,000 | $ 69,552,000 |
Certificates of Deposit [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Cash equivalents: | ||
Investments | ||
Certificates of Deposit [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Cash equivalents: | 250,000 | $ 3,000,000 |
Investments | 25,750,000 | $ 6,750,000 |
Certificates of Deposit [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Cash equivalents: | ||
Investments | ||
Certificates of Deposit [Member] | ||
Cash equivalents: | 250,000 | $ 3,000,000 |
Investments | $ 25,750,000 | $ 6,750,000 |
Corporate Debt Securities [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Investments | ||
Corporate Debt Securities [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Investments | $ 2,001,000 | |
Corporate Debt Securities [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Investments | ||
Corporate Debt Securities [Member] | ||
Investments | $ 2,001,000 | |
Fair Value, Inputs, Level 1 [Member] | ||
Cash equivalents: | ||
Investments | ||
Fair Value, Inputs, Level 2 [Member] | ||
Cash equivalents: | $ 61,635,000 | $ 72,552,000 |
Investments | $ 27,751,000 | |
Fair Value, Inputs, Level 3 [Member] | ||
Cash equivalents: | ||
Investments | ||
Cash equivalents: | $ 61,635,000 | $ 72,552,000 |
Investments | $ 27,751,000 | $ 6,750,000 |
Note 5 - Earnings Per Share (45
Note 5 - Earnings Per Share ("EPS") (Details Textual) - shares | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Employee Stock Option [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 197,691 | 129,540 | 21,326 |
Restricted Stock [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 62,825 | 30,700 | 52,339 |
Note 5 - Basic and Diluted Earn
Note 5 - Basic and Diluted Earnings Per Share (Details) - shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Shares used in the calculation of basic earnings per share (in shares) | 14,934 | 14,678 | 14,087 |
Effect of dilutive securities: | |||
Stock options, SARs, and RSAs (in shares) | 387 | 591 | 739 |
Diluted common shares outstanding (in shares) | 15,321 | 15,269 | 14,826 |
Note 6 - Inventories (Details)
Note 6 - Inventories (Details) - USD ($) | Dec. 31, 2015 | Dec. 31, 2014 |
Raw materials | $ 5,780,000 | $ 6,162,000 |
Work-in-process | 5,656,000 | 3,041,000 |
Finished goods | 3,502,000 | 3,204,000 |
Total | $ 14,938,000 | $ 12,407,000 |
Note 7 - Property and Equipme48
Note 7 - Property and Equipment (Details Textual) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Depreciation | $ 2.7 | $ 2.6 | $ 2.7 |
Note 7 - Property and Equipme49
Note 7 - Property and Equipment at Cost (Details) - USD ($) | Dec. 31, 2015 | Dec. 31, 2014 |
Equipment and software | $ 24,512,000 | $ 24,176,000 |
Furniture and fixtures | 1,240,000 | 1,296,000 |
Leasehold improvements | 27,622,000 | 27,589,000 |
Construction in Progress, Gross | 11,274,000 | 559,000 |
Subtotal | 64,648,000 | 53,620,000 |
Less accumulated depreciation | (24,540,000) | (21,951,000) |
Total | $ 40,108,000 | $ 31,669,000 |
Note 8 - Acquired Intangible 50
Note 8 - Acquired Intangible Assets, Net (Details Textual) - USD ($) | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Jan. 31, 2015 | |
In Process Research Development [Member] | Research and Development Expense [Member] | ||||
Impairment of Intangible Assets, Finite-lived | $ 700,000 | |||
Developed Technology Rights [Member] | Reclassified from in Process Research and Development [Member] | ||||
Finite-Lived Intangible Assets, Gross | $ 400,000 | |||
Finite-Lived Intangible Assets, Amortization Expense, Year Two | 900,000 | |||
Finite-Lived Intangible Assets, Amortization Expense, Year Five | 900,000 | |||
Finite-Lived Intangible Assets, Amortization Expense, Year Three | 900,000 | |||
Amortization of Intangible Assets | 1,100,000 | $ 2,100,000 | $ 2,100,000 | |
Finite-Lived Intangible Assets, Amortization Expense, Next Twelve Months | 1,000,000 | |||
Finite-Lived Intangible Assets, Amortization Expense, Year Four | 900,000 | |||
Finite-Lived Intangible Assets, Amortization Expense, after Year Five | $ 3,800,000 |
Note 8 - Intangible Assets (Det
Note 8 - Intangible Assets (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Developed Technology Rights [Member] | ||
Gross Value | $ 16,700,000 | |
Current Period Completed Projects | 400,000 | |
Accumulated Currency Translation Adjustment | 3,215,000 | |
Accumulated Currency Translation Adjustment | (5,926,000) | |
Net Book Value | 7,959,000 | $ 9,410,000 |
Useful Life | 15 years | |
In Process Research and Development [Member] | ||
Gross Value | 5,503,000 | |
Current Period Completed Projects | (400,000) | |
Accumulated Currency Translation Adjustment | 1,307,000 | |
Net Book Value | 3,099,000 | $ 4,653,000 |
Abandonments | (697,000) | |
Distribution Rights [Member] | ||
Gross Value | 4,700,000 | |
Accumulated Currency Translation Adjustment | 415,000 | |
Accumulated Currency Translation Adjustment | (4,285,000) | |
Useful Life | 5 years | |
Patents [Member] | ||
Gross Value | 1,000,000 | |
Accumulated Currency Translation Adjustment | 194,000 | |
Accumulated Currency Translation Adjustment | (333,000) | |
Net Book Value | 473,000 | $ 581,000 |
Useful Life | 16 years | |
Elevess Trade Name [Member] | ||
Gross Value | 1,000,000 | |
Accumulated Currency Translation Adjustment | (875,000) | |
Net Book Value | 125,000 | $ 251,000 |
Useful Life | 9 years | |
Gross Value | 28,903,000 | |
Accumulated Currency Translation Adjustment | 5,131,000 | |
Accumulated Currency Translation Adjustment | (11,419,000) | |
Net Book Value | 11,656,000 | $ 14,895,000 |
Abandonments | $ (697,000) |
Note 9 - Goodwill (Details Text
Note 9 - Goodwill (Details Textual) - USD ($) | Dec. 31, 2015 | Nov. 30, 2015 |
Goodwill, Impaired, Accumulated Impairment Loss | $ 0 | $ 0 |
Note 9 - Changes in the Carryin
Note 9 - Changes in the Carrying Value of Goodwill (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Balance | $ 8,339,000 | $ 9,444,000 |
Effect of foreign currency adjustments | (857,000) | (1,105,000) |
Balance | $ 7,482,000 | $ 8,339,000 |
Note 10 - Accrued Expenses (Det
Note 10 - Accrued Expenses (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Compensation and related expenses | $ 3,082 | $ 2,792 |
Facility construction costs | 415 | |
Research grants | 381 | $ 539 |
Clinical trial costs | 252 | 508 |
Professional fees | 210 | 554 |
Other | 438 | 379 |
Total | $ 4,778 | $ 4,772 |
Note 11 - Deferred Revenue (Det
Note 11 - Deferred Revenue (Details Textual) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||||||
Dec. 31, 2011 | Dec. 31, 2004 | Feb. 28, 2004 | Dec. 31, 2003 | Dec. 31, 2015 | Dec. 31, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | |
Ortho Biotech Products LP [Member] | JNJ Agreement [Member] | ||||||||||
Proceeds from Initial Payment on Licensing and Supply Agreement | $ 2 | |||||||||
Proceeds from Milestone Payments | $ 5 | $ 20 | ||||||||
Miltek MONOVISC Agreement [Member] | ||||||||||
Contract Term Years | 15 years | |||||||||
Deferred Revenue | $ 2.5 | |||||||||
Deferred Revenue, Revenue Recognized | $ 2.2 | |||||||||
Revenue Recognition, Milestone Method, Revenue Recognized | $ 5 | $ 5 | $ 5 | $ 17.5 | $ 5 | $ 29.7 | ||||
Revenue Recognition, Milestone Method, End-user Sales | $ 50 |
Note 12 - Commitments and Con56
Note 12 - Commitments and Contingencies (Details Textual) | Oct. 09, 2015ft² | Dec. 30, 2009a | Dec. 31, 2015USD ($)a | Dec. 31, 2015USD ($)a | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) |
Bedford Massachusetts [Member] | First Three Renewal Options [Member] | ||||||
Lessee Leasing Arrangements, Operating Leases, Renewal Term | 5 years | |||||
Bedford Massachusetts [Member] | Final Renewal Option [Member] | ||||||
Lessee Leasing Arrangements, Operating Leases, Renewal Term | 6 years | |||||
Bedford Massachusetts [Member] | ||||||
Area of Real Estate Property | a | 134,000 | 134,000 | ||||
Option to Extend Operating Lease Term, Number of Periods | 4 | |||||
Abano Terme, Italy [Member] | ||||||
Area of Real Estate Property | a | 28,000 | |||||
Lessee Leasing Arrangements, Operating Leases, Term of Contract | 6 years | 6 years | ||||
Operating Lease, Notice Required to Terminate | 180 days | |||||
European Headquarters Facility [Member] | ||||||
Area of Real Estate Property | ft² | 33,000 | |||||
Lessee Leasing Arrangements, Term of Contract | 15 years | |||||
Lessee Leasing Arrangements, Number of Renewal Terms | 3 | |||||
Lessee Leasing Arrangements, Renewal Term | 6 years | |||||
Lessee Leasing Arrangements Ability to Withdraw With Penalty | 6 years | |||||
Lessee Leasing Arrangements Ability to Withdrawn Without Penalty | 9 years | |||||
Lessee Leasing Arrangements Initial Yearly Rent | $ 400,000 | |||||
Construction in Progress, Gross | 200,000 | $ 200,000 | ||||
Build-to-suit Lease Agreement, Offsetting Facility Lease Obligation | 30,000 | 30,000 | ||||
Product Warranty Accrual | 0 | 0 | $ 0 | |||
Operating Leases, Rent Expense | $ 1,300,000 | 1,400,000 | $ 1,400,000 | |||
Lessee Leasing Arrangements, Operating Leases, Term of Contract | 10 years 182 days | |||||
Construction in Progress, Gross | $ 11,274,000 | $ 11,274,000 | $ 559,000 |
Note 12 - Future Lease Commitme
Note 12 - Future Lease Commitments (Details) $ in Thousands | Dec. 31, 2015USD ($) |
2,016 | $ 1,540 |
2,017 | 1,309 |
2,018 | 1,309 |
2,019 | 1,319 |
2020 and thereafter | 4,926 |
Total | $ 10,403 |
Note 13 - Equity Incentive Pl58
Note 13 - Equity Incentive Plan (Details Textual) - USD ($) | Jun. 18, 2013 | Jun. 07, 2011 | Jun. 05, 2009 | Jun. 30, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Jun. 04, 2003 |
Two Thousand Three Plan [Member] | Minimum [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 1 year | |||||||
Two Thousand Three Plan [Member] | Maximum [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 4 years | |||||||
Two Thousand Three Plan [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 1,500,000 | |||||||
Amended Two Thousand Three Plan [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 3,800,000 | 2,350,000 | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Additional Shares Authorized | 650,000 | 850,000 | ||||||
Number of Shares Available for Grant Reduced By Each Share Award Issued Other Than Options or SARs | 1.5 | |||||||
Second Amended Two Thousand Three Plan [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 3,150,000 | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Additional Shares Authorized | 800,000 | |||||||
Number of Shares Available for Grant Reduced By Each Share Award Issued Other Than Options or SARs | 1.9 | |||||||
Employee Stock Option [Member] | ||||||||
Share-based Compensation Arrangement Evaluation of Expected Volatility Assumption to Historical Volatility Average Period | 4 years | |||||||
Stock Options, SARs and Restricted Stock Awards [Member] | ||||||||
Allocated Share-based Compensation Expense | $ 2,200,000 | $ 1,600,000 | $ 1,300,000 | |||||
Stock Options and SARs [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number | 762,260 | |||||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized | $ 2,600,000 | |||||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 2 years 182 days | |||||||
Incentive Stock Options [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Number | 140,023 | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Exercise Price | $ 9.52 | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Remaining Contractual Term | 5 years 219 days | |||||||
Non-qualified Stock Options [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Number | 225,620 | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Exercise Price | $ 12.27 | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Remaining Contractual Term | 6 years 109 days | |||||||
Stock Appreciation Rights (SARs) [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Number | 56,220 | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Exercise Price | $ 8.30 | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Remaining Contractual Term | 2 years 328 days | |||||||
Restricted Stock and Restricted Stock Units [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Fair Value | $ 1,200,000 | 800,000 | ||||||
Share-based Compensation Arrangement by Share-based Payment Award Options and Stock Appreciation Rights Vested in Period Fair Value | $ 1,100,000 | 1,100,000 | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 1,251,635 | |||||||
Allocated Share-based Compensation Expense | $ 2,200,000 | 1,600,000 | 1,300,000 | |||||
Share-based Compensation Arrangement by Share-based Payment Award Options and Stock Appreciation Rights Vested and Expected to Vest Outstanding Number | 734,301 | |||||||
Share-based Compensation Arrangement by Share-based Payment Award Options and Stock Appreciation Rights Vested and Expected to Vest Outstanding Weighted Average Exercise Price | $ 17.88 | |||||||
Share-based Compensation Arrangement by Share-based Payment Award Options and Stock Ppreciation Rights Vested and Expected to Vest Outstanding Aggregate Intrinsic Value | $ 15,000,000 | |||||||
Share-based Compensation Arrangement by Share-based Payment Award Options and Stock Appreciation Rights Vested and Expected to Vest Weighted Average Remaining Contractual Term | 6 years 255 days | |||||||
Share-based Compensation Arrangement by Share-based Payment Award Options and Stock Appreciation Rights Vested Aggregate Intrinsic Value | $ 11,600,000 | 12,000,000 | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options and Stock Appreciation Rights, Outstanding, Intrinsic Value | 15,200,000 | 21,700,000 | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options and Stock Appreciation Rights, Exercises in Period, Total Intrinsic Value | 3,100,000 | 26,700,000 | ||||||
Stock Repurchased and Retired During Period, Shares | 133,774 | |||||||
Proceeds from Stock Options Exercised | $ 1,074,000 | $ 2,055,000 | $ 3,054,000 |
Note 13 - Assumptions Used to E
Note 13 - Assumptions Used to Estimate Fair Value of Stock Options and Stock Appreciation Rights Awards (Details) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Minimum [Member] | |||
Risk free interest rate | 1.15% | 1.16% | 0.61% |
Expected volatility | 53.15% | 53.28% | 53.60% |
Maximum [Member] | |||
Risk free interest rate | 1.46% | 1.39% | 1.02% |
Expected volatility | 54.65% | 57.05% | 57.60% |
Expected life (years) | 4 years 182 days | 4 years | 4 years |
Expected dividend yield | 0.00% | 0.00% | 0.00% |
Note 13 - Stock Options and SAR
Note 13 - Stock Options and SAR’s Activity (Details) | 12 Months Ended | |
Dec. 31, 2015$ / shares | Dec. 31, 2014$ / shares | |
Options and SAR's outstanding at beginning of year | 851,287 | 1,513,326 |
Options and SAR's outstanding at beginning of year, Weighted Average Exercise Price Per Share (in dollars per share) | $ 14.85 | $ 9.14 |
Options and SAR's Granted | 111,625 | 179,240 |
Options and SAR's Granted, Weighted Average Exercise Price Per Share (in dollars per share) | $ 39.25 | $ 35.62 |
Options and SAR's Cancelled | (85,349) | (53,325) |
Options and SAR's Cancelled, Weighted Average Exercise Price Per Share (in dollars per share) | $ 19.77 | $ 23.73 |
Options and SAR's Expired | (8,825) | (24,292) |
Options and SAR's Expired, Weighted Average Exercise Price Per Share (in dollars per share) | $ 20.03 | $ 9.87 |
Options and SAR's Exercised | (106,478) | (763,662) |
Options and SAR's Exercised, Weighted Average Exercise Price Per Share (in dollars per share) | $ 10.96 | $ 7.95 |
Options and SAR's outstanding at end of year | 762,260 | 851,287 |
Options and SAR's outstanding at end of year, Weighted Average Exercise Price Per Share (in dollars per share) | $ 18.75 | $ 14.85 |
Note 13 - Restricted Stock Acti
Note 13 - Restricted Stock Activity (Details) - Restricted Stock [Member] - $ / shares | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Nonvested at Beginning of year (in shares) | 109,614 | 79,591 |
Nonvested at Beginning of year (in dollars per share) | $ 23.91 | $ 11.93 |
Granted (in shares) | 81,080 | 60,098 |
Granted (in dollars per share) | $ 37.84 | $ 32.02 |
Cancelled (in shares) | (10,635) | (7,500) |
Cancelled (in dollars per share) | $ 32.02 | $ 25.46 |
Vested/Released (in shares) | (29,675) | (22,575) |
Vested/Released (in dollars per share) | $ 19.31 | $ 10.01 |
Nonvested at end of year (in shares) | 150,384 | 109,614 |
Nonvested at end of year (in dollars per share) | $ 34.29 | $ 23.91 |
Note 14 - Shareholder Rights 62
Note 14 - Shareholder Rights Plan (Details Textual) - $ / shares | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Apr. 04, 2008 | |
Shareholder Rights Plan Two Thousand Eight [Member] | Minimum [Member] | |||
Stock Holders Rights Plan Exercisability Threshold Percentage | 15.00% | ||
Stockholder Rights Plan Exercise Trigger Threshold Percentage Voting Stock Ownership Offer | 15.00% | ||
Percentage of Beneficial Ownership Interests | 50.00% | ||
Shareholder Rights Plan Two Thousand Eight [Member] | Series B Junior Participating Preferred Stock [Member] | |||
Preferred Stock, Par or Stated Value Per Share | $ 0.01 | ||
Preferred Stock, Capital Shares Reserved for Future Issuance | 175,000 | ||
Shareholder Rights Plan Two Thousand Eight [Member] | |||
Exercise Price per Share | $ 75 | ||
Stock Redemption Price per Share | 0.01 | ||
Preferred Stock, Par or Stated Value Per Share | $ 0.01 | $ 0.01 |
Note 15 - Employee Benefit Pl63
Note 15 - Employee Benefit Plan (Details Textual) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Defined Contribution Plan, Employer Matching Contribution, Percent of Employees' Gross Pay | 5.00% | ||
Defined Contribution Plan, Employer Discretionary Contribution Amount | $ 350 | $ 350 | $ 362 |
Note 16 - Revenue by Product 64
Note 16 - Revenue by Product Group, by Significant Customer and by Geographic Region; Geographic Information (Details Textual) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Sales Revenue, Services, Net | $ 5,303 | $ 30,121 | $ 3,307 |
Note 16 - Product Revenue by Pr
Note 16 - Product Revenue by Product Group (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Orthobiologics [Member] | |||
Product revenue | $ 73,247 | $ 61,957 | $ 55,956 |
Concentration Risk, Percentage | 84.00% | 82.00% | 78.00% |
Dermal [Member] | |||
Product revenue | $ 2,266 | $ 1,334 | $ 1,817 |
Concentration Risk, Percentage | 2.00% | 2.00% | 3.00% |
Surgical [Member] | |||
Product revenue | $ 5,812 | $ 5,855 | $ 5,446 |
Concentration Risk, Percentage | 7.00% | 8.00% | 8.00% |
Other [Member] | |||
Product revenue | $ 6,371 | $ 6,328 | $ 8,555 |
Concentration Risk, Percentage | 7.00% | 8.00% | 11.00% |
Product revenue | $ 87,696 | $ 75,474 | $ 71,774 |
Concentration Risk, Percentage | 100.00% | 100.00% | 100.00% |
Note 16 - Product Revenue by Si
Note 16 - Product Revenue by Significant Customers as a Percent of Product Revenues (Details) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Sales Revenue, Goods, Net [Member] | Customer Concentration Risk [Member] | DePuy Mitek Inc [Member] | |||
Concentration Risk, Percentage | 72.00% | 72.00% | 63.00% |
Sales Revenue, Goods, Net [Member] | Customer Concentration Risk [Member] | Boehringer [Member] | |||
Concentration Risk, Percentage | 5.00% | 4.00% | 5.00% |
Sales Revenue, Goods, Net [Member] | Customer Concentration Risk [Member] | Medtronic [Member] | |||
Concentration Risk, Percentage | 3.00% | 4.00% | 3.00% |
Sales Revenue, Goods, Net [Member] | Customer Concentration Risk [Member] | Nordic Pharma [Member] | |||
Concentration Risk, Percentage | 2.00% | 2.00% | 2.00% |
Sales Revenue, Goods, Net [Member] | Customer Concentration Risk [Member] | Pharmascience [Member] | |||
Concentration Risk, Percentage | 2.00% | 2.00% | 3.00% |
Sales Revenue, Goods, Net [Member] | Customer Concentration Risk [Member] | |||
Concentration Risk, Percentage | 84.00% | 84.00% | 76.00% |
Concentration Risk, Percentage | 100.00% | 100.00% | 100.00% |
Note 16 - Product Revenue by Ge
Note 16 - Product Revenue by Geographic Location (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
UNITED STATES | |||
Total revenue | $ 76,621 | $ 92,259 | $ 58,490 |
Percentage of Revenue | 82.00% | 87.00% | 78.00% |
Europe [Member] | |||
Total revenue | $ 8,756 | $ 6,215 | $ 7,412 |
Percentage of Revenue | 9.00% | 6.00% | 10.00% |
Other Location [Member] | |||
Total revenue | $ 7,622 | $ 7,121 | $ 9,179 |
Percentage of Revenue | 9.00% | 7.00% | 12.00% |
Total revenue | $ 92,999 | $ 105,595 | $ 75,081 |
Percentage of Revenue | 100.00% | 100.00% | 100.00% |
Note 16 - Net Tangible Long-liv
Note 16 - Net Tangible Long-lived Assets by Principal Geographic Areas (Details) - USD ($) | Dec. 31, 2015 | Dec. 31, 2014 |
UNITED STATES | ||
Net tangible long-lived assets | $ 39,732,000 | $ 31,059,000 |
ITALY | ||
Net tangible long-lived assets | 376,000 | 610,000 |
Net tangible long-lived assets | $ 40,108,000 | $ 31,669,000 |
Note 17 - Income Taxes (Details
Note 17 - Income Taxes (Details Textual) - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
State and Local Jurisdiction [Member] | Earliest Tax Year [Member] | |||
Open Tax Year | 2,012 | ||
State and Local Jurisdiction [Member] | Latest Tax Year [Member] | |||
Open Tax Year | 2,015 | ||
Domestic Tax Authority [Member] | Earliest Tax Year [Member] | Internal Revenue Service (IRS) [Member] | |||
Open Tax Year | 2,012 | ||
Domestic Tax Authority [Member] | Latest Tax Year [Member] | Internal Revenue Service (IRS) [Member] | |||
Open Tax Year | 2,015 | ||
Foreign Tax Authority [Member] | Earliest Tax Year [Member] | Ministry of Economic Affairs and Finance, Italy [Member] | |||
Open Tax Year | 2,011 | ||
Foreign Tax Authority [Member] | Latest Tax Year [Member] | Ministry of Economic Affairs and Finance, Italy [Member] | |||
Open Tax Year | 2,015 | ||
Internal Revenue Service (IRS) [Member] | Minimum [Member] | |||
Adjustments to Additional Paid in Capital, Income Tax Benefit from Share-based Compensation | $ 900,000 | $ 9,600,000 | |
Internal Revenue Service (IRS) [Member] | Maximum [Member] | |||
Adjustments to Additional Paid in Capital, Income Tax Benefit from Share-based Compensation | $ 900,000 | ||
Unrecognized Tax Benefits, Period Increase (Decrease) | 0 | 0 | |
Operating Loss Carryforwards | 6,300,000 | ||
Allocated Share-based Compensation Expense | 2,200,000 | 1,600,000 | 1,300,000 |
Employee Service Share-based Compensation, Tax Benefit from Compensation Expense | 1,100,000 | 3,100,000 | 2,000,000 |
Adjustments to Additional Paid in Capital, Income Tax Benefit from Share-based Compensation | $ 847,000 | $ 9,626,000 | $ 857,000 |
Note 17 - Components of Income
Note 17 - Components of Income Before Taxes and Provision for (Benefit from) Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Domestic | $ 48,608 | $ 63,232 | $ 33,061 |
Foreign | (354) | (1,727) | (581) |
Income before income taxes | 48,254 | 61,505 | 32,480 |
Federal | 14,572 | 18,301 | 8,024 |
State | 3,635 | 3,895 | 1,581 |
Foreign | 249 | 192 | 94 |
18,456 | 22,388 | 9,699 | |
Federal | (370) | 1,153 | 2,375 |
State | (33) | 122 | 115 |
Foreign | (557) | (477) | (284) |
(960) | 798 | 2,206 | |
Total provision | $ 17,496 | $ 23,186 | $ 11,905 |
Note 17 - Significant Component
Note 17 - Significant Components of Company's Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Net operating loss carry forward, foreign | $ 1,567 | $ 2,292 |
Stock-based compensation expense | 1,043 | 755 |
Foreign currency exchange | 762 | 353 |
Accrued expenses and other | 510 | 527 |
Inventory reserve | $ 547 | 334 |
Tax credit carry forward | 46 | |
Deferred tax assets | $ 4,429 | 4,307 |
Acquisition-related Intangibles | (3,738) | (4,827) |
Depreciation | (7,466) | (7,221) |
Deferred tax liabilities | (11,204) | (12,048) |
Net deferred tax liabilities | $ (6,775) | $ (7,741) |
Note 17 - Reconciliation Betwee
Note 17 - Reconciliation Between U.S. Federal Statutory Rate and Effective Rate (Details) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Statutory federal income tax rate | 35.00% | 35.00% | 35.00% |
State tax expense, net of federal benefit | 4.80% | 4.90% | 4.80% |
Permanent items, including nondeductible expenses | (0.30%) | 0.10% | (0.20%) |
State investment tax credit | 0.00% | (0.10%) | (0.10%) |
Federal, state and foreign research and development credits | (0.40%) | (0.70%) | (0.50%) |
Foreign rate differential | 0.10% | 0.20% | 0.10% |
Domestic production deduction | (2.90%) | (1.70%) | (2.40%) |
Effective income tax rate | 36.30% | 37.70% | 36.70% |
Note 17 - Reconciliation of Beg
Note 17 - Reconciliation of Beginning and Ending Amount of Unrecognized Tax Benefits (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2013USD ($) | |
Unrecognized tax benefit, beginning of year | $ 56 |
Tax positions related to current year | |
Tax positions related to prior years | |
Statute expirations | $ (56) |
Unrecognized tax benefit, end of year |
Note 18 - Quarterly Financial74
Note 18 - Quarterly Financial Data (Unaudited) (Details) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | |
Product revenue | $ 25,607 | $ 23,676 | $ 22,898 | $ 15,515 | $ 17,880 | $ 21,975 | $ 21,267 | $ 14,352 |
Total revenue | 30,894 | 23,681 | 22,904 | 15,520 | 23,255 | 22,055 | 26,275 | 34,010 |
Cost of product revenue | 6,290 | 5,176 | 5,274 | 4,313 | 5,511 | 5,725 | 5,333 | 4,361 |
Gross profit on product revenue | 19,317 | 18,500 | 17,624 | 11,202 | 12,369 | 16,250 | 15,934 | 9,991 |
Net income | $ 11,042 | $ 8,380 | $ 7,820 | $ 3,516 | $ 7,816 | $ 6,171 | $ 9,302 | $ 15,030 |
Basic net income per share (in dollars per share) | $ 0.74 | $ 0.56 | $ 0.52 | $ 0.24 | $ 0.53 | $ 0.42 | $ 0.63 | $ 1.04 |
Basic common shares outstanding (in shares) | 14,965 | 14,967 | 14,961 | 14,905 | 14,801 | 14,759 | 14,688 | 14,461 |
Diluted net income per share (in dollars per share) | $ 0.72 | $ 0.55 | $ 0.51 | $ 0.23 | $ 0.51 | $ 0.40 | $ 0.60 | $ 0.97 |
Diluted common shares outstanding (in shares) | 15,353 | 15,316 | 15,336 | 15,330 | 15,278 | 15,435 | 15,493 | 15,499 |
Note 19 - Subsequent Event (Det
Note 19 - Subsequent Event (Details Textual) - Subsequent Event [Member] - ASR Agreement [Member] - USD ($) $ in Millions | Feb. 29, 2016 | Feb. 26, 2016 |
Stock Repurchased During Period, Value | $ 25 | |
Payments for Repurchase of Common Stock | $ 25 | |
Stock Repurchased During Period, Shares | 377,155 |