Document And Entity Information
Document And Entity Information - shares | 9 Months Ended | |
Sep. 30, 2018 | Oct. 18, 2018 | |
Document Information [Line Items] | ||
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 | Large Accelerated Filer | |
Entity Current Reporting Status | Yes | |
Entity Emerging Growth Company | false | |
Entity Small Business | false | |
Entity Common Stock, Shares Outstanding (in shares) | 14,211,457 | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2018 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Current Period Unaudited) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Current assets: | ||
Cash and cash equivalents | $ 81,825 | $ 133,256 |
Investments | 67,186 | 24,000 |
Accounts receivable, net of reserves of $1,771 and $1,914 at September 30, 2018 and December 31, 2017, respectively | 20,771 | 23,825 |
Inventories, net | 23,828 | 22,035 |
Prepaid expenses and other current assets | 1,981 | 3,211 |
Total current assets | 195,591 | 206,327 |
Property and equipment, net | 55,041 | 56,183 |
Other long-term assets | 1,109 | 1,254 |
Intangible assets, net | 9,564 | 10,635 |
Goodwill | 7,959 | 8,218 |
Total assets | 269,264 | 282,617 |
Current liabilities: | ||
Accounts payable | 2,462 | 6,747 |
Accrued expenses and other current liabilities | 6,843 | 6,326 |
Total current liabilities | 9,305 | 13,073 |
Other long-term liabilities | 574 | 660 |
Deferred tax liability | 4,120 | 5,393 |
Commitments and contingencies (Note 12) | ||
Stockholders’ equity: | ||
Preferred stock, $.01 par value; 1,250 shares authorized, no shares issued and outstanding at September 30, 2018 and December 31, 2017, respectively | 0 | 0 |
Common stock, $.01 par value; 90,000 and 60,000 shares authorized, 14,211 and 14,688 shares issued and outstanding at September 30, 2018 and December 31, 2017, respectively | 142 | 147 |
Additional paid-in-capital | 49,836 | 68,617 |
Accumulated other comprehensive loss | (5,228) | (4,784) |
Retained earnings | 210,515 | 199,511 |
Total stockholders’ equity | 255,265 | 263,491 |
Total liabilities and stockholders’ equity | $ 269,264 | $ 282,617 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) - USD ($) shares in Thousands, $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Accounts receivable, reserves | $ 1,771 | $ 1,914 |
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (in shares) | 1,250 | 1,250 |
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) | 90,000 | 60,000 |
Common stock, shares issued (in shares) | 14,211 | 14,688 |
Common stock, shares outstanding (in shares) | 14,211 | 14,688 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations and Comprehensive Income (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Revenue | $ 26,787 | $ 27,184 | $ 78,599 | $ 84,032 |
Operating expenses: | ||||
Cost of product revenue | 8,282 | 6,250 | 24,279 | 18,648 |
Research & development | 4,232 | 5,842 | 14,126 | 14,521 |
Selling, general & administrative | 5,700 | 4,823 | 28,207 | 14,862 |
Total operating expenses | 18,214 | 16,915 | 66,612 | 48,031 |
Income from operations | 8,573 | 10,269 | 11,987 | 36,001 |
Interest and other income, net | 522 | 261 | 907 | 335 |
Income before income taxes | 9,095 | 10,530 | 12,894 | 36,336 |
Provision for income taxes | 1,496 | 3,643 | 1,890 | 12,587 |
Net income | $ 7,599 | $ 6,887 | $ 11,004 | $ 23,749 |
Basic net income per share: | ||||
Net income (in dollars per share) | $ 0.53 | $ 0.47 | $ 0.76 | $ 1.63 |
Basic weighted average common shares outstanding (in shares) | 14,237 | 14,579 | 14,524 | 14,572 |
Diluted net income per share: | ||||
Net income (in dollars per share) | $ 0.53 | $ 0.46 | $ 0.74 | $ 1.58 |
Diluted weighted average common shares outstanding (in shares) | 14,377 | 15,115 | 14,820 | 15,065 |
Net income | $ 7,599 | $ 6,887 | $ 11,004 | $ 23,749 |
Foreign currency translation adjustment | (113) | 690 | (444) | 2,270 |
Comprehensive income | 7,486 | 7,577 | 10,560 | 26,019 |
Product [Member] | ||||
Revenue | 26,781 | 27,178 | 78,581 | 78,899 |
Service [Member] | ||||
Revenue | $ 6 | $ 6 | $ 18 | $ 5,133 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Cash flows from operating activities: | ||
Net income | $ 11,004 | $ 23,749 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 4,433 | 3,224 |
Loss on disposal of fixed assets | 172 | |
Stock-based compensation expense | 10,064 | 3,940 |
Deferred income taxes | (1,205) | 943 |
Provision for doubtful accounts | (87) | (1) |
Provision for inventory | 4,073 | 609 |
Changes in operating assets and liabilities: | ||
Accounts receivable | 3,136 | 4,388 |
Inventories | (5,891) | (4,668) |
Prepaid expenses, other current and long-term assets | 1,304 | (922) |
Accounts payable | (2,449) | 2,030 |
Accrued expenses, other current and long-term liabilities | 509 | (106) |
Income taxes | (158) | 645 |
Net cash provided by operating activities | 24,905 | 33,831 |
Cash flows from investing activities: | ||
Proceeds from maturity of investments | 34,500 | 31,250 |
Purchase of investments | (77,683) | (36,500) |
Purchase of property and equipment | (4,493) | (6,506) |
Net cash (used in) investing activities | (47,676) | (11,756) |
Cash flows from financing activities: | ||
Repurchases of common stock | (30,000) | |
Cash paid for tax withheld on vested restricted stock awards | (1,735) | |
Proceeds from exercise of equity awards | 2,886 | 310 |
Net cash (used in) provided by financing activities | (28,849) | 310 |
Exchange rate impact on cash | 189 | 314 |
(Decrease) Increase in cash and cash equivalents | (51,431) | 22,699 |
Cash and cash equivalents at beginning of period | 133,256 | 104,261 |
Cash and cash equivalents at end of period | 81,825 | 126,960 |
Supplemental disclosure of cash flow information: | ||
Purchases of property and equipment included in accounts payable and accrued expenses | $ 197 | $ 1,208 |
Note 1 - Nature of Business
Note 1 - Nature of Business | 9 Months Ended |
Sep. 30, 2018 | |
Notes to Financial Statements | |
Nature of Operations [Text Block] | 1. Nature of Business Anika Therapeutics, Inc. (the “Company”) is a global, integrated orthopedic and regenerative medicines company committed to improving the lives of patients with degenerative orthopedic diseases and traumatic conditions with clinically meaningful therapies along the continuum of care, from palliative pain management to regenerative tissue repair. The Company has over two The Company is subject to risks common to companies in the biotechnology and medical device industries including, but not |
Note 2 - Basis of Presentation
Note 2 - Basis of Presentation | 9 Months Ended |
Sep. 30, 2018 | |
Notes to Financial Statements | |
Business Description and Basis of Presentation [Text Block] | 2. Basis of Presentation The accompanying unaudited condensed consolidated financial statements and related notes have been prepared by the Company pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”) and in accordance with accounting principles generally accepted in the United States (“US GAAP”). The financial statements include the accounts of Anika Therapeutics, Inc. and its subsidiaries. Inter-company transactions and balances have been eliminated. Certain information and footnote disclosures normally included in annual financial statements prepared in accordance with US GAAP have been condensed or omitted pursuant to SEC rules and regulations relating to interim financial statements. The December 31, 2017 September 30, 2018, three nine September 30, 2018 2017, nine September 30, 2018 2017. The accompanying unaudited condensed consolidated financial statements and related notes should be read in conjunction with the Company’s annual financial statements filed with its Annual Report on Form 10 December 31, 2017. three nine September 30, 2018 not December 31, 2018. At the Company’s annual stockholders’ meeting on May 31, 2018, 60 90 90 June 6, 2018. not Recent Accounting Pronouncements In February 2016, No. 2016 02, Leases 842 2016 02 December 15, 2018. may 2016 02 In August 2018, No. 2018 15, Intangibles – Goodwill and Other – Internal-Use Software 350 40 No. 2015 05, Customers Accounting for Fees in a Cloud Computing Agreement, 2018 15 350 40 2018 15 December 15, 2019. 2018 15 |
Note 3 - Revenue
Note 3 - Revenue | 9 Months Ended |
Sep. 30, 2018 | |
Notes to Financial Statements | |
Revenue from Contract with Customer [Text Block] | 3. Revenue The Company adopted the guidance in the FASB’s Accounting Standards Codification (“ASC”) Revenue from Contracts with Customers 606 January 1, 2018. 606 not not no 605, Revenue Recognition Pursuant to ASC 606, five Product Revenues The Company sells its products principally to a number of distributors (i.e., its customers) under legally-enforceable, executed contracts. The Company’s distributors subsequently resell the products to sub-distributors and health care providers, among others. The Company recognizes revenue from product sales when the distributor obtains control of the Company’s product, which typically occurs upon shipment to the distributor, in return for agreed-upon, fixed-price consideration. Performance obligations are generally settled quickly after purchase order acceptance; therefore, the value of unsatisfied performance obligations at the end of any reporting period is generally immaterial. The Company’s payment terms are consistent with prevailing practice in the respective markets in which the Company does business. Distributors make payments based on fixed-price contract terms, which are not one not not To identify variable consideration and determine the transaction price, the Company has reviewed its standard contractual terms and conditions and its customary business practices. Volume based discounts with tiered pricing are generally prospective in nature. These prospective discounts together with any free-of-charge sample units offered are evaluated as potential material rights. If the discounts or free-of-charge sample units are considered significant in the context of the contract, revenue is deferred. The Company receives payments from its customers based on billing schedules established in each contract. Up-front payments and fees are recorded as deferred revenue upon receipt or when due, and may September 30, 2018, $52 Generally, distributor contracts contain Free on Board (FOB) or Ex-Works (EXW) shipping point terms where the customer pays the shipping company directly for all shipping and handling costs. In those contracts in which the Company pays for the shipping and handling, the associated costs are generally recorded along with the product sale at the time of shipment in cost of product revenue when control over the products has transferred to the customer. The Company does not not not not one 340 40 25 4. Included as a component of product revenue is sales-based royalty revenue, which represents the utilization of the Company’s intellectual property licensed by its commercial partners. The Company does not not License, Milestone and Contract Revenues The Company has agreements with DePuy Synthes Mitek Sports Medicine, a division of DePuy Orthopaedics, Inc. (“Mitek”) that include the grant of certain licenses, performance of development services, and supply of product. Revenues from the agreements with Mitek represent 73% three nine September 30, 2018. may 606 not The agreements with Mitek include variable consideration such as contingent development and regulatory milestones, sales-based milestones, and royalties. The Company completed the performance obligations related to granted licenses and development services under these agreements in prior years. Agreements that include a promise for future supply of product at the customer’s discretion are generally considered as options. The Company assesses if these options provide a material right to the licensee and if so, they are accounted for as separate performance obligations. Variable consideration is included in the transaction price only to the extent a significant reversal in the amount of cumulative revenue recognized is not There was no The following tables provide the disaggregated revenue by major product group and primary geographical market. Product revenue by product group was as follows: Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 Orthobiologics $ 24,097 $ 23,990 $ 69,778 $ 68,686 Surgical 1,191 1,765 3,700 4,395 Dermal 80 358 163 1,235 Other 1,413 1,065 4,940 4,583 Product Revenue $ 26,781 $ 27,178 $ 78,581 $ 78,899 Total revenue by geographic location was as follows: Three Months Ended September 30, 2018 2017 Total Revenue Percentage of Revenue Total Revenue Percentage of Revenue Geographic Location: United States $ 21,695 81 % $ 22,227 82 % Europe 3,132 12 % 2,832 10 % Other 1,960 7 % 2,125 8 % Total Revenue $ 26,787 100 % $ 27,184 100 % Nine Months Ended September 30, 2018 2017 Total Revenue Percentage of Revenue Total Revenue Percentage of Revenue Geographic Location: United States $ 63,377 81 % $ 68,624 82 % Europe 9,021 11 % 9,743 11 % Other 6,201 8 % 5,665 7 % Total Revenue $ 78,599 100 % $ 84,032 100 % On May 2, 2018, not no three March 31, 2018 $1.1 $0.9 three September 30, 2018 |
Note 4 - Investments
Note 4 - Investments | 9 Months Ended |
Sep. 30, 2018 | |
Notes to Financial Statements | |
Cash and Cash Equivalents Disclosure [Text Block] | 4. Investments All of the Company’s investments 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 investments, including U.S. treasury bills and bank certificates of deposit, totaling $67.2 $24.0 September 30, 2018 December 31, 2017, $0 September 30, 2018 December 31, 2017, |
Note 5 - Fair Value Measurement
Note 5 - Fair Value Measurements | 9 Months Ended |
Sep. 30, 2018 | |
Notes to Financial Statements | |
Fair Value Disclosures [Text Block] | 5. Fair Value Measurements The Company’s investments are all classified within Levels 1 2 1 2 third not The fair value hierarchy of the Company's cash equivalents and investments at fair value was as follows: Fair Value Measurements at Reporting Date Using September 30, 2018 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Cash equivalents: Money market funds $ 7,083 $ 7,083 $ - $ - Investments: Bank certificates of deposit $ 3,500 $ - $ 3,500 $ - U.S. treasury bills 63,686 63,686 - - Total investments $ 67,186 $ 63,686 $ 3,500 $ - Fair Value Measurements at Reporting Date Using December 31, 2017 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Cash equivalents: Money market funds $ 5,893 $ 5,893 $ - $ - Bank certificates of deposit 500 - 500 - Total cash equivalents $ 6,393 $ 5,893 $ 500 $ - Investments: Bank certificates of deposit $ 24,000 $ - $ 24,000 $ - |
Note 6 - Equity Incentive Plan
Note 6 - Equity Incentive Plan | 9 Months Ended |
Sep. 30, 2018 | |
Notes to Financial Statements | |
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] | 6. Equity Incentive Plan The Company estimates the fair value of stock options and stock appreciation rights (“SARs”) using the Black-Scholes valuation model. Fair value of restricted stock awards (“RSAs”) and restricted stock units (“RSUs”) are measured by the grant-date price of the Company’s shares. The fair value of each stock option award during the nine September 30, 2018 2017 Nine Months Ended September 30, 2018 2017 Risk free interest rate 2.15% - 2.82% 1.60% - 1.78% Expected volatility 37.12% - 45.61% 41.36% - 44.30% Expected life (years) 4.0 - 4.5 4.0 Expected dividend yield 0.00% 0.00% The Company recorded $1.2 $1.5 three September 30, 2018 2017, $10.1 $3.9 nine September 30, 2018 2017, March 9, 2018, one $6.2 three March 31, 2018. 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 as follows: Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 Cost of product revenue $ 39 $ 107 $ (205 ) $ 306 Research and development 239 177 690 340 Selling, general and administrative 899 1,190 9,579 3,294 Total stock-based compensation expense $ 1,177 $ 1,474 $ 10,064 $ 3,940 The decrease in stock-based compensation expense within the cost of product revenue line item during the three nine September 30, 2018 The following table sets forth share information for stock-based compensation awards granted and exercised during the three nine September 30, 2018 2017: Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 Grants: Stock options 18,500 60,609 228,300 470,744 RSAs - 14,506 64,578 14,506 RSUs 3,624 - 11,754 9,970 Exercises: Stock options - 3,329 284,548 12,766 SARs - - - 5,000 During the three nine September 30, 2018 2017, four three March 9, 2018, 32,541 $1.7 |
Note 7 - Earnings Per Share ("E
Note 7 - Earnings Per Share ("EPS") | 9 Months Ended |
Sep. 30, 2018 | |
Notes to Financial Statements | |
Earnings Per Share [Text Block] | 7. 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 The following table provides share information used in the calculation of the Company's basic and diluted earnings per share (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 Shares used in the calculation of basic earnings per share 14,237 14,579 14,524 14,572 Effect of dilutive securities: Stock options, SARs, RSUs and RSAs 140 536 296 493 Diluted shares used in the calculation of earnings per share 14,377 15,115 14,820 15,065 Stock options of 0.9 0.5 three September 30, 2018 2017, not 0.6 nine September 30, 2018 2017 not On May 24, 2018, $30.0 $30.0 0.4 May 24, 2018 $41.41 60% On July 16, 2018, $12.0 July 16, 2018. 0.4 July 19, 2016. not 0.8 $37.18 not |
Note 8 - Inventories
Note 8 - Inventories | 9 Months Ended |
Sep. 30, 2018 | |
Notes to Financial Statements | |
Inventory Disclosure [Text Block] | 8. Inventories Inventories consist of the following: September 30, December 31, Raw materials $ 13,241 $ 11,296 Work-in-process 5,948 6,062 Finished goods 4,639 4,677 Total $ 23,828 $ 22,035 As a result of the voluntary recall more fully described in Note 3, $0.8 $1.4 $1.2 nine September 30, 2018. |
Note 9 - Intangible Assets
Note 9 - Intangible Assets | 9 Months Ended |
Sep. 30, 2018 | |
Notes to Financial Statements | |
Goodwill and Intangible Assets Disclosure [Text Block] | 9. Intangible Assets Intangible assets as of September 30, 2018 December 31, 2017 September 30, 2018 December 31, 2017 Gross Accumulated Accumulated Net Book Accumulated Accumulated Net Book Useful Developed technology $ 17,100 $ (2,744 ) $ (8,443 ) $ 5,913 $ (2,550 ) $ (7,723 ) $ 6,827 15 In-process research & development 4,406 (1,122 ) - 3,284 (1,015 ) - 3,391 Indefinite Distributor relationships 4,700 (415 ) (4,285 ) - (415 ) (4,285 ) - 5 Patents 1,000 (164 ) (469 ) 367 (152 ) (431 ) 417 16 Elevess trade name 1,000 - (1,000 ) - - (1,000 ) - 9 Total $ 28,206 $ (4,445 ) $ (14,197 ) $ 9,564 $ (4,132 ) $ (13,439 ) $ 10,635 The aggregate amortization expense related to intangible assets was $0.2 three September 30, 2018 2017. $0.8 $0.7 nine September 30, 2018 2017, |
Note 10 - Goodwill
Note 10 - Goodwill | 9 Months Ended |
Sep. 30, 2018 | |
Notes to Financial Statements | |
Goodwill Disclosure [Text Block] | 10. Goodwill The Company completed its annual impairment review as of November 30, 2017 no September 30, 2018, no may not September 30, 2018 Balance at January 1, 2018 $ 8,218 Effect of foreign currency adjustments (259 ) Balance at September 30, 2018 $ 7,959 |
Note 11 - Accrued Expenses
Note 11 - Accrued Expenses | 9 Months Ended |
Sep. 30, 2018 | |
Notes to Financial Statements | |
Accounts Payable and Accrued Liabilities Disclosure [Text Block] | 11. Accrued Expenses Accrued expenses consist of the following: September 30, December 31, Compensation and related expenses $ 3,875 $ 2,893 Clinical trial costs 586 2,318 Accrued liabilities related to product recall 344 - Research grants 406 419 Professional fees 1,233 448 Deferred revenue 52 - Other 347 248 Total $ 6,843 $ 6,326 Included in Compensation and related expenses as of September 30, 2018 March 9, 2018. March 8, 2018 $0.3 one may February 28, 2019. $1.7 18 March 9, 2018, 6, Accrued liabilities related to product recall includes amounts due to customers for estimated product returns as a result of the voluntary recall more fully described in Note 3 $0.3 |
Note 12 - Commitments and Conti
Note 12 - Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2018 | |
Notes to Financial Statements | |
Commitments and Contingencies Disclosure [Text Block] | 12. Commitments and Contingencies In certain of its 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 not third no September 30, 2018 December 31, 2017, no The Company is also involved from time-to-time in various legal proceedings arising in the normal course of business. Although the outcomes of these legal proceedings are inherently difficult to predict, the Company does not |
Note 13 - Income Taxes
Note 13 - Income Taxes | 9 Months Ended |
Sep. 30, 2018 | |
Notes to Financial Statements | |
Income Tax Disclosure [Text Block] | 13. Income Taxes The provisions for income taxes were $1.5 $1.9 three nine September 30, 2018, 16.4% 14.7%, $3.6 $12.6 three nine September 30, 2017, 34.6% three nine September 30, 2018, 2017, 2017 35% 21% 2018. nine September 30, 2018 $1.6 12.1%. $0.1 three September 30, 2018. The Company files income tax returns in the United States on a federal basis, 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. In connection with the preparation of the financial statements, the Company assesses whether it was more likely than not not not” not September 30, 2018 December 31, 2017. In accordance with Staff Accounting Bulletin No. 118, no 2017 not 2017 |
Note 14 - Business Segment
Note 14 - Business Segment | 9 Months Ended |
Sep. 30, 2018 | |
Notes to Financial Statements | |
Segment Reporting Disclosure [Text Block] | 14. Business Segment The Company operates in a single segment engaged in the discovery, development, licensing, manufacturing, and sale of innovative medical therapies that improve the lives of patients with degenerative orthopedic diseases and traumatic conditions. The determination of a single segment is consistent with the financial information regularly reviewed by the Chief Executive Officer, who is the chief decision maker for the purposes of evaluating performance, allocating resources, setting incentive compensation targets and planning and forecasting future periods. For further information on product and geographic revenues, see Note 3. |
Note 3 - Revenue (Tables)
Note 3 - Revenue (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Notes Tables | |
Schedule of Segment Reporting Information, by Segment [Table Text Block] | Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 Orthobiologics $ 24,097 $ 23,990 $ 69,778 $ 68,686 Surgical 1,191 1,765 3,700 4,395 Dermal 80 358 163 1,235 Other 1,413 1,065 4,940 4,583 Product Revenue $ 26,781 $ 27,178 $ 78,581 $ 78,899 |
Schedule of Revenue and Operating Income by Geographical Areas [Table Text Block] | Three Months Ended September 30, 2018 2017 Total Revenue Percentage of Revenue Total Revenue Percentage of Revenue Geographic Location: United States $ 21,695 81 % $ 22,227 82 % Europe 3,132 12 % 2,832 10 % Other 1,960 7 % 2,125 8 % Total Revenue $ 26,787 100 % $ 27,184 100 % Nine Months Ended September 30, 2018 2017 Total Revenue Percentage of Revenue Total Revenue Percentage of Revenue Geographic Location: United States $ 63,377 81 % $ 68,624 82 % Europe 9,021 11 % 9,743 11 % Other 6,201 8 % 5,665 7 % Total Revenue $ 78,599 100 % $ 84,032 100 % |
Note 5 - Fair Value Measureme_2
Note 5 - Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Notes Tables | |
Fair Value, Assets Measured on Recurring Basis [Table Text Block] | Fair Value Measurements at Reporting Date Using September 30, 2018 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Cash equivalents: Money market funds $ 7,083 $ 7,083 $ - $ - Investments: Bank certificates of deposit $ 3,500 $ - $ 3,500 $ - U.S. treasury bills 63,686 63,686 - - Total investments $ 67,186 $ 63,686 $ 3,500 $ - Fair Value Measurements at Reporting Date Using December 31, 2017 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Cash equivalents: Money market funds $ 5,893 $ 5,893 $ - $ - Bank certificates of deposit 500 - 500 - Total cash equivalents $ 6,393 $ 5,893 $ 500 $ - Investments: Bank certificates of deposit $ 24,000 $ - $ 24,000 $ - |
Note 6 - Equity Incentive Plan
Note 6 - Equity Incentive Plan (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Notes Tables | |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block] | Nine Months Ended September 30, 2018 2017 Risk free interest rate 2.15% - 2.82% 1.60% - 1.78% Expected volatility 37.12% - 45.61% 41.36% - 44.30% Expected life (years) 4.0 - 4.5 4.0 Expected dividend yield 0.00% 0.00% |
Schedule of Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Table Text Block] | Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 Cost of product revenue $ 39 $ 107 $ (205 ) $ 306 Research and development 239 177 690 340 Selling, general and administrative 899 1,190 9,579 3,294 Total stock-based compensation expense $ 1,177 $ 1,474 $ 10,064 $ 3,940 |
Disclosure of Share-based Compensation Arrangements by Share-based Payment Award [Table Text Block] | Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 Grants: Stock options 18,500 60,609 228,300 470,744 RSAs - 14,506 64,578 14,506 RSUs 3,624 - 11,754 9,970 Exercises: Stock options - 3,329 284,548 12,766 SARs - - - 5,000 |
Note 7 - Earnings Per Share (_2
Note 7 - Earnings Per Share ("EPS") (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Notes Tables | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 Shares used in the calculation of basic earnings per share 14,237 14,579 14,524 14,572 Effect of dilutive securities: Stock options, SARs, RSUs and RSAs 140 536 296 493 Diluted shares used in the calculation of earnings per share 14,377 15,115 14,820 15,065 |
Note 8 - Inventories (Tables)
Note 8 - Inventories (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Notes Tables | |
Schedule of Inventory, Current [Table Text Block] | September 30, December 31, Raw materials $ 13,241 $ 11,296 Work-in-process 5,948 6,062 Finished goods 4,639 4,677 Total $ 23,828 $ 22,035 |
Note 9 - Intangible Assets (Tab
Note 9 - Intangible Assets (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Notes Tables | |
Schedule of Finite-Lived and Indefinite-Lived Intangible Assets by Major Class [Table Text Block] | September 30, 2018 December 31, 2017 Gross Accumulated Accumulated Net Book Accumulated Accumulated Net Book Useful Developed technology $ 17,100 $ (2,744 ) $ (8,443 ) $ 5,913 $ (2,550 ) $ (7,723 ) $ 6,827 15 In-process research & development 4,406 (1,122 ) - 3,284 (1,015 ) - 3,391 Indefinite Distributor relationships 4,700 (415 ) (4,285 ) - (415 ) (4,285 ) - 5 Patents 1,000 (164 ) (469 ) 367 (152 ) (431 ) 417 16 Elevess trade name 1,000 - (1,000 ) - - (1,000 ) - 9 Total $ 28,206 $ (4,445 ) $ (14,197 ) $ 9,564 $ (4,132 ) $ (13,439 ) $ 10,635 |
Note 10 - Goodwill (Tables)
Note 10 - Goodwill (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Notes Tables | |
Schedule of Goodwill [Table Text Block] | September 30, 2018 Balance at January 1, 2018 $ 8,218 Effect of foreign currency adjustments (259 ) Balance at September 30, 2018 $ 7,959 |
Note 11 - Accrued Expenses (Tab
Note 11 - Accrued Expenses (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Notes Tables | |
Schedule of Accrued Liabilities [Table Text Block] | September 30, December 31, Compensation and related expenses $ 3,875 $ 2,893 Clinical trial costs 586 2,318 Accrued liabilities related to product recall 344 - Research grants 406 419 Professional fees 1,233 448 Deferred revenue 52 - Other 347 248 Total $ 6,843 $ 6,326 |
Note 2 - Basis of Presentation
Note 2 - Basis of Presentation (Details Textual) - shares shares in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Common Stock, Shares Authorized | 90,000 | 60,000 |
Note 3 - Revenue (Details Textu
Note 3 - Revenue (Details Textual) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2018 | Mar. 31, 2018 | Sep. 30, 2018 | Dec. 31, 2017 | |
Contract with Customer, Liability, Total | $ 52 | $ 52 | ||
Inventory Recall Expense | $ 1,100 | $ 900 | ||
DePuy Mitek Inc [Member] | ||||
Revenues From Agreements as Percent of Total Revenue | 73.00% | 73.00% |
Note 3 - Revenue - Product Reve
Note 3 - Revenue - Product Revenue by Product Group (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Revenue | $ 26,787 | $ 27,184 | $ 78,599 | $ 84,032 |
Orthobiologics [Member] | ||||
Revenue | 24,097 | 23,990 | 69,778 | 68,686 |
Surgical [Member] | ||||
Revenue | 1,191 | 1,765 | 3,700 | 4,395 |
Dermal [Member] | ||||
Revenue | 80 | 358 | 163 | 1,235 |
Manufactured Product, Other [Member] | ||||
Revenue | 1,413 | 1,065 | 4,940 | 4,583 |
Product [Member] | ||||
Revenue | $ 26,781 | $ 27,178 | $ 78,581 | $ 78,899 |
Note 3 - Revenue - Total Revenu
Note 3 - Revenue - Total Revenue by Geographic Location (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Revenue | $ 26,787 | $ 27,184 | $ 78,599 | $ 84,032 |
Percentage of Revenue | 100.00% | 100.00% | 100.00% | 100.00% |
UNITED STATES | ||||
Revenue | $ 21,695 | $ 22,227 | $ 63,377 | $ 68,624 |
Percentage of Revenue | 81.00% | 82.00% | 81.00% | 82.00% |
Europe [Member] | ||||
Revenue | $ 3,132 | $ 2,832 | $ 9,021 | $ 9,743 |
Percentage of Revenue | 12.00% | 10.00% | 11.00% | 11.00% |
Other Location [Member] | ||||
Revenue | $ 1,960 | $ 2,125 | $ 6,201 | $ 5,665 |
Percentage of Revenue | 7.00% | 8.00% | 8.00% | 7.00% |
Note 4 - Investments (Details T
Note 4 - Investments (Details Textual) - USD ($) | Sep. 30, 2018 | Dec. 31, 2017 |
Available-for-sale Securities, Accumulated Gross Unrealized Gain (Loss), before Tax, Total | $ 0 | $ 0 |
Certificates of Deposit [Member] | ||
Available-for-sale Securities, Total | $ 67,200,000 | $ 24,000,000 |
Note 5 - Fair Value Measureme_3
Note 5 - Fair Value Measurements - Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Cash equivalents | $ 6,393 | |
Investments | $ 67,186 | 24,000 |
Fair Value, Inputs, Level 1 [Member] | ||
Cash equivalents | 5,893 | |
Investments | 63,686 | |
Fair Value, Inputs, Level 2 [Member] | ||
Cash equivalents | 500 | |
Investments | 3,500 | |
Fair Value, Inputs, Level 3 [Member] | ||
Cash equivalents | ||
Investments | ||
Money Market Funds [Member] | ||
Cash equivalents | 7,083 | 5,893 |
Money Market Funds [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Cash equivalents | 7,083 | 5,893 |
Money Market Funds [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Cash equivalents | ||
Money Market Funds [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Cash equivalents | ||
Certificates of Deposit [Member] | ||
Cash equivalents | 500 | |
Investments | 3,500 | 24,000 |
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 | 500 | |
Investments | 3,500 | 24,000 |
Certificates of Deposit [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Cash equivalents | ||
Investments | ||
US Treasury Securities [Member] | ||
Investments | 63,686 | |
US Treasury Securities [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Investments | 63,686 | |
US Treasury Securities [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Investments | ||
US Treasury Securities [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Investments |
Note 6 - Equity Incentive Pla_2
Note 6 - Equity Incentive Plan (Details Textual) - USD ($) $ in Thousands | Mar. 09, 2018 | Sep. 30, 2018 | Mar. 31, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 |
Allocated Share-based Compensation Expense, Total | $ 1,177 | $ 1,474 | $ 10,064 | $ 3,940 | ||
Employee Stock Option [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 4 years | 3 years | 4 years | 3 years | ||
Restricted Stock [Member] | ||||||
Shares Paid for Tax Withholding for Share Based Compensation | 32,541 | |||||
Adjustments Related to Tax Withholding for Share-based Compensation | $ 1,700 | |||||
Chief Executive Officer [Member] | ||||||
Allocated Share-based Compensation Expense, Total | $ 6,200 |
Note 6 - Equity Incentive Pla_3
Note 6 - Equity Incentive Plan - Assumptions Used to Estimate Fair Value of Stock Options and Stock Appreciation Rights (Details) | 9 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Expected life (years) (Year) | 4 years | |
Expected dividend yield | 0.00% | 0.00% |
Minimum [Member] | ||
Risk free interest rate | 2.15% | 1.60% |
Expected volatility | 37.12% | 41.36% |
Expected life (years) (Year) | 4 years | |
Maximum [Member] | ||
Risk free interest rate | 2.82% | 1.78% |
Expected volatility | 45.61% | 44.30% |
Expected life (years) (Year) | 4 years 182 days |
Note 6 - Equity Incentive Pla_4
Note 6 - Equity Incentive Plan - Total Stock-based Compensation Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Stock-based compensation expense | $ 1,177 | $ 1,474 | $ 10,064 | $ 3,940 |
Cost of Sales [Member] | ||||
Stock-based compensation expense | 39 | 107 | (205) | 306 |
Research and Development Expense [Member] | ||||
Stock-based compensation expense | 239 | 177 | 690 | 340 |
Selling, General and Administrative Expenses [Member] | ||||
Stock-based compensation expense | $ 899 | $ 1,190 | $ 9,579 | $ 3,294 |
Note 6 - Equity Incentive Pla_5
Note 6 - Equity Incentive Plan - Granted and Exercised Stock-based Compensation Awards (Details) - shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Employee Stock Option [Member] | ||||
Stock options (in shares) | 18,500 | 60,609 | 228,300 | 470,744 |
Stock options (in shares) | 3,329 | 284,548 | 12,766 | |
Restricted Stock [Member] | ||||
Restricted stock grants (in shares) | 14,506 | 64,578 | 14,506 | |
Restricted Stock Units (RSUs) [Member] | ||||
Restricted stock grants (in shares) | 3,624 | 11,754 | 9,970 | |
Stock Appreciation Rights (SARs) [Member] | ||||
SARs (in shares) | 5,000 |
Note 7 - Earnings Per Share (_3
Note 7 - Earnings Per Share ("EPS") (Details Textual) - USD ($) $ / shares in Units, $ in Thousands, shares in Millions | Jul. 19, 2018 | May 24, 2018 | Jul. 19, 2018 | Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Jul. 16, 2018 |
Payments for Repurchase of Common Stock | $ 30,000 | |||||||
Accelerated Stock Repurchase [Member] | Morgan Stanley & Co., LLC [Member] | ||||||||
Payments for Repurchase of Common Stock | $ 30,000 | |||||||
Stock Repurchased and Retired During Period, Shares | 0.4 | 0.4 | 0.8 | |||||
Stock Repurchase Program, Remaining Authorized Repurchase Amount | $ 12,000 | |||||||
Accelerated Share Repurchases, Final Price Paid Per Share | $ 37.18 | |||||||
Accelerated Stock Repurchase [Member] | Morgan Stanley & Co., LLC [Member] | Common Stock [Member] | ||||||||
Stock Repurchase Program, Authorized Amount | $ 30,000 | |||||||
Accelerated Share Repurchases, Initial Price Paid Per Share | $ 41.41 | |||||||
Employee Stock Option [Member] | ||||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 0.9 | 0.5 | 0.6 | 0.6 |
Note 7 - Earnings Per Share (_4
Note 7 - Earnings Per Share ("EPS") - Basic and Diluted Earnings Per Share (Details) - shares shares in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Basic weighted average common shares outstanding (in shares) | 14,237 | 14,579 | 14,524 | 14,572 |
Stock options, SARs, RSUs and RSAs (in shares) | 140 | 536 | 296 | 493 |
Diluted shares used in the calculation of earnings per share (in shares) | 14,377 | 15,115 | 14,820 | 15,065 |
Note 8 - Inventories (Details T
Note 8 - Inventories (Details Textual) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Inventory Write-down | $ 4,073 | $ 609 |
Nonsaleable Inventory [Member] | ||
Inventory Write-down | 800 | |
HA Raw Materials [Member] | ||
Inventory Write-down | 1,400 | |
HYAFF-based Products [Member] | ||
Inventory Write-down | $ 1,200 |
Note 8 - Inventories - Summary
Note 8 - Inventories - Summary of Inventories (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Raw materials | $ 13,241 | $ 11,296 |
Work-in-process | 5,948 | 6,062 |
Finished goods | 4,639 | 4,677 |
Total | $ 23,828 | $ 22,035 |
Note 9 - Intangible Assets (Det
Note 9 - Intangible Assets (Details Textual) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Amortization of Intangible Assets, Total | $ 0.2 | $ 0.2 | $ 0.8 | $ 0.7 |
Note 9 - Intangible Assets - Su
Note 9 - Intangible Assets - Summary of Intangible Assets (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2018 | Dec. 31, 2017 | |
Gross Value | $ 28,206 | |
Accumulated Currency Translation Adjustment | (4,445) | $ (4,132) |
Accumulated Amortization | (14,197) | (13,439) |
Intangible assets, net | 9,564 | 10,635 |
In Process Research and Development [Member] | ||
Gross Value | 4,406 | |
Accumulated Currency Translation Adjustment | (1,122) | (1,015) |
Accumulated Amortization | ||
Intangible assets, net | 3,284 | 3,391 |
Developed Technology Rights [Member] | ||
Gross Value | 17,100 | |
Accumulated Currency Translation Adjustment | (2,744) | (2,550) |
Accumulated Amortization | (8,443) | (7,723) |
Intangible assets, net | $ 5,913 | 6,827 |
Useful life (Year) | 15 years | |
Distribution Rights [Member] | ||
Gross Value | $ 4,700 | |
Accumulated Currency Translation Adjustment | (415) | (415) |
Accumulated Amortization | (4,285) | (4,285) |
Intangible assets, net | ||
Useful life (Year) | 5 years | |
Patents [Member] | ||
Gross Value | $ 1,000 | |
Accumulated Currency Translation Adjustment | (164) | (152) |
Accumulated Amortization | (469) | (431) |
Intangible assets, net | $ 367 | 417 |
Useful life (Year) | 16 years | |
Elevess Trade Name [Member] | ||
Gross Value | $ 1,000 | |
Accumulated Currency Translation Adjustment | ||
Accumulated Amortization | (1,000) | (1,000) |
Intangible assets, net | ||
Useful life (Year) | 9 years |
Note 10 - Goodwill (Details Tex
Note 10 - Goodwill (Details Textual) $ in Thousands | Nov. 30, 2017USD ($) |
Goodwill, Impaired, Accumulated Impairment Loss | $ 0 |
Note 10 - Goodwill - Changes in
Note 10 - Goodwill - Changes in the Carrying Value of Goodwill (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2018USD ($) | |
Balance at January 1, 2018 | $ 8,218 |
Effect of foreign currency adjustments | (259) |
Balance at September 30, 2018 | $ 7,959 |
Note 11 - Accrued Expenses (Det
Note 11 - Accrued Expenses (Details Textual) - USD ($) $ in Millions | Mar. 09, 2018 | Mar. 08, 2018 | Sep. 30, 2018 |
Recall Payable | $ 0.3 | ||
Former Chief Executive Officer [Member] | |||
Severance Benefit, For A One Year Post Retirement Consulting Agreement | $ 0.3 | ||
Severance Benefit Following Retirement | $ 1.7 | ||
Severance Benefit Following Retirement, Term | 1 year 180 days |
Note 11 - Accrued Expenses - Su
Note 11 - Accrued Expenses - Summary of Accrued Expenses (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Compensation and related expenses | $ 3,875 | $ 2,893 |
Clinical trial costs | 586 | 2,318 |
Accrued liabilities related to product recall | 344 | |
Research grants | 406 | 419 |
Professional fees | 1,233 | 448 |
Deferred revenue | 52 | |
Other | 347 | 248 |
Total | $ 6,843 | $ 6,326 |
Note 12 - Commitments and Con_2
Note 12 - Commitments and Contingencies (Details Textual) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Standard and Extended Product Warranty Accrual, Ending Balance | $ 0 | $ 0 |
Note 13 - Income Taxes (Details
Note 13 - Income Taxes (Details Textual) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | |
Income Tax Expense (Benefit), Total | $ 1,496 | $ 3,643 | $ 1,890 | $ 12,587 | |
Effective Income Tax Rate Reconciliation, Percent, Total | 16.40% | 34.60% | 14.70% | 34.60% | |
Effective Income Tax Rate Reconciliation, Share-based Compensation, Windfall Tax Benefit, Amount | $ 100 | $ 1,600 | |||
Effective Income Tax Rate Reconciliation, Share-based Compensation, Windfall Tax Benefit, Percentage | 12.10% | ||||
Deferred Tax Assets, Valuation Allowance, Total | $ 0 | $ 0 | $ 0 |