Document And Entity Information
Document And Entity Information - shares | 6 Months Ended | |
Jun. 30, 2021 | Jul. 26, 2021 | |
Document Information [Line Items] | ||
Entity Central Index Key | 0000898437 | |
Entity Registrant Name | Anika Therapeutics, Inc. | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Period Focus | Q2 | |
Document Fiscal Year Focus | 2021 | |
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2021 | |
Document Transition Report | false | |
Entity File Number | 001-14027 | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 04-3145961 | |
Entity Address, Address Line One | 32 Wiggins Avenue | |
Entity Address, City or Town | Bedford | |
Entity Address, State or Province | MA | |
Entity Address, Postal Zip Code | 01730 | |
City Area Code | 781 | |
Local Phone Number | 457-9000 | |
Title of 12(b) Security | Common Stock, par value $0.01 per share | |
Trading Symbol | ANIK | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 14,423,028 |
Consolidated Balance Sheets (Cu
Consolidated Balance Sheets (Current Period Unaudited) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Current assets: | ||
Cash and cash equivalents | $ 97,181 | $ 95,817 |
Investments | 0 | 2,501 |
Accounts receivable, net of reserves of $1,413 and $1,523 at June 30, 2021 and December 31, 2020, respectively | 29,426 | 24,102 |
Inventories, net | 42,857 | 46,209 |
Prepaid expenses and other current assets | 8,297 | 8,754 |
Total current assets | 177,761 | 177,383 |
Property and equipment, net | 49,540 | 50,613 |
Right-of-use assets | 21,849 | 22,619 |
Other long-term assets | 18,748 | 15,420 |
Intangible assets, net | 87,084 | 91,157 |
Goodwill | 8,149 | 8,413 |
Total assets | 363,131 | 365,605 |
Current liabilities: | ||
Accounts payable | 8,101 | 8,984 |
Accrued expenses and other current liabilities | 16,396 | 14,793 |
Contingent consideration – current portion | 16,870 | 13,090 |
Total current liabilities | 41,367 | 36,867 |
Other long-term liabilities | 1,710 | 1,244 |
Contingent consideration | 70 | 22,320 |
Deferred tax liability | 13,100 | 11,895 |
Lease liabilities | 20,080 | 20,879 |
Commitments and contingencies (Note 9) | ||
Stockholders’ equity: | ||
Preferred stock, $0.01 par value; 1,250 shares authorized, no shares issued and outstanding at June 30, 2021 and December 31, 2020, respectively | 0 | 0 |
Common stock, $0.01 par value; 90,000 shares authorized, 14,418 and 14,329 shares issued and outstanding at June 30, 2021 and December 31, 2020, respectively | 144 | 143 |
Additional paid-in-capital | 60,699 | 55,355 |
Accumulated other comprehensive loss | (4,852) | (4,542) |
Retained earnings | 230,813 | 221,444 |
Total stockholders’ equity | 286,804 | 272,400 |
Total liabilities and stockholders’ equity | $ 363,131 | $ 365,605 |
Consolidated Balance Sheets (_2
Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) - USD ($) shares in Thousands, $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Accounts receivable, reserves | $ 1,413 | $ 1,523 |
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 | 90,000 |
Common stock, shares issued (in shares) | 14,418 | 14,329 |
Common stock, shares outstanding (in shares) | 14,418 | 14,329 |
Consolidated Statements of Oper
Consolidated Statements of Operations and Comprehensive Income (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Revenue | $ 38,145 | $ 30,678 | $ 72,437 | $ 66,075 |
Cost of revenue | 17,333 | 16,936 | 30,651 | 31,136 |
Gross Profit | 20,812 | 13,742 | 41,786 | 34,939 |
Operating expenses: | ||||
Research and development | 7,293 | 4,532 | 13,654 | 10,582 |
Selling, general and administrative | 17,989 | 14,550 | 36,164 | 28,981 |
Goodwill impairment | 0 | 0 | 0 | 18,144 |
Change in fair value of contingent consideration | (13,650) | 4,196 | (18,470) | (20,326) |
Total operating expenses | 11,632 | 23,278 | 31,348 | 37,381 |
Income (loss) from operations | 9,180 | (9,536) | 10,438 | (2,442) |
Interest and other income (expense), net | (50) | (169) | (93) | 110 |
Income (loss) before income taxes | 9,130 | (9,705) | 10,345 | (2,332) |
Provision for (benefit from) income taxes | 2,599 | (1,997) | 976 | (417) |
Net income (loss) | $ 6,531 | $ (7,708) | $ 9,369 | $ (1,915) |
Net income (loss) per share: | ||||
Basic (in dollars per share) | $ 0.45 | $ (0.54) | $ 0.65 | $ (0.13) |
Diluted (in dollars per share) | $ 0.45 | $ (0.54) | $ 0.64 | $ (0.13) |
Weighted average common shares outstanding: | ||||
Basic (in shares) | 14,393 | 14,199 | 14,368 | 14,201 |
Diluted (in shares) | 14,627 | 14,199 | 14,583 | 14,201 |
Net income (loss) | $ 6,531 | $ (7,708) | $ 9,369 | $ (1,915) |
Foreign currency translation adjustment | 199 | 209 | (310) | 80 |
Comprehensive income (loss) | $ 6,730 | $ (7,499) | $ 9,059 | $ (1,835) |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity (Unaudited) - USD ($) shares in Thousands, $ in Thousands | Restricted Stock Units (RSUs) [Member]Common Stock [Member] | Restricted Stock Units (RSUs) [Member]Additional Paid-in Capital [Member] | Restricted Stock Units (RSUs) [Member]Retained Earnings [Member] | Restricted Stock Units (RSUs) [Member]AOCI Attributable to Parent [Member] | Restricted Stock Units (RSUs) [Member] | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | AOCI Attributable to Parent [Member] | Total |
Balance (in shares) at Dec. 31, 2019 | 14,308 | |||||||||
Balance at Dec. 31, 2019 | $ 143 | $ 48,707 | $ 245,426 | $ (5,898) | $ 288,378 | |||||
Vesting of restricted stock units (in shares) | 42 | |||||||||
Vesting of restricted stock units | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | |||||
Stock-based compensation expense | $ 0 | (207) | 0 | 0 | (207) | |||||
Retirement of common stock for minimum tax withholdings (in shares) | (4) | |||||||||
Retirement of common stock for minimum tax withholdings | $ 0 | (141) | 0 | 0 | (141) | |||||
Net income (loss) | 0 | 0 | 5,793 | 0 | 5,793 | |||||
Other comprehensive income (loss) | $ 0 | 0 | 0 | (129) | (129) | |||||
Forfeiture of restricted stock awards (in shares) | (9) | |||||||||
Forfeiture of restricted stock awards | $ 0 | 0 | 0 | 0 | 0 | |||||
Repurchase of common stock (in shares) | (139) | |||||||||
Repurchase of common stock | $ (1) | 1 | 0 | 0 | 0 | |||||
Balance (in shares) at Mar. 31, 2020 | 14,198 | |||||||||
Balance at Mar. 31, 2020 | $ 142 | 48,360 | 251,219 | (6,027) | 293,694 | |||||
Balance (in shares) at Dec. 31, 2019 | 14,308 | |||||||||
Balance at Dec. 31, 2019 | $ 143 | 48,707 | 245,426 | (5,898) | 288,378 | |||||
Net income (loss) | (1,915) | |||||||||
Balance (in shares) at Jun. 30, 2020 | 14,204 | |||||||||
Balance at Jun. 30, 2020 | $ 142 | 50,609 | 243,511 | (5,818) | 288,444 | |||||
Balance (in shares) at Mar. 31, 2020 | 14,198 | |||||||||
Balance at Mar. 31, 2020 | $ 142 | 48,360 | 251,219 | (6,027) | 293,694 | |||||
Issuance of common stock for equity awards (in shares) | 2 | |||||||||
Issuance of common stock for equity awards | $ 0 | 68 | 0 | 0 | 68 | |||||
Vesting of restricted stock units (in shares) | 7 | |||||||||
Vesting of restricted stock units | $ 0 | 0 | 0 | 0 | 0 | |||||
Stock-based compensation expense | $ 0 | 2,240 | 0 | 0 | 2,240 | |||||
Retirement of common stock for minimum tax withholdings (in shares) | (3) | |||||||||
Retirement of common stock for minimum tax withholdings | $ 0 | (59) | 0 | 0 | (59) | |||||
Net income (loss) | 0 | 0 | (7,708) | 0 | (7,708) | |||||
Other comprehensive income (loss) | $ 0 | 0 | 0 | 209 | 209 | |||||
Balance (in shares) at Jun. 30, 2020 | 14,204 | |||||||||
Balance at Jun. 30, 2020 | $ 142 | 50,609 | 243,511 | (5,818) | 288,444 | |||||
Balance (in shares) at Dec. 31, 2020 | 14,329 | |||||||||
Balance at Dec. 31, 2020 | $ 143 | 55,355 | 221,444 | (4,542) | 272,400 | |||||
Issuance of common stock for equity awards (in shares) | 0 | |||||||||
Issuance of common stock for equity awards | $ 0 | 1 | 0 | 0 | 1 | |||||
Vesting of restricted stock units (in shares) | 46 | |||||||||
Vesting of restricted stock units | $ 1 | $ (1) | ||||||||
Stock-based compensation expense | $ 0 | 2,259 | 0 | 0 | 2,259 | |||||
Retirement of common stock for minimum tax withholdings (in shares) | (9) | |||||||||
Retirement of common stock for minimum tax withholdings | $ 0 | (333) | 0 | 0 | (333) | |||||
Net income (loss) | 0 | 0 | 2,838 | 0 | 2,838 | |||||
Other comprehensive income (loss) | $ 0 | 0 | 0 | (509) | (509) | |||||
Balance (in shares) at Mar. 31, 2021 | 14,366 | |||||||||
Balance at Mar. 31, 2021 | $ 144 | 57,281 | 224,282 | (5,051) | 276,656 | |||||
Balance (in shares) at Dec. 31, 2020 | 14,329 | |||||||||
Balance at Dec. 31, 2020 | $ 143 | 55,355 | 221,444 | (4,542) | 272,400 | |||||
Net income (loss) | 9,369 | |||||||||
Balance (in shares) at Jun. 30, 2021 | 14,418 | |||||||||
Balance at Jun. 30, 2021 | $ 144 | 60,699 | 230,813 | (4,852) | 286,804 | |||||
Balance (in shares) at Mar. 31, 2021 | 14,366 | |||||||||
Balance at Mar. 31, 2021 | $ 144 | 57,281 | 224,282 | (5,051) | 276,656 | |||||
Issuance of common stock for equity awards (in shares) | 18 | |||||||||
Issuance of common stock for equity awards | $ 0 | 640 | 0 | 0 | 640 | |||||
Vesting of restricted stock units (in shares) | 35 | |||||||||
Vesting of restricted stock units | $ 0 | 0 | 0 | 0 | 0 | |||||
Stock-based compensation expense | $ 0 | 2,797 | 0 | 0 | 2,797 | |||||
Retirement of common stock for minimum tax withholdings (in shares) | (1) | |||||||||
Retirement of common stock for minimum tax withholdings | $ 0 | (19) | 0 | 0 | (19) | |||||
Net income (loss) | 0 | 0 | 6,531 | 0 | 6,531 | |||||
Other comprehensive income (loss) | $ 0 | 0 | 0 | 199 | 199 | |||||
Balance (in shares) at Jun. 30, 2021 | 14,418 | |||||||||
Balance at Jun. 30, 2021 | $ 144 | $ 60,699 | $ 230,813 | $ (4,852) | $ 286,804 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Cash flows from operating activities: | ||
Net income (loss) | $ 9,369 | $ (1,915) |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 7,011 | 6,459 |
Non-cash operating lease cost | 912 | 725 |
Goodwill impairment | 0 | 18,144 |
Change in fair value of contingent consideration | (18,470) | (20,326) |
Loss on disposal of fixed assets | 831 | 265 |
Loss on impairment of intangible asset | 0 | 1,025 |
Stock-based compensation expense | 5,056 | 2,033 |
Deferred income taxes | 1,196 | (907) |
Provision (recovery) for doubtful accounts | (26) | (36) |
Provision for inventory | 2,404 | 3,259 |
Amortization of acquisition related inventory step-up | 4,786 | 4,123 |
Changes in operating assets and liabilities: | ||
Accounts receivable | (5,347) | 6,208 |
Inventories | (6,796) | (5,410) |
Prepaid expenses, other current and long-term assets | 1,608 | (373) |
Accounts payable | (642) | (2,462) |
Operating lease liabilities | (849) | (675) |
Accrued expenses, other current and long-term liabilities | 2,307 | (5,135) |
Income taxes | (1,487) | (389) |
Net cash provided by operating activities | 1,863 | 4,613 |
Cash flows from investing activities: | ||
Acquisition of Parcus Medical and Arthrosurface, net of cash acquired | (352) | (93,859) |
Proceeds from maturities of investments | 2,501 | 20,000 |
Purchases of investments | 0 | (20,035) |
Purchases of property and equipment | (2,732) | (908) |
Net cash used in investing activities | (583) | (94,802) |
Cash flows from financing activities: | ||
Payments made on finance leases | (147) | 0 |
Repayments of long term debt | 0 | (351) |
Proceeds from long term debt | 0 | 50,000 |
Cash paid for tax withheld on vested restricted stock awards | (353) | (200) |
Proceeds from exercises of equity awards | 643 | 68 |
Net cash provided by financing activities | 143 | 49,517 |
Exchange rate impact on cash and cash equivalents | (59) | (45) |
Increase (decrease) in cash and cash equivalents | 1,364 | (40,717) |
Cash and cash equivalents at beginning of period | 95,817 | 157,463 |
Cash and cash equivalents at end of period | 97,181 | 116,746 |
Non-cash Investing Activities: | ||
Purchases of property and equipment included in accounts payable and accrued expenses | 263 | 61 |
Right of use assets | 220 | 0 |
Consideration for acquisitions included in accounts payable and accrued expenses | 0 | 1,209 |
Acquisition related contingent consideration | 0 | 69,076 |
Operating lease liabilities | $ 220 | $ 0 |
Note 1 - Nature of Business
Note 1 - Nature of Business | 6 Months Ended |
Jun. 30, 2021 | |
Notes to Financial Statements | |
Nature of Operations [Text Block] | 1. Nature of Business Anika Therapeutics, Inc. (“the Company”) is a global joint preservation company that creates and delivers meaningful advancements in early intervention orthopedic care, including in the areas of osteoarthritis (“OA”) pain management, regenerative solutions, soft tissue repair and bone preserving joint technologies. In early 2020, 30 The Company is subject to risks common to companies in the biotechnology and medical device industries including, but not There continue to be uncertainties regarding the pandemic of the novel coronavirus (“COVID- 19” 19 19 may may 19. |
Note 2 - Basis of Presentation
Note 2 - Basis of Presentation | 6 Months Ended |
Jun. 30, 2021 | |
Notes to Financial Statements | |
Business Description and Basis of Presentation [Text Block] | 2. Basis of Presentation The accompanying unaudited consolidated financial statements and related notes have been prepared by the Company pursuant to the rules and regulations of the Securities and Exchange Commission (“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 from this report pursuant to SEC rules and regulations relating to interim financial statements. The December 31, 2020 The accompanying unaudited 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, 2020. three six June 30, 2021 not December 31, 2021. Segment Information Operating segments 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 President and Chief Executive Officer as of June 30, 2021. 280, Segment Reportin one Recent Accounting Adoptions In December 2019, 2019 12, Income Taxes (Topic 740 Simplifying the Accounting for Income Taxes, 740. 740 2019 12 December 15, 2020 2019 12 January 1, 2021. not |
Note 3 - Business Combinations
Note 3 - Business Combinations | 6 Months Ended |
Jun. 30, 2021 | |
Notes to Financial Statements | |
Business Combination Disclosure [Text Block] | 3. Business Combinations Parcus Medical, LLC On January 24, 2020, January 4, 2020 ( The acquisition of Parcus Medical has been accounted for as a business combination under ASC 805. 805, Business Combinations, January 24, 2020 Consideration Transferred Pursuant to the Parcus Medical Merger Agreement, the Company acquired all outstanding equity of Parcus Medical for estimated total purchase consideration of $75.1 million, as of January 24, 2020, Cash consideration $ 32,794 Deferred consideration 1,642 Estimated fair value of contingent consideration 40,700 Estimated total purchase consideration $ 75,136 Contingent consideration represents additional payments that the Company may 2020 2022. January 24, 2020 one December 31, 2020. 4, Fair Value Measurements June 30, 2021 December 31, 2020. Acquisition-related costs are not three March 31, 2020. March 31, 2020 Fair Value of Net Assets Acquired The estimate of fair value as of the acquisition date required the use of significant assumptions and estimates. Critical estimates included, but were not may The allocation of purchase price to the identifiable assets acquired and liabilities assumed was based on estimates of fair value as of January 24, 2020, Recognized identifiable assets acquired and liabilities assumed: Cash and cash equivalents $ 196 Accounts receivable 2,029 Inventories 10,968 Prepaid expenses and other current assets 364 Property and equipment, net 1,099 Right-of-use assets 944 Intangible assets 44,000 Accounts payable, accrued expenses and other current liabilities (2,763 ) Other long-term liabilities (594 ) Lease liabilities (735 ) Net assets acquired 55,508 Goodwill 19,628 Estimated total purchase consideration $ 75,136 Subsequent to the acquisition date, during the three September 30, 2020, January 24, 2020 not The acquired intangible assets based on estimates of fair value as of January 24, 2020 Developed technology $ 41,100 Trade name 1,800 Customer relationships 1,100 Total acquired intangible assets $ 44,000 The fair value of the developed technology intangible assets has been estimated using the multi-period excess earnings method, which is based on the principle that the value of an intangible asset is equal to the present value of the incremental after-tax cash flow attributable to the asset, after charges for other assets employed by the business. The fair value of the customer relationships has been estimated using the avoided costs/lost profits method, which is based on the principle that the value of an intangible asset is based on consideration of the total costs that would be avoided by having this asset in place. The fair value of the trade name has been estimated using the relief from royalty method of the income approach, which is based on the principle that the value of an intangible asset is equal to the present value of the after-tax royalty savings attributable to owning the intangible asset. Key estimates and assumptions used in these models are projected revenues and expenses related to the asset, estimated contributory asset charges, estimated costs to recreate the asset, and a risk-adjusted discount rate used to calculate the present value of the future expected cash inflows or cash outflows avoided from the asset. The fair value of developed technology will be amortized over a useful life of 15 years, the fair value of customer relationships over 10 years, and the fair value of the trade name over 5 years. The excess of the purchase price over the fair value of the net assets acquired was recorded as goodwill and assigned to the newly established reporting unit for Parcus Medical and Arthrosurface. The goodwill is attributable to the workforce of the business and the value of future technologies expected to arise after the acquisition. Goodwill will not 7, Goodwill Arthrosurface, Inc. On February 3, 2020, January 4, 2020 ( The acquisition of Arthrosurface has been accounted for as a business combination under ASC 805. 805, February 3, 2020 Consideration Transferred Pursuant to the Arthrosurface Merger Agreement, the Company acquired all outstanding equity of Arthrosurface for estimated total purchase consideration of $90.3 million, as of February 3, 2020, Cash consideration $ 61,909 Estimated fair value of contingent consideration 28,376 Estimated total purchase consideration $ 90,285 Pursuant to the Arthrosurface Merger Agreement, the Company could be required to make future payments up to $40.0 million depending on the achievement of regulatory milestones and the level of net sales of Arthrosurface products in 2020 2021. February 3, 2020 February 3, 2020 October 2020 July 2021, two 4, Fair Value Measurements June 30, 2021 December 31, 2020. Acquisition-related costs are not three March 31, 2020. March 31, 2020 Fair Value of Net Assets Acquired The estimate of fair value required the use of significant assumptions and estimates. Critical estimates included, but were not may The allocation of purchase price to the identifiable assets acquired and liabilities assumed was based on estimates of fair value as of February 3, 2020, Recognized identifiable assets acquired and liabilities assumed: Cash and cash equivalents $ 1,072 Accounts receivable 5,368 Inventories 15,652 Prepaid expenses and other current assets 535 Property, plant and equipment 3,394 Other long-term assets 7,548 Intangible assets 48,900 Accounts payable, accrued expenses and other liabilities (3,929 ) Deferred tax liabilities (11,147 ) Net assets acquired 67,393 Goodwill 22,892 Estimated total purchase consideration $ 90,285 Intangible assets acquired consist of: Developed technology $ 37,000 Trade name 3,400 Customer relationships 7,900 IPR&D 600 Total acquired intangible assets $ 48,900 The fair value of the developed technology intangible assets has been estimated using the multi-period excess earnings method, which is based on the principle that the value of an intangible asset is equal to the present value of the incremental after-tax cash flow attributable to the asset, after charges for other assets employed by the business. The fair value of the customer relationships has been estimated using the avoided costs/lost profits method, which is based on the principle that the value of an intangible asset is based on consideration of the total costs that would be avoided by having this asset in place. The fair value of the trade name has been estimated using the relief from royalty method of the income approach, which is based on the principle that the value of an intangible asset is equal to the present value of the after-tax royalty savings attributable to owning the intangible asset. Key estimates and assumptions used in these models are projected revenues and expenses related to the asset, estimated contributory asset charges, estimated costs to recreate the asset, and a risk-adjusted discount rate used to calculate the present value of the future expected cash inflows or cash outflows avoided from the asset. The fair value of developed technology will be amortized over an estimated useful life of 15 years, the fair value of customer relationships over 10 years, and the fair value of the trade name over 5 years. A total of $0.6 million represents the fair value of IPR&D with an indefinite useful life that will be evaluated for impairment annually, or more frequently if events or changes in circumstances indicate that the asset might be impaired. The excess of the purchase price over the fair value of the net assets acquired was recorded as goodwill and assigned to the newly established reporting unit for Parcus Medical and Arthrosurface. The goodwill is attributable to the workforce of the business and the value of future technologies expected to arise after the acquisition. Goodwill will not not 7, Goodwill Pro forma Information The Parcus Medical and Arthrosurface acquisitions were both completed in the first 2020. The unaudited pro forma information for the three six June 30, 2021 2020 January 1, 2019 These pro forma adjustments include: (i) a net increase in amortization expense to record amortization expense for the aforementioned acquired identifiable intangible assets, (ii) an adjustment to cost of revenue based on the preliminary inventory step-up and the anticipated inventory turnover, (iii) a net decrease in interest expense as a result of eliminating interest expense and interest income related to borrowings that were settled in accordance with the respective Parcus Medical Merger Agreement and Arthrosurface Merger Agreement, (iv) an adjustment to record the acquisition-related transaction costs in the period required, and (v) the tax effect of the pro forma adjustments using the anticipated effective tax rate. The effective tax rate of the combined company could be materially different from the effective rate presented in this unaudited pro forma combined financial information. As a result of the transaction, the combined company may not The following table presents unaudited supplemental pro forma information: Six Months ended June 30, 2021 2020 Total revenue $ 72,437 $ 70,028 Net income (loss) 9,369 (917 ) |
Note 4 - Fair Value Measurement
Note 4 - Fair Value Measurements | 6 Months Ended |
Jun. 30, 2021 | |
Notes to Financial Statements | |
Fair Value Disclosures [Text Block] | 4. Fair Value Measurements The Company held investments in U.S. treasury bills of $2.5 million as available-for-sale securities at December 31, 2020. December 31, 2020. June 30, 2021. The Company’s investments are all classified within Level 1 not 3 The classification of the Company’s cash equivalents and investments within the fair value hierarchy is as follows: Active Markets Significant Other Significant June 30, 2021 for Identical Assets (Level 1) Observable Inputs (Level 2) Unobservable Inputs (Level 3) Amortized Cost Cash equivalents: Money Market Funds $ 67,038 $ 67,038 $ - $ - $ 67,038 Other current and long-term liabilities: Contingent Consideration - Short Term $ 16,870 $ - $ - $ 16,870 $ - Contingent Consideration - Long Term 70 - - 70 - Total other current and long-term liabilities $ 16,940 $ - $ - $ 16,940 $ - Active Markets Significant Other Significant December 31, 2020 for Identical Assets (Level 1) Observable Inputs (Level 2) Unobservable Inputs (Level 3) Amortized Cost Cash equivalents: Money Market Funds $ 74,522 $ 74,522 $ - $ - $ 74,522 Investments: U.S. Treasury Bills $ 2,501 $ 2,501 $ - $ - $ 2,524 Other current and long-term liabilities: Contingent Consideration - Short Term $ 13,090 $ - $ - $ 13,090 $ - Contingent Consideration - Long Term 22,320 - - 22,320 - Total other current and long-term liabilities $ 35,410 $ - $ - $ 35,410 $ - Contingent Consideration The following table provides a rollforward of the contingent consideration related to business acquisitions discussed in Note 3, Business Combinations Three Months Ended June 30, 2021 Six Months Ended June 30, 2021 Balance, beginning $ 30,590 $ 35,410 Additions - - Payments - - Change in fair value (13,650 ) (18,470 ) Balance, ending $ 16,940 $ 16,940 Under the Parcus Medical Merger Agreement and Arthrosurface Merger Agreement, there are earn-out milestones totaling $100 million payable from 2020 2022. 2020 2022, 2020 2021. December 31, 2020 June 30, 2021. December 31, 2020, June 30, 2021, one June 30, 2021. June 30, 2021. The overall fair value of the contingent consideration decreased by $13.7 million and $18.5 million during the three six June 30, 2021, In October 2020, June 2021, June 30, 2021 July 2021. |
Note 5 - Inventories
Note 5 - Inventories | 6 Months Ended |
Jun. 30, 2021 | |
Notes to Financial Statements | |
Inventory Disclosure [Text Block] | 5. Inventories Inventories consist of the following: June 30, December 31, 2021 2020 Raw materials $ 14,892 $ 14,852 Work-in-process 11,818 12,811 Finished goods 33,876 33,347 Total $ 60,586 $ 61,010 Inventories $ 42,857 $ 46,209 Other long-term assets 17,729 14,801 The Company recorded an inventory reserve of $2.5 three June 30, 2021, |
Note 6 - Intangible Assets
Note 6 - Intangible Assets | 6 Months Ended |
Jun. 30, 2021 | |
Notes to Financial Statements | |
Goodwill and Intangible Assets Disclosure [Text Block] | 6. Intangible Assets Intangible assets as of June 30, 2021 December 31, 2020 Six Months Ended June 30, 2021 December 31, 2020 Gross Value Less: Accumulated Currency Translation Adjustment Less: Accumulated Amortization Net Book Value Net Book Value Weighted Average Useful Life Developed technology $ 89,580 $ (1,506 ) $ (14,975 ) $ 73,099 $ 75,899 15 IPR&D 3,256 (926 ) - 2,330 2,587 Indefinite Customer relationships 9,000 - (1,277 ) 7,723 8,173 10 Distributor relationships 4,700 (415 ) (4,285 ) - - 5 Patents 1,000 (180 ) (607 ) 213 259 16 Tradenames 5,200 - (1,481 ) 3,719 4,239 5 Total $ 112,736 $ (3,027 ) $ (22,625 ) $ 87,084 $ 91,157 13 The aggregate amortization expense related to intangible assets was $2.0 million and $2.2 million for the three June 30, 2021 2020, six June 30, 2021 2020, |
Note 7 - Goodwill
Note 7 - Goodwill | 6 Months Ended |
Jun. 30, 2021 | |
Notes to Financial Statements | |
Goodwill Disclosure [Text Block] | 7. Goodwill The Company assesses goodwill for impairment annually, or, under certain circumstances, more frequently, such as when events or changes in circumstances indicate there may Changes in the carrying value of goodwill for the six June 30, 2021 Six Months Ended June 30, 2021 Balance, beginning January 1, 2021 $ 8,413 Effect of foreign currency adjustments (264 ) Balance, ending June 30, 2021 $ 8,149 |
Note 8 - Accrued Expenses and O
Note 8 - Accrued Expenses and Other Liabilities | 6 Months Ended |
Jun. 30, 2021 | |
Notes to Financial Statements | |
Accounts Payable and Accrued Liabilities Disclosure [Text Block] | 8. Accrued Expenses and Other Liabilities Accrued expenses and other liabilities consist of the following: June 30, 2021 December 31, 2020 Compensation and related expenses $ 7,754 $ 7,345 Professional fees 2,542 3,438 Operating lease liability - current 1,524 1,437 Clinical trial costs 2,604 1,429 Other 1,972 1,144 Total $ 16,396 $ 14,793 |
Note 9 - Commitments and Contin
Note 9 - Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2021 | |
Notes to Financial Statements | |
Commitments and Contingencies Disclosure [Text Block] | 9. 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 June 30, 2021 December 31, 2020 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 10 - Revenue
Note 10 - Revenue | 6 Months Ended |
Jun. 30, 2021 | |
Notes to Financial Statements | |
Revenue from Contract with Customer [Text Block] | 10. Revenue Revenue by product family was as follows: Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Joint Pain Management $ 24,321 $ 22,247 $ 43,637 $ 47,730 Joint Preservation and Restoration 11,884 6,622 24,103 14,518 Other 1,940 1,809 4,697 3,827 $ 38,145 $ 30,678 $ 72,437 $ 66,075 Revenue from the Company’s sole significant customer, DePuy Synthes Mitek Sports Medicine (“Mitek”), part of the Johnson & Johnson Medical Companies, as a percentage of the Company’s total revenue was 46% and 54% for the three June 30, 2021 2020, six June 30, 2021 2020, We receive payments from our customers based on billing schedules established in each contract. Up-front payments are recorded as deferred revenue upon receipt or when due and may June 30, 2021 December 31, 2020, Total revenue by geographic location was as follows: Three Months Ended June 30, 2021 2020 Total Percentage of Total Percentage of Revenue Revenue Revenue Revenue Geographic Location: United States $ 30,069 79 % $ 25,133 82 % Europe 5,089 13 % 2,910 9 % Other 2,987 8 % 2,635 9 % Total $ 38,145 100 % $ 30,678 100 % Six Months Ended June 30, 2021 2020 Total Percentage of Total Percentage of Revenue Revenue Revenue Revenue Geographic Location: United States $ 55,074 76 % $ 51,438 78 % Europe 10,570 15 % 8,186 12 % Other 6,793 9 % 6,451 10 % Total $ 72,437 100 % $ 66,075 100 % |
Note 11 - Equity Incentive Plan
Note 11 - Equity Incentive Plan | 6 Months Ended |
Jun. 30, 2021 | |
Notes to Financial Statements | |
Share-based Payment Arrangement [Text Block] | 11. Stock-Based Compensation On June 16, 2021, 2017 2017 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 June 30, Six Months Ended June 30, 2021 2020 2021 2020 Cost of revenue $ 214 $ 216 $ 343 $ 362 Research and development 402 156 643 352 Selling, general and administrative 2,181 1,868 4,070 1,319 Total stock-based compensation expense $ 2,797 $ 2,240 $ 5,056 $ 2,033 |
Note 12 - Income Taxes
Note 12 - Income Taxes | 6 Months Ended |
Jun. 30, 2021 | |
Notes to Financial Statements | |
Income Tax Disclosure [Text Block] | 12. Income Taxes The Company recorded an income tax provision of $2.6 million and $1.0 million for the three six June 30, 2021, three six June 30, 2020, three June 30, 2021, 2020, second 2021. six June 30, 2021, 2020. The Company files income tax returns in the United States on a federal basis, in certain U.S. states, and in certain foreign jurisdictions. 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 assessed whether it is more likely than not not |
Note 13 - Earnings Per Share ("
Note 13 - Earnings Per Share ("EPS") | 6 Months Ended |
Jun. 30, 2021 | |
Notes to Financial Statements | |
Earnings Per Share [Text Block] | 13. 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 EPS (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Shares used in the calculation of basic EPS 14,393 14,199 14,368 14,201 Effect of dilutive securities: Share based awards 234 - 215 - Diluted shares used in the calculation of EPS 14,627 14,199 14,583 14,201 Stock options of 1.0 million shares were outstanding for each of the three June 30, 2021 2020 not six June 30, 2021 2020 not |
Note 3 - Business Combinations
Note 3 - Business Combinations (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Notes Tables | |
Schedule of Business Acquisitions, by Acquisition [Table Text Block] | Cash consideration $ 32,794 Deferred consideration 1,642 Estimated fair value of contingent consideration 40,700 Estimated total purchase consideration $ 75,136 Cash consideration $ 61,909 Estimated fair value of contingent consideration 28,376 Estimated total purchase consideration $ 90,285 |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed [Table Text Block] | Recognized identifiable assets acquired and liabilities assumed: Cash and cash equivalents $ 196 Accounts receivable 2,029 Inventories 10,968 Prepaid expenses and other current assets 364 Property and equipment, net 1,099 Right-of-use assets 944 Intangible assets 44,000 Accounts payable, accrued expenses and other current liabilities (2,763 ) Other long-term liabilities (594 ) Lease liabilities (735 ) Net assets acquired 55,508 Goodwill 19,628 Estimated total purchase consideration $ 75,136 Recognized identifiable assets acquired and liabilities assumed: Cash and cash equivalents $ 1,072 Accounts receivable 5,368 Inventories 15,652 Prepaid expenses and other current assets 535 Property, plant and equipment 3,394 Other long-term assets 7,548 Intangible assets 48,900 Accounts payable, accrued expenses and other liabilities (3,929 ) Deferred tax liabilities (11,147 ) Net assets acquired 67,393 Goodwill 22,892 Estimated total purchase consideration $ 90,285 |
Schedule of Finite-Lived Intangible Assets Acquired as Part of Business Combination [Table Text Block] | Developed technology $ 41,100 Trade name 1,800 Customer relationships 1,100 Total acquired intangible assets $ 44,000 Intangible assets acquired consist of: Developed technology $ 37,000 Trade name 3,400 Customer relationships 7,900 IPR&D 600 Total acquired intangible assets $ 48,900 |
Business Acquisition, Pro Forma Information [Table Text Block] | Six Months ended June 30, 2021 2020 Total revenue $ 72,437 $ 70,028 Net income (loss) 9,369 (917 ) |
Note 4 - Fair Value Measureme_2
Note 4 - Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Notes Tables | |
Fair Value, Assets Measured on Recurring Basis [Table Text Block] | Active Markets Significant Other Significant June 30, 2021 for Identical Assets (Level 1) Observable Inputs (Level 2) Unobservable Inputs (Level 3) Amortized Cost Cash equivalents: Money Market Funds $ 67,038 $ 67,038 $ - $ - $ 67,038 Other current and long-term liabilities: Contingent Consideration - Short Term $ 16,870 $ - $ - $ 16,870 $ - Contingent Consideration - Long Term 70 - - 70 - Total other current and long-term liabilities $ 16,940 $ - $ - $ 16,940 $ - Active Markets Significant Other Significant December 31, 2020 for Identical Assets (Level 1) Observable Inputs (Level 2) Unobservable Inputs (Level 3) Amortized Cost Cash equivalents: Money Market Funds $ 74,522 $ 74,522 $ - $ - $ 74,522 Investments: U.S. Treasury Bills $ 2,501 $ 2,501 $ - $ - $ 2,524 Other current and long-term liabilities: Contingent Consideration - Short Term $ 13,090 $ - $ - $ 13,090 $ - Contingent Consideration - Long Term 22,320 - - 22,320 - Total other current and long-term liabilities $ 35,410 $ - $ - $ 35,410 $ - |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Table Text Block] | Three Months Ended June 30, 2021 Six Months Ended June 30, 2021 Balance, beginning $ 30,590 $ 35,410 Additions - - Payments - - Change in fair value (13,650 ) (18,470 ) Balance, ending $ 16,940 $ 16,940 |
Note 5 - Inventories (Tables)
Note 5 - Inventories (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Notes Tables | |
Schedule of Inventory, Current [Table Text Block] | June 30, December 31, 2021 2020 Raw materials $ 14,892 $ 14,852 Work-in-process 11,818 12,811 Finished goods 33,876 33,347 Total $ 60,586 $ 61,010 Inventories $ 42,857 $ 46,209 Other long-term assets 17,729 14,801 |
Note 6 - Intangible Assets (Tab
Note 6 - Intangible Assets (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Notes Tables | |
Schedule of Finite-Lived and Indefinite-Lived Intangible Assets by Major Class [Table Text Block] | Six Months Ended June 30, 2021 December 31, 2020 Gross Value Less: Accumulated Currency Translation Adjustment Less: Accumulated Amortization Net Book Value Net Book Value Weighted Average Useful Life Developed technology $ 89,580 $ (1,506 ) $ (14,975 ) $ 73,099 $ 75,899 15 IPR&D 3,256 (926 ) - 2,330 2,587 Indefinite Customer relationships 9,000 - (1,277 ) 7,723 8,173 10 Distributor relationships 4,700 (415 ) (4,285 ) - - 5 Patents 1,000 (180 ) (607 ) 213 259 16 Tradenames 5,200 - (1,481 ) 3,719 4,239 5 Total $ 112,736 $ (3,027 ) $ (22,625 ) $ 87,084 $ 91,157 13 |
Note 7 - Goodwill (Tables)
Note 7 - Goodwill (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Notes Tables | |
Schedule of Goodwill [Table Text Block] | Six Months Ended June 30, 2021 Balance, beginning January 1, 2021 $ 8,413 Effect of foreign currency adjustments (264 ) Balance, ending June 30, 2021 $ 8,149 |
Note 8 - Accrued Expenses and_2
Note 8 - Accrued Expenses and Other Liabilities (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Notes Tables | |
Schedule of Accrued Liabilities [Table Text Block] | June 30, 2021 December 31, 2020 Compensation and related expenses $ 7,754 $ 7,345 Professional fees 2,542 3,438 Operating lease liability - current 1,524 1,437 Clinical trial costs 2,604 1,429 Other 1,972 1,144 Total $ 16,396 $ 14,793 |
Note 10 - Revenue (Tables)
Note 10 - Revenue (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Notes Tables | |
Schedule of Segment Reporting Information, by Segment [Table Text Block] | Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Joint Pain Management $ 24,321 $ 22,247 $ 43,637 $ 47,730 Joint Preservation and Restoration 11,884 6,622 24,103 14,518 Other 1,940 1,809 4,697 3,827 $ 38,145 $ 30,678 $ 72,437 $ 66,075 |
Schedule of Revenue and Operating Income by Geographical Areas [Table Text Block] | Three Months Ended June 30, 2021 2020 Total Percentage of Total Percentage of Revenue Revenue Revenue Revenue Geographic Location: United States $ 30,069 79 % $ 25,133 82 % Europe 5,089 13 % 2,910 9 % Other 2,987 8 % 2,635 9 % Total $ 38,145 100 % $ 30,678 100 % Six Months Ended June 30, 2021 2020 Total Percentage of Total Percentage of Revenue Revenue Revenue Revenue Geographic Location: United States $ 55,074 76 % $ 51,438 78 % Europe 10,570 15 % 8,186 12 % Other 6,793 9 % 6,451 10 % Total $ 72,437 100 % $ 66,075 100 % |
Note 11 - Equity Incentive Pl_2
Note 11 - Equity Incentive Plan (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Notes Tables | |
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Table Text Block] | Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Cost of revenue $ 214 $ 216 $ 343 $ 362 Research and development 402 156 643 352 Selling, general and administrative 2,181 1,868 4,070 1,319 Total stock-based compensation expense $ 2,797 $ 2,240 $ 5,056 $ 2,033 |
Note 13 - Earnings Per Share _2
Note 13 - Earnings Per Share ("EPS") (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Notes Tables | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Shares used in the calculation of basic EPS 14,393 14,199 14,368 14,201 Effect of dilutive securities: Share based awards 234 - 215 - Diluted shares used in the calculation of EPS 14,627 14,199 14,583 14,201 |
Note 3 - Business Combination_2
Note 3 - Business Combinations (Details Textual) - USD ($) $ in Thousands | Feb. 03, 2020 | Jan. 24, 2020 | Jul. 31, 2021 | Oct. 31, 2020 | Mar. 31, 2020 | Jun. 30, 2021 |
Finite-Lived Intangible Asset, Useful Life (Year) | 13 years | |||||
Developed Technology Rights [Member] | ||||||
Finite-Lived Intangible Asset, Useful Life (Year) | 15 years | |||||
Customer Relationships [Member] | ||||||
Finite-Lived Intangible Asset, Useful Life (Year) | 10 years | |||||
Trade Names [Member] | ||||||
Finite-Lived Intangible Asset, Useful Life (Year) | 5 years | |||||
Parcus Medical [Member] | ||||||
Business Combination, Consideration Transferred, Total | $ 75,136 | |||||
Business Combination, Contingent Consideration Arrangements, Change in Range of Outcomes, Contingent Consideration, Liability, Value, High | 60,000 | |||||
Business Combination, Acquisition Related Costs | $ 1,900 | |||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Inventory | 10,968 | |||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | $ 44,000 | |||||
Parcus Medical [Member] | Developed Technology Rights [Member] | ||||||
Finite-Lived Intangible Asset, Useful Life (Year) | 15 years | |||||
Parcus Medical [Member] | Customer Relationships [Member] | ||||||
Finite-Lived Intangible Asset, Useful Life (Year) | 10 years | |||||
Parcus Medical [Member] | Trade Names [Member] | ||||||
Finite-Lived Intangible Asset, Useful Life (Year) | 5 years | |||||
Parcus Medical [Member] | Trunk Stock [Member] | ||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Inventory | $ 1,900 | |||||
Arthrosurface [Member] | ||||||
Business Combination, Consideration Transferred, Total | $ 90,285 | |||||
Business Combination, Contingent Consideration Arrangements, Change in Range of Outcomes, Contingent Consideration, Liability, Value, High | 40,000 | |||||
Business Combination, Acquisition Related Costs | $ 2,200 | |||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Inventory | 15,652 | |||||
Payment for Contingent Consideration Liability, Financing Activities | $ 5,000 | |||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | $ 48,900 | |||||
Arthrosurface [Member] | Subsequent Event [Member] | ||||||
Payment for Contingent Consideration Liability, Financing Activities | $ 10,000 | |||||
Arthrosurface [Member] | Developed Technology Rights [Member] | ||||||
Finite-Lived Intangible Asset, Useful Life (Year) | 15 years | |||||
Arthrosurface [Member] | Customer Relationships [Member] | ||||||
Finite-Lived Intangible Asset, Useful Life (Year) | 10 years | |||||
Arthrosurface [Member] | Trade Names [Member] | ||||||
Finite-Lived Intangible Asset, Useful Life (Year) | 5 years | |||||
Arthrosurface [Member] | In Process Research and Development [Member] | ||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | $ 600 |
Note 3 - Business Combination_3
Note 3 - Business Combinations - Consideration Transferred (Details) - USD ($) $ in Thousands | Feb. 03, 2020 | Jan. 24, 2020 |
Parcus Medical [Member] | ||
Cash consideration | $ 32,794 | |
Deferred consideration | 1,642 | |
Estimated fair value of contingent consideration | 40,700 | |
Estimated total purchase consideration | $ 75,136 | |
Arthrosurface [Member] | ||
Cash consideration | $ 61,909 | |
Estimated fair value of contingent consideration | 28,376 | |
Estimated total purchase consideration | $ 90,285 |
Note 3 - Business Combination_4
Note 3 - Business Combinations - Fair Value of Net Assets Acquired (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 | Feb. 03, 2020 | Jan. 24, 2020 |
Goodwill | $ 8,149 | $ 8,413 | ||
Parcus Medical [Member] | ||||
Cash and cash equivalents | $ 196 | |||
Accounts receivable | 2,029 | |||
Inventories | 10,968 | |||
Prepaid expenses and other current assets | 364 | |||
Property and equipment, net | 1,099 | |||
Right-of-use assets | 944 | |||
Intangible assets | 44,000 | |||
Accounts payable, accrued expenses and other current liabilities | (2,763) | |||
Other long-term liabilities | (594) | |||
Lease liabilities | (735) | |||
Net assets acquired | 55,508 | |||
Goodwill | 19,628 | |||
Estimated total purchase consideration | $ 75,136 | |||
Arthrosurface [Member] | ||||
Cash and cash equivalents | $ 1,072 | |||
Accounts receivable | 5,368 | |||
Inventories | 15,652 | |||
Prepaid expenses and other current assets | 535 | |||
Property and equipment, net | 3,394 | |||
Intangible assets | 48,900 | |||
Accounts payable, accrued expenses and other current liabilities | (3,929) | |||
Net assets acquired | 67,393 | |||
Goodwill | 22,892 | |||
Estimated total purchase consideration | 90,285 | |||
Other long-term assets | 7,548 | |||
Deferred tax liabilities | $ (11,147) |
Note 3 - Business Combination_5
Note 3 - Business Combinations - Intangible Assets Acquired (Details) - USD ($) $ in Millions | Feb. 03, 2020 | Jan. 24, 2020 |
Parcus Medical [Member] | ||
Intangible assets | $ 44 | |
Arthrosurface [Member] | ||
Intangible assets | $ 48.9 | |
Developed Technology Rights [Member] | Parcus Medical [Member] | ||
Intangible assets | 41.1 | |
Developed Technology Rights [Member] | Arthrosurface [Member] | ||
Intangible assets | 37 | |
Trade Names [Member] | Parcus Medical [Member] | ||
Intangible assets | 1.8 | |
Trade Names [Member] | Arthrosurface [Member] | ||
Intangible assets | 3.4 | |
Customer Relationships [Member] | Parcus Medical [Member] | ||
Intangible assets | $ 1.1 | |
Customer Relationships [Member] | Arthrosurface [Member] | ||
Intangible assets | 7.9 | |
In Process Research and Development [Member] | Arthrosurface [Member] | ||
Intangible assets | $ 0.6 |
Note 3 - Business Combination_6
Note 3 - Business Combinations - Pro Forma Information (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Total revenue | $ 72,437 | $ 70,028 |
Net income (loss) | $ 9,369 | $ (917) |
Note 4 - Fair Value Measureme_3
Note 4 - Fair Value Measurements (Details Textual) $ in Thousands | Feb. 03, 2020USD ($) | Jul. 31, 2021USD ($) | Oct. 31, 2020USD ($) | Jun. 30, 2021USD ($) | Jun. 30, 2020USD ($) | Jun. 30, 2021USD ($) | Jun. 30, 2020USD ($) | Dec. 31, 2020USD ($) |
Debt Securities, Available-for-sale, Total | $ 0 | $ 0 | ||||||
Business Combination, Contingent Consideration Arrangements, Change in Amount of Contingent Consideration, Liability | (13,650) | $ 4,196 | (18,470) | $ (20,326) | ||||
Business Combination, Contingent Consideration, Liability, Total | $ 16,900 | 16,900 | ||||||
Parcus Medical and Arthrosurface Acquisitions [Member] | ||||||||
Business Combination, Contingent Consideration Arrangements, Change in Range of Outcomes, Contingent Consideration, Liability, Value, High | $ 100,000 | |||||||
Parcus Medical and Arthrosurface Acquisitions [Member] | Measurement Input, Discount Rate [Member] | Regulatory Earn Out Milestone [Member] | ||||||||
Business Combination, Contingent Consideration, Liability, Measurement Input | 0.027 | 0.027 | ||||||
Parcus Medical and Arthrosurface Acquisitions [Member] | Measurement Input, Discount Rate [Member] | Minimum [Member] | ||||||||
Business Combination, Contingent Consideration, Liability, Measurement Input | 0.022 | 0.022 | ||||||
Parcus Medical and Arthrosurface Acquisitions [Member] | Measurement Input, Discount Rate [Member] | Maximum [Member] | ||||||||
Business Combination, Contingent Consideration, Liability, Measurement Input | 0.023 | 0.023 | ||||||
Parcus Medical and Arthrosurface Acquisitions [Member] | Measurement Input, Weighted Average Cost of Capital [Member] | ||||||||
Business Combination, Contingent Consideration, Liability, Measurement Input | 11.8 | 11.8 | 11.4 | |||||
Parcus Medical and Arthrosurface Acquisitions [Member] | Measurement Input, Weighted Average Cost of Capital [Member] | Minimum [Member] | Regulatory Earn Out Milestone [Member] | ||||||||
Business Combination, Contingent Consideration, Liability, Measurement Input | 60 | |||||||
Parcus Medical and Arthrosurface Acquisitions [Member] | Measurement Input, Weighted Average Cost of Capital [Member] | Maximum [Member] | Regulatory Earn Out Milestone [Member] | ||||||||
Business Combination, Contingent Consideration, Liability, Measurement Input | 75 | |||||||
Arthrosurface [Member] | ||||||||
Business Combination, Contingent Consideration Arrangements, Change in Range of Outcomes, Contingent Consideration, Liability, Value, High | $ 40,000 | |||||||
Payment for Contingent Consideration Liability, Financing Activities | $ 5,000 | |||||||
Arthrosurface [Member] | Subsequent Event [Member] | ||||||||
Payment for Contingent Consideration Liability, Financing Activities | $ 10,000 | |||||||
Arthrosurface [Member] | Probability of Achievement [Member] | One Regulatory Earn Out Milestone [Member] | ||||||||
Business Combination, Contingent Consideration, Liability, Measurement Input | 100 | 100 | ||||||
Arthrosurface [Member] | Probability of Achievement [Member] | Remaining Regulatory Earn Out Milestones [Member] | ||||||||
Business Combination, Contingent Consideration, Liability, Measurement Input | 0 | 0 | ||||||
US Treasury Bill Securities [Member] | ||||||||
Debt Securities, Available-for-sale, Total | $ 2,500 |
Note 4 - Fair Value Measureme_4
Note 4 - Fair Value Measurements - Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Contingent Consideration - Short Term | $ 16,870 | $ 13,090 |
Contingent Consideration - Long Term | 70 | 22,320 |
Business Combination, Contingent Consideration, Liability, Total | 16,900 | |
Estimate of Fair Value Measurement [Member] | ||
Contingent Consideration - Short Term | 16,870 | 13,090 |
Contingent Consideration - Long Term | 70 | 22,320 |
Business Combination, Contingent Consideration, Liability, Total | 16,940 | 35,410 |
Estimate of Fair Value Measurement [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Contingent Consideration - Short Term | 0 | 0 |
Contingent Consideration - Long Term | 0 | 0 |
Business Combination, Contingent Consideration, Liability, Total | 0 | 0 |
Estimate of Fair Value Measurement [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Contingent Consideration - Short Term | 0 | 0 |
Contingent Consideration - Long Term | 0 | 0 |
Business Combination, Contingent Consideration, Liability, Total | 0 | 0 |
Estimate of Fair Value Measurement [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Contingent Consideration - Short Term | 16,870 | 13,090 |
Contingent Consideration - Long Term | 70 | 22,320 |
Business Combination, Contingent Consideration, Liability, Total | 16,940 | 35,410 |
Reported Value Measurement [Member] | ||
Contingent Consideration - Short Term | 0 | 0 |
Contingent Consideration - Long Term | 0 | 0 |
Business Combination, Contingent Consideration, Liability, Total | 0 | 0 |
Money Market Funds [Member] | Estimate of Fair Value Measurement [Member] | ||
Cash equivalents | 67,038 | 74,522 |
Money Market Funds [Member] | Estimate of Fair Value Measurement [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Cash equivalents | 67,038 | 74,522 |
Money Market Funds [Member] | Estimate of Fair Value Measurement [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Cash equivalents | 0 | 0 |
Money Market Funds [Member] | Estimate of Fair Value Measurement [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Cash equivalents | 0 | 0 |
Money Market Funds [Member] | Reported Value Measurement [Member] | ||
Cash equivalents | $ 67,038 | 74,522 |
US Treasury Securities [Member] | Estimate of Fair Value Measurement [Member] | ||
Investments | 2,501 | |
US Treasury Securities [Member] | Estimate of Fair Value Measurement [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Investments | 2,501 | |
US Treasury Securities [Member] | Estimate of Fair Value Measurement [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Investments | 0 | |
US Treasury Securities [Member] | Estimate of Fair Value Measurement [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Investments | 0 | |
US Treasury Securities [Member] | Reported Value Measurement [Member] | ||
Investments | $ 2,524 |
Note 4 - Fair Value Measureme_5
Note 4 - Fair Value Measurements - Contingent Consideration (Details) - Contingent Consideration [Member] - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended |
Jun. 30, 2021 | Jun. 30, 2021 | |
Balance, beginning | $ 30,590 | $ 35,410 |
Additions | 0 | 0 |
Payments | 0 | 0 |
Change in fair value | (13,650) | (18,470) |
Balance, ending | $ 16,940 | $ 16,940 |
Note 5 - Inventories (Details T
Note 5 - Inventories (Details Textual) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2021 | Jun. 30, 2020 | |
Inventory Write-down | $ 400 | $ 2,404 | $ 3,259 |
Note 5 - Inventories - Summary
Note 5 - Inventories - Summary of Inventories (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Raw materials | $ 14,892 | $ 14,852 |
Work-in-process | 11,818 | 12,811 |
Finished goods | 33,876 | 33,347 |
Total | 60,586 | 61,010 |
Inventories | 42,857 | 46,209 |
Other long-term assets | $ 17,729 | $ 14,801 |
Note 6 - Intangible Assets (Det
Note 6 - Intangible Assets (Details Textual) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Amortization of Intangible Assets, Total | $ 2 | $ 2.2 | $ 3.9 | $ 3.5 |
Note 6 - Intangible Assets - Su
Note 6 - Intangible Assets - Summary of Intangible Assets (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2021 | Dec. 31, 2020 | |
Gross value | $ 112,736 | |
Accumulated Currency Translation Adjustment | (3,027) | |
Accumulated Amortization | (22,625) | |
Net book value | $ 87,084 | $ 91,157 |
Useful life (Year) | 13 years | |
Developed Technology Rights [Member] | ||
Gross value | $ 89,580 | |
Accumulated Currency Translation Adjustment | (1,506) | |
Accumulated Amortization | (14,975) | |
Net book value | $ 73,099 | 75,899 |
Useful life (Year) | 15 years | |
In Process Research and Development [Member] | ||
Gross value | $ 3,256 | |
Accumulated Currency Translation Adjustment | (926) | |
Accumulated Amortization | 0 | |
Net book value | 2,330 | 2,587 |
Customer Relationships [Member] | ||
Gross value | 9,000 | |
Accumulated Currency Translation Adjustment | 0 | |
Accumulated Amortization | (1,277) | |
Net book value | $ 7,723 | 8,173 |
Useful life (Year) | 10 years | |
Distribution Rights [Member] | ||
Gross value | $ 4,700 | |
Accumulated Currency Translation Adjustment | (415) | |
Accumulated Amortization | (4,285) | |
Net book value | $ 0 | 0 |
Useful life (Year) | 5 years | |
Patents [Member] | ||
Gross value | $ 1,000 | |
Accumulated Currency Translation Adjustment | (180) | |
Accumulated Amortization | (607) | |
Net book value | $ 213 | 259 |
Useful life (Year) | 16 years | |
Trade Names [Member] | ||
Gross value | $ 5,200 | |
Accumulated Currency Translation Adjustment | 0 | |
Accumulated Amortization | (1,481) | |
Net book value | $ 3,719 | $ 4,239 |
Useful life (Year) | 5 years |
Note 7 - Goodwill - Changes in
Note 7 - Goodwill - Changes in the Carrying Value of Goodwill (Details) $ in Thousands | 6 Months Ended |
Jun. 30, 2021USD ($) | |
Balance | $ 8,413 |
Effect of foreign currency adjustments | (264) |
Balance | $ 8,149 |
Note 8 - Accrued Expenses and_3
Note 8 - Accrued Expenses and Other Liabilities - Summary of Accrued Expenses (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Compensation and related expenses | $ 7,754 | $ 7,345 |
Professional fees | 2,542 | 3,438 |
Clinical trial costs | 2,604 | 1,429 |
Other | 1,972 | 1,144 |
Total | 16,396 | 14,793 |
Accrued Expenses and Other Current Liabilities [Member] | ||
Operating lease liability - current | $ 1,524 | $ 1,437 |
Note 9 - Commitments and Cont_2
Note 9 - Commitments and Contingencies (Details Textual) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Standard and Extended Product Warranty Accrual, Ending Balance | $ 0 | $ 0 |
Note 10 - Revenue (Details Text
Note 10 - Revenue (Details Textual) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | |
Contract with Customer, Liability, Total | $ 0.9 | $ 0.9 | $ 0.2 | ||
Mitek [Member] | |||||
Revenues From Agreements as Percent of Total Revenue | 46.00% | 54.00% | 44.00% | 54.00% |
Note 10 - Revenue - Product Rev
Note 10 - Revenue - Product Revenue by Product Group (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Revenue | $ 38,145 | $ 30,678 | $ 72,437 | $ 66,075 |
Joint Pain Management Therapies [Member] | ||||
Revenue | 24,321 | 22,247 | 43,637 | 47,730 |
Joint Preservation and Restoration [Member] | ||||
Revenue | 11,884 | 6,622 | 24,103 | 14,518 |
Manufactured Product, Other [Member] | ||||
Revenue | 1,940 | 1,809 | 4,697 | 3,827 |
Product [Member] | ||||
Revenue | $ 38,145 | $ 30,678 | $ 72,437 | $ 66,075 |
Note 10 - Revenue - Total Reven
Note 10 - Revenue - Total Revenue by Geographic Location (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Revenue | $ 38,145 | $ 30,678 | $ 72,437 | $ 66,075 |
Percentage of Revenue | 100.00% | 100.00% | 100.00% | 100.00% |
UNITED STATES | ||||
Revenue | $ 30,069 | $ 25,133 | $ 55,074 | $ 51,438 |
Percentage of Revenue | 79.00% | 82.00% | 76.00% | 78.00% |
Europe [Member] | ||||
Revenue | $ 5,089 | $ 2,910 | $ 10,570 | $ 8,186 |
Percentage of Revenue | 13.00% | 9.00% | 15.00% | 12.00% |
Other Location [Member] | ||||
Revenue | $ 2,987 | $ 2,635 | $ 6,793 | $ 6,451 |
Percentage of Revenue | 8.00% | 9.00% | 9.00% | 10.00% |
Note 11 - Equity Incentive Pl_3
Note 11 - Equity Incentive Plan (Details Textual) - The 2017 Plan [Member] - shares shares in Millions | Jun. 18, 2019 | Jun. 17, 2019 |
Share-based Compensation Arrangement by Share-based Payment Award, Number of Additional Shares Authorized (in shares) | 1.1 | |
Common Stock, Capital Shares Reserved for Future Issuance (in shares) | 4.6 | 3.5 |
Note 11 - Equity Incentive Pl_4
Note 11 - Equity Incentive Plan - Total Stock-based Compensation Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Stock-based compensation expense | $ 2,797 | $ 2,240 | $ 5,056 | $ 2,033 |
Cost of Sales [Member] | ||||
Stock-based compensation expense | 214 | 216 | 343 | 362 |
Research and Development Expense [Member] | ||||
Stock-based compensation expense | 402 | 156 | 643 | 352 |
Selling, General and Administrative Expenses [Member] | ||||
Stock-based compensation expense | $ 2,181 | $ 1,868 | $ 4,070 | $ 1,319 |
Note 12 - Income Taxes (Details
Note 12 - Income Taxes (Details Textual) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Income Tax Expense (Benefit), Total | $ 2,599 | $ (1,997) | $ 976 | $ (417) |
Effective Income Tax Rate Reconciliation, Percent, Total | 28.50% | 20.60% | 9.40% | 17.90% |
Effective Income Tax Rate Reconciliation,Change in Fair Value of Business Acquisition Contingent Consideration Liabilities, Amount | $ 700 | $ 1,100 |
Note 13 - Earnings Per Share _3
Note 13 - Earnings Per Share ("EPS") (Details Textual) - shares shares in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Share-based Payment Arrangement, Option [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount (in shares) | 1 | 1 | 1.1 | 0.9 |
Note 13 - Earnings Per Share _4
Note 13 - Earnings Per Share ("EPS") - Basic and Diluted Earnings Per Share (Details) - shares shares in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Basic (in shares) | 14,393 | 14,199 | 14,368 | 14,201 |
Share based awards (in shares) | 234 | 0 | 215 | 0 |
Diluted shares used in the calculation of EPS (in shares) | 14,627 | 14,199 | 14,583 | 14,201 |