Document And Entity Information
Document And Entity Information - shares | 6 Months Ended | |
Jun. 30, 2023 | Jul. 28, 2023 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2023 | |
Document Transition Report | false | |
Entity File Number | 001-33092 | |
Entity Registrant Name | LEMAITRE VASCULAR, INC. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 04-2825458 | |
Entity Address, Address Line One | 63 Second Avenue | |
Entity Address, City or Town | Burlington | |
Entity Address, State or Province | MA | |
Entity Address, Postal Zip Code | 01803 | |
City Area Code | 781 | |
Local Phone Number | 221-2266 | |
Title of 12(b) Security | Common stock, $0.01 par value per share | |
Trading Symbol | LMAT | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding (in shares) | 22,263,143 | |
Entity Central Index Key | 0001158895 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false |
Consolidated Balance Sheets (Cu
Consolidated Balance Sheets (Current Period Unaudited) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Current assets: | ||
Cash and cash equivalents | $ 19,488 | $ 19,134 |
Short-term marketable securities | 70,689 | 63,557 |
Accounts receivable, net of allowances of $840 at June 30, 2023 and $835 at December 31, 2022 | 26,406 | 22,040 |
Inventory and other deferred costs | 53,831 | 50,271 |
Prepaid expenses and other current assets | 4,076 | 6,731 |
Total current assets | 174,490 | 161,733 |
Property and equipment, net | 21,217 | 17,901 |
Right-of-use leased assets | 15,804 | 15,634 |
Goodwill | 65,945 | 65,945 |
Other intangibles, net | 43,999 | 46,527 |
Deferred tax assets | 2,081 | 1,745 |
Other assets | 2,931 | 991 |
Total assets | 326,467 | 310,476 |
Current liabilities: | ||
Accounts payable | 3,519 | 2,903 |
Accrued expenses | 19,327 | 19,967 |
Acquisition-related obligations | 651 | 573 |
Lease liabilities - short-term | 2,358 | 1,886 |
Total current liabilities | 25,855 | 25,329 |
Lease liabilities - long-term | 14,449 | 14,710 |
Deferred tax liabilities | 72 | 69 |
Other long-term liabilities | 2,264 | 2,167 |
Total liabilities | 42,640 | 42,275 |
Stockholders’ equity: | ||
Preferred stock, $0.01 par value; authorized 3,000,000 shares; none outstanding | 0 | 0 |
Common stock, $0.01 par value; authorized 37,000,000 shares; issued 23,835,491shares at June 30, 2023, and 23,655,716 shares at December 31, 2022 | 239 | 237 |
Additional paid-in capital | 196,941 | 189,268 |
Retained earnings | 105,696 | 97,773 |
Accumulated other comprehensive loss | (5,822) | (6,031) |
Treasury stock, at cost; 1,572,348 shares at June 30, 2023 and 1,568,595 shares at December 31, 2022 | (13,227) | (13,046) |
Total stockholders’ equity | 283,827 | 268,201 |
Total liabilities and stockholders’ equity | $ 326,467 | $ 310,476 |
Consolidated Balance Sheets (_2
Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Accounts receivable, allowances | $ 840 | $ 835 |
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (in shares) | 3,000,000 | 3,000,000 |
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) | 37,000,000 | 37,000,000 |
Common stock, shares issued (in shares) | 23,835,491 | 23,655,716 |
Treasury stock, shares (in shares) | 1,572,348 | 1,568,595 |
Consolidated Statements of Oper
Consolidated Statements of Operations (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Net sales | $ 50,115 | $ 42,108 | $ 97,190 | $ 81,669 |
Cost of sales | 18,029 | 14,298 | 34,221 | 27,897 |
Gross profit | 32,086 | 27,810 | 62,969 | 53,772 |
Sales and marketing | 10,216 | 8,242 | 21,113 | 16,092 |
General and administrative | 7,722 | 7,331 | 15,654 | 14,583 |
Research and development | 4,516 | 3,346 | 8,391 | 6,278 |
Restructuring | 180 | 3,107 | 485 | 3,107 |
Total operating expenses | 22,634 | 22,026 | 45,643 | 40,060 |
Income from operations | 9,452 | 5,784 | 17,326 | 13,712 |
Other income (expense): | ||||
Interest income | 682 | 167 | 1,250 | 275 |
Foreign currency loss | 185 | (403) | (240) | (443) |
Income before income taxes | 10,319 | 5,548 | 18,336 | 13,544 |
Provision for income taxes | 2,221 | 2,033 | 4,198 | 3,991 |
Net income | $ 8,098 | $ 3,515 | $ 14,138 | $ 9,553 |
Earnings per share of common stock: | ||||
Basic (in dollars per share) | $ 0.36 | $ 0.16 | $ 0.64 | $ 0.44 |
Diluted (in dollars per share) | $ 0.36 | $ 0.16 | $ 0.63 | $ 0.43 |
Weighted-average shares outstanding: | ||||
Basic (in shares) | 22,213 | 21,958 | 22,162 | 21,947 |
Diluted (in shares) | 22,451 | 22,129 | 22,371 | 22,115 |
Cash dividends declared per common share (in dollars per share) | $ 0.140 | $ 0.125 | $ 0.280 | $ 0.250 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Net income | $ 8,098 | $ 3,515 | $ 14,138 | $ 9,553 |
Other comprehensive income (loss): | ||||
Foreign currency translation adjustment, net | 89 | (1,226) | 341 | (1,526) |
Unrealized gain (loss) on short-term marketable securities | (339) | (594) | (132) | (1,483) |
Total other comprehensive income (loss) | (250) | (1,820) | 209 | (3,009) |
Comprehensive income | $ 7,848 | $ 1,695 | $ 14,347 | $ 6,544 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity (Unaudited) - USD ($) $ in Thousands | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | AOCI Attributable to Parent [Member] | Treasury Stock, Common [Member] | Total |
Balance (in shares) at Dec. 31, 2021 | 23,477,784 | 1,554,905 | ||||
Balance at Dec. 31, 2021 | $ 235 | $ 181,630 | $ 88,125 | $ (3,435) | $ (12,404) | $ 254,151 |
Net income | 6,038 | 6,038 | ||||
Other comprehensive income (loss) | (1,189) | (1,189) | ||||
Issuance of common stock for stock options exercised (in shares) | 24,917 | |||||
Issuance of common stock for stock options exercised | $ 0 | 508 | $ 508 | |||
Vested restricted stock units (in shares) | 7,158 | 0 | ||||
Vested restricted stock units | $ 0 | $ 0 | ||||
Stock-based compensation expense | 1,167 | 1,167 | ||||
Repurchase of common stock for net settlement of equity awards (in shares) | 3,016 | |||||
Repurchase of common stock for net settlement of equity awards | $ 145 | 145 | ||||
Common stock dividend paid | (2,743) | (2,743) | ||||
Repurchase of common stock for net settlement of equity awards | $ (145) | (145) | ||||
Balance (in shares) at Mar. 31, 2022 | 23,509,859 | 1,557,921 | ||||
Balance at Mar. 31, 2022 | $ 235 | 183,305 | 91,420 | (4,624) | $ (12,549) | 257,787 |
Balance (in shares) at Dec. 31, 2021 | 23,477,784 | 1,554,905 | ||||
Balance at Dec. 31, 2021 | $ 235 | 181,630 | 88,125 | (3,435) | $ (12,404) | 254,151 |
Net income | 9,553 | |||||
Other comprehensive income (loss) | (3,009) | |||||
Balance (in shares) at Jun. 30, 2022 | 23,520,888 | 1,558,019 | ||||
Balance at Jun. 30, 2022 | $ 235 | 184,605 | 92,190 | (6,444) | $ (12,553) | 258,033 |
Balance (in shares) at Mar. 31, 2022 | 23,509,859 | 1,557,921 | ||||
Balance at Mar. 31, 2022 | $ 235 | 183,305 | 91,420 | (4,624) | $ (12,549) | 257,787 |
Net income | 3,515 | 3,515 | ||||
Other comprehensive income (loss) | (1,820) | (1,820) | ||||
Issuance of common stock for stock options exercised (in shares) | 10,808 | |||||
Issuance of common stock for stock options exercised | $ 0 | 164 | 164 | |||
Vested restricted stock units (in shares) | 221 | |||||
Vested restricted stock units | $ 0 | 0 | ||||
Stock-based compensation expense | 1,136 | 1,136 | ||||
Repurchase of common stock for net settlement of equity awards (in shares) | 98 | |||||
Repurchase of common stock for net settlement of equity awards | $ 4 | 4 | ||||
Common stock dividend paid | (2,745) | (2,745) | ||||
Repurchase of common stock for net settlement of equity awards | $ (4) | (4) | ||||
Balance (in shares) at Jun. 30, 2022 | 23,520,888 | 1,558,019 | ||||
Balance at Jun. 30, 2022 | $ 235 | 184,605 | 92,190 | (6,444) | $ (12,553) | 258,033 |
Balance (in shares) at Dec. 31, 2022 | 23,655,716 | 1,568,595 | ||||
Balance at Dec. 31, 2022 | $ 237 | 189,268 | 97,773 | (6,031) | $ (13,046) | 268,201 |
Net income | 6,040 | 6,040 | ||||
Other comprehensive income (loss) | 459 | 459 | ||||
Issuance of common stock for stock options exercised (in shares) | 50,424 | |||||
Issuance of common stock for stock options exercised | $ 1 | 1,445 | $ 1,446 | |||
Vested restricted stock units (in shares) | 8,773 | 0 | ||||
Vested restricted stock units | $ 0 | $ 0 | ||||
Stock-based compensation expense | 1,290 | 1,290 | ||||
Repurchase of common stock for net settlement of equity awards (in shares) | 3,602 | |||||
Repurchase of common stock for net settlement of equity awards | $ 172 | 172 | ||||
Common stock dividend paid | (3,099) | (3,099) | ||||
Repurchase of common stock for net settlement of equity awards | $ (172) | (172) | ||||
Balance (in shares) at Mar. 31, 2023 | 23,714,913 | 1,572,197 | ||||
Balance at Mar. 31, 2023 | $ 238 | 192,003 | 100,714 | (5,572) | $ (13,218) | 274,165 |
Balance (in shares) at Dec. 31, 2022 | 23,655,716 | 1,568,595 | ||||
Balance at Dec. 31, 2022 | $ 237 | 189,268 | 97,773 | (6,031) | $ (13,046) | 268,201 |
Net income | 14,138 | |||||
Other comprehensive income (loss) | 209 | |||||
Balance (in shares) at Jun. 30, 2023 | 23,835,491 | 1,572,348 | ||||
Balance at Jun. 30, 2023 | $ 239 | 196,941 | 105,696 | (5,822) | $ (13,227) | 283,827 |
Balance (in shares) at Mar. 31, 2023 | 23,714,913 | 1,572,197 | ||||
Balance at Mar. 31, 2023 | $ 238 | 192,003 | 100,714 | (5,572) | $ (13,218) | 274,165 |
Net income | 8,098 | 8,098 | ||||
Other comprehensive income (loss) | (250) | (250) | ||||
Issuance of common stock for stock options exercised (in shares) | 120,179 | |||||
Issuance of common stock for stock options exercised | $ 1 | 3,626 | 3,627 | |||
Vested restricted stock units (in shares) | 399 | |||||
Vested restricted stock units | 0 | |||||
Stock-based compensation expense | 1,312 | 1,312 | ||||
Repurchase of common stock for net settlement of equity awards (in shares) | 151 | |||||
Repurchase of common stock for net settlement of equity awards | $ 9 | 9 | ||||
Common stock dividend paid | (3,116) | (3,116) | ||||
Repurchase of common stock for net settlement of equity awards | $ (9) | (9) | ||||
Balance (in shares) at Jun. 30, 2023 | 23,835,491 | 1,572,348 | ||||
Balance at Jun. 30, 2023 | $ 239 | $ 196,941 | $ 105,696 | $ (5,822) | $ (13,227) | $ 283,827 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Operating activities | ||
Net income | $ 14,138 | $ 9,553 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 4,677 | 4,817 |
Stock-based compensation | 2,602 | 2,303 |
Fair value adjustment to contingent consideration obligations | 48 | (54) |
Provision for doubtful accounts | (27) | 141 |
Provision for inventory write-downs | 834 | 1,671 |
Loss on disposal of property and equipment | 0 | 95 |
Loss on divestitures | 485 | 1,954 |
Foreign currency transaction loss | 1 | (919) |
Changes in operating assets and liabilities: | ||
Accounts receivable | (4,239) | (2,610) |
Inventory and other deferred costs | (4,272) | (3,536) |
Prepaid expenses and other assets | 922 | 403 |
Accounts payable and other liabilities | (987) | 141 |
Net cash provided by operating activities | 14,182 | 13,959 |
Investing activities | ||
Purchases of property and equipment and other assets | (4,933) | (1,509) |
Payments related to acquisitions | (431) | 0 |
Purchases of short-term marketable securities | (7,239) | 0 |
Net cash used in investing activities | (12,603) | (1,509) |
Financing activities | ||
Proceeds from issuance of common stock | 5,073 | 672 |
Purchase of treasury stock for net settlement of equity awards | (181) | (149) |
Common stock cash dividend paid | (6,215) | (5,488) |
Net cash used in financing activities | (1,323) | (4,965) |
Effect of exchange rate changes on cash and cash equivalents | 98 | (552) |
Net increase (decrease) in cash and cash equivalents | 354 | 6,933 |
Cash and cash equivalents at beginning of period | 19,134 | 13,855 |
Cash and cash equivalents at end of period | $ 19,488 | $ 20,788 |
Note 1 - Organization and Basis
Note 1 - Organization and Basis for Presentation | 6 Months Ended |
Jun. 30, 2023 | |
Notes to Financial Statements | |
Significant Accounting Policies [Text Block] | 1. Organization and Basis for Presentation Description of Business Unless the context requires otherwise, references to LeMaitre, LeMaitre Vascular, we, our, and us refer to LeMaitre Vascular, Inc. and our subsidiaries. We develop, manufacture, and market medical devices and implants used primarily in the field of vascular surgery. We also derive revenues from the processing and cryopreservation of human tissues for implantation in patients. We operate in a single segment in which our principal product lines include the following: anastomotic clips, angioscopes, biologic vascular and dialysis grafts, biologic vascular and cardiac patches, carotid shunts, embolectomy catheters, occlusion catheters, radiopaque marking tape, synthetic vascular grafts, and valvulotomes. Our offices and production facilities are located in Burlington, Massachusetts; Fox River Grove, Illinois; North Brunswick, New Jersey; Chandler, Arizona; Vaughan, Canada; Sulzbach, Germany; Milan, Italy; Madrid, Spain; Hereford, England; Dublin, Ireland; Kensington, Australia; Tokyo, Japan; Shanghai, China; Singapore; Seoul, Korea; and Bangkok, Thailand. Basis of Presentation The accompanying unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (GAAP) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of management, all adjustments, consisting only of normal, recurring adjustments considered necessary for a fair presentation of the results of these interim periods have been included. Preparing financial statements requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses. Actual results may differ from these estimates. Our estimates and assumptions, including those related to bad debts, inventories, intangible assets, sales returns and discounts, share-based compensation, and income taxes are updated as appropriate. The results for the six months ended June 30, 2023 are not necessarily indicative of results to be expected for the entire year. The information contained in these interim financial statements should be read in conjunction with our audited consolidated financial statements as of and for the year ended December 31, 2022, including the notes thereto, included in our Form 10-K filed with the Securities and Exchange Commission (SEC) on March 1, 2023. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the unaudited consolidated financial statements and accompanying notes. The Company is not aware of any specific event or circumstance that would require an update to its accounting estimates or adjustments to the carrying value of its assets and liabilities as of August 8, 2023, the issuance date of this Quarterly Report on Form 10-Q. Actual results could differ from those estimates. Consolidation Our consolidated financial statements include the accounts of LeMaitre Vascular and the accounts of our wholly-owned subsidiaries. All significant intercompany accounts and transactions have been eliminated in consolidation. Revenue Recognition Our revenue is derived primarily from the sale of disposable or implantable devices used during vascular surgery. We sell primarily direct to hospitals and to a lesser extent to international distributors, as described below, and, during the periods presented in our consolidated financial statements, entered into consigned inventory arrangements with either hospitals or distributors on a limited basis. We also derive revenues from the processing and cryopreservation of human tissues for implantation in patients. These revenues are recognized when services have been provided and the tissue has been shipped to the customer, provided all other revenue recognition criteria discussed in the succeeding paragraph have been met. We record revenue under the provisions of ASU 2014-09, Revenue from Contracts with Customers (Topic 606) Step 1: Identify the contract with a customer Step 2: Identify the performance obligations in the contract Step 3: Determine the transaction price Step 4: Allocate the transaction price to the performance obligations Step 5: Recognize revenue when or as the entity satisfies a performance obligation Revenue is recognized when or as a company satisfies a performance obligation by transferring a promised good or service to a customer (which is when the customer obtains control of that good or service). In instances in which shipping and handling activities are performed after a customer takes control of the goods (such as when title passes upon shipment from our dock), we have made the policy election allowed under Topic 606 to account for these activities as fulfillment costs and not as performance obligations. We generally reference customer purchase orders to determine the existence of a contract. Orders that are not accompanied by a purchase order are confirmed with the customer either in writing or verbally. The purchase orders or similar correspondence, once accepted, identify the performance obligations as well as the transaction price, and otherwise outline the rights and obligations of each party. We allocate the transaction price of each contract among the performance obligations in accordance with the pricing of each item specified on the purchase order, which is in turn based on standalone selling prices per our published price lists. In cases where we discount products or provide certain items free of charge, we allocate the discount proportionately to all performance obligations, unless it can be demonstrated that the discount should be allocated entirely to one or more, but not all, of the performance obligations. We record revenue, net of allowances for returns and discounts, fees paid to group purchasing organizations, and any sales and value added taxes required to be invoiced, which we have elected to exclude from the measurement of the transaction price as allowed by the standard, at the time of shipment (taking into consideration contractual shipping terms), or in the case of consigned inventory, when it is consumed. Shipment is the point at which control of the product and title passes to our customers, and at which LeMaitre has a present right to receive payment for the goods. Below is a disaggregation of our revenue by major geographic area, which is among the primary categorizations used by management in evaluating financial performance, for the periods indicated (in thousands): Three months ended June 30, Six months ended June 30, 2023 2022 2023 2022 ($ in thousands) ($ in thousands) Americas $ 33,507 $ 28,854 $ 65,633 $ 55,397 Europe, Middle East and Africa 13,580 10,749 25,857 21,243 Asia Pacific 3,028 2,505 5,700 5,029 Total $ 50,115 $ 42,108 $ 97,190 $ 81,669 We do not carry any contract assets or contract liabilities, as there are generally no unbilled amounts due from customers under contracts for which we have partially satisfied performance obligations, or amounts received from customers for which we have not satisfied performance obligations. We satisfy our performance obligations under revenue contracts within a very short time period from receipt of the orders, and payments from customers are typically received within 30 to 60 days of fulfillment of the orders, except in certain geographies such as Italy, Spain and France where the payment cycle is customarily longer. Accordingly, there is no significant financing component to our revenue contracts. Additionally, we have elected as a policy that incremental costs (such as commissions) incurred to obtain contracts are expensed as incurred, due to the short-term nature of the contracts. Customers returning products may be entitled to full or partial credit based on the condition and timing of the return. To be accepted, a returned product must be unopened (if sterile), unadulterated, and undamaged, must have at least 18 months remaining prior to its expiration date, or twelve months for our hospital customers in Europe, and generally be returned within 30 days of shipment. These return policies apply to sales to both hospitals and distributors. The amount of products returned to us, either for exchange or credit, has not been material. Nevertheless, we provide for an allowance for future sales returns based on historical returns experience, which requires judgment. Our cost of replacing defective products has not been material and is accounted for at the time of replacement. Recent Accounting Pronouncements From time to time, new accounting pronouncements are issued by the Financial Accounting Standards Board (FASB) or other standard setting bodies and are generally adopted by the Company as of the specified effective date. Unless otherwise discussed, the Company believes that the impact of recently issued standards that are not yet effective will not have a material impact on its financial position or results of operations upon adoption. |
Note 2 - Income Tax Expense
Note 2 - Income Tax Expense | 6 Months Ended |
Jun. 30, 2023 | |
Notes to Financial Statements | |
Income Tax Disclosure [Text Block] | 2. Income Tax Expense As part of the process of preparing our consolidated financial statements we are required to determine our income taxes in each of the jurisdictions in which we operate. This process involves estimating our actual current tax expense together with assessing temporary differences resulting from recognition of items for income tax and accounting purposes. These differences result in deferred tax assets and liabilities, which are included within our consolidated balance sheet. We must then assess the likelihood that our deferred tax assets will be recovered from taxable income during the carryback period or in the future; and to the extent we believe that recovery is not more likely than not, we must establish a valuation allowance. To the extent we establish a valuation allowance or increase this allowance in a period, we must reflect this increase as an expense within the tax provision in the statement of operations. We do not provide for income taxes on undistributed earnings of certain foreign subsidiaries, as our intention is to permanently reinvest these earnings. We recognize, measure, present and disclose in our financial statements any uncertain tax positions that we have taken, or expect to take on a tax return. We operate in multiple taxing jurisdictions, both inside and outside the United States, and may be subject to audits from various tax authorities. Management’s judgment is required in determining our provision for income taxes, our deferred tax assets and liabilities, liabilities for uncertain tax positions, and any valuation allowance recorded against our net deferred tax assets. We will monitor the realizability of our deferred tax assets and adjust the valuation allowance accordingly. Our policy is to classify interest and penalties related to unrecognized tax benefits as income tax expense. Our 2023 income tax expense varies from the statutory rate mainly due to the generation of federal and state tax credits, permanent items, different statutory rates from our foreign subsidiaries, and discrete stock option exercises. Our 2022 income tax expense varied from the statutory rate mainly due to the generation of federal and state tax credits, permanent items, and different statutory rates from our foreign subsidiaries. We have reviewed the tax positions taken, or to be taken, in our tax returns for all tax years currently open to examination by a taxing authority. As of June 30, 2023, the gross amount of unrecognized tax benefits exclusive of interest and penalties was $580,000. We remain subject to examination until the statute of limitations expires for each remaining respective tax jurisdiction. The statute of limitations will be open with respect to these tax positions until 2030. A reconciliation of beginning and ending amount of our unrecognized tax benefits is as follows: Six months ended June 30, 2023 (in thousands) Unrecognized tax benefits as of December 31, 2022 $ 612 Additions/adjustments for tax positions of current year - Additions/adjustments for tax positions of prior years (32 ) Reductions for settlements with taxing authorities - Reductions for lapses of the applicable statutes of limitations - Unrecognized tax benefits as of June 30, 2023 $ 580 As of June 30, 2023, a summary of the tax years that remain subject to examination in our taxing jurisdictions is as follows: United States 2019 and forward Foreign 2015 and forward |
Note 3 - Inventories and Other
Note 3 - Inventories and Other Deferred Costs | 6 Months Ended |
Jun. 30, 2023 | |
Notes to Financial Statements | |
Inventory and Other Deferred Costs Disclosure [Text Block] | 3. Inventories and Other Deferred Costs Inventories and other deferred costs consist of the following: June 30, 2023 December 31, 2022 (in thousands) Raw materials $ 18,174 $ 14,929 Work-in-process 3,775 3,662 Finished products 27,151 26,688 Other deferred costs 4,731 4,992 Total inventory and other deferred costs $ 53,831 $ 50,271 We had inventory on consignment at customer sites of $1.8 million and $1.5 million at June 30, 2023 and December 31, 2022, respectively. In connection with our RestoreFlow allograft business, other deferred costs include costs incurred for the preservation of human tissues available for shipment, tissues currently in active processing, and tissues held in quarantine pending release to implantable status. By federal law, human tissues cannot be bought or sold. Therefore, the tissues we preserve are not held as inventory, and the costs we incur to procure and process vascular and cardiac tissues are instead accumulated and deferred. These costs include fixed and variable overhead costs associated with the cryopreservation process, including primarily direct labor costs, tissue recovery fees, inbound freight charges, indirect materials and facilities costs. General and administrative expenses and selling expenses associated with the provision of these services are expensed as incurred. |
Note 4 - Divestitures
Note 4 - Divestitures | 6 Months Ended |
Jun. 30, 2023 | |
Notes to Financial Statements | |
Restructuring and Related Activities Disclosure [Text Block] | 4. Divestitures On April 26, 2022, we committed to a plan to close our St. Etienne, France factory, which supported our LeMaitre Cardial SAS (Cardial) business, in order to streamline manufacturing operations and reduce expenses. The Cardial business consisted of the manufacture of polyester vascular grafts, valvulotomes, surgical glue and selected OEM devices. We acquired the Cardial business in 2018. On June 30, 2022, we ceased operations at the St. Etienne, France factory. The closure resulted in a restructuring charge of $3.1 million for the year ended December 31, 2022. Charges primarily consisted of employment termination costs, impairment of fixed assets and inventory, and third-party costs. On October 10, 2022, we sold the St. Etienne, France building, building improvements, and land for $0.9 million less closing costs of $0.1 million, resulting in a gain of approximately $0.1 million recorded for the three months ended December 31, 2022. During the six months ended June 30, 2023, we recorded additional restructuring charges of $0.5 million in conjunction with the St. Etienne, France factory closure. The additional charges consisted primarily of employment termination, settlement costs, legal costs and other third-party costs. |
Note 5 - Goodwill and Other Int
Note 5 - Goodwill and Other Intangible Assets | 6 Months Ended |
Jun. 30, 2023 | |
Notes to Financial Statements | |
Goodwill and Intangible Assets Disclosure [Text Block] | 5. Goodwill and Other Intangible Assets There was no change to goodwill during the six months ended June 30, 2023. Other intangible assets consist of the following: June 30, 2023 December 31, 2022 Gross Net Gross Net Carrying Accumulated Carrying Carrying Accumulated Carrying Value Amortization Value Value Amortization Value (in thousands) Product technology and intellectual property $ 29,549 $ 14,701 $ 14,848 $ 29,549 $ 13,319 $ 16,230 Trademarks, tradenames and licenses 3,767 1,727 2,040 3,647 1,533 2,114 Customer relationships 36,542 9,706 26,836 36,197 8,359 27,838 Other intangible assets 1,536 1,261 275 1,461 1,116 345 Total identifiable intangible assets $ 71,394 $ 27,395 $ 43,999 $ 70,854 $ 24,327 $ 46,527 These assets are being amortized over useful lives ranging from 2 to 16 years. The weighted-average amortization period for these intangibles as of June 30, 2023 is 10.3 years. Amortization expense is included in general and administrative expense and was as follows for the periods indicated. Three months ended June 30, Six months ended June 30, 2023 2022 2023 2022 (in thousands) (in thousands) Amortization expense $ 1,509 $ 1,596 $ 3,068 $ 3,112 We estimate that amortization expense for the remainder of 2023 and for each of the five succeeding fiscal years will be as follows: Year ended December 31, 2023 2024 2025 2026 2027 2028 (in thousands) Amortization expense $ 2,980 $ 5,772 $ 5,440 $ 5,041 $ 4,764 $ 4,378 |
Note 6 - Leases
Note 6 - Leases | 6 Months Ended |
Jun. 30, 2023 | |
Notes to Financial Statements | |
Lessee, Operating Leases [Text Block] | 6. Leases We conduct the majority of our operations in leased facilities, all of which are accounted for as operating leases, as they do not meet the criteria for finance leases. Our principal worldwide executive, distribution, and manufacturing operations are located in five leased facilities with square footage totaling 109,354 in Burlington, Massachusetts. All five Burlington leases expire in December 2030. In connection with our acquisition of the Artegraft biologic graft business, we assumed a 16,732 square foot lease in North Brunswick, New Jersey, which expires in October 2029. In connection with our acquisition of the RestoreFlow allografts business, we acquired three leases in Fox River Grove, IL totaling 11,765 square feet. Prior to 2023, the leases had been on 6-month renewal options. In 2023, we extended each of the leases through November 2025. These Fox River Grove leases contain two-year renewal options. Our European operations are headquartered at a 21,410 square foot leased facility located in Sulzbach, Germany. In June 2022, we increased our square footage by 4,940 (from 16,470) five-year Our Asia Pacific operations are headquartered at a 1,270 square foot leased facility located in Singapore. In June 2023, we extended our Singapore lease by one-year to expire in June 2024. In May 2022, we signed a lease in Seoul, Korea, which includes 2,300 square feet of office and warehouse space, and expires in April 2027. In June 2023, we signed a new lease in Bangkok, Thailand, which includes 2,810 square feet of office and warehouse space. The lease commences in August 2023 and is a three-year term. We have smaller long-term leased sales, marketing and other facilities located in Arizona, Canada, Australia, and China, and short-term leases in Ireland, Japan, and Spain. In August 2022, the lease in Arizona was extended for an additional three two three three no We lease automobiles under operating leases in the United States as well as certain of our international subsidiaries. The terms of these leases are generally three five-year We account for leases under the provisions of ASU No. 2016-02, Leases (Topic , Leases (Topic 842): Targeted Improvements Our most significant judgement involved in determining the amounts to initially record as lease liabilities and right-of-use assets upon initial adoption of this standard, and for leases entered into subsequently, was the selection of a discount rate; because we had no debt as of the adoption of this standard, we had no incremental borrowing rate to reference. We therefore derived an incremental borrowing rate using quotes from potential lenders as the primary inputs, augmented by other available information. The resulting rate selected was 5.25%. We determined that it was appropriate to apply this single rate to our portfolio of leases worldwide, as the lease terms and conditions are substantially similar, and because we believe our subsidiaries would be unable to obtain borrowings on their own without a commitment of parent company support. In connection with the assumption of the Artegraft North Brunswick, New Jersey lease, we used LeMaitre’s borrowing rate of 3.5% as of the acquisition date associated with debt incurred to finance the acquisition to value the lease. Subsequently, we have adjusted the selection of a discount rate for any new or renewed lease agreements based upon a derived incremental borrowing rate using quotes from potential lenders as the primary inputs as of the effective date of the new or renewed lease. Additional information with respect to our leases is as follows: Three months ended June 30, Six months ended June 30, 2023 2022 2023 2022 (in thousands) (in thousands) (in thousands) (in thousands) Lease cost Operating lease cost $ 564 $ 638 $ 1,144 $ 1,163 Short-term lease cost 158 161 320 324 Total lease cost $ 722 $ 799 $ 1,464 $ 1,487 Other information Cash paid for amounts included in the measurement of operating lease liabilities $ 729 $ 810 $ 1,466 $ 1,484 Right-of-use assets obtained in exchange for new operating lease liabilities $ 841 $ 2,240 $ 1,313 $ 2,381 Weighted average remaining lease term - operating leases (in years) 6.8 8.2 Weighted average discount rate - operating leases 5.07 % 4.88 % At June 30, 2023, the minimum non-cancelable operating lease rental commitments with initial or remaining terms of more than one year are as follows: Remainder of 2023 $ 1,651 Year ending December 31, 2024 3,231 2025 3,060 2026 2,556 2027 2,431 2028 2,398 Thereafter 4,601 Adjustment to net present value as of June 30, 2023 (3,121 ) Minimum noncancelable lease liability $ 16,807 |
Note 7 - Accrued Expenses and O
Note 7 - Accrued Expenses and Other Long-term Liabilities | 6 Months Ended |
Jun. 30, 2023 | |
Notes to Financial Statements | |
Accounts Payable, Accrued Liabilities, and Other Liabilities Disclosure, Noncurrent [Text Block] | 7. Accrued Expenses and Other Long-term Liabilities Accrued expenses consist of the following: June 30, 2023 December 31, 2022 (in thousands) Compensation and related taxes $ 9,103 $ 10,770 Accrued purchases 6,277 3,748 Accrued expenses 3,132 4,640 Income and other taxes 421 449 Professional fees 121 108 Other 273 252 Total $ 19,327 $ 19,967 Other long-term liabilities consist of the following: June 30, 2023 December 31, 2022 (in thousands) Acquisition-related liabilities $ 1,486 $ 1,354 Income taxes 578 636 Other 200 177 Total $ 2,264 $ 2,167 |
Note 8 - Segment and Enterprise
Note 8 - Segment and Enterprise-wide Disclosures | 6 Months Ended |
Jun. 30, 2023 | |
Notes to Financial Statements | |
Segment Reporting Disclosure [Text Block] | 8. Segment and Enterprise-Wide Disclosures The FASB establishes standards for reporting information regarding operating segments in financial statements. Operating segments are identified as components of an enterprise that engage in business activities for which separate, discrete financial information is available and is regularly reviewed by the chief operating decision-maker in making decisions on how to allocate resources and assess performance. We view our operations and manage our business as one Most of our revenues are generated in the United States, Germany, the United Kingdom and other European countries, Canada, and Japan, and substantially all of our assets are located in the United States and Germany. Net sales to unaffiliated customers by country were as follows: Three months ended Six months ended June 30, June 30, 2023 2022 2023 2022 (in thousands) (in thousands) United States $ 30,322 $ 26,228 $ 59,337 $ 50,492 Germany 3,583 2,870 6,929 5,861 Canada 2,716 2,269 5,478 4,178 Other countries 13,494 10,741 25,446 21,138 Net Sales $ 50,115 $ 42,108 $ 97,190 $ 81,669 |
Note 9 - Share-based Compensati
Note 9 - Share-based Compensation | 6 Months Ended |
Jun. 30, 2023 | |
Notes to Financial Statements | |
Share-Based Payment Arrangement [Text Block] | 9. Share-based Compensation Our Third Amended and Restated 2006 Stock Option and Incentive Plan allows for granting of incentive stock options, non-qualified stock options, stock appreciation rights, restricted stock units, performance-based restricted stock units, unrestricted stock awards, and deferred stock awards to our officers, employees, directors and consultants. The components of share-based compensation expense were as follows: Three months ended Six months ended June 30, June 30, 2023 2022 2023 2022 (in thousands) (in thousands) Stock option awards $ 671 $ 607 $ 1,333 $ 1,226 Restricted stock units 485 391 962 799 Performance-based restricted stock units 156 138 307 278 Total share-based compensation $ 1,312 $ 1,136 $ 2,602 $ 2,303 Stock-based compensation is included in our statements of operations as follows: Three months ended Six months ended June 30, June 30, 2023 2022 2023 2022 (in thousands) (in thousands) Cost of sales $ 166 $ 135 $ 336 $ 273 Sales and marketing 250 193 464 402 General and administrative 768 695 1,545 1,407 Research and development 128 113 257 221 Total stock-based compensation $ 1,312 $ 1,136 $ 2,602 $ 2,303 During the six months ended June 30, 2023 and 2022, we granted options for the purchase of 1,660 and 984 shares of our common stock, we granted restricted stock units of 765 and 320, and granted performance-based restricted stock units of 310 and 250, respectively. We issued approximately 180,000 and 43,000 shares of common stock following the exercise or vesting of underlying stock options or restricted stock units during the six months ended June 30, 2023 and 2022, respectively. |
Note 10 - Net Income Per Share
Note 10 - Net Income Per Share | 6 Months Ended |
Jun. 30, 2023 | |
Notes to Financial Statements | |
Earnings Per Share [Text Block] | 10. Net Income per Share The computation of basic and diluted net income per share was as follows: Three months ended Six months ended June 30, June 30, 2023 2022 2023 2022 (in thousands, except per share data) (in thousands, except per share data) Basic: Net income available for common stockholders $ 8,098 $ 3,515 $ 14,138 $ 9,553 Weighted average shares outstanding 22,213 21,958 22,162 21,947 Basic earnings per share $ 0.36 $ 0.16 $ 0.64 $ 0.44 Diluted: Net income available for common stockholders $ 8,098 $ 3,515 $ 14,138 $ 9,553 Weighted-average shares outstanding 22,213 21,958 22,162 21,947 Common stock equivalents, if dilutive 238 171 209 168 Shares used in computing diluted earnings per common share 22,451 22,129 22,371 22,115 Diluted earnings per share $ 0.36 $ 0.16 $ 0.63 $ 0.43 Shares excluded in computing diluted earnings per share as those shares would be anti-dilutive 163 328 290 390 |
Note 11 - Stockholders' Equity
Note 11 - Stockholders' Equity | 6 Months Ended |
Jun. 30, 2023 | |
Notes to Financial Statements | |
Equity [Text Block] | 11. Stockholders Equity Share Repurchase Program On February 21, 2023, our Board of Directors authorized the repurchase of up to $25.0 million of the Company’s common stock through transactions on the open market, in privately negotiated purchases or otherwise until February 21, 2024. The repurchase program may be suspended or discontinued at any time. To date we have not made any repurchases under this program. Dividends In February 2011, our Board of Directors approved a policy for the payment of quarterly cash dividends on our common stock. Future declarations of quarterly dividends and the establishment of future record and payment dates are subject to approval by our Board of Directors on a quarterly basis. The dividend activity for the periods presented is as follows: Record Date Payment Date Per Share Amount Dividend Payment (in thousands) Fiscal Year 2023 March 9, 2023 March 23, 2023 $ 0.140 $ 3,099 May 17, 2023 June 1, 2023 $ 0.140 $ 3,116 Fiscal Year 2022 March 8, 2022 March 24, 2022 $ 0.125 $ 2,743 May 17, 2022 June 2, 2022 $ 0.125 $ 2,745 August 25, 2022 September 8, 2022 $ 0.125 $ 2,750 November 17, 2022 December 1, 2022 $ 0.125 $ 2,750 On July 25, 2023, our Board of Directors approved a quarterly cash dividend on our common stock of $0.14 per share payable on August 31, 2023, to stockholders of record at the close of business on August 17, 2023. |
Note 12 - Supplemental Cash Flo
Note 12 - Supplemental Cash Flow Information | 6 Months Ended |
Jun. 30, 2023 | |
Notes to Financial Statements | |
Cash Flow, Supplemental Disclosures [Text Block] | 12. Supplemental Cash Flow Information For the six months ended June 30, 2023 2022 (in thousands) Cash paid for income taxes, net $ 2,783 $ 3,991 |
Note 13 - Fair Value Measuremen
Note 13 - Fair Value Measurements | 6 Months Ended |
Jun. 30, 2023 | |
Notes to Financial Statements | |
Fair Value Disclosures [Text Block] | 13. Fair Value Measurements The fair value accounting guidance requires that assets and liabilities carried at fair value be classified and disclosed in one of the following three categories: • Level 1 — Quoted prices in active markets for identical assets or liabilities. • Level 2 — Observable inputs other than quoted prices included in Level 1, such as quoted prices for similar assets and liabilities in active markets; quoted prices for identical or similar assets and liabilities in markets that are not active; or other inputs that are observable or can be corroborated by observable market data. • Level 3 — Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. This includes certain pricing models, discounted cash flow methodologies and similar techniques that use significant unobservable inputs. Level 1 assets being measured at fair value on a recurring basis as of June 30, 2023 included our short-term investment and short-duration bond mutual fund accounts. We had no Level 2 assets being measured at fair value on a recurring basis as of June 30, 2023. Several of our acquisition-related assets and liabilities have been measured using Level 3 techniques. During 2020 we recorded a contingent liability associated with our acquisition of the bovine carotid graft business from Artegraft. The agreement required us to make potential additional payments to Artegraft of up to $17.5 million depending on the achievement of certain unit sales milestones during the first three calendar years following the acquisition. We recorded this liability at a fair value of $0.4 million to reflect management’s estimate of the likelihood of achieving these targets at the time of the Closing, as well as the time value of money until payment. This amount is being remeasured each quarter during the earn-out period, with any adjustments recorded in income from operations. During the quarter ended December 31, 2022 we recorded a reduction to the liability to reflect a change in our estimate of the likelihood of achieving the unit sales milestones. There was no change in the estimated liability during the quarter ended June 30, 2023. During 2019, we recorded contingent liabilities associated with our acquisition of the Admedus biologic patch business. The agreement includes the potential for us to pay up to $7.8 million of additional consideration beyond payments made to date, with $0.3 million contingent upon the delivery of audited financial statement of the acquired business to us; $2.0 million contingent on LeMaitre’s success in obtaining CE marks under MDR regulations on the acquired products, $0.5 million contingent upon Admedus’ success in extending the shelf life of the acquired products as specified in the agreement, and another $5.0 million contingent on the achievement of specified levels of revenues in the first 12 and 24 months following the acquisition date. This additional contingent consideration was initially valued in total at $2.3 million and is being re-measured each reporting period until the payment requirement ends, with any adjustments reported in income from operations. The contingent payment related to the delivery of audited financial statements of the business was paid in November 2019 upon satisfaction of the deliverable. The contingent payments related to Admedus’ extending the shelf life of the acquired products and achieving the revenue targets during the first 12 and 24 month periods following the acquisition were not met, and the portion of the liabilities related to these items was adjusted through income from operations. The agreement was amended in August 2021 such that the contingent payment of $2.0 million potentially due upon LeMaitre Vascular’s success in obtaining CE marks under MDR regulations on the acquired products may be reduced for certain costs incurred by LeMaitre in achieving the CE marks. During the quarter ended September 30, 2021 we recorded a reduction to the liability of $0.5 million, with the offset recorded in income from operations, to reflect our estimate of costs to be deducted from the contingent payment in connection with this amendment. Additionally, during the quarter ended December 31, 2022 we recorded a reduction to the liability of approximately $0.1 million, with the offset recorded in income from operations. There was no change in the estimated future liability during the quarter ended June 30, 2023. The following table provides a roll-forward of the fair value of these liabilities, as determined by Level 3 unobservable inputs including management’s forecast of future revenues for the acquired businesses, as well as, management’s estimates of the likelihood of achieving the other specified criteria: Six months ended June 30, 2023 2022 (in thousands) Beginning balance $ 1,339 $ 1,492 Additions - - Payments - - Change in fair value included in earnings 40 27 Ending balance $ 1,379 $ 1,519 |
Note 14 - Accumulated Other Com
Note 14 - Accumulated Other Comprehensive Loss | 6 Months Ended |
Jun. 30, 2023 | |
Notes to Financial Statements | |
Comprehensive Income (Loss) Note [Text Block] | 14. Accumulated Other Comprehensive Loss Changes to our accumulated other comprehensive loss for the six months ended June 30, 2023 and 2022 consisted primarily of foreign currency translation and unrealized losses on short-term marketable securities: Six months ended June 30, 2023 2022 (in thousands) Beginning balance $ (6,031 ) $ (3,435 ) Other comprehensive income (loss) before reclassifications 209 (3,009 ) Ending Balance $ (5,822 ) $ (6,444 ) |
Significant Accounting Policies
Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2023 | |
Accounting Policies [Abstract] | |
Basis of Accounting, Policy [Policy Text Block] | Basis of Presentation The accompanying unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (GAAP) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of management, all adjustments, consisting only of normal, recurring adjustments considered necessary for a fair presentation of the results of these interim periods have been included. Preparing financial statements requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses. Actual results may differ from these estimates. Our estimates and assumptions, including those related to bad debts, inventories, intangible assets, sales returns and discounts, share-based compensation, and income taxes are updated as appropriate. The results for the six months ended June 30, 2023 are not necessarily indicative of results to be expected for the entire year. The information contained in these interim financial statements should be read in conjunction with our audited consolidated financial statements as of and for the year ended December 31, 2022, including the notes thereto, included in our Form 10-K filed with the Securities and Exchange Commission (SEC) on March 1, 2023. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the unaudited consolidated financial statements and accompanying notes. The Company is not aware of any specific event or circumstance that would require an update to its accounting estimates or adjustments to the carrying value of its assets and liabilities as of August 8, 2023, the issuance date of this Quarterly Report on Form 10-Q. Actual results could differ from those estimates. |
Consolidation, Policy [Policy Text Block] | Consolidation Our consolidated financial statements include the accounts of LeMaitre Vascular and the accounts of our wholly-owned subsidiaries. All significant intercompany accounts and transactions have been eliminated in consolidation. |
Revenue from Contract with Customer [Policy Text Block] | Revenue Recognition Our revenue is derived primarily from the sale of disposable or implantable devices used during vascular surgery. We sell primarily direct to hospitals and to a lesser extent to international distributors, as described below, and, during the periods presented in our consolidated financial statements, entered into consigned inventory arrangements with either hospitals or distributors on a limited basis. We also derive revenues from the processing and cryopreservation of human tissues for implantation in patients. These revenues are recognized when services have been provided and the tissue has been shipped to the customer, provided all other revenue recognition criteria discussed in the succeeding paragraph have been met. We record revenue under the provisions of ASU 2014-09, Revenue from Contracts with Customers (Topic 606) Step 1: Identify the contract with a customer Step 2: Identify the performance obligations in the contract Step 3: Determine the transaction price Step 4: Allocate the transaction price to the performance obligations Step 5: Recognize revenue when or as the entity satisfies a performance obligation Revenue is recognized when or as a company satisfies a performance obligation by transferring a promised good or service to a customer (which is when the customer obtains control of that good or service). In instances in which shipping and handling activities are performed after a customer takes control of the goods (such as when title passes upon shipment from our dock), we have made the policy election allowed under Topic 606 to account for these activities as fulfillment costs and not as performance obligations. We generally reference customer purchase orders to determine the existence of a contract. Orders that are not accompanied by a purchase order are confirmed with the customer either in writing or verbally. The purchase orders or similar correspondence, once accepted, identify the performance obligations as well as the transaction price, and otherwise outline the rights and obligations of each party. We allocate the transaction price of each contract among the performance obligations in accordance with the pricing of each item specified on the purchase order, which is in turn based on standalone selling prices per our published price lists. In cases where we discount products or provide certain items free of charge, we allocate the discount proportionately to all performance obligations, unless it can be demonstrated that the discount should be allocated entirely to one or more, but not all, of the performance obligations. We record revenue, net of allowances for returns and discounts, fees paid to group purchasing organizations, and any sales and value added taxes required to be invoiced, which we have elected to exclude from the measurement of the transaction price as allowed by the standard, at the time of shipment (taking into consideration contractual shipping terms), or in the case of consigned inventory, when it is consumed. Shipment is the point at which control of the product and title passes to our customers, and at which LeMaitre has a present right to receive payment for the goods. Below is a disaggregation of our revenue by major geographic area, which is among the primary categorizations used by management in evaluating financial performance, for the periods indicated (in thousands): Three months ended June 30, Six months ended June 30, 2023 2022 2023 2022 ($ in thousands) ($ in thousands) Americas $ 33,507 $ 28,854 $ 65,633 $ 55,397 Europe, Middle East and Africa 13,580 10,749 25,857 21,243 Asia Pacific 3,028 2,505 5,700 5,029 Total $ 50,115 $ 42,108 $ 97,190 $ 81,669 We do not carry any contract assets or contract liabilities, as there are generally no unbilled amounts due from customers under contracts for which we have partially satisfied performance obligations, or amounts received from customers for which we have not satisfied performance obligations. We satisfy our performance obligations under revenue contracts within a very short time period from receipt of the orders, and payments from customers are typically received within 30 to 60 days of fulfillment of the orders, except in certain geographies such as Italy, Spain and France where the payment cycle is customarily longer. Accordingly, there is no significant financing component to our revenue contracts. Additionally, we have elected as a policy that incremental costs (such as commissions) incurred to obtain contracts are expensed as incurred, due to the short-term nature of the contracts. Customers returning products may be entitled to full or partial credit based on the condition and timing of the return. To be accepted, a returned product must be unopened (if sterile), unadulterated, and undamaged, must have at least 18 months remaining prior to its expiration date, or twelve months for our hospital customers in Europe, and generally be returned within 30 days of shipment. These return policies apply to sales to both hospitals and distributors. The amount of products returned to us, either for exchange or credit, has not been material. Nevertheless, we provide for an allowance for future sales returns based on historical returns experience, which requires judgment. Our cost of replacing defective products has not been material and is accounted for at the time of replacement. |
New Accounting Pronouncements, Policy [Policy Text Block] | Recent Accounting Pronouncements From time to time, new accounting pronouncements are issued by the Financial Accounting Standards Board (FASB) or other standard setting bodies and are generally adopted by the Company as of the specified effective date. Unless otherwise discussed, the Company believes that the impact of recently issued standards that are not yet effective will not have a material impact on its financial position or results of operations upon adoption. |
Note 1 - Organization and Bas_2
Note 1 - Organization and Basis for Presentation (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Notes Tables | |
Disaggregation of Revenue [Table Text Block] | Three months ended June 30, Six months ended June 30, 2023 2022 2023 2022 ($ in thousands) ($ in thousands) Americas $ 33,507 $ 28,854 $ 65,633 $ 55,397 Europe, Middle East and Africa 13,580 10,749 25,857 21,243 Asia Pacific 3,028 2,505 5,700 5,029 Total $ 50,115 $ 42,108 $ 97,190 $ 81,669 |
Note 2 - Income Tax Expense (Ta
Note 2 - Income Tax Expense (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Notes Tables | |
Schedule of Unrecognized Tax Benefits Roll Forward [Table Text Block] | Six months ended June 30, 2023 (in thousands) Unrecognized tax benefits as of December 31, 2022 $ 612 Additions/adjustments for tax positions of current year - Additions/adjustments for tax positions of prior years (32 ) Reductions for settlements with taxing authorities - Reductions for lapses of the applicable statutes of limitations - Unrecognized tax benefits as of June 30, 2023 $ 580 |
Note 3 - Inventories and Othe_2
Note 3 - Inventories and Other Deferred Costs (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Notes Tables | |
Schedule of Inventory, Current [Table Text Block] | June 30, 2023 December 31, 2022 (in thousands) Raw materials $ 18,174 $ 14,929 Work-in-process 3,775 3,662 Finished products 27,151 26,688 Other deferred costs 4,731 4,992 Total inventory and other deferred costs $ 53,831 $ 50,271 |
Note 5 - Goodwill and Other I_2
Note 5 - Goodwill and Other Intangible Assets (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Notes Tables | |
Schedule of Finite-Lived Intangible Assets [Table Text Block] | June 30, 2023 December 31, 2022 Gross Net Gross Net Carrying Accumulated Carrying Carrying Accumulated Carrying Value Amortization Value Value Amortization Value (in thousands) Product technology and intellectual property $ 29,549 $ 14,701 $ 14,848 $ 29,549 $ 13,319 $ 16,230 Trademarks, tradenames and licenses 3,767 1,727 2,040 3,647 1,533 2,114 Customer relationships 36,542 9,706 26,836 36,197 8,359 27,838 Other intangible assets 1,536 1,261 275 1,461 1,116 345 Total identifiable intangible assets $ 71,394 $ 27,395 $ 43,999 $ 70,854 $ 24,327 $ 46,527 |
Finite-Lived Intangible Assets Amortization Expense [Table Text Block] | Three months ended June 30, Six months ended June 30, 2023 2022 2023 2022 (in thousands) (in thousands) Amortization expense $ 1,509 $ 1,596 $ 3,068 $ 3,112 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block] | Year ended December 31, 2023 2024 2025 2026 2027 2028 (in thousands) Amortization expense $ 2,980 $ 5,772 $ 5,440 $ 5,041 $ 4,764 $ 4,378 |
Note 6 - Leases (Tables)
Note 6 - Leases (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Notes Tables | |
Lease, Cost [Table Text Block] | Three months ended June 30, Six months ended June 30, 2023 2022 2023 2022 (in thousands) (in thousands) (in thousands) (in thousands) Lease cost Operating lease cost $ 564 $ 638 $ 1,144 $ 1,163 Short-term lease cost 158 161 320 324 Total lease cost $ 722 $ 799 $ 1,464 $ 1,487 Other information Cash paid for amounts included in the measurement of operating lease liabilities $ 729 $ 810 $ 1,466 $ 1,484 Right-of-use assets obtained in exchange for new operating lease liabilities $ 841 $ 2,240 $ 1,313 $ 2,381 Weighted average remaining lease term - operating leases (in years) 6.8 8.2 Weighted average discount rate - operating leases 5.07 % 4.88 % |
Lessee, Operating Lease, Liability, to be Paid, Maturity [Table Text Block] | Remainder of 2023 $ 1,651 Year ending December 31, 2024 3,231 2025 3,060 2026 2,556 2027 2,431 2028 2,398 Thereafter 4,601 Adjustment to net present value as of June 30, 2023 (3,121 ) Minimum noncancelable lease liability $ 16,807 |
Note 7 - Accrued Expenses and_2
Note 7 - Accrued Expenses and Other Long-term Liabilities (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Notes Tables | |
Schedule of Accrued Liabilities [Table Text Block] | June 30, 2023 December 31, 2022 (in thousands) Compensation and related taxes $ 9,103 $ 10,770 Accrued purchases 6,277 3,748 Accrued expenses 3,132 4,640 Income and other taxes 421 449 Professional fees 121 108 Other 273 252 Total $ 19,327 $ 19,967 |
Other Noncurrent Liabilities [Table Text Block] | June 30, 2023 December 31, 2022 (in thousands) Acquisition-related liabilities $ 1,486 $ 1,354 Income taxes 578 636 Other 200 177 Total $ 2,264 $ 2,167 |
Note 8 - Segment and Enterpri_2
Note 8 - Segment and Enterprise-wide Disclosures (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Notes Tables | |
Schedule of Revenue from External Customers Attributed to Foreign Countries by Geographic Area [Table Text Block] | Three months ended Six months ended June 30, June 30, 2023 2022 2023 2022 (in thousands) (in thousands) United States $ 30,322 $ 26,228 $ 59,337 $ 50,492 Germany 3,583 2,870 6,929 5,861 Canada 2,716 2,269 5,478 4,178 Other countries 13,494 10,741 25,446 21,138 Net Sales $ 50,115 $ 42,108 $ 97,190 $ 81,669 |
Note 9 - Share-based Compensa_2
Note 9 - Share-based Compensation (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Notes Tables | |
Share-Based Payment Arrangement, Cost by Plan [Table Text Block] | Three months ended Six months ended June 30, June 30, 2023 2022 2023 2022 (in thousands) (in thousands) Stock option awards $ 671 $ 607 $ 1,333 $ 1,226 Restricted stock units 485 391 962 799 Performance-based restricted stock units 156 138 307 278 Total share-based compensation $ 1,312 $ 1,136 $ 2,602 $ 2,303 |
Share-Based Payment Arrangement, Expensed and Capitalized, Amount [Table Text Block] | Three months ended Six months ended June 30, June 30, 2023 2022 2023 2022 (in thousands) (in thousands) Cost of sales $ 166 $ 135 $ 336 $ 273 Sales and marketing 250 193 464 402 General and administrative 768 695 1,545 1,407 Research and development 128 113 257 221 Total stock-based compensation $ 1,312 $ 1,136 $ 2,602 $ 2,303 |
Note 10 - Net Income Per Share
Note 10 - Net Income Per Share (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Notes Tables | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | Three months ended Six months ended June 30, June 30, 2023 2022 2023 2022 (in thousands, except per share data) (in thousands, except per share data) Basic: Net income available for common stockholders $ 8,098 $ 3,515 $ 14,138 $ 9,553 Weighted average shares outstanding 22,213 21,958 22,162 21,947 Basic earnings per share $ 0.36 $ 0.16 $ 0.64 $ 0.44 Diluted: Net income available for common stockholders $ 8,098 $ 3,515 $ 14,138 $ 9,553 Weighted-average shares outstanding 22,213 21,958 22,162 21,947 Common stock equivalents, if dilutive 238 171 209 168 Shares used in computing diluted earnings per common share 22,451 22,129 22,371 22,115 Diluted earnings per share $ 0.36 $ 0.16 $ 0.63 $ 0.43 Shares excluded in computing diluted earnings per share as those shares would be anti-dilutive 163 328 290 390 |
Note 11 - Stockholders' Equity
Note 11 - Stockholders' Equity (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Notes Tables | |
Schedule of Dividends Payable [Table Text Block] | Record Date Payment Date Per Share Amount Dividend Payment (in thousands) Fiscal Year 2023 March 9, 2023 March 23, 2023 $ 0.140 $ 3,099 May 17, 2023 June 1, 2023 $ 0.140 $ 3,116 Fiscal Year 2022 March 8, 2022 March 24, 2022 $ 0.125 $ 2,743 May 17, 2022 June 2, 2022 $ 0.125 $ 2,745 August 25, 2022 September 8, 2022 $ 0.125 $ 2,750 November 17, 2022 December 1, 2022 $ 0.125 $ 2,750 |
Note 12 - Supplemental Cash F_2
Note 12 - Supplemental Cash Flow Information (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Notes Tables | |
Schedule of Cash Flow, Supplemental Disclosures [Table Text Block] | For the six months ended June 30, 2023 2022 (in thousands) Cash paid for income taxes, net $ 2,783 $ 3,991 |
Note 13 - Fair Value Measurem_2
Note 13 - Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Notes Tables | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Table Text Block] | Six months ended June 30, 2023 2022 (in thousands) Beginning balance $ 1,339 $ 1,492 Additions - - Payments - - Change in fair value included in earnings 40 27 Ending balance $ 1,379 $ 1,519 |
Note 14 - Accumulated Other C_2
Note 14 - Accumulated Other Comprehensive Loss (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Notes Tables | |
Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block] | Six months ended June 30, 2023 2022 (in thousands) Beginning balance $ (6,031 ) $ (3,435 ) Other comprehensive income (loss) before reclassifications 209 (3,009 ) Ending Balance $ (5,822 ) $ (6,444 ) |
Note 1 - Organization and Bas_3
Note 1 - Organization and Basis for Presentation (Details Textual) | 6 Months Ended |
Jun. 30, 2023 | |
Minimum [Member] | |
Period of Payments Received from Customers | 30 days |
Maximum [Member] | |
Period of Payments Received from Customers | 60 days |
Note 1 - Organization and Bas_4
Note 1 - Organization and Basis for Presentation - Disaggregation of Revenue by Major Geographic Area (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Revenue | $ 50,115 | $ 42,108 | $ 97,190 | $ 81,669 |
Americas [Member] | ||||
Revenue | 33,507 | 28,854 | 65,633 | 55,397 |
EMEA [Member] | ||||
Revenue | 13,580 | 10,749 | 25,857 | 21,243 |
Asia Pacific [Member] | ||||
Revenue | $ 3,028 | $ 2,505 | $ 5,700 | $ 5,029 |
Note 2 - Income Tax Expense (De
Note 2 - Income Tax Expense (Details Textual) - USD ($) | Jun. 30, 2023 | Dec. 31, 2022 |
Unrecognized Tax Benefits | $ 580,000 | $ 612,000 |
Note 2 - Income Tax Expense - R
Note 2 - Income Tax Expense - Reconciliation of Beginning and Ending Amount of Unrecognized Tax Benefits (Details) | 6 Months Ended |
Jun. 30, 2023 USD ($) | |
Unrecognized tax benefits as of December 31, 2022 | $ 612,000 |
Additions/adjustments for tax positions of current year | 0 |
Additions/adjustments for tax positions of prior years | (32,000) |
Reductions for settlements with taxing authorities | 0 |
Reductions for lapses of the applicable statutes of limitations | 0 |
Unrecognized tax benefits as of March 31, 2023 | $ 580,000 |
Note 3 - Inventories and Othe_3
Note 3 - Inventories and Other Deferred Costs (Details Textual) - USD ($) $ in Millions | Jun. 30, 2023 | Dec. 31, 2022 |
Other Inventory, Materials, Supplies and Merchandise under Consignment, Gross | $ 1.8 | $ 1.5 |
Note 3 - Inventories and Othe_4
Note 3 - Inventories and Other Deferred Costs - Summary of Inventories and Other Deferred Costs (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Raw materials | $ 18,174 | $ 14,929 |
Work-in-process | 3,775 | 3,662 |
Finished products | 27,151 | 26,688 |
Other deferred costs | 4,731 | 4,992 |
Total inventory and other deferred costs | $ 53,831 | $ 50,271 |
Note 4 - Divestitures (Details
Note 4 - Divestitures (Details Textual) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended | ||
Oct. 10, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | |
Restructuring Charges | $ 3,100 | |||
Gain (Loss) on Disposition of Property Plant Equipment | $ 0 | $ 95 | ||
St. Etienne, France Factory [Member] | ||||
Restructuring Charges | $ 500 | |||
Proceeds from Sale of Property, Plant, and Equipment | $ 900 | |||
Sale of Property, Plant, and Equipment, Closing Costs | 100 | |||
Gain (Loss) on Disposition of Property Plant Equipment | $ 100 |
Note 5 - Goodwill and Other I_3
Note 5 - Goodwill and Other Intangible Assets (Details Textual) | Jun. 30, 2023 |
Minimum [Member] | |
Finite-Lived Intangible Asset, Useful Life | 2 years |
Maximum [Member] | |
Finite-Lived Intangible Asset, Useful Life | 16 years |
Weighted Average [Member] | |
Finite-Lived Intangible Asset, Useful Life | 10 years 3 months 18 days |
Note 5 - Goodwill and Other I_4
Note 5 - Goodwill and Other Intangible Assets - Components of Identifiable Intangible Assets (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Gross carrying value | $ 71,394 | $ 70,854 |
Accumulated amortization | 27,395 | 24,327 |
Net carrying value | 43,999 | 46,527 |
Product Technology and Intellectual Property [Member] | ||
Gross carrying value | 29,549 | 29,549 |
Accumulated amortization | 14,701 | 13,319 |
Net carrying value | 14,848 | 16,230 |
Trademarks, Tradenames and Licenses [Member] | ||
Gross carrying value | 3,767 | 3,647 |
Accumulated amortization | 1,727 | 1,533 |
Net carrying value | 2,040 | 2,114 |
Customer Relationships [Member] | ||
Gross carrying value | 36,542 | 36,197 |
Accumulated amortization | 9,706 | 8,359 |
Net carrying value | 26,836 | 27,838 |
Other Intangible Assets [Member] | ||
Gross carrying value | 1,536 | 1,461 |
Accumulated amortization | 1,261 | 1,116 |
Net carrying value | $ 275 | $ 345 |
Note 5 - Goodwill and Other I_5
Note 5 - Goodwill and Other Intangible Assets - Amortization Expense Included in General and Administrative Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Amortization expense | $ 1,509 | $ 1,596 | $ 3,068 | $ 3,112 |
Note 5 - Goodwill and Other I_6
Note 5 - Goodwill and Other Intangible Assets - Estimated Amortization Expense for Each of Five Succeeding Fiscal Years (Details) $ in Thousands | Jun. 30, 2023 USD ($) |
2023 | $ 2,980 |
2024 | 5,772 |
2025 | 5,440 |
2026 | 5,041 |
2027 | 4,764 |
2028 | $ 4,378 |
Note 6 - Leases (Details Textua
Note 6 - Leases (Details Textual) $ in Thousands | Jun. 30, 2023 USD ($) ft² | Mar. 31, 2023 | Mar. 01, 2023 | Sep. 01, 2022 | Jun. 30, 2022 ft² | May 31, 2022 ft² | Mar. 31, 2022 ft² | Dec. 31, 2021 |
Finance Lease, Right-of-Use Asset, after Accumulated Amortization | $ | $ 0 | |||||||
Lessee, Operating Lease, Discount Rate | 5.25% | |||||||
Senior Secured Credit Facility [Member] | Term Loan [Member] | ||||||||
Debt Instrument, Interest Rate, Stated Percentage | 3.50% | |||||||
North Brunswick, New Jersey [Member] | Artegraft Inc [Member] | ||||||||
Area of Real Estate Property | 16,732 | |||||||
Fox River Grove, Illinois [Member] | Restore Flow Allografts [Member] | ||||||||
Area of Real Estate Property | 11,765 | |||||||
ARIZONA | ||||||||
Lessee, Operating Lease, Renewal Term | 3 years | |||||||
CHINA | ||||||||
Lessee, Operating Lease, Term of Contract | 2 years | |||||||
CANADA | ||||||||
Lessee, Operating Lease, Renewal Term | 3 years | |||||||
Lessee, Operating Lease, Term of Contract | 3 years | |||||||
Principal Worldwide Executive, Distribution, and Manufacturing Operations Facilities [Member] | Massachusetts [Member] | ||||||||
Area of Real Estate Property | 109,354 | |||||||
International Operations Headquarter Facility [Member] | GERMANY | ||||||||
Area of Real Estate Property | 21,410 | 16,470 | ||||||
Area of Real Estate Property, Increase | 4,940 | |||||||
Lessee, Operating Lease, Renewal Term | 5 years | |||||||
International Operations Headquarter Facility [Member] | SINGAPORE | ||||||||
Area of Real Estate Property | 1,270 | |||||||
Office Space in Seoul, Korea [Member] | ||||||||
Area of Real Estate Property | 2,300 | |||||||
Office and Warehouse Space in Bangkok, Thailand [Member] | ||||||||
Area of Real Estate Property | 2,810 | |||||||
Leased Automobiles [Member] | ||||||||
Lessee, Operating Lease, Term of Contract | 3 years | |||||||
Leased Printing Equipment [Member] | ||||||||
Lessee, Operating Lease, Term of Contract | 5 years |
Note 6 - Leases - Additional Le
Note 6 - Leases - Additional Lease Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Operating lease cost | $ 564 | $ 638 | $ 1,144 | $ 1,163 |
Short-term lease cost | 158 | 161 | 320 | 324 |
Total lease cost | 722 | 799 | 1,464 | 1,487 |
Cash paid for amounts included in the measurement of operating lease liabilities | 729 | 810 | 1,466 | 1,484 |
Right-of-use assets obtained in exchange for new operating lease liabilities | $ 841 | $ 2,240 | $ 1,313 | $ 2,381 |
Weighted average remaining lease term in years - operating leases (Year) | 6 years 9 months 18 days | 8 years 2 months 12 days | 6 years 9 months 18 days | 8 years 2 months 12 days |
Weighted average discount rate - operating leases | 5.07% | 4.88% | 5.07% | 4.88% |
Note 6 - Leases - Minimum Renta
Note 6 - Leases - Minimum Rental Commitments (Details) $ in Thousands | Jun. 30, 2023 USD ($) |
Remainder of 2023 | $ 1,651 |
2024 | 3,231 |
2025 | 3,060 |
2026 | 2,556 |
2027 | 2,431 |
2028 | 2,398 |
Thereafter | 4,601 |
Adjustment to net present value as of March 31, 2023 | (3,121) |
Minimum noncancelable lease liability | $ 16,807 |
Note 7 - Accrued Expenses and_3
Note 7 - Accrued Expenses and Other Long-term Liabilities - Accrued Expenses (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Compensation and related taxes | $ 9,103 | $ 10,770 |
Accrued purchases | 6,277 | 3,748 |
Accrued expenses | 3,132 | 4,640 |
Income and other taxes | 421 | 449 |
Professional fees | 121 | 108 |
Other | 273 | 252 |
Total | $ 19,327 | $ 19,967 |
Note 7 - Accrued Expenses and_4
Note 7 - Accrued Expenses and Other Long-term Liabilities - Other Long-term Liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Aquisition-related liabilities | $ 1,486 | $ 1,354 |
Income taxes | 578 | 636 |
Other | 200 | 177 |
Total | $ 2,264 | $ 2,167 |
Note 8 - Segment and Enterpri_3
Note 8 - Segment and Enterprise-wide Disclosures (Details Textual) | 6 Months Ended |
Jun. 30, 2023 | |
Number of Operating Segments | 1 |
Note 8 - Segment and Enterpri_4
Note 8 - Segment and Enterprise-wide Disclosures - Net Sales to Unaffiliated Customers by Geography (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Net Sales | $ 50,115 | $ 42,108 | $ 97,190 | $ 81,669 |
UNITED STATES | ||||
Net Sales | 30,322 | 26,228 | 59,337 | 50,492 |
GERMANY | ||||
Net Sales | 3,583 | 2,870 | 6,929 | 5,861 |
CANADA | ||||
Net Sales | 2,716 | 2,269 | 5,478 | 4,178 |
Other Countries [Member] | ||||
Net Sales | $ 13,494 | $ 10,741 | $ 25,446 | $ 21,138 |
Note 9 - Share-based Compensa_3
Note 9 - Share-based Compensation (Details Textual) - shares | 6 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Grants in Period, Gross | 1,660 | 984 |
Shares Issued, Shares, Share-Based Payment Arrangement, after Forfeiture | 180,000 | 43,000 |
Restricted Stock Units (RSUs) [Member] | ||
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Grants in Period | 765 | 320 |
Performance-based Restricted Units [Member] | ||
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Grants in Period | 310 | 250 |
Note 9 - Share-based Compensa_4
Note 9 - Share-based Compensation - Share-Based Compensation Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Stock-based compensation | $ 1,312 | $ 1,136 | $ 2,602 | $ 2,303 |
Share-Based Payment Arrangement, Option [Member] | ||||
Stock-based compensation | 671 | 607 | 1,333 | 1,226 |
Restricted Stock Units (RSUs) [Member] | ||||
Stock-based compensation | 485 | 391 | 962 | 799 |
Performance-based Restricted Units [Member] | ||||
Stock-based compensation | $ 156 | $ 138 | $ 307 | $ 278 |
Note 9 - Share-based Compensa_5
Note 9 - Share-based Compensation - Schedule of Stock-based Compensation (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Total stock-based compensation | $ 1,312 | $ 1,136 | $ 2,602 | $ 2,303 |
Cost of Sales [Member] | ||||
Total stock-based compensation | 166 | 135 | 336 | 273 |
Selling and Marketing Expense [Member] | ||||
Total stock-based compensation | 250 | 193 | 464 | 402 |
General and Administrative Expense [Member] | ||||
Total stock-based compensation | 768 | 695 | 1,545 | 1,407 |
Research and Development Expense [Member] | ||||
Total stock-based compensation | $ 128 | $ 113 | $ 257 | $ 221 |
Note 10 - Net Income Per Shar_2
Note 10 - Net Income Per Share - Computation of Basic and Diluted Net Income per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2023 | Mar. 31, 2023 | Jun. 30, 2022 | Mar. 31, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Net income | $ 8,098 | $ 6,040 | $ 3,515 | $ 6,038 | $ 14,138 | $ 9,553 |
Basic (in shares) | 22,213 | 21,958 | 22,162 | 21,947 | ||
Basic earnings per share (in dollars per share) | $ 0.36 | $ 0.16 | $ 0.64 | $ 0.44 | ||
Common stock equivalents, if dilutive (in shares) | 238 | 171 | 209 | 168 | ||
Shares used in computing diluted earnings per common share (in shares) | 22,451 | 22,129 | 22,371 | 22,115 | ||
Diluted earnings per share (in dollars per share) | $ 0.36 | $ 0.16 | $ 0.63 | $ 0.43 | ||
Shares excluded in computing diluted earnings per share as those shares would be anti-dilutive (in shares) | 163 | 328 | 290 | 390 |
Note 11 - Stockholders' Equit_2
Note 11 - Stockholders' Equity (Details Textual) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 6 Months Ended | ||||
Jul. 25, 2023 | Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Feb. 21, 2023 | |
Common Stock, Dividends, Per Share, Declared | $ 0.140 | $ 0.125 | $ 0.280 | $ 0.250 | ||
Subsequent Event [Member] | ||||||
Common Stock, Dividends, Per Share, Declared | $ 0.14 | |||||
Dividends Payable, Date to be Paid | Aug. 31, 2023 | |||||
Dividends Payable, Date of Record | Aug. 17, 2023 | |||||
Stock Repurchase Program [Member] | Common Stock [Member] | ||||||
Stock Repurchase Program, Authorized Amount | $ 25 |
Note 11 - Stockholders' Equit_3
Note 11 - Stockholders' Equity - Dividend Activity (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | |
Cash dividends declared per common share (in dollars per share) | $ 0.140 | $ 0.125 | $ 0.280 | $ 0.250 | |
Quarterly Dividends 1 [Member] | |||||
Payment date | Mar. 23, 2023 | Mar. 24, 2022 | |||
Cash dividends declared per common share (in dollars per share) | $ 0.140 | $ 0.125 | |||
Dividend payment | $ 3,099 | $ 3,099 | $ 2,743 | ||
Quarterly Dividends 2 [Member] | |||||
Payment date | Jun. 01, 2023 | Jun. 02, 2022 | |||
Cash dividends declared per common share (in dollars per share) | $ 0.140 | $ 0.125 | |||
Dividend payment | $ 3,116 | $ 3,116 | $ 2,745 | ||
Quarterly Dividends 3 [Member] | |||||
Payment date | Sep. 08, 2022 | ||||
Cash dividends declared per common share (in dollars per share) | $ 0.125 | ||||
Dividend payment | $ 2,750 | ||||
Quarterly Dividends 4 [Member] | |||||
Payment date | Dec. 01, 2022 | ||||
Cash dividends declared per common share (in dollars per share) | $ 0.125 | ||||
Dividend payment | $ 2,750 |
Note 12 - Supplemental Cash F_3
Note 12 - Supplemental Cash Flow Information - Schedule of Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Cash paid for income taxes, net | $ 2,783 | $ 3,991 |
Note 13 - Fair Value Measurem_3
Note 13 - Fair Value Measurements (Details Textual) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Dec. 31, 2022 | Sep. 30, 2021 | Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2019 | Oct. 11, 2019 | |
Business Combination, Contingent Consideration Arrangements, Change in Amount of Contingent Consideration, Liability | $ 48 | $ (54) | ||||
Artegraft Inc [Member] | ||||||
Business Combination, Contingent Consideration Arrangements, Range of Outcomes, Value, High | 17,500 | |||||
Business Combination, Contingent Consideration, Liability | $ 400 | |||||
CardioCel and VascuCel Biologic Patches [Member] | ||||||
Business Combination, Contingent Consideration Arrangements, Range of Outcomes, Value, High | $ 7,800 | |||||
CardioCel and VascuCel Biologic Patches [Member] | Fair Value, Inputs, Level 3 [Member] | ||||||
Business Combination, Contingent Consideration, Liability | $ 2,300 | |||||
CardioCel and VascuCel Biologic Patches [Member] | Audited Carve-Out Financial Statements of the Acquired Business [Member] | ||||||
Business Combination, Contingent Consideration Arrangements, Range of Outcomes, Value, High | 300 | |||||
CardioCel and VascuCel Biologic Patches [Member] | Third Holdback [Member] | ||||||
Business Combination, Contingent Consideration Arrangements, Range of Outcomes, Value, High | 2,000 | |||||
Business Combination, Contingent Consideration, Liability | $ 2,000 | |||||
Business Combination, Contingent Consideration Arrangements, Change in Amount of Contingent Consideration, Liability | $ (100) | $ (500) | ||||
CardioCel and VascuCel Biologic Patches [Member] | Extension of Product Shelf Life from 36 Months to 60 Months in the First Anniversary of Closing Date [Member] | ||||||
Business Combination, Contingent Consideration Arrangements, Range of Outcomes, Value, High | 500 | |||||
CardioCel and VascuCel Biologic Patches [Member] | Achievement of Specified Levels of Revenues [Member] | ||||||
Business Combination, Contingent Consideration Arrangements, Range of Outcomes, Value, High | $ 5,000 |
Note 13 - Fair Value Measurem_4
Note 13 - Fair Value Measurements - Rollforward of the Fair Value as Determined by Level 3 (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Beginning balance | $ 1,339 | $ 1,492 |
Additions | 0 | 0 |
Payments | 0 | 0 |
Change in fair value included in earnings | 40 | 27 |
Ending balance | $ 1,379 | $ 1,519 |
Note 14 - Accumulated Other C_3
Note 14 - Accumulated Other Comprehensive Loss - Schedule of Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Balance | $ 268,201 | $ 254,151 |
Balance | 283,827 | 258,033 |
AOCI Attributable to Parent [Member] | ||
Balance | (6,031) | (3,435) |
Other comprehensive income (loss) before reclassifications | 209 | (3,009) |
Balance | $ (5,822) | $ (6,444) |