MiMedx (MDXG) 10-Q 31 Jul 17 2017 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2017	Jul. 14, 2017
Document and Entity Information [Abstract]
Entity Registrant Name	MIMEDX GROUP, INC.
Entity Central Index Key	1,376,339
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		112,470,030
Document Fiscal Year Focus	2,017
Document Fiscal Period Focus	Q2
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Jun. 30, 2017

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Current assets:
Cash and cash equivalents	$ 47,533	$ 34,391
Accounts receivable, net	60,738	67,151
Inventory, net	15,033	17,814
Prepaid expenses	8,218	5,894
Other current assets	1,024	1,288
Total current assets	132,546	126,538
Property and equipment, net of accumulated depreciation	14,419	13,786
Goodwill	20,203	20,203
Intangible assets, net of accumulated amortization	22,289	23,268
Deferred tax asset, net	10,144	9,114
Deferred financing costs and other assets	264	354
Total assets	199,865	193,263
Current liabilities:
Accounts payable	11,504	11,436
Accrued compensation	14,719	12,365
Accrued expenses	7,986	10,941
Current portion of earn out liability	17,574	8,740
Income taxes	(822)	5,768
Other current liabilities	550	1,482
Total current liabilities	51,511	50,732
Earn out liability	0	8,710
Other liabilities	1,084	821
Total liabilities	52,595	60,263
Commitments and contingencies (Note 12)
Stockholders' equity:
Preferred stock; $.001 par value; 5,000,000 shares authorized and 0 shares issued and outstanding	0	0
Common stock; $.001 par value; 150,000,000 shares authorized; 112,534,526 issued and 112,462,283 outstanding at June 30, 2017 and 110,212,547 issued and 109,862,787 outstanding at December 31, 2016	112	110
Additional paid-in capital	161,883	161,261
Treasury stock at cost: 72,243 shares at June 30, 2017 and 349,760 shares at December 31, 2016	(966)	(2,216)
Accumulated deficit	(13,759)	(26,155)
Total stockholders' equity	147,270	133,000
Total liabilities and stockholders' equity	$ 199,865	$ 193,263

CONDENSED CONSOLIDATED BALANCE3

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - $ / shares	Jun. 30, 2017	Dec. 31, 2016
Stockholders' equity:
Preferred stock par value (in dollars per share)	$ 0.001	$ 0.001
Preferred stock, shares authorized (in shares)	5,000,000	5,000,000
Preferred stock, shares issued (in shares)	0	0
Preferred stock, shares outstanding (in shares)	0	0
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, shares authorized (in shares)	150,000,000	150,000,000
Common stock, shares issued (in shares)	112,534,526	110,212,547
Common stock, shares outstanding (in shares)	112,462,283	109,862,787
Treasury stock, shares (in shares)	72,243	349,760

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Income Statement [Abstract]
Net sales	$ 76,412	$ 57,342	$ 149,019	$ 110,710
Cost of sales	8,631	7,394	17,374	15,341
Gross margin	67,781	49,948	131,645	95,369
Operating expenses:
Research and development expenses	4,747	3,168	8,949	5,664
Selling, general and administrative expenses	55,314	42,772	108,265	83,420
Amortization of intangible assets	507	447	1,033	1,257
Operating income	7,213	3,561	13,398	5,028
Other expense, net
Interest expense, net	(149)	(111)	(294)	(167)
Income before income tax provision	7,064	3,450	13,104	4,861
Income tax (provision) benefit	1,005	(1,475)	(708)	(1,689)
Net income	$ 8,069	$ 1,975	$ 12,396	$ 3,172
Net income per common share - basic (in dollars per share)	$ 0.08	$ 0.02	$ 0.12	$ 0.03
Net income per common share - diluted (in dollars per share)	$ 0.07	$ 0.02	$ 0.11	$ 0.03
Weighted average shares outstanding - basic (in shares)	106,805,162	106,191,932	106,254,433	105,873,727
Weighted average shares outstanding - diluted (in shares)	117,285,865	112,148,415	115,856,317	112,095,051

CONDENSED CONSOLIDATED STATEME5

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Unaudited) - 6 months ended Jun. 30, 2017 - USD ($) $ in Thousands	Total	Common Stock	Additional Paid-in Capital	Treasury Stock	Deficit
Balance (in shares) at Dec. 31, 2016		110,212,547		349,760
Balance, beginning of period at Dec. 31, 2016	$ 133,000	$ 110	$ 161,261	$ (2,216)	$ (26,155)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Share-based compensation expense	$ 9,926		9,926
Exercise of stock options (in shares)	1,957,572	1,097,933		(859,639)
Exercise of stock options	$ 9,192	$ 1	1,723	$ 7,468
Issuance of restricted stock (in shares)		1,224,046		(1,592,093)
Issuance of restricted stock	0	$ 1	(12,540)	$ 12,539
Restricted stock shares canceled/forfeited	0		1,472	$ (1,472)
Restricted stock shares cancelled/forfeited (in shares)				192,198
Shares issued for services performed	$ 166		41	$ 125
Shares issued for services performed (in shares)	(17,539)			(17,539)
Share repurchase (in shares)				1,685,993
Share repurchase	$ (14,744)			$ (14,744)
Shares repurchased for tax withholding (in shares)				313,563
Shares repurchased for tax withholding	(2,666)			$ (2,666)
Net income	12,396				12,396
Balance (in shares) at Jun. 30, 2017		112,534,526		72,243
Balance, end of period at Jun. 30, 2017	$ 147,270	$ 112	$ 161,883	$ (966)	$ (13,759)

CONDENSED CONSOLIDATED STATEME6

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016
Cash flows from operating activities:
Net income	$ 12,396	$ 3,172
Adjustments to reconcile net income to net cash from operating activities:
Depreciation	2,061	1,555
Amortization of intangible assets	1,033	1,257
Amortization of inventory fair value step-up	153	1,224
Amortization of deferred financing costs	90	91
Share-based compensation	9,926	9,124
Change in deferred income taxes	(1,030)	(356)
Increase (decrease) in cash, net of effects of acquisition, resulting from changes in:
Accounts receivable	6,413	894
Inventory	2,628	(2,245)
Prepaid expenses	(2,324)	(1,781)
Other current assets	264	92
Accounts payable	234	(5,597)
Accrued compensation	2,354	(4,789)
Accrued expenses	(2,833)	2,344
Income taxes	(6,590)	1,388
Other liabilities	(652)	(70)
Net cash flows from operating activities	24,123	6,303
Cash flows from investing activities:
Purchases of equipment	(2,694)	(3,755)
Purchase of Stability Inc., net of cash acquired	0	(7,631)
Fixed maturity securities redemption	0	3,000
Patent application costs	(54)	(327)
Net cash flows from investing activities	(2,748)	(8,713)
Cash flows from financing activities:
Proceeds from exercise of stock options	9,192	2,016
Share repurchase under repurchase plan	(14,744)	(3,530)
Share repurchase for tax withholdings on vesting of restricted stock	(2,666)	(684)
Deferred financing costs	0	(61)
Payments under capital lease obligations	(15)	(14)
Net cash flows from financing activities	(8,233)	(2,273)
Net change in cash	13,142	(4,683)
Cash and cash equivalents, beginning of period	34,391	28,486
Cash and cash equivalents, end of period	$ 47,533	$ 23,803

Basis of Presentation

Basis of Presentation	6 Months Ended
	Jun. 30, 2017
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of Presentation	Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) from 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. Changes to GAAP are established by the Financial Accounting Standards Board (“FASB”) in the form of Accounting Standards Updates (“ASU’’) to the FASB’s Accounting Standards Codification (“ASC”). In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation of the results of operations for the periods presented have been included. Operating results for the six months ended June 30, 2017 and 2016 , are not necessarily indicative of the results that may be expected for the fiscal year. The balance sheet at December 31, 2016 , has been derived from the audited consolidated financial statements at that date, but does not include all of the information and footnotes required by GAAP for complete financial statements. You should read these condensed consolidated financial statements together with the historical consolidated financial statements of the Company for the year ended December 31, 2016 , included in the Company's Annual Report on Form 10-K for the year ended December 31, 2016 , filed with the SEC on March 1, 2017. The Company operates in one business segment, Regenerative Biomaterials, which includes the design, manufacture and marketing of products and tissue processing services for the Wound Care, Surgical, Sports Medicine, Ophthalmic and Dental market categories. The MiMedx allograft product families include our: dHACM family with AmnioFix® and EpiFix® brands; Amniotic Fluid family with OrthoFlo brand; Umbilical family with EpiCord® and AmnioCord® brands; Placental Collagen family with CollaFix™ and AmnioFill® brands; and Bone family with Physio® brand. AmnioFix and EpiFix are our tissue technologies processed from human amniotic membrane; OrthoFlo is an amniotic fluid derived allograft; EpiCord and AmnioCord are derived from the umbilical cord; Physio is a bone grafting material comprised of 100% bone tissue with no added carrier; and CollaFix, our next brand we plan to commercialize, is our collagen fiber technology, developed with our patented cross-linking polymers, designed to mimic the natural composition, structure and mechanical properties of musculoskeletal tissues in order to augment their repair.

Significant Accounting Policies

Significant Accounting Policies	6 Months Ended
	Jun. 30, 2017
Accounting Policies [Abstract]
Significant Accounting Policies	Significant Accounting Policies Please see Note 2 to the Company's Consolidated Financial Statements included in the Company’s Form 10-K for the fiscal year ended December 31, 2016 , for a description of all significant accounting policies. Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. Accounts Receivable Accounts receivable represent amounts due from customers for which revenue has been recognized. Generally, the Company does not require collateral or any other security to support its receivables. The allowance for doubtful accounts is the Company’s best estimate of the amount of probable credit losses in the Company’s existing receivables. The Company determines the allowance based on factors such as historical collection experience, customers' current creditworthiness, customer concentrations, age of accounts receivable balance and general economic conditions that may affect the customers' ability to pay. Inventories Inventories are valued at the lower of cost or market, using the first-in, first-out (FIFO) method. Inventory is tracked through Raw Material, WIP, and Finished Good stages as the product progresses through various production steps and stocking locations. Labor and overhead costs are absorbed through the various production processes up to when the work order closes. Historical yields and normal capacities are utilized in the calculation of production overhead rates. Reserves for inventory obsolescence are utilized to account for slow-moving inventory as well as inventory no longer needed due to diminished market demand. Revenue Recognition The Company sells its products through a combination of a direct sales force, independent stocking distributors and third party representatives in the U.S. and independent distributors in international markets. The Company recognizes revenue when title to the goods and risk of loss transfers to customers, provided there are no material remaining performance obligations required of the Company or any matters of customer acceptance. The Company records revenues from sales to our independent stocking distributors at the time the product is shipped to the distributor. Our stocking distributors, who sell the products to their customers or sub-distributors, contractually take title to the products and assume all risks of ownership at the time of shipment. Our stocking distributors are obligated to pay us the contractually agreed upon invoice price within specified terms regardless of when, if ever, they sell the products. Our customers and stocking distributors do not have any contractual rights of return or exchange other than for defective product or shipping error; however, in limited situations, we do accept returns or exchanges at our discretion. Some of the Company’s sales to Government accounts, including the Department of Veterans Affairs, were historically made through a distributor relationship with AvKARE Inc., which is a veteran-owned General Services Administration Federal Supply Schedule (FSS) contractor. The Company's agreement with AvKARE expired on June 30, 2017. Upon termination of the agreement, the Company has an obligation to repurchase AvKARE’s remaining inventory, within ninety (90) days in accordance with the terms of the agreement. As of June 30, 2017, the Company has estimated this liability and has included it in its allowance for product returns. A portion of the Company’s revenue is generated from consignment inventory maintained at hospitals or physicians' offices. Significant terms of our consignment agreements state that title to the inventory remains with the Company until the product, which has been segregated by the consignee, is withdrawn and therefore purchased by the consignee. The Consignee accepts all risk of loss and full responsibility for any product in the consignment inventory that may be opened, lost, stolen or damaged. The Company recognizes revenue when we are notified that product has been used or implanted. We make estimates of potential future sales returns, discounts and allowances related to current period product revenue and these are reflected as a reduction of revenue in the same period revenue is recognized. We base our estimate for sales returns, discounts and allowances on historical sales and product return information, including historical experience and actual and projected trend information as well as projected sales returns based on estimated usage and contractual arrangements. These estimates have historically been materially consistent with actual results. We continually evaluate new and current customers, including our stocking distributors, for collectability based on various factors including past history with the customer, evaluation of their creditworthiness, and current economic conditions. We only record revenue when collectability is reasonably assured. Acquisitions Results of operations of acquired companies are included in the Company’s results of operations as of the respective acquisition dates. The purchase price of each acquisition is allocated to the net assets acquired based on estimates of their fair values at the date of the acquisition. Any purchase price in excess of these net assets is recorded as goodwill. The allocation of purchase price in certain cases may be subject to revision based on the final determination of fair values during the measurement period, which may be up to one year from the acquisition date. Contingent consideration is recognized at the estimated fair value on the acquisition date. Subsequent changes, after the measurement period has expired, to the fair value of contingent payments are recognized in earnings. Contingent payments related to acquisitions consist of an earn out based on sales less direct production costs, and are valued using discounted cash flow techniques. The fair value of these payments is based upon probability-weighted future revenue estimates and increases or decreases as revenue estimates or expectation of timing of payments changes. Patent Costs The Company incurs certain legal and related costs in connection with patent applications for tissue-based products and processes. The Company capitalizes such costs to be amortized over the expected life of the patent to the extent that an economic benefit is anticipated from the resulting patent or alternative future use is available to the Company and are included in Intangible Assets in the Condensed Consolidated Balance Sheets. The Company capitalized approximately $54,000 of patent costs during the first six months of 2017 . The Company capitalized approximately $327,000 of patent costs during the first six months of 2016 . Treasury Stock The Company accounts for the purchase of treasury stock under the cost method. Treasury stock which is reissued for the exercise of option grants and the issuance of restricted stock grants is accounted for on a first-in first-out (FIFO) basis. Recently Issued and Adopted Accounting Standards The Company considers the applicability and impact of all ASUs issued, both effective and not yet effective. In May 2014, the FASB issued ASU 2014-09, “Revenue Recognition - Revenue from Contracts with Customers” (ASU 2014-09) that requires companies to recognize revenue when a customer obtains control rather than when companies have transferred substantially all risks and rewards of a good or service. This update is effective for annual reporting periods beginning on or after December 15, 2017 and interim periods therein and requires expanded disclosures. We are in the process of evaluating the impact of the adoption of the standard. We have identified one revenue stream from our contracts with customers: product sales. While our evaluation of our contracts for product sales is in its initial stage, based upon the results of our work to date we currently do not expect the application of the new standard to these contracts to have a material impact to our consolidated financial statements either at initial implementation or on an ongoing basis. In February 2016, the FASB issued ASU No. 2016-02, "Leases (Topic 842)." The core principle of Topic 842 is that a lessee should recognize the assets and liabilities that arise from both capital and operating leases. ASU 2016-02 is effective for public companies for annual reporting periods beginning after December 15, 2018, and interim periods within those fiscal years. The guidance may be adopted prospectively or retrospectively and early adoption is permitted. The Company is currently assessing the impact the adoption of ASU 2016-02 will have on its consolidated financial statements. In March 2016, the FASB issued ASU 2016-09, "Improvements to Employee Share-Based Payment Accounting," which simplifies several aspects of the accounting for share-based payment award transactions including (a) income tax consequences; (b) classification of awards as either debt or equity liabilities; and (c) classification on the statement of cash flows. The amendments are effective for public business entities for annual periods beginning after December 15, 2016, and interim periods within those annual periods. The Company has adopted this ASU as of January 1, 2017. The primary amendment impacting the Company's financial statements is the requirement for excess tax benefits or shortfalls on the exercise of stock-based compensation awards to be presented in income tax expense in the Consolidated Statements of Income during the period the award is exercised as opposed to being recorded in Additional paid-in capital on the Consolidated Balance Sheets. The excess tax benefit or shortfall is calculated as the difference between the fair value of the award on the date of exercise and the fair value of the award used to measure the expense to be recognized over the service period. Changes are required to be applied prospectively to all excess tax benefits and deficiencies resulting from the exercise of awards after the date of adoption. The ASU requires a "modified retrospective" approach application for excess tax benefits that were not previously recognized in situations where the tax deduction did not reduce current taxes payable. For the three-month period ended June 30, 2017, the Company recorded an income tax benefit of $2,675,000 related to the excess tax benefit of exercised awards during the period, that would have been recorded in additional paid-in capital during prior years. For the six-month period ended June 30, 2017, the Company recorded an income tax benefit of $2,694,000 related to the excess tax benefit of exercised awards during the period, that would have been recorded in additional paid-in capital during prior years. As the end result is dependent on the future value of the Company's stock as well as the timing of employee exercises, the amount of future impact cannot be quantified at this time. The Company has elected to continue to estimate forfeitures expected to occur to determine the share-based compensation expense. In August 2016, the FASB issued ASU No. 2016-15, “Statement of Cash Flows (Topic 230) Classification of Certain Cash Receipts and Cash Payments.” The update addresses eight specific cash flow issues with the objective of reducing the existing diversity in practice. This ASU is effective for public business entities for fiscal years beginning after December 15, 2017 and for interim periods within those fiscal years. The amendments in this update may be applied retrospectively or prospectively and early adoption is permitted. The Company does not believe that this guidance will have a material impact on its consolidated financial statements. In January 2017, the FASB issued ASU No. 2017-04,"Intangibles-Goodwill and Other (Topic 350) Simplifying the Test for Goodwill Impairment." The update eliminates Step 2 from the goodwill impairment test. This ASU is effective for fiscal years beginning after December 15, 2019. The amendments in this update should be applied on a prospective basis. The Company is currently assessing the impact the adoption of ASU 2017-04 will have on its consolidated financial statements. All other ASUs issued and not yet effective for the six months ended June 30, 2017 , and through the date of this report, were assessed and determined to be either not applicable or are expected to have minimal impact on the Company's financial position or results of operations.

Acquisition of Stability Inc.

Acquisition of Stability Inc.	6 Months Ended
	Jun. 30, 2017
Business Combinations [Abstract]
Acquisition of Stability Inc.	Acquisition of Stability Inc. On January 13, 2016, the Company completed the acquisition of Stability Inc., d/b/a Stability Biologics ("Stability"), a provider of human tissue products to surgeons, facilities and distributors serving the surgical, spine and orthopedic sectors of the healthcare industry. As a result of this transaction, the Company acquired all of the outstanding shares of Stability in exchange for $6,000,000 cash, $3,346,000 in stock, represented by 441,009 shares of our common stock, and assumed debt of $1,771,000 . Additional one time costs incurred in connection with the transaction totaled $1,088,000 and were included within selling, general and administrative expenses on our Consolidated Statements of Operations in the first quarter of 2016. Contingent consideration may be payable in a formula determined by sales less certain expenses for the years 2016 and 2017. The contingent consideration was valued at $17,450,000 as part of the acquisition accounting and is shown in the schedule below as fair value of earn-out. The Company used a third party specialist to assist us with the valuation. However, the purchase price allocation figures should be attributed to the Company and not to the third party valuation firm. The Company anticipates that any payments to be made will approximate the fair value of the contingent consideration of $17,450,000 determined as of the acquisition date and we have not adjusted the accrued earn-out liability recorded as part of the acquisition accounting except to record interest expense. The contingent consideration was classified as a liability and is adjusted to fair value at each reporting period until payment is made with the changes in fair value recognized as a period expense. The Company has evaluated the contingent consideration for accounting purposes under GAAP and has determined that the contingent consideration is within the scope of ASC 480 "Distinguishing Liabilities from Equity" whereby a financial instrument, other than an outstanding share, that embodies a conditional obligation that the issuer may settle by issuing a variable number of its equity shares shall be classified as a liability if, at inception, the monetary value of the obligation is based solely or predominantly on variations in something other than the fair value of the issuer’s equity shares. The actual purchase price was based on cash paid, the fair value of our stock on the date of the acquisition, and direct costs associated with the acquisition. The fair value of stock consideration was determined as set forth below: Common Share Price at Closing on January 13, 2016 $ 8.43 Multiplied by: Number of Common Shares Transferred to the Sellers 441,009 Indicated Value of Equity Consideration (on a Freely Tradable Interest Basis) $ 3,717,706 Less: Marketability Discount 10% [a] (371,771 ) Fair Value of Equity Consideration Transferred $ 3,345,935 [a] Shares transferred to the Stability sellers were restricted securities pursuant to Rule 144. As such, the sellers were prevented from selling the shares for a period of six months. In addition, they were subject to contractual lockups which restricted sales for up to twelve months post-transaction. The actual purchase price has been allocated as follows (in thousands): Cash paid at closing $ 6,000 Working capital adjustment (480 ) Common stock issued (441,009 shares) 3,346 Assumed debt 1,771 Fair value of earn-out 17,450 Total fair value of purchase price $ 28,087 Net assets acquired: Debt-free working capital $ 2,456 Other long-term assets 199 Property, plant and equipment 1,375 Deferred tax liability (5,896 ) Subtotal (1,866 ) Intangible assets: Customer relationships 5,330 Patents and know-how 6,790 Trade names and trademarks 450 Non compete agreements 830 Licenses and permits 390 Subtotal 13,790 Goodwill 16,163 Total Assets Purchased $ 28,087 Working capital and other assets were composed of the following (in thousands): Working capital Cash $ 140 Prepaid Expenses and other current assets 100 Accounts receivable 2,001 Federal and state taxes receivable 28 Inventory 9,002 Accounts payable and accrued expenses (8,815 ) Debt-free working capital $ 2,456 Current portion of long term debt $ (194 ) Long-term debt (560 ) Line of Credit (932 ) Shareholder loan (85 ) Assumed Debt (1,771 ) Net working capital $ 685 The acquisition was accounted for as a purchase business combination as defined by FASB Topic 805 - "Business Combinations." The fair value of the contingent consideration is measured as a Level 3 instrument. The contingent consideration liability was recorded at fair value on the acquisition date. Increases or decreases in the fair value of contingent consideration can result from changes in anticipated revenue levels and changes in assumed discount periods and rates. As the fair value measured is based on significant inputs that are not observable in the market, they are categorized as Level 3. The income valuation approach was applied in determining the fair value of the contingent consideration using a discounted cash flow valuation technique with significant unobservable inputs comprised of projected sales and certain expenses. The following table presents a reconciliation of those liabilities measured at fair value on a recurring basis using unobservable inputs (Level 3) (in thousands): Contingent Consideration Obligation Balance December 31, 2016 $ 17,450 Changes in fair value of contingent consideration (a) 124 Payment of contingent consideration — Balance June 30, 2017 $ 17,574 (a) Amount is included in interest expense in the consolidated statement of operations. The values assigned to intangible assets are subject to amortization. The intangible assets were assigned the following lives for amortization purposes: Estimated useful life (in years) Intangible asset: Customer relationships 12 Patents and know-how 20 Trade name and Trademarks Indefinite Non compete agreements 4 Licenses and permits 2 Goodwill consists of the excess of the purchase price paid over the identifiable net assets and liabilities acquired at fair value. Goodwill is attributable to the assembled workforce of Stability and the synergies expected to arise following the acquisition. Goodwill is not expected to be deductible for tax purposes. Goodwill was determined using the residual method based on an independent appraisal of the assets and liabilities acquired in the transaction. The Company used a third-party specialist to assist it with estimating the fair value of Goodwill. However, the purchase price allocation figures and residual Goodwill should be attributed to the Company and not to the third-party valuation firm. Goodwill is tested for impairment on an annual basis as defined by FASB Topic 350 - "Intangibles - Goodwill and Other". Pursuant to the terms of the earn-out arrangement, the Company is obligated to pay, for each of the years ending December 31, 2016 and 2017, an amount equal to one times the gross profit margin from (a) the net sales of Stability products sold by Stability's or the Company's sales personnel and (b) the net sales of Company products sold by Stability's sales personnel; provided, however, if the amount of such net sales for either earn-out period is less than $12 million , the earn-out amount will decrease to 0.5 times the gross profit margin for such earn-out period. The full details of the earn-out arrangement are set forth in the acquisition agreement which is filed as Exhibit 2.1 to the Company's Form 8-K filed on January 13, 2016. The amount of the contingent consideration recognized as of the acquisition date was $17,450,000 . The structure of the earn-out is such that the Sellers should always earn at least some payout during the applicable periods. The payout to the Sellers is not capped, and therefore there is no pre-determined upper bound to the undiscounted range. Therefore an estimate of the range of outcomes cannot be estimated. As the Company is managed and operates in one segment, and since Stability was merged with the Company's existing operations, the Company has determined that disaggregation of the Company's operating results to provide the amount of revenue and earnings for Stability since the acquisition date is impracticable.

Inventories

Inventories	6 Months Ended
	Jun. 30, 2017
Inventory Disclosure [Abstract]
Inventories	Inventories Inventories consisted of the following items as of June 30, 2017 , and December 31, 2016 (in thousands): June 30, 2017 December 31, 2016 Raw materials $ 786 $ 1,148 Work in process 6,228 6,677 Finished goods 9,132 10,817 Inventory, gross 16,146 18,642 Reserve for obsolescence (1,113 ) (828 ) Inventory, net $ 15,033 $ 17,814

Property and Equipment

Property and Equipment	6 Months Ended
	Jun. 30, 2017
Property, Plant and Equipment [Abstract]
Property and Equipment	Property and Equipment Property and equipment consisted of the following as of June 30, 2017 , and December 31, 2016 (in thousands): June 30, December 31, Leasehold improvements $ 3,323 $ 3,274 Lab and clean room equipment 10,226 8,666 Furniture and office equipment 8,700 7,051 Construction in progress 2,736 3,300 Property and equipment, gross 24,985 22,291 Less accumulated depreciation (10,566 ) (8,505 ) Property and equipment, net $ 14,419 $ 13,786 Included in net property and equipment is approximately $427,000 of equipment covered under capital leases. The corresponding liability of approximately $15,000 is included in other liabilities in the accompanying Condensed Consolidated Balance Sheets. The interest rate for the lease is approximately 12% with a maturity date of January 2018. Also included in net property and equipment is approximately $1.0 million in leasehold improvements paid for by the landlord of the Company's main facility with a corresponding liability included in other liabilities which is amortized over the term of the lease. Depreciation expense for the six months ended June 30, 2017 and 2016 , was approximately $2,061,000 and $1,555,000 , respectively, and approximately $1,115,000 and $821,000 for the three months ended June 30, 2017 and 2016 , respectively.

Intangible Assets and Royalty A

Intangible Assets and Royalty Agreement	6 Months Ended
	Jun. 30, 2017
Goodwill and Intangible Assets Disclosure [Abstract]
Intangible Assets and Royalty Agreement	Intangible Assets and Royalty Agreement Intangible assets are summarized as follows (in thousands): Weighted June 30, 2017 December 31, 2016 Cost Cost Licenses (a) (b) (c) (d) 7 years $ 1,399 $ 1,399 Patents & Know-How (b) (d) 19 years 14,842 14,839 Customer & Supplier Relationships (b) (d) 13 years 9,091 9,091 Tradenames & Trademarks (d) indefinite 1,458 1,458 Non-compete agreements 4 years 830 830 In Process Research & Development (b) various 25 25 Patents in Process (c) various 2,669 2,618 Total 30,314 30,260 Less Accumulated amortization and impairment charges (8,025 ) (6,992 ) Net $ 22,289 $ 23,268 (a) On January 29, 2007, the Company acquired a license from Shriners Hospitals for Children and University of South Florida Research Foundation, Inc. in the amount of $996,000 . Within 30 days after the receipt by the Company of approval by the FDA allowing the sale of the first licensed product, the Company is required to pay an additional $200,000 to the licensor. Due to its contingent nature, this amount is not recorded as a liability. The Company will also be required to pay a royalty of 3% on all commercial sales revenue from the licensed products. The Company is also obligated to pay a $50,000 minimum annual royalty payment over the life of the license. As of June 30, 2017 , the license was fully amortized. (b) On January 5, 2011, the Company acquired Surgical Biologics, LLC. As a result, the Company recorded intangible assets for Customer & Supplier Relationships of $3,761,000 , Patents & Know-How of $7,690,000 , Licenses of $13,000 , Tradenames & Trademarks of $1,008,000 and In-Process Research & Development of $25,000 . For the six months ended June 30, 2017 , approximately $1,000 of costs associated with patents granted during the period were capitalized and included in Patents & Know-How subject to amortization over the life of the patents. (c) Patents in Process consist of capitalized external legal and other registration costs in connection with internally developed tissue-based patents that are pending. Once issued, the costs associated with a given patent will be included in Patents & Know-How under intangible assets subject to amortization. (d) On January 13, 2016, the Company acquired Stability. As a result, the Company recorded intangible assets for Patents & Know-How of $6,790,000 , Customer & Supplier Relationships of $5,330,000 , Non-compete agreements of $830,000 , Tradenames & Trademarks of $450,000 and Licenses of $390,000 . Amortization expense for the six months ended June 30, 2017 and 2016 , was approximately $1,033,000 and $1,257,000 , respectively, and $507,000 and $447,000 for the three months ended June 30, 2017 and 2016 , respectively. Expected future amortization of intangible assets as of June 30, 2017 , is as follows (in thousands): Year ending December 31, Estimated Amortization Expense 2017 (a) $ 1,012 2018 1,829 2019 1,829 2020 1,622 2021 1,622 Thereafter 12,917 $ 20,831 (a) Estimated amortization expense for the year ending December 31, 2017 , includes only amortization to be recorded after June 30, 2017 .

Credit Facility

Credit Facility	6 Months Ended
	Jun. 30, 2017
Debt Disclosure [Abstract]
Credit Facility	Credit Facility On October 12, 2015, the Company and its subsidiaries entered into a Credit Agreement (the "Credit Agreement") with certain lenders and Bank of America, N.A., as administrative agent. The Credit Agreement establishes a senior secured revolving credit facility in favor of the Company with a maturity date of October 12, 2018 and an aggregate lender commitment of up to $50 million . The Credit Agreement also provides for an uncommitted incremental facility of up to $35 million , which can be exercised as one or more revolving commitment increases or new term loans, all subject to certain customary terms and conditions set forth in the Credit Agreement. The obligations of the Company under the Credit Agreement are guaranteed by the Company's subsidiaries. The obligations of the loan parties under the Credit Agreement and the other credit documents are secured by liens on and security interests in substantially all of the assets of each of the loan parties and a pledge of the equity interests of each subsidiary owned by a loan party, subject to certain customary exclusions. Borrowings under the facility will bear interest at LIBOR plus 1.5% to 2.25% . Fees paid in connection with the initiation of the credit facility totaled approximately $500,000 . These deferred financing costs are being amortized to interest expense over the three -year life of the facility. The Credit Agreement contains customary representations, warranties, covenants and events of default, including restrictions on certain payments of dividends by the Company. As of June 30, 2017 , there were no outstanding revolving loans under the credit facility, and the Company was in compliance with all covenants under the Credit Agreement.

Net Income Per Share

Net Income Per Share	6 Months Ended
	Jun. 30, 2017
Earnings Per Share [Abstract]
Net Income Per Share	Net Income Per Share Basic net income per common share is computed using the weighted-average number of common shares outstanding during the period. Diluted net income per common share is computed using the weighted-average number of common and dilutive common equivalent shares from stock options, restricted stock and warrants using the treasury stock method. The following table sets forth the computation of basic and diluted net income per share (in thousands except share data): Three Months Ended June 30, Six Months Ended June 30, 2017 2016 2017 2016 Net income $ 8,069 $ 1,975 $ 12,396 $ 3,172 Denominator for basic earnings per share - weighted average shares 106,805,162 106,191,932 106,254,433 105,873,727 Effect of dilutive securities: Stock options and restricted stock outstanding(a) 10,480,703 5,956,483 9,601,884 6,221,324 Denominator for diluted earnings per share - weighted average shares adjusted for dilutive securities 117,285,865 112,148,415 115,856,317 112,095,051 Income per common share - basic $ 0.08 $ 0.02 $ 0.12 $ 0.03 Income per common share - diluted $ 0.07 $ 0.02 $ 0.11 $ 0.03 (a) Securities outstanding that are included in the computation above, utilizing the treasury stock method are as follows: Three Months Ended June 30, Six Months Ended June 30, 2017 2016 2017 2016 Outstanding Stock Options 2,352,318 5,644,128 1,729,407 5,805,870 Restricted Stock Awards 8,128,385 312,355 7,872,477 415,454 10,480,703 5,956,483 9,601,884 6,221,324

Equity

Equity	6 Months Ended
	Jun. 30, 2017
Equity [Abstract]
Equity	Equity Stock Incentive Plans The Company has four share-based compensation plans which provide for the granting of equity awards, including qualified incentive and non-qualified stock options, stock appreciation awards and restricted stock awards to employees, directors, consultants and advisors: the MiMedx Group, Inc. 2016 Equity and Cash Incentive Plan (the "2016 Plan"), which was approved by shareholders on May 18, 2016; the MiMedx Group, Inc. Assumed 2006 Stock Incentive Plan (the “Assumed 2006 Plan”); the MiMedx Inc. 2007 Assumed Stock Plan (the “Assumed 2007 Plan”); and the MiMedx Group Inc. Amended and Restated Assumed 2005 Stock Plan (the “Assumed 2005 Plan”). The awards are subject to a vesting schedule as set forth in each individual agreement. The Company currently intends to use only the 2016 Plan to make future grants. Stock Options Activity with respect to the stock options is summarized as follows: Number of Shares Weighted- Average Exercise Price Weighted-Average Remaining Contractual Term (in years) Aggregate Intrinsic Value Outstanding at January 1, 2017 12,552,608 $ 3.61 Granted — $ — Exercised (1,957,572 ) $ 4.70 Unvested options forfeited (25,005 ) $ 6.46 Vested options expired (66,825 ) $ 5.71 Outstanding at June 30, 2017 10,503,206 $ 3.39 4.91 $ 121,705,038 Vested at June 30, 2017 10,358,873 $ 3.32 4.87 $ 120,706,504 Vested or expected to vest at June 30, 2017 (a) 10,504,435 $ 3.38 4.87 $ 121,696,530 (a) Includes forfeiture-adjusted unvested shares. The intrinsic value of the options exercised during the six months ended June 30, 2017 , was approximately $13,104,345 . Following is a summary of stock options outstanding and exercisable at June 30, 2017 : Options Outstanding Options Exercisable Range of Exercise Prices Number outstanding Weighted-Average Remaining Contractual Term (in years) Weighted- Average Exercise Price Number Exercisable Weighted- Average Exercise Price $0.70 - $1.09 1,099,429 3.1 $ 0.91 1,099,429 $ 0.91 $1.10 - $1.65 4,297,879 4.0 1.30 4,297,879 1.30 $2.45 - $3.75 909,853 5.2 2.77 909,853 2.77 $3.95 - $5.99 1,916,931 5.9 5.18 1,918,965 5.18 $6.02 - $9.13 2,120,489 6.6 7.04 2,028,160 7.04 $9.22 - $10.99 158,625 7.5 10.05 104,587 10.05 10,503,206 4.9 $ 3.39 10,358,873 $ 3.32 Total unrecognized compensation expense related to granted stock options at June 30, 2017 , was approximately $227,673 and will be charged to expense ratably through December 2017. The fair value of options granted by the Company is estimated on the date of grant using the Black-Scholes-Merton option-pricing model that uses assumptions for expected volatility, expected dividends, expected term, and the risk-free interest rate. Expected volatilities are based on historical volatility of peer companies and other factors estimated over the expected term of the options. The term of employee options granted is derived using the “simplified method,” which computes expected term as the mid point between the weighted average time to vesting and the contractual maturity. The simplified method was used due to the Company's lack of sufficient historical data to provide a reasonable basis upon which to estimate the expected term due to the limited period of time its equity shares have been publicly traded. The term for non-employee options is generally based upon the contractual term of the option. The risk-free rate is based on the U.S. Treasury yield curve in effect at the time of grant for the period of the expected term or contractual term as described. There were no options granted during the six months ended June 30, 2017 and June 30, 2016 . Restricted Stock Awards Activity with respect to restricted stock awards for the six months ended June 30, 2017 is summarized as follows and includes 17,539 shares of common stock valued at approximately $166,000 which were issued under the 2016 Plan to a consultant in return for services performed: Number of Weighted-Average Grant Date Unvested at January 1, 2017 3,828,445 $8.53 Granted 2,833,678 8.82 Vested (1,288,485 ) 8.33 Forfeited (192,198 ) 8.66 Unvested at June 30, 2017 5,181,440 $8.74 As of June 30, 2017 , there was approximately $35,526,766 of total unrecognized stock-based compensation related to time-based, nonvested restricted stock. That expense is expected to be recognized on a straight-line basis over a weighted-average period of 2.16 years, which approximates the remaining vesting period of these grants. All shares noted above as unvested are considered issued and outstanding at June 30, 2017 . For the three and six months ended June 30, 2017 and 2016 , the Company recognized stock-based compensation as follows (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2017 2016 2017 2016 Cost of sales $ 138 $ 95 $ 274 $ 190 Research and development 143 155 277 360 Selling, general and administrative 4,974 4,259 9,375 8,574 $ 5,255 $ 4,509 $ 9,926 $ 9,124 Treasury Stock On May 12, 2014, our Board of Directors authorized the repurchase of up to $10 million of our common stock from time to time, through December 31, 2014. Our Board subsequently extended the program until December 31, 2017, and increased the total authorization to $100 million as of July 26, 2017. The timing and amount of repurchases will depend upon the Company's stock price, economic and market conditions, regulatory requirements and other corporate considerations. The Company may initiate, suspend or discontinue purchases under the stock repurchase program at any time. For the six months ended June 30, 2017 , the Company purchased 1,685,993 shares of its common stock for a purchase price of approximately $14,693,000 before brokerage commissions of approximately $51,000 . As of June 30, 2017 , the Company had approximately $15,243,000 of availability remaining under the repurchase program. In addition, the Company purchased 313,563 shares surrendered by employees to satisfy tax withholding obligations upon vesting of restricted stock for the six months ended June 30, 2017 . Additionally, for the six months ended June 30, 2017 , the Company reissued 2,277,073 shares from the Treasury for restricted stock grants and stock option exercises, net of forfeitures, with an aggregate carrying value of approximately $18,659,439 .

Income taxes

Income taxes	6 Months Ended
	Jun. 30, 2017
Income Tax Disclosure [Abstract]
Income taxes	Income taxes The effective tax rates for continuing operations of (14.2)% and 42.7% for the three months ended June 30, 2017 and June 30, 2016, respectively, were determined using an estimated annual effective tax rate and includes the impact of discrete items of approximately ($3,560,000) in 2017 and $0 in 2016, respectively. The effective tax rates for continuing operations of 5.4% and 34.7% for the six months ended June 30, 2017 and June 30, 2016, respectively, were determined using an estimated annual effective tax rate and includes the impact of discrete items of approximately ($3,916,000) in 2017 and ($350,000) in 2016, respectively. As of June 2017, the projected annual effective tax rate for 2017 is 35.3% .

Supplemental disclosure of cash

Supplemental disclosure of cash flow and non-cash investing and financing activities	6 Months Ended
	Jun. 30, 2017
Supplemental Cash Flow Elements [Abstract]
Supplemental disclosure of cash flow and non-cash investing and financing activities	Supplemental disclosure of cash flow and non-cash investing and financing activities: Selected cash payments, receipts, and noncash activities are as follows (in thousands): Six Months Ended June 30, 2017 2016 Cash paid for interest $ 204 $ 76 Income taxes paid 8,289 631 Share issuance of 441,009 shares in connection with acquisition — 3,346 Share issuances of 17,539 and 20,406 shares in exchange for services performed, respectively 166 173

Contractual Commitments and Con

Contractual Commitments and Contingencies	6 Months Ended
	Jun. 30, 2017
Commitments and Contingencies Disclosure [Abstract]
Contractual Commitments and Contingencies	Contractual Commitments and Contingencies Contractual Commitments In addition to the capital leases noted above in Note 5, the Company has entered into operating lease agreements for facility space and equipment. These leases expire over the next seven years and generally contain renewal options. The Company anticipates that most of these leases will be renewed or replaced upon expiration. The Company also has commitments for meeting space. The estimated annual lease payments, meeting space commitments are as follows (in thousands): 12-month period ended June 30, 2018 $ 2,918 2019 2,133 2020 1,907 2021 1,618 2022 1,600 Thereafter 1,170 $ 11,346 Rent expense for the six months ended June 30, 2017 and 2016 , was approximately $842,000 and $859,000 , respectively, and was approximately $407,000 and $436,000 for the three months ended June 30, 2017 and 2016 , respectively, and is allocated among cost of sales, research and development and selling, general and administrative expenses. Letters of Credit As a condition of the lease for the Company's main facility, the Company is obligated under standby letters of credit in the amount of approximately $52,000 . FDA Untitled Letter and Draft Guidance On August 28, 2013, the FDA issued an Untitled Letter alleging that the Company's micronized allografts do not meet the criteria for regulation solely under Section 361 of the Public Health Service Act and that, as a result, the Company would need a biologics license to lawfully market those micronized products. Since the issuance of the Untitled Letter, the Company has been in discussions with the FDA to communicate its disagreement with the FDA's assertion that the Company's micronized allografts are more than minimally manipulated. To date, the FDA has not changed its position that the Company's micronized products are not eligible for marketing solely under Section 361 of the Public Health Service Act. The Company continues to market its micronized products but is also pursuing the Biologics License Application (“BLA”) process for certain of its micronized products. On December 22, 2014, the FDA issued for comment “Draft Guidance for Industry and FDA Staff: Minimal Manipulation of Human Cells, Tissues, and Cellular and Tissue-Based Products.” Essentially the Minimal Manipulation draft guidance takes the same position with respect to micronized amniotic tissue that it took in the Untitled Letter to MiMedx 16 months earlier. The Company submitted comments asserting that the Minimal Manipulation draft guidance represents agency action that goes far beyond the FDA’s statutory authority, is inconsistent with existing HCT/P regulations and the FDA’s prior positions, and is internally inconsistent and scientifically unsound. On October 28, 2015, the FDA issued for comment, "Draft Guidance for Industry and FDA Staff: Homologous Use of Human Cells, Tissues, and Cellular and Tissue-Based Products." The Company submitted comments on this Homologous Use draft guidance as well. On September 12 and 13, 2016, the FDA held a public hearing to obtain input on the Homologous Use draft guidance and the previously released Minimal Manipulation draft guidance, as well as other recently issued guidance documents on HCT/Ps. The Company awaits further decision from the FDA on the draft guidances, but anticipates this will be a lengthy process. If the FDA does allow the Company to continue to market a micronized form of its sheet allografts without a biologics license either prior to or after finalization of the draft guidance documents, it may impose conditions, such as labeling restrictions and compliance with cGMP. Although the Company is preparing for these requirements in connection with its pursuit of a BLA for certain of its micronized products, earlier compliance with these conditions requires significant additional time and cost investments by the Company. It is also possible that the FDA will not allow the Company to market any form of a micronized product without a biologics license even prior to finalization of the draft guidance documents and could even require the Company to recall its micronized products. Revenues from micronized products comprised approximately 10% of the Company's revenues in 2016. Former Employee Litigation On December 13, 2016, the Company filed lawsuits against former employees Jess Kruchoski (in the lawsuit styled MiMedx Group, Inc. v. Academy Medical, LLC, et. al. in the County Court of the Fifteenth Judicial Circuit in and for Palm Beach County, Florida (the “Florida Action”)) and Luke Tornquist (in the lawsuit styled MiMedx Group, Inc., v. Luke Tornquist in the Superior Court for Cobb County, Georgia, which was removed to the United States District Court for the Northern District of Georgia (the “Georgia Action”)). Both the Florida and Georgia Actions assert claims against Messrs. Kruchoski and Tornquist that each of them violated their restrictive covenants entered into with the Company, that each of them misappropriated trade secrets of the Company, that each of them tortiously interfered with contracts between the Company and its customers and employees and that each of them breached his duty of loyalty owed to the Company, among other claims. The Company sought injunctive relief against each of Mr. Kruchoski and Tornquist to enforce its restrictive covenants in place with each of them. The Company obtained consent injunctions from each party enforcing those covenants. The Company is also seeking monetary damages in an amount to be determined at trial On December 15, 2016, Messrs. Kruchoski and Tornquist filed a lawsuit in the United States District Court of Minnesota (the “Minnesota Action”) against the Company and the Company’s Chairman and Chief Executive Officer, Parker Petit. The plaintiffs in this lawsuit each claimed that their employment with the Company was terminated in retaliation for their complaints about the Company’s alleged business practices in violation of the Dodd-Frank Act, 15 U.S.C. § 78u-6(h), and was an unlawful discharge in violation of Minnesota Statutes Section 181.931 subdivision 1. Mr. Kruchoski also claimed that the termination of his employment with the Company constituted marital status discrimination and familial status discrimination in violation of the Minnesota Human Rights Act. Messrs. Kruchoski and Tornquist also claimed that Mr. Petit tortiously interfered with their employment relationships with the Company. On January 26, 2017, the Company and Mr. Petit filed motions to dismiss the Minnesota Action. In response, Messrs. Kruchoski and Tornquist voluntarily dismissed the Minnesota Action without prejudice on February 7, 2017. On February 7, 2017, Mr. Tornquist filed his Answer and Counterclaims in the Georgia Action wherein he asserted claims similar to those he had asserted in the Minnesota Action, with the exception that he did not include a claim of tortious interference against Mr. Petit. On February 13, 2017, the Judge in the Georgia Action entered a Consent Order enforcing the restrictive covenants against Mr. Tornquist. On May 5, 2017, Mr. Tornquist filed an amended Answer and Counterclaim, adding claims for breach of contract and violations of O.C.G.A 10-1-702 relating to claims for unpaid commissions and common law defamation claims against the Company and Mr. Petit. The Company and Mr. Petit both filed motions to dismiss the defamation claims, which are currently pending before the Court. On February 27, 2017, the Judge in the Florida Action entered a Consent Order enforcing the restrictive covenants against Mr. Kruchoski. The Defendants in the Florida Action filed motions to dismiss, which were denied on July 10, 2017. The Company filed an Amended Complaint on July 12, 2017 asserting all the same causes of action for the purpose of making non-substantive edits requested by the Court. On February 15, 2017, Mr. Kruchoski filed a new lawsuit in the United States District Court for the Northern District of Georgia against the Company and Mr. Petit, making many of the same allegations in that suit as were made in the Minnesota Action, with the addition of claims against the Company and Mr. Petit for defamation. In March 2017, the Company and Mr. Petit both filed motions to dismiss Mr. Kruchoski’s claims. On June 13, 2017, the Court granted the motions to dismiss, finding that Mr. Kruchoski’s claims are governed by the forum selection clause in his contracts and are compulsory counterclaims and should, therefore, be brought in the Florida Action. On January 15, 2017, the Company initiated a lawsuit against former employee and sales agent Tracy Lucas and his company, BioResolutions LLC d/b/a Halo Wound Solutions ("Halo") in the Iowa state district court for Polk County. The suit alleges breach of a sales agency contract against Mr. Lucas, and alleges conspiracy to breach MiMedx's employees' duties of loyalty, tortious interference with MiMedx's employee and customer relationships, and misappropriation of trade secrets against all defendants relating to the defendants' use of then-current MiMedx employees to sell or market Halo's products to various entities, including MiMedx's customers. Defendants filed a motion for judgment on the pleadings which was denied by the Court on June 27, 2017. The case is currently in the discovery phase. The Company continues to vigorously pursue its claims asserted in all of these actions and also to vigorously defend against the lawsuits and counterclaims asserted against it. Patent Litigation The Company continues to diligently enforce its intellectual property against several entities. Currently, there are four actions pending, as described below: The Liventa Action On April 22, 2014, the Company filed a patent infringement lawsuit in the United States District Court for the Northern District of Georgia against Liventa Bioscience, Inc. (formerly known as AFCell Medical, Inc.) ("Liventa"), Medline Industries, Inc. ("Medline") and Musculoskeletal Transplant Foundation, Inc. ("MTF") for permanent injunctive relief and unspecified damages (the "Liventa Action"). In addition to the allegations of infringement of the Company's patents, the lawsuit asserts that Liventa and Medline knowingly and willfully made false and misleading representations about their respective products to providers, patients, and in some cases, prospective investors. Though the terms of the agreement are confidential, the parties have reached a settlement of the false advertising claims for an undisclosed sum. The patent infringement claims are still pending as described below. The Company asserts that Liventa, Medline and MTF infringed and continue to infringe certain of the Company's patents relating to the MiMedx dehydrated human amnion/chorion membrane ("dHACM") allografts. MTF is the tissue processor while Liventa and Medline are the distributors of the allegedly infringing products. On May 30, 2014, defendants filed answers to the Complaint, denying the allegations in the Complaint. They also raised affirmative defenses of non-infringement, invalidity, laches and estoppel. MTF and Medline also filed counterclaims seeking declaratory judgments of non-infringement and invalidity. Defendants filed parallel Inter Partes Review ("IPR") proceedings which are discussed below. The Company expects the case to go to trial in 2017. The Bone Bank Action On May 16, 2014, the Company also filed a patent infringement lawsuit against Transplant Technology, Inc. d/b/a Bone Bank Allografts ("Bone Bank") and Texas Human Biologics, Ltd. ("Biologics") for permanent injunctive relief and unspecified damages (the "Bone Bank Action"). The Bone Bank Action was filed in the United States District Court for the Western District of Texas. This lawsuit similarly asserts that Bone Bank and Biologics infringed certain of the Company's patents through the manufacturing and sale of their placental-derived tissue graft products. On July 10, 2014, Defendants filed an answer to the Complaint, denying the allegations in the Complaint. They also raised affirmative defenses of non-infringement and invalidity and filed counterclaims seeking declaratory judgments of non-infringement and invalidity. Defendants also filed parallel IPR proceedings which are further discussed below. The Company expects the case to go to trial in 2017. The NuTech Action On March 2, 2015, the Company filed a patent infringement lawsuit against NuTech Medical, Inc. ("NuTech") and DCI Donor Services, Inc. ("DCI") for permanent injunctive relief and unspecified damages. This lawsuit was filed in the United States District Court for the Northern District of Alabama. The lawsuit alleges that NuTech and DCI have infringed and continue to infringe the Company's patents through the manufacture, use, sale, and/or offering of their tissue graft product. The lawsuit also asserts that NuTech knowingly and willfully made false and misleading representations about its products to customers and/or prospective customers. The case is currently in the discovery phase. The Vivex Action On April 1, 2016, the Company also filed a patent infringement lawsuit against Vivex BioMedical (“Vivex”) for permanent injunctive relief and unspecified damages (the "Vivex Action"). The lawsuit was filed in the United States District Court for the Northern District of Georgia. The patent at issue is the 8,709,494 patent (the "'494" patent). Vivex answered the Company’s complaint and filed counterclaims of non-infringement and invalidity. On January 4, 2017, the Court granted a joint motion to stay the proceedings pending the outcome of the Bone Bank Action. IPRs In addition to defending the claims in the pending district court litigations, defendants in the Liventa and Bone Bank cases challenged certain of the Company's patents in several IPR proceedings to avoid the high burden of proof of proving invalidity by "clear and convincing evidence" in the district court litigations. An inter partes review (or "IPR") is a request for a specialized group within the United States Patent and Trademark Office to review the validity of a plaintiff's patent claims. The defendants in the Bone Bank Action challenged the validity of the Company's 8,597,687 (the "'687" patent) and the '494 patent, while the defendants in the Liventa Action challenged the validity of the Company's 8,372,437 and 8,323,701 patents (the "'437" and "'701" patents, respectively). On June 29, 2015, the Patent Trial and Appeals Board ("PTAB") denied the Bone Bank defendants' request for institution of an IPR with respect to the '494 patent (EpiFix) on all seven challenged grounds. On August 18, 2015, the PTAB also denied the Liventa defendants' request for institution of an IPR with respect to the '701 patent (AmnioFix) on all six challenged grounds. That is, the PTAB decided in each case that the defendants failed to establish a reasonable likelihood that defendants would prevail in showing any of the challenged claims of the '494 or the '701 patent were unpatentable. On July 10, 2015, the PTAB issued an opinion allowing a review of the '687 patent to proceed, although on only two of the five challenged grounds. On July 7, 2016, the PTAB issued an opinion finding that the challenged claims, which relate to embossment and not configuration, were invalid for obviousness. The Company decided not to appeal the decision, as it impacted a non-core patent. On August 18, 2015, the PTAB issued an opinion allowing a review of the '437 patent to proceed, although only on one of the seven challenged grounds. On August 16, 2016, the PTAB issued an opinion finding that the challenged claims were unpatentable. MiMedx has filed an appeal of the PTAB’s decision regarding the '437 patent. Further, on March 31, 2017, Vivex filed a petition to initiate a new IPR with respect to the ‘494 patent, which the Company intends to vigorously oppose.

Schedule II - Valuation and Qua

Schedule II - Valuation and Qualifying Accounts	6 Months Ended
	Jun. 30, 2017
Valuation and Qualifying Accounts [Abstract]
Schedule II - Valuation and Qualifying Accounts	Schedule II Valuation and Qualifying Accounts MIMEDX GROUP, INC. AND SUBSIDIARIES SCHEDULE II VALUATION AND QUALIFYING ACCOUNTS Three and Six Months Ended June 30, 2017 and 2016 (in thousands) Balance at Additions charged to Expense or Revenue Deductions Balance at For the three months ended June 30, 2017 Allowance for doubtful accounts $ 6,769 $ 500 $ (50 ) $ 7,219 Allowance for product returns 5,037 2,439 (4,015 ) 3,461 Allowance for obsolescence 974 305 (166 ) 1,113 For the three months ended June 30, 2016 Allowance for doubtful accounts $ 3,872 $ 233 $ (19 ) $ 4,086 Allowance for product returns 1,708 2,106 (1,623 ) 2,191 Allowance for obsolescence 604 1,335 (159 ) 1,780 For the six months ended June 30, 2017 Allowance for doubtful accounts $ 4,842 $ 2,450 $ (73 ) $ 7,219 Allowance for product returns 4,894 5,070 (6,503 ) 3,461 Allowance for obsolescence 828 741 (456 ) 1,113 For the six months ended June 30, 2016 Allowance for doubtful accounts $ 3,270 $ 835 $ (19 ) $ 4,086 Allowance for product returns 1,262 3,467 (2,538 ) 2,191 Allowance for obsolescence 397 1,570 (187 ) 1,780

Significant Accounting Polici20

Significant Accounting Policies (Policies)	6 Months Ended
	Jun. 30, 2017
Accounting Policies [Abstract]
Basis of Presentation	Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) from 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. Changes to GAAP are established by the Financial Accounting Standards Board (“FASB”) in the form of Accounting Standards Updates (“ASU’’) to the FASB’s Accounting Standards Codification (“ASC”). In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation of the results of operations for the periods presented have been included. Operating results for the six months ended June 30, 2017 and 2016 , are not necessarily indicative of the results that may be expected for the fiscal year. The balance sheet at December 31, 2016 , has been derived from the audited consolidated financial statements at that date, but does not include all of the information and footnotes required by GAAP for complete financial statements. You should read these condensed consolidated financial statements together with the historical consolidated financial statements of the Company for the year ended December 31, 2016 , included in the Company's Annual Report on Form 10-K for the year ended December 31, 2016 , filed with the SEC on March 1, 2017.
Segment Reporting	The Company operates in one business segment, Regenerative Biomaterials, which includes the design, manufacture and marketing of products and tissue processing services for the Wound Care, Surgical, Sports Medicine, Ophthalmic and Dental market categories.
Use of Estimates	Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates.
Accounts Receivable	Accounts Receivable Accounts receivable represent amounts due from customers for which revenue has been recognized. Generally, the Company does not require collateral or any other security to support its receivables. The allowance for doubtful accounts is the Company’s best estimate of the amount of probable credit losses in the Company’s existing receivables. The Company determines the allowance based on factors such as historical collection experience, customers' current creditworthiness, customer concentrations, age of accounts receivable balance and general economic conditions that may affect the customers' ability to pay.
Goodwill	Goodwill consists of the excess of the purchase price paid over the identifiable net assets and liabilities acquired at fair value. Goodwill is attributable to the assembled workforce of Stability and the synergies expected to arise following the acquisition. Goodwill is not expected to be deductible for tax purposes. Goodwill was determined using the residual method based on an independent appraisal of the assets and liabilities acquired in the transaction. The Company used a third-party specialist to assist it with estimating the fair value of Goodwill. However, the purchase price allocation figures and residual Goodwill should be attributed to the Company and not to the third-party valuation firm. Goodwill is tested for impairment on an annual basis as defined by FASB Topic 350 - "Intangibles - Goodwill and Other".
Inventories	Inventories Inventories are valued at the lower of cost or market, using the first-in, first-out (FIFO) method. Inventory is tracked through Raw Material, WIP, and Finished Good stages as the product progresses through various production steps and stocking locations. Labor and overhead costs are absorbed through the various production processes up to when the work order closes. Historical yields and normal capacities are utilized in the calculation of production overhead rates. Reserves for inventory obsolescence are utilized to account for slow-moving inventory as well as inventory no longer needed due to diminished market demand.
Revenue Recognition	Revenue Recognition The Company sells its products through a combination of a direct sales force, independent stocking distributors and third party representatives in the U.S. and independent distributors in international markets. The Company recognizes revenue when title to the goods and risk of loss transfers to customers, provided there are no material remaining performance obligations required of the Company or any matters of customer acceptance. The Company records revenues from sales to our independent stocking distributors at the time the product is shipped to the distributor. Our stocking distributors, who sell the products to their customers or sub-distributors, contractually take title to the products and assume all risks of ownership at the time of shipment. Our stocking distributors are obligated to pay us the contractually agreed upon invoice price within specified terms regardless of when, if ever, they sell the products. Our customers and stocking distributors do not have any contractual rights of return or exchange other than for defective product or shipping error; however, in limited situations, we do accept returns or exchanges at our discretion. Some of the Company’s sales to Government accounts, including the Department of Veterans Affairs, were historically made through a distributor relationship with AvKARE Inc., which is a veteran-owned General Services Administration Federal Supply Schedule (FSS) contractor. The Company's agreement with AvKARE expired on June 30, 2017. Upon termination of the agreement, the Company has an obligation to repurchase AvKARE’s remaining inventory, within ninety (90) days in accordance with the terms of the agreement. As of June 30, 2017, the Company has estimated this liability and has included it in its allowance for product returns. A portion of the Company’s revenue is generated from consignment inventory maintained at hospitals or physicians' offices. Significant terms of our consignment agreements state that title to the inventory remains with the Company until the product, which has been segregated by the consignee, is withdrawn and therefore purchased by the consignee. The Consignee accepts all risk of loss and full responsibility for any product in the consignment inventory that may be opened, lost, stolen or damaged. The Company recognizes revenue when we are notified that product has been used or implanted. We make estimates of potential future sales returns, discounts and allowances related to current period product revenue and these are reflected as a reduction of revenue in the same period revenue is recognized. We base our estimate for sales returns, discounts and allowances on historical sales and product return information, including historical experience and actual and projected trend information as well as projected sales returns based on estimated usage and contractual arrangements. These estimates have historically been materially consistent with actual results. We continually evaluate new and current customers, including our stocking distributors, for collectability based on various factors including past history with the customer, evaluation of their creditworthiness, and current economic conditions. We only record revenue when collectability is reasonably assured.
Acquisitions	Acquisitions Results of operations of acquired companies are included in the Company’s results of operations as of the respective acquisition dates. The purchase price of each acquisition is allocated to the net assets acquired based on estimates of their fair values at the date of the acquisition. Any purchase price in excess of these net assets is recorded as goodwill. The allocation of purchase price in certain cases may be subject to revision based on the final determination of fair values during the measurement period, which may be up to one year from the acquisition date. Contingent consideration is recognized at the estimated fair value on the acquisition date. Subsequent changes, after the measurement period has expired, to the fair value of contingent payments are recognized in earnings. Contingent payments related to acquisitions consist of an earn out based on sales less direct production costs, and are valued using discounted cash flow techniques. The fair value of these payments is based upon probability-weighted future revenue estimates and increases or decreases as revenue estimates or expectation of timing of payments changes. The acquisition was accounted for as a purchase business combination as defined by FASB Topic 805 - "Business Combinations." The fair value of the contingent consideration is measured as a Level 3 instrument. The contingent consideration liability was recorded at fair value on the acquisition date. Increases or decreases in the fair value of contingent consideration can result from changes in anticipated revenue levels and changes in assumed discount periods and rates. As the fair value measured is based on significant inputs that are not observable in the market, they are categorized as Level 3. The income valuation approach was applied in determining the fair value of the contingent consideration using a discounted cash flow valuation technique with significant unobservable inputs comprised of projected sales and certain expenses.
Patent Costs	Patent Costs The Company incurs certain legal and related costs in connection with patent applications for tissue-based products and processes. The Company capitalizes such costs to be amortized over the expected life of the patent to the extent that an economic benefit is anticipated from the resulting patent or alternative future use is available to the Company and are included in Intangible Assets in the Condensed Consolidated Balance Sheets.
Treasury Stock	Treasury Stock The Company accounts for the purchase of treasury stock under the cost method. Treasury stock which is reissued for the exercise of option grants and the issuance of restricted stock grants is accounted for on a first-in first-out (FIFO) basis.
Recently Issued and Adopted Accounting Standards	Recently Issued and Adopted Accounting Standards The Company considers the applicability and impact of all ASUs issued, both effective and not yet effective. In May 2014, the FASB issued ASU 2014-09, “Revenue Recognition - Revenue from Contracts with Customers” (ASU 2014-09) that requires companies to recognize revenue when a customer obtains control rather than when companies have transferred substantially all risks and rewards of a good or service. This update is effective for annual reporting periods beginning on or after December 15, 2017 and interim periods therein and requires expanded disclosures. We are in the process of evaluating the impact of the adoption of the standard. We have identified one revenue stream from our contracts with customers: product sales. While our evaluation of our contracts for product sales is in its initial stage, based upon the results of our work to date we currently do not expect the application of the new standard to these contracts to have a material impact to our consolidated financial statements either at initial implementation or on an ongoing basis. In February 2016, the FASB issued ASU No. 2016-02, "Leases (Topic 842)." The core principle of Topic 842 is that a lessee should recognize the assets and liabilities that arise from both capital and operating leases. ASU 2016-02 is effective for public companies for annual reporting periods beginning after December 15, 2018, and interim periods within those fiscal years. The guidance may be adopted prospectively or retrospectively and early adoption is permitted. The Company is currently assessing the impact the adoption of ASU 2016-02 will have on its consolidated financial statements. In March 2016, the FASB issued ASU 2016-09, "Improvements to Employee Share-Based Payment Accounting," which simplifies several aspects of the accounting for share-based payment award transactions including (a) income tax consequences; (b) classification of awards as either debt or equity liabilities; and (c) classification on the statement of cash flows. The amendments are effective for public business entities for annual periods beginning after December 15, 2016, and interim periods within those annual periods. The Company has adopted this ASU as of January 1, 2017. The primary amendment impacting the Company's financial statements is the requirement for excess tax benefits or shortfalls on the exercise of stock-based compensation awards to be presented in income tax expense in the Consolidated Statements of Income during the period the award is exercised as opposed to being recorded in Additional paid-in capital on the Consolidated Balance Sheets. The excess tax benefit or shortfall is calculated as the difference between the fair value of the award on the date of exercise and the fair value of the award used to measure the expense to be recognized over the service period. Changes are required to be applied prospectively to all excess tax benefits and deficiencies resulting from the exercise of awards after the date of adoption. The ASU requires a "modified retrospective" approach application for excess tax benefits that were not previously recognized in situations where the tax deduction did not reduce current taxes payable. For the three-month period ended June 30, 2017, the Company recorded an income tax benefit of $2,675,000 related to the excess tax benefit of exercised awards during the period, that would have been recorded in additional paid-in capital during prior years. For the six-month period ended June 30, 2017, the Company recorded an income tax benefit of $2,694,000 related to the excess tax benefit of exercised awards during the period, that would have been recorded in additional paid-in capital during prior years. As the end result is dependent on the future value of the Company's stock as well as the timing of employee exercises, the amount of future impact cannot be quantified at this time. The Company has elected to continue to estimate forfeitures expected to occur to determine the share-based compensation expense. In August 2016, the FASB issued ASU No. 2016-15, “Statement of Cash Flows (Topic 230) Classification of Certain Cash Receipts and Cash Payments.” The update addresses eight specific cash flow issues with the objective of reducing the existing diversity in practice. This ASU is effective for public business entities for fiscal years beginning after December 15, 2017 and for interim periods within those fiscal years. The amendments in this update may be applied retrospectively or prospectively and early adoption is permitted. The Company does not believe that this guidance will have a material impact on its consolidated financial statements. In January 2017, the FASB issued ASU No. 2017-04,"Intangibles-Goodwill and Other (Topic 350) Simplifying the Test for Goodwill Impairment." The update eliminates Step 2 from the goodwill impairment test. This ASU is effective for fiscal years beginning after December 15, 2019. The amendments in this update should be applied on a prospective basis. The Company is currently assessing the impact the adoption of ASU 2017-04 will have on its consolidated financial statements. All other ASUs issued and not yet effective for the six months ended June 30, 2017 , and through the date of this report, were assessed and determined to be either not applicable or are expected to have minimal impact on the Company's financial position or results of operations.
Net Income (Loss) Per Share	Net Income Per Share Basic net income per common share is computed using the weighted-average number of common shares outstanding during the period. Diluted net income per common share is computed using the weighted-average number of common and dilutive common equivalent shares from stock options, restricted stock and warrants using the treasury stock method.

Acquisition of Stability Inc. (

Acquisition of Stability Inc. (Tables)	6 Months Ended
	Jun. 30, 2017
Business Combinations [Abstract]
Schedule of Acquisition of Stability Inc.	The actual purchase price was based on cash paid, the fair value of our stock on the date of the acquisition, and direct costs associated with the acquisition. The fair value of stock consideration was determined as set forth below: Common Share Price at Closing on January 13, 2016 $ 8.43 Multiplied by: Number of Common Shares Transferred to the Sellers 441,009 Indicated Value of Equity Consideration (on a Freely Tradable Interest Basis) $ 3,717,706 Less: Marketability Discount 10% [a] (371,771 ) Fair Value of Equity Consideration Transferred $ 3,345,935 [a] Shares transferred to the Stability sellers were restricted securities pursuant to Rule 144. As such, the sellers were prevented from selling the shares for a period of six months. In addition, they were subject to contractual lockups which restricted sales for up to twelve months post-transaction. The actual purchase price has been allocated as follows (in thousands): Cash paid at closing $ 6,000 Working capital adjustment (480 ) Common stock issued (441,009 shares) 3,346 Assumed debt 1,771 Fair value of earn-out 17,450 Total fair value of purchase price $ 28,087 Net assets acquired: Debt-free working capital $ 2,456 Other long-term assets 199 Property, plant and equipment 1,375 Deferred tax liability (5,896 ) Subtotal (1,866 ) Intangible assets: Customer relationships 5,330 Patents and know-how 6,790 Trade names and trademarks 450 Non compete agreements 830 Licenses and permits 390 Subtotal 13,790 Goodwill 16,163 Total Assets Purchased $ 28,087 Working capital and other assets were composed of the following (in thousands): Working capital Cash $ 140 Prepaid Expenses and other current assets 100 Accounts receivable 2,001 Federal and state taxes receivable 28 Inventory 9,002 Accounts payable and accrued expenses (8,815 ) Debt-free working capital $ 2,456 Current portion of long term debt $ (194 ) Long-term debt (560 ) Line of Credit (932 ) Shareholder loan (85 ) Assumed Debt (1,771 ) Net working capital $ 685
Reconciliation of Contingent Liabilities Related to Business Acquisitions	The following table presents a reconciliation of those liabilities measured at fair value on a recurring basis using unobservable inputs (Level 3) (in thousands): Contingent Consideration Obligation Balance December 31, 2016 $ 17,450 Changes in fair value of contingent consideration (a) 124 Payment of contingent consideration — Balance June 30, 2017 $ 17,574 (a) Amount is included in interest expense in the consolidated statement of operations.
Finite-Lived and Indefinite-Lived Intangible Assets Acquired	The intangible assets were assigned the following lives for amortization purposes: Estimated useful life (in years) Intangible asset: Customer relationships 12 Patents and know-how 20 Trade name and Trademarks Indefinite Non compete agreements 4 Licenses and permits 2

Inventories (Tables)

Inventories (Tables)	6 Months Ended
	Jun. 30, 2017
Inventory Disclosure [Abstract]
Inventory	Inventories consisted of the following items as of June 30, 2017 , and December 31, 2016 (in thousands): June 30, 2017 December 31, 2016 Raw materials $ 786 $ 1,148 Work in process 6,228 6,677 Finished goods 9,132 10,817 Inventory, gross 16,146 18,642 Reserve for obsolescence (1,113 ) (828 ) Inventory, net $ 15,033 $ 17,814

Property and Equipment (Tables)

Property and Equipment (Tables)	6 Months Ended
	Jun. 30, 2017
Property, Plant and Equipment [Abstract]
Summary of Property and Equipment	Property and equipment consisted of the following as of June 30, 2017 , and December 31, 2016 (in thousands): June 30, December 31, Leasehold improvements $ 3,323 $ 3,274 Lab and clean room equipment 10,226 8,666 Furniture and office equipment 8,700 7,051 Construction in progress 2,736 3,300 Property and equipment, gross 24,985 22,291 Less accumulated depreciation (10,566 ) (8,505 ) Property and equipment, net $ 14,419 $ 13,786

Intangible Assets and Royalty24

Intangible Assets and Royalty Agreement (Tables)	6 Months Ended
	Jun. 30, 2017
Goodwill and Intangible Assets Disclosure [Abstract]
Intangible Assets Activity Summary	Intangible assets are summarized as follows (in thousands): Weighted June 30, 2017 December 31, 2016 Cost Cost Licenses (a) (b) (c) (d) 7 years $ 1,399 $ 1,399 Patents & Know-How (b) (d) 19 years 14,842 14,839 Customer & Supplier Relationships (b) (d) 13 years 9,091 9,091 Tradenames & Trademarks (d) indefinite 1,458 1,458 Non-compete agreements 4 years 830 830 In Process Research & Development (b) various 25 25 Patents in Process (c) various 2,669 2,618 Total 30,314 30,260 Less Accumulated amortization and impairment charges (8,025 ) (6,992 ) Net $ 22,289 $ 23,268 (a) On January 29, 2007, the Company acquired a license from Shriners Hospitals for Children and University of South Florida Research Foundation, Inc. in the amount of $996,000 . Within 30 days after the receipt by the Company of approval by the FDA allowing the sale of the first licensed product, the Company is required to pay an additional $200,000 to the licensor. Due to its contingent nature, this amount is not recorded as a liability. The Company will also be required to pay a royalty of 3% on all commercial sales revenue from the licensed products. The Company is also obligated to pay a $50,000 minimum annual royalty payment over the life of the license. As of June 30, 2017 , the license was fully amortized. (b) On January 5, 2011, the Company acquired Surgical Biologics, LLC. As a result, the Company recorded intangible assets for Customer & Supplier Relationships of $3,761,000 , Patents & Know-How of $7,690,000 , Licenses of $13,000 , Tradenames & Trademarks of $1,008,000 and In-Process Research & Development of $25,000 . For the six months ended June 30, 2017 , approximately $1,000 of costs associated with patents granted during the period were capitalized and included in Patents & Know-How subject to amortization over the life of the patents. (c) Patents in Process consist of capitalized external legal and other registration costs in connection with internally developed tissue-based patents that are pending. Once issued, the costs associated with a given patent will be included in Patents & Know-How under intangible assets subject to amortization. (d) On January 13, 2016, the Company acquired Stability. As a result, the Company recorded intangible assets for Patents & Know-How of $6,790,000 , Customer & Supplier Relationships of $5,330,000 , Non-compete agreements of $830,000 , Tradenames & Trademarks of $450,000 and Licenses of $390,000 .
Estimated Future Amortization Expense for Intangible Assets	Expected future amortization of intangible assets as of June 30, 2017 , is as follows (in thousands): Year ending December 31, Estimated Amortization Expense 2017 (a) $ 1,012 2018 1,829 2019 1,829 2020 1,622 2021 1,622 Thereafter 12,917 $ 20,831 (a) Estimated amortization expense for the year ending December 31, 2017 , includes only amortization to be recorded after June 30, 2017 .

Net Income Per Share (Tables)

Net Income Per Share (Tables)	6 Months Ended
	Jun. 30, 2017
Earnings Per Share [Abstract]
Computation of Basic and Diluted Net Loss per Share	The following table sets forth the computation of basic and diluted net income per share (in thousands except share data): Three Months Ended June 30, Six Months Ended June 30, 2017 2016 2017 2016 Net income $ 8,069 $ 1,975 $ 12,396 $ 3,172 Denominator for basic earnings per share - weighted average shares 106,805,162 106,191,932 106,254,433 105,873,727 Effect of dilutive securities: Stock options and restricted stock outstanding(a) 10,480,703 5,956,483 9,601,884 6,221,324 Denominator for diluted earnings per share - weighted average shares adjusted for dilutive securities 117,285,865 112,148,415 115,856,317 112,095,051 Income per common share - basic $ 0.08 $ 0.02 $ 0.12 $ 0.03 Income per common share - diluted $ 0.07 $ 0.02 $ 0.11 $ 0.03 (a) Securities outstanding that are included in the computation above, utilizing the treasury stock method are as follows: Three Months Ended June 30, Six Months Ended June 30, 2017 2016 2017 2016 Outstanding Stock Options 2,352,318 5,644,128 1,729,407 5,805,870 Restricted Stock Awards 8,128,385 312,355 7,872,477 415,454 10,480,703 5,956,483 9,601,884 6,221,324

Equity (Tables)

Equity (Tables)	6 Months Ended
	Jun. 30, 2017
Equity [Abstract]
Stock Options Activity	Activity with respect to the stock options is summarized as follows: Number of Shares Weighted- Average Exercise Price Weighted-Average Remaining Contractual Term (in years) Aggregate Intrinsic Value Outstanding at January 1, 2017 12,552,608 $ 3.61 Granted — $ — Exercised (1,957,572 ) $ 4.70 Unvested options forfeited (25,005 ) $ 6.46 Vested options expired (66,825 ) $ 5.71 Outstanding at June 30, 2017 10,503,206 $ 3.39 4.91 $ 121,705,038 Vested at June 30, 2017 10,358,873 $ 3.32 4.87 $ 120,706,504 Vested or expected to vest at June 30, 2017 (a) 10,504,435 $ 3.38 4.87 $ 121,696,530 (a) Includes forfeiture-adjusted unvested shares.
Stock Options Outstanding and Exercisable	Following is a summary of stock options outstanding and exercisable at June 30, 2017 : Options Outstanding Options Exercisable Range of Exercise Prices Number outstanding Weighted-Average Remaining Contractual Term (in years) Weighted- Average Exercise Price Number Exercisable Weighted- Average Exercise Price $0.70 - $1.09 1,099,429 3.1 $ 0.91 1,099,429 $ 0.91 $1.10 - $1.65 4,297,879 4.0 1.30 4,297,879 1.30 $2.45 - $3.75 909,853 5.2 2.77 909,853 2.77 $3.95 - $5.99 1,916,931 5.9 5.18 1,918,965 5.18 $6.02 - $9.13 2,120,489 6.6 7.04 2,028,160 7.04 $9.22 - $10.99 158,625 7.5 10.05 104,587 10.05 10,503,206 4.9 $ 3.39 10,358,873 $ 3.32
Restricted Stock Awards Roll Forward	Activity with respect to restricted stock awards for the six months ended June 30, 2017 is summarized as follows and includes 17,539 shares of common stock valued at approximately $166,000 which were issued under the 2016 Plan to a consultant in return for services performed: Number of Weighted-Average Grant Date Unvested at January 1, 2017 3,828,445 $8.53 Granted 2,833,678 8.82 Vested (1,288,485 ) 8.33 Forfeited (192,198 ) 8.66 Unvested at June 30, 2017 5,181,440 $8.74
Allocation of Share-based Compensation	For the three and six months ended June 30, 2017 and 2016 , the Company recognized stock-based compensation as follows (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2017 2016 2017 2016 Cost of sales $ 138 $ 95 $ 274 $ 190 Research and development 143 155 277 360 Selling, general and administrative 4,974 4,259 9,375 8,574 $ 5,255 $ 4,509 $ 9,926 $ 9,124

Supplemental disclosure of ca27

Supplemental disclosure of cash flow and non-cash investing and financing activities (Tables)	6 Months Ended
	Jun. 30, 2017
Supplemental Cash Flow Elements [Abstract]
Supplemental Disclosure of Cash Flow and Non-cash Investing and Financing Activities	Selected cash payments, receipts, and noncash activities are as follows (in thousands): Six Months Ended June 30, 2017 2016 Cash paid for interest $ 204 $ 76 Income taxes paid 8,289 631 Share issuance of 441,009 shares in connection with acquisition — 3,346 Share issuances of 17,539 and 20,406 shares in exchange for services performed, respectively 166 173

Contractual Commitments and C28

Contractual Commitments and Contingencies (Tables)	6 Months Ended
	Jun. 30, 2017
Commitments and Contingencies Disclosure [Abstract]
Estimated Annual Lease, Royalty and Employment Agreement Expenses	The estimated annual lease payments, meeting space commitments are as follows (in thousands): 12-month period ended June 30, 2018 $ 2,918 2019 2,133 2020 1,907 2021 1,618 2022 1,600 Thereafter 1,170 $ 11,346

Basis of Presentation (Details)

Basis of Presentation (Details)	6 Months Ended
	Jun. 30, 2017segment
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Number of business segments (segment)	1

Significant Accounting Polici30

Significant Accounting Policies (Details) - USD ($) $ in Thousands	3 Months Ended	6 Months Ended
	Jun. 30, 2017	Jun. 30, 2017	Jun. 30, 2016
Finite-Lived Intangible Assets [Line Items]
Effective income tax rate reconciliation, excess tax benefit	$ 2,675	$ 2,694
Patents
Finite-Lived Intangible Assets [Line Items]
Intangible assets, net of accumulated amortization		$ 54	$ 327

Acquisition of Stability Inc. -

Acquisition of Stability Inc. - Narrative (Details)	Jan. 13, 2016USD ($)shares	Mar. 31, 2016USD ($)	Jun. 30, 2017USD ($)segment
Business Acquisition [Line Items]
Business combination, contingent consideration, liability, gross profit margin multiplier			1
Business combination, contingent consideration, minimum net sales for earn out period, to avoid reduction in gross profit multiplier, amount			$ 12,000,000
Business combination, contingent consideration arrangements, gross profit multiplier if net sales target not achieved			0.5
Number of business segments (segment) | segment			1
Stability Biologics, LLC
Business Acquisition [Line Items]
Cash paid at closing	$ 6,000,000
Common stock issued	$ 3,345,935
Multiplied by: Number of Common Shares Transferred to the Sellers (in shares) | shares	441,009
Assumed debt	$ 1,771,000
Fair value of earn-out	$ 17,450,000
Stability Biologics, LLC | Selling, general and administrative
Business Acquisition [Line Items]
Acquisition related costs		$ 1,088,000

Acquisition of Stability Inc.32

Acquisition of Stability Inc. - Fair Value of Stock Consideration (Details) - Stability Biologics, LLC	Jan. 13, 2016USD ($)$ / sharesshares
Business Acquisition [Line Items]
Common stock issued, price per share (in dollars per share) | $ / shares	$ 8.43
Multiplied by: Number of Common Shares Transferred to the Sellers (in shares) | shares	441,009
Indicated Value of Equity Consideration (on a Freely Tradable Interest Basis)	$ 3,717,706
Less: Marketability Discount @ 10%	(371,771)
Fair Value of Equity Consideration Transferred	$ 3,345,935
Marketability discount	10.00%

Acquisition of Stability Inc.33

Acquisition of Stability Inc. - Preliminarily Allocation of Purchase Price (Details) - USD ($)	Jan. 13, 2016	Jun. 30, 2017	Dec. 31, 2016
Net assets acquired:
Goodwill		$ 20,203,000	$ 20,203,000
Stability Biologics, LLC
Business Combination, Consideration Transferred [Abstract]
Cash paid at closing	$ 6,000,000
Working capital adjustment	(480,000)
Common stock issued (441,009 shares)	3,345,935
Assumed debt	1,771,000
Fair value of earn-out	17,450,000
Total fair value of purchase price	28,087,000
Net assets acquired:
Debt-free working capital	2,456,000
Other long-term assets	199,000
Property, plant and equipment	1,375,000
Deferred tax liability	(5,896,000)
Subtotal	(1,866,000)
Subtotal	13,790,000
Goodwill	16,163,000
Total Assets Purchased	28,087,000
Cash	140,000
Prepaid Expenses and other current assets	100,000
Accounts receivable	2,001,000
Federal and state taxes receivable	28,000
Inventory	9,002,000
Accounts payable and accrued expenses	(8,815,000)
Debt-free working capital	2,456,000
Current portion of long term debt	(194,000)
Assumed Debt	(1,771,000)
Net working capital	685,000
Stability Biologics, LLC | Long-term debt
Net assets acquired:
Long-term debt	(560,000)
Stability Biologics, LLC | Line of Credit
Net assets acquired:
Long-term debt	(932,000)
Stability Biologics, LLC | Shareholder loan
Net assets acquired:
Long-term debt	(85,000)
Stability Biologics, LLC | Trade names and trademarks
Net assets acquired:
Indefinite-lived intangible assets	450,000
Stability Biologics, LLC | Customer relationships
Net assets acquired:
Finite-Lived intangibles assets	5,330,000
Stability Biologics, LLC | Patents and know-how
Net assets acquired:
Finite-Lived intangibles assets	6,790,000
Stability Biologics, LLC | Non compete agreements
Net assets acquired:
Finite-Lived intangibles assets	830,000
Stability Biologics, LLC | Licenses and permits
Net assets acquired:
Finite-Lived intangibles assets	$ 390,000

Acquisition of Stability Inc.34

Acquisition of Stability Inc. - Contingent Consideration Rollforward (Details) - Fair Value, Inputs, Level 3 - Stability Biologics, LLC $ in Thousands	6 Months Ended
	Jun. 30, 2017USD ($)
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Balance, Beginning of Period	$ 17,450
Changes in fair value of contingent consideration	124
Payment of contingent consideration	0
Balance, End of Period	$ 17,574

Acquisition of Stability Inc.35

Acquisition of Stability Inc. - Intangible Assets Acquired as Part of Acquisition (Details) - Stability Biologics, LLC	Jan. 13, 2016
Customer relationships
Finite-Lived Intangible Assets [Line Items]
Estimated useful life (in years)	12 years
Patents and know-how
Finite-Lived Intangible Assets [Line Items]
Estimated useful life (in years)	20 years
Non compete agreements
Finite-Lived Intangible Assets [Line Items]
Estimated useful life (in years)	4 years
Licenses and permits
Finite-Lived Intangible Assets [Line Items]
Estimated useful life (in years)	2 years

Inventories (Details)

Inventories (Details) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Inventory Disclosure [Abstract]
Raw materials	$ 786	$ 1,148
Work in process	6,228	6,677
Finished goods	9,132	10,817
Inventory, gross	16,146	18,642
Reserve for obsolescence	(1,113)	(828)
Inventory, net	$ 15,033	$ 17,814

Property and Equipment - Summar

Property and Equipment - Summary of Property and Equipment (Details) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 24,985	$ 22,291
Less accumulated depreciation	(10,566)	(8,505)
Property and equipment, net	14,419	13,786
Leasehold improvements
Property, Plant and Equipment [Line Items]
Property and equipment, gross	3,323	3,274
Lab and clean room equipment
Property, Plant and Equipment [Line Items]
Property and equipment, gross	10,226	8,666
Furniture and office equipment
Property, Plant and Equipment [Line Items]
Property and equipment, gross	8,700	7,051
Construction in progress
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 2,736	$ 3,300

Property and Equipment - Narrat

Property and Equipment - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016	Dec. 31, 2016
Property, Plant and Equipment [Line Items]
Property and equipment, net of accumulated depreciation	$ 14,419		$ 14,419		$ 13,786
Other liabilities	1,084		1,084		$ 821
Depreciation	1,115	$ 821	2,061	$ 1,555
Assets Held under Capital Leases
Property, Plant and Equipment [Line Items]
Property and equipment, net of accumulated depreciation	427		427
Other liabilities	15		15
Leasehold Improvements Paid by Others
Property, Plant and Equipment [Line Items]
Property and equipment, net of accumulated depreciation	$ 1,000		$ 1,000
Capital Lease Obligations
Property, Plant and Equipment [Line Items]
Capital leases interest rate percentage	12.00%		12.00%

Intangible Assets and Royalty39

Intangible Assets and Royalty Agreement - Summary of Intangible Assets (Details) - USD ($)	Jan. 29, 2007	Jun. 30, 2017	Dec. 31, 2016	Jan. 13, 2016	Jan. 05, 2011
Finite-Lived Intangible Assets [Line Items]
Total		$ 30,314,000	$ 30,260,000
Less Accumulated amortization and impairment charges		(8,025,000)	(6,992,000)
Net		22,289,000	23,268,000
Stability Biologics, LLC
Finite-Lived Intangible Assets [Line Items]
Fair value of earn-out				$ 17,450,000
Tradenames & trademarks
Finite-Lived Intangible Assets [Line Items]
Gross carrying value, indefinite lived		1,458,000	1,458,000
Tradenames & trademarks | Stability Biologics, LLC
Finite-Lived Intangible Assets [Line Items]
Gross carrying value, indefinite lived				450,000
Tradenames & trademarks | Surgical Biologics, LLC
Finite-Lived Intangible Assets [Line Items]
Gross carrying value, indefinite lived					$ 1,008,000
In process research & development
Finite-Lived Intangible Assets [Line Items]
Gross carrying value, indefinite lived		25,000	25,000
In process research & development | Surgical Biologics, LLC
Finite-Lived Intangible Assets [Line Items]
Gross carrying value, indefinite lived					25,000
Patents in process
Finite-Lived Intangible Assets [Line Items]
Gross carrying value, indefinite lived		$ 2,669,000	2,618,000
Licenses
Finite-Lived Intangible Assets [Line Items]
Weighted average amortization lives		7 years
Gross carrying value		$ 1,399,000	1,399,000
Licenses | Stability Biologics, LLC
Finite-Lived Intangible Assets [Line Items]
Gross carrying value				390,000
Licenses | Shriners Hospitals for Children and University of South Florida Research Foundation, Inc.
Finite-Lived Intangible Assets [Line Items]
Acquisition price	$ 996,000
Maximum time of approval	30 days
Fair value of earn-out	$ 200,000
Contingent royalty to be paid to licensor	3.00%
Annual royalty payment, minimum	$ 50,000
Licenses | Surgical Biologics, LLC
Finite-Lived Intangible Assets [Line Items]
Gross carrying value					13,000
Patents and know-how
Finite-Lived Intangible Assets [Line Items]
Weighted average amortization lives		19 years
Gross carrying value		$ 14,842,000	14,839,000
Patents and know-how | Stability Biologics, LLC
Finite-Lived Intangible Assets [Line Items]
Gross carrying value				6,790,000
Patents and know-how | Surgical Biologics, LLC
Finite-Lived Intangible Assets [Line Items]
Gross carrying value					7,690,000
Finite lived intangible assets		$ 1,000
Customer & supplier relationships
Finite-Lived Intangible Assets [Line Items]
Weighted average amortization lives		13 years
Gross carrying value		$ 9,091,000	9,091,000
Customer & supplier relationships | Stability Biologics, LLC
Finite-Lived Intangible Assets [Line Items]
Gross carrying value				5,330,000
Customer & supplier relationships | Surgical Biologics, LLC
Finite-Lived Intangible Assets [Line Items]
Gross carrying value					$ 3,761,000
Non compete agreements
Finite-Lived Intangible Assets [Line Items]
Weighted average amortization lives		4 years
Gross carrying value		$ 830,000	$ 830,000
Non compete agreements | Stability Biologics, LLC
Finite-Lived Intangible Assets [Line Items]
Gross carrying value				$ 830,000

Intangible Assets and Royalty40

Intangible Assets and Royalty Agreement - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Goodwill and Intangible Assets Disclosure [Abstract]
Amortization of intangible assets	$ 507	$ 447	$ 1,033	$ 1,257

Intangible Assets and Royalty41

Intangible Assets and Royalty Agreement - Estimated Future Amortization Expense for Intangible Assets (Details) $ in Thousands	Jun. 30, 2017USD ($)
Estimated future amortization expense [Abstract]
2,017	$ 1,012
2,018	1,829
2,019	1,829
2,020	1,622
2,021	1,622
Thereafter	12,917
Net book value	$ 20,831

Credit Facility (Details)

Credit Facility (Details) - Credit Agreement - Revolving Credit Facility - USD ($)	Oct. 12, 2015	Jun. 30, 2017
Debt Instrument [Line Items]
Maximum borrowing capacity (up to)	$ 50,000,000
Uncommitted incremental facility (up to)	35,000,000
Debt issuance costs	$ 500,000
Debt term	3 years
Outstanding line of credit		$ 0
London Interbank Offered Rate (LIBOR) | Minimum
Debt Instrument [Line Items]
Basis spread on variable rate	1.50%
London Interbank Offered Rate (LIBOR) | Maximum
Debt Instrument [Line Items]
Basis spread on variable rate	2.25%

Net Income Per Share (Details)

Net Income Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Computation of basic and diluted net loss per share [Abstract]
Net income	$ 8,069	$ 1,975	$ 12,396	$ 3,172
Denominator for basic earnings per share - weighted average shares (in shares)	106,805,162	106,191,932	106,254,433	105,873,727
Effect of dilutive securities: Stock options and restricted stock outstanding (in shares)	10,480,703	5,956,483	9,601,884	6,221,324
Denominator for diluted earnings per share - weighted average shares adjusted for dilutive securities (in shares)	117,285,865	112,148,415	115,856,317	112,095,051
Income per common share - basic (in dollars per share)	$ 0.08	$ 0.02	$ 0.12	$ 0.03
Income per common share - diluted (in dollars per share)	$ 0.07	$ 0.02	$ 0.11	$ 0.03
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share (in shares)	10,480,703	5,956,483	9,601,884	6,221,324
Outstanding Stock Options
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share (in shares)	2,352,318	5,644,128	1,729,407	5,805,870
Restricted Stock Awards
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share (in shares)	8,128,385	312,355	7,872,477	415,454

Equity - Stock Incentive Plans

Equity - Stock Incentive Plans (Details)	6 Months Ended
	Jun. 30, 2017USD ($)plan$ / sharesshares	Jun. 30, 2016shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of share-based compensation plans (plan) | plan	4
Number of shares [Roll forward]
Outstanding, beginning of period (in shares) | shares	12,552,608
Granted (in shares) | shares	0	0
Exercised (in shares) | shares	(1,957,572)
Unvested options forfeited (in shares) | shares	(25,005)
Vested options expired (in shares) | shares	(66,825)
Outstanding, end of period (in shares) | shares	10,503,206
Vested at end of period (in shares) | shares	10,358,873
Exercisable options, vested and expected to vest (in shares) | shares	10,504,435
Weighted-Average Exercise Price [Roll forward]
Outstanding, weighted average exercise price, beginning of period (in dollars per share)	$ 3.61
Granted, weighted average exercise price (in dollars per share)	0
Exercised, weighted average exercise price (in dollars per share)	4.70
Unvested options forfeited, weighted-average exercise price (in dollars per share)	6.46
Vested options expired, weighted-average exercise price (in dollars per share)	5.71
Outstanding, weighted average exercise price, end of period (in dollars per share)	3.39
Vested at end of period, weighted average exercise price (in dollars per share)	3.32
Vested and expected to vest, weighted average exercise price (in dollars per share)	$ 3.38
Stock options, additional disclosures [Abstract]
Outstanding Options, weighted average remaining contractual term (in years)	4 years 10 months 28 days
Vested at end of period, weighted average remaining contractual term (in years)	4 years 10 months 13 days
Vested and expected to vest, weighted average remaining contractual term (in years)	4 years 10 months 13 days
Outstanding, aggregate intrinsic value | $	$ 121,705,038
Vested at end of period, aggregate intrinsic value | $	120,706,504
Vested or expected to vest, aggregate intrinsic value | $	121,696,530
Exercised options, intrinsic value | $	$ 13,104,345
Number of outstanding options (in shares) | shares	10,503,206
Outstanding Options, weighted average remaining contractual term (in years)	4 years 10 months 28 days
Outstanding Options, weighted average exercise price (in dollars per share)	$ 3.39
Number of exercisable options (in shares) | shares	10,358,873
Exercisable Options, weighted average exercise price (in dollars per share)	$ 3.32
Total unrecognized compensation expense | $	$ 227,673
$0.70 - $1.09
Stock options, additional disclosures [Abstract]
Outstanding Options, weighted average remaining contractual term (in years)	3 years 1 month 6 days
Exercise Price Range, lower range limit (in dollars per share)	$ 0.70
Exercise Price Range, upper range limit (in dollars per share)	$ 1.09
Number of outstanding options (in shares) | shares	1,099,429
Outstanding Options, weighted average remaining contractual term (in years)	3 years 1 month 6 days
Outstanding Options, weighted average exercise price (in dollars per share)	$ 0.91
Number of exercisable options (in shares) | shares	1,099,429
Exercisable Options, weighted average exercise price (in dollars per share)	$ 0.91
$1.10 - $1.65
Stock options, additional disclosures [Abstract]
Outstanding Options, weighted average remaining contractual term (in years)	4 years
Exercise Price Range, lower range limit (in dollars per share)	$ 1.10
Exercise Price Range, upper range limit (in dollars per share)	$ 1.65
Number of outstanding options (in shares) | shares	4,297,879
Outstanding Options, weighted average remaining contractual term (in years)	4 years
Outstanding Options, weighted average exercise price (in dollars per share)	$ 1.30
Number of exercisable options (in shares) | shares	4,297,879
Exercisable Options, weighted average exercise price (in dollars per share)	$ 1.30
$2.45 - $3.75
Stock options, additional disclosures [Abstract]
Outstanding Options, weighted average remaining contractual term (in years)	5 years 2 months 12 days
Exercise Price Range, lower range limit (in dollars per share)	$ 2.45
Exercise Price Range, upper range limit (in dollars per share)	$ 3.75
Number of outstanding options (in shares) | shares	909,853
Outstanding Options, weighted average remaining contractual term (in years)	5 years 2 months 12 days
Outstanding Options, weighted average exercise price (in dollars per share)	$ 2.77
Number of exercisable options (in shares) | shares	909,853
Exercisable Options, weighted average exercise price (in dollars per share)	$ 2.77
$3.95 - $5.99
Stock options, additional disclosures [Abstract]
Outstanding Options, weighted average remaining contractual term (in years)	5 years 10 months 24 days
Exercise Price Range, lower range limit (in dollars per share)	$ 3.95
Exercise Price Range, upper range limit (in dollars per share)	$ 5.99
Number of outstanding options (in shares) | shares	1,916,931
Outstanding Options, weighted average remaining contractual term (in years)	5 years 10 months 24 days
Outstanding Options, weighted average exercise price (in dollars per share)	$ 5.18
Number of exercisable options (in shares) | shares	1,918,965
Exercisable Options, weighted average exercise price (in dollars per share)	$ 5.18
$6.02 - $9.13
Stock options, additional disclosures [Abstract]
Outstanding Options, weighted average remaining contractual term (in years)	6 years 7 months 6 days
Exercise Price Range, lower range limit (in dollars per share)	$ 6.02
Exercise Price Range, upper range limit (in dollars per share)	$ 9.13
Number of outstanding options (in shares) | shares	2,120,489
Outstanding Options, weighted average remaining contractual term (in years)	6 years 7 months 6 days
Outstanding Options, weighted average exercise price (in dollars per share)	$ 7.04
Number of exercisable options (in shares) | shares	2,028,160
Exercisable Options, weighted average exercise price (in dollars per share)	$ 7.04
$9.22 - $10.99
Stock options, additional disclosures [Abstract]
Outstanding Options, weighted average remaining contractual term (in years)	7 years 6 months
Exercise Price Range, lower range limit (in dollars per share)	$ 9.22
Exercise Price Range, upper range limit (in dollars per share)	$ 10.99
Number of outstanding options (in shares) | shares	158,625
Outstanding Options, weighted average remaining contractual term (in years)	7 years 6 months
Outstanding Options, weighted average exercise price (in dollars per share)	$ 10.05
Number of exercisable options (in shares) | shares	104,587
Exercisable Options, weighted average exercise price (in dollars per share)	$ 10.05

Equity - Restricted Stock Award

Equity - Restricted Stock Awards (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Dec. 31, 2016
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares issued for services performed (in shares)			17,539	20,406
Shares issued for services performed			$ 166,000	$ 173,000
Share-based Compensation [Abstract]
Share-based compensation expense	$ 5,255,000	$ 4,509,000	9,926,000	9,124,000
Cost of sales
Share-based Compensation [Abstract]
Share-based compensation expense	138,000	95,000	274,000	190,000
Research and development
Share-based Compensation [Abstract]
Share-based compensation expense	143,000	155,000	277,000	360,000
Selling, general and administrative
Share-based Compensation [Abstract]
Share-based compensation expense	$ 4,974,000	$ 4,259,000	$ 9,375,000	$ 8,574,000
Restricted Stock Awards
Number of Shares
Unvested, Beginning Balance (in shares)			3,828,445
Granted (in shares)			2,833,678
Vested (in shares)			(1,288,485)
Forfeited (in shares)			(192,198)
Unvested, Ending Balance (in shares)	5,181,440		5,181,440
Weighted- Average Grant Date Fair Value
Unvested, Beginning Balance (in dollars per share)	$ 8.74		$ 8.74		$ 8.74	$ 8.53
Granted (in dollars per share)			8.82
Vested (in dollars per share)			8.33
Forfeited (in dollars per share)			8.66
Unvested, Ending Balance (in dollars per share)	$ 8.74		$ 8.74
Total unrecognized stock-based compensation related to time-based, nonvested restricted stock					$ 35,526,766
Expenses expected to be recognized over a weighted-average period (in years)			2 years 1 month 28 days
Common Stock | Consultant
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares issued for services performed (in shares)			17,539
Shares issued for services performed			$ 166,000

Equity - Treasury Stock (Detail

Equity - Treasury Stock (Details) - USD ($)	6 Months Ended
	Jun. 30, 2017	Jul. 26, 2017	May 12, 2014
Equity, Class of Treasury Stock [Line Items]
Authorized share amount for repurchase (up to)			$ 10,000,000
Shares repurchased, value	$ 14,693,000
Brokerage commissions	51,000
Remaining authorizations under the repurchase program	$ 15,243,000
Shares reissued from the treasury (in shares)	2,277,073
Shares reissued from the treasury, value	$ 18,659,439
Treasury Stock
Equity, Class of Treasury Stock [Line Items]
Share repurchase (in shares)	1,685,993
Shares repurchased for tax withholding (in shares)	313,563
Subsequent Event
Equity, Class of Treasury Stock [Line Items]
Authorized share amount for repurchase (up to)		$ 100,000,000

Income taxes (Details)

Income taxes (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016	Dec. 31, 2017
Income Tax Contingency [Line Items]
Effective tax rate	(14.20%)	42.70%	5.40%	34.70%
Effective income tax rate reconciliation, discrete items	$ (3,560)	$ 0	$ (3,916)	$ (350)
Forecast
Income Tax Contingency [Line Items]
Effective tax rate					35.30%

Supplemental disclosure of ca48

Supplemental disclosure of cash flow and non-cash investing and financing activities (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016
Supplemental disclosure of cash flow and non-cash investing and financing activities [Abstract]
Cash paid for interest	$ 204	$ 76
Income taxes paid	8,289	631
Share issuance of 441,009 shares in connection with acquisition	0	3,346
Share issuances of 17,539 and 20,406 shares in exchange for services performed, respectively	$ 166	$ 173
Shares issued in connection with business combination (in shares)		441,009
Shares issued for services performed (in shares)	17,539	20,406

Contractual Commitments and C49

Contractual Commitments and Contingencies - Narrative (Details) $ in Thousands	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2017USD ($)claim	Jun. 30, 2016USD ($)	Jun. 30, 2017USD ($)claim	Jun. 30, 2016USD ($)	Dec. 31, 2016	Aug. 18, 2015claim	Jul. 10, 2015claim	Jun. 29, 2015claim
Loss Contingencies [Line Items]
Lease expiration period			7 years
Rent expense | $	$ 407	$ 436	$ 842	$ 859
Pending Litigation
Loss Contingencies [Line Items]
Number of patent challenged grounds (claim)	4		4
Pending Litigation | Bone Bank Action
Loss Contingencies [Line Items]
Number of patent challenged grounds (claim)							5	7
Opinion allowing a review of patent (claim)							2
Pending Litigation | Liventa Action, 701 Patent
Loss Contingencies [Line Items]
Number of patent challenged grounds (claim)						6
Pending Litigation | Liventa Action, 437 Patent
Loss Contingencies [Line Items]
Number of patent challenged grounds (claim)						7
Opinion allowing a review of patent (claim)						1
Sales Revenue, Net | Product Concentration Risk
Loss Contingencies [Line Items]
Percentage of revenue					10.00%
Standby Letters of Credit
Loss Contingencies [Line Items]
Standby letters of credit | $	$ 52		$ 52

Contractual Commitments and C50

Contractual Commitments and Contingencies - Estimated Annual Lease Payments (Details) $ in Thousands	Jun. 30, 2017USD ($)
Estimated annual lease, royalty, and employment agreement expenses [Abstract]
2,018	$ 2,918
2,019	2,133
2,020	1,907
2,021	1,618
2,022	1,600
Thereafter	1,170
Total Contractual commitments	$ 11,346

Schedule II - Valuation and Q51

Schedule II - Valuation and Qualifying Accounts (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Allowance for doubtful accounts
Movement in Valuation Allowances and Reserves [Roll Forward]
Balance at Beginning of Period	$ 6,769	$ 3,872	$ 4,842	$ 3,270
Additions charged to Expense or Revenue	500	233	2,450	835
Deductions and write-offs	(50)	(19)	(73)	(19)
Balance at End of Period	7,219	4,086	7,219	4,086
Allowance for product returns
Movement in Valuation Allowances and Reserves [Roll Forward]
Balance at Beginning of Period	5,037	1,708	4,894	1,262
Additions charged to Expense or Revenue	2,439	2,106	5,070	3,467
Deductions and write-offs	(4,015)	(1,623)	(6,503)	(2,538)
Balance at End of Period	3,461	2,191	3,461	2,191
Allowance for obsolescence
Movement in Valuation Allowances and Reserves [Roll Forward]
Balance at Beginning of Period	974	604	828	397
Additions charged to Expense or Revenue	305	1,335	741	1,570
Deductions and write-offs	(166)	(159)	(456)	(187)
Balance at End of Period	$ 1,113	$ 1,780	$ 1,113	$ 1,780