Atrion (ATRI) 10-Q 9 Nov 20 2020 Q3 Quarterly report Financial data

Cover

Cover - shares	9 Months Ended
	Sep. 30, 2020	Oct. 30, 2020
Cover [Abstract]
Entity Registrant Name	Atrion Corporation
Entity Central Index Key	0000701288
Document Type	10-Q
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Small Business	false
Entity Shell Company	false
Entity Emerging Growth Company	false
Entity Current Reporting Status	Yes
Document Period End Date	Sep. 30, 2020
Entity Filer Category	Large Accelerated Filer
Document Fiscal Period Focus	Q3
Document Fiscal Year Focus	2020
Entity Common Stock Shares Outstanding		1,828,953
Document Quarterly Report	true
Document Transition Report	false
Entity File Number	001-32982
Entity Incorporation State Country Code	DE
Entity Tax Identification Number	63-0821819
Entity Address Address Line 1	One Allentown Parkway
Entity Address City Or Town	Allen
Entity Address State Or Province	TX
Entity Address Postal Zip Code	75002
City Area Code	972
Local Phone Number	390-9800
Entity Interactive Data Current	Yes

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited)
Revenues	$ 33,785	$ 38,883	$ 115,348	$ 120,600
Cost of goods sold	18,887	20,992	63,114	65,414
Gross profit	14,898	17,891	52,234	55,186
Operating expenses:
Selling	1,888	2,092	5,660	6,574
General and administrative	4,039	3,990	13,066	12,480
Research and development	1,388	1,359	4,165	3,678
Total Operating Expense	7,315	7,441	22,891	22,732
Operating income	7,583	10,450	29,343	32,454
Interest and dividend income	303	733	1,161	1,896
Other investment income (losses)	678	(106)	5	265
Total Non Operating Income Expenses	981	627	1,166	2,161
Income before provision for income taxes	8,564	11,077	30,509	34,615
Provision for income taxes	(1,321)	(1,482)	(5,764)	(5,918)
Net income	$ 7,243	$ 9,595	$ 24,745	$ 28,697
Net income per basic share	$ 3.96	$ 5.17	$ 13.46	$ 15.48
Weighted average basic shares outstanding	1,829	1,855	1,839	1,854
Net income per diluted share	$ 3.95	$ 5.15	$ 13.42	$ 15.40
Weighted average diluted shares outstanding	1,834	1,862	1,844	1,863
Dividends per common share	$ 1.75	$ 1.55	$ 4.85	$ 4.25

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($)	Sep. 30, 2020	Dec. 31, 2019
Current assets:
Cash and cash equivalents	$ 23,996,000	$ 45,048,000
Short-term investments	18,779,000	23,766,000
Accounts receivable	17,747,000	18,886,000
Inventories	48,622,000	42,093,000
Prepaid expenses and other current assets	4,013,000	2,545,000
Total current assets	113,157,000	132,338,000
Long-term investments	45,381,000	31,772,000
Property, plant and equipment	213,203,000	200,990,000
Less accumulated depreciation and amortization	122,150,000	116,384,000
Property, plant and equipment net	91,053,000	84,606,000
Other assets and deferred charges:
Patents	1,450,000	1,539,000
Goodwill	9,730,000	9,730,000
Other	2,261,000	2,046,000
Total other assets	13,441,000	13,315,000
Total assets	263,032,000	262,031,000
Current liabilities:
Accounts payable and accrued liabilities	11,694,000	10,855,000
Accrued income and other taxes	1,005,000	419,000
Total current liabilities	12,699,000	11,274,000
Line of credit	0	0
Other non-current liabilities	12,215,000	12,887,000
Stockholders' equity:
Common stock, par value $0.10 per share; authorized 10,000 shares, issued 3,420 shares	342,000	342,000
Paid-in capital	53,581,000	52,043,000
Retained earnings	333,523,000	317,745,000
Treasury shares,1,591 at September 30, 2020 and 1,565 at December 31, 2019, at cost	(149,328,000)	(132,260,000)
Total stockholders' equity	238,118,000	237,870,000
Total liabilities and stockholders' equity	$ 263,032,000	$ 262,031,000

CONDENSED CONSOLIDATED BALANC_2

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Sep. 30, 2020	Dec. 31, 2019
Stockholders' equity
Common stock, shares par value	$ 0.10	$ 0.10
Common stock, shares authorized	10,000	10,000
Common stock, shares issued	3,420	3,420
Treasury stock, shares	1,591	1,565

CONDENSED CONSOLIDATED STATEM_2

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019
Cash flows from operating activities:
Net income	$ 24,745	$ 28,697
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	8,517	7,961
Deferred income taxes	1,315	1,922
Stock-based compensation	1,540	1,306
Net change in unrealized gains and losses on investments	256	(257)
Net change in accrued interest, premiums, and discounts on investments	25	367
Other	22	(6)
Adjustment to reconcile net income	36,420	39,990
Changes in operating assets and liabilities:
Accounts receivable	1,136	(1,756)
Inventories	(6,529)	(4,742)
Prepaid expenses	(1,468)	581
Other non-current assets	(258)	17
Accounts payable and accrued liabilities	839	277
Accrued income and other taxes	586	884
Other non-current liabilities	(1,977)	914
Net Cash flows from operating activities	28,749	36,165
Cash flows from investing activities:
Property, plant and equipment additions	(14,899)	(15,239)
Purchase of investments	(40,025)	(54,539)
Proceeds from sale of investments	899
Proceeds from maturities of investments	30,223	46,992
Net Cash flows from investing activities	(23,802)	(22,786)
Cash flows from financing activities:
Purchase of treasury stock	(17,037)
Shares tendered for employees' withholding taxes on stock-based compensation	(55)	(579)
Dividends paid	(8,907)	(7,880)
Net Cash flows from financing activities	(25,999)	(8,459)
Net change in cash and cash equivalents	(21,052)	4,920
Cash and cash equivalents at beginning of period	45,048	58,753
Cash and cash equivalents at end of period	23,996	63,673
Cash paid for:
Income taxes	$ 4,518	$ 2,630

CONDENSED CONSOLIDATED STATEM_3

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS EQUITY (Unaudited) - USD ($) shares in Thousands	Total	Common Stock	Treasury Stock	Additional Paid-In Capital	Retained Earnings
Balance, shares at Dec. 31, 2018		1,853	1,567
Balance, amount at Dec. 31, 2018	$ 210,767,000	$ 342,000	$ (131,727,000)	$ 50,391,000	$ 291,761,000
Net income	28,697,000				28,697,000
Stock-based compensation transactions, shares		3	(3)
Stock-based compensation transactions, amount	1,315,000		$ 46,000	1,269,000
Shares surrendered in stock transactions, shares		(1)	1
Shares surrendered in stock transactions, amount	(579,000)		$ (579,000)
Dividends	(7,895,000)				(7,895,000)
Balance, shares at Sep. 30, 2019		1,855	1,565
Balance, amount at Sep. 30, 2019	232,305,000	$ 342,000	$ (132,260,000)	51,660,000	312,563,000
Balance, shares at Jun. 30, 2019		1,855	1,565
Balance, amount at Jun. 30, 2019	225,260,000	$ 342,000	$ (132,260,000)	51,332,000	305,846,000
Net income	9,595,000				9,595,000
Stock-based compensation transactions, amount	328,000			328,000
Dividends	(2,878,000)				(2,878,000)
Balance, shares at Sep. 30, 2019		1,855	1,565
Balance, amount at Sep. 30, 2019	232,305,000	$ 342,000	$ (132,260,000)	51,660,000	312,563,000
Balance, shares at Dec. 31, 2019		1,855	1,565
Balance, amount at Dec. 31, 2019	237,870,000	$ 342,000	$ (132,260,000)	52,043,000	317,745,000
Net income	24,745,000				24,745,000
Stock-based compensation transactions, amount	1,562,000		24,000	1,538,000
Shares surrendered in stock transactions, amount	(55,000)		$ (55,000)
Dividends	(8,931,000)				(8,931,000)
Cumulative change in accounting principal	(36,000)				(36,000)
Purchase of treasury stock, shares		(26)	26
Purchase of treasury stock, amount	(17,037,000)		$ (17,037,000)
Balance, shares at Sep. 30, 2020		1,829	1,591
Balance, amount at Sep. 30, 2020	238,118,000	$ 342,000	$ (149,328,000)	53,581,000	333,523,000
Balance, shares at Jun. 30, 2020		1,829	1,591
Balance, amount at Jun. 30, 2020	233,527,000	$ 342,000	$ (149,329,000)	53,020,000	329,494,000
Net income	7,243,000				7,243,000
Stock-based compensation transactions, amount	562,000		1,000	561,000
Shares surrendered in stock transactions, amount	0		$ 0
Dividends	(3,214,000)				(3,214,000)
Balance, shares at Sep. 30, 2020		1,829	1,591
Balance, amount at Sep. 30, 2020	$ 238,118,000	$ 342,000	$ (149,328,000)	$ 53,581,000	$ 333,523,000

Basis of Presentation

Basis of Presentation	9 Months Ended
	Sep. 30, 2020
Basis of Presentation
1- Basis of Presentation	(1) Basis of Presentation The accompanying unaudited condensed consolidated financial statements of Atrion Corporation and its subsidiaries (collectively referred to herein as “Atrion” the “Company,” “we,” “our,” and “us”) have been prepared in accordance with accounting principles generally accepted in the United States for interim financial information and with the instructions to Form 10-Q. Accordingly, they do not include all of the information and notes required by accounting principles generally accepted in the United States for complete financial statements. In the opinion of management, these statements include all normal and recurring adjustments necessary to present a fair statement of our consolidated results of operations, financial position and cash flows. Operating results for any interim period are not necessarily indicative of the results that may be expected for the full year. Preparation of the Company’s financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that can have a significant impact on our revenue, operating income, and net income, as well as on the value of certain assets and liabilities on our consolidated balance sheets. We base our assumptions, judgments, and estimates on historical experience and various other factors that we believe to be reasonable under the circumstances. At least quarterly, we evaluate our assumptions, judgments, and estimates, and make changes as deemed necessary. Due to the COVID-19 pandemic, there has been uncertainty and disruption in the global economy and financial markets. We are not aware of any specific event or circumstance that would require updates to our estimates or judgments or require us to revise the carrying value of our assets or liabilities as of November 9, 2020, the date of issuance of this Quarterly Report on Form 10-Q. However, these estimates may change as new events occur and additional information is obtained. Actual results could differ materially from these estimates under different assumptions or conditions. This Quarterly Report on Form 10-Q should be read in conjunction with the Company’s consolidated financial statements and notes included in our Annual Report on Form 10-K for the fiscal year ended December 31, 2019 ("2019 Form 10-K"). The Coronavirus Aid, Relief, and Economic Security Act, which became law on March 27, 2020, includes a provision that permits an employer to defer the payment of the employer’s portion of payroll taxes that otherwise would be due between March 27, 2020 and December 31, 2020. The Company has elected to take advantage of such deferral provision.

Inventories

Inventories	9 Months Ended
	Sep. 30, 2020
Inventories
2- Inventories	(2) Inventories Inventories are stated at the lower of cost or net realizable value. Cost is determined by using the first-in, first-out method. The following table details the major components of inventories (in thousands): September 30, December 31, 2020 2019 Raw materials $ 19,994 $ 18,157 Work in process 10,724 8,525 Finished goods 17,904 15,411 Total inventories $ 48,622 $ 42,093

Income per share

Income per share	9 Months Ended
	Sep. 30, 2020
Income per share
3- Income per share	(3) Income per share The following is the computation for basic and diluted income per share: Three Months Ended Nine Months Ended 2020 2019 2020 2019 (in thousands, except per share amounts) Net income $ 7,243 $ 9,595 $ 24,745 $ 28,697 Weighted average basic shares outstanding 1,829 1,855 1,839 1,854 Add:Effect of dilutive securities 5 7 5 9 Weighted average diluted shares outstanding 1,834 1,862 1,844 1,863 Earnings per share: Basic $ 3.96 $ 5.17 $ 13.46 $ 15.48 Diluted $ 3.95 $ 5.15 $ 13.42 $ 15.40 Incremental shares from stock options and restricted stock units were included in the calculation of weighted average diluted shares outstanding using the treasury stock method. Dilutive securities representing two and zero shares of common stock for the quarters ended September 30, 2020 and 2019, respectively, and an average of six and zero shares of common stock for the nine months ended September 30, 2020 and 2019, respectively, were excluded from the computation of weighted average diluted shares outstanding because their effect would have been anti-dilutive.

Investments

Investments	9 Months Ended
	Sep. 30, 2020
Investments
4- Investments	(4) Investments As of September 30, 2020 and December 31, 2019, we held investments in commercial paper, bonds, money market accounts, mutual funds and equity securities. The commercial paper and bonds are considered held-to-maturity and are recorded at amortized cost in the accompanying consolidated balance sheets. The money market accounts, equity securities and mutual funds are recorded at fair value in the accompanying consolidated balance sheets. The fair values of these investments were estimated using recently executed transactions and market price quotations. We consider as current assets those investments which will mature in the next 12 months including interest receivable on the long-term bonds. The remaining investments are considered non-current assets including our investment in equity securities we intend to hold longer than 12 months. The components of the Company’s cash and cash equivalents and our short and long-term investments are as follows (in thousands): September 30, 2020 December 31, 2019 Cash and cash equivalents: Cash deposits $ 19,573 $ 38,942 Money market funds 3,673 3,460 Commercial paper 750 2,646 Total cash and cash equivalents $ 23,996 $ 45,048 Short-term investments: Commercial paper (held-to-maturity) $ 4,469 $ 6,778 Bonds (held-to-maturity) 14,330 16,988 Allowance for credit losses (20 ) - Total short-term investments $ 18,779 $ 23,766 Long-term investments: Mutual funds (available for sale) $ 499 $ 1,105 Bonds (held-to-maturity) 42,177 27,845 Allowance for credit losses (57 ) - Equity securities (available for sale) 2,762 2,822 Total long-term investments $ 45,381 $ 31,772 Total cash, cash equivalents and short and long-term investments $ 88,156 $ 100,586 Recently adopted Topic 326 utilizes a lifetime “expected credit loss” measurement objective for the recognition of credit losses for held-to-maturity securities at the time the financial asset is originated or acquired. The expected credit losses are adjusted each period for changes in expected lifetime credit losses. Our credit loss calculations for held-to-maturity securities are based upon historical default and recovery rates of bonds rated with the same rating as our portfolio. We also apply an adjustment factor to these credit loss calculations based upon our assessment of the expected impact from current economic conditions on our investments, including the impact of COVID-19. We monitor the credit quality of debt securities classified as held-to-maturity through the use of their respective credit rating and update them on a quarterly basis with our latest assessment completed on September 30, 2020. The following table summarizes the amortized cost of our held-to-maturity bonds at September 30, 2020, aggregated by credit quality indicator (in thousands): Held-to-Maturity Bonds Credit Quality Indicators Asset Backed Bonds Fed Govt. Bonds/Notes Municipal Bonds Corporate Bonds Totals AAA/AA/A $ 1,891 $ 3,265 $ 759 $ 31,490 $ 37,405 BBB/BB - - - 19,102 19,102 TOTAL $ 1,891 $ 3,265 $ 759 $ 50,592 $ 56,507 The following table presents information regarding our allowance for credit losses on our short-term and long-term investments for the nine months ended September 30, 2020 (in thousands): Short- Term Securities Long- Term Securities Total Beginning balance, December 31, 2019 $ - $ - $ - Allowance recognized upon adoption of Topic 326 9 33 42 Provision for credit loss expense 11 24 35 Ending balance, September 30, 2020 $ 20 $ 57 $ 77 Our investments are required to be measured for disclosure purposes at fair value on a recurring basis. Our investments are considered Level 1 or Level 2 as detailed in the table below. The fair values of these investments were estimated using recently executed transactions and market price quotations. The amortized cost and fair value of our investments, and the related gross unrealized gains and losses, were as follows as of the dates shown below (in thousands): Gross Unrealized Level Cost Gains Losses Fair Value As of September 30, 2020: Money market 1 3,673 $ - $ - $ 3,673 Commercial paper 2 5,219 $ 4 $ - $ 5,223 Bonds 2 56,506 $ 544 $ (60 ) $ 56,990 Mutual funds 1 566 $ - $ (67 ) $ 499 Equity investments 2 5,675 $ - $ (2,913 ) $ 2,762 As of December 31, 2019: Money Market 1 3,460 $ - $ - $ 3,460 Commercial paper 2 9,424 $ 2 $ - $ 9,426 Bonds 2 44,833 $ 138 $ (19 ) $ 44,952 Mutual funds 1 1,052 $ 53 $ - $ 1,105 Equity investments 2 5,675 $ - $ (2,853 ) $ 2,822 The bonds represent investments in various issuers at September 30, 2020. The unrealized losses for these bond investments relate to the impact of COVID-19 on the bond market which resulted in a lower market price for those securities. None of these bond investments has been in a loss position for more than 12 months. The commercial paper has maturities from less than a month to five months. The bonds have maturities from less than a month to 54 months.

Patents and Licenses

Patents and Licenses	9 Months Ended
	Sep. 30, 2020
Patents and Licenses
5- Patents and Licenses	(5) Patents and Licenses Purchased patents and license fees paid for the use of other entities’ patents are amortized over the useful life of the patent or license. The following tables provide information regarding patents and licenses (dollars in thousands): September 30, 2020 December 31, 2019 Weighted Average Gross Accumulated Weighted Average Gross Accumulated 15.67 $ 13,840 $ 12,390 15.67 $ 13,840 $ 12,301 Aggregate amortization expense for patents and licenses was $30,000 in each of the three months ended September 30, 2020 and 2019 and $90,000 in each of the nine months ended September 30, 2020 and 2019. Estimated future amortization expense for each of the years set forth below ending December 31 is as follows (in thousands): 2021 $ 119 2022 $ 117 2023 $ 113 2024 $ 113 2025 $ 112

Revenues

Revenues	9 Months Ended
	Sep. 30, 2020
Revenues
6- Revenues	(6) Revenues We recognize revenue when performance obligations under the terms of a contract with our customer are satisfied. This occurs with the transfer of control of our products to customers when products are shipped. Revenue is measured as the amount of consideration we expect to receive in exchange for transferring products or services. Sales and other taxes we may collect concurrent with revenue-producing activities are excluded from revenue. A summary of revenues by geographic area, based on shipping destination, for the three and six months ended September 30, 2020 and 2019 are as follows (in thousands): Three Months Ended Nine Months Ended September 30, September 30, 2020 2019 2020 2019 United States $ 19,925 $ 24,644 $ 65,648 $ 76,640 Germany 2,485 2,168 8,640 6,427 Other countries less than 5% of revenues 11,375 12,071 41,060 37,533 Total $ 33,785 $ 38,883 $ 115,348 $ 120,600 A summary of revenues by product line for the three and nine months ended September 30, 2020 and 2019 are as follows (in thousands): Three Months Ended Nine Months Ended September 30, September 30, 2020 2019 2020 2019 Fluid Delivery $ 16,512 $ 17,888 $ 60,620 $ 54,334 Cardiovascular 11,297 14,565 36,963 44,564 Ophthalmology 1,171 1,556 2,970 5,656 Other 4,805 4,874 14,795 16,046 Total $ 33,785 $ 38,883 $ 115,348 $ 120,600 More than 99 percent of our total revenue in the periods presented herein is pursuant to shipments initiated by a purchase order (our “contract”) and recognized at a single point in time when the performance obligation of the product being shipped is satisfied, rather than recognized over time, and is presented as a receivable on the balance sheet. Payment is typically due within 30 days. We maintain an allowance for doubtful accounts to reflect estimated losses resulting from the failure of customers to make required payments. Effective January 1, 2020, we adopted the new credit loss accounting methodology as discussed in footnote 7 to calculate our credit loss allowance for our trade receivables. An account is written off when we determine the receivable will not be collected. Historically, bad debt has been immaterial. We have elected to recognize the cost of shipping as an expense in cost of sales when control over the product has transferred to the customer. We do not make any material accruals for product returns and warranty obligations because our returns and warranty obligations have been very low due to our focus on quality control. We do not disclose the value of unsatisfied performance obligations for contracts for which we recognize revenue at the amount for which we have the right to invoice. We believe that the complexity added to our disclosures by the inclusion of a large amount of insignificant detail in attempting to disclose information about immaterial contracts would potentially obscure more useful and important information.

Recent Accounting Pronouncement

Recent Accounting Pronouncements	9 Months Ended
	Sep. 30, 2020
Recent Accounting Pronouncements
7- Recent Accounting Pronouncements	(7) Recent Accounting Pronouncements ASU No. 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments The CECL methodology utilizes a lifetime “expected credit loss” measurement objective for the recognition of credit losses for loans, held-to-maturity securities and trade and other receivables at the time the financial asset is originated or acquired. The expected credit losses are adjusted each period for changes in expected lifetime credit losses. The methodology replaces the multiple existing impairment methods in current GAAP, which generally require that a loss be incurred before it is recognized. On January 1, 2020, we adopted the guidance prospectively with a cumulative adjustment to retained earnings. Atrion has not restated comparative information for 2019 and, therefore, the comparative information for 2019 is reported under the old model and is not comparable to the information presented for 2020. At adoption, we recognized an incremental allowance for credit losses on our allowance for credit losses related to our held-to-maturity debt securities of approximately $42,000 and our trade accounts receivable of approximately $4,000. Additionally, we recorded an approximately $36,000 decrease in retained earnings associated with the increased estimated credit losses on our trade accounts receivable and investments. From time to time, new accounting pronouncements applicable to us are issued by the FASB, or other standards setting bodies, which we will adopt as of the specified effective date. Unless otherwise discussed, we believe the impact of recently issued standards that are not yet effective will not have a material impact on our consolidated financial statements upon adoption.

Inventories (Tables)

Inventories (Tables)	9 Months Ended
	Sep. 30, 2020
Inventories
Schedule of inventories	September 30, December 31, 2020 2019 Raw materials $ 19,994 $ 18,157 Work in process 10,724 8,525 Finished goods 17,904 15,411 Total inventories $ 48,622 $ 42,093

Income Per Share (Tables)

Income Per Share (Tables)	9 Months Ended
	Sep. 30, 2020
Income per share
Schedule of Computation of Basic and Diluted Income Per Share	Three Months Ended Nine Months Ended 2020 2019 2020 2019 (in thousands, except per share amounts) Net income $ 7,243 $ 9,595 $ 24,745 $ 28,697 Weighted average basic shares outstanding 1,829 1,855 1,839 1,854 Add:Effect of dilutive securities 5 7 5 9 Weighted average diluted shares outstanding 1,834 1,862 1,844 1,863 Earnings per share: Basic $ 3.96 $ 5.17 $ 13.46 $ 15.48 Diluted $ 3.95 $ 5.15 $ 13.42 $ 15.40

Investments (Tables)

Investments (Tables)	9 Months Ended
	Sep. 30, 2020
Investments
Schedule of cash and cash equivalents andshort and long-term investments	September 30, 2020 December 31, 2019 Cash and cash equivalents: Cash deposits $ 19,573 $ 38,942 Money market funds 3,673 3,460 Commercial paper 750 2,646 Total cash and cash equivalents $ 23,996 $ 45,048 Short-term investments: Commercial paper (held-to-maturity) $ 4,469 $ 6,778 Bonds (held-to-maturity) 14,330 16,988 Allowance for credit losses (20 ) - Total short-term investments $ 18,779 $ 23,766 Long-term investments: Mutual funds (available for sale) $ 499 $ 1,105 Bonds (held-to-maturity) 42,177 27,845 Allowance for credit losses (57 ) - Equity securities (available for sale) 2,762 2,822 Total long-term investments $ 45,381 $ 31,772 Total cash, cash equivalents and short and long-term investments $ 88,156 $ 100,586
Schedule of investments, held-to-maturity securities	Held-to-Maturity Bonds Credit Quality Indicators Asset Backed Bonds Fed Govt. Bonds/Notes Municipal Bonds Corporate Bonds Totals AAA/AA/A $ 1,891 $ 3,265 $ 759 $ 31,490 $ 37,405 BBB/BB - - - 19,102 19,102 TOTAL $ 1,891 $ 3,265 $ 759 $ 50,592 $ 56,507
Schedule of allowance for credit losses on short-term and long-term investments	Short- Term Securities Long- Term Securities Total Beginning balance, December 31, 2019 $ - $ - $ - Allowance recognized upon adoption of Topic 326 9 33 42 Provision for credit loss expense 11 24 35 Ending balance, September 30, 2020 $ 20 $ 57 $ 77
Schedule of gross unrealized gains and losses on investments	Gross Unrealized Level Cost Gains Losses Fair Value As of September 30, 2020: Money market 1 3,673 $ - $ - $ 3,673 Commercial paper 2 5,219 $ 4 $ - $ 5,223 Bonds 2 56,506 $ 544 $ (60 ) $ 56,990 Mutual funds 1 566 $ - $ (67 ) $ 499 Equity investments 2 5,675 $ - $ (2,913 ) $ 2,762 As of December 31, 2019: Money Market 1 3,460 $ - $ - $ 3,460 Commercial paper 2 9,424 $ 2 $ - $ 9,426 Bonds 2 44,833 $ 138 $ (19 ) $ 44,952 Mutual funds 1 1,052 $ 53 $ - $ 1,105 Equity investments 2 5,675 $ - $ (2,853 ) $ 2,822

Patents and Licenses (Tables)

Patents and Licenses (Tables)	9 Months Ended
	Sep. 30, 2020
Patents and Licenses
Schedule of patents and licenses	September 30, 2020 December 31, 2019 Weighted Average Gross Accumulated Weighted Average Gross Accumulated 15.67 $ 13,840 $ 12,390 15.67 $ 13,840 $ 12,301
Schedule of estimated future amortization expense	2021 $ 119 2022 $ 117 2023 $ 113 2024 $ 113 2025 $ 112

Revenues (Tables)

Revenues (Tables)	9 Months Ended
	Sep. 30, 2020
Revenues (Tables)
Schedule of revenues by geographic area	Three Months Ended Nine Months Ended September 30, September 30, 2020 2019 2020 2019 United States $ 19,925 $ 24,644 $ 65,648 $ 76,640 Germany 2,485 2,168 8,640 6,427 Other countries less than 5% of revenues 11,375 12,071 41,060 37,533 Total $ 33,785 $ 38,883 $ 115,348 $ 120,600
Schedule of revenues by product	Three Months Ended Nine Months Ended September 30, September 30, 2020 2019 2020 2019 Fluid Delivery $ 16,512 $ 17,888 $ 60,620 $ 54,334 Cardiovascular 11,297 14,565 36,963 44,564 Ophthalmology 1,171 1,556 2,970 5,656 Other 4,805 4,874 14,795 16,046 Total $ 33,785 $ 38,883 $ 115,348 $ 120,600

Inventories (Details)

Inventories (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Inventories
Raw materials	$ 19,994	$ 18,157
Work in process	10,724	8,525
Finished goods	17,904	15,411
Total inventories	$ 48,622	$ 42,093

Income Per Share (Details)

Income Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Income per share
Net income	$ 7,243	$ 9,595	$ 24,745	$ 28,697
Weighted average basic shares outstanding	1,829	1,855	1,839	1,854
Add:Effect of dilutive securities	5	7	5	9
Weighted average diluted shares outstanding	1,834	1,862	1,844	1,863
Earnings per share:
Basic	$ 3.96	$ 5.17	$ 13.46	$ 15.48
Diluted	$ 3.95	$ 5.15	$ 13.42	$ 15.40

Income Per Share (Details Narra

Income Per Share (Details Narrative) - shares	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Income per share
Shares excluded from computation of weighted average diluted shares outstanding	2	0	6	0

Investments (Details)

Investments (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Cash and cash equivalents:
Total cash and cash equivalents	$ 23,996	$ 45,048
Short-term investments:
Total short-term Investments	18,779	23,766
Allowance for credit losses	(20)	0
Long-term investments:
Total long-term investments	45,381	31,772
Allowance for credit losses	(57)	0
Total cash, cash equivalents and short and long-term investments	88,156	100,586
Commercial Paper (Held-To-Maturity) [Member]
Short-term investments:
Total short-term Investments	4,469	6,778
Bonds (Held-To-Maturity) [Member]
Short-term investments:
Total short-term Investments	14,330	16,988
Mutual funds (available for sale) [Member]
Long-term investments:
Total long-term investments	499	1,105
Bonds [Held-To-Maturity] [Member]
Long-term investments:
Total long-term investments	42,177	27,845
Equity securities (available for sale] [Member]
Long-term investments:
Total long-term investments	2,762	2,822
Cash Deposits [Member]
Cash and cash equivalents:
Total cash and cash equivalents	19,573	38,942
Money Market Funds [Member]
Cash and cash equivalents:
Total cash and cash equivalents	3,673	3,460
Commercial Paper [Member]
Cash and cash equivalents:
Total cash and cash equivalents	$ 750	$ 2,646

Investments (Details1)

Investments (Details1)	Sep. 30, 2020USD ($)
Debt securities, held-to-maturity	$ 56,507,000
AAA /AA/A [Member]
Debt securities, held-to-maturity	37,405,000
BBB/BB [Member]
Debt securities, held-to-maturity	19,102,000
Asset Backed Bonds [Member] | BBB/BB [Member]
Debt securities, held-to-maturity	0
Fed Govt. Bonds/Notes [Member]
Debt securities, held-to-maturity	3,265,000
Fed Govt. Bonds/Notes [Member] | BBB/BB [Member]
Debt securities, held-to-maturity	0
Fed Govt. Bonds/Notes [Member] | AAA /AA/A [Member]
Debt securities, held-to-maturity	3,265,000
Municipal Bonds [Member]
Debt securities, held-to-maturity	759,000
Municipal Bonds [Member] | BBB/BB [Member]
Debt securities, held-to-maturity	0
Municipal Bonds [Member] | AAA /AA/A [Member]
Debt securities, held-to-maturity	759,000
Assets Baked Bonds [Member]
Debt securities, held-to-maturity	1,891,000
Assets Baked Bonds [Member] | AAA /AA/A [Member]
Debt securities, held-to-maturity	1,891,000
Corporate Bonds [Member]
Debt securities, held-to-maturity	50,592,000
Corporate Bonds [Member] | AAA /AA/A [Member]
Debt securities, held-to-maturity	31,490,000
Corporate Bonds [Member] | BBB/BB [Member]
Debt securities, held-to-maturity	$ 19,102,000

Investments (Details 2)

Investments (Details 2)	9 Months Ended
	Sep. 30, 2020USD ($)
Short-term Investments [Member]
Beginning balance, December 31, 2019	$ 0
Allowance recognized upon adoption of Topic 326	9,000
Provision for credit loss expense	11,000
Ending balance, September 30, 2020	20,000
Long Term Investments [Member]
Beginning balance, December 31, 2019	0
Allowance recognized upon adoption of Topic 326	33,000
Provision for credit loss expense	24,000
Ending balance, September 30, 2020	57,000
Total [Member]
Beginning balance, December 31, 2019	0
Allowance recognized upon adoption of Topic 326	42,000
Provision for credit loss expense	35,000
Ending balance, September 30, 2020	$ 77,000

Investments (Details 3)

Investments (Details 3) - USD ($)	Sep. 30, 2020	Dec. 31, 2019
Debt securities, held-to-maturity	$ 56,507,000
Short-term Investments [Member] | Mutual funds (available for sale) [Member]
Debt securities, held-to-maturity	566,000	$ 1,052,000
Gross Unrealized Fair Value	499,000	1,105,000
Gross Unrealized Gains	0	53,000
Gross Unrealized Losses	(67,000)	0
Money Market Funds [Member] | Short-term Investments [Member]
Debt securities, held-to-maturity	3,673,000	3,460,000
Gross Unrealized Fair Value	3,673	3,460
Gross Unrealized Gains		0
Gross Unrealized Losses	0	0
Equity investments [Member] | Short-term Investments [Member]
Debt securities, held-to-maturity	5,675,000	5,675,000
Gross Unrealized Fair Value	2,762,000	2,822,000
Gross Unrealized Gains	0	0
Gross Unrealized Losses	(2,913,000)	(2,853,000)
Commercial Paper [Member] | Short-term Investments [Member]
Debt securities, held-to-maturity	5,219,000	9,424,000
Gross Unrealized Fair Value	5,223	9,426
Gross Unrealized Gains	4	2
Gross Unrealized Losses	0
Bonds [Member] | Short-term Investments [Member]
Debt securities, held-to-maturity	56,506,000	44,833,000
Gross Unrealized Fair Value	56,990,000	44,952,000
Gross Unrealized Gains	544,000	138,000
Gross Unrealized Losses	$ (60,000)	$ (19,000)

Investments (Details Narrative)

Investments (Details Narrative)	9 Months Ended
	Sep. 30, 2020
Maximum [Member] | Bonds [Member]
Securities Maturity	54 years

Patents and Licenses (Details)

Patents and Licenses (Details) - USD ($)	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019	Dec. 31, 2019
Patents and Licenses
Weighted Average Original Life (years)			15 years 8 months 1 day		15 years 8 months 1 day
Gross Carrying Amount			$ 13,840,000		$ 13,840,000
Accumulated Amortization	$ 30,000,000	$ 30,000	$ 12,390,000	$ 90,000,000	$ 12,301,000

Patents and Licenses (Details 1

Patents and Licenses (Details 1) $ in Thousands	Dec. 31, 2019USD ($)
Patents and Licenses
2021	$ 119
2022	117
2023	113
2024	113
2025	$ 112

Patents and Licenses (Details N

Patents and Licenses (Details Narrative) - USD ($)	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019	Dec. 31, 2019
Patents and Licenses
Aggregate amortization expense	$ 30,000,000	$ 30,000	$ 12,390,000	$ 90,000,000	$ 12,301,000

Revenues (Details)

Revenues (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Revenues	$ 33,785	$ 38,883	$ 115,348	$ 120,600
United States [Member]
Revenues	19,925	24,644	65,648	76,640
Germany [Member]
Revenues	2,485	2,168	8,640	6,427
Other Countries Less Than 5% Of Revenues [Member]
Revenues	$ 11,375	$ 12,071	$ 41,060	$ 37,533

Revenues (Details 1)

Revenues (Details 1) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Total Revenues	$ 33,785	$ 38,883	$ 115,348	$ 120,600
Fluid Delivery [Member]
Total Revenues	16,512	17,888	60,620	54,334
Cardiovascular [Member]
Total Revenues	11,297	14,565	36,963	44,564
Ophthalmology [Member]
Total Revenues	1,171	1,556	2,970	5,656
Other [Member]
Total Revenues	$ 4,805	$ 4,874	$ 14,795	$ 16,046

Recent Accounting Pronounceme_2

Recent Accounting Pronouncements (Details Narrative)	9 Months Ended
	Sep. 30, 2020USD ($)
Decrease in retained earnings	$ 36,000
Trade Accounts Receivable [Member]
Provision for Other Credit Losses	4,000
Held-to-maturity Securities [Member]
Provision for Other Credit Losses	$ 42,000