Atrion (ATRI) 10-Q 9 Aug 21 2021 Q2 Quarterly report Financial data

Cover

Cover - shares	6 Months Ended
	Jun. 30, 2021	Jul. 13, 2021
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	Jun. 30, 2021
Entity Filer Category	Large Accelerated Filer
Document Fiscal Period Focus	Q2
Document Fiscal Year Focus	2021
Entity Common Stock Shares Outstanding		1,800,629
Document Quarterly Report	true
Document Transition Report	false
Entity Interactive Data Current	Yes
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
Security 12b Title	Common stock, Par Value $0.10 per share
Trading Symbol	ATRI
Security Exchange Name	NASDAQ

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited) - USD ($) shares in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited)
Revenues	$ 42,693,000	$ 37,968,000	$ 81,862,000	$ 81,563,000
Cost of goods sold	24,826,000	20,499,000	47,656,000	44,226,000
Gross profit	17,867,000	17,469,000	34,206,000	37,337,000
Operating expenses:
Selling	1,874,000	1,703,000	3,800,000	3,773,000
General and administrative	4,753,000	4,628,000	8,925,000	9,028,000
Research and development	1,445,000	1,092,000	2,755,000	2,776,000
Operating expense	8,072,000	7,423,000	15,480,000	15,577,000
Operating income	9,795,000	10,046,000	18,726,000	21,760,000
Interest and dividend income	183,000	367,000	399,000	858,000
Other investment income (losses)	963,000	354,000	1,025,000	(673,000)
Other income	0	0	66,000	0
Other Operating Income	1,146,000	721,000	1,490,000	185,000
Income before provision for income taxes	10,941,000	10,767,000	20,216,000	21,945,000
Provision for income taxes	(2,017,000)	(2,162,000)	(3,565,000)	(4,443,000)
Net income	$ 8,924,000	$ 8,605,000	$ 16,651,000	$ 17,502,000
Net income per basic share	$ 4.89	$ 4.69	$ 9.12	$ 9.49
Weighted average basic shares outstanding	1,826	1,835	1,826	1,844
Net income per diluted share	$ 4.88	$ 4.68	$ 9.10	$ 9.47
Weighted average diluted shares outstanding	1,828	1,839	1,830	1,849
Dividends per common share	$ 1.75	$ 1.55	$ 3.50	$ 3.10

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($)	Jun. 30, 2021	Dec. 31, 2020
Current assets:
Cash and cash equivalents	$ 17,070,000	$ 22,450,000
Short-term investments	30,478,000	19,258,000
Accounts receivable	22,682,000	16,445,000
Inventories	47,725,000	50,298,000
Prepaid expenses and other current assets	7,873,000	3,868,000
Current Asset	125,828,000	112,319,000
Long-term investments	32,441,000	46,207,000
Property, plant and equipment	225,384,000	218,912,000
Less accumulated depreciation and amortization	129,372,000	123,977,000
Property, Plant and Equipment, Net	96,012,000	94,935,000
Other assets and deferred charges:
Patents	1,361,000	1,421,000
Goodwill	9,730,000	9,730,000
Other	2,266,000	2,278,000
Other Asset	13,357,000	13,429,000
Total assets	267,638,000	266,890,000
Current liabilities:
Accounts payable and accrued liabilities	11,999,000	13,200,000
Accrued income and other taxes	670,000	436,000
Liabilities, Current	12,669,000	13,636,000
Line of credit	0	0
Other non-current liabilities	14,248,000	12,812,000
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	60,470,000	53,527,000
Retained earnings	347,954,000	337,700,000
Treasury shares,1,609 at June 30, 2021 and 1,594 at December 31, 2020, at cost	(168,045,000)	(151,127,000)
Total stockholders' equity	240,721,000	240,442,000
Total liabilities and stockholders' equity	$ 267,638,000	$ 266,890,000

CONDENSED CONSOLIDATED BALANC_2

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Jun. 30, 2021	Dec. 31, 2020
Stockholders' equity
Common stock, shares par value	$ 0.10	$ 0.10
Common stock, shares authorized	10,000,000	10,000,000
Common stock, shares issued	3,420,000	3,420,000
Treasury stock, shares	1,609,000	1,594,000

CONDENSED CONSOLIDATED STATEM_2

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($)	6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020
Cash flows from operating activities:
Net income	$ 16,651,000	$ 17,502,000
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	6,210,000	5,574,000
Deferred income taxes	1,092,000	503,000
Stock-based compensation	1,338,000	991,000
Net change in unrealized gains and losses on investments	(1,024,000)	933,000
Net change in accrued interest, premiums, and discounts on investments	269,000	(66,000)
Other	25,000	22,000
Other operating activities	24,561,000	25,459,000
Changes in operating assets and liabilities:
Accounts receivable	(6,237,000)	(3,558,000)
Inventories	2,573,000	(3,712,000)
Prepaid expenses	(4,006,000)	(681,000)
Other non-current assets	12,000	(254,000)
Accounts payable and accrued liabilities	(1,454,000)	518,000
Accrued income and other taxes	234,000	3,651,000
Other non-current liabilities	345,000	(2,000,000)
Cash flows from operating activities	16,028,000	19,423,000
Cash flows from investing activities:
Property, plant and equipment additions	(7,252,000)	(8,800,000)
Purchase of investments	(16,110,000)	(30,444,000)
Proceeds from sale of investments	166,000	896,000
Proceeds from maturities of investments	19,246,000	20,774,000
Cash flows from investing activities	(3,950,000)	(17,574,000)
Cash flows from financing activities:
Purchase of treasury stock	(10,488,000)	(17,037,000)
Shares tendered for employees' withholding taxes on stock-based compensation	(585,000)	(55,000)
Dividends paid	(6,385,000)	(5,706,000)
Cash flows from financing activities	(17,458,000)	(22,798,000)
Net change in cash and cash equivalents	(5,380,000)	(20,949,000)
Cash and cash equivalents at beginning of period	22,450,000	45,048,000
Cash and cash equivalents at end of period	17,070,000	24,099,000
Cash paid for:
Income taxes	5,095,000	199,000
Non-cash financing activities:
Non-cash effect of stock option exercises	$ 6,012,000	$ 0

CONDENSED CONSOLIDATED STATEM_3

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS EQUITY (Unaudited) - USD ($)	Total	Common Stock [Member]	Treasury Stock [Member]	Additional Paid-in Capital [Member]	Retained Earnings [Member]
Balance, shares at Dec. 31, 2019		1,855,000	1,565,000
Balance, amount at Dec. 31, 2019	$ 237,870,000	$ 342,000	$ (132,260,000)	$ 52,043,000	$ 317,745,000
Cumulative change in accounting principal	(36,000)				(36,000)
Cumulative change in accounting principal Balances, January 1, 2020, shares		1,855,000	1,565,000
Cumulative change in accounting principal Balances, January 1, 2020, amount	237,834,000	$ 342,000	$ (132,260,000)	52,043,000	317,709,000
Net income	17,502,000				17,502,000
Stock-based compensation transactions, shares			0
Stock-based compensation transactions, amount	1,000,000		$ 23,000	977,000
Shares surrendered in stock transactions, shares			0
Shares surrendered in stock transactions, amount	(55,000)		$ (55,000)
Purchase of treasury stock, shares		(26,000)	26,000
Purchase of treasury stock, amount	(17,037,000)		$ (17,037,000)
Dividends	(5,717,000)				(5,717,000)
Balance, shares at Jun. 30, 2020		1,829,000	1,591,000
Balance, amount at Jun. 30, 2020	233,527,000	$ 342,000	$ (149,329,000)	53,020,000	329,494,000
Balance, shares at Mar. 31, 2020		1,840,000	1,580,000
Balance, amount at Mar. 31, 2020	234,997,000	$ 342,000	$ (141,500,000)	52,422,000	323,733,000
Net income	8,605,000				8,605,000
Stock-based compensation transactions, shares		0
Stock-based compensation transactions, amount	616,000	$ 0	$ 18,000	598,000
Shares surrendered in stock transactions, shares		0	0
Shares surrendered in stock transactions, amount	(55,000)		$ (55,000)
Purchase of treasury stock, shares		(11,000)	11,000
Purchase of treasury stock, amount	(7,792,000)		$ (7,792,000)
Dividends	(2,844,000)				(2,844,000)
Balance, shares at Jun. 30, 2020		1,829,000	1,591,000
Balance, amount at Jun. 30, 2020	233,527,000	$ 342,000	$ (149,329,000)	53,020,000	329,494,000
Balance, shares at Dec. 31, 2020		1,826,000	1,594,000
Balance, amount at Dec. 31, 2020	240,442,000	$ 342,000	$ (151,127,000)	53,527,000	337,700,000
Net income	16,651,000				16,651,000
Stock-based compensation transactions, shares		3,000	(3,000)
Stock-based compensation transactions, amount	1,098,000		$ (5,845,000)	6,943,000
Shares surrendered in stock transactions, shares		(1,000)	1,000
Shares surrendered in stock transactions, amount	(585,000)		$ (585,000)
Purchase of treasury stock, shares		(17,000)	17,000
Purchase of treasury stock, amount	(10,488,000)		$ (10,488,000)
Dividends	(6,397,000)				(6,397,000)
Balance, shares at Jun. 30, 2021		1,811,000	1,609,000
Balance, amount at Jun. 30, 2021	240,721,000	$ 342,000	$ (168,045,000)	60,470,000	347,954,000
Balance, shares at Mar. 31, 2021		1,827,000	1,593,000
Balance, amount at Mar. 31, 2021	244,751,000	$ 342,000	$ (157,572,000)	59,760,000	342,221,000
Net income	8,924,000				8,925,000
Stock-based compensation transactions, shares		1,000	(1,000)
Stock-based compensation transactions, amount	725,000		$ 15,000	710,000
Purchase of treasury stock, shares		(17,000)	17,000
Purchase of treasury stock, amount	(10,488,000)		$ (10,488,000)
Dividends	(3,192,000)				(3,192,000)
Balance, shares at Jun. 30, 2021		1,811,000	1,609,000
Balance, amount at Jun. 30, 2021	$ 240,721,000	$ 342,000	$ (168,045,000)	$ 60,470,000	$ 347,954,000

Basis of Presentation

Basis of Presentation	6 Months Ended
	Jun. 30, 2021
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 (US GAAP) 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 US GAAP 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 US GAAP 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 August 9, 2021, 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, 2020 (“2020 Form 10-K”).

Inventories

Inventories	6 Months Ended
	Jun. 30, 2021
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): June 30, December 31, 2021 2020 Raw materials $ 19,935 $ 20,308 Work in process 10,626 11,339 Finished goods 17,164 18,651 Total inventories $ 47,725 $ 50,298

Income Per Share

Income Per Share	6 Months Ended
	Jun. 30, 2021
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 Six Months Ended 2021 2020 2021 2020 (in thousands, except per share amounts) Net income $ 8,924 $ 8,605 $ 16,651 $ 17,502 Weighted average basic shares outstanding 1,826 1,835 1,826 1,844 Add: Effect of dilutive securities 2 4 4 5 Weighted average diluted shares outstanding 1,828 1,839 1,830 1,849 Earnings per share: Basic $ 4.89 $ 4.69 $ 9.12 $ 9.49 Diluted $ 4.88 $ 4.68 $ 9.10 $ 9.47 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 six and eight shares of common stock for the quarters ended June 30, 2021 and 2020, respectively, and an average of three and 12 shares of common stock for the six months ended June 30, 2021 and 2020, respectively, were excluded from the computation of weighted average diluted shares outstanding because their effect would have been anti-dilutive.

Investments

Investments	6 Months Ended
	Jun. 30, 2021
Investments
4- Investments	(4) Investments As of June 30, 2021, 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): June 30, 2021 December 31, 2020 Cash and cash equivalents: Cash deposits $ 11,680 $ 16,628 Money market funds 4,640 4,822 Commercial paper 750 1,000 Total cash and cash equivalents $ 17,070 $ 22,450 Short-term investments: Commercial paper (held-to-maturity) $ 5,852 $ 5,178 Bonds (held-to-maturity) 24,651 14,101 Allowance for credit losses (25 ) (21 ) Total short-term investments $ 30,478 $ 19,258 Long-term investments: Mutual funds (available for sale) $ 529 $ 563 Bonds (held-to-maturity) 26,915 41,619 Allowance for credit losses (26 ) (52 ) Equity securities (available for sale) 5,023 4,077 Total long-term investments $ 32,441 $ 46,207 Total cash, cash equivalents and short and long-term investments $ 79,989 $ 87,915 We utilize 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 ratings and update them on a quarterly basis with our latest assessment completed on June 30, 2021. During the second quarter of 2021, our allowance for credit losses related to short-term investments increased by $3 thousand and our allowance for credit losses related to long-term investments decreased by $8 thousand. The following table summarizes the amortized cost of our held-to-maturity bonds at June 30, 2021, 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 $ 83 $ 3,126 $ 634 $ 33,909 $ 37,752 BBB/BB - - - 13,814 13,814 TOTAL $ 83 $ 3,126 $ 634 $ 47,723 $ 51,566 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 June 30, 2021: Money market 1 4,640 $ - $ - $ 4,640 Commercial paper 2 6,602 $ 1 $ - $ 6,603 Bonds 2 51,566 $ 249 $ (20 ) $ 51,795 Mutual funds 1 509 $ 20 $ - $ 529 Equity investments 2 5,675 $ - $ (652 ) $ 5,023 As of December 31, 2020: Money Market 1 4,822 $ - $ - $ 4,822 Commercial paper 2 6,178 $ - $ - $ 6,178 Bonds 2 55,720 $ 505 $ (44 ) $ 56,181 Mutual funds 1 599 $ - $ (36 ) $ 563 Equity investments 2 5,675 $ - $ (1,598 ) $ 4,077 The carrying value of our investments is reviewed quarterly for changes in circumstances or the occurrence of events that suggest an investment may not be fully recoverable. The bonds represent investments in various issuers at June 30, 2021. The unrealized losses for some of these bond investments reflect changes in interest rates following their acquisition. As of June 30, 2021, we had no bond investments in a loss position for more than 12 months. At June 30, 2021, the length of time until maturity of the commercial paper we owned ranged from less than a month to 10 months and the length of time to maturity for the bonds ranged from less than a month to 54 months.

Patents and Licenses

Patents and Licenses	6 Months Ended
	Jun. 30, 2021
Patents and Licenses
5- Patents and Licenses	(5) Patents and Licenses 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): June 30, 2021 December 31, 2020 Weighted Average Gross Accumulated Weighted Average Gross Accumulated 15.67 $ 13,840 $ 12,479 15.67 $ 13,840 $ 12,419 Aggregated amortization expense for patents and licenses was $30 thousand in each of the three month periods ended June 30, 2021 and 2020 and $60 thousand in each of the six month periods ended June 30, 2021 and 2020. Estimated future amortization expense for each of the years set forth below ending December 31 is as follows (in thousands): 2022 $ 117 2023 $ 113 2024 $ 113 2025 $ 112 2026 $ 112

Revenues

Revenues	6 Months Ended
	Jun. 30, 2021
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 June 30, 2021 and 2020 are as follows (in thousands): Three Months Ended Six Months Ended June 30, June 30, 2021 2020 2021 2020 United States $ 24,649 $ 19,530 $ 46,687 $ 45,722 Italy 2,908 2,072 4,982 3,554 China 2,611 1,800 4,212 2,998 Germany 2,064 2,918 4,464 6,155 Other countries less than 5% of revenues 10,461 11,648 21,517 23,134 Total $ 42,693 $ 37,968 $ 81,862 $ 81,563 A summary of revenues by product line for the three and six months ended June 30, 2021 and 2020 is as follows (in thousands): Three Months Ended Six Months Ended June 30, June 30, 2021 2020 2021 2020 Fluid Delivery $ 20,920 $ 21,761 $ 39,995 $ 44,108 Cardiovascular 13,157 10,841 25,987 25,666 Ophthalmology 2,102 936 3,796 1,800 Other 6,514 4,430 12,084 9,989 Total $ 42,693 $ 37,968 $ 81,862 $ 81,563 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 a new credit loss accounting methodology to calculate our credit loss allowance for our trade receivables following a lifetime “expected credit loss” measurement objective. 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	6 Months Ended
	Jun. 30, 2021
Recent Accounting Pronouncements
7- Recent Accounting Pronouncements	(7) Recent Accounting Pronouncements From time to time, new accounting pronouncements applicable to us are issued by the Financial Accounting Standards Board or other standards-setting bodies. We generally adopt these standards 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)	6 Months Ended
	Jun. 30, 2021
Inventories
Schedule of inventories	June 30, December 31, 2021 2020 Raw materials $ 19,935 $ 20,308 Work in process 10,626 11,339 Finished goods 17,164 18,651 Total inventories $ 47,725 $ 50,298

Income Per Share (Tables)

Income Per Share (Tables)	6 Months Ended
	Jun. 30, 2021
Income Per Share
Schedule of Computation of Basic and Diluted Income Per Share	Three Months Ended Six Months Ended 2021 2020 2021 2020 (in thousands, except per share amounts) Net income $ 8,924 $ 8,605 $ 16,651 $ 17,502 Weighted average basic shares outstanding 1,826 1,835 1,826 1,844 Add: Effect of dilutive securities 2 4 4 5 Weighted average diluted shares outstanding 1,828 1,839 1,830 1,849 Earnings per share: Basic $ 4.89 $ 4.69 $ 9.12 $ 9.49 Diluted $ 4.88 $ 4.68 $ 9.10 $ 9.47

Investments (Tables)

Investments (Tables)	6 Months Ended
	Jun. 30, 2021
Investments
Schedule of cash and cash equivalents andshort and long-term investments	June 30, 2021 December 31, 2020 Cash and cash equivalents: Cash deposits $ 11,680 $ 16,628 Money market funds 4,640 4,822 Commercial paper 750 1,000 Total cash and cash equivalents $ 17,070 $ 22,450 Short-term investments: Commercial paper (held-to-maturity) $ 5,852 $ 5,178 Bonds (held-to-maturity) 24,651 14,101 Allowance for credit losses (25 ) (21 ) Total short-term investments $ 30,478 $ 19,258 Long-term investments: Mutual funds (available for sale) $ 529 $ 563 Bonds (held-to-maturity) 26,915 41,619 Allowance for credit losses (26 ) (52 ) Equity securities (available for sale) 5,023 4,077 Total long-term investments $ 32,441 $ 46,207 Total cash, cash equivalents and short and long-term investments $ 79,989 $ 87,915
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 $ 83 $ 3,126 $ 634 $ 33,909 $ 37,752 BBB/BB - - - 13,814 13,814 TOTAL $ 83 $ 3,126 $ 634 $ 47,723 $ 51,566
Schedule of gross unrealized gains and losses on investments	Gross Unrealized Level Cost Gains Losses Fair Value As of June 30, 2021: Money market 1 4,640 $ - $ - $ 4,640 Commercial paper 2 6,602 $ 1 $ - $ 6,603 Bonds 2 51,566 $ 249 $ (20 ) $ 51,795 Mutual funds 1 509 $ 20 $ - $ 529 Equity investments 2 5,675 $ - $ (652 ) $ 5,023 As of December 31, 2020: Money Market 1 4,822 $ - $ - $ 4,822 Commercial paper 2 6,178 $ - $ - $ 6,178 Bonds 2 55,720 $ 505 $ (44 ) $ 56,181 Mutual funds 1 599 $ - $ (36 ) $ 563 Equity investments 2 5,675 $ - $ (1,598 ) $ 4,077

Patents and Licenses (Tables)

Patents and Licenses (Tables)	6 Months Ended
	Jun. 30, 2021
Patents and Licenses
Schedule of patents and licenses	June 30, 2021 December 31, 2020 Weighted Average Gross Accumulated Weighted Average Gross Accumulated 15.67 $ 13,840 $ 12,479 15.67 $ 13,840 $ 12,419
Schedule of estimated future amortization expense	2022 $ 117 2023 $ 113 2024 $ 113 2025 $ 112 2026 $ 112

Revenues (Tables)

Revenues (Tables)	6 Months Ended
	Jun. 30, 2021
Revenues (Tables)
Schedule of revenues by geographic area	Three Months Ended Six Months Ended June 30, June 30, 2021 2020 2021 2020 United States $ 24,649 $ 19,530 $ 46,687 $ 45,722 Italy 2,908 2,072 4,982 3,554 China 2,611 1,800 4,212 2,998 Germany 2,064 2,918 4,464 6,155 Other countries less than 5% of revenues 10,461 11,648 21,517 23,134 Total $ 42,693 $ 37,968 $ 81,862 $ 81,563
Schedule of revenues by product	Three Months Ended Six Months Ended June 30, June 30, 2021 2020 2021 2020 Fluid Delivery $ 20,920 $ 21,761 $ 39,995 $ 44,108 Cardiovascular 13,157 10,841 25,987 25,666 Ophthalmology 2,102 936 3,796 1,800 Other 6,514 4,430 12,084 9,989 Total $ 42,693 $ 37,968 $ 81,862 $ 81,563

Inventories (Details)

Inventories (Details) - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020
Inventories (Details)
Raw material	$ 19,935	$ 20,308
Work in process	10,626	11,339
Finished goods	17,164	18,651
Total inventories	$ 47,725	$ 50,298

Income per share (Details)

Income per share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Income Per Share
Net income	$ 8,924	$ 8,605	$ 16,651	$ 17,502
Weighted average basic shares outstanding	1,826	1,835	1,826	1,844
Add: Effect of dilutive securities	2	4	4	5
Weighted average diluted shares outstanding	1,828	1,839	1,830	1,849
Earnings per share:
Basic	$ 4.89	$ 4.69	$ 9.12	$ 9.49
Diluted	$ 4.88	$ 4.68	$ 9.10	$ 9.47

Income per share (Details Narra

Income per share (Details Narrative) - shares	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Income Per Share
Dilutive securities	6,000	8,000	3,000	12,000

Investments (Details)

Investments (Details) - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020	Jun. 30, 2020	Dec. 31, 2019
Cash and cash equivalents
Cash deposits	$ 11,680	$ 16,628
Money market funds	4,640	4,822
Commercial paper	750	1,000
Total cash and cash equivalents	17,070	22,450	$ 24,099	$ 45,048
Short-term investments
Commercial paper (held-to-maturity)	5,852	5,178
Bonds (held-to-maturity)	24,651	14,101
Allowance for credit losses	(25)	(21)
Total short-term investments	30,478	19,258
Long-term investments
Mutual funds (available for sale)	529	563
Bonds (held-to-maturity)	26,915	41,619
Allowance for credit losses	(26)	(52)
Equity securities (available for sale)	5,023	4,077
Total long-term investments	32,441	46,207
Total cash, cash equivalents and short and long-term investments	$ 79,989	$ 87,915

Investments (Details 1)

Investments (Details 1)	Jun. 30, 2021USD ($)
Debt securities, held-to-maturity	$ 51,566,000
AAA /AA/A [Member]
Debt securities, held-to-maturity	37,752,000
BBB/BB [Member]
Debt securities, held-to-maturity	13,814,000
Assets Baked Bonds [Member]
Debt securities, held-to-maturity	83,000
Assets Baked Bonds [Member] | AAA /AA/A [Member]
Debt securities, held-to-maturity	83,000
Fed Govt. Bonds/Notes [Member]
Debt securities, held-to-maturity	3,126,000
Fed Govt. Bonds/Notes [Member] | AAA /AA/A [Member]
Debt securities, held-to-maturity	3,126,000
Fed Govt. Bonds/Notes [Member] | BBB/BB [Member]
Debt securities, held-to-maturity	0
Municipal Bonds [Member]
Debt securities, held-to-maturity	634,000
Municipal Bonds [Member] | AAA /AA/A [Member]
Debt securities, held-to-maturity	634,000
Municipal Bonds [Member] | BBB/BB [Member]
Debt securities, held-to-maturity	0
Corporate Bonds [Member]
Debt securities, held-to-maturity	47,723,000
Corporate Bonds [Member] | AAA /AA/A [Member]
Debt securities, held-to-maturity	33,909,000
Corporate Bonds [Member] | BBB/BB [Member]
Debt securities, held-to-maturity	13,814,000
Asset Backed Bonds [Member] | BBB/BB [Member]
Debt securities, held-to-maturity	$ 0

Investments (Details 2)

Investments (Details 2) - USD ($)	Jun. 30, 2021	Dec. 31, 2020
Debt securities, held-to-maturity	$ 51,566,000
Mutual funds (available for sale) [Member]
Debt securities, held-to-maturity	509,000	$ 599,000
Gross Unrealized Fair Value	529,000	563,000
Gross Unrealized Gains	20,000	0
Gross Unrealized Losses	0	(36,000)
Money Market Funds [Member]
Debt securities, held-to-maturity	4,640,000	4,822,000
Gross Unrealized Fair Value	4,640,000	4,822,000
Gross Unrealized Gains	0	0
Gross Unrealized Losses	0	0
Commercial Paper [Member]
Debt securities, held-to-maturity	6,602,000	6,178,000
Gross Unrealized Fair Value	6,603,000	6,178,000
Gross Unrealized Gains	1,000	0
Gross Unrealized Losses	0	0
Bonds [Member]
Debt securities, held-to-maturity	51,566,000	55,720,000
Gross Unrealized Fair Value	51,795,000	56,181,000
Gross Unrealized Gains	249,000	505,000
Gross Unrealized Losses	(20,000)	(44,000)
Equity investments [Member]
Debt securities, held-to-maturity	5,675,000	5,675,000
Gross Unrealized Fair Value	5,023,000	4,077,000
Gross Unrealized Gains	0	0
Gross Unrealized Losses	$ (652,000)	$ (1,598,000)

Investments (Details Narrative)

Investments (Details Narrative) $ in Thousands	6 Months Ended
	Jun. 30, 2021USD ($)
Allowance for credit losses related to long term investments	$ 8
Allowance for credit losses related to short term investments	$ 3
Minimum [Member] | Bonds [Member]
Securities Maturity	10 years
Maximum [Member] | Bonds [Member]
Securities Maturity	54 years

Patents and Licenses (Details)

Patents and Licenses (Details) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2021	Dec. 31, 2020
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	$ 13,840
Accumulated Amortization	$ 12,479	$ 12,419

Patents and Licenses (Details 1

Patents and Licenses (Details 1) $ in Thousands	Jun. 30, 2021USD ($)
Patents and Licenses
2022	$ 117
2023	113
2024	113
2025	112
2026	$ 112

Patents and Licenses (Details N

Patents and Licenses (Details Narrative) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Patents and Licenses
Aggregate amortization expense	$ 30,000	$ 30,000	$ 60,000	$ 60,000

Revenues (Details)

Revenues (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Other countries less than 5% of revenues	$ 10,461	$ 11,648	$ 21,517	$ 23,134
Total Revenues	42,693	37,968	81,862	81,563
Italy [Member]
Total Revenues	2,908	2,072	4,982	3,554
Unites States [Member]
Total Revenues	24,649	19,530	46,687	45,722
China [Member]
Total Revenues	2,611	1,800	4,212	2,998
Germany [Member]
Total Revenues	$ 2,064	$ 2,918	$ 4,464	$ 6,155

Revenues (Details 1)

Revenues (Details 1) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Total Revenues	$ 42,693	$ 37,968	$ 81,862	$ 81,563
Other	6,514	4,430	12,084	9,989
Fluid Delivery [Member]
Total Revenues	20,920	21,761	39,995	44,108
Cardiovascular [Member]
Total Revenues	13,157	10,841	25,987	25,666
Ophthalmology [Member]
Total Revenues	$ 2,102	$ 936	$ 3,796	$ 1,800