Document_And_Entity_Informatio
Document And Entity Information | 9 Months Ended | |
Sep. 30, 2013 | Oct. 31, 2013 | |
Document and Entity Information [Abstract] | ' | ' |
Entity Registrant Name | 'ANIKA THERAPEUTICS INC | ' |
Document Type | '10-Q | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Common Stock, Shares Outstanding | ' | 13,825,542 |
Amendment Flag | 'false | ' |
Entity Central Index Key | '0000898437 | ' |
Entity Current Reporting Status | 'Yes | ' |
Entity Voluntary Filers | 'No | ' |
Entity Filer Category | 'Accelerated Filer | ' |
Entity Well-known Seasoned Issuer | 'Yes | ' |
Document Period End Date | 30-Sep-13 | ' |
Document Fiscal Year Focus | '2013 | ' |
Document Fiscal Period Focus | 'Q3 | ' |
Condensed_Consolidated_Balance
Condensed Consolidated Balance Sheets (Unaudited) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
Current assets: | ' | ' |
Cash and cash equivalents | $64,055,438 | $44,067,477 |
Accounts receivable, net of reserves of $369,989 and $337,459 at September 30, 2013 and December 31, 2012, respectively | 16,496,917 | 21,462,481 |
Inventories | 11,582,492 | 8,283,472 |
Current portion deferred income taxes | 1,989,422 | 2,031,583 |
Prepaid expenses and other | 878,472 | 1,539,477 |
Total current assets | 95,002,741 | 77,384,490 |
Property and equipment, at cost | 52,067,759 | 52,376,013 |
Less: accumulated depreciation | -18,805,895 | -17,263,032 |
33,261,864 | 35,112,981 | |
Long-term deposits and other | 145,563 | 171,053 |
Intangible assets, net | 19,197,226 | 20,334,636 |
Goodwill | 9,275,130 | 9,065,891 |
Total Assets | 156,882,524 | 142,069,051 |
Current liabilities: | ' | ' |
Accounts payable | 2,136,679 | 2,341,838 |
Accrued expenses | 5,228,399 | 5,837,044 |
Deferred revenue | 850,067 | 2,875,067 |
Current portion of long-term debt | 1,600,000 | 1,600,000 |
Income taxes payable | 542,302 | 1,798,669 |
Total current liabilities | 10,357,447 | 14,452,618 |
Other long-term liabilities | 1,172,099 | 1,541,124 |
Long-term deferred revenue | 2,027,778 | 2,152,778 |
Deferred tax liability | 8,319,038 | 6,997,397 |
Long-term debt | 6,800,000 | 8,000,000 |
Commitments and contingencies (Note 10) | ' | ' |
Stockholders’ equity: | ' | ' |
Preferred stock, $.01 par value; 1,250,000 shares authorized, no shares issued and outstanding at September 30, 2013 and December 31, 2012, respectively | ' | ' |
Common stock, $.01 par value; 30,000,000 shares authorized, 14,266,098 and 13,866,060 shares issued and outstanding at September 30, 2013 and December 31, 2012, respectively | 142,661 | 138,659 |
Additional paid-in-capital | 70,281,179 | 65,431,424 |
Accumulated currency translation adjustment | -2,147,511 | -2,654,630 |
Retained earnings | 59,929,833 | 46,009,681 |
Total stockholders’ equity | 128,206,162 | 108,925,134 |
Total Liabilities and Stockholders’ Equity | $156,882,524 | $142,069,051 |
Condensed_Consolidated_Balance1
Condensed Consolidated Balance Sheets (Unaudited) (Parentheticals) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
Accounts receivable, net of reserves (in Dollars) | $369,989 | $337,459 |
Preferred stock, par value (in Dollars per share) | $0.01 | $0.01 |
Preferred stock, shares authorized (in Shares) | 1,250,000 | 1,250,000 |
Preferred stock, shares issued (in Shares) | 0 | 0 |
Preferred stock, shares outstanding (in Shares) | 0 | 0 |
Common stock, par value (in Dollars per share) | $0.01 | $0.01 |
Common stock, shares authorized (in Shares) | 30,000,000 | 30,000,000 |
Common stock, shares issued (in Shares) | 14,266,098 | 13,866,060 |
Common stock,shares outstanding (in Shares) | 14,266,098 | 13,866,060 |
Condensed_Consolidated_Stateme
Condensed Consolidated Statements of Operations and Comprehensive Income (Unaudited) (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Product revenue | $17,023,346 | $14,055,440 | $51,585,242 | $46,551,045 |
Licensing, milestone and contract revenue | 731,092 | 711,171 | 2,244,584 | 2,200,995 |
Total revenue | 17,754,438 | 14,766,611 | 53,829,826 | 48,752,040 |
Operating expenses: | ' | ' | ' | ' |
Cost of product revenue | 5,377,568 | 7,221,028 | 16,530,070 | 21,718,735 |
Research & development | 1,618,012 | 1,217,086 | 5,029,974 | 4,048,359 |
Selling, general & administrative | 3,188,669 | 3,601,737 | 10,536,462 | 11,061,256 |
Restructuring charges | -196,084 | ' | -442,869 | ' |
Total operating expenses | 9,988,165 | 12,039,851 | 31,653,637 | 36,828,350 |
Income from operations | 7,766,273 | 2,726,760 | 22,176,189 | 11,923,690 |
Interest income (expense), net | -32,816 | -45,161 | -108,755 | -145,493 |
Income before income taxes | 7,733,457 | 2,681,599 | 22,067,434 | 11,778,197 |
Provision for income taxes | 2,776,199 | 1,036,349 | 8,147,282 | 4,483,960 |
Net income | 4,957,258 | 1,645,250 | 13,920,152 | 7,294,237 |
Basic net income per share: | ' | ' | ' | ' |
Net income (in Dollars per share) | $0.36 | $0.12 | $1.03 | $0.55 |
Basic weighted average common shares outstanding (in Shares) | 13,682,449 | 13,287,463 | 13,534,334 | 13,237,629 |
Diluted net income per share: | ' | ' | ' | ' |
Net income (in Dollars per share) | $0.33 | $0.11 | $0.95 | $0.51 |
Diluted weighted average common shares outstanding (in Shares) | 14,958,965 | 14,459,154 | 14,673,879 | 14,357,791 |
Net income | 4,957,258 | 1,645,250 | 13,920,152 | 7,294,237 |
Other comprehensive income | ' | ' | ' | ' |
Foreign currency translation adjustment | 916,474 | 557,712 | 507,119 | -286,031 |
Comprehensive income | $5,873,732 | $2,202,962 | $14,427,271 | $7,008,206 |
Condensed_Consolidated_Stateme1
Condensed Consolidated Statements of Cash Flows (Unaudited) (USD $) | 9 Months Ended | |
Sep. 30, 2013 | Sep. 30, 2012 | |
Cash flows from operating activities: | ' | ' |
Net income | $13,920,152 | $7,294,237 |
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' |
Depreciation and amortization | 3,579,474 | 3,364,432 |
Stock-based compensation expense | 1,156,929 | 914,003 |
Deferred income taxes | 2,022,965 | -1,012,571 |
Provision for doubtful accounts | 24,098 | 135,353 |
Provision for inventory | 165,803 | 790,379 |
Gain on sale of assets | -442,341 | ' |
Tax benefit from exercise of stock options | -764,181 | -456,796 |
Changes in operating assets and liabilities: | ' | ' |
Accounts receivable | 4,667,839 | 716,874 |
Inventories | -3,430,655 | -2,433,367 |
Prepaid expenses, other current and long-term assets | 531,449 | 429,718 |
Long-term deposits and other | 25,497 | 25,496 |
Accounts payable | 124,679 | -2,399,999 |
Accrued expenses | -642,430 | -873,153 |
Deferred revenue | -2,150,000 | -2,150,000 |
Income taxes payable | -1,256,367 | 1,398,008 |
Other long-term liabilities | -373,712 | -6,318 |
Net cash provided by operating activities | 17,159,199 | 5,736,296 |
Cash flows from investing activities: | ' | ' |
Proceeds from sale of assets | 530,865 | ' |
Purchase of property and equipment | -235,803 | -1,292,487 |
Net cash provided by (used in) investing activities | 295,062 | -1,292,487 |
Cash flows from financing activities: | ' | ' |
Principal payments on debt | -1,200,000 | -1,200,000 |
Proceeds from exercise of stock options | 2,932,649 | 331,639 |
Tax benefit from exercise of stock options | 764,181 | 456,796 |
Net cash provided by (used in) financing activities | 2,496,830 | -411,565 |
Exchange rate impact on cash | 36,870 | 46,390 |
Increase in cash and cash equivalents | 19,987,961 | 4,078,634 |
Cash and cash equivalents at beginning of period | 44,067,477 | 35,777,222 |
Cash and cash equivalents at end of period | $64,055,438 | $39,855,856 |
Note_1_Nature_of_Business
Note 1 - Nature of Business | 9 Months Ended | |
Sep. 30, 2013 | ||
Disclosure Text Block [Abstract] | ' | |
Nature of Operations [Text Block] | ' | |
1 | Nature of Business | |
Anika Therapeutics, Inc. (together with its subsidiaries, “Anika,” the “Company,” “we,” “us,” or “our”) develops, manufactures and commercializes therapeutic products for tissue protection, healing, and repair. These products are based on hyaluronic acid (“HA”), a naturally occurring, biocompatible polymer found throughout the body. Due to its unique biophysical and biochemical properties, HA plays an important role in a number of physiological functions such as the protection and lubrication of soft tissues and joints, the maintenance of the structural integrity of tissues, and the transport of molecules to and within cells. | ||
The Company is subject to risks common to companies in the biotechnology and medical device industries including, but not limited to, development by the Company or its competitors of new technological innovations, dependence on key personnel, protection of proprietary technology, commercialization of existing and new products, and compliance with the U.S. Food and Drug Administration (“FDA”) and foreign regulations and approval requirements as well as the ability to grow the Company’s business. | ||
Note_2_Basis_of_Presentation
Note 2 - Basis of Presentation | 9 Months Ended | |
Sep. 30, 2013 | ||
Disclosure Text Block [Abstract] | ' | |
Business Description and Basis of Presentation [Text Block] | ' | |
2 | Basis of Presentation | |
The accompanying unaudited condensed consolidated financial statements and related notes have been prepared by the Company pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”) and in accordance with accounting principles generally accepted in the United States (“U.S.”). The financial statements include the accounts of Anika Therapeutics, Inc. and its subsidiaries. Inter-company transactions and balances have been eliminated. The year-end consolidated balance sheet is derived from our audited financial statements, but does not include all disclosures required by accounting principles generally accepted in the U.S. In the opinion of management, these unaudited condensed consolidated financial statements contain all adjustments (consisting only of normal recurring adjustments) necessary to fairly state the condensed consolidated financial position of the Company as of September 30, 2013 and the results of its operations for the three and nine months ended September 30, 2013 and 2012 and cash flows for the nine months ended September 30, 2013 and 2012. | ||
Pursuant to the Health Care and Education Reconciliation Act of 2010 and in conjunction with the Patient Protection and Affordable Care Act, a medical device excise tax (“MDET”) became effective on January 1, 2013 for sales of certain medical devices. Some of our product sales are subject to the provisions of the MDET. The Company has elected to recognize any amounts related to the MDET under the gross method as allowed under Accounting Standards Codification (“ASC”) 605-45. For the three and nine-month periods ended September 30, 2013, amounts included in revenue and cost of goods sold for MDET were immaterial. There have been no other changes in our significant accounting policies for the three and nine months ended September 30, 2013 as compared to the significant accounting policies described in our Annual Report on Form 10-K for the fiscal year ended December 31, 2012. | ||
The accompanying unaudited condensed consolidated financial statements and related notes should be read in conjunction with the Company’s annual financial statements filed with its Annual Report on Form 10-K for the year ended December 31, 2012. The results of operations for the three and nine months ended September 30, 2013 are not necessarily indicative of the results to be expected for the year ending December 31, 2013. Certain prior period amounts have been reclassified to conform to the current period presentation. There was no impact on operating income. | ||
Note_3_Recent_Accounting_Prono
Note 3 - Recent Accounting Pronouncements Issued or Adopted | 9 Months Ended | |
Sep. 30, 2013 | ||
Accounting Policies [Abstract] | ' | |
Significant Accounting Policies [Text Block] | ' | |
3 | Recent Accounting Pronouncements Issued or Adopted | |
In February 2013, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2013-02, Comprehensive Income (Topic 220): Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income. The provisions of ASU 2013-02 are effective for annual and interim periods beginning after December 15, 2012. The objective of this update is to improve the reporting of reclassifications out of accumulated other comprehensive income. The amendments in this update seek to attain that objective by requiring an entity to report the effect of significant reclassifications out of accumulated other comprehensive income on the respective line items in net income if the amount being reclassified is required under U.S. generally accepted accounting principles to be reclassified in its entirety to net income. The adoption of this amendment did not have a material impact on our consolidated financial position, results of operations, or cash flows. | ||
In March 2013, the FASB issued ASU No. 2013-05, Foreign Currency Matters (Topic 830): Parent’s Accounting for the Cumulative Translation Adjustment upon Derecognition of Certain Subsidiaries or Groups of Assets within a Foreign Entity or of an Investment in a Foreign Entity. The provisions of ASU 2013-05 are effective for annual and interim periods beginning after December 15, 2013. The objective of the amendments in this update is to resolve the diversity in practice about whether Subtopic 810-10, Consolidation—Overall, or Subtopic 830-30, Foreign Currency Matters—Translation of Financial Statements, applies to the release of the cumulative translation adjustment into net income when a parent either sells a part or all of its investment in a foreign entity or no longer holds a controlling financial interest in a subsidiary or group of assets that is a nonprofit activity or a business (other than a sale of in substance real estate or conveyance of oil and gas mineral rights) within a foreign entity. The adoption of this amendment will not have a material impact on our consolidated financial position, results of operations, or cash flows. | ||
In July 2013, the FASB issued ASU 2013-11, Income Taxes (Topic 740) Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists. The provisions of ASU 2013-11 are effective for annual and interim periods beginning after December 15, 2013. The main provisions of ASU 2013-11 require an unrecognized tax benefit, or a portion of an unrecognized tax benefit, to be presented in the financial statements as a reduction to a deferred tax asset for the following; a net operating loss carryforward, a similar tax loss, or a tax credit carryforward, with certain exceptions. The adoption of this amendment will not have a material impact on our consolidated financial position, results of operations, or cash flows. | ||
Note_4_Fair_Value_Measurements
Note 4 - Fair Value Measurements | 9 Months Ended | ||
Sep. 30, 2013 | |||
Fair Value Disclosures [Abstract] | ' | ||
Fair Value Disclosures [Text Block] | ' | ||
4 | Fair Value Measurements | ||
We measure certain assets and liabilities, such as fixed income investments, at fair value based upon exit price, representing the amount that would be received on the sale of an asset or paid to transfer a liability, as the case may be, in an orderly transaction between market participants. As such, fair value may be based on assumptions that market participants would use in pricing an asset or liability. To increase the comparability of fair value measurements, the following hierarchical levels of inputs to valuation methodologies are used: | |||
• | Level 1 – Valuation is based upon quoted prices for identical instruments traded in active markets. Level 1 instruments include securities traded on active exchange markets, such as the New York Stock Exchange. | ||
• | Level 2 – Valuation is based upon quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active and model-based valuation techniques for which all significant assumptions are observable in the market. | ||
• | Level 3 – Valuation is generated from model-based techniques that use significant assumptions not observable in the market. These unobservable assumptions reflect our own estimates of assumptions market participants would use in pricing the asset or liability. | ||
Cash equivalents in money market accounts measured and recorded at fair value on a recurring basis was $34,264,268 at September 30, 2013 and December 31, 2012, and were classified as Level 1 instruments. | |||
Note_5_Equity_Incentive_Plan
Note 5 - Equity Incentive Plan | 9 Months Ended | ||||||||||
Sep. 30, 2013 | |||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | ||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] | ' | ||||||||||
5 | Equity Incentive Plan | ||||||||||
The Company estimates the fair value of stock options and stock appreciation rights using the Black-Scholes valuation model. Fair value of restricted stock is measured by the grant-date price of the Company’s shares. The fair value of each stock option award during the three and nine months ended September 30, 2013 and 2012, respectively, was estimated on the grant date using the Black-Scholes option-pricing model with the following assumptions: | |||||||||||
Three Months Ended | |||||||||||
September 30, | |||||||||||
2013 | 2012 | ||||||||||
Risk free interest rate | - | 0.63% | |||||||||
Expected volatility | - | 57.60% | |||||||||
Expected lives (years) | - | 4 | |||||||||
Expected dividend yield | - | 0.00% | |||||||||
Nine Months Ended | |||||||||||
September 30, | |||||||||||
2013 | 2012 | ||||||||||
Risk free interest rate | 0.61% | - | 0.70% | 0.63% | - | 0.64% | |||||
Expected volatility | 57.60% | 57.60% | |||||||||
Expected lives (years) | 4 | 4 | |||||||||
Expected dividend yield | 0.00% | 0.00% | |||||||||
The Company recorded $368,603 and $1,156,929 of share-based compensation expense for the three and nine months ended September 30, 2013, respectively, for equity compensation awards. The Company recorded $280,930 and $914,003 of share-based compensation expense for the three and nine months ended September 30, 2012, respectively, for equity compensation awards. The Company presents the expenses related to stock-based compensation awards in the same expense line items as cash compensation paid to the respective employees. | |||||||||||
At the 2013 Annual Meeting of Stockholders on June 18, 2013, the shareholders of the Company approved the amendment to the Anika Therapeutics, Inc. Second Amended and Restated 2003 Stock Option and Incentive Plan (the “2003 Plan”), which among other things, increased the number of shares reserved for issuance under the Company’s stock option and incentive plan by 650,000 to 3,800,000 shares. | |||||||||||
There were 374,500 stock options granted under the Plan during the nine months ended September 30, 2013. 13,800 restricted stock units (“RSUs”) were granted to members of the Company’s Board of Directors under the Plan during the three months ended March 31, 2013. The stock options and RSUs granted to employees and directors become exercisable or vest ratably over four years from the date of grant. No stock options or RSUs were granted to employees or members of the Company’s Board of Directors during the three months ended September 30, 2013. | |||||||||||
As of September 30, 2013, there was approximately $2.7 million of total unrecognized compensation cost related to non-vested stock options, stock appreciation rights (“SARs”), and restricted stock awards (“RSAs”) granted under the Company’s incentive plans. This cost is expected to be recognized over a weighted-average period of 2.7 years. | |||||||||||
The total intrinsic value of stock options and SARs exercised during the nine-month periods ended September 30, 2013 and 2012 was $4,095,833 and $1,643,502 respectively. Cash received from the exercise of stock options during the three and nine-month periods ended September 30, 2013 was $1,804,773 and $2,932,649, respectively. Cash received from the exercise of stock options during the three and nine-month periods ended September 30, 2012 was $184,606 and $331,639, respectively. | |||||||||||
There were approximately 1.7 million options and SARs outstanding under the Company’s incentive plans at September 30, 2013 with a weighted-average exercise price of $8.71 per share, an aggregate intrinsic value of approximately $25.2 million, and a weighted-average remaining contractual term of 6.5 years. | |||||||||||
None of the options or SARs outstanding at September 30, 2013 or 2012, respectively, had cash-settlement features. | |||||||||||
The Company may satisfy the awards upon exercise, or upon fulfillment of the vesting requirements for other equity-based awards, with either authorized but unissued shares or shares reacquired by the Company. Stock-based awards are granted with an exercise price equal to the market price of the Company’s stock on the date of grant. Awards contain service or performance conditions, generally become exercisable ratably over one to four years and have a ten year contractual term. | |||||||||||
Note_6_Earnings_Per_Share
Note 6 - Earnings Per Share | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Earnings Per Share [Abstract] | ' | ||||||||||||||||
Earnings Per Share [Text Block] | ' | ||||||||||||||||
6 | Earnings Per Share | ||||||||||||||||
The Company reports earnings per share in accordance with ASC 260, Earnings Per Share, which establishes standards for computing and presenting earnings per share. Basic earnings per share is computed by dividing net income available to common shareholders by the weighted average number of common shares outstanding during the period. Diluted earnings per share is computed by dividing net income available to common shareholders by the weighted average number of common shares outstanding and the number of dilutive potential common share equivalents during the period. Under the treasury stock method, unexercised “in-the-money” stock options are assumed to be exercised at the beginning of the period or at issuance, if later. The assumed proceeds are then used to purchase common shares at the average market price during the period. | |||||||||||||||||
Basic and diluted earnings per share for the three and nine months ended September 30, 2013 and 2012 are as follows: | |||||||||||||||||
Three months ended September 30, | Nine months ended September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Shares used in the calculation of basic earnings per share | 13,682,449 | 13,287,463 | 13,534,334 | 13,237,629 | |||||||||||||
Effect of dilutive securities: | |||||||||||||||||
Stock options, SARs, and RSAs, and shares held in escrow | 1,276,516 | 1,171,691 | 1,139,545 | 1,120,162 | |||||||||||||
Diluted shares used in the calculation of earnings per share | 14,958,965 | 14,459,154 | 14,673,879 | 14,357,791 | |||||||||||||
There were no anti-dilutive equity awards for the three months ended September 30, 2013. Equity awards of 88,278 shares were outstanding for the nine months ended September 30, 2013 and were not included in the computation of diluted earnings per share because the awards’ impact on earnings per share was anti-dilutive. Equity awards of 133,064 and 104,187 shares were outstanding for the three and nine months ended September 30, 2012, respectively, but were not included in the computation of diluted earnings per share because the awards’ impact on earnings per share was anti-dilutive. | |||||||||||||||||
Note_7_Inventories
Note 7 -Inventories | 9 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Balance Sheet Related Disclosures [Abstract] | ' | ||||||||
Schedule of Utility Inventory [Table Text Block] | ' | ||||||||
7 | Inventories | ||||||||
Inventories consist of the following: | |||||||||
September 30, | December 31, | ||||||||
2013 | 2012 | ||||||||
Raw materials | $ | 5,991,492 | $ | 6,109,807 | |||||
Work-in-process | 2,453,647 | 777,056 | |||||||
Finished goods | 3,137,353 | 1,396,609 | |||||||
Total | $ | 11,582,492 | $ | 8,283,472 | |||||
Inventories are stated at the lower of cost or market, with cost being determined using the first-in, first-out method. Work-in-process and finished goods inventories include materials, labor, and manufacturing overhead. | |||||||||
Note_8_Intangible_Assets_and_G
Note 8 - Intangible Assets and Goodwill | 9 Months Ended | ||||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | ||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Text Block] | ' | ||||||||||||||||||||||||
8. | Intangible Assets and Goodwill | ||||||||||||||||||||||||
In connection with the acquisition of Anika S.r.l., the Company acquired various intangible assets and goodwill. The Company evaluated the various intangibles and related cash flows from these intangible assets, as well as the useful lives and amortization methods related to these intangibles. The in-process research and development intangible assets initially have indefinite lives and are reviewed periodically to assess the project status, valuation, and disposition including write-off(s) for abandoned projects. Until such determination is made, they are not amortized. | |||||||||||||||||||||||||
The Company reviews its long-lived assets for impairment at least annually. Additionally, the Company will initiate a review for impairment if events or changes in business circumstances indicate that the carrying amount of the assets may not be fully recoverable or that the useful lives of the assets are no longer appropriate. Each impairment test will be based on a comparison of the undiscounted cash flows to the recorded value of the asset. If impairment is indicated, the asset is written down to its estimated fair value. | |||||||||||||||||||||||||
Intangible assets as of September 30, 2013 and December 31, 2012 consist of the following: | |||||||||||||||||||||||||
30-Sep-13 | 31-Dec-12 | ||||||||||||||||||||||||
Gross Value | Currency | Accumulated | Net Book | Net Book | Useful Life | ||||||||||||||||||||
Translation | Amortization | Value | Value | ||||||||||||||||||||||
Adjustment | |||||||||||||||||||||||||
Developed technology | $ | 16,700,000 | $ | (1,161,777 | ) | $ | (3,731,121 | ) | $ | 11,807,102 | $ | 12,370,042 | 15 | ||||||||||||
In-process research & development | 5,502,686 | (310,550 | ) | - | 5,192,136 | 4,980,574 | Indefinite | ||||||||||||||||||
Distributor relationships | 4,700,000 | (440,316 | ) | (3,189,671 | ) | 1,070,013 | 1,733,453 | 5 | |||||||||||||||||
Patents | 1,000,000 | (67,334 | ) | (212,079 | ) | 720,587 | 749,166 | 16 | |||||||||||||||||
Elevess trade name | 1,000,000 | - | (592,612 | ) | 407,388 | 501,401 | 9 | ||||||||||||||||||
Total | $ | 28,902,686 | $ | (1,979,977 | ) | $ | (7,725,483 | ) | $ | 19,197,226 | $ | 20,334,636 | |||||||||||||
The aggregate amortization expense related to intangible assets was $521,387 and $494,301 for the three months ended September 30, 2013 and 2012, respectively. The aggregate amortization expense for the nine months ended September 30, 2013 and 2012 was $1,555,796 and $1,517,285 respectively. | |||||||||||||||||||||||||
Changes in the carrying value of goodwill for the three and nine months ended September 30, 2013 were as follows: | |||||||||||||||||||||||||
For the three | For the nine | ||||||||||||||||||||||||
months ended | months ended | ||||||||||||||||||||||||
September 30, | September 30, | ||||||||||||||||||||||||
2013 | 2013 | ||||||||||||||||||||||||
Balance, beginning | $ | 8,923,197 | $ | 9,065,891 | |||||||||||||||||||||
Effect of foreign currency adjustments | 351,933 | 209,239 | |||||||||||||||||||||||
Balance, ending | $ | 9,275,130 | $ | 9,275,130 | |||||||||||||||||||||
Note_9_Accrued_Expenses
Note 9 - Accrued Expenses | 9 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Payables and Accruals [Abstract] | ' | ||||||||
Accounts Payable and Accrued Liabilities Disclosure [Text Block] | ' | ||||||||
9 | Accrued Expenses | ||||||||
Accrued expenses consist of the following: | |||||||||
September 30, | December 31, | ||||||||
2013 | 2012 | ||||||||
Payroll and benefits | $ | 2,558,293 | $ | 2,477,833 | |||||
Professional fees | 389,672 | 642,853 | |||||||
Clinical trial costs | 190,362 | 102,414 | |||||||
Restructuring costs | 208,207 | 933,732 | |||||||
Other | 1,881,865 | 1,680,212 | |||||||
Total | $ | 5,228,399 | $ | 5,837,044 | |||||
Note_10_Commitments_and_Contin
Note 10 - Commitments and Contingencies | 9 Months Ended | |
Sep. 30, 2013 | ||
Commitments and Contingencies Disclosure [Abstract] | ' | |
Commitments and Contingencies Disclosure [Text Block] | ' | |
10 | Commitments and Contingencies | |
In certain of its contracts, the Company warrants to its customers that the products it manufactures conform to the product specifications as in effect at the time of delivery of the product. The Company may also warrant that the products it manufactures do not infringe, violate or breach any patent or intellectual property rights, trade secret or other proprietary information of any third party. On occasion, the Company contractually indemnifies its customers against any and all losses arising out of, or in any way connected with, any claim or claims of breach of its warranties or any actual or alleged defect in any product caused by the negligence or acts or omissions of the Company. The Company maintains a products liability insurance policy that limits its exposure. Based on the Company’s historical activity in combination with its insurance policy coverage, the Company believes the estimated fair value of these indemnification agreements is minimal. The Company has no accrued warranties and has no history of claims paid. | ||
On July 7, 2010, Genzyme Corporation (“Genzyme”) filed a complaint against the Company in the United States District Court for the District of Massachusetts seeking unspecified damages and equitable relief. The complaint alleges that the Company has infringed U.S. Patent No. 5,143,724 by manufacturing MONOVISC® in the United States for sale outside the United States and will infringe U.S. Patent Nos. 5,143,724 and 5,399,351 if the Company begins manufacture and sale of MONOVISC in the United States. On August 30, 2010, the Company filed an answer denying liability. On April 26, 2011, Genzyme filed a motion to add its newly-issued U.S. Patent No. 7,931,030 to this litigation and also filed a separate new complaint in the District of Massachusetts alleging that the Company's manufacture and sale of MONOVISC in the United States will infringe that patent. On May 23, 2011, the District Court entered orders permitting Genzyme to file its supplemental complaint adding its newly-issued U.S. Patent No. 7,931,030 to this litigation and requiring Genzyme to withdraw its separately filed complaint. On July 14, 2011, the Company filed an answer to the supplemental complaint, denying liability. On May 10, 2012, Genzyme dismissed its claim of infringement of U.S. Patent No. 5,399,351 and is no longer asserting that patent against the Company. The Company believes that neither MONOVISC, nor its manufacture, does or will infringe any valid and enforceable claim of the asserted patents. Management has assessed and determined that contingent losses related to this matter are not probable. Therefore, pursuant to ASC 450, Contingencies, an accrual has not been recorded for this loss contingency. Pursuant to the terms of the licensing and supply agreement entered into with DePuy Mitek, Inc. in December 2011, DePuy Mitek agreed to assume certain obligations of the Company related to this litigation. On August 3, 2012, a jury in the United States District Court for the District of Massachusetts held U.S. Patent No. 7,931,030 invalid as obvious and not infringed in litigation between Genzyme and Seikagaku Corporation, Zimmer Holdings Inc., Zimmer, Inc. and Zimmer U.S., Inc. concerning the Gel-One product. On September 19, 2012, Genzyme and the Company jointly requested that the District Court stay Genzyme’s lawsuit against the Company pending the full resolution of the Seikagaku/Zimmer lawsuit, including through any appeal of the judgment entered in that lawsuit. The District Court granted the motion on September 28, 2012. In September 2013, the District Court in the Seikagaku/Zimmer lawsuit issued an order denying all the post-trial motions in the case, except for Seikagaku/Zimmer’s motion for damages against Genzyme. On October 14, 2013, Genzyme filed a notice of appeal to the United States Court of Appeals for the Federal circuit challenging the District Court’s judgment of invalidity and non-infringement. The appeal is currently pending. As to Seikagaku/Zimmer’s motion for damages, the District Court held a scheduling conference on October 30, 2013 and issued a scheduling order on October 31, 2013. | ||
In 2011, Merogel Injectable was voluntarily withdrawn from the market due to a labeling error on the product’s packaging. We settled the matter related to this dispute with Medtronic in August, 2012. This labeling error related to conduct that initially occurred prior to our acquisition of Anika S.r.l. from Fidia Farmaceutici S.p.A. (“Fidia”) and, as a result, we made claims against Fidia for indemnification for Anika’s losses related to this issue. Fidia maintained that it did not have liability for this matter, and asserted a counterclaim against Anika for failing to consent to the release of the remaining shares held in escrow upon the closing of the Anika S.r.l. acquisition. The Company reached agreement with Fidia in October 2013 to settle this matter without admission of liability by either party in return for a payment made by Fidia to the Company. As a result of the settlement, the arbitration with Fidia pending before the London Court of International Arbitration has been withdrawn, and shares previously held in escrow have been released. | ||
We are also involved in various other legal proceedings arising in the normal course of business. Although the outcomes of these other legal proceedings are inherently difficult to predict, we do not expect the resolution of these other legal proceedings to have a material adverse effect on our financial position, results of operations or cash flow. | ||
Note_11_Longterm_Debt
Note 11 - Long-term Debt | 9 Months Ended | |
Sep. 30, 2013 | ||
Disclosure Text Block [Abstract] | ' | |
Long-term Debt [Text Block] | ' | |
11 | Long-term Debt | |
On January 31, 2008, the Company entered into an unsecured Credit Agreement with Bank of America. As of September 30, 2013, the Company had an outstanding debt balance of $8,400,000, at an interest rate of 1.43%. The interest rate payable on our debt is determined, at the Company’s option, based on LIBOR plus 1.25%, or the lender’s prime rate. | ||
ASC 825, Financial Instruments, requires disclosure about the fair value of financial instruments in interim as well as in annual financial statements. The carrying value of our debt instrument was $8,400,000 and $9,600,000 at September 30, 2013 and December 31, 2012, respectively, of which $1,600,000 was recorded as current at each date. The estimated fair value of our debt, which is a Level 2 instrument for fair value measurement purposes, approximated book value at September 30, 2013 and December 31, 2012, respectively. | ||
Note_12_Income_Taxes
Note 12 - Income Taxes | 9 Months Ended | |
Sep. 30, 2013 | ||
Income Tax Disclosure [Abstract] | ' | |
Income Tax Disclosure [Text Block] | ' | |
12 | Income Taxes | |
Provisions for income taxes were $2,776,199 and $8,147,282 for the three and nine-month periods ended September 30, 2013, based on effective tax rates of 35.9 % and 36.9%, respectively. Provisions for income taxes were $1,036,349 and $4,483,960 for the three and nine-month periods ended September 30, 2012, respectively, based on effective tax rates of 38.6% and 38.1%. The decrease in the effective tax rate for the periods ended 2013, as compared to the same periods in the previous year, is primarily due to increases in anticipated tax credits and the tax benefits associated with increased incentive stock option exercise activity in the periods ended 2013 as compared to 2012. | ||
The Company files income tax returns in the U.S. on a federal basis, in certain U.S. states, and in Italy. The associated tax filings remain subject to examination by applicable tax authorities for a certain length of time following the tax year to which those filings relate. Our 2010 through 2012 tax years remain subject to examination by the IRS and other taxing authorities for U.S. federal and state tax purposes. The 2009 through 2012 tax years remain subject to examination by the appropriate governmental authorities in Italy. | ||
In connection with the preparation of the financial statements, the Company performed an analysis to ascertain if it was more likely than not that it would be able to utilize, in future periods, the net deferred tax assets associated with its net operating loss carryforward and its investment tax credit carryforward. We have concluded that the positive evidence outweighs the negative evidence and, thus, that those deferred tax assets are realizable on a “more likely than not” basis. As such, we have not recorded a valuation allowance at September 30, 2013 or December 31, 2012, respectively. | ||
Note_13_Related_Party
Note 13 - Related Party | 9 Months Ended | |
Sep. 30, 2013 | ||
Related Party Transactions [Abstract] | ' | |
Related Party Transactions Disclosure [Text Block] | ' | |
13 | Related Party | |
In connection with our acquisition of Anika S.r.l. on December 30, 2009, Fidia acquired ownership of 1,981,192 shares of the Company's common stock, of which 500,000 shares remained in escrow at September 30, 2013. On August 6, 2013, Fidia sold 1,270,000 shares of Anika Therapeutics, Inc. common stock and as of September 30, 2013, Fidia owns 711,192 shares of the Company, or just less than 5% of the outstanding shares of the Company and, under the guidance provided by ASC 850, Related Party Disclosures, Fidia is no longer considered a related party to the Company. | ||
Note_14_Segment_and_Geographic
Note 14 - Segment and Geographic Information | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Segment Reporting [Abstract] | ' | ||||||||||||||||
Segment Reporting Disclosure [Text Block] | ' | ||||||||||||||||
14 | Segment and Geographic Information | ||||||||||||||||
The Company has one reportable operating segment, the results of which are disclosed in the accompanying unaudited condensed consolidated financial statements. | |||||||||||||||||
Product revenue by product group is as follows: | |||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Orthobiologics | $ | 12,830,566 | $ | 9,242,783 | $ | 40,620,339 | $ | 30,262,991 | |||||||||
Dermal | 267,766 | 376,251 | 1,066,409 | 1,033,302 | |||||||||||||
Surgical | 1,136,248 | 1,426,273 | 3,955,134 | 3,874,405 | |||||||||||||
Ophthalmic | 1,425,609 | 1,891,433 | 2,818,407 | 8,515,160 | |||||||||||||
Veterinary | 1,363,157 | 1,118,700 | 3,124,953 | 2,865,187 | |||||||||||||
Product revenue | $ | 17,023,346 | $ | 14,055,440 | $ | 51,585,242 | $ | 46,551,045 | |||||||||
Total revenue by geographic location in total and as a percentage of total revenue, for the three and nine months ended September 30, 2013 and 2012 are as follows (prior period numbers have been reclassified to conform to current period presentation): | |||||||||||||||||
Three Months Ended September 30, | |||||||||||||||||
2013 | 2012 | ||||||||||||||||
Revenue | Percentage of | Revenue | Percentage of | ||||||||||||||
Revenue | Revenue | ||||||||||||||||
Geographic Location: | |||||||||||||||||
United States | $ | 14,485,821 | 82 | % | $ | 12,628,612 | 86 | % | |||||||||
Europe | 1,656,656 | 9 | % | 1,064,165 | 7 | % | |||||||||||
Other | 1,611,961 | 9 | % | 1,073,834 | 7 | % | |||||||||||
Total revenue | $ | 17,754,438 | 100 | % | $ | 14,766,611 | 100 | % | |||||||||
Nine Months Ended September 30, | |||||||||||||||||
2013 | 2012 | ||||||||||||||||
Revenue | Percentage of | Revenue | Percentage of | ||||||||||||||
Revenue | Revenue | ||||||||||||||||
Geographic Location: | |||||||||||||||||
United States | $ | 42,251,336 | 78 | % | $ | 40,463,657 | 83 | % | |||||||||
Europe | 5,226,619 | 10 | % | 3,993,708 | 8 | % | |||||||||||
Other | 6,351,871 | 12 | % | 4,294,675 | 9 | % | |||||||||||
Total revenue | $ | 53,829,826 | 100 | % | $ | 48,752,040 | 100 | % | |||||||||
Note_15_Restructuring_Charges
Note 15 - Restructuring Charges | 9 Months Ended | ||||||||||||
Sep. 30, 2013 | |||||||||||||
Restructuring and Related Activities [Abstract] | ' | ||||||||||||
Restructuring and Related Activities Disclosure [Text Block] | ' | ||||||||||||
15. | Restructuring Charges | ||||||||||||
In December 2012, the Company announced the closure of its tissue engineering facility in Abano Terme, Italy due to the inability to meet strict regulatory standards, effective January 1, 2013, established by the European Medicines Agency (“EMA”) for Advanced Therapy Medicinal Products. The restructuring plan involved a workforce reduction as well as associated asset abandonments. The Company recorded restructuring and impairment charges in the fourth quarter of 2012 of approximately $2.5 million. Of the total restructuring and impairment charges related to the tissue engineering operation, approximately $1.2 million related to the non-cash termination and related impairment of an IPR&D project, $0.3 million related to the disposal of property and equipment, and $0.1 million related to the disposal of inventory. Accrued restructuring charges of $0.9 million, as of December 31, 2012, were primarily related to employee termination costs. A majority of the cash payments are anticipated to occur in 2013. | |||||||||||||
We were substantially completed with the restructuring plan as of June 30, 2013. Certain previously impaired and written-off equipment were sold, resulting in restructuring credit of $196,084 and $442,869 in the three and nine months ended September 30, 2013, respectively. The carrying value of the restructuring accrual approximated fair value at September 30, 2013. | |||||||||||||
The following table summarizes restructuring accrual activity for the nine months ended September 30, 2013: | |||||||||||||
Restructuring Accrual | |||||||||||||
Employee | Activity | Total | |||||||||||
Severance and | Termination and | ||||||||||||
Related Benefits | Facility Closure | ||||||||||||
Costs | |||||||||||||
31-Dec-12 | $ | 801,453 | $ | 132,279 | $ | 933,732 | |||||||
Cash Proceeds, Disbursements | (613,870 | ) | (124,488 | ) | (738,358 | ) | |||||||
Foreign Exchange Impact | 12,814 | 19 | 12,833 | ||||||||||
30-Sep-13 | $ | 200,397 | $ | 7,810 | $ | 208,207 | |||||||
Note_5_Equity_Incentive_Plan_T
Note 5 - Equity Incentive Plan (Tables) | 9 Months Ended | ||||||||||
Sep. 30, 2013 | |||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | ||||||||||
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block] | ' | ||||||||||
Three Months Ended | |||||||||||
September 30, | |||||||||||
2013 | 2012 | ||||||||||
Risk free interest rate | - | 0.63% | |||||||||
Expected volatility | - | 57.60% | |||||||||
Expected lives (years) | - | 4 | |||||||||
Expected dividend yield | - | 0.00% | |||||||||
Nine Months Ended | |||||||||||
September 30, | |||||||||||
2013 | 2012 | ||||||||||
Risk free interest rate | 0.61% | - | 0.70% | 0.63% | - | 0.64% | |||||
Expected volatility | 57.60% | 57.60% | |||||||||
Expected lives (years) | 4 | 4 | |||||||||
Expected dividend yield | 0.00% | 0.00% |
Note_6_Earnings_Per_Share_Tabl
Note 6 - Earnings Per Share (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Earnings Per Share [Abstract] | ' | ||||||||||||||||
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | ' | ||||||||||||||||
Three months ended September 30, | Nine months ended September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Shares used in the calculation of basic earnings per share | 13,682,449 | 13,287,463 | 13,534,334 | 13,237,629 | |||||||||||||
Effect of dilutive securities: | |||||||||||||||||
Stock options, SARs, and RSAs, and shares held in escrow | 1,276,516 | 1,171,691 | 1,139,545 | 1,120,162 | |||||||||||||
Diluted shares used in the calculation of earnings per share | 14,958,965 | 14,459,154 | 14,673,879 | 14,357,791 |
Note_7_Inventories_Tables
Note 7 -Inventories (Tables) | 9 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Balance Sheet Related Disclosures [Abstract] | ' | ||||||||
Schedule of Inventory, Current [Table Text Block] | ' | ||||||||
September 30, | December 31, | ||||||||
2013 | 2012 | ||||||||
Raw materials | $ | 5,991,492 | $ | 6,109,807 | |||||
Work-in-process | 2,453,647 | 777,056 | |||||||
Finished goods | 3,137,353 | 1,396,609 | |||||||
Total | $ | 11,582,492 | $ | 8,283,472 |
Note_8_Intangible_Assets_and_G1
Note 8 - Intangible Assets and Goodwill (Tables) | 9 Months Ended | ||||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | ||||||||||||||||||||||||
ScheduleOfFiniteLivedAndIndefiniteLivedIntangibleAssetsByMajorClassTextBlock | ' | ||||||||||||||||||||||||
30-Sep-13 | 31-Dec-12 | ||||||||||||||||||||||||
Gross Value | Currency | Accumulated | Net Book | Net Book | Useful Life | ||||||||||||||||||||
Translation | Amortization | Value | Value | ||||||||||||||||||||||
Adjustment | |||||||||||||||||||||||||
Developed technology | $ | 16,700,000 | $ | (1,161,777 | ) | $ | (3,731,121 | ) | $ | 11,807,102 | $ | 12,370,042 | 15 | ||||||||||||
In-process research & development | 5,502,686 | (310,550 | ) | - | 5,192,136 | 4,980,574 | Indefinite | ||||||||||||||||||
Distributor relationships | 4,700,000 | (440,316 | ) | (3,189,671 | ) | 1,070,013 | 1,733,453 | 5 | |||||||||||||||||
Patents | 1,000,000 | (67,334 | ) | (212,079 | ) | 720,587 | 749,166 | 16 | |||||||||||||||||
Elevess trade name | 1,000,000 | - | (592,612 | ) | 407,388 | 501,401 | 9 | ||||||||||||||||||
Total | $ | 28,902,686 | $ | (1,979,977 | ) | $ | (7,725,483 | ) | $ | 19,197,226 | $ | 20,334,636 | |||||||||||||
Schedule of Goodwill [Table Text Block] | ' | ||||||||||||||||||||||||
For the three | For the nine | ||||||||||||||||||||||||
months ended | months ended | ||||||||||||||||||||||||
September 30, | September 30, | ||||||||||||||||||||||||
2013 | 2013 | ||||||||||||||||||||||||
Balance, beginning | $ | 8,923,197 | $ | 9,065,891 | |||||||||||||||||||||
Effect of foreign currency adjustments | 351,933 | 209,239 | |||||||||||||||||||||||
Balance, ending | $ | 9,275,130 | $ | 9,275,130 |
Note_9_Accrued_Expenses_Tables
Note 9 - Accrued Expenses (Tables) | 9 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Payables and Accruals [Abstract] | ' | ||||||||
Schedule of Accrued Liabilities [Table Text Block] | ' | ||||||||
September 30, | December 31, | ||||||||
2013 | 2012 | ||||||||
Payroll and benefits | $ | 2,558,293 | $ | 2,477,833 | |||||
Professional fees | 389,672 | 642,853 | |||||||
Clinical trial costs | 190,362 | 102,414 | |||||||
Restructuring costs | 208,207 | 933,732 | |||||||
Other | 1,881,865 | 1,680,212 | |||||||
Total | $ | 5,228,399 | $ | 5,837,044 |
Note_14_Segment_and_Geographic1
Note 14 - Segment and Geographic Information (Tables) | 6 Months Ended | 9 Months Ended | ||||||||||||||||||||||||||||||||
Jun. 30, 2013 | Sep. 30, 2013 | |||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | ' | ' | ||||||||||||||||||||||||||||||||
Schedule of Segment Reporting Information, by Segment [Table Text Block] | ' | ' | ||||||||||||||||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||||||||||||
Orthobiologics | $ | 12,830,566 | $ | 9,242,783 | $ | 40,620,339 | $ | 30,262,991 | ||||||||||||||||||||||||||
Dermal | 267,766 | 376,251 | 1,066,409 | 1,033,302 | ||||||||||||||||||||||||||||||
Surgical | 1,136,248 | 1,426,273 | 3,955,134 | 3,874,405 | ||||||||||||||||||||||||||||||
Ophthalmic | 1,425,609 | 1,891,433 | 2,818,407 | 8,515,160 | ||||||||||||||||||||||||||||||
Veterinary | 1,363,157 | 1,118,700 | 3,124,953 | 2,865,187 | ||||||||||||||||||||||||||||||
Product revenue | $ | 17,023,346 | $ | 14,055,440 | $ | 51,585,242 | $ | 46,551,045 | ||||||||||||||||||||||||||
ScheduleOfRevenueAndOperatingIncomeByGeographicalAreas | ' | ' | ||||||||||||||||||||||||||||||||
Three Months Ended September 30, | ||||||||||||||||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||||||||||||||||
Revenue | Percentage of | Revenue | Percentage of | |||||||||||||||||||||||||||||||
Revenue | Revenue | |||||||||||||||||||||||||||||||||
Geographic Location: | ||||||||||||||||||||||||||||||||||
United States | $ | 14,485,821 | 82 | % | $ | 12,628,612 | 86 | % | ||||||||||||||||||||||||||
Europe | 1,656,656 | 9 | % | 1,064,165 | 7 | % | ||||||||||||||||||||||||||||
Other | 1,611,961 | 9 | % | 1,073,834 | 7 | % | ||||||||||||||||||||||||||||
Total revenue | $ | 17,754,438 | 100 | % | $ | 14,766,611 | 100 | % | ||||||||||||||||||||||||||
Nine Months Ended September 30, | ||||||||||||||||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||||||||||||||||
Revenue | Percentage of | Revenue | Percentage of | |||||||||||||||||||||||||||||||
Revenue | Revenue | |||||||||||||||||||||||||||||||||
Geographic Location: | ||||||||||||||||||||||||||||||||||
United States | $ | 42,251,336 | 78 | % | $ | 40,463,657 | 83 | % | ||||||||||||||||||||||||||
Europe | 5,226,619 | 10 | % | 3,993,708 | 8 | % | ||||||||||||||||||||||||||||
Other | 6,351,871 | 12 | % | 4,294,675 | 9 | % | ||||||||||||||||||||||||||||
Total revenue | $ | 53,829,826 | 100 | % | $ | 48,752,040 | 100 | % |
Note_15_Restructuring_Charges_
Note 15 - Restructuring Charges (Tables) | 9 Months Ended | ||||||||||||
Sep. 30, 2013 | |||||||||||||
Restructuring and Related Activities [Abstract] | ' | ||||||||||||
Schedule of Restructuring Reserve by Type of Cost [Table Text Block] | ' | ||||||||||||
Restructuring Accrual | |||||||||||||
Employee | Activity | Total | |||||||||||
Severance and | Termination and | ||||||||||||
Related Benefits | Facility Closure | ||||||||||||
Costs | |||||||||||||
31-Dec-12 | $ | 801,453 | $ | 132,279 | $ | 933,732 | |||||||
Cash Proceeds, Disbursements | (613,870 | ) | (124,488 | ) | (738,358 | ) | |||||||
Foreign Exchange Impact | 12,814 | 19 | 12,833 | ||||||||||
30-Sep-13 | $ | 200,397 | $ | 7,810 | $ | 208,207 |
Note_4_Fair_Value_Measurements1
Note 4 - Fair Value Measurements (Details) (USD $) | Sep. 30, 2013 |
Fair Value Disclosures [Abstract] | ' |
Cash and Cash Equivalents, Fair Value Disclosure | $34,264,268 |
Note_5_Equity_Incentive_Plan_D
Note 5 - Equity Incentive Plan (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Note 5 - Equity Incentive Plan (Details) [Line Items] | ' | ' | ' | ' |
Allocated Share-based Compensation Expense | $368,603 | $280,930 | $1,156,929 | $914,003 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross (in Shares) | ' | ' | 374,500 | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period (in Shares) | ' | ' | 13,800 | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | ' | ' | '4 years | ' |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized | 2,700,000 | ' | 2,700,000 | ' |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | ' | ' | '2 years 255 days | ' |
SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsAndStockAppreciationRightsExercisesInPeriodTotalIntrinsicValue | ' | ' | 4,095,833 | 1,643,502 |
Proceeds from Other Equity | 1,804,773 | 184,606 | 2,932,649 | 331,639 |
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsAndStockAppreciationRightsOutstandingNumber (in Shares) | ' | ' | 1,700,000 | ' |
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsAndStockAppreciationRightsWeightedAverageExercisePrice (in Dollars per share) | $8.71 | ' | $8.71 | ' |
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsAndStockAppreciationRightsOutstandingIntrinsicValue | $25,200,000 | ' | $25,200,000 | ' |
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsAndStockAppreciationRightsOutstandingWeightedAverageRemainingContractualTerm | '6 years 6 months | ' | '6 years 6 months | ' |
ShareBasedCompensationArrangementByShareBasedPaymentAwardContractualTermRange | ' | ' | '10 years | ' |
Minimum [Member] | ' | ' | ' | ' |
Note 5 - Equity Incentive Plan (Details) [Line Items] | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Number of Additional Shares Authorized (in Shares) | ' | ' | 650,000 | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | ' | ' | '1 year | ' |
Maximum [Member] | ' | ' | ' | ' |
Note 5 - Equity Incentive Plan (Details) [Line Items] | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Number of Additional Shares Authorized (in Shares) | ' | ' | 3,800,000 | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | ' | ' | '4 years | ' |
Note_5_Equity_Incentive_Plan_D1
Note 5 - Equity Incentive Plan (Details) - Assumptions Used to Estimate Fair Value of Stock Options and Stock Appreciation Rights Awards | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Minimum [Member] | Minimum [Member] | Maximum [Member] | Maximum [Member] | ||
Note 5 - Equity Incentive Plan (Details) - Assumptions Used to Estimate Fair Value of Stock Options and Stock Appreciation Rights Awards [Line Items] | ' | ' | ' | ' | ' |
Risk free interest rate | 0.63% | 0.61% | 0.63% | 0.70% | 0.64% |
Expected volatility | 57.60% | 57.60% | 57.60% | ' | ' |
Expected lives (years) | '4 years | '4 years | '4 years | ' | ' |
Expected dividend yield | 0.00% | 0.00% | 0.00% | ' | ' |
Note_6_Earnings_Per_Share_Deta
Note 6 - Earnings Per Share (Details) | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Earnings Per Share [Abstract] | ' | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 133,064 | 88,278 | 104,187 |
Note_6_Earnings_Per_Share_Deta1
Note 6 - Earnings Per Share (Details) - Basic and Diluted Earnings Per Share | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Basic and Diluted Earnings Per Share [Abstract] | ' | ' | ' | ' |
Shares used in the calculation of basic earnings per share | 13,682,449 | 13,287,463 | 13,534,334 | 13,237,629 |
Effect of dilutive securities: | ' | ' | ' | ' |
Stock options, SARs, and RSAs, and shares held in escrow | 1,276,516 | 1,171,691 | 1,139,545 | 1,120,162 |
Diluted shares used in the calculation of earnings per share | 14,958,965 | 14,459,154 | 14,673,879 | 14,357,791 |
Note_7_Inventories_Details_Inv
Note 7 -Inventories (Details) - Inventories (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
Inventories [Abstract] | ' | ' |
Raw materials | $5,991,492 | $6,109,807 |
Work-in-process | 2,453,647 | 777,056 |
Finished goods | 3,137,353 | 1,396,609 |
Total | $11,582,492 | $8,283,472 |
Note_8_Intangible_Assets_and_G2
Note 8 - Intangible Assets and Goodwill (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ' | ' | ' | ' |
Amortization of Intangible Assets | $521,387 | $494,301 | $1,555,796 | $1,517,285 |
Note_8_Intangible_Assets_and_G3
Note 8 - Intangible Assets and Goodwill (Details) - Intangible assets (USD $) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2013 | Dec. 31, 2012 | |
Note 8 - Intangible Assets and Goodwill (Details) - Intangible assets [Line Items] | ' | ' |
Gross Value | $28,902,686 | ' |
Currency Translation Adjustment | -1,979,977 | ' |
Accumulated Amortization | -7,725,483 | ' |
Net Book Value | 19,197,226 | 20,334,636 |
Developed Technology Rights [Member] | ' | ' |
Note 8 - Intangible Assets and Goodwill (Details) - Intangible assets [Line Items] | ' | ' |
Gross Value | 16,700,000 | ' |
Currency Translation Adjustment | -1,161,777 | ' |
Accumulated Amortization | -3,731,121 | ' |
Net Book Value | 11,807,102 | 12,370,042 |
Useful Life | ' | '15 years |
In Process Research and Development [Member] | ' | ' |
Note 8 - Intangible Assets and Goodwill (Details) - Intangible assets [Line Items] | ' | ' |
Gross Value | 5,502,686 | ' |
Currency Translation Adjustment | -310,550 | ' |
Net Book Value | 5,192,136 | 4,980,574 |
Distribution Rights [Member] | ' | ' |
Note 8 - Intangible Assets and Goodwill (Details) - Intangible assets [Line Items] | ' | ' |
Gross Value | 4,700,000 | ' |
Currency Translation Adjustment | -440,316 | ' |
Accumulated Amortization | -3,189,671 | ' |
Net Book Value | 1,070,013 | 1,733,453 |
Useful Life | ' | '5 years |
Patents [Member] | ' | ' |
Note 8 - Intangible Assets and Goodwill (Details) - Intangible assets [Line Items] | ' | ' |
Gross Value | 1,000,000 | ' |
Currency Translation Adjustment | -67,334 | ' |
Accumulated Amortization | -212,079 | ' |
Net Book Value | 720,587 | 749,166 |
Useful Life | ' | '16 years |
Elevess Trade Name [Member] | ' | ' |
Note 8 - Intangible Assets and Goodwill (Details) - Intangible assets [Line Items] | ' | ' |
Gross Value | 1,000,000 | ' |
Accumulated Amortization | -592,612 | ' |
Net Book Value | $407,388 | $501,401 |
Useful Life | ' | '9 years |
Note_8_Intangible_Assets_and_G4
Note 8 - Intangible Assets and Goodwill (Details) - Changes in Carrying Value of Goodwill (USD $) | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | |
Changes in Carrying Value of Goodwill [Abstract] | ' | ' | ' |
Balance, beginning | $8,923,197 | $9,065,891 | $9,065,891 |
Effect of foreign currency adjustments | 351,933 | 209,239 | ' |
Balance, ending | $9,275,130 | $9,275,130 | $9,065,891 |
Note_9_Accrued_Expenses_Detail
Note 9 - Accrued Expenses (Details) - Accrued Expenses (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
Accrued Expenses [Abstract] | ' | ' |
Payroll and benefits | $2,558,293 | $2,477,833 |
Professional fees | 389,672 | 642,853 |
Clinical trial costs | 190,362 | 102,414 |
Restructuring costs | 208,207 | 933,732 |
Other | 1,881,865 | 1,680,212 |
Total | $5,228,399 | $5,837,044 |
Note_11_Longterm_Debt_Details
Note 11 - Long-term Debt (Details) (USD $) | 9 Months Ended | |
Sep. 30, 2013 | Dec. 31, 2012 | |
Disclosure Text Block [Abstract] | ' | ' |
Long-term Debt | $8,400,000 | $9,600,000 |
Debt Instrument, Interest Rate at Period End | 1.43% | ' |
Debt Instrument, Basis Spread on Variable Rate | 1.25% | ' |
Long-term Debt, Current Maturities | $1,600,000 | $1,600,000 |
Note_12_Income_Taxes_Details
Note 12 - Income Taxes (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Income Tax Disclosure [Abstract] | ' | ' | ' | ' |
Income Tax Expense (Benefit) (in Dollars) | $2,776,199 | $1,036,349 | $8,147,282 | $4,483,960 |
Effective Income Tax Rate Reconciliation, Percent | 35.90% | 38.60% | 36.90% | 38.10% |
Note_13_Related_Party_Details
Note 13 - Related Party (Details) (Fidia Farmaceutici S.p.A [Member]) | 9 Months Ended | 0 Months Ended | ||
Sep. 30, 2013 | Aug. 06, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | |
Maximum [Member] | ||||
Note 13 - Related Party (Details) [Line Items] | ' | ' | ' | ' |
Business Acquisition, Equity Interest Issued or Issuable, Number of Shares | 1,981,192 | ' | ' | ' |
EscrowSharesCommonStock | ' | ' | 500,000 | ' |
Related Party Transaction Shares Sold | ' | 1,270,000 | ' | ' |
Related Party, Shares Owned | ' | ' | 711,192 | ' |
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners | ' | ' | ' | 5.00% |
Note_14_Segment_and_Geographic2
Note 14 - Segment and Geographic Information (Details) | 9 Months Ended |
Sep. 30, 2013 | |
Segment Reporting [Abstract] | ' |
Number of Reportable Segments | 1 |
Note_14_Segment_and_Geographic3
Note 14 - Segment and Geographic Information (Details) - Product revenue by product group (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Product Revenue | $17,023,346 | $14,055,440 | $51,585,242 | $46,551,045 |
Orthobiologics [Member] | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Product Revenue | 12,830,566 | 9,242,783 | 40,620,339 | 30,262,991 |
Dermal [Member] | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Product Revenue | 267,766 | 376,251 | 1,066,409 | 1,033,302 |
Surgical [Member] | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Product Revenue | 1,136,248 | 1,426,273 | 3,955,134 | 3,874,405 |
Ophthalmic [Member] | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Product Revenue | 1,425,609 | 1,891,433 | 2,818,407 | 8,515,160 |
Veterinary [Member] | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Product Revenue | $1,363,157 | $1,118,700 | $3,124,953 | $2,865,187 |
Note_14_Segment_and_Geographic4
Note 14 - Segment and Geographic Information (Details) - Product revenue by geographic location in total and as a percentage of total product revenue, for th (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Note 14 - Segment and Geographic Information (Details) - Product revenue by geographic location in total and as a percentage of total product revenue, for th [Line Items] | ' | ' | ' | ' |
Total revenue (in Dollars) | $17,754,438 | $14,766,611 | $53,829,826 | $48,752,040 |
Percentage of total revenue | 100.00% | 100.00% | 100.00% | 100.00% |
United States [Member] | ' | ' | ' | ' |
Note 14 - Segment and Geographic Information (Details) - Product revenue by geographic location in total and as a percentage of total product revenue, for th [Line Items] | ' | ' | ' | ' |
Total revenue (in Dollars) | 14,485,821 | 12,628,612 | 42,251,336 | 40,463,657 |
Percentage of total revenue | 82.00% | 86.00% | 78.00% | 83.00% |
Europe [Member] | ' | ' | ' | ' |
Note 14 - Segment and Geographic Information (Details) - Product revenue by geographic location in total and as a percentage of total product revenue, for th [Line Items] | ' | ' | ' | ' |
Total revenue (in Dollars) | 1,656,656 | 1,064,165 | 5,226,619 | 3,993,708 |
Percentage of total revenue | 9.00% | 7.00% | 10.00% | 8.00% |
Other location [Member] | ' | ' | ' | ' |
Note 14 - Segment and Geographic Information (Details) - Product revenue by geographic location in total and as a percentage of total product revenue, for th [Line Items] | ' | ' | ' | ' |
Total revenue (in Dollars) | $1,611,961 | $1,073,834 | $6,351,871 | $4,294,675 |
Percentage of total revenue | 9.00% | 7.00% | 12.00% | 9.00% |
Note_15_Restructuring_Charges_1
Note 15 - Restructuring Charges (Details) (USD $) | 3 Months Ended | 6 Months Ended | 9 Months Ended |
Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | |
Note 15 - Restructuring Charges (Details) [Line Items] | ' | ' | ' |
Restructuring Costs and Asset Impairment Charges | ' | $2,500,000 | ' |
Restructuring Charges | -196,084 | ' | -442,869 |
Non-Cash Termination And Impairment Of IPR&D [Member] | ' | ' | ' |
Note 15 - Restructuring Charges (Details) [Line Items] | ' | ' | ' |
Restructuring Costs and Asset Impairment Charges | ' | 1,200,000 | ' |
Noncash disposal of property and equipment [Member] | ' | ' | ' |
Note 15 - Restructuring Charges (Details) [Line Items] | ' | ' | ' |
Restructuring Costs and Asset Impairment Charges | ' | 300,000 | ' |
Disposal of inventory [Member] | ' | ' | ' |
Note 15 - Restructuring Charges (Details) [Line Items] | ' | ' | ' |
Restructuring Costs and Asset Impairment Charges | ' | 100,000 | ' |
Employee termination costs [Member] | ' | ' | ' |
Note 15 - Restructuring Charges (Details) [Line Items] | ' | ' | ' |
Restructuring Costs and Asset Impairment Charges | ' | $900,000 | ' |
Note_15_Restructuring_Charges_2
Note 15 - Restructuring Charges (Details) - The following table summarizes restructuring accrual activity for the nine months ended September 30 (USD $) | 9 Months Ended |
In Millions, unless otherwise specified | Sep. 30, 2013 |
Note 15 - Restructuring Charges (Details) - The following table summarizes restructuring accrual activity for the nine months ended September 30 [Line Items] | ' |
Balance | $933,732 |
Cash Proceeds, Disbursements | -738,358 |
Foreign Exchange Impact | 12,833 |
Balance | 208,207 |
Employee termination costs [Member] | ' |
Note 15 - Restructuring Charges (Details) - The following table summarizes restructuring accrual activity for the nine months ended September 30 [Line Items] | ' |
Balance | 801,453 |
Cash Proceeds, Disbursements | -613,870 |
Foreign Exchange Impact | 12,814 |
Balance | 200,397 |
Activity Termination and Facility Closure Costs [Member] | ' |
Note 15 - Restructuring Charges (Details) - The following table summarizes restructuring accrual activity for the nine months ended September 30 [Line Items] | ' |
Balance | 132,279 |
Cash Proceeds, Disbursements | -124,488 |
Foreign Exchange Impact | 19 |
Balance | $7,810 |