Anika Therapeutics (ANIK) 10-Q 26 Oct 18 2018 Q3 Quarterly report Financial data

Document And Entity Information

Document And Entity Information - shares	9 Months Ended
	Sep. 30, 2018	Oct. 18, 2018
Document Information [Line Items]
Entity Registrant Name	Anika Therapeutics, Inc.
Entity Central Index Key	898,437
Trading Symbol	anik
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Entity Current Reporting Status	Yes
Entity Emerging Growth Company	false
Entity Small Business	false
Entity Common Stock, Shares Outstanding (in shares)		14,211,457
Document Type	10-Q
Document Period End Date	Sep. 30, 2018
Document Fiscal Year Focus	2,018
Document Fiscal Period Focus	Q3
Amendment Flag	false

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets (Current Period Unaudited) - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Current assets:
Cash and cash equivalents	$ 81,825	$ 133,256
Investments	67,186	24,000
Accounts receivable, net of reserves of $1,771 and $1,914 at September 30, 2018 and December 31, 2017, respectively	20,771	23,825
Inventories, net	23,828	22,035
Prepaid expenses and other current assets	1,981	3,211
Total current assets	195,591	206,327
Property and equipment, net	55,041	56,183
Other long-term assets	1,109	1,254
Intangible assets, net	9,564	10,635
Goodwill	7,959	8,218
Total assets	269,264	282,617
Current liabilities:
Accounts payable	2,462	6,747
Accrued expenses and other current liabilities	6,843	6,326
Total current liabilities	9,305	13,073
Other long-term liabilities	574	660
Deferred tax liability	4,120	5,393
Commitments and contingencies (Note 12)
Stockholders’ equity:
Preferred stock, $.01 par value; 1,250 shares authorized, no shares issued and outstanding at September 30, 2018 and December 31, 2017, respectively	0	0
Common stock, $.01 par value; 90,000 and 60,000 shares authorized, 14,211 and 14,688 shares issued and outstanding at September 30, 2018 and December 31, 2017, respectively	142	147
Additional paid-in-capital	49,836	68,617
Accumulated other comprehensive loss	(5,228)	(4,784)
Retained earnings	210,515	199,511
Total stockholders’ equity	255,265	263,491
Total liabilities and stockholders’ equity	$ 269,264	$ 282,617

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) - USD ($) shares in Thousands, $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Accounts receivable, reserves	$ 1,771	$ 1,914
Preferred stock, par value (in dollars per share)	$ 0.01	$ 0.01
Preferred stock, shares authorized (in shares)	1,250	1,250
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)	90,000	60,000
Common stock, shares issued (in shares)	14,211	14,688
Common stock, shares outstanding (in shares)	14,211	14,688

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations and Comprehensive Income (Unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Revenue	$ 26,787	$ 27,184	$ 78,599	$ 84,032
Operating expenses:
Cost of product revenue	8,282	6,250	24,279	18,648
Research & development	4,232	5,842	14,126	14,521
Selling, general & administrative	5,700	4,823	28,207	14,862
Total operating expenses	18,214	16,915	66,612	48,031
Income from operations	8,573	10,269	11,987	36,001
Interest and other income, net	522	261	907	335
Income before income taxes	9,095	10,530	12,894	36,336
Provision for income taxes	1,496	3,643	1,890	12,587
Net income	$ 7,599	$ 6,887	$ 11,004	$ 23,749
Basic net income per share:
Net income (in dollars per share)	$ 0.53	$ 0.47	$ 0.76	$ 1.63
Basic weighted average common shares outstanding (in shares)	14,237	14,579	14,524	14,572
Diluted net income per share:
Net income (in dollars per share)	$ 0.53	$ 0.46	$ 0.74	$ 1.58
Diluted weighted average common shares outstanding (in shares)	14,377	15,115	14,820	15,065
Net income	$ 7,599	$ 6,887	$ 11,004	$ 23,749
Foreign currency translation adjustment	(113)	690	(444)	2,270
Comprehensive income	7,486	7,577	10,560	26,019
Product [Member]
Revenue	26,781	27,178	78,581	78,899
Service [Member]
Revenue	$ 6	$ 6	$ 18	$ 5,133

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017
Cash flows from operating activities:
Net income	$ 11,004	$ 23,749
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	4,433	3,224
Loss on disposal of fixed assets	172
Stock-based compensation expense	10,064	3,940
Deferred income taxes	(1,205)	943
Provision for doubtful accounts	(87)	(1)
Provision for inventory	4,073	609
Changes in operating assets and liabilities:
Accounts receivable	3,136	4,388
Inventories	(5,891)	(4,668)
Prepaid expenses, other current and long-term assets	1,304	(922)
Accounts payable	(2,449)	2,030
Accrued expenses, other current and long-term liabilities	509	(106)
Income taxes	(158)	645
Net cash provided by operating activities	24,905	33,831
Cash flows from investing activities:
Proceeds from maturity of investments	34,500	31,250
Purchase of investments	(77,683)	(36,500)
Purchase of property and equipment	(4,493)	(6,506)
Net cash (used in) investing activities	(47,676)	(11,756)
Cash flows from financing activities:
Repurchases of common stock	(30,000)
Cash paid for tax withheld on vested restricted stock awards	(1,735)
Proceeds from exercise of equity awards	2,886	310
Net cash (used in) provided by financing activities	(28,849)	310
Exchange rate impact on cash	189	314
(Decrease) Increase in cash and cash equivalents	(51,431)	22,699
Cash and cash equivalents at beginning of period	133,256	104,261
Cash and cash equivalents at end of period	81,825	126,960
Supplemental disclosure of cash flow information:
Purchases of property and equipment included in accounts payable and accrued expenses	$ 197	$ 1,208

Note 1 - Nature of Business

Note 1 - Nature of Business	9 Months Ended
	Sep. 30, 2018
Notes to Financial Statements
Nature of Operations [Text Block]	1. Nature of Business Anika Therapeutics, Inc. (the “Company”) is a global, integrated orthopedic and regenerative medicines company committed to improving the lives of patients with degenerative orthopedic diseases and traumatic conditions with clinically meaningful therapies along the continuum of care, from palliative pain management to regenerative tissue repair. The Company has over two The Company is subject to risks common to companies in the biotechnology and medical device industries including, but not

Note 2 - Basis of Presentation

Note 2 - Basis of Presentation	9 Months Ended
	Sep. 30, 2018
Notes to Financial Statements
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 (“US GAAP”). The financial statements include the accounts of Anika Therapeutics, Inc. and its subsidiaries. Inter-company transactions and balances have been eliminated. Certain information and footnote disclosures normally included in annual financial statements prepared in accordance with US GAAP have been condensed or omitted pursuant to SEC rules and regulations relating to interim financial statements. The December 31, 2017 September 30, 2018, three nine September 30, 2018 2017, nine September 30, 2018 2017. 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 December 31, 2017. three nine September 30, 2018 not December 31, 2018. At the Company’s annual stockholders’ meeting on May 31, 2018, 60 90 90 June 6, 2018. not Recent Accounting Pronouncements In February 2016, No. 2016 02, Leases 842 2016 02 December 15, 2018. may 2016 02 In August 2018, No. 2018 15, Intangibles – Goodwill and Other – Internal-Use Software 350 40 No. 2015 05, Customers Accounting for Fees in a Cloud Computing Agreement, 2018 15 350 40 2018 15 December 15, 2019. 2018 15

Note 3 - Revenue

Note 3 - Revenue	9 Months Ended
	Sep. 30, 2018
Notes to Financial Statements
Revenue from Contract with Customer [Text Block]	3. Revenue The Company adopted the guidance in the FASB’s Accounting Standards Codification (“ASC”) Revenue from Contracts with Customers 606 January 1, 2018. 606 not not no 605, Revenue Recognition Pursuant to ASC 606, five Product Revenues The Company sells its products principally to a number of distributors (i.e., its customers) under legally-enforceable, executed contracts. The Company’s distributors subsequently resell the products to sub-distributors and health care providers, among others. The Company recognizes revenue from product sales when the distributor obtains control of the Company’s product, which typically occurs upon shipment to the distributor, in return for agreed-upon, fixed-price consideration. Performance obligations are generally settled quickly after purchase order acceptance; therefore, the value of unsatisfied performance obligations at the end of any reporting period is generally immaterial. The Company’s payment terms are consistent with prevailing practice in the respective markets in which the Company does business. Distributors make payments based on fixed-price contract terms, which are not one not not To identify variable consideration and determine the transaction price, the Company has reviewed its standard contractual terms and conditions and its customary business practices. Volume based discounts with tiered pricing are generally prospective in nature. These prospective discounts together with any free-of-charge sample units offered are evaluated as potential material rights. If the discounts or free-of-charge sample units are considered significant in the context of the contract, revenue is deferred. The Company receives payments from its customers based on billing schedules established in each contract. Up-front payments and fees are recorded as deferred revenue upon receipt or when due, and may September 30, 2018, $52 Generally, distributor contracts contain Free on Board (FOB) or Ex-Works (EXW) shipping point terms where the customer pays the shipping company directly for all shipping and handling costs. In those contracts in which the Company pays for the shipping and handling, the associated costs are generally recorded along with the product sale at the time of shipment in cost of product revenue when control over the products has transferred to the customer. The Company does not not not not one 340 40 25 4. Included as a component of product revenue is sales-based royalty revenue, which represents the utilization of the Company’s intellectual property licensed by its commercial partners. The Company does not not License, Milestone and Contract Revenues The Company has agreements with DePuy Synthes Mitek Sports Medicine, a division of DePuy Orthopaedics, Inc. (“Mitek”) that include the grant of certain licenses, performance of development services, and supply of product. Revenues from the agreements with Mitek represent 73% three nine September 30, 2018. may 606 not The agreements with Mitek include variable consideration such as contingent development and regulatory milestones, sales-based milestones, and royalties. The Company completed the performance obligations related to granted licenses and development services under these agreements in prior years. Agreements that include a promise for future supply of product at the customer’s discretion are generally considered as options. The Company assesses if these options provide a material right to the licensee and if so, they are accounted for as separate performance obligations. Variable consideration is included in the transaction price only to the extent a significant reversal in the amount of cumulative revenue recognized is not There was no The following tables provide the disaggregated revenue by major product group and primary geographical market. Product revenue by product group was as follows: Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 Orthobiologics $ 24,097 $ 23,990 $ 69,778 $ 68,686 Surgical 1,191 1,765 3,700 4,395 Dermal 80 358 163 1,235 Other 1,413 1,065 4,940 4,583 Product Revenue $ 26,781 $ 27,178 $ 78,581 $ 78,899 Total revenue by geographic location was as follows: Three Months Ended September 30, 2018 2017 Total Revenue Percentage of Revenue Total Revenue Percentage of Revenue Geographic Location: United States $ 21,695 81 % $ 22,227 82 % Europe 3,132 12 % 2,832 10 % Other 1,960 7 % 2,125 8 % Total Revenue $ 26,787 100 % $ 27,184 100 % Nine Months Ended September 30, 2018 2017 Total Revenue Percentage of Revenue Total Revenue Percentage of Revenue Geographic Location: United States $ 63,377 81 % $ 68,624 82 % Europe 9,021 11 % 9,743 11 % Other 6,201 8 % 5,665 7 % Total Revenue $ 78,599 100 % $ 84,032 100 % On May 2, 2018, not no three March 31, 2018 $1.1 $0.9 three September 30, 2018

Note 4 - Investments

Note 4 - Investments	9 Months Ended
	Sep. 30, 2018
Notes to Financial Statements
Cash and Cash Equivalents Disclosure [Text Block]	4. Investments All of the Company’s investments are carried at fair value with unrealized gains and losses recorded as a component of accumulated other comprehensive income, net of related income taxes. The Company held investments, including U.S. treasury bills and bank certificates of deposit, totaling $67.2 $24.0 September 30, 2018 December 31, 2017, $0 September 30, 2018 December 31, 2017,

Note 5 - Fair Value Measurement

Note 5 - Fair Value Measurements	9 Months Ended
	Sep. 30, 2018
Notes to Financial Statements
Fair Value Disclosures [Text Block]	5. Fair Value Measurements The Company’s investments are all classified within Levels 1 2 1 2 third not The fair value hierarchy of the Company's cash equivalents and investments at fair value was as follows: Fair Value Measurements at Reporting Date Using September 30, 2018 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Cash equivalents: Money market funds $ 7,083 $ 7,083 $ - $ - Investments: Bank certificates of deposit $ 3,500 $ - $ 3,500 $ - U.S. treasury bills 63,686 63,686 - - Total investments $ 67,186 $ 63,686 $ 3,500 $ - Fair Value Measurements at Reporting Date Using December 31, 2017 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Cash equivalents: Money market funds $ 5,893 $ 5,893 $ - $ - Bank certificates of deposit 500 - 500 - Total cash equivalents $ 6,393 $ 5,893 $ 500 $ - Investments: Bank certificates of deposit $ 24,000 $ - $ 24,000 $ -

Note 6 - Equity Incentive Plan

Note 6 - Equity Incentive Plan	9 Months Ended
	Sep. 30, 2018
Notes to Financial Statements
Disclosure of Compensation Related Costs, Share-based Payments [Text Block]	6. Equity Incentive Plan The Company estimates the fair value of stock options and stock appreciation rights (“SARs”) using the Black-Scholes valuation model. Fair value of restricted stock awards (“RSAs”) and restricted stock units (“RSUs”) are measured by the grant-date price of the Company’s shares. The fair value of each stock option award during the nine September 30, 2018 2017 Nine Months Ended September 30, 2018 2017 Risk free interest rate 2.15% - 2.82% 1.60% - 1.78% Expected volatility 37.12% - 45.61% 41.36% - 44.30% Expected life (years) 4.0 - 4.5 4.0 Expected dividend yield 0.00% 0.00% The Company recorded $1.2 $1.5 three September 30, 2018 2017, $10.1 $3.9 nine September 30, 2018 2017, March 9, 2018, one $6.2 three March 31, 2018. The Company presents the expenses related to stock-based compensation awards in the same expense line items as cash compensation paid to each of its employees as follows: Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 Cost of product revenue $ 39 $ 107 $ (205 ) $ 306 Research and development 239 177 690 340 Selling, general and administrative 899 1,190 9,579 3,294 Total stock-based compensation expense $ 1,177 $ 1,474 $ 10,064 $ 3,940 The decrease in stock-based compensation expense within the cost of product revenue line item during the three nine September 30, 2018 The following table sets forth share information for stock-based compensation awards granted and exercised during the three nine September 30, 2018 2017: Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 Grants: Stock options 18,500 60,609 228,300 470,744 RSAs - 14,506 64,578 14,506 RSUs 3,624 - 11,754 9,970 Exercises: Stock options - 3,329 284,548 12,766 SARs - - - 5,000 During the three nine September 30, 2018 2017, four three March 9, 2018, 32,541 $1.7

Note 7 - Earnings Per Share ("E

Note 7 - Earnings Per Share ("EPS")	9 Months Ended
	Sep. 30, 2018
Notes to Financial Statements
Earnings Per Share [Text Block]	7. Earnings Per Share (“EPS”) Basic EPS is calculated by dividing net income by the weighted average number of shares outstanding during the period. Unvested restricted shares, although legally issued and outstanding, are not The following table provides share information used in the calculation of the Company's basic and diluted earnings per share (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 Shares used in the calculation of basic earnings per share 14,237 14,579 14,524 14,572 Effect of dilutive securities: Stock options, SARs, RSUs and RSAs 140 536 296 493 Diluted shares used in the calculation of earnings per share 14,377 15,115 14,820 15,065 Stock options of 0.9 0.5 three September 30, 2018 2017, not 0.6 nine September 30, 2018 2017 not On May 24, 2018, $30.0 $30.0 0.4 May 24, 2018 $41.41 60% On July 16, 2018, $12.0 July 16, 2018. 0.4 July 19, 2016. not 0.8 $37.18 not

Note 8 - Inventories

Note 8 - Inventories	9 Months Ended
	Sep. 30, 2018
Notes to Financial Statements
Inventory Disclosure [Text Block]	8. Inventories Inventories consist of the following: September 30, December 31, Raw materials $ 13,241 $ 11,296 Work-in-process 5,948 6,062 Finished goods 4,639 4,677 Total $ 23,828 $ 22,035 As a result of the voluntary recall more fully described in Note 3, $0.8 $1.4 $1.2 nine September 30, 2018.

Note 9 - Intangible Assets

Note 9 - Intangible Assets	9 Months Ended
	Sep. 30, 2018
Notes to Financial Statements
Goodwill and Intangible Assets Disclosure [Text Block]	9. Intangible Assets Intangible assets as of September 30, 2018 December 31, 2017 September 30, 2018 December 31, 2017 Gross Accumulated Accumulated Net Book Accumulated Accumulated Net Book Useful Developed technology $ 17,100 $ (2,744 ) $ (8,443 ) $ 5,913 $ (2,550 ) $ (7,723 ) $ 6,827 15 In-process research & development 4,406 (1,122 ) - 3,284 (1,015 ) - 3,391 Indefinite Distributor relationships 4,700 (415 ) (4,285 ) - (415 ) (4,285 ) - 5 Patents 1,000 (164 ) (469 ) 367 (152 ) (431 ) 417 16 Elevess trade name 1,000 - (1,000 ) - - (1,000 ) - 9 Total $ 28,206 $ (4,445 ) $ (14,197 ) $ 9,564 $ (4,132 ) $ (13,439 ) $ 10,635 The aggregate amortization expense related to intangible assets was $0.2 three September 30, 2018 2017. $0.8 $0.7 nine September 30, 2018 2017,

Note 10 - Goodwill

Note 10 - Goodwill	9 Months Ended
	Sep. 30, 2018
Notes to Financial Statements
Goodwill Disclosure [Text Block]	10. Goodwill The Company completed its annual impairment review as of November 30, 2017 no September 30, 2018, no may not September 30, 2018 Balance at January 1, 2018 $ 8,218 Effect of foreign currency adjustments (259 ) Balance at September 30, 2018 $ 7,959

Note 11 - Accrued Expenses

Note 11 - Accrued Expenses	9 Months Ended
	Sep. 30, 2018
Notes to Financial Statements
Accounts Payable and Accrued Liabilities Disclosure [Text Block]	11. Accrued Expenses Accrued expenses consist of the following: September 30, December 31, Compensation and related expenses $ 3,875 $ 2,893 Clinical trial costs 586 2,318 Accrued liabilities related to product recall 344 - Research grants 406 419 Professional fees 1,233 448 Deferred revenue 52 - Other 347 248 Total $ 6,843 $ 6,326 Included in Compensation and related expenses as of September 30, 2018 March 9, 2018. March 8, 2018 $0.3 one may February 28, 2019. $1.7 18 March 9, 2018, 6, Accrued liabilities related to product recall includes amounts due to customers for estimated product returns as a result of the voluntary recall more fully described in Note 3 $0.3

Note 12 - Commitments and Conti

Note 12 - Commitments and Contingencies	9 Months Ended
	Sep. 30, 2018
Notes to Financial Statements
Commitments and Contingencies Disclosure [Text Block]	12. 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 specific product. The Company may not third no September 30, 2018 December 31, 2017, no The Company is also involved from time-to-time in various legal proceedings arising in the normal course of business. Although the outcomes of these legal proceedings are inherently difficult to predict, the Company does not

Note 13 - Income Taxes

Note 13 - Income Taxes	9 Months Ended
	Sep. 30, 2018
Notes to Financial Statements
Income Tax Disclosure [Text Block]	13. Income Taxes The provisions for income taxes were $1.5 $1.9 three nine September 30, 2018, 16.4% 14.7%, $3.6 $12.6 three nine September 30, 2017, 34.6% three nine September 30, 2018, 2017, 2017 35% 21% 2018. nine September 30, 2018 $1.6 12.1%. $0.1 three September 30, 2018. The Company files income tax returns in the United States 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. In connection with the preparation of the financial statements, the Company assesses whether it was more likely than not not not” not September 30, 2018 December 31, 2017. In accordance with Staff Accounting Bulletin No. 118, no 2017 not 2017

Note 14 - Business Segment

Note 14 - Business Segment	9 Months Ended
	Sep. 30, 2018
Notes to Financial Statements
Segment Reporting Disclosure [Text Block]	14. Business Segment The Company operates in a single segment engaged in the discovery, development, licensing, manufacturing, and sale of innovative medical therapies that improve the lives of patients with degenerative orthopedic diseases and traumatic conditions. The determination of a single segment is consistent with the financial information regularly reviewed by the Chief Executive Officer, who is the chief decision maker for the purposes of evaluating performance, allocating resources, setting incentive compensation targets and planning and forecasting future periods. For further information on product and geographic revenues, see Note 3.

Note 3 - Revenue (Tables)

Note 3 - Revenue (Tables)	9 Months Ended
	Sep. 30, 2018
Notes Tables
Schedule of Segment Reporting Information, by Segment [Table Text Block]	Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 Orthobiologics $ 24,097 $ 23,990 $ 69,778 $ 68,686 Surgical 1,191 1,765 3,700 4,395 Dermal 80 358 163 1,235 Other 1,413 1,065 4,940 4,583 Product Revenue $ 26,781 $ 27,178 $ 78,581 $ 78,899
Schedule of Revenue and Operating Income by Geographical Areas [Table Text Block]	Three Months Ended September 30, 2018 2017 Total Revenue Percentage of Revenue Total Revenue Percentage of Revenue Geographic Location: United States $ 21,695 81 % $ 22,227 82 % Europe 3,132 12 % 2,832 10 % Other 1,960 7 % 2,125 8 % Total Revenue $ 26,787 100 % $ 27,184 100 % Nine Months Ended September 30, 2018 2017 Total Revenue Percentage of Revenue Total Revenue Percentage of Revenue Geographic Location: United States $ 63,377 81 % $ 68,624 82 % Europe 9,021 11 % 9,743 11 % Other 6,201 8 % 5,665 7 % Total Revenue $ 78,599 100 % $ 84,032 100 %

Note 5 - Fair Value Measureme_2

Note 5 - Fair Value Measurements (Tables)	9 Months Ended
	Sep. 30, 2018
Notes Tables
Fair Value, Assets Measured on Recurring Basis [Table Text Block]	Fair Value Measurements at Reporting Date Using September 30, 2018 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Cash equivalents: Money market funds $ 7,083 $ 7,083 $ - $ - Investments: Bank certificates of deposit $ 3,500 $ - $ 3,500 $ - U.S. treasury bills 63,686 63,686 - - Total investments $ 67,186 $ 63,686 $ 3,500 $ - Fair Value Measurements at Reporting Date Using December 31, 2017 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Cash equivalents: Money market funds $ 5,893 $ 5,893 $ - $ - Bank certificates of deposit 500 - 500 - Total cash equivalents $ 6,393 $ 5,893 $ 500 $ - Investments: Bank certificates of deposit $ 24,000 $ - $ 24,000 $ -

Note 6 - Equity Incentive Plan

Note 6 - Equity Incentive Plan (Tables)	9 Months Ended
	Sep. 30, 2018
Notes Tables
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block]	Nine Months Ended September 30, 2018 2017 Risk free interest rate 2.15% - 2.82% 1.60% - 1.78% Expected volatility 37.12% - 45.61% 41.36% - 44.30% Expected life (years) 4.0 - 4.5 4.0 Expected dividend yield 0.00% 0.00%
Schedule of Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Table Text Block]	Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 Cost of product revenue $ 39 $ 107 $ (205 ) $ 306 Research and development 239 177 690 340 Selling, general and administrative 899 1,190 9,579 3,294 Total stock-based compensation expense $ 1,177 $ 1,474 $ 10,064 $ 3,940
Disclosure of Share-based Compensation Arrangements by Share-based Payment Award [Table Text Block]	Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 Grants: Stock options 18,500 60,609 228,300 470,744 RSAs - 14,506 64,578 14,506 RSUs 3,624 - 11,754 9,970 Exercises: Stock options - 3,329 284,548 12,766 SARs - - - 5,000

Note 7 - Earnings Per Share (_2

Note 7 - Earnings Per Share ("EPS") (Tables)	9 Months Ended
	Sep. 30, 2018
Notes Tables
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block]	Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 Shares used in the calculation of basic earnings per share 14,237 14,579 14,524 14,572 Effect of dilutive securities: Stock options, SARs, RSUs and RSAs 140 536 296 493 Diluted shares used in the calculation of earnings per share 14,377 15,115 14,820 15,065

Note 8 - Inventories (Tables)

Note 8 - Inventories (Tables)	9 Months Ended
	Sep. 30, 2018
Notes Tables
Schedule of Inventory, Current [Table Text Block]	September 30, December 31, Raw materials $ 13,241 $ 11,296 Work-in-process 5,948 6,062 Finished goods 4,639 4,677 Total $ 23,828 $ 22,035

Note 9 - Intangible Assets (Tab

Note 9 - Intangible Assets (Tables)	9 Months Ended
	Sep. 30, 2018
Notes Tables
Schedule of Finite-Lived and Indefinite-Lived Intangible Assets by Major Class [Table Text Block]	September 30, 2018 December 31, 2017 Gross Accumulated Accumulated Net Book Accumulated Accumulated Net Book Useful Developed technology $ 17,100 $ (2,744 ) $ (8,443 ) $ 5,913 $ (2,550 ) $ (7,723 ) $ 6,827 15 In-process research & development 4,406 (1,122 ) - 3,284 (1,015 ) - 3,391 Indefinite Distributor relationships 4,700 (415 ) (4,285 ) - (415 ) (4,285 ) - 5 Patents 1,000 (164 ) (469 ) 367 (152 ) (431 ) 417 16 Elevess trade name 1,000 - (1,000 ) - - (1,000 ) - 9 Total $ 28,206 $ (4,445 ) $ (14,197 ) $ 9,564 $ (4,132 ) $ (13,439 ) $ 10,635

Note 10 - Goodwill (Tables)

Note 10 - Goodwill (Tables)	9 Months Ended
	Sep. 30, 2018
Notes Tables
Schedule of Goodwill [Table Text Block]	September 30, 2018 Balance at January 1, 2018 $ 8,218 Effect of foreign currency adjustments (259 ) Balance at September 30, 2018 $ 7,959

Note 11 - Accrued Expenses (Tab

Note 11 - Accrued Expenses (Tables)	9 Months Ended
	Sep. 30, 2018
Notes Tables
Schedule of Accrued Liabilities [Table Text Block]	September 30, December 31, Compensation and related expenses $ 3,875 $ 2,893 Clinical trial costs 586 2,318 Accrued liabilities related to product recall 344 - Research grants 406 419 Professional fees 1,233 448 Deferred revenue 52 - Other 347 248 Total $ 6,843 $ 6,326

Note 2 - Basis of Presentation

Note 2 - Basis of Presentation (Details Textual) - shares shares in Thousands	Sep. 30, 2018	Dec. 31, 2017
Common Stock, Shares Authorized	90,000	60,000

Note 3 - Revenue (Details Textu

Note 3 - Revenue (Details Textual) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended	12 Months Ended
	Sep. 30, 2018	Mar. 31, 2018	Sep. 30, 2018	Dec. 31, 2017
Contract with Customer, Liability, Total	$ 52		$ 52
Inventory Recall Expense		$ 1,100		$ 900
DePuy Mitek Inc [Member]
Revenues From Agreements as Percent of Total Revenue	73.00%		73.00%

Note 3 - Revenue - Product Reve

Note 3 - Revenue - Product Revenue by Product Group (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Revenue	$ 26,787	$ 27,184	$ 78,599	$ 84,032
Orthobiologics [Member]
Revenue	24,097	23,990	69,778	68,686
Surgical [Member]
Revenue	1,191	1,765	3,700	4,395
Dermal [Member]
Revenue	80	358	163	1,235
Manufactured Product, Other [Member]
Revenue	1,413	1,065	4,940	4,583
Product [Member]
Revenue	$ 26,781	$ 27,178	$ 78,581	$ 78,899

Note 3 - Revenue - Total Revenu

Note 3 - Revenue - Total Revenue by Geographic Location (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Revenue	$ 26,787	$ 27,184	$ 78,599	$ 84,032
Percentage of Revenue	100.00%	100.00%	100.00%	100.00%
UNITED STATES
Revenue	$ 21,695	$ 22,227	$ 63,377	$ 68,624
Percentage of Revenue	81.00%	82.00%	81.00%	82.00%
Europe [Member]
Revenue	$ 3,132	$ 2,832	$ 9,021	$ 9,743
Percentage of Revenue	12.00%	10.00%	11.00%	11.00%
Other Location [Member]
Revenue	$ 1,960	$ 2,125	$ 6,201	$ 5,665
Percentage of Revenue	7.00%	8.00%	8.00%	7.00%

Note 4 - Investments (Details T

Note 4 - Investments (Details Textual) - USD ($)	Sep. 30, 2018	Dec. 31, 2017
Available-for-sale Securities, Accumulated Gross Unrealized Gain (Loss), before Tax, Total	$ 0	$ 0
Certificates of Deposit [Member]
Available-for-sale Securities, Total	$ 67,200,000	$ 24,000,000

Note 5 - Fair Value Measureme_3

Note 5 - Fair Value Measurements - Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Cash equivalents		$ 6,393
Investments	$ 67,186	24,000
Fair Value, Inputs, Level 1 [Member]
Cash equivalents		5,893
Investments	63,686
Fair Value, Inputs, Level 2 [Member]
Cash equivalents		500
Investments	3,500
Fair Value, Inputs, Level 3 [Member]
Cash equivalents
Investments
Money Market Funds [Member]
Cash equivalents	7,083	5,893
Money Market Funds [Member] | Fair Value, Inputs, Level 1 [Member]
Cash equivalents	7,083	5,893
Money Market Funds [Member] | Fair Value, Inputs, Level 2 [Member]
Cash equivalents
Money Market Funds [Member] | Fair Value, Inputs, Level 3 [Member]
Cash equivalents
Certificates of Deposit [Member]
Cash equivalents		500
Investments	3,500	24,000
Certificates of Deposit [Member] | Fair Value, Inputs, Level 1 [Member]
Cash equivalents
Investments
Certificates of Deposit [Member] | Fair Value, Inputs, Level 2 [Member]
Cash equivalents		500
Investments	3,500	24,000
Certificates of Deposit [Member] | Fair Value, Inputs, Level 3 [Member]
Cash equivalents
Investments
US Treasury Securities [Member]
Investments	63,686
US Treasury Securities [Member] | Fair Value, Inputs, Level 1 [Member]
Investments	63,686
US Treasury Securities [Member] | Fair Value, Inputs, Level 2 [Member]
Investments
US Treasury Securities [Member] | Fair Value, Inputs, Level 3 [Member]
Investments

Note 6 - Equity Incentive Pla_2

Note 6 - Equity Incentive Plan (Details Textual) - USD ($) $ in Thousands	Mar. 09, 2018	Sep. 30, 2018	Mar. 31, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Allocated Share-based Compensation Expense, Total		$ 1,177		$ 1,474	$ 10,064	$ 3,940
Employee Stock Option [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period		4 years		3 years	4 years	3 years
Restricted Stock [Member]
Shares Paid for Tax Withholding for Share Based Compensation	32,541
Adjustments Related to Tax Withholding for Share-based Compensation	$ 1,700
Chief Executive Officer [Member]
Allocated Share-based Compensation Expense, Total			$ 6,200

Note 6 - Equity Incentive Pla_3

Note 6 - Equity Incentive Plan - Assumptions Used to Estimate Fair Value of Stock Options and Stock Appreciation Rights (Details)	9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017
Expected life (years) (Year)		4 years
Expected dividend yield	0.00%	0.00%
Minimum [Member]
Risk free interest rate	2.15%	1.60%
Expected volatility	37.12%	41.36%
Expected life (years) (Year)	4 years
Maximum [Member]
Risk free interest rate	2.82%	1.78%
Expected volatility	45.61%	44.30%
Expected life (years) (Year)	4 years 182 days

Note 6 - Equity Incentive Pla_4

Note 6 - Equity Incentive Plan - Total Stock-based Compensation Expense (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Stock-based compensation expense	$ 1,177	$ 1,474	$ 10,064	$ 3,940
Cost of Sales [Member]
Stock-based compensation expense	39	107	(205)	306
Research and Development Expense [Member]
Stock-based compensation expense	239	177	690	340
Selling, General and Administrative Expenses [Member]
Stock-based compensation expense	$ 899	$ 1,190	$ 9,579	$ 3,294

Note 6 - Equity Incentive Pla_5

Note 6 - Equity Incentive Plan - Granted and Exercised Stock-based Compensation Awards (Details) - shares	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Employee Stock Option [Member]
Stock options (in shares)	18,500	60,609	228,300	470,744
Stock options (in shares)		3,329	284,548	12,766
Restricted Stock [Member]
Restricted stock grants (in shares)		14,506	64,578	14,506
Restricted Stock Units (RSUs) [Member]
Restricted stock grants (in shares)	3,624		11,754	9,970
Stock Appreciation Rights (SARs) [Member]
SARs (in shares)				5,000

Note 7 - Earnings Per Share (_3

Note 7 - Earnings Per Share ("EPS") (Details Textual) - USD ($) $ / shares in Units, $ in Thousands, shares in Millions	Jul. 19, 2018	May 24, 2018	Jul. 19, 2018	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017	Jul. 16, 2018
Payments for Repurchase of Common Stock						$ 30,000
Accelerated Stock Repurchase [Member] | Morgan Stanley & Co., LLC [Member]
Payments for Repurchase of Common Stock		$ 30,000
Stock Repurchased and Retired During Period, Shares	0.4	0.4	0.8
Stock Repurchase Program, Remaining Authorized Repurchase Amount								$ 12,000
Accelerated Share Repurchases, Final Price Paid Per Share			$ 37.18
Accelerated Stock Repurchase [Member] | Morgan Stanley & Co., LLC [Member] | Common Stock [Member]
Stock Repurchase Program, Authorized Amount		$ 30,000
Accelerated Share Repurchases, Initial Price Paid Per Share		$ 41.41
Employee Stock Option [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount				0.9	0.5	0.6	0.6

Note 7 - Earnings Per Share (_4

Note 7 - Earnings Per Share ("EPS") - Basic and Diluted Earnings Per Share (Details) - shares shares in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Basic weighted average common shares outstanding (in shares)	14,237	14,579	14,524	14,572
Stock options, SARs, RSUs and RSAs (in shares)	140	536	296	493
Diluted shares used in the calculation of earnings per share (in shares)	14,377	15,115	14,820	15,065

Note 8 - Inventories (Details T

Note 8 - Inventories (Details Textual) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017
Inventory Write-down	$ 4,073	$ 609
Nonsaleable Inventory [Member]
Inventory Write-down	800
HA Raw Materials [Member]
Inventory Write-down	1,400
HYAFF-based Products [Member]
Inventory Write-down	$ 1,200

Note 8 - Inventories - Summary

Note 8 - Inventories - Summary of Inventories (Details) - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Raw materials	$ 13,241	$ 11,296
Work-in-process	5,948	6,062
Finished goods	4,639	4,677
Total	$ 23,828	$ 22,035

Note 9 - Intangible Assets (Det

Note 9 - Intangible Assets (Details Textual) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Amortization of Intangible Assets, Total	$ 0.2	$ 0.2	$ 0.8	$ 0.7

Note 9 - Intangible Assets - Su

Note 9 - Intangible Assets - Summary of Intangible Assets (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2018	Dec. 31, 2017
Gross Value	$ 28,206
Accumulated Currency Translation Adjustment	(4,445)	$ (4,132)
Accumulated Amortization	(14,197)	(13,439)
Intangible assets, net	9,564	10,635
In Process Research and Development [Member]
Gross Value	4,406
Accumulated Currency Translation Adjustment	(1,122)	(1,015)
Accumulated Amortization
Intangible assets, net	3,284	3,391
Developed Technology Rights [Member]
Gross Value	17,100
Accumulated Currency Translation Adjustment	(2,744)	(2,550)
Accumulated Amortization	(8,443)	(7,723)
Intangible assets, net	$ 5,913	6,827
Useful life (Year)	15 years
Distribution Rights [Member]
Gross Value	$ 4,700
Accumulated Currency Translation Adjustment	(415)	(415)
Accumulated Amortization	(4,285)	(4,285)
Intangible assets, net
Useful life (Year)	5 years
Patents [Member]
Gross Value	$ 1,000
Accumulated Currency Translation Adjustment	(164)	(152)
Accumulated Amortization	(469)	(431)
Intangible assets, net	$ 367	417
Useful life (Year)	16 years
Elevess Trade Name [Member]
Gross Value	$ 1,000
Accumulated Currency Translation Adjustment
Accumulated Amortization	(1,000)	(1,000)
Intangible assets, net
Useful life (Year)	9 years

Note 10 - Goodwill (Details Tex

Note 10 - Goodwill (Details Textual) $ in Thousands	Nov. 30, 2017USD ($)
Goodwill, Impaired, Accumulated Impairment Loss	$ 0

Note 10 - Goodwill - Changes in

Note 10 - Goodwill - Changes in the Carrying Value of Goodwill (Details) $ in Thousands	9 Months Ended
	Sep. 30, 2018USD ($)
Balance at January 1, 2018	$ 8,218
Effect of foreign currency adjustments	(259)
Balance at September 30, 2018	$ 7,959

Note 11 - Accrued Expenses (Det

Note 11 - Accrued Expenses (Details Textual) - USD ($) $ in Millions	Mar. 09, 2018	Mar. 08, 2018	Sep. 30, 2018
Recall Payable			$ 0.3
Former Chief Executive Officer [Member]
Severance Benefit, For A One Year Post Retirement Consulting Agreement		$ 0.3
Severance Benefit Following Retirement	$ 1.7
Severance Benefit Following Retirement, Term	1 year 180 days

Note 11 - Accrued Expenses - Su

Note 11 - Accrued Expenses - Summary of Accrued Expenses (Details) - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Compensation and related expenses	$ 3,875	$ 2,893
Clinical trial costs	586	2,318
Accrued liabilities related to product recall	344
Research grants	406	419
Professional fees	1,233	448
Deferred revenue	52
Other	347	248
Total	$ 6,843	$ 6,326

Note 12 - Commitments and Con_2

Note 12 - Commitments and Contingencies (Details Textual) - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Standard and Extended Product Warranty Accrual, Ending Balance	$ 0	$ 0

Note 13 - Income Taxes (Details

Note 13 - Income Taxes (Details Textual) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017	Dec. 31, 2017
Income Tax Expense (Benefit), Total	$ 1,496	$ 3,643	$ 1,890	$ 12,587
Effective Income Tax Rate Reconciliation, Percent, Total	16.40%	34.60%	14.70%	34.60%
Effective Income Tax Rate Reconciliation, Share-based Compensation, Windfall Tax Benefit, Amount	$ 100		$ 1,600
Effective Income Tax Rate Reconciliation, Share-based Compensation, Windfall Tax Benefit, Percentage			12.10%
Deferred Tax Assets, Valuation Allowance, Total	$ 0		$ 0		$ 0