Document And Entity Information
Document And Entity Information - shares | 9 Months Ended | |
Sep. 30, 2020 | Oct. 26, 2020 | |
Document Information [Line Items] | ||
Entity Central Index Key | 0000898437 | |
Entity Registrant Name | Anika Therapeutics, Inc. | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Period Focus | Q3 | |
Document Fiscal Year Focus | 2020 | |
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2020 | |
Document Transition Report | false | |
Entity File Number | 000-21326 | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 04-3145961 | |
Entity Address, Address Line One | 32 Wiggins Avenue | |
Entity Address, City or Town | Bedford | |
Entity Address, State or Province | MA | |
Entity Address, Postal Zip Code | 01730 | |
City Area Code | 781 | |
Local Phone Number | 457-9000 | |
Title of 12(b) Security | Common Stock, par value $0.01 per share | |
Trading Symbol | ANIK | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 14,214,516 |
Consolidated Balance Sheets (Cu
Consolidated Balance Sheets (Current Period Unaudited) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Current assets: | ||
Cash and cash equivalents | $ 104,216 | $ 157,463 |
Investments | 20,542 | 27,480 |
Accounts receivable, net of reserves of $1,055 and $962 at September 30, 2020 and December 31, 2019, respectively | 23,009 | 23,079 |
Inventories, net | 47,882 | 21,995 |
Prepaid expenses and other current assets | 6,226 | 4,289 |
Total current assets | 201,875 | 234,306 |
Property and equipment, net | 51,629 | 50,783 |
Right-of-use assets | 22,898 | 22,864 |
Other long-term assets | 13,226 | 7,478 |
Intangible assets, net | 94,291 | 7,585 |
Goodwill | 32,419 | 7,694 |
Total assets | 416,338 | 330,710 |
Current liabilities: | ||
Accounts payable | 6,800 | 3,832 |
Accrued expenses and other current liabilities | 24,339 | 12,445 |
Total current liabilities | 31,139 | 16,277 |
Other long-term liabilities | 987 | 357 |
Contingent consideration | 41,045 | 0 |
Long-term debt | 25,000 | 0 |
Deferred tax liability | 12,584 | 4,331 |
Lease liabilities | 21,132 | 21,367 |
Commitments and contingencies (Note 10) | ||
Stockholders’ equity: | ||
Common stock, $0.01 par value; 90,000 shares authorized, 14,208 and 14,308 shares issued and outstanding at September 30, 2020 and December 31, 2019, respectively | 142 | 143 |
Additional paid-in-capital | 52,505 | 48,707 |
Accumulated other comprehensive loss | (5,296) | (5,898) |
Retained earnings | 237,100 | 245,426 |
Total stockholders’ equity | 284,451 | 288,378 |
Total liabilities and stockholders’ equity | $ 416,338 | $ 330,710 |
Consolidated Balance Sheets (_2
Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) - USD ($) shares in Thousands, $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Accounts receivable, reserves | $ 1,055 | $ 962 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 90,000 | 90,000 |
Common stock, shares issued (in shares) | 14,208 | 14,308 |
Common stock, shares outstanding (in shares) | 14,208 | 14,308 |
Consolidated Statements of Oper
Consolidated Statements of Operations and Comprehensive Income (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Revenue | $ 31,694 | $ 29,697 | $ 97,769 | $ 84,838 |
Operating expenses: | ||||
Cost of product revenue | 14,351 | 5,951 | 45,487 | 20,098 |
Research & development | 5,217 | 4,158 | 15,799 | 12,581 |
Selling, general & administrative | 15,903 | 7,539 | 44,884 | 22,713 |
Goodwill impairment | 0 | 0 | 18,144 | 0 |
Change in fair value of contingent consideration | 4,150 | 0 | (16,176) | 0 |
Total operating expenses | 39,621 | 17,648 | 108,138 | 55,392 |
Income (loss) from operations | (7,927) | 12,049 | (10,369) | 29,446 |
Interest and other income (expense), net | (228) | 482 | (118) | 1,513 |
Income (loss) before income taxes | (8,155) | 12,531 | (10,487) | 30,959 |
Provision for (benefit from) income taxes | (1,744) | 3,331 | (2,161) | 7,817 |
Net income (loss) | $ (6,411) | $ 9,200 | $ (8,326) | $ 23,142 |
Basic net income (loss) per share: | ||||
Net income (loss) (in dollars per share) | $ (0.45) | $ 0.65 | $ (0.59) | $ 1.65 |
Basic weighted average common shares outstanding (in shares) | 14,205 | 14,070 | 14,202 | 14,065 |
Diluted net income (loss) per share: | ||||
Net income (loss) (in dollars per share) | $ (0.45) | $ 0.64 | $ (0.59) | $ 1.62 |
Diluted weighted average common shares outstanding (in shares) | 14,205 | 14,387 | 14,202 | 14,266 |
Net income (loss) | $ (6,411) | $ 9,200 | $ (8,326) | $ 23,142 |
Foreign currency translation adjustment | 522 | (622) | 602 | (792) |
Comprehensive income (loss) | (5,889) | 8,578 | (7,724) | 22,350 |
Product [Member] | ||||
Revenue | 31,694 | 29,615 | 97,769 | 84,745 |
Service [Member] | ||||
Revenue | $ 0 | $ 82 | $ 0 | $ 93 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity (Unaudited) - USD ($) shares in Thousands, $ in Thousands | Restricted Stock Units (RSUs) [Member]Common Stock [Member] | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | AOCI Attributable to Parent [Member] | Total |
Balance (in shares) at Dec. 31, 2018 | 14,210 | |||||
Balance at Dec. 31, 2018 | $ 142 | $ 50,763 | $ 218,233 | $ (5,526) | $ 263,612 | |
Stock-based compensation expense | $ 0 | 1,386 | 0 | 0 | 1,386 | |
Retirement of common stock for minimum tax withholdings (in shares) | (3) | |||||
Retirement of common stock for minimum tax withholdings | $ 0 | (124) | 0 | 0 | (124) | |
Net income (loss) | 0 | 0 | 4,507 | 0 | 4,507 | |
Other comprehensive loss | $ 0 | 0 | 0 | (315) | (315) | |
Issuance of common stock for equity awards (in shares) | 7 | |||||
Issuance of common stock for equity awards | $ 0 | 5 | 0 | 0 | 5 | |
Stock-based compensation expense | $ 0 | 1,386 | 0 | 0 | 1,386 | |
Balance (in shares) at Mar. 31, 2019 | 14,214 | |||||
Balance at Mar. 31, 2019 | $ 142 | 52,030 | 222,740 | (5,841) | 269,071 | |
Balance (in shares) at Dec. 31, 2018 | 14,210 | |||||
Balance at Dec. 31, 2018 | $ 142 | 50,763 | 218,233 | (5,526) | 263,612 | |
Net income (loss) | 23,142 | |||||
Balance (in shares) at Sep. 30, 2019 | 14,269 | |||||
Balance at Sep. 30, 2019 | $ 143 | 46,482 | 241,375 | (6,318) | 281,682 | |
Balance (in shares) at Mar. 31, 2019 | 14,214 | |||||
Balance at Mar. 31, 2019 | $ 142 | 52,030 | 222,740 | (5,841) | 269,071 | |
Forfeiture of restricted stock awards (in shares) | (7) | |||||
Stock-based compensation expense | $ 0 | 1,443 | 0 | 0 | 1,443 | |
Repurchase of common stock (in shares) | (452) | |||||
Repurchase of common stock | $ (5) | (29,995) | 0 | 0 | (30,000) | |
Net income (loss) | 0 | 0 | 9,435 | 0 | 9,435 | |
Other comprehensive loss | $ 0 | 0 | 0 | 145 | 145 | |
Issuance of common stock for equity awards (in shares) | 30 | |||||
Issuance of common stock for equity awards | $ 1 | 851 | 0 | 0 | 852 | |
Stock-based compensation expense | $ 0 | 1,443 | 0 | 0 | 1,443 | |
Balance (in shares) at Jun. 30, 2019 | 13,785 | |||||
Balance at Jun. 30, 2019 | $ 138 | 24,329 | 232,175 | (5,696) | 250,946 | |
Forfeiture of restricted stock awards (in shares) | (2) | |||||
Stock-based compensation expense | $ 0 | 1,311 | 0 | 0 | 1,311 | |
Retirement of common stock for minimum tax withholdings (in shares) | (2) | |||||
Retirement of common stock for minimum tax withholdings | $ 0 | (120) | 0 | 0 | (120) | |
Net income (loss) | 0 | 0 | 9,200 | 0 | 9,200 | |
Other comprehensive loss | $ 0 | 0 | 0 | (622) | (622) | |
Issuance of common stock for equity awards (in shares) | 488 | |||||
Issuance of common stock for equity awards | $ 5 | 20,962 | 0 | 0 | 20,967 | |
Stock-based compensation expense | $ 0 | 1,311 | 0 | 0 | 1,311 | |
Balance (in shares) at Sep. 30, 2019 | 14,269 | |||||
Balance at Sep. 30, 2019 | $ 143 | 46,482 | 241,375 | (6,318) | 281,682 | |
Balance (in shares) at Dec. 31, 2019 | 14,308 | |||||
Balance at Dec. 31, 2019 | $ 143 | 48,707 | 245,426 | (5,898) | 288,378 | |
Vesting of restricted stock units (in shares) | 42 | |||||
Forfeiture of restricted stock awards (in shares) | (9) | |||||
Stock-based compensation expense | $ 0 | (207) | 0 | 0 | (207) | |
Retirement of common stock for minimum tax withholdings (in shares) | (4) | |||||
Retirement of common stock for minimum tax withholdings | $ 0 | (141) | 0 | 0 | (141) | |
Repurchase of common stock (in shares) | (139) | |||||
Repurchase of common stock | $ (1) | 1 | 0 | 0 | 0 | |
Net income (loss) | 0 | 0 | 5,793 | 0 | 5,793 | |
Other comprehensive loss | 0 | 0 | 0 | (129) | (129) | |
Stock-based compensation expense | $ 0 | (207) | 0 | 0 | (207) | |
Balance (in shares) at Mar. 31, 2020 | 14,198 | |||||
Balance at Mar. 31, 2020 | $ 142 | 48,360 | 251,219 | (6,027) | 293,694 | |
Balance (in shares) at Dec. 31, 2019 | 14,308 | |||||
Balance at Dec. 31, 2019 | $ 143 | 48,707 | 245,426 | (5,898) | 288,378 | |
Net income (loss) | (8,326) | |||||
Balance (in shares) at Sep. 30, 2020 | 14,208 | |||||
Balance at Sep. 30, 2020 | $ 142 | 52,505 | 237,100 | (5,296) | 284,451 | |
Balance (in shares) at Mar. 31, 2020 | 14,198 | |||||
Balance at Mar. 31, 2020 | $ 142 | 48,360 | 251,219 | (6,027) | 293,694 | |
Vesting of restricted stock units (in shares) | 7 | |||||
Stock-based compensation expense | $ 0 | 2,240 | 0 | 0 | 2,240 | |
Retirement of common stock for minimum tax withholdings (in shares) | (3) | |||||
Retirement of common stock for minimum tax withholdings | $ 0 | (59) | 0 | 0 | (59) | |
Net income (loss) | 0 | 0 | (7,708) | 0 | (7,708) | |
Other comprehensive loss | $ 0 | 0 | 0 | 209 | 209 | |
Issuance of common stock for equity awards (in shares) | 2 | |||||
Issuance of common stock for equity awards | $ 0 | 68 | 0 | 0 | 68 | |
Stock-based compensation expense | $ 0 | 2,240 | 0 | 0 | 2,240 | |
Balance (in shares) at Jun. 30, 2020 | 14,204 | |||||
Balance at Jun. 30, 2020 | $ 142 | 50,609 | 243,511 | (5,818) | 288,444 | |
Vesting of restricted stock units (in shares) | 4 | |||||
Stock-based compensation expense | $ 0 | 1,920 | 0 | 0 | 1,920 | |
Retirement of common stock for minimum tax withholdings | 0 | (24) | 0 | 0 | (24) | |
Net income (loss) | 0 | 0 | (6,411) | 0 | (6,411) | |
Other comprehensive loss | 0 | 0 | 0 | 522 | 522 | |
Stock-based compensation expense | $ 0 | 1,920 | 0 | 0 | 1,920 | |
Balance (in shares) at Sep. 30, 2020 | 14,208 | |||||
Balance at Sep. 30, 2020 | $ 142 | $ 52,505 | $ 237,100 | $ (5,296) | $ 284,451 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||
Sep. 30, 2020 | Mar. 31, 2020 | Sep. 30, 2019 | Mar. 31, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | |
Cash flows from operating activities: | |||||||
Net income (loss) | $ (6,411) | $ 5,793 | $ 9,200 | $ 4,507 | $ (8,326) | $ 23,142 | |
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||
Depreciation and amortization | 9,963 | 4,459 | |||||
Payment of interest expense on finance leases | (22) | 0 | |||||
Non-cash operating lease cost | 1,136 | 880 | |||||
Goodwill impairment | 0 | 0 | 18,144 | 0 | $ 0 | ||
Change in fair value of contingent consideration | 4,150 | 0 | (16,176) | 0 | |||
Loss on disposal of fixed assets | 287 | 927 | |||||
Loss on impairment of intangible asset | 1,025 | 303 | (389) | ||||
Stock-based compensation expense | 3,953 | 4,140 | |||||
Deferred income taxes | (3,302) | 941 | |||||
Provision (recovery) for doubtful accounts | (482) | (450) | |||||
Provision for inventory | 4,205 | 1,062 | |||||
Amortization of acquisition-related inventory step-up | 7,396 | 0 | |||||
Accretion of amortized cost of investments | 3 | (1,075) | |||||
Changes in operating assets and liabilities: | |||||||
Accounts receivable | 7,811 | (2,751) | |||||
Inventories | (8,840) | (6,600) | |||||
Prepaid expenses, other current and long-term assets | (989) | 440 | |||||
Accounts payable | (1,904) | (335) | |||||
Operating lease liabilities | (1,286) | (796) | |||||
Accrued expenses, other current and long-term liabilities | (2,340) | (681) | |||||
Income taxes | 222 | 377 | |||||
Net cash provided by operating activities | 10,478 | 23,983 | |||||
Cash flows from investing activities: | |||||||
Acquisition of Parcus Medical and Arthrosurface, net of cash acquired | (93,859) | 0 | |||||
Proceeds from maturities of investments | 27,000 | 87,594 | |||||
Purchases of investments | (20,035) | (86,368) | |||||
Purchases of property and equipment | (1,179) | (2,559) | |||||
Net cash used in investing activities | (88,073) | (1,333) | |||||
Cash flows from financing activities: | |||||||
Payments made on finance leases | (155) | 0 | |||||
Repurchases of common stock | 0 | (30,000) | |||||
Repayments of long term debt | (25,351) | 0 | |||||
Proceeds from long term debt | 50,000 | 0 | |||||
Cash paid for tax withheld on vested restricted stock awards | (224) | (245) | |||||
Proceeds from exercises of equity awards | 68 | 21,825 | |||||
Net cash provided by (used in) financing activities | 24,338 | (8,420) | |||||
Exchange rate impact on cash | 10 | 109 | |||||
(Decrease)/Increase in cash and cash equivalents | (53,247) | 14,339 | |||||
Cash and cash equivalents at beginning of period | $ 157,463 | $ 89,042 | 157,463 | 89,042 | 89,042 | ||
Cash and cash equivalents at end of period | 104,216 | 103,381 | 104,216 | 103,381 | $ 157,463 | ||
Supplemental disclosure of cash flow information: | |||||||
Right-of-use assets obtained in exchange for operating lease liabilities as of January 1, 2019 | $ 603 | $ 488 | 1,739 | 1,482 | |||
Non-cash Investing Activities: | |||||||
Purchases of property and equipment included in accounts payable and accrued expenses | 44 | 132 | |||||
Consideration for acquisitions included in accounts payable and accrued expenses | 1,209 | 0 | |||||
Acquisition-related contingent consideration | 69,076 | 0 | |||||
Accounting Standards Update 2016-02 [Member] | |||||||
Supplemental disclosure of cash flow information: | |||||||
Right-of-use assets obtained in exchange for operating lease liabilities as of January 1, 2019 | $ 0 | $ 24,110 |
Note 1 - Nature of Business
Note 1 - Nature of Business | 9 Months Ended |
Sep. 30, 2020 | |
Notes to Financial Statements | |
Nature of Operations [Text Block] | 1. Nature of Business Anika Therapeutics, Inc. (“the Company”), is a global joint preservation company that creates and delivers meaningful advancements in early intervention orthopedic care, including in the areas of osteoarthritis pain management, regenerative solutions, soft tissue repair and bone preserving joint technologies. In early 2020, There continue to be uncertainties regarding the pandemic of the novel coronavirus (“COVID- 19” 19 19 may may 19. 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, 2020 | |
Notes to Financial Statements | |
Business Description and Basis of Presentation [Text Block] | 2. Basis of Presentation The accompanying unaudited 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 omitted pursuant to SEC rules and regulations relating to interim financial statements. The December 31, 2019 The accompanying unaudited 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, 2019. three nine September 30, 2020 not December 31, 2020. Segment Information Operating segments are components of an enterprise about which separate financial information is available that is evaluated regularly by the chief operating decision maker, or decision-making group, in deciding how to allocate resources and in assessing performance. The Company's chief operating decision maker is its President and Chief Executive Officer. Based on the criteria established by Accounting Standards Codification (“ASC”) 280, Segment Reportin one Recent Accounting Adoptions In August 2018, No. 2018 15, Intangibles – Goodwill and Other – Internal-Use Software (Subtopic 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 January 1, 2020. not In June 2016, No. 2016 13, Financial Instruments - Credit Losses 2016 13 December 15, 2019 2016 13 January 1, 2020. not not |
Note 3 - Business Combinations
Note 3 - Business Combinations | 9 Months Ended |
Sep. 30, 2020 | |
Notes to Financial Statements | |
Business Combination Disclosure [Text Block] | 3. Business Combinations Parcus Medical, LLC On January 24, 2020, January 4, 2020 ( The acquisition of Parcus Medical has been accounted for as a business combination under ASC 805. 805, no one January 24, 2020 Consideration Transferred Pursuant to the Parcus Medical Merger Agreement, the Company acquired all outstanding equity of Parcus Medical for estimated total purchase consideration of $75.1 million, which consists of: Cash consideration $ 32,794 Deferred consideration 1,642 Estimated fair value of contingent consideration 40,700 Estimated total purchase consideration $ 75,136 Contingent consideration represents additional payments that the Company may 2020 2022. one September 30, 2020. Acquisition-related costs are not three March 31, 2020. March 31, 2020 Fair Value of Net Assets Acquired The preliminary estimate of fair value required the use of significant assumptions and estimates. Critical estimates included, but were not may one The preliminary allocation of purchase price to the identifiable assets acquired and liabilities assumed was based on preliminary estimates of fair value as of January 24, 2020, Recognized identifiable assets acquired and liabilities assumed: Cash and cash equivalents $ 196 Accounts receivable 2,029 Inventories 10,968 Prepaid expenses and other current assets 364 Property and equipment, net 1,099 Right-of-use assets 944 Intangible assets 44,000 Accounts payable, accrued expenses and other current liabilities (2,763 ) Other long-term liabilities (594 ) Lease liabilities (735 ) Net assets acquired 55,508 Goodwill 19,628 Estimated total purchase consideration $ 75,136 During the three September 30, 2020, January 24, 2020 three nine September 30, 2020 not The excess of the purchase price over the fair value of the net assets acquired was recorded as goodwill and assigned to the newly established reporting unit for Parcus Medical and Arthrosurface. The goodwill is attributable to the workforce of the business and the value of future technologies expected to arise after the acquisition. Goodwill will not January 24, 2020 Intangible assets acquired consist of: Developed technology $ 41,100 Trade name 1,800 Customer relationships 1,100 Total intangible assets $ 44,000 The preliminary fair value of the developed technology intangible assets has been estimated using the multi-period excess earnings method, which is based on the principle that the value of an intangible asset is equal to the present value of the incremental after-tax cash flow attributable to the asset, after charges for other assets employed by the business. The preliminary fair value of the customer relationships has been estimated using the avoided costs/lost profits method, which is based on the principle that the value of an intangible asset is based on consideration of the total costs that would be avoided by having this asset in place. The preliminary fair value of the trade name has been estimated using the relief from royalty method of the income approach, which is based on the principle that the value of an intangible asset is equal to the present value of the after-tax royalty savings attributable to owning the intangible asset. Key estimates and assumptions used in these models are projected revenues and expenses related to the asset, estimated contributory asset charges, estimated costs to recreate the asset, and a risk-adjusted discount rate used to calculate the present value of the future expected cash inflows or cash outflows avoided from the asset. The final fair value determination of the identified intangible assets may Revenue and Net Loss The Company recorded revenue from Parcus Medical of $3.3 million and a net loss of $1.6 million in the three September 30, 2020. January 24 September 30, 2020. Arthrosurface, Inc. On February 3, 2020, January 4, 2020 ( The acquisition of Arthrosurface has been accounted for as a business combination under ASC 805. 805, no one February 3, 2020 Consideration Transferred Pursuant to the Arthrosurface Merger Agreement, the Company acquired all outstanding equity of Arthrosurface for estimated total purchase consideration of $90.3 million, which consists of: Cash consideration $ 61,909 Estimated fair value of contingent consideration 28,376 Estimated total purchase consideration $ 90,285 The Company may 2020 2021. 2020 2021 Acquisition-related costs are not three March 31, 2020. March 31, 2020 Fair Value of Net Assets Acquired The preliminary estimate of fair value required the use of significant assumptions and estimates. Critical estimates included, but were not may one The preliminary allocation of purchase price to the identifiable assets acquired and liabilities assumed was based on preliminary estimates of fair value as of February 3, 2020, Recognized identifiable assets acquired and liabilities assumed: Cash and cash equivalents $ 1,072 Accounts receivable 5,368 Inventories 15,652 Prepaid expenses and other current assets 535 Property, plant and equipment 3,394 Other long-term assets 7,548 Intangible assets 48,900 Accounts payable, accrued expenses and other liabilities (3,929 ) Deferred tax liabilities (11,147 ) Net assets acquired 67,393 Goodwill 22,892 Estimated total purchase consideration $ 90,285 The excess of the purchase price over the fair value of the net assets acquired was recorded as goodwill and assigned to the newly established reporting unit for Parcus Medical and Arthrosurface. The goodwill is attributable to the workforce of the business and the value of future technologies expected to arise after the acquisition. Goodwill will not not Intangible assets acquired consist of: Developed technology $ 37,000 Trade name 3,400 Customer relationships 7,900 IPR&D 600 Total intangible assets $ 48,900 The preliminary fair value of the developed technology intangible assets has been estimated using the multi-period excess earnings method, which is based on the principle that the value of an intangible asset is equal to the present value of the incremental after-tax cash flow attributable to the asset, after charges for other assets employed by the business. The preliminary fair value of the customer relationships has been estimated using the avoided costs/lost profits method, which is based on the principle that the value of an intangible asset is based on consideration of the total costs that would be avoided by having this asset in place. The preliminary fair value of the trade name has been estimated using the relief from royalty method of the income approach, which is based on the principle that the value of an intangible asset is equal to the present value of the after-tax royalty savings attributable to owning the intangible asset. Key estimates and assumptions used in these models are projected revenues and expenses related to the asset, estimated contributory asset charges, estimated costs to recreate the asset, and a risk-adjusted discount rate used to calculate the present value of the future expected cash inflows or cash outflows avoided from the asset. The final fair value determination of the identified intangible assets may Revenue and Net Loss The Company recorded revenue from Arthrosurface of $7.2 million and a net loss of $1.6 million in the three September 30, 2020. February 3 September 30, 2020. Pro forma Information The Parcus Medical and Arthrosurface acquisitions were both completed in the first 2020. 11, The unaudited pro forma information for the three nine September 30, 2020 2019 January 1, 2019 These pro forma adjustments include: (i) a net increase in amortization expense to record amortization expense for the aforementioned acquired identifiable intangible assets, (ii) an adjustment to cost of product revenue based on the preliminary fair value inventory adjustment and the anticipated inventory turnover, (iii) a net decrease in interest expense as a result of eliminating interest expense and interest income related to borrowings that were settled in accordance with the respective Parcus Merger Agreement and Arthrosurface Merger Agreement, (iv) an adjustment to record the acquisition-related transaction costs in the period required, and (v) the tax effect of the pro forma adjustments using the anticipated effective tax rate. The effective tax rate of the combined company could be materially different from the rate presented in this unaudited pro forma combined financial information. As a result of the transaction, the combined company may not The following table presents unaudited supplemental pro forma information: For the Three Months Ended September 30, For the Nine Months Ended September 30, 2020 2019 2020 2019 Total revenue $ 31,694 $ 39,912 $ 101,722 $ 115,045 Net income (loss) (6,411 ) 4,909 (7,328 ) 7,296 |
Note 4 - Fair Value Measurement
Note 4 - Fair Value Measurements | 9 Months Ended |
Sep. 30, 2020 | |
Notes to Financial Statements | |
Fair Value Disclosures [Text Block] | 4. Fair Value Measurements The Company held U.S. treasury bills of $15.0 million and certificates of deposit of $5.5 million at September 30, 2020. December 31, 2019. September 30, 2020 December 31, 2019, The Company’s investments are all classified within Levels 1 2 1 2 third not 3 The fair value hierarchy of the Company's cash equivalents, investments and liabilities at fair value was as follows: Fair Value Measurements at Reporting Date Using Quoted Prices in Active Markets Significant Other Significant for Identical Assets Observable Inputs Unobservable Inputs September 30, 2020 (Level 1) (Level 2) (Level 3) Amortized Cost Cash equivalents: Money Market Funds $ 56,431 $ 56,431 $ - $ - $ 56,431 Investments: Bank Certificates of Deposit $ 5,503 $ - $ 5,503 $ - $ 5,516 U.S. Treasury Bills 15,039 15,039 - - 15,130 Total Investments $ 20,542 $ 15,039 $ 5,503 $ - $ 20,646 Other current and long-term liabilities: Contingent Consideration - Short Term $ 11,855 $ - $ - $ 11,855 $ - Contingent Consideration - Long Term 41,045 - - 41,045 - Total Other current and long-term liabilities $ 52,900 $ - $ - $ 52,900 $ - Fair Value Measurements at Reporting Date Using Quoted Prices in Active Markets Significant Other Significant for Identical Assets Observable Inputs Unobservable Inputs December 31, 2019 (Level 1) (Level 2) (Level 3) Amortized Cost Cash equivalents: Money Market Funds $ 48,971 $ 48,971 $ - $ - $ 48,971 Investments: U.S. Treasury Bills $ 27,480 $ 27,480 $ - $ - $ 27,479 There were no nine September 30, 2020 2019. Contingent Consideration The following table provides a rollforward of the contingent consideration related to business acquisitions discussed in Note 3. Nine Months Ended September 30, 2020 Balance, beginning January 1, 2020 $ - Additions 69,076 Payments - Change in fair value (16,176 ) Balance, ending September 30, 2020 $ 52,900 Under the Parcus Medical Merger Agreement and Arthrosurface Merger Agreement, there are earn-out milestones totaling $100 million payable from 2020 2022. 2020 2022, 2020 2021. September 30, 2020. 19 The fair value of contingent consideration is assessed on a quarterly basis. The fair value of contingent consideration increased by $4.2 million for the three September 30, 2020 third nine September 30, 2020 19 October 15, 2020, |
Note 5 - Inventories
Note 5 - Inventories | 9 Months Ended |
Sep. 30, 2020 | |
Notes to Financial Statements | |
Inventory Disclosure [Text Block] | 5. Inventories Inventories consist of the following: September 30, December 31, 2020 2019 Raw materials $ 12,973 $ 12,058 Work-in-process 12,372 8,330 Finished goods 35,259 8,777 Total $ 60,604 $ 29,165 Inventories $ 47,882 $ 21,995 Other long-term assets 12,722 7,170 The increase in inventories for the nine September 30, 2020 January February 2020, 3. The Company recorded an inventory reserve of $1.9 million during the three June 30, 2020 not not |
Note 6 - Intangible Assets
Note 6 - Intangible Assets | 9 Months Ended |
Sep. 30, 2020 | |
Notes to Financial Statements | |
Goodwill and Intangible Assets Disclosure [Text Block] | 6. Intangible Assets Intangible assets as of September 30, 2020 December 31, 2019 Nine Months Ended September 30, 2020 Gross Value Less: Accumulated Currency Translation Adjustment Less: Current Period Impairment Charge Less: Accumulated Amortization Net Book Value Weighted Average Useful Life Developed technology $ 93,953 $ (2,766 ) $ (1,025 ) $ (12,919 ) $ 77,243 15 In-process research & development 5,006 (1,120 ) - - 3,886 Indefinite Customer relationships 9,000 - - (568 ) 8,432 10 Distributor relationships 4,700 (415 ) - (4,285 ) - 5 Patents 1,000 (167 ) - (602 ) 231 16 Tradenames 5,200 - - (701 ) 4,499 5 Total $ 118,859 $ (4,468 ) $ (1,025 ) $ (19,075 ) $ 94,291 13 Year Ended December 31, 2019 Gross Value Less: Accumulated Currency Translation Adjustment Less: Current Period Impairment Charge Less: Accumulated Amortization Net Book Value Weighted Average Useful Life Developed technology $ 17,100 $ (2,934 ) $ (389 ) $ (9,657 ) $ 4,120 15 In-process research & development 4,406 (1,234 ) - - 3,172 Indefinite Distributor relationships 4,700 (415 ) - (4,285 ) - 5 Patents 1,000 (176 ) - (531 ) 293 16 Elevess Tradename 1,000 - - (1,000 ) - 9 Total $ 28,206 $ (4,759 ) $ (389 ) $ (15,473 ) $ 7,585 11 The aggregate amortization expense related to intangible assets was $1.9 million and $0.3 million for the three September 30, 2020 2019, nine September 30, 2020 2019, In the first 2020, 3, six June 30, 2020, not For the quarter ended September 30, 2020, not |
Note 7 - Goodwill
Note 7 - Goodwill | 9 Months Ended |
Sep. 30, 2020 | |
Notes to Financial Statements | |
Goodwill Disclosure [Text Block] | 7. Goodwill The Company assesses goodwill for impairment annually, or, under certain circumstances, more frequently, such as when events or changes in circumstances indicate there may may first not may not not not no As of December 31, 2019, 2019 Nine Months Ended September 30, 2020 Year Ended December 31, 2019 Balance, beginning $ 7,694 $ 7,851 Effect of foreign currency adjustments 349 (157 ) Acquisitions 42,520 - Impairment (18,144 ) - Balance, ending $ 32,419 $ 7,694 The increase in goodwill for the nine September 30, 2020 January February 2020 3. one The widespread economic volatility resulting from the COVID- 19 first 2020, not not not March 31, 2020. September 30, 2020, no may not U.S. government policy responses to the COVID- 19 first 2020, March 31, 2020. This approach incorporates significant estimates and assumptions related to the forecasted results including revenues, expenses, the achievement of certain cost synergies, terminal growth rates and discount rates to estimate future cash flows. While assumptions utilized are subject to a high degree of judgment and complexity, the Company made its best estimate of future cash flows under a high degree of economic uncertainty that existed as of March 31, 2020. The results of the interim impairment test indicated that the estimated fair value of the Parcus and Arthrosurface reporting unit was less than its carrying value. This was primarily due to decreases in near term revenue and related cash flows as a result of the temporary suspension of domestic elective procedures which directly impact the Parcus and Arthrosurface reporting unit. Consequently, a non-cash goodwill impairment charge was recorded as reflected in the table above as of March 31, 2020. September 30, 2020, no March 31, 2020 may not not |
Note 8 - Leases
Note 8 - Leases | 9 Months Ended |
Sep. 30, 2020 | |
Notes to Financial Statements | |
Lessee, Operating Leases and Finance Leases [Text Block] | 8. Leases The components of lease expense and other information are as follows: For the Three Months Ended For the Nine Months Ended September 30, 2020 September 30, 2019 September 30, 2020 September 30, 2019 Amortization of right-of-use assets $ 50 $ - $ 136 $ - Interest on finance lease liabilities 7 - 22 - Finance lease expense $ 57 $ - $ 158 $ - Operating lease expense 590 525 1,759 1,568 Short-term lease expense - - - 6 Variable lease expense 67 43 204 155 Total lease expense $ 714 $ 568 $ 2,121 $ 1,729 For the Three Months Ended For the Nine Months Ended September 30, 2020 September 30, 2019 September 30, 2020 September 30, 2019 Weighted Average Remaining Lease Term (in years) Operating leases 15.9 17.1 15.9 17.1 Financing leases 3.3 - 3.3 - Weighted Average Discount Rate Operating leases 4.1 % 4.1 % 4.1 % 4.1 % Financing leases 5.0 % - 5.0 % - Other information Operating cash flows from operating leases $ 603 $ 488 $ 1,739 $ 1,482 Operating cash flows from financing leases $ 59 $ - $ 110 $ - Future commitments due under these lease agreements as of September 30, 2020 Years ended December 31, Operating Leases Financing Leases Total 2020 (Remaining 3 months) $ 598 $ 59 $ 657 2021 2,304 170 2,474 2022 2,240 166 2,406 2023 2,123 160 2,283 2024 2,059 44 2,103 2025 1,924 - 1,924 Thereafter 19,450 - 19,450 Present value adjustment (8,103 ) (44 ) (8,147 ) Present value of lease payments 22,595 555 23,150 Less current portion included in accrued expenses and other current liabilities (1,463 ) (164 ) (1,627 ) Total lease liabilities $ 21,132 $ 391 $ 21,523 |
Note 9 - Accrued Expenses
Note 9 - Accrued Expenses | 9 Months Ended |
Sep. 30, 2020 | |
Notes to Financial Statements | |
Accounts Payable and Accrued Liabilities Disclosure [Text Block] | 9. Accrued Expenses Accrued expenses consist of the following: September 30, December 31, Compensation and related expenses $ 6,559 $ 5,830 Professional fees 2,358 3,850 Operating lease liability - current 1,463 1,141 Clinical trial costs 910 788 Current portion of acquisition-related contingent consideration (Note 4) 11,855 - Finance lease liability - current 163 - Other 1,031 836 Total $ 24,339 $ 12,445 |
Note 10 - Commitments and Conti
Note 10 - Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2020 | |
Notes to Financial Statements | |
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 specific product. The Company may not third September 30, 2020 December 31, 2019 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 11 - Revenue
Note 11 - Revenue | 9 Months Ended |
Sep. 30, 2020 | |
Notes to Financial Statements | |
Revenue from Contract with Customer [Text Block] | 11. Revenue 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, 2020, 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 48% and 52% of total Company revenues for the three nine September 30, 2020, three nine September 30, 2019, may Revenue Recognition Associated with Acquired Businesses: Pursuant to ASC 606, Arthrosurface and Parcus Medical products are sold through two In direct channel accounts, inventory is generally consigned to sales agents so that products are available when needed for surgical procedures. No With sales to stocking distributors revenue is generally recognized when control of Arthrosurface and Parcus Medical product passes to the customer, which is typically upon shipment of the product. It is our accounting policy to account for shipping and handling activities as a fulfillment cost rather than as an additional promised service. The payment terms with respect to sales through both channels are consistent with prevailing practice in the respective markets in which the Company does business. Payment terms align with the one Product and Total Revenue Historically, the Company categorized its product offerings into four first 2020, three January 24, 2020 February 3, 2020 Product revenue by product family was as follows: Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Joint Pain Management $ 18,439 $ 27,581 $ 66,168 $ 77,063 Orthopedic Joint Preservation and Restoration 11,715 544 26,233 1,510 Other 1,540 1,490 5,368 6,172 $ 31,694 $ 29,615 $ 97,769 $ 84,745 Total revenue by geographic location was as follows: Three Months Ended September 30, 2020 2019 Total Percentage of Total Percentage of Revenue Revenue Revenue Revenue Geographic Location: United States $ 26,409 84 % $ 23,512 79 % Europe 2,954 9 % 3,943 13 % Other 2,331 7 % 2,242 8 % Total $ 31,694 100 % $ 29,697 100 % Nine Months Ended September 30, 2020 2019 Total Percentage of Total Percentage of Revenue Revenue Revenue Revenue Geographic Location: United States $ 77,848 80 % $ 66,538 78 % Europe 11,140 11 % 11,396 14 % Other 8,781 9 % 6,904 8 % Total $ 97,769 100 % $ 84,838 100 % |
Note 12 - Equity Incentive Plan
Note 12 - Equity Incentive Plan | 9 Months Ended |
Sep. 30, 2020 | |
Notes to Financial Statements | |
Share-based Payment Arrangement [Text Block] | 12. Equity Incentive Plan The Company estimates the fair value of stock options and stock appreciation rights (“SARs”) using the Black-Scholes valuation model, and estimates the fair value of the total shareholder return options (“TSRs”) using a Monte-Carlo simulation model as of the grant date. Fair value of restricted stock awards (“RSAs”) and restricted stock units (“RSUs”) is measured by the grant-date price of the Company’s shares. Fair value of performance restricted stock units (“PSUs”) is measured by the grant-date price of the Company’s shares with corresponding compensation cost recognized over the requisite service period. Compensation cost of PSUs is recognized based on the estimated probabilities of achieving the performance goals. Changes to the probability assessment and the estimated shares expected to vest will result in adjustments to the related compensation cost that will be recorded in the period of the change. If the performance targets are not no The fair value of each stock option award during the nine September 30, 2020 2019 Nine months ended 2020 2019 Risk free interest rate 0.21% - 1.59% 1.41% - 2.54% Expected volatility 46.48% - 52.99% 44.27% - 46.21% Expected life (years) 4.0 - 6.3 3.5 Expected dividend yield 0.00% 0.00% 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, 2020 2019 2020 2019 Cost of product revenue $ 202 $ 114 $ 564 $ 288 Research & development 206 50 558 318 Selling, general & administrative 1,512 1,147 2,832 3,534 Total stock-based compensation expense $ 1,920 $ 1,311 $ 3,954 $ 4,140 The Company’s former President and Chief Executive Officer, Joseph Darling, passed unexpectedly in January 2020. 2017 “2017 one three March 31, 2020 The following table sets forth share information for stock-based compensation awards granted and exercised during the three nine September 30, 2020 2019: Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Grants: Stock options 85,345 87,250 402,558 218,867 RSUs 34,697 9,000 218,804 185,507 PSUs 16,077 9,000 162,297 123,500 TSRs - - 104,638 - Exercises: Stock options - 488,586 2,146 511,486 Forfeitures: Stock options 32,629 42,566 86,732 81,638 RSAs - 1,975 8,574 12,533 RSUs 17,937 7,500 90,103 19,100 PSUs 19,000 4,500 90,000 13,500 Expirations: Stock options 3,083 25,697 3,646 44,829 During the three nine September 30, 2020, three 2020 2022 2020 2022 three nine September 30, 2020. During the second 2020, may three nine September 30, 2020, |
Note 13 - Earnings Per Share ("
Note 13 - Earnings Per Share ("EPS") | 9 Months Ended |
Sep. 30, 2020 | |
Notes to Financial Statements | |
Earnings Per Share [Text Block] | 13. Earnings Per Share (“EPS”) Basic EPS is calculated by dividing net income (loss) 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 (loss) per share: Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Shares used in the calculation of basic earnings per share 14,205 14,070 14,202 14,065 Effect of dilutive securities: Share-based payment awards - 317 - 201 Diluted shares used in the calculation of earnings per share 14,205 14,387 14,202 14,266 For the three nine September 30, 2020, three September 30, 2020 2019 not nine September 30, 2020 2019 not |
Note 14 - Accelerated Share Rep
Note 14 - Accelerated Share Repurchase | 9 Months Ended |
Sep. 30, 2020 | |
Notes to Financial Statements | |
Accelerated Share Repurchases Disclosure [Text Block] | 14. Accelerated Share Repurchase In May 2019, May 7, 2019, May 2019 January 2020, January 14, 2020. September 30, 2020, no |
Note 15 - Income Taxes
Note 15 - Income Taxes | 9 Months Ended |
Sep. 30, 2020 | |
Notes to Financial Statements | |
Income Tax Disclosure [Text Block] | 15. Income Taxes In response to the COVID- 19 March 2020. not The benefit from income taxes was $1.7 million and $2.2 million for the three nine September 30, 2020, three nine September 30, 2019, three nine September 30, 2020, 2019, 3. 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 September 30, 2020, not” not |
Note 16 - Revolving Credit Agre
Note 16 - Revolving Credit Agreement | 9 Months Ended |
Sep. 30, 2020 | |
Notes to Financial Statements | |
Debt Disclosure [Text Block] | 16. Revolving Credit Agreement On April 8, 2020, three nine September 30, 2020 three September 30, 2020, September 30, 2020, October 2022, may may The existing credit facility was entered into on October 24, 2017. five may one five December 31, 2019 2018, not first |
Note 17 - Subsequent Events
Note 17 - Subsequent Events | 9 Months Ended |
Sep. 30, 2020 | |
Notes to Financial Statements | |
Subsequent Events [Text Block] | 17. Subsequent Events On October 15, 2020, |
Note 3 - Business Combinations
Note 3 - Business Combinations (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Notes Tables | |
Schedule of Business Acquisitions, by Acquisition [Table Text Block] | Cash consideration $ 32,794 Deferred consideration 1,642 Estimated fair value of contingent consideration 40,700 Estimated total purchase consideration $ 75,136 Cash consideration $ 61,909 Estimated fair value of contingent consideration 28,376 Estimated total purchase consideration $ 90,285 |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed [Table Text Block] | Recognized identifiable assets acquired and liabilities assumed: Cash and cash equivalents $ 196 Accounts receivable 2,029 Inventories 10,968 Prepaid expenses and other current assets 364 Property and equipment, net 1,099 Right-of-use assets 944 Intangible assets 44,000 Accounts payable, accrued expenses and other current liabilities (2,763 ) Other long-term liabilities (594 ) Lease liabilities (735 ) Net assets acquired 55,508 Goodwill 19,628 Estimated total purchase consideration $ 75,136 Recognized identifiable assets acquired and liabilities assumed: Cash and cash equivalents $ 1,072 Accounts receivable 5,368 Inventories 15,652 Prepaid expenses and other current assets 535 Property, plant and equipment 3,394 Other long-term assets 7,548 Intangible assets 48,900 Accounts payable, accrued expenses and other liabilities (3,929 ) Deferred tax liabilities (11,147 ) Net assets acquired 67,393 Goodwill 22,892 Estimated total purchase consideration $ 90,285 |
Schedule of Finite-Lived Intangible Assets Acquired as Part of Business Combination [Table Text Block] | Intangible assets acquired consist of: Developed technology $ 41,100 Trade name 1,800 Customer relationships 1,100 Total intangible assets $ 44,000 Intangible assets acquired consist of: Developed technology $ 37,000 Trade name 3,400 Customer relationships 7,900 IPR&D 600 Total intangible assets $ 48,900 |
Business Acquisition, Pro Forma Information [Table Text Block] | For the Three Months Ended September 30, For the Nine Months Ended September 30, 2020 2019 2020 2019 Total revenue $ 31,694 $ 39,912 $ 101,722 $ 115,045 Net income (loss) (6,411 ) 4,909 (7,328 ) 7,296 |
Note 4 - Fair Value Measureme_2
Note 4 - Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Notes Tables | |
Fair Value, Assets Measured on Recurring Basis [Table Text Block] | Fair Value Measurements at Reporting Date Using Quoted Prices in Active Markets Significant Other Significant for Identical Assets Observable Inputs Unobservable Inputs September 30, 2020 (Level 1) (Level 2) (Level 3) Amortized Cost Cash equivalents: Money Market Funds $ 56,431 $ 56,431 $ - $ - $ 56,431 Investments: Bank Certificates of Deposit $ 5,503 $ - $ 5,503 $ - $ 5,516 U.S. Treasury Bills 15,039 15,039 - - 15,130 Total Investments $ 20,542 $ 15,039 $ 5,503 $ - $ 20,646 Other current and long-term liabilities: Contingent Consideration - Short Term $ 11,855 $ - $ - $ 11,855 $ - Contingent Consideration - Long Term 41,045 - - 41,045 - Total Other current and long-term liabilities $ 52,900 $ - $ - $ 52,900 $ - Fair Value Measurements at Reporting Date Using Quoted Prices in Active Markets Significant Other Significant for Identical Assets Observable Inputs Unobservable Inputs December 31, 2019 (Level 1) (Level 2) (Level 3) Amortized Cost Cash equivalents: Money Market Funds $ 48,971 $ 48,971 $ - $ - $ 48,971 Investments: U.S. Treasury Bills $ 27,480 $ 27,480 $ - $ - $ 27,479 |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Table Text Block] | Nine Months Ended September 30, 2020 Balance, beginning January 1, 2020 $ - Additions 69,076 Payments - Change in fair value (16,176 ) Balance, ending September 30, 2020 $ 52,900 |
Note 5 - Inventories (Tables)
Note 5 - Inventories (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Notes Tables | |
Schedule of Inventory, Current [Table Text Block] | September 30, December 31, 2020 2019 Raw materials $ 12,973 $ 12,058 Work-in-process 12,372 8,330 Finished goods 35,259 8,777 Total $ 60,604 $ 29,165 Inventories $ 47,882 $ 21,995 Other long-term assets 12,722 7,170 |
Note 6 - Intangible Assets (Tab
Note 6 - Intangible Assets (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Notes Tables | |
Schedule of Finite-Lived and Indefinite-Lived Intangible Assets by Major Class [Table Text Block] | Nine Months Ended September 30, 2020 Gross Value Less: Accumulated Currency Translation Adjustment Less: Current Period Impairment Charge Less: Accumulated Amortization Net Book Value Weighted Average Useful Life Developed technology $ 93,953 $ (2,766 ) $ (1,025 ) $ (12,919 ) $ 77,243 15 In-process research & development 5,006 (1,120 ) - - 3,886 Indefinite Customer relationships 9,000 - - (568 ) 8,432 10 Distributor relationships 4,700 (415 ) - (4,285 ) - 5 Patents 1,000 (167 ) - (602 ) 231 16 Tradenames 5,200 - - (701 ) 4,499 5 Total $ 118,859 $ (4,468 ) $ (1,025 ) $ (19,075 ) $ 94,291 13 Year Ended December 31, 2019 Gross Value Less: Accumulated Currency Translation Adjustment Less: Current Period Impairment Charge Less: Accumulated Amortization Net Book Value Weighted Average Useful Life Developed technology $ 17,100 $ (2,934 ) $ (389 ) $ (9,657 ) $ 4,120 15 In-process research & development 4,406 (1,234 ) - - 3,172 Indefinite Distributor relationships 4,700 (415 ) - (4,285 ) - 5 Patents 1,000 (176 ) - (531 ) 293 16 Elevess Tradename 1,000 - - (1,000 ) - 9 Total $ 28,206 $ (4,759 ) $ (389 ) $ (15,473 ) $ 7,585 11 |
Note 7 - Goodwill (Tables)
Note 7 - Goodwill (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Notes Tables | |
Schedule of Goodwill [Table Text Block] | Nine Months Ended September 30, 2020 Year Ended December 31, 2019 Balance, beginning $ 7,694 $ 7,851 Effect of foreign currency adjustments 349 (157 ) Acquisitions 42,520 - Impairment (18,144 ) - Balance, ending $ 32,419 $ 7,694 |
Note 8 - Leases (Tables)
Note 8 - Leases (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Notes Tables | |
Lease, Cost [Table Text Block] | For the Three Months Ended For the Nine Months Ended September 30, 2020 September 30, 2019 September 30, 2020 September 30, 2019 Amortization of right-of-use assets $ 50 $ - $ 136 $ - Interest on finance lease liabilities 7 - 22 - Finance lease expense $ 57 $ - $ 158 $ - Operating lease expense 590 525 1,759 1,568 Short-term lease expense - - - 6 Variable lease expense 67 43 204 155 Total lease expense $ 714 $ 568 $ 2,121 $ 1,729 For the Three Months Ended For the Nine Months Ended September 30, 2020 September 30, 2019 September 30, 2020 September 30, 2019 Weighted Average Remaining Lease Term (in years) Operating leases 15.9 17.1 15.9 17.1 Financing leases 3.3 - 3.3 - Weighted Average Discount Rate Operating leases 4.1 % 4.1 % 4.1 % 4.1 % Financing leases 5.0 % - 5.0 % - Other information Operating cash flows from operating leases $ 603 $ 488 $ 1,739 $ 1,482 Operating cash flows from financing leases $ 59 $ - $ 110 $ - |
Lessee, Operating Lease and Finance Lease, Liability, Maturity [Table Text Block] | Years ended December 31, Operating Leases Financing Leases Total 2020 (Remaining 3 months) $ 598 $ 59 $ 657 2021 2,304 170 2,474 2022 2,240 166 2,406 2023 2,123 160 2,283 2024 2,059 44 2,103 2025 1,924 - 1,924 Thereafter 19,450 - 19,450 Present value adjustment (8,103 ) (44 ) (8,147 ) Present value of lease payments 22,595 555 23,150 Less current portion included in accrued expenses and other current liabilities (1,463 ) (164 ) (1,627 ) Total lease liabilities $ 21,132 $ 391 $ 21,523 |
Note 9 - Accrued Expenses (Tabl
Note 9 - Accrued Expenses (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Notes Tables | |
Schedule of Accrued Liabilities [Table Text Block] | September 30, December 31, Compensation and related expenses $ 6,559 $ 5,830 Professional fees 2,358 3,850 Operating lease liability - current 1,463 1,141 Clinical trial costs 910 788 Current portion of acquisition-related contingent consideration (Note 4) 11,855 - Finance lease liability - current 163 - Other 1,031 836 Total $ 24,339 $ 12,445 |
Note 11 - Revenue (Tables)
Note 11 - Revenue (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Notes Tables | |
Schedule of Segment Reporting Information, by Segment [Table Text Block] | Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Joint Pain Management $ 18,439 $ 27,581 $ 66,168 $ 77,063 Orthopedic Joint Preservation and Restoration 11,715 544 26,233 1,510 Other 1,540 1,490 5,368 6,172 $ 31,694 $ 29,615 $ 97,769 $ 84,745 |
Schedule of Revenue and Operating Income by Geographical Areas [Table Text Block] | Three Months Ended September 30, 2020 2019 Total Percentage of Total Percentage of Revenue Revenue Revenue Revenue Geographic Location: United States $ 26,409 84 % $ 23,512 79 % Europe 2,954 9 % 3,943 13 % Other 2,331 7 % 2,242 8 % Total $ 31,694 100 % $ 29,697 100 % Nine Months Ended September 30, 2020 2019 Total Percentage of Total Percentage of Revenue Revenue Revenue Revenue Geographic Location: United States $ 77,848 80 % $ 66,538 78 % Europe 11,140 11 % 11,396 14 % Other 8,781 9 % 6,904 8 % Total $ 97,769 100 % $ 84,838 100 % |
Note 12 - Equity Incentive Pl_2
Note 12 - Equity Incentive Plan (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Notes Tables | |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block] | Nine months ended 2020 2019 Risk free interest rate 0.21% - 1.59% 1.41% - 2.54% Expected volatility 46.48% - 52.99% 44.27% - 46.21% Expected life (years) 4.0 - 6.3 3.5 Expected dividend yield 0.00% 0.00% |
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Table Text Block] | Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Cost of product revenue $ 202 $ 114 $ 564 $ 288 Research & development 206 50 558 318 Selling, general & administrative 1,512 1,147 2,832 3,534 Total stock-based compensation expense $ 1,920 $ 1,311 $ 3,954 $ 4,140 |
Disclosure of Share-based Compensation Arrangements by Share-based Payment Award [Table Text Block] | Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Grants: Stock options 85,345 87,250 402,558 218,867 RSUs 34,697 9,000 218,804 185,507 PSUs 16,077 9,000 162,297 123,500 TSRs - - 104,638 - Exercises: Stock options - 488,586 2,146 511,486 Forfeitures: Stock options 32,629 42,566 86,732 81,638 RSAs - 1,975 8,574 12,533 RSUs 17,937 7,500 90,103 19,100 PSUs 19,000 4,500 90,000 13,500 Expirations: Stock options 3,083 25,697 3,646 44,829 |
Note 13 - Earnings Per Share _2
Note 13 - Earnings Per Share ("EPS") (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Notes Tables | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Shares used in the calculation of basic earnings per share 14,205 14,070 14,202 14,065 Effect of dilutive securities: Share-based payment awards - 317 - 201 Diluted shares used in the calculation of earnings per share 14,205 14,387 14,202 14,266 |
Note 3 - Business Combination_2
Note 3 - Business Combinations (Details Textual) - USD ($) $ in Thousands | Feb. 03, 2020 | Jan. 24, 2020 | Sep. 30, 2020 | Mar. 31, 2020 | Sep. 30, 2020 | Sep. 30, 2020 | Sep. 30, 2020 | Dec. 31, 2019 |
Finite-Lived Intangible Asset, Useful Life (Year) | 13 years | 11 years | ||||||
Developed Technology Rights [Member] | ||||||||
Finite-Lived Intangible Asset, Useful Life (Year) | 15 years | 15 years | ||||||
Customer Relationships [Member] | ||||||||
Finite-Lived Intangible Asset, Useful Life (Year) | 10 years | |||||||
Trade Names [Member] | ||||||||
Finite-Lived Intangible Asset, Useful Life (Year) | 5 years | |||||||
Parcus Medical [Member] | ||||||||
Business Combination, Consideration Transferred, Total | $ 75,136 | |||||||
Business Combination, Contingent Consideration Arrangements, Change in Range of Outcomes, Contingent Consideration, Liability, Value, High | 60,000 | |||||||
Business Combination, Acquisition Related Costs | $ 1,900 | |||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Inventory | 10,968 | |||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill, Total | 44,000 | |||||||
Business Combination, Pro Forma Information, Revenue of Acquiree since Acquisition Date, Actual | $ 3,300 | $ 7,900 | ||||||
Business Combination, Pro Forma Information, Earnings or Loss of Acquiree since Acquisition Date, Actual | (1,600) | (4,500) | ||||||
Parcus Medical [Member] | Developed Technology Rights [Member] | ||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill, Total | $ 41,100 | |||||||
Finite-Lived Intangible Asset, Useful Life (Year) | 15 years | |||||||
Parcus Medical [Member] | Customer Relationships [Member] | ||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill, Total | $ 1,100 | |||||||
Finite-Lived Intangible Asset, Useful Life (Year) | 10 years | |||||||
Parcus Medical [Member] | Trade Names [Member] | ||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill, Total | $ 1,800 | |||||||
Finite-Lived Intangible Asset, Useful Life (Year) | 5 years | |||||||
Parcus Medical [Member] | Trunk Stock [Member] | ||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Inventory | 1,900 | $ 1,900 | $ 1,900 | $ 1,900 | ||||
Arthrosurface [Member] | ||||||||
Business Combination, Consideration Transferred, Total | $ 90,285 | |||||||
Business Combination, Contingent Consideration Arrangements, Change in Range of Outcomes, Contingent Consideration, Liability, Value, High | 40,000 | |||||||
Business Combination, Acquisition Related Costs | $ 2,200 | |||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Inventory | 15,652 | |||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill, Total | 48,900 | |||||||
Business Combination, Pro Forma Information, Revenue of Acquiree since Acquisition Date, Actual | 7,200 | 15,600 | ||||||
Business Combination, Pro Forma Information, Earnings or Loss of Acquiree since Acquisition Date, Actual | $ (1,600) | $ 8,400 | ||||||
Arthrosurface [Member] | Developed Technology Rights [Member] | ||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill, Total | $ 37,000 | |||||||
Finite-Lived Intangible Asset, Useful Life (Year) | 15 years | |||||||
Arthrosurface [Member] | Customer Relationships [Member] | ||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill, Total | $ 7,900 | |||||||
Finite-Lived Intangible Asset, Useful Life (Year) | 10 years | |||||||
Arthrosurface [Member] | Trade Names [Member] | ||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill, Total | $ 3,400 | |||||||
Finite-Lived Intangible Asset, Useful Life (Year) | 5 years | |||||||
Arthrosurface [Member] | In Process Research and Development [Member] | ||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill, Total | $ 600 |
Note 3 - Business Combination_3
Note 3 - Business Combinations - Consideration Transferred (Details) - USD ($) $ in Thousands | Feb. 03, 2020 | Jan. 24, 2020 |
Parcus Medical [Member] | ||
Cash consideration | $ 32,794 | |
Deferred consideration | 1,642 | |
Estimated fair value of contingent consideration | 40,700 | |
Estimated total purchase consideration | $ 75,136 | |
Arthrosurface [Member] | ||
Cash consideration | $ 61,909 | |
Estimated fair value of contingent consideration | 28,376 | |
Estimated total purchase consideration | $ 90,285 |
Note 3 - Business Combination_4
Note 3 - Business Combinations - Fair Value of Net Assets Acquired (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Feb. 03, 2020 | Jan. 24, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Goodwill | $ 32,419 | $ 7,694 | $ 7,851 | ||
Parcus Medical [Member] | |||||
Cash and cash equivalents | $ 196 | ||||
Accounts receivable | 2,029 | ||||
Inventories | 10,968 | ||||
Prepaid expenses and other current assets | 364 | ||||
Property and equipment, net | 1,099 | ||||
Right-of-use assets | 944 | ||||
Intangible assets | 44,000 | ||||
Accounts payable, accrued expenses and other current liabilities | (2,763) | ||||
Other long-term liabilities | (594) | ||||
Lease liabilities | (735) | ||||
Net assets acquired | 55,508 | ||||
Goodwill | 19,628 | ||||
Estimated total purchase consideration | $ 75,136 | ||||
Arthrosurface [Member] | |||||
Cash and cash equivalents | $ 1,072 | ||||
Accounts receivable | 5,368 | ||||
Inventories | 15,652 | ||||
Prepaid expenses and other current assets | 535 | ||||
Property and equipment, net | 3,394 | ||||
Intangible assets | 48,900 | ||||
Accounts payable, accrued expenses and other current liabilities | (3,929) | ||||
Net assets acquired | 67,393 | ||||
Goodwill | 22,892 | ||||
Estimated total purchase consideration | 90,285 | ||||
Other long-term assets | 7,548 | ||||
Deferred tax liabilities | $ (11,200) | $ (11,147) |
Note 3 - Business Combination_5
Note 3 - Business Combinations - Intangible Assets Acquired (Details) - USD ($) $ in Millions | Feb. 03, 2020 | Jan. 24, 2020 |
Parcus Medical [Member] | ||
Intangible assets | $ 44 | |
Arthrosurface [Member] | ||
Intangible assets | $ 48.9 | |
Developed Technology Rights [Member] | Parcus Medical [Member] | ||
Intangible assets | 41.1 | |
Developed Technology Rights [Member] | Arthrosurface [Member] | ||
Intangible assets | 37 | |
Trade Names [Member] | Parcus Medical [Member] | ||
Intangible assets | 1.8 | |
Trade Names [Member] | Arthrosurface [Member] | ||
Intangible assets | 3.4 | |
Customer Relationships [Member] | Parcus Medical [Member] | ||
Intangible assets | $ 1.1 | |
Customer Relationships [Member] | Arthrosurface [Member] | ||
Intangible assets | 7.9 | |
In Process Research and Development [Member] | Arthrosurface [Member] | ||
Intangible assets | $ 0.6 |
Note 3 - Business Combination_6
Note 3 - Business Combinations - Pro Forma Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Total revenue | $ 31,694 | $ 39,912 | $ 101,722 | $ 115,045 |
Net income (loss) | $ (6,411) | $ 4,909 | $ (7,328) | $ 7,296 |
Note 4 - Fair Value Measureme_3
Note 4 - Fair Value Measurements (Details Textual) $ in Thousands | Oct. 15, 2020USD ($) | Feb. 03, 2020USD ($) | Jan. 24, 2020USD ($) | Sep. 30, 2020USD ($) | Sep. 30, 2019USD ($) | Sep. 30, 2020USD ($) | Sep. 30, 2019USD ($) | Dec. 31, 2019USD ($) |
Certificates of Deposit, at Carrying Value | $ 5,500 | $ 5,500 | ||||||
Business Combination, Contingent Consideration Arrangements, Change in Amount of Contingent Consideration, Liability | 4,150 | $ 0 | (16,176) | $ 0 | ||||
Subsequent Event [Member] | ||||||||
Payment for Contingent Consideration Liability, Financing Activities | $ 5,000 | |||||||
COVID 19 [Member] | ||||||||
Business Combination, Contingent Consideration Arrangements, Change in Amount of Contingent Consideration, Liability | $ 4,200 | (16,200) | ||||||
Parcus Medical and Arthrosurface Acquisitions [Member] | ||||||||
Business Combination, Contingent Consideration Arrangements, Change in Range of Outcomes, Contingent Consideration, Liability, Value, High | $ 100,000 | |||||||
Parcus Medical and Arthrosurface Acquisitions [Member] | Measurement Input, Discount Rate [Member] | Regulatory Earn Out Milestone [Member] | Minimum [Member] | ||||||||
Business Combination, Contingent Consideration, Liability, Measurement Input | 0.020 | 0.020 | ||||||
Parcus Medical and Arthrosurface Acquisitions [Member] | Measurement Input, Discount Rate [Member] | Regulatory Earn Out Milestone [Member] | Maximum [Member] | ||||||||
Business Combination, Contingent Consideration, Liability, Measurement Input | 0.025 | 0.025 | ||||||
Arthrosurface [Member] | ||||||||
Business Combination, Contingent Consideration Arrangements, Change in Range of Outcomes, Contingent Consideration, Liability, Value, High | $ 40,000 | |||||||
Arthrosurface [Member] | Probability of Achievement [Member] | Regulatory Earn Out Milestone [Member] | Minimum [Member] | ||||||||
Business Combination, Contingent Consideration, Liability, Measurement Input | 0.60 | 0.60 | ||||||
Arthrosurface [Member] | Probability of Achievement [Member] | Regulatory Earn Out Milestone [Member] | Maximum [Member] | ||||||||
Business Combination, Contingent Consideration, Liability, Measurement Input | 0.90 | 0.90 | ||||||
Arthrosurface [Member] | Measurement Input, Weighted Average Cost of Capital [Member] | Minimum [Member] | ||||||||
Business Combination, Contingent Consideration, Liability, Measurement Input | 0.115 | 0.115 | ||||||
Arthrosurface [Member] | Measurement Input, Weighted Average Cost of Capital [Member] | Maximum [Member] | ||||||||
Business Combination, Contingent Consideration, Liability, Measurement Input | 0.130 | 0.130 | ||||||
Parcus Medical [Member] | ||||||||
Business Combination, Contingent Consideration Arrangements, Change in Range of Outcomes, Contingent Consideration, Liability, Value, High | $ 60,000 | |||||||
Parcus Medical [Member] | Measurement Input, Weighted Average Cost of Capital [Member] | Minimum [Member] | ||||||||
Business Combination, Contingent Consideration, Liability, Measurement Input | 0.145 | 0.145 | ||||||
Parcus Medical [Member] | Measurement Input, Weighted Average Cost of Capital [Member] | Maximum [Member] | ||||||||
Business Combination, Contingent Consideration, Liability, Measurement Input | 0.150 | 0.150 | ||||||
US Treasury Bill Securities [Member] | ||||||||
Debt Securities, Available-for-sale, Total | $ 15,000 | $ 15,000 | $ 27,500 |
Note 4 - Fair Value Measureme_4
Note 4 - Fair Value Measurements - Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Contingent Consideration - Short Term | $ 11,855 | $ 0 |
Contingent Consideration - Long Term | 41,045 | 0 |
Estimate of Fair Value Measurement [Member] | ||
Investments | 20,542 | |
Contingent Consideration - Short Term | 11,855 | |
Contingent Consideration - Long Term | 41,045 | |
Total Other current and long-term liabilities | 52,900 | |
Estimate of Fair Value Measurement [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Investments | 15,039 | |
Contingent Consideration - Short Term | 0 | |
Contingent Consideration - Long Term | 0 | |
Total Other current and long-term liabilities | 0 | |
Estimate of Fair Value Measurement [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Investments | 5,503 | |
Contingent Consideration - Short Term | 0 | |
Contingent Consideration - Long Term | 0 | |
Total Other current and long-term liabilities | 0 | |
Estimate of Fair Value Measurement [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Investments | 0 | |
Contingent Consideration - Short Term | 11,855 | |
Contingent Consideration - Long Term | 41,045 | |
Total Other current and long-term liabilities | 52,900 | |
Reported Value Measurement [Member] | ||
Investments | 20,646 | |
Contingent Consideration - Short Term | 0 | |
Contingent Consideration - Long Term | 0 | |
Total Other current and long-term liabilities | 0 | |
Money Market Funds [Member] | Estimate of Fair Value Measurement [Member] | ||
Cash equivalents | 56,431 | 48,971 |
Money Market Funds [Member] | Estimate of Fair Value Measurement [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Cash equivalents | 56,431 | 48,971 |
Money Market Funds [Member] | Estimate of Fair Value Measurement [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Cash equivalents | 0 | 0 |
Money Market Funds [Member] | Estimate of Fair Value Measurement [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Cash equivalents | 0 | 0 |
Money Market Funds [Member] | Reported Value Measurement [Member] | ||
Cash equivalents | 56,431 | 48,971 |
Certificates of Deposit [Member] | Estimate of Fair Value Measurement [Member] | ||
Cash equivalents | 5,503 | |
Certificates of Deposit [Member] | Estimate of Fair Value Measurement [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Cash equivalents | 0 | |
Certificates of Deposit [Member] | Estimate of Fair Value Measurement [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Cash equivalents | 5,503 | |
Certificates of Deposit [Member] | Estimate of Fair Value Measurement [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Cash equivalents | 0 | |
Certificates of Deposit [Member] | Reported Value Measurement [Member] | ||
Cash equivalents | 5,516 | |
US Treasury Securities [Member] | Estimate of Fair Value Measurement [Member] | ||
Investments | 15,039 | 27,480 |
US Treasury Securities [Member] | Estimate of Fair Value Measurement [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Investments | 15,039 | 27,480 |
US Treasury Securities [Member] | Estimate of Fair Value Measurement [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Investments | 0 | 0 |
US Treasury Securities [Member] | Estimate of Fair Value Measurement [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Investments | 0 | 0 |
US Treasury Securities [Member] | Reported Value Measurement [Member] | ||
Investments | $ 15,130 | $ 27,479 |
Note 4 - Fair Value Measureme_5
Note 4 - Fair Value Measurements - Contingent Consideration (Details) - Contingent Consideration [Member] $ in Thousands | 9 Months Ended |
Sep. 30, 2020USD ($) | |
Balance, beginning January 1, 2020 | $ 0 |
Additions | 69,076 |
Payments | 0 |
Change in fair value | (16,176) |
Balance, ending September 30, 2020 | $ 52,900 |
Note 5 - Inventories (Details T
Note 5 - Inventories (Details Textual) $ in Millions | Jun. 30, 2020USD ($) |
Inventory Valuation Reserves, Ending Balance | $ 1.9 |
Note 5 - Inventories - Summary
Note 5 - Inventories - Summary of Inventories (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Raw materials | $ 12,973 | $ 12,058 |
Work-in-process | 12,372 | 8,330 |
Finished goods | 35,259 | 8,777 |
Total | 60,604 | 29,165 |
Inventories | 47,882 | 21,995 |
Other long-term assets | $ 12,722 | $ 7,170 |
Note 6 - Intangible Assets (Det
Note 6 - Intangible Assets (Details Textual) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2020 | Mar. 31, 2020 | Sep. 30, 2019 | Jun. 30, 2020 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | |
Amortization of Intangible Assets, Total | $ 1,900 | $ 300 | $ 5,400 | $ 800 | |||
Impairment of Intangible Assets, Finite-lived | $ 1,025 | $ 303 | $ (389) | ||||
Asset Impairment Charges, Total | $ 0 | ||||||
Parcus Medical and Arthrosurface [Member] | |||||||
Finite-lived Intangible Assets Acquired | $ 92,900 | ||||||
Parcus Medical and Arthrosurface [Member] | Selling, General and Administrative Expenses [Member] | |||||||
Impairment of Intangible Assets, Finite-lived | $ 1,000 |
Note 6 - Intangible Assets - Su
Note 6 - Intangible Assets - Summary of Intangible Assets (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | |
Gross value | $ 118,859 | $ 28,206 | |
Accumulated Currency Translation Adjustment | (4,468) | (4,759) | |
Current period impairment charge | (1,025) | $ (303) | 389 |
Accumulated Amortization | (19,075) | (15,473) | |
Net book value | $ 94,291 | $ 7,585 | |
Useful life (Year) | 13 years | 11 years | |
Loss on impairment of intangible asset | $ 1,025 | $ 303 | $ (389) |
In Process Research and Development [Member] | |||
Gross value | 5,006 | 4,406 | |
Accumulated Currency Translation Adjustment | (1,120) | (1,234) | |
Current period impairment charge | 0 | 0 | |
Accumulated Amortization | 0 | 0 | |
Net book value | 3,886 | 3,172 | |
Loss on impairment of intangible asset | 0 | 0 | |
Developed Technology Rights [Member] | |||
Gross value | 93,953 | 17,100 | |
Accumulated Currency Translation Adjustment | (2,766) | (2,934) | |
Current period impairment charge | (1,025) | 389 | |
Accumulated Amortization | (12,919) | (9,657) | |
Net book value | $ 77,243 | $ 4,120 | |
Useful life (Year) | 15 years | 15 years | |
Loss on impairment of intangible asset | $ 1,025 | $ (389) | |
Customer Relationships [Member] | |||
Gross value | 9,000 | ||
Accumulated Currency Translation Adjustment | 0 | ||
Current period impairment charge | 0 | ||
Accumulated Amortization | (568) | ||
Net book value | $ 8,432 | ||
Useful life (Year) | 10 years | ||
Loss on impairment of intangible asset | $ 0 | ||
Distribution Rights [Member] | |||
Gross value | 4,700 | 4,700 | |
Accumulated Currency Translation Adjustment | (415) | (415) | |
Current period impairment charge | 0 | 0 | |
Accumulated Amortization | (4,285) | (4,285) | |
Net book value | $ 0 | $ 0 | |
Useful life (Year) | 5 years | 5 years | |
Loss on impairment of intangible asset | $ 0 | $ 0 | |
Patents [Member] | |||
Gross value | 1,000 | 1,000 | |
Accumulated Currency Translation Adjustment | (167) | (176) | |
Current period impairment charge | 0 | 0 | |
Accumulated Amortization | (602) | (531) | |
Net book value | $ 231 | $ 293 | |
Useful life (Year) | 16 years | 16 years | |
Loss on impairment of intangible asset | $ 0 | $ 0 | |
Elevess Trade Name [Member] | |||
Gross value | 1,000 | ||
Accumulated Currency Translation Adjustment | 0 | ||
Current period impairment charge | 0 | ||
Accumulated Amortization | (1,000) | ||
Net book value | $ 0 | ||
Useful life (Year) | 9 years | ||
Loss on impairment of intangible asset | $ 0 | ||
Trade Names [Member] | |||
Gross value | 5,200 | ||
Accumulated Currency Translation Adjustment | 0 | ||
Current period impairment charge | 0 | ||
Accumulated Amortization | (701) | ||
Net book value | $ 4,499 | ||
Useful life (Year) | 5 years | ||
Loss on impairment of intangible asset | $ 0 |
Note 7 - Goodwill (Details Text
Note 7 - Goodwill (Details Textual) | 9 Months Ended |
Sep. 30, 2020 | |
Number of Reporting Units | 2 |
Note 7 - Goodwill - Changes in
Note 7 - Goodwill - Changes in the Carrying Value of Goodwill (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | |
Balance | $ 7,694 | $ 7,851 | $ 7,851 | ||
Effect of foreign currency adjustments | 349 | (157) | |||
Acquisitions | 42,520 | 0 | |||
Impairment | $ 0 | $ 0 | (18,144) | $ 0 | 0 |
Balance | $ 32,419 | $ 32,419 | $ 7,694 |
Note 8 - Leases - Lease Expense
Note 8 - Leases - Lease Expense and Other Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Amortization of right-of-use assets | $ 50 | $ 0 | $ 136 | $ 0 |
Interest on finance lease liabilities | 7 | 0 | 22 | 0 |
Finance lease expense | 57 | 0 | 158 | 0 |
Operating lease expense | 590 | 525 | 1,759 | 1,568 |
Short-term lease expense | 0 | 0 | 0 | 6 |
Variable lease expense | 67 | 43 | 204 | 155 |
Total lease expense | $ 714 | $ 568 | $ 2,121 | $ 1,729 |
Operating leases (Year) | 15 years 10 months 24 days | 17 years 1 month 6 days | 15 years 10 months 24 days | 17 years 1 month 6 days |
Financing leases (Year) | 3 years 3 months 18 days | 3 years 3 months 18 days | ||
Operating leases | 4.10% | 4.10% | 4.10% | 4.10% |
Financing leases | 5.00% | 0.00% | 5.00% | 0.00% |
Right-of-use assets obtained in exchange for operating lease liabilities as of January 1, 2019 | $ 603 | $ 488 | $ 1,739 | $ 1,482 |
Operating cash flows from financing leases | $ 59 | $ 0 | $ 110 | $ 0 |
Note 8 - Leases - Future Minimu
Note 8 - Leases - Future Minimum Rental Payments for Operating Leases (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
2020 (Remaining 3 months), operating leases | $ 598 | |
2020 (Remaining 6 months), financing leases | 59 | |
2020 (Remaining 3 months) | 657 | |
2021, operating leases | 2,304 | |
2021, financing leases | 170 | |
2021 | 2,474 | |
2022, operating leases | 2,240 | |
2022, financing leases | 166 | |
2022 | 2,406 | |
2023, operating leases | 2,123 | |
2023, financing leases | 160 | |
2023 | 2,283 | |
2024, operating leases | 2,059 | |
2024, financing leases | 44 | |
2024 | 2,103 | |
2025, operating leases | 1,924 | |
Thereafter, operating leases | 19,450 | |
Thereafter, financing leases | 0 | |
Thereafter | 19,450 | |
Present value adjustment, operating leases | (8,103) | |
Present value adjustment, financing leases | (44) | |
Present value adjustment | (8,147) | |
Less current portion included in Accrued expenses and other current liabilities, operating leases | (1,463) | $ (1,141) |
Less current portion included in Accrued expenses and other current liabilities, financing leases | (163) | 0 |
Total lease liabilities, operating leases | 21,132 | $ 21,367 |
Total lease liabilities, financing leases | 391 | |
Total lease liabilities | 21,523 | |
Liabilities [Member] | ||
Present value of lease payments, operating leases | 22,595 | |
Present value of lease payments, financing leases | 555 | |
Present value of lease payments | 23,150 | |
Accrued Expenses and Other Current Liabilities [Member] | ||
Less current portion included in Accrued expenses and other current liabilities, operating leases | (1,463) | |
Less current portion included in Accrued expenses and other current liabilities, financing leases | (164) | |
Less current portion included in accrued expenses and other current liabilities | $ (1,627) |
Note 9 - Accrued Expenses - Sum
Note 9 - Accrued Expenses - Summary of Accrued Expenses (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Compensation and related expenses | $ 6,559 | $ 5,830 |
Professional fees | 2,358 | 3,850 |
Operating lease liability - current | 1,463 | 1,141 |
Clinical trial costs | 910 | 788 |
Current portion of acquisition-related contingent consideration (Note 4) | 11,855 | 0 |
Finance lease liability - current | 163 | 0 |
Other | 1,031 | 836 |
Total | $ 24,339 | $ 12,445 |
Note 10 - Commitments and Con_2
Note 10 - Commitments and Contingencies (Details Textual) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Standard and Extended Product Warranty Accrual, Ending Balance | $ 0 | $ 0 |
Note 11 - Revenue (Details Text
Note 11 - Revenue (Details Textual) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Mitek [Member] | ||||
Revenues From Agreements as Percent of Total Revenue | 48.00% | 71.00% | 52.00% | 70.00% |
Note 11 - Revenue - Product Rev
Note 11 - Revenue - Product Revenue by Product Group (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Revenue | $ 31,694 | $ 29,697 | $ 97,769 | $ 84,838 |
Joint Pain Management Therapies [Member] | ||||
Revenue | 18,439 | 27,581 | 66,168 | 77,063 |
Orthopedic Joint Preservation and Restoration Care [Member] | ||||
Revenue | 11,715 | 544 | 26,233 | 1,510 |
Manufactured Product, Other [Member] | ||||
Revenue | 1,540 | 1,490 | 5,368 | 6,172 |
Product [Member] | ||||
Revenue | $ 31,694 | $ 29,615 | $ 97,769 | $ 84,745 |
Note 11 - Revenue - Total Reven
Note 11 - Revenue - Total Revenue by Geographic Location (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Revenue | $ 31,694 | $ 29,697 | $ 97,769 | $ 84,838 |
Percentage of Revenue | 100.00% | 100.00% | 100.00% | 100.00% |
UNITED STATES | ||||
Revenue | $ 26,409 | $ 23,512 | $ 77,848 | $ 66,538 |
Percentage of Revenue | 84.00% | 79.00% | 80.00% | 78.00% |
Europe [Member] | ||||
Revenue | $ 2,954 | $ 3,943 | $ 11,140 | $ 11,396 |
Percentage of Revenue | 9.00% | 13.00% | 11.00% | 14.00% |
Other Location [Member] | ||||
Revenue | $ 2,331 | $ 2,242 | $ 8,781 | $ 6,904 |
Percentage of Revenue | 7.00% | 8.00% | 9.00% | 8.00% |
Note 12 - Equity Incentive Pl_3
Note 12 - Equity Incentive Plan (Details Textual) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Share-based Compensation, One-time Benefit for Unexpected Death of Former President | $ 1,800 | |||||
Share-based Payment Arrangement, Expense | $ 1,920 | $ 1,311 | $ 3,954 | $ 4,140 | ||
Stock Options, PSUs and RSUs to Employees and RSUs to Non-employee Directors [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period (Year) | 3 years | |||||
Performance Shares [Member] | ||||||
Performance Conditions, Business Target, Percentage of Performance Conditions Based on Achievement in Current Fiscal Year | 40.00% | |||||
Performance Conditions, Financial Target, Percentage of Performance Conditions Based on Company’s Operating Results in next Fiscal Year | 60.00% | |||||
Share-based Payment Arrangement, Expense | 200 | |||||
Performance Shares [Member] | Maximum [Member] | ||||||
Share-based Payment Arrangement, Expense | $ 100 | |||||
Total Shareholder Return ("TSRs") Options [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period (Year) | 2 years 8 months 12 days | |||||
Share-based Payment Arrangement, Expense | $ 200 | $ 400 | ||||
Total Shareholder Return ("TSRs") Options [Member] | President and Chief Executive Officer [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Net of Forfeitures, Total (in shares) | 104,638 | |||||
Total Shareholder Return ("TSRs") Options [Member] | Maximum [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Percentage of Target Number | 150.00% | |||||
Total Shareholder Return ("TSRs") Options [Member] | Minimum [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Percentage of Target Number | 0.00% |
Note 12 - Equity Incentive Pl_4
Note 12 - Equity Incentive Plan - Assumptions Used to Estimate Fair Value of Stock Options and Stock Appreciation Rights (Details) | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Expected life (years) (Year) | 3 years 6 months | |
Expected dividend yield | 0.00% | 0.00% |
Minimum [Member] | ||
Risk free interest rate | 0.21% | 1.41% |
Expected volatility | 46.48% | 44.27% |
Expected life (years) (Year) | 4 years | |
Maximum [Member] | ||
Risk free interest rate | 1.59% | 2.54% |
Expected volatility | 52.99% | 46.21% |
Expected life (years) (Year) | 6 years 3 months 18 days |
Note 12 - Equity Incentive Pl_5
Note 12 - Equity Incentive Plan - Total Stock-based Compensation Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Stock-based compensation expense | $ 1,920 | $ 1,311 | $ 3,954 | $ 4,140 |
Cost of Sales [Member] | ||||
Stock-based compensation expense | 202 | 114 | 564 | 288 |
Research and Development Expense [Member] | ||||
Stock-based compensation expense | 206 | 50 | 558 | 318 |
Selling, General and Administrative Expenses [Member] | ||||
Stock-based compensation expense | $ 1,512 | $ 1,147 | $ 2,832 | $ 3,534 |
Note 12 - Equity Incentive Pl_6
Note 12 - Equity Incentive Plan - Granted and Exercised Stock-based Compensation Awards (Details) - shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Share-based Payment Arrangement, Option [Member] | ||||
Grants (in shares) | 85,345 | 87,250 | 402,558 | 218,867 |
Exercises (in shares) | 0 | 488,586 | 2,146 | 511,486 |
Forfeitures (in shares) | 32,629 | 42,566 | 86,732 | 81,638 |
Expirations (in shares) | 3,083 | 25,697 | 3,646 | 44,829 |
Restricted Stock Units (RSUs) [Member] | ||||
Grants (in shares) | 34,697 | 9,000 | 218,804 | 185,507 |
Forfeitures (in shares) | 17,937 | 7,500 | 90,103 | 19,100 |
Performance Restricted Stock Units [Member] | ||||
Grants (in shares) | 16,077 | 9,000 | 162,297 | 123,500 |
Forfeitures (in shares) | 19,000 | 4,500 | 90,000 | 13,500 |
Total Shareholder Return ("TSRs") Options [Member] | ||||
Grants (in shares) | 0 | 0 | 104,638 | 0 |
Restricted Stock [Member] | ||||
Forfeitures (in shares) | 0 | 1,975 | 8,574 | 12,533 |
Note 13 - Earnings Per Share _3
Note 13 - Earnings Per Share ("EPS") (Details Textual) - shares shares in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Share-based Payment Arrangement, Option [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount (in shares) | 1 | 0.4 | 0.8 | 0.7 |
Note 13 - Earnings Per Share _4
Note 13 - Earnings Per Share ("EPS") - Basic and Diluted Earnings Per Share (Details) - shares shares in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Basic weighted average common shares outstanding (in shares) | 14,205 | 14,070 | 14,202 | 14,065 |
Share-based payment awards (in shares) | 0 | 317 | 0 | 201 |
Diluted shares used in the calculation of earnings per share (in shares) | 14,205 | 14,387 | 14,202 | 14,266 |
Note 14 - Accelerated Share R_2
Note 14 - Accelerated Share Repurchase (Details Textual) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | Jan. 14, 2020 | May 07, 2019 | May 02, 2019 |
Stock Repurchase Program, Authorized Amount | $ 50 | ||
Accelerated Stock Repurchase [Member] | |||
Stock Repurchase Program, Authorized Amount | $ 30 | 30 | |
Accelerated Stock Repurchase [Member] | Morgan Stanley & Co., LLC [Member] | |||
Stock Repurchased and Retired During Period, Shares (in shares) | 0.6 | ||
Accelerated Share Repurchases, Final Price Paid Per Share (in dollars per share) | $ 50.78 | ||
Repurchase from Open Market [Member] | |||
Stock Repurchase Program, Authorized Amount | $ 20 |
Note 15 - Income Taxes (Details
Note 15 - Income Taxes (Details Textual) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Feb. 03, 2020 | |
Income Tax Expense (Benefit), Total | $ (1,744) | $ 3,331 | $ (2,161) | $ 7,817 | |
Effective Income Tax Rate Reconciliation, Percent, Total | 21.40% | 26.60% | 20.60% | 25.30% | |
Effective Income Tax Rate Reconciliation, Nondeductible Expense, Impairment Losses, Amount | $ 1,900 | $ 1,900 | |||
Effective Income Tax Rate Reconciliation,Change in Fair Value of Business Acquisition Contingent Consideration Liabilities, Amount | 1,500 | 1,500 | |||
Deferred Tax Assets, Valuation Allowance, Total | 500 | 500 | |||
Arthrosurface [Member] | |||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Deferred Tax Liabilities | $ 11,200 | $ 11,200 | $ 11,147 |
Note 16 - Revolving Credit Ag_2
Note 16 - Revolving Credit Agreement (Details Textual) - Revolving Credit Facility [Member] - USD ($) $ in Thousands | Apr. 08, 2020 | Oct. 24, 2017 | Sep. 30, 2020 | Sep. 30, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Proceeds from Long-term Lines of Credit | $ 50,000 | |||||
Debt Instrument, Interest Rate, Stated Percentage | 2.08% | |||||
Interest Expense, Debt, Total | $ 300 | $ 500 | ||||
Repayments of Lines of Credit | 25,000 | |||||
Long-term Line of Credit, Total | $ 25,000 | $ 25,000 | $ 0 | $ 0 | ||
Debt Instrument, Term (Year) | 5 years | |||||
Line of Credit Facility, Current Borrowing Capacity | $ 50,000 | |||||
Line of Credit Facility, Additional Borrowing Capacity | 50,000 | |||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 100,000 | |||||
Line of Credit Facility, Commitment Fee Percentage | 0.25% | |||||
Minimum [Member] | ||||||
Debt Instrument, Basis Spread on Variable Rate | 0.25% | |||||
Maximum [Member] | ||||||
Debt Instrument, Basis Spread on Variable Rate | 1.75% | |||||
Fed Funds Effective Rate Overnight Index Swap Rate [Member] | ||||||
Debt Instrument, Basis Spread on Variable Rate | 0.50% | |||||
London Interbank Offered Rate (LIBOR) [Member] | ||||||
Debt Instrument, Basis Spread on Variable Rate | 1.00% |
Note 17 - Subsequent Events (De
Note 17 - Subsequent Events (Details Textual) $ in Millions | Oct. 15, 2020USD ($) |
Subsequent Event [Member] | |
Payment for Contingent Consideration Liability, Financing Activities | $ 5 |