Document And Entity Information
Document And Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Mar. 08, 2023 | Jun. 30, 2022 | |
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 | FY | ||
Document Fiscal Year Focus | 2022 | ||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2022 | ||
Document Transition Report | false | ||
Entity File Number | 001-14027 | ||
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 Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity Public Float | $ 321,805,229 | ||
Entity Common Stock, Shares Outstanding | 14,632,910 | ||
Auditor Firm ID | 34 | ||
Auditor Name | Deloitte & Touche LLP | ||
Auditor Location | Boston, Massachusetts |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Current assets: | ||
Cash and cash equivalents | $ 86,327 | $ 94,386 |
Accounts receivable, net | 34,627 | 29,843 |
Inventories | 39,765 | 36,010 |
Prepaid expenses and other current assets | 8,828 | 8,289 |
Total current assets | 169,547 | 168,528 |
Property and equipment, net | 48,279 | 47,602 |
Right-of-use assets | 30,696 | 20,957 |
Other long-term assets | 17,219 | 20,285 |
Deferred tax assets | 1,449 | 0 |
Intangible assets, net | 74,599 | 82,382 |
Goodwill | 7,339 | 7,781 |
Total assets | 349,128 | 347,535 |
Current liabilities: | ||
Accounts payable | 9,074 | 7,633 |
Accrued expenses and other current liabilities | 18,840 | 17,847 |
Contingent consideration | 0 | 4,315 |
Total current liabilities | 27,914 | 29,795 |
Other long-term liabilities | 398 | 1,258 |
Deferred tax liability | 6,436 | 10,157 |
Lease liabilities | 28,817 | 19,240 |
Commitments and contingencies (Note 12) | ||
Stockholders’ equity: | ||
Preferred stock, $0.01 par value; 1,250 shares authorized, no shares issued and outstanding at December 31, 2022 and 2021, respectively | 0 | 0 |
Common stock, $.01 par value; 90,000 shares authorized, 14,625 and 14,441 shares issued and outstanding at December 31, 2022 and 2021, respectively | 146 | 144 |
Additional paid-in-capital | 81,141 | 67,081 |
Accumulated other comprehensive loss | (6,443) | (5,718) |
Retained earnings | 210,719 | 225,578 |
Total stockholders’ equity | 285,563 | 287,085 |
Total liabilities and stockholders’ equity | $ 349,128 | $ 347,535 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parentheticals) - $ / shares shares in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
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 | 90,000 |
Common stock, shares issued (in shares) | 14,625 | 14,441 |
Common stock, shares outstanding (in shares) | 14,625 | 14,441 |
Consolidated Statements of Oper
Consolidated Statements of Operations and Comprehensive Income (Loss) - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Revenue | $ 156,236 | $ 147,794 | $ 130,457 |
Cost of revenue | 62,660 | 64,851 | 61,431 |
Gross profit | 93,576 | 82,943 | 69,026 |
Operating expenses: | |||
Research & development | 28,182 | 27,327 | 23,431 |
Selling, general & administrative | 84,794 | 74,096 | 60,063 |
Goodwill impairment charge | 0 | 0 | 42,520 |
Change in fair value of contingent consideration | 0 | (21,095) | (28,666) |
Total operating expenses | 112,976 | 80,328 | 97,348 |
(Loss) income from operations | (19,400) | 2,615 | (28,322) |
Interest and other income (expense) , net | 654 | (188) | (302) |
(Loss) income before income taxes | (18,746) | 2,427 | (28,624) |
Benefit from for income taxes | (3,887) | (1,707) | (4,642) |
Net (loss) income | $ (14,859) | $ 4,134 | $ (23,982) |
Basic (in dollars per share) | $ (1.02) | $ 0.29 | $ (1.69) |
Diluted (in dollars per share) | $ (1.02) | $ 0.28 | $ (1.69) |
Basic (in shares) | 14,561 | 14,401 | 14,222 |
Diluted (in shares) | 14,561 | 14,634 | 14,222 |
Net (loss) income | $ (14,859) | $ 4,134 | $ (23,982) |
Foreign currency translation adjustment | (725) | (1,176) | 1,356 |
Comprehensive (loss) income | $ (15,584) | $ 2,958 | $ (22,626) |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) shares in Thousands | Restricted Stock Units (RSUs) [Member] Common Stock [Member] | Restricted Stock Units (RSUs) [Member] Additional Paid-in Capital [Member] | Restricted Stock Units (RSUs) [Member] Retained Earnings [Member] | Restricted Stock Units (RSUs) [Member] AOCI Attributable to Parent [Member] | Restricted Stock Units (RSUs) [Member] | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | AOCI Attributable to Parent [Member] | Total |
Balance (in shares) at Dec. 31, 2019 | 14,308 | |||||||||
Balance at Dec. 31, 2019 | $ 143,000 | $ 48,707,000 | $ 245,426,000 | $ (5,898,000) | $ 288,378,000 | |||||
Issuance of common stock for equity awards (in shares) | 123 | |||||||||
Issuance of common stock for equity awards | $ 1,000 | 1,523,000 | 0 | 0 | 1,524,000 | |||||
Vesting of restricted stock units (in shares) | 54 | |||||||||
Vesting of restricted stock units | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | |||||
Forfeiture of restricted stock awards (in shares) | (9) | |||||||||
Forfeiture of restricted stock awards | $ 0 | 0 | 0 | 0 | 0 | |||||
Stock-based compensation expense | $ 0 | 5,386,000 | 0 | 0 | 5,386,000 | |||||
Retirement of common stock for minimum tax withholdings (in shares) | (8) | |||||||||
Retirement of common stock for minimum tax withholdings | $ 0 | (262,000) | 0 | 0 | (262,000) | |||||
Repurchase of common stock (in shares) | (139) | |||||||||
Repurchase of common stock | $ (1,000) | 1,000 | 0 | 0 | 0 | |||||
Net (loss) income | 0 | 0 | (23,982,000) | 0 | (23,982,000) | |||||
Other comprehensive income (loss) | $ 0 | 0 | 0 | 1,356,000 | 1,356,000 | |||||
Balance (in shares) at Dec. 31, 2020 | 14,329 | |||||||||
Balance at Dec. 31, 2020 | $ 143,000 | 55,355,000 | 221,444,000 | (4,542) | 272,400,000 | |||||
Issuance of common stock for equity awards (in shares) | 32 | |||||||||
Issuance of common stock for equity awards | $ 0 | 1,128,000 | 0 | 0 | 1,128,000 | |||||
Vesting of restricted stock units (in shares) | 92 | |||||||||
Vesting of restricted stock units | $ 1,000 | (1,000) | 0 | 0 | 0 | |||||
Stock-based compensation expense | $ 0 | 11,085,000 | 0 | 0 | 11,085,000 | |||||
Retirement of common stock for minimum tax withholdings (in shares) | (12) | |||||||||
Retirement of common stock for minimum tax withholdings | $ 0 | (486,000) | 0 | 0 | (486,000) | |||||
Net (loss) income | 0 | 0 | 4,134,000 | 0 | 4,134,000 | |||||
Other comprehensive income (loss) | $ 0 | 0 | 0 | (1,176,000) | (1,176,000) | |||||
Balance (in shares) at Dec. 31, 2021 | 14,441 | |||||||||
Balance at Dec. 31, 2021 | $ 144,000 | 67,081,000 | 225,578,000 | (5,718,000) | 287,085,000 | |||||
Issuance of common stock for equity awards | $ 0 | 16,000 | 0 | 0 | 16,000 | |||||
Vesting of restricted stock units (in shares) | 184 | |||||||||
Vesting of restricted stock units | $ 2,000 | (2,000) | 0 | 0 | 0 | |||||
Stock-based compensation expense | 0 | 14,315,000 | 0 | 0 | 14,315,000 | |||||
Retirement of common stock for minimum tax withholdings | 0 | (934,000) | 0 | 0 | (934,000) | |||||
Net (loss) income | 0 | 0 | (14,859,000) | 0 | (14,859,000) | |||||
Other comprehensive income (loss) | 0 | 0 | 0 | (725,000) | (725,000) | |||||
Issuance of common stock from employee purchase plan | $ 0 | 665,000 | 0 | 0 | 665,000 | |||||
Balance (in shares) at Dec. 31, 2022 | 14,625 | |||||||||
Balance at Dec. 31, 2022 | $ 146,000 | $ 81,141,000 | $ 210,719,000 | $ (6,443,000) | $ 285,563,000 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Cash flows from operating activities: | |||
Net (loss) income | $ (14,859,000) | $ 4,134,000 | $ (23,982,000) |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||
Depreciation | 6,704,000 | 6,480,000 | 6,083,000 |
Amortization of acquisition related intangible assets | 7,783,000 | 7,837,000 | 7,381,000 |
Amortization of acquisition related inventory step-up | 0 | 6,465,000 | 11,082,000 |
Non-cash operating lease cost | 1,850,000 | 1,708,000 | 1,531 |
Goodwill impairment charge | 0 | 0 | 42,520,000 |
Change in fair value of contingent consideration | 0 | (21,095,000) | (28,666,000) |
Loss on disposal of fixed assets | 0 | 993,000 | 265,000 |
Loss on impairment of intangible asset | 0 | 600,000 | 2,439,000 |
Stock-based compensation expense | 14,315,000 | 11,085,000 | 5,386,000 |
Deferred income taxes | (5,270,000) | (1,766,000) | (3,543,000) |
Provision for doubtful accounts | 378,000 | 64,000 | 549,000 |
Provision for inventory | 5,329,000 | 6,628,000 | 5,490,000 |
Other | 0 | (18,000) | (12,000) |
Changes in operating assets and liabilities: | |||
Accounts receivable | (5,630,000) | (6,216) | 5,855,000 |
Inventories | (6,873,000) | (6,619,000) | (14,177,000) |
Prepaid expenses, other current and long-term assets | (792,000) | 1,424,000 | (1,783,000) |
Accounts payable | 1,965,000 | (1,100,000) | 822,000 |
Operating lease liabilities | (1,485,000) | (1,626,000) | (1,439,000) |
Accrued expenses, other current and long-term liabilities | (443,000) | 3,510,000 | (142,000) |
Income taxes | 1,437,000 | (1,311,000) | (2,072,000) |
Payments of contingent consideration | 0 | (2,780,000) | (522,000) |
Net cash provided by operating activities | 4,409,000 | 8,397,000 | 13,065,000 |
Cash flows from investing activities: | |||
Acquisition of Parcus Medical and Arthrosurface, net of cash acquired | 0 | (476,000) | (94,601,000) |
Proceeds from maturities of investments | 0 | 2,501,000 | 45,000,000 |
Purchases of investments | 0 | 0 | (20,035) |
Purchases of property and equipment | (7,486,000) | (5,143,000) | (1,628,000) |
Net cash (used in) provided by investing activities | (7,486,000) | (3,118,000) | (71,264,000) |
Cash flows from financing activities: | |||
Payments made on finance leases | (284,000) | (201,000) | (208,000) |
Proceeds from long-term debt | 0 | 0 | 50,000,000 |
Repayments of long-term debt | 0 | 0 | (50,350,000) |
Proceeds from employee stock purchase program | 665,000 | 0 | 0 |
Cash paid for tax withheld on vested restricted stock awards | (934,000) | (486,000) | (262,000) |
Proceeds from exercises of equity awards | 16,000 | 1,128,000 | 1,524,000 |
Payments of contingent consideration | (4,315,000) | (7,220,000) | (4,478,000) |
Net cash used by financing activities | (4,852,000) | (6,779,000) | (3,774,000) |
Exchange rate impact on cash | (130,000) | 69,000 | 327,000 |
Decrease in cash and cash equivalents | (8,059,000) | (1,431,000) | (61,646,000) |
Cash and cash equivalents at beginning of period | 94,386,000 | 95,817,000 | 157,463,000 |
Cash and cash equivalents at end of period | 86,327,000 | 94,386,000 | 95,817,000 |
Supplemental disclosure of cash flow information: | |||
Cash paid for income taxes, net of refunds | 106,000 | 1,233,000 | 993,000 |
Right-of-use assets obtained in exchange for operating lease liabilities | 2,471,000 | 2,392,000 | |
Purchases of property and equipment included in accounts payable and accrued expenses | 108,000 | 15,000 | 17,000 |
Consideration for acquisitions included in accounts payable and accrued expenses | 0 | 0 | 476,000 |
Contingent consideration fair value on acquisition date | 0 | 0 | 69,076,000 |
Accounting Standards Update 2016-02 [Member] | |||
Supplemental disclosure of cash flow information: | |||
Right-of-use assets obtained in exchange for operating lease liabilities | $ 11,703,000 | $ 220,000 | $ 0 |
Note 1 - Nature of Business
Note 1 - Nature of Business | 12 Months Ended |
Dec. 31, 2022 | |
Notes to Financial Statements | |
Nature of Operations [Text Block] | 1. 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 (“OA”) pain management, regenerative solutions, sports medicine and bone preserving joint solutions. In early 2020, 30 The Company is subject to risks common to companies in the life sciences industry including, but not Since the global COVID pandemic began in 2020, |
Note 2 - Summary of Significant
Note 2 - Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2022 | |
Notes to Financial Statements | |
Significant Accounting Policies [Text Block] | 2. Use of Estimates The preparation of financial statements in conformity with generally accepted accounting principles in the United States of America (“US GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Principles of Consolidation The accompanying consolidated financial statements include the accounts of Anika Therapeutics, Inc. and its wholly owned subsidiaries, Anika Securities, Inc., Anika Therapeutics S.r.l. (“Anika S.r.l.”), Anika Therapeutics Limited, Parcus Medical and Arthrosurface. All intercompany balances and transactions have been eliminated in consolidation. Foreign Currency Translation The functional currency of Anika S.r.l. is the Euro, and the functional currency of Anika Therapeutics Limited is the British Pound Sterling. Assets and liabilities of the foreign subsidiaries are translated using the exchange rate existing on each respective balance sheet date. Revenues and expenses are translated using the average exchange rates for the period. The translation adjustments resulting from this process are included in stockholders’ equity as a component of accumulated other comprehensive income (loss) which resulted in a gain (loss) from foreign currency translation of ($0.7) million, ($1.2) million, and $1.3 million for the years ended December 31, 2022, 2021, 2020, Gains and losses resulting from foreign currency transactions are recognized in the consolidated statements of operations. Recorded balances that are denominated in a currency other than the functional currency are remeasured to the functional currency using the exchange rate at the balance sheet date and gains or losses are recorded in the statements of operations. The Company recognized a gain (loss) from foreign currency transactions of ($0.5) million, ($0.4) million, and $0.3 million during the years ended December 31, 2022, 2021, 2020, Accounts Receivable The Company estimates an allowance for credit losses with its accounts receivable resulting from the inability of its customers to make required payments, which is included in selling, general and administrative expenses in the accompanying consolidated statements of operations. In determining the adequacy of the allowance, management specifically analyzes individual accounts receivable, historical bad debts, customer concentrations, customer creditworthiness, current and reasonable and supportable forecasts of future economic conditions, accounts receivable aging trends, and changes in the Company’s customer payment terms. The components of the Company’s accounts receivables are as follows: As of December 31, 2022 2021 Accounts Receivable $ 36,235 $ 31,285 Allowance for credit losses 1,608 1,442 Net balance, end of the year 34,627 29,843 A summary of activity in the allowance for credit losses is as follows: As of December 31, 2022 2021 2020 Balance, beginning of the year $ 1,442 $ 1,523 $ 962 Amounts provided 554 156 635 Amounts recovered (180 ) (92 ) (86 ) Amounts written off (158 ) (73 ) (78 ) Translation adjustments (50 ) (72 ) 90 Balance, end of the year $ 1,608 $ 1,442 $ 1,523 Revenue Recognition Pursuant to Accounting Standard Codification 606, Revenue from Contracts with Customers 606” five Revenue The Company generates sales principally through three For commercial partnership sales, the Company sells its products directly to these partners, who perform most of the downstream sales and marketing activities to customers and end-users. These arrangements may December 31, 2022, 2021 2020 2016 no may not not For sales to hospitals and ASCs, which generally pairs in-house sales representatives with local or regional distributors, the inventory is generally consigned so that products are available when needed for surgical procedures. No For distributor sales, the Company sells its products principally to distributors, generally outside the United States, who 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 insignificant. The Company sells to a diversified base of distributors and, therefore, believes there is no The Company’s payment terms are consistent with prevailing practice in the respective markets in which the Company does business. Most of the Company’s customers make payments based on contract terms, which are not one Some of the Company’s distributor agreements have volume-based discounts with tiered pricing which 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 prospective discounts or free-of-charge sample units are considered material rights, these would be separate performance obligations and a portion of the sales transaction price is allocated to the material right. Revenue allocated to the material right is recognized when the additional goods are transferred to the customer or when the option expires. During 2022 2021, not 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 December 31, 2022 2021, Generally, customer contracts contain Free on Board (“FOB”) or Ex-Works 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 revenue when control over the products has transferred to the customer. Value-add and other taxes collected by the Company concurrently with revenue-producing activities are excluded from revenue. The Company’s general product warranty does not not one 340 40 25 4. Licensing, Milestone and Contract Revenue The agreements with Mitek include variable consideration such as contingent development and regulatory milestones. Since 2016, no not Cash and Cash Equivalents The Company considers only those investments which are highly liquid, readily convertible to cash, and that mature within 90 Investments All of the Company’s investments are classified as available-for-sale which consist of U.S. treasury bills and are carried at fair value with unrealized gains and losses recorded as a component of accumulated other comprehensive income (loss), net of related income taxes. For securities sold prior to maturity, the cost of securities sold is based on the specific identification method. Realized gains and losses on the sale of investments are recorded in interest and other income, net. Interest is recorded when earned. Investments with original maturities greater than approximately three one one December 31, 2022 December 31, 2021. All of the Company’s investments are subject to a periodic impairment review. For available-for-sale debt securities in an unrealized loss position, the Company first not Any impairment that has not During the years ended December 31, 2022, 2021 2020, not not not Concentration of Credit Risk The Company has no two The Company, by policy, routinely assesses the financial strength of its customers. As a result, the Company believes that its accounts receivable credit risk exposure is limited. As of December 31, 2022 2021, No 10% Inventories Inventories are primarily stated at the lower of standard cost and net realizable value, with cost determined using the first first The Company’s policy is to write down inventory when conditions exist that suggest inventory may not When recorded, inventory write-downs are intended to reduce the carrying value of inventory to its net realizable value. If actual demand for the Company’s products deteriorates, or if market conditions are less favorable than those projected, additional inventory write-downs may one Leases At the inception of an arrangement, the Company determines whether the arrangement is or contains a lease based on the circumstances present and evaluates whether the lease is an operating lease or a finance lease at the commencement date. Operating and finance leases with a term greater than one not not not not may Property and Equipment Property and equipment are recorded at cost and depreciated using the straight-line method over their estimated useful lives, which are typically: Asset Estimated useful life (in years) Computer equipment and software 3 - 10 Furniture and fixtures 5 - 7 Equipment 5 - 20 Leasehold improvements Shorter of useful life or term of lease Maintenance and repairs are charged to expense when incurred; additions and improvements are capitalized. Fully depreciated assets are retained in the accounts until they are no no Construction-in-process assets are stated at cost, which includes the cost of construction and other direct costs attributable to the construction. Construction-in-process assets are not Goodwill and IPR&D Assets Goodwill is the amount by which the purchase price of acquired net assets in a business combination exceeded the fair values of net identifiable assets on the date of acquisition. Acquired In-Process Research and Development (“IPR&D”) represents the fair value assigned to research and development assets that the Company acquires that have not Goodwill and IPR&D are not one 2020 Under U.S. GAAP, the Company has the option to perform a qualitative assessment to determine if it is necessary to perform the impairment test. If the Company concludes, based on a qualitative assessment, it is not not not To conduct quantitative impairment tests of goodwill, the fair value of the reporting unit is compared to its carrying value. If the reporting unit’s carrying value exceeds its fair value, the Company records an impairment loss to the extent that the carrying value of goodwill exceeds its implied fair value, not December 31, 2020. 8, Goodwill The Company performed a qualitative annual assessment for impairment of the remaining goodwill with respect to legacy Anika reporting unit as of November 30, 2022, not not not November 30, 2022. To conduct impairment tests of IPR&D, the fair value of the IPR&D project is compared to its carrying value. If the carrying value exceeds its fair value, the Company records an impairment loss to the extent that the carrying value of the IPR&D project exceeds its fair value. The Company estimates the fair value for IPR&D using the income approach, which is based on the Multi-Period Excess Earnings Method (“MPEEM”). MPEEM measures economic benefit indirectly by calculating the income attributable to an asset after appropriate returns are paid to complementary assets used in conjunction with the subject asset to produce the earnings associated with the subject asset, commonly referred to as contributory asset charges. This approach incorporates significant estimates and assumptions related to the forecasted results including revenues, expenses, expected economic life of the asset, contributory asset charges and discount rates to estimate future cash flows. Long-Lived Assets Long-lived assets primarily include property and equipment and intangible assets with finite lives. The Company’s intangible assets are comprised of purchased developed technologies, patents, trade names, customer relationships and distributor relationships. These intangible assets are carried at cost, net of accumulated amortization. Amortization is recorded on a straight-line basis over the intangible assets' useful lives, which range from approximately five sixteen may not no In determining the useful lives of intangible assets, the Company considers the expected use of the assets and the effects of obsolescence, demand, competition, anticipated technological advances, changes in surgical techniques, market influences and other economic factors. For technology-based intangible assets, the Company considers the expected life cycles of products, absent unforeseen technological advances, which incorporate the corresponding technology. Fair Value Measurements Fair value is defined as the price that would be received from selling an asset, or paid to transfer a liability, in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities required to be recorded at fair value, the Company considers the principal or most advantageous market in which it would transact and considers assumptions that market participants would use when pricing the asset or liability, such as inherent risk, transfer restrictions, and risk of non-performance. The accounting standard establishes a fair value hierarchy that requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. A financial instrument’s categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. Three levels of inputs that may • Level 1 1 • Level 2 not • Level 3 not The Company’s financial assets have been classified as Level 1. third 3. 4 Fair Value Measurements third Research and Development Research and development costs consist primarily of salaries and related expenses for personnel, clinical trial expenses and fees paid to outside consultants and outside service providers. Research and development costs are expensed as incurred. Stock-Based Compensation The Company has stock-based compensation plans under which it grants various types of equity-based awards, the cost of which is based on the grant-date fair value of the underlying award and recognized over the period during which an employee is required to provide service in exchange for the award, which is generally the vesting period. For performance-equity awards with market-based conditions, compensation cost is measured at the date of the award and is recorded over the vesting period, regardless of the likelihood of achievement of the market-based performance criteria. For performance-based equity awards with financial and business milestone achievement targets, compensation cost is based on the probable outcome of the performance conditions. Changes to the probability assessment and the estimated shares expected to vest will result in adjustments to the related stock-based compensation expense that will be recorded in the period of the change. If the performance targets are not no See Note 14, Equity Incentive Plan Income Taxes We account for income taxes under the asset and liability method, which requires the recognition of deferred tax assets, or DTAs, and deferred tax liabilities, or DTLs, for the expected future tax consequences of events that have been included in the financial statements. Under this method, we determine DTAs and DTLs based on the differences between the financial statement and tax bases of assets and liabilities by using enacted tax rates in effect for the year in which the differences are expected to reverse. The effect of a change in tax rates on DTAs and DTLs is recognized in income in the period that includes the enactment date. We recognize DTAs to the extent that we believe that these assets are more likely than not We record uncertain tax positions in accordance with ASC 740, Income Taxes two 1 not 2 not 50 Comprehensive Income (Loss) Comprehensive income (loss) consists of net income (loss) and other comprehensive income (loss), which includes foreign currency translation adjustments. For the purposes of comprehensive income (loss) disclosures, the Company does not 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 as of December 31, 2022. 280, Segment Reportin one Contingencies In the normal course of business, the Company is involved from time-to-time in various legal proceedings and other matters such as contractual disputes, which are complex in nature and have outcomes that are difficult to predict. The Company records accruals for loss contingencies to the extent that it concludes that it is probable that a liability has been incurred and the amount of the related loss can be reasonably estimated. The Company considers all relevant factors when making assessments regarding these contingencies. Although the outcomes of any potential legal proceedings are inherently difficult to predict, the Company does not Recent Issued Accounting Pronouncements No |
Note 3 - Business Combinations
Note 3 - Business Combinations | 12 Months Ended |
Dec. 31, 2022 | |
Notes to Financial Statements | |
Business Combination Disclosure [Text Block] | 3. 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, Business Combinations 805” 805, 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, as of January 24, 2020 Cash consideration $ 32,794 Deferred consideration 1,642 Estimated fair value of contingent consideration 40,700 Estimated total purchase consideration $ 75,136 Pursuant to the Parcus Medical Merger Agreement, contingent consideration represents additional payments that the Company may 2020 2022. The fair value of contingent consideration related to net sales as of January 24, 2020 one three September 30, 2022, 2021 December 31, 2021. December 31, 2022, no Acquisition-related costs are not three March 31, 2020. Fair Value of Net Assets Acquired The estimate of fair value as of the acquisition date required the use of significant assumptions and estimates. Critical estimates included, but were not may The allocation of purchase price to the identifiable assets acquired and liabilities assumed was based on 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 The acquired intangible assets based on estimates of fair value as of January 24, 2020 Developed technology $ 41,100 Trade name 1,800 Customer relationships 1,100 Total acquired intangible assets $ 44,000 The 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 flows attributable to the asset, after charges for other assets employed by the business. The 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 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 fair value of developed technology will be amortized over a useful life of 15 years, the fair value of customer relationships over 10 years, and the fair value of the trade name over 5 years. The excess of the purchase price over the fair value of the net assets acquired was recorded as goodwill and assigned to the 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 8, Goodwill 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, 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, as of February 3, 2020 Cash consideration $ 61,909 Estimated fair value of contingent consideration 28,376 Estimated total purchase consideration $ 90,285 Pursuant to the Arthrosurface Merger Agreement, the Company could be required to make future payments of up to $40.0 million depending on the achievement of regulatory milestones and the level of net sales of Arthrosurface products from 2020 2021. February 3, 2020 February 3, 2020 October 2020 July 2021 two December 31, 2022, no Acquisition-related costs are not three March 31, 2020. Fair Value of Net Assets Acquired The estimate of fair value required the use of significant assumptions and estimates. Critical estimates included, but were not may The allocation of purchase price to the identifiable assets acquired and liabilities assumed was based on 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 Intangible assets acquired consist of: Developed technology $ 37,000 Trade name 3,400 Customer relationships 7,900 IPR&D 600 Total acquired intangible assets $ 48,900 The 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 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 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 fair value of developed technology that will be amortized over an estimated useful life of 15 years, the fair value of customer relationships over 10 years, and the fair value of trade names over 5 years. A total of $0.6 million represents the fair value of IPR&D with an indefinite useful life which was impaired during the quarter ended December 31, 2021. 7, Acquired Intangible Assets, Net, . 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 8, Goodwill Pro forma Information The Parcus Medical and Arthrosurface acquisitions were both completed in the first 2020. The unaudited pro forma information for the year ended December 31, 2020 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 revenue based on the preliminary inventory step-up 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 Medical 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 effective 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: Year Ended December 31, 2020 Total revenue $ 134,410 Net loss $ (22,984 ) |
Note 4 - Fair Value Measurement
Note 4 - Fair Value Measurements | 12 Months Ended |
Dec. 31, 2022 | |
Notes to Financial Statements | |
Fair Value Disclosures [Text Block] | 4. There were no December 31, 2022 2021. The Company’s investments are all classified within Levels 1 not 3 The classification of the Company’s cash equivalents and investments within the fair value hierarchy is as follows: Active Markets Significant Other Significant for Identical Assets Observable Inputs Unobservable Inputs December 31, 2022 (Level 1) (Level 2) (Level 3) Amortized Cost Cash equivalents: Money Market Funds $ 67,801 $ 67,801 $ - $ - $ 67,801 Active Markets Significant Other Significant for Identical Assets Observable Inputs Unobservable Inputs December 31, 2021 (Level 1) (Level 2) (Level 3) Amortized Cost Cash equivalents: Money Market Funds $ 67,046 $ 67,046 $ - $ - $ 67,046 Other current and long-term liabilities: Contingent Consideration - Short Term $ 4,315 $ - $ - $ 4,315 $ - There were no 2022 2021. Contingent Consideration The following table provides a roll forward of the contingent consideration related to business acquisitions discussed in Note 3, Business Combinations. Years Ended December 31 2022 2021 Balance, beginning January 1 $ 4,315 $ 35,410 Additions - - Payments (4,315 ) (10,000 ) Change in fair value - (21,095 ) Balance, ending December 31 $ - $ 4,315 Under the Parcus Medical Merger Agreement and Arthrosurface Merger Agreement, there were earn-out milestones totaling up to $100 million payable from 2020 2022. 2020 2022, 2020 2021. In order to determine the fair value of contingent consideration at each reporting date, the projected contingent payment amounts were discounted back to the current period using a discounted cash flow model or a Monte Carlo simulation approach. The unobservable inputs used in the fair value measurement of the Company’s contingent consideration are the probabilities of successful achievement, the net sales estimates, the weighted average cost of capital used for the Monte Carlo simulation, discount rate and the periods in which the milestones are expected to be achieved. The discount rates used for the net sales earn-out milestone ranged from 3.1% - 3.4%. The weighted average cost of capital for Parcus Medical decreased from 11.4% as of December 31, 2020 December 31, 2021. December 31, 2020. As of December 31, 2021, 2021, September 2022. June 2021, July 2021. December 31, 2022, no The overall fair value of the contingent consideration decreased by $21.1 million and $28.7 million during the years ended December 31, 2021 2020, |
Note 5 - Inventories
Note 5 - Inventories | 12 Months Ended |
Dec. 31, 2022 | |
Notes to Financial Statements | |
Inventory Disclosure [Text Block] | 5. Total inventories included in the balance sheet consist of the following: As of December 31, 2022 2021 Raw materials $ 20,535 $ 16,881 Work-in-process 10,648 11,442 Finished goods 25,306 26,731 Total $ 56,489 $ 55,054 Inventories $ 39,765 $ 36,010 Other long-term assets 16,724 19,044 Total $ 56,489 $ 55,054 Inventories are stated net of inventory reserves of approximately $9.9 million and $9.1 million, as of December 31, 2022 2021, |
Note 6 - Property and Equipment
Note 6 - Property and Equipment | 12 Months Ended |
Dec. 31, 2022 | |
Notes to Financial Statements | |
Property, Plant and Equipment Disclosure [Text Block] | 6. and Equipment Property and equipment is stated at cost and consists of the following: As of December 31, 2022 2021 Equipment and software $ 52,112 $ 48,804 Furniture and fixtures 2,413 2,389 Leasehold improvements 34,916 34,614 Construction in progress 5,021 1,378 Subtotal 94,462 87,185 Less accumulated depreciation (46,183 ) (39,583 ) Total $ 48,279 $ 47,602 Depreciation expense was $6.7 million, $6.5 million, and $6.1 million for the years ended December 31, 2022, 2021, 2020, |
Note 7 - Acquired Intangible As
Note 7 - Acquired Intangible Assets, Net | 12 Months Ended |
Dec. 31, 2022 | |
Notes to Financial Statements | |
Goodwill and Intangible Assets Disclosure [Text Block] | 7. Intangible assets consist of the following: Year Ended December 31, 2022 Gross Cost Less: Accumulated Currency Translation Adjustment Less: Current Period Impairment Charge Less: Accumulated Amortization Net Book Value Weighted Average Useful Life (in Years) Developed technology $ 89,580 $ (1,608 ) $ - $ (23,686 ) $ 64,286 15 IPR&D 2,656 (1,006 ) - - 1,650 Indefinite Customer relationships 9,000 - - (2,627 ) 6,373 10 Distributor relationships 4,700 (415 ) - (4,285 ) - 5 Patents 1,000 (189 ) - (680 ) 131 16 Tradenames 5,200 - - (3,041 ) 2,159 5 Total $ 112,136 $ (3,218 ) $ - $ (34,319 ) $ 74,599 13 Year Ended December 31, 2021 Gross Cost Less: Accumulated Currency Translation Adjustment Less: Current Period Impairment Charge Less: Accumulated Amortization Net Book Value Weighted Average Useful Life Developed technology $ 89,580 $ (1,608 ) $ - $ (17,891 ) $ 70,081 15 IPR&D 3,256 (1,006 ) (600 ) - 1,650 Indefinite Customer relationships 9,000 - - (1,727 ) 7,273 10 Distributor relationships 4,700 (415 ) - (4,285 ) - 5 Patents 1,000 (189 ) - (632 ) 179 16 Tradenames 5,200 - - (2,001 ) 3,199 5 Total $ 112,736 $ (3,218 ) $ (600 ) $ (26,536 ) $ 82,382 13 Total amortization expense with respect to the definite lived acquired intangible assets was $7.8 million for each of the years ended December 31, 2022 2021 December 31, 2020. During the fourth 2021, not no During the fourth 2020, not no The Company performed its annual assessment of the remaining IPR&D intangible asset as of November 30, 2022. November 30, 2022. During 2020, not 2020. |
Note 8 - Goodwill
Note 8 - Goodwill | 12 Months Ended |
Dec. 31, 2022 | |
Notes to Financial Statements | |
Goodwill Disclosure [Text Block] | 8. The following table provides a roll forward of goodwill for the years ended December 31, 2022 2021: Years Ended December 31 2022 2021 Balance, beginning January 1 $ 7,781 $ 8,413 Effect of foreign currency adjustments (442 ) (632 ) Balance, ending December 31 $ 7,339 $ 7,781 In the first 2020, 3, Business Combinations 2020 2020. December 31, 2022 2021 As part of its annual impairment testing as of November 30 not not not November 30, 2022. Government policy responses to the COVID- 19 first 2020, fourth 2020. The Company estimated the fair value of the reporting units using a discounted cash flow method, which is based on the present value of projected cash flows and a terminal value, which represents the expected normalized cash flows of the reporting units beyond the cash flows from the discrete projection period. The Company determined that a discounted cash flow model provided the best approximation of fair value of the reporting units for the purpose of performing the impairment test. 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 November 30, 2020. For the legacy Anika reporting unit, the Company performed a qualitative assessment including consideration of (i) general macroeconomic factors, (ii) industry and market conditions, and (iii) the extent of the excess of the fair value over the carrying value indicated in prior impairment testing. The Company determined it was not not not March 31, 2020. November 30, 2020, not December 31, 2020. For its newly created reporting unit, which includes Parcus Medical and Arthrosurface, the Company performed an interim quantitative assessment of goodwill impairment as of March 31, 2020. 19 first 2020. November 30, 2020. 19 fourth 2020. December 31, 2020. December 31, 2020. |
Note 9 - Leases
Note 9 - Leases | 12 Months Ended |
Dec. 31, 2022 | |
Notes to Financial Statements | |
Lessee, Operating Leases and Finance Leases [Text Block] | 9. The Company leases its buildings and manufacturing facilities under operating leases. As of December 31, 2022, In June 2022, 2027. 2038. 2032, 2026 As a result of the acquisition of Parcus Medical and Arthrosurface, the Company acquired operating and finance leases for corporate offices, manufacturing and warehouse facilities and machinery. The operating leases consist of one two October 2022, 2024. June 2022, two 2027. September 2022. The significant assumptions in recognizing the right-of-use asset and lease liability are as follows: Incremental borrowing rate not not December 31, 2022 Lease term. not The components of lease expense and other information are as follows: Years Ended December 31 2022 2021 2020 Finance lease amortization of right-of-use assets $ 121 $ 143 $ 185 Interest on finance lease liabilities 11 19 25 Finance lease expense 132 162 210 Operating lease expense 2,839 2,468 2,383 Short-term lease expense 17 2 - Variable lease expense 413 319 264 Total lease expense $ 3,401 $ 2,951 $ 2,857 Years Ended December 31 2022 2021 Weighted Average Remaining Lease Term (in years) Operating leases 14.8 15.3 Financing leases - 2.3 Weighted Average Discount Rate Operating leases 3.6 % 4.1 % Financing leases - 4.9 % Other information Operating cash flows from operating leases $ 2,471 $ 2,392 Operating cash flows from financing leases $ 121 $ 136 Future commitments due under these lease agreements as of December 31, 2022 Years ended December 31, Operating Leases 2023 $ 3,170 2024 3,055 2025 3,066 2026 2,760 2027 2,643 Thereafter 25,230 Present value adjustment (9,034 ) Present value of lease payments 30,890 Less current portion included in accrued expenses and other current liabilities (2,073 ) Total lease liabilities $ 28,817 |
Note 10 - Accrued Expenses and
Note 10 - Accrued Expenses and Other Liabilities | 12 Months Ended |
Dec. 31, 2022 | |
Notes to Financial Statements | |
Accounts Payable and Accrued Liabilities Disclosure [Text Block] | 10. Accrued expenses consist of the following: As of December 31, 2022 2021 Compensation and related expenses $ 11,303 $ 9,523 Professional fees 3,145 3,590 Operating lease liability- current 2,073 1,526 Clinical trial costs 999 1,961 Finance lease liability - current - 188 Income taxes payable 810 - Other 510 1,059 Total $ 18,840 $ 17,847 |
Note 11 - Revolving Credit Agre
Note 11 - Revolving Credit Agreement | 12 Months Ended |
Dec. 31, 2022 | |
Notes to Financial Statements | |
Debt Disclosure [Text Block] | 11. On November 12, 2021, October 24, 2017 may five December 31, 2022 2021, The Credit Agreement contains customary representations, warranties, affirmative and negative covenants, including financial covenants, events of default, and indemnification provisions in favor of the Lenders. These include restrictive covenants that require the Company not first In April 2020, December 31, 2020. December 31, 2022, 2021 2020 |
Note 12 - Commitments and Conti
Note 12 - Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2022 | |
Notes to Financial Statements | |
Commitments and Contingencies Disclosure [Text Block] | 12. 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 December 31, 2022 2021, 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 On October 21, 2021, not first 2023. |
Note 13 - Revenue and Geographi
Note 13 - Revenue and Geographic Information | 12 Months Ended |
Dec. 31, 2022 | |
Notes to Financial Statements | |
Revenue from Contract with Customer [Text Block] | 13. The Company categorizes its product portfolio into three January 24, 2020 February 3, 2020 Product revenue by product family is as follows: Years Ended December 31, 2022 2021 2020 Revenue Percentage of Product Revenue Revenue Percentage of Product Revenue Revenue Percentage of Product Revenue OA Pain Management $ 97,887 63 % $ 89,503 61 % $ 83,029 64 % Joint Preservation and Restoration 50,402 32 % 48,588 33 % 39,368 30 % Non-Orthopedic 7,947 5 % 9,703 6 % 8,060 6 % Total $ 156,236 100 % $ 147,794 100 % $ 130,457 100 % Effective January 1, 2023, 2022, 2021 2020, Product revenue from the Company’s sole significant customer, Mitek, as a percentage of the Company’s total product revenue was 43%, 45%, and 49% for the years ended December 31, 2022, 2021, 2020, Total revenue by geographic location based on the location of the customer in total and as a percentage of total revenue are as follows: Years Ended December 31, 2022 2021 2020 Total Percentage of Total Percentage of Total Percentage of Revenue Revenue Revenue Revenue Revenue Revenue Geographic Location: United States $ 119,151 76 % $ 113,833 77 % $ 103,182 79 % Europe 20,639 13 % 19,580 13 % 14,179 11 % Other 16,446 11 % 14,381 10 % 13,096 10 % Total $ 156,236 100 % $ 147,794 100 % $ 130,457 100 % Net long-lived assets, consisting primarily of net property and equipment, are subject to geographic risks because they are generally difficult to move and to effectively utilize in another geographic area in a reasonable time period and because they are relatively illiquid. Net tangible long-lived assets by principal geographic areas are as follows: Years Ended December 31, 2022 2021 United States $ 47,068 $ 46,068 Italy 1,211 1,534 Total $ 48,279 $ 47,602 |
Note 14 - Equity Incentive Plan
Note 14 - Equity Incentive Plan | 12 Months Ended |
Dec. 31, 2022 | |
Notes to Financial Statements | |
Share-Based Payment Arrangement [Text Block] | 14. Equity Incentive Plan The Anika Therapeutics, Inc. 2017 “2017 June 13, 2017 June 18, 2019, June 16, 2020 June 16, 2021. 2017 may 2017 no may 2017 December 31, 2022 2017 The Anika Therapeutics, Inc. 2021 November 4, 2021. may not 2017 December 31, 2022 The Company may one four ten 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. For the year ended December 31, 2022, Years Ended December 31, 2022 2021 2020 Cost of revenue $ 820 $ 716 $ 719 Research and development 1,646 1,233 713 Selling, general and administrative 11,849 9,136 3,954 Total stock-based compensation expense $ 14,315 $ 11,085 $ 5,386 For the years ended December 31, 2022, 2021 2020, 0.5 The Company’s former President and Chief Executive Officer, Joseph Darling, passed away unexpectedly in January 2020. 2017 one three March 31, 2020 Stock Options Stock options are granted to purchase common shares at prices that are equal to the fair market value of the shares on the date the options are granted or, in the case of premium options, are granted with an exercise price at 110% of the market price of the Company’s common stock on the date of grant. Options generally vest in equal annual installments over a period of three four 10 The following summarizes the activity under the Company’s stock option plans: Number of Options Weighted Average Exercise Price Weighted Average Remaining Contractual Term (in years) Aggregate Intrinsic Value (in thousands) Outstanding as of December 31, 2021 1,175,993 $ 39.56 Granted 553,827 $ 28.07 Exercised (433 ) $ 8.83 $ 10 Forfeited and canceled (198,684 ) $ 43.24 Outstanding as of December 31, 2022 1,530,703 $ 34.93 8.1 $ 1,050 Vested, December 31, 2022 640,056 $ 40.08 7.2 $ 12 Vested or expected to vest, December 31, 2022 1,530,703 $ 34.93 8.1 $ 1,050 The aggregate intrinsic value of options exercised for the years ended December 31, 2021 2020 The Company granted 553,827 stock options during the year ended December 31, 2022, The Company uses the Black-Scholes pricing model to determine the fair value of options granted. The calculation of the fair value of stock options is affected by the stock price on the grant date, the expected volatility of the Company’s common stock over the expected term of the award, the expected life of the award, the risk-free interest rate and the dividend yield. The Company estimated the fair value of TSRs using Monte-Carlo simulation model where the expected volatility assumption is evaluated over 6.3 years. The actual number of TSR options that may December 31, 2022. The assumptions used in the Black-Scholes pricing model for options granted during the years ended December 31, 2022 2021 2020, 2022 2021 2020 Risk-free interest rate 1.28% - 4.28% 0.29% - 1.00% 0.21% - 1.59% Expected stock price volatility 53.80% - 55.55% 54.80% - 56.35% 46.48% - 54.06% Expected life of options (in years) 4.5 4.0 4.0 Expected dividend yield 0.0% 0.0% -% Fair value per option 11.45 14.80 16.31 As of December 31, 2022, Restricted Stock Units RSUs generally vest in equal annual installments over a three four RSU activity for the year ended December 31, 2022 Number of Shares Weighted Average Fair Value Outstanding as of December 31, 2021 $ 412,658 $ 36.33 Granted 507,524 $ 25.14 Vested (164,167 ) $ 36.77 Forfeited and cancelled (80,610 ) $ (31.40 ) Outstanding as of December 31, 2022 $ 675,405 $ 28.40 The weighted-average grant-date fair value per share of RSUs granted was $25.14, $35.88 and $38.20 for the years ended December 31, 2022, 2021 2020, December 31, 2022, 2021 2020, As of December 31, 2022, Performance Stock Units PSUs generally vest over a three 2019 2019 2022 not 2020 not 2021 not 2022 not 2022 PSU activity for the year ended December 31, 2022 Number of Shares Weighted Average Fair Value Outstanding as of December 31, 2021 158,297 $ 37.44 Granted 2,125 $ 32.53 Vested (19,125 ) $ 32.53 Forfeited and cancelled (23,400 ) $ 41.86 Outstanding as of December 31, 2022 117,897 $ 34.98 The weighted-average grant-date fair value per share of PSUs granted was $32.53, $0 and $36.93 for the years ended December 31, 2022, 2021 2020, $0 $0 December 31, 2022, 2021 2020, December 31, 2022, no Employee Stock Purchase Plan On March 17, 2021, 2021 may six first |
Note 15 - Employee Benefit Plan
Note 15 - Employee Benefit Plan | 12 Months Ended |
Dec. 31, 2022 | |
Notes to Financial Statements | |
Compensation and Employee Benefit Plans [Text Block] | 15. The Company’s U.S. employees are eligible to participate in the Company’s 401 may may December 31, 2022, 2021, 2020, |
Note 16 - Income Taxes
Note 16 - Income Taxes | 12 Months Ended |
Dec. 31, 2022 | |
Notes to Financial Statements | |
Income Tax Disclosure [Text Block] | 16. Income Tax Expense The components of the Company’s income (loss) before income taxes and its provision for (benefit from) income taxes consist of the following: Years ended December 31, 2022 2021 2020 (Loss) income before income taxes Domestic $ (19,080 ) $ (2,529 ) $ (25,722 ) Foreign 334 4,956 (2,902 ) $ (18,746 ) $ 2,427 $ (28,624 ) Years ended December 31, 2022 2021 2020 Provision for (benefit from) income taxes: Current: Federal $ 1,005 $ 494 $ 357 State 285 (635 ) (1,970 ) Foreign 96 167 49 Total current 1,386 26 (1,564 ) Deferred: Federal (3,243 ) (553 ) (1,980 ) State (1,256 ) (426 ) (1,070 ) Foreign (774 ) (754 ) (28 ) Total deferred (5,273 ) (1,733 ) (3,078 ) Total benefit from income taxes $ (3,887 ) $ (1,707 ) $ (4,642 ) Deferred Tax Assets and Liabilities Significant components of the Company’s deferred tax assets and liabilities consist of the following: As of December 31, 2022 2021 Deferred tax assets: Lease liability $ 7,468 $ 4,684 Capitalized research expenditures 5,451 - Stock-based compensation expense 2,795 2,782 Inventory reserves 2,763 2,453 Compensation accrual 1,635 1,236 Net operating loss carry forwards 1,551 2,822 Tax credits 741 3,022 Accrued expenses 519 491 Foreign currency exchange 221 282 Deferred tax assets $ 23,144 $ 17,772 As of December 31, 2022 2021 Deferred tax liabilities: Acquisition-related intangible asset $ (12,075 ) $ (14,770 ) Depreciation (8,804 ) (8,509 ) Right of use asset (7,252 ) (4,650 ) Deferred tax liabilities $ (28,131 ) $ (27,929 ) Net deferred tax liabilities $ (4,987 ) $ (10,157 ) As of December 31, 2022, 2026. not 80% December 31, 2022, 2023. The Tax Cuts and Jobs Act (“TCJA”) requires taxpayers to capitalize and amortize research and experimental (“R&D”) expenditures for tax years beginning after December 31, 2021. December 31, 2022 The Company recognizes deferred tax assets to the extent that it believes that these assets are more likely than not not not During the year ended December 31, 2021, Undistributed earnings of certain of the Company’s foreign subsidiaries amounted to approximately $0.5 million at December 31, 2022. 100% not Effective Tax Rate The reconciliation between the U.S. federal statutory rate and the Company’s effective rate is summarized as follows: Years ended December 31, 2022 2021 2020 Statutory federal income tax rate 21.0 % 21.0 % 21.0 % State tax expense, net of federal benefit 1.4 % (3.2 %) 1.5 % Stock compensation (4.7% ) 22.3 % (2.2 %) Section 162(m) limitation (8.2% ) 8.7 % - Goodwill impairment - - (16.8 %) Change in fair value of contingent consideration - (36.7 %) 6.7 % Change in tax rates and state apportionment 1.2 % (29.8 %) 4.9 % Federal, state and foreign tax credits 5.1 % (28.4 %) 2.2 % Valuation allowance - (35.3 %) (3.0 %) Return to provision adjustments 5.0 % - - Other permanent items (0.1 )% 11.0 % 1.9 % Effective income tax rate 20.7 % (70.4 %) 16.2 % Accounting for Uncertainty in Income Taxes The Company had no unrecognized tax benefits for the years ended December 31, 2022 2021, not twelve December 31, 2022. In the normal course of business, Anika and its subsidiaries may no 2019. |
Note 17- Earnings Per Share ("E
Note 17- Earnings Per Share ("EPS") | 12 Months Ended |
Dec. 31, 2022 | |
Notes to Financial Statements | |
Earnings Per Share [Text Block] | 17. 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 EPS (in thousands): Years Ended December 31, 2022 2021 2020 Shares used in the calculation of basic EPS 14,561 14,401 14,222 Effect of dilutive securities: Share based awards - 233 - Diluted shares used in the calculation of EPS 14,561 14,634 14,222 Stock options of 1.1 million shares were outstanding for the year ended December 31, 2021 not December 31, 2022 2020, |
Significant Accounting Policies
Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Use of Estimates, Policy [Policy Text Block] | Use of Estimates The preparation of financial statements in conformity with generally accepted accounting principles in the United States of America (“US GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. |
Consolidation, Policy [Policy Text Block] | Principles of Consolidation The accompanying consolidated financial statements include the accounts of Anika Therapeutics, Inc. and its wholly owned subsidiaries, Anika Securities, Inc., Anika Therapeutics S.r.l. (“Anika S.r.l.”), Anika Therapeutics Limited, Parcus Medical and Arthrosurface. All intercompany balances and transactions have been eliminated in consolidation. |
Foreign Currency Transactions and Translations Policy [Policy Text Block] | Foreign Currency Translation The functional currency of Anika S.r.l. is the Euro, and the functional currency of Anika Therapeutics Limited is the British Pound Sterling. Assets and liabilities of the foreign subsidiaries are translated using the exchange rate existing on each respective balance sheet date. Revenues and expenses are translated using the average exchange rates for the period. The translation adjustments resulting from this process are included in stockholders’ equity as a component of accumulated other comprehensive income (loss) which resulted in a gain (loss) from foreign currency translation of ($0.7) million, ($1.2) million, and $1.3 million for the years ended December 31, 2022, 2021, 2020, Gains and losses resulting from foreign currency transactions are recognized in the consolidated statements of operations. Recorded balances that are denominated in a currency other than the functional currency are remeasured to the functional currency using the exchange rate at the balance sheet date and gains or losses are recorded in the statements of operations. The Company recognized a gain (loss) from foreign currency transactions of ($0.5) million, ($0.4) million, and $0.3 million during the years ended December 31, 2022, 2021, 2020, |
Receivables, Trade and Other Accounts Receivable, Allowance for Doubtful Accounts, Policy [Policy Text Block] | Accounts Receivable The Company estimates an allowance for credit losses with its accounts receivable resulting from the inability of its customers to make required payments, which is included in selling, general and administrative expenses in the accompanying consolidated statements of operations. In determining the adequacy of the allowance, management specifically analyzes individual accounts receivable, historical bad debts, customer concentrations, customer creditworthiness, current and reasonable and supportable forecasts of future economic conditions, accounts receivable aging trends, and changes in the Company’s customer payment terms. The components of the Company’s accounts receivables are as follows: As of December 31, 2022 2021 Accounts Receivable $ 36,235 $ 31,285 Allowance for credit losses 1,608 1,442 Net balance, end of the year 34,627 29,843 A summary of activity in the allowance for credit losses is as follows: As of December 31, 2022 2021 2020 Balance, beginning of the year $ 1,442 $ 1,523 $ 962 Amounts provided 554 156 635 Amounts recovered (180 ) (92 ) (86 ) Amounts written off (158 ) (73 ) (78 ) Translation adjustments (50 ) (72 ) 90 Balance, end of the year $ 1,608 $ 1,442 $ 1,523 |
Revenue [Policy Text Block] | Revenue Recognition Pursuant to Accounting Standard Codification 606, Revenue from Contracts with Customers 606” five |
Revenue from Contract with Customer [Policy Text Block] | Revenue The Company generates sales principally through three For commercial partnership sales, the Company sells its products directly to these partners, who perform most of the downstream sales and marketing activities to customers and end-users. These arrangements may December 31, 2022, 2021 2020 2016 no may not not For sales to hospitals and ASCs, which generally pairs in-house sales representatives with local or regional distributors, the inventory is generally consigned so that products are available when needed for surgical procedures. No For distributor sales, the Company sells its products principally to distributors, generally outside the United States, who 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 insignificant. The Company sells to a diversified base of distributors and, therefore, believes there is no The Company’s payment terms are consistent with prevailing practice in the respective markets in which the Company does business. Most of the Company’s customers make payments based on contract terms, which are not one Some of the Company’s distributor agreements have volume-based discounts with tiered pricing which 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 prospective discounts or free-of-charge sample units are considered material rights, these would be separate performance obligations and a portion of the sales transaction price is allocated to the material right. Revenue allocated to the material right is recognized when the additional goods are transferred to the customer or when the option expires. During 2022 2021, not 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 December 31, 2022 2021, Generally, customer contracts contain Free on Board (“FOB”) or Ex-Works 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 revenue when control over the products has transferred to the customer. Value-add and other taxes collected by the Company concurrently with revenue-producing activities are excluded from revenue. The Company’s general product warranty does not not one 340 40 25 4. Licensing, Milestone and Contract Revenue The agreements with Mitek include variable consideration such as contingent development and regulatory milestones. Since 2016, no not |
Cash and Cash Equivalents, Policy [Policy Text Block] | Cash and Cash Equivalents The Company considers only those investments which are highly liquid, readily convertible to cash, and that mature within 90 |
Investment, Policy [Policy Text Block] | Investments All of the Company’s investments are classified as available-for-sale which consist of U.S. treasury bills and are carried at fair value with unrealized gains and losses recorded as a component of accumulated other comprehensive income (loss), net of related income taxes. For securities sold prior to maturity, the cost of securities sold is based on the specific identification method. Realized gains and losses on the sale of investments are recorded in interest and other income, net. Interest is recorded when earned. Investments with original maturities greater than approximately three one one December 31, 2022 December 31, 2021. All of the Company’s investments are subject to a periodic impairment review. For available-for-sale debt securities in an unrealized loss position, the Company first not Any impairment that has not During the years ended December 31, 2022, 2021 2020, not not not |
Concentration Risk, Credit Risk, Policy [Policy Text Block] | Concentration of Credit Risk The Company has no two The Company, by policy, routinely assesses the financial strength of its customers. As a result, the Company believes that its accounts receivable credit risk exposure is limited. As of December 31, 2022 2021, No 10% |
Inventory, Policy [Policy Text Block] | Inventories Inventories are primarily stated at the lower of standard cost and net realizable value, with cost determined using the first first The Company’s policy is to write down inventory when conditions exist that suggest inventory may not When recorded, inventory write-downs are intended to reduce the carrying value of inventory to its net realizable value. If actual demand for the Company’s products deteriorates, or if market conditions are less favorable than those projected, additional inventory write-downs may one |
Lessee, Leases [Policy Text Block] | Leases At the inception of an arrangement, the Company determines whether the arrangement is or contains a lease based on the circumstances present and evaluates whether the lease is an operating lease or a finance lease at the commencement date. Operating and finance leases with a term greater than one not not not not may |
Property, Plant and Equipment, Policy [Policy Text Block] | Property and Equipment Property and equipment are recorded at cost and depreciated using the straight-line method over their estimated useful lives, which are typically: Asset Estimated useful life (in years) Computer equipment and software 3 - 10 Furniture and fixtures 5 - 7 Equipment 5 - 20 Leasehold improvements Shorter of useful life or term of lease Maintenance and repairs are charged to expense when incurred; additions and improvements are capitalized. Fully depreciated assets are retained in the accounts until they are no no Construction-in-process assets are stated at cost, which includes the cost of construction and other direct costs attributable to the construction. Construction-in-process assets are not |
Goodwill and Intangible Assets, Intangible Assets, Policy [Policy Text Block] | Goodwill and IPR&D Assets Goodwill is the amount by which the purchase price of acquired net assets in a business combination exceeded the fair values of net identifiable assets on the date of acquisition. Acquired In-Process Research and Development (“IPR&D”) represents the fair value assigned to research and development assets that the Company acquires that have not Goodwill and IPR&D are not one 2020 Under U.S. GAAP, the Company has the option to perform a qualitative assessment to determine if it is necessary to perform the impairment test. If the Company concludes, based on a qualitative assessment, it is not not not To conduct quantitative impairment tests of goodwill, the fair value of the reporting unit is compared to its carrying value. If the reporting unit’s carrying value exceeds its fair value, the Company records an impairment loss to the extent that the carrying value of goodwill exceeds its implied fair value, not December 31, 2020. 8, Goodwill The Company performed a qualitative annual assessment for impairment of the remaining goodwill with respect to legacy Anika reporting unit as of November 30, 2022, not not not November 30, 2022. To conduct impairment tests of IPR&D, the fair value of the IPR&D project is compared to its carrying value. If the carrying value exceeds its fair value, the Company records an impairment loss to the extent that the carrying value of the IPR&D project exceeds its fair value. The Company estimates the fair value for IPR&D using the income approach, which is based on the Multi-Period Excess Earnings Method (“MPEEM”). MPEEM measures economic benefit indirectly by calculating the income attributable to an asset after appropriate returns are paid to complementary assets used in conjunction with the subject asset to produce the earnings associated with the subject asset, commonly referred to as contributory asset charges. This approach incorporates significant estimates and assumptions related to the forecasted results including revenues, expenses, expected economic life of the asset, contributory asset charges and discount rates to estimate future cash flows. |
Impairment or Disposal of Long-Lived Assets, Including Intangible Assets, Policy [Policy Text Block] | Long-Lived Assets Long-lived assets primarily include property and equipment and intangible assets with finite lives. The Company’s intangible assets are comprised of purchased developed technologies, patents, trade names, customer relationships and distributor relationships. These intangible assets are carried at cost, net of accumulated amortization. Amortization is recorded on a straight-line basis over the intangible assets' useful lives, which range from approximately five sixteen may not no In determining the useful lives of intangible assets, the Company considers the expected use of the assets and the effects of obsolescence, demand, competition, anticipated technological advances, changes in surgical techniques, market influences and other economic factors. For technology-based intangible assets, the Company considers the expected life cycles of products, absent unforeseen technological advances, which incorporate the corresponding technology. |
Fair Value Measurement, Policy [Policy Text Block] | Fair Value Measurements Fair value is defined as the price that would be received from selling an asset, or paid to transfer a liability, in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities required to be recorded at fair value, the Company considers the principal or most advantageous market in which it would transact and considers assumptions that market participants would use when pricing the asset or liability, such as inherent risk, transfer restrictions, and risk of non-performance. The accounting standard establishes a fair value hierarchy that requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. A financial instrument’s categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. Three levels of inputs that may • Level 1 1 • Level 2 not • Level 3 not The Company’s financial assets have been classified as Level 1. third 3. 4 Fair Value Measurements third |
Research and Development Expense, Policy [Policy Text Block] | Research and Development Research and development costs consist primarily of salaries and related expenses for personnel, clinical trial expenses and fees paid to outside consultants and outside service providers. Research and development costs are expensed as incurred. |
Share-Based Payment Arrangement [Policy Text Block] | Stock-Based Compensation The Company has stock-based compensation plans under which it grants various types of equity-based awards, the cost of which is based on the grant-date fair value of the underlying award and recognized over the period during which an employee is required to provide service in exchange for the award, which is generally the vesting period. For performance-equity awards with market-based conditions, compensation cost is measured at the date of the award and is recorded over the vesting period, regardless of the likelihood of achievement of the market-based performance criteria. For performance-based equity awards with financial and business milestone achievement targets, compensation cost is based on the probable outcome of the performance conditions. Changes to the probability assessment and the estimated shares expected to vest will result in adjustments to the related stock-based compensation expense that will be recorded in the period of the change. If the performance targets are not no See Note 14, Equity Incentive Plan |
Income Tax, Policy [Policy Text Block] | Income Taxes We account for income taxes under the asset and liability method, which requires the recognition of deferred tax assets, or DTAs, and deferred tax liabilities, or DTLs, for the expected future tax consequences of events that have been included in the financial statements. Under this method, we determine DTAs and DTLs based on the differences between the financial statement and tax bases of assets and liabilities by using enacted tax rates in effect for the year in which the differences are expected to reverse. The effect of a change in tax rates on DTAs and DTLs is recognized in income in the period that includes the enactment date. We recognize DTAs to the extent that we believe that these assets are more likely than not We record uncertain tax positions in accordance with ASC 740, Income Taxes two 1 not 2 not 50 |
Comprehensive Income, Policy [Policy Text Block] | Comprehensive Income (Loss) Comprehensive income (loss) consists of net income (loss) and other comprehensive income (loss), which includes foreign currency translation adjustments. For the purposes of comprehensive income (loss) disclosures, the Company does not |
Segment Reporting, Policy [Policy Text Block] | 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 as of December 31, 2022. 280, Segment Reportin one |
Commitments and Contingencies, Policy [Policy Text Block] | Contingencies In the normal course of business, the Company is involved from time-to-time in various legal proceedings and other matters such as contractual disputes, which are complex in nature and have outcomes that are difficult to predict. The Company records accruals for loss contingencies to the extent that it concludes that it is probable that a liability has been incurred and the amount of the related loss can be reasonably estimated. The Company considers all relevant factors when making assessments regarding these contingencies. Although the outcomes of any potential legal proceedings are inherently difficult to predict, the Company does not |
New Accounting Pronouncements, Policy [Policy Text Block] | Recent Issued Accounting Pronouncements No |
Note 2 - Summary of Significa_2
Note 2 - Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Notes Tables | |
Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block] | As of December 31, 2022 2021 Accounts Receivable $ 36,235 $ 31,285 Allowance for credit losses 1,608 1,442 Net balance, end of the year 34,627 29,843 As of December 31, 2022 2021 2020 Balance, beginning of the year $ 1,442 $ 1,523 $ 962 Amounts provided 554 156 635 Amounts recovered (180 ) (92 ) (86 ) Amounts written off (158 ) (73 ) (78 ) Translation adjustments (50 ) (72 ) 90 Balance, end of the year $ 1,608 $ 1,442 $ 1,523 |
Property, Plant and Equipment Estimated Useful Lives [Table Text Block] | Asset Estimated useful life (in years) Computer equipment and software 3 - 10 Furniture and fixtures 5 - 7 Equipment 5 - 20 Leasehold improvements Shorter of useful life or term of lease |
Note 3 - Business Combinations
Note 3 - Business Combinations (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
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] | Developed technology $ 41,100 Trade name 1,800 Customer relationships 1,100 Total acquired 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 acquired intangible assets $ 48,900 |
Business Acquisition, Pro Forma Information [Table Text Block] | Year Ended December 31, 2020 Total revenue $ 134,410 Net loss $ (22,984 ) |
Note 4 - Fair Value Measureme_2
Note 4 - Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Notes Tables | |
Fair Value, Assets Measured on Recurring Basis [Table Text Block] | Active Markets Significant Other Significant for Identical Assets Observable Inputs Unobservable Inputs December 31, 2022 (Level 1) (Level 2) (Level 3) Amortized Cost Cash equivalents: Money Market Funds $ 67,801 $ 67,801 $ - $ - $ 67,801 Active Markets Significant Other Significant for Identical Assets Observable Inputs Unobservable Inputs December 31, 2021 (Level 1) (Level 2) (Level 3) Amortized Cost Cash equivalents: Money Market Funds $ 67,046 $ 67,046 $ - $ - $ 67,046 Other current and long-term liabilities: Contingent Consideration - Short Term $ 4,315 $ - $ - $ 4,315 $ - |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Table Text Block] | Years Ended December 31 2022 2021 Balance, beginning January 1 $ 4,315 $ 35,410 Additions - - Payments (4,315 ) (10,000 ) Change in fair value - (21,095 ) Balance, ending December 31 $ - $ 4,315 |
Note 5 - Inventories (Tables)
Note 5 - Inventories (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Notes Tables | |
Schedule of Inventory, Current [Table Text Block] | As of December 31, 2022 2021 Raw materials $ 20,535 $ 16,881 Work-in-process 10,648 11,442 Finished goods 25,306 26,731 Total $ 56,489 $ 55,054 Inventories $ 39,765 $ 36,010 Other long-term assets 16,724 19,044 Total $ 56,489 $ 55,054 |
Note 6 - Property and Equipme_2
Note 6 - Property and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Notes Tables | |
Property, Plant and Equipment [Table Text Block] | As of December 31, 2022 2021 Equipment and software $ 52,112 $ 48,804 Furniture and fixtures 2,413 2,389 Leasehold improvements 34,916 34,614 Construction in progress 5,021 1,378 Subtotal 94,462 87,185 Less accumulated depreciation (46,183 ) (39,583 ) Total $ 48,279 $ 47,602 |
Note 7 - Acquired Intangible _2
Note 7 - Acquired Intangible Assets, Net (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Notes Tables | |
Schedule of Finite-Lived and Indefinite-Lived Intangible Assets by Major Class [Table Text Block] | Year Ended December 31, 2022 Gross Cost Less: Accumulated Currency Translation Adjustment Less: Current Period Impairment Charge Less: Accumulated Amortization Net Book Value Weighted Average Useful Life (in Years) Developed technology $ 89,580 $ (1,608 ) $ - $ (23,686 ) $ 64,286 15 IPR&D 2,656 (1,006 ) - - 1,650 Indefinite Customer relationships 9,000 - - (2,627 ) 6,373 10 Distributor relationships 4,700 (415 ) - (4,285 ) - 5 Patents 1,000 (189 ) - (680 ) 131 16 Tradenames 5,200 - - (3,041 ) 2,159 5 Total $ 112,136 $ (3,218 ) $ - $ (34,319 ) $ 74,599 13 Year Ended December 31, 2021 Gross Cost Less: Accumulated Currency Translation Adjustment Less: Current Period Impairment Charge Less: Accumulated Amortization Net Book Value Weighted Average Useful Life Developed technology $ 89,580 $ (1,608 ) $ - $ (17,891 ) $ 70,081 15 IPR&D 3,256 (1,006 ) (600 ) - 1,650 Indefinite Customer relationships 9,000 - - (1,727 ) 7,273 10 Distributor relationships 4,700 (415 ) - (4,285 ) - 5 Patents 1,000 (189 ) - (632 ) 179 16 Tradenames 5,200 - - (2,001 ) 3,199 5 Total $ 112,736 $ (3,218 ) $ (600 ) $ (26,536 ) $ 82,382 13 |
Note 8 - Goodwill (Tables)
Note 8 - Goodwill (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Notes Tables | |
Schedule of Goodwill [Table Text Block] | Years Ended December 31 2022 2021 Balance, beginning January 1 $ 7,781 $ 8,413 Effect of foreign currency adjustments (442 ) (632 ) Balance, ending December 31 $ 7,339 $ 7,781 |
Note 9 - Leases (Tables)
Note 9 - Leases (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Notes Tables | |
Lease, Cost [Table Text Block] | Years Ended December 31 2022 2021 2020 Finance lease amortization of right-of-use assets $ 121 $ 143 $ 185 Interest on finance lease liabilities 11 19 25 Finance lease expense 132 162 210 Operating lease expense 2,839 2,468 2,383 Short-term lease expense 17 2 - Variable lease expense 413 319 264 Total lease expense $ 3,401 $ 2,951 $ 2,857 Years Ended December 31 2022 2021 Weighted Average Remaining Lease Term (in years) Operating leases 14.8 15.3 Financing leases - 2.3 Weighted Average Discount Rate Operating leases 3.6 % 4.1 % Financing leases - 4.9 % Other information Operating cash flows from operating leases $ 2,471 $ 2,392 Operating cash flows from financing leases $ 121 $ 136 |
Lessee, Operating Lease and Finance Lease, Liability, Maturity [Table Text Block] | Years ended December 31, Operating Leases 2023 $ 3,170 2024 3,055 2025 3,066 2026 2,760 2027 2,643 Thereafter 25,230 Present value adjustment (9,034 ) Present value of lease payments 30,890 Less current portion included in accrued expenses and other current liabilities (2,073 ) Total lease liabilities $ 28,817 |
Note 10 - Accrued Expenses an_2
Note 10 - Accrued Expenses and Other Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Notes Tables | |
Schedule of Accrued Liabilities [Table Text Block] | As of December 31, 2022 2021 Compensation and related expenses $ 11,303 $ 9,523 Professional fees 3,145 3,590 Operating lease liability- current 2,073 1,526 Clinical trial costs 999 1,961 Finance lease liability - current - 188 Income taxes payable 810 - Other 510 1,059 Total $ 18,840 $ 17,847 |
Note 13 - Revenue and Geograp_2
Note 13 - Revenue and Geographic Information (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Notes Tables | |
Revenue from External Customers by Products and Services [Table Text Block] | Years Ended December 31, 2022 2021 2020 Revenue Percentage of Product Revenue Revenue Percentage of Product Revenue Revenue Percentage of Product Revenue OA Pain Management $ 97,887 63 % $ 89,503 61 % $ 83,029 64 % Joint Preservation and Restoration 50,402 32 % 48,588 33 % 39,368 30 % Non-Orthopedic 7,947 5 % 9,703 6 % 8,060 6 % Total $ 156,236 100 % $ 147,794 100 % $ 130,457 100 % |
Schedule of Revenue and Operating Income by Geographical Areas [Table Text Block] | Years Ended December 31, 2022 2021 2020 Total Percentage of Total Percentage of Total Percentage of Revenue Revenue Revenue Revenue Revenue Revenue Geographic Location: United States $ 119,151 76 % $ 113,833 77 % $ 103,182 79 % Europe 20,639 13 % 19,580 13 % 14,179 11 % Other 16,446 11 % 14,381 10 % 13,096 10 % Total $ 156,236 100 % $ 147,794 100 % $ 130,457 100 % |
Schedule of Revenue from External Customers and Long-Lived Assets, by Geographical Areas [Table Text Block] | Years Ended December 31, 2022 2021 United States $ 47,068 $ 46,068 Italy 1,211 1,534 Total $ 48,279 $ 47,602 |
Note 14 - Equity Incentive Pl_2
Note 14 - Equity Incentive Plan (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Notes Tables | |
Share-Based Payment Arrangement, Expensed and Capitalized, Amount [Table Text Block] | Years Ended December 31, 2022 2021 2020 Cost of revenue $ 820 $ 716 $ 719 Research and development 1,646 1,233 713 Selling, general and administrative 11,849 9,136 3,954 Total stock-based compensation expense $ 14,315 $ 11,085 $ 5,386 |
Share-Based Payment Arrangement, Option, Activity [Table Text Block] | Number of Options Weighted Average Exercise Price Weighted Average Remaining Contractual Term (in years) Aggregate Intrinsic Value (in thousands) Outstanding as of December 31, 2021 1,175,993 $ 39.56 Granted 553,827 $ 28.07 Exercised (433 ) $ 8.83 $ 10 Forfeited and canceled (198,684 ) $ 43.24 Outstanding as of December 31, 2022 1,530,703 $ 34.93 8.1 $ 1,050 Vested, December 31, 2022 640,056 $ 40.08 7.2 $ 12 Vested or expected to vest, December 31, 2022 1,530,703 $ 34.93 8.1 $ 1,050 |
Schedule of Share-Based Payment Award, Stock Options, Valuation Assumptions [Table Text Block] | 2022 2021 2020 Risk-free interest rate 1.28% - 4.28% 0.29% - 1.00% 0.21% - 1.59% Expected stock price volatility 53.80% - 55.55% 54.80% - 56.35% 46.48% - 54.06% Expected life of options (in years) 4.5 4.0 4.0 Expected dividend yield 0.0% 0.0% -% Fair value per option 11.45 14.80 16.31 |
Share-Based Payment Arrangement, Restricted Stock and Restricted Stock Unit, Activity [Table Text Block] | Number of Shares Weighted Average Fair Value Outstanding as of December 31, 2021 $ 412,658 $ 36.33 Granted 507,524 $ 25.14 Vested (164,167 ) $ 36.77 Forfeited and cancelled (80,610 ) $ (31.40 ) Outstanding as of December 31, 2022 $ 675,405 $ 28.40 |
Schedule of Nonvested Performance-Based Units Activity [Table Text Block] | Number of Shares Weighted Average Fair Value Outstanding as of December 31, 2021 158,297 $ 37.44 Granted 2,125 $ 32.53 Vested (19,125 ) $ 32.53 Forfeited and cancelled (23,400 ) $ 41.86 Outstanding as of December 31, 2022 117,897 $ 34.98 |
Note 16 - Income Taxes (Tables)
Note 16 - Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Notes Tables | |
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block] | Years ended December 31, 2022 2021 2020 (Loss) income before income taxes Domestic $ (19,080 ) $ (2,529 ) $ (25,722 ) Foreign 334 4,956 (2,902 ) $ (18,746 ) $ 2,427 $ (28,624 ) Years ended December 31, 2022 2021 2020 Provision for (benefit from) income taxes: Current: Federal $ 1,005 $ 494 $ 357 State 285 (635 ) (1,970 ) Foreign 96 167 49 Total current 1,386 26 (1,564 ) Deferred: Federal (3,243 ) (553 ) (1,980 ) State (1,256 ) (426 ) (1,070 ) Foreign (774 ) (754 ) (28 ) Total deferred (5,273 ) (1,733 ) (3,078 ) Total benefit from income taxes $ (3,887 ) $ (1,707 ) $ (4,642 ) |
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | As of December 31, 2022 2021 Deferred tax assets: Lease liability $ 7,468 $ 4,684 Capitalized research expenditures 5,451 - Stock-based compensation expense 2,795 2,782 Inventory reserves 2,763 2,453 Compensation accrual 1,635 1,236 Net operating loss carry forwards 1,551 2,822 Tax credits 741 3,022 Accrued expenses 519 491 Foreign currency exchange 221 282 Deferred tax assets $ 23,144 $ 17,772 As of December 31, 2022 2021 Deferred tax liabilities: Acquisition-related intangible asset $ (12,075 ) $ (14,770 ) Depreciation (8,804 ) (8,509 ) Right of use asset (7,252 ) (4,650 ) Deferred tax liabilities $ (28,131 ) $ (27,929 ) Net deferred tax liabilities $ (4,987 ) $ (10,157 ) |
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | Years ended December 31, 2022 2021 2020 Statutory federal income tax rate 21.0 % 21.0 % 21.0 % State tax expense, net of federal benefit 1.4 % (3.2 %) 1.5 % Stock compensation (4.7% ) 22.3 % (2.2 %) Section 162(m) limitation (8.2% ) 8.7 % - Goodwill impairment - - (16.8 %) Change in fair value of contingent consideration - (36.7 %) 6.7 % Change in tax rates and state apportionment 1.2 % (29.8 %) 4.9 % Federal, state and foreign tax credits 5.1 % (28.4 %) 2.2 % Valuation allowance - (35.3 %) (3.0 %) Return to provision adjustments 5.0 % - - Other permanent items (0.1 )% 11.0 % 1.9 % Effective income tax rate 20.7 % (70.4 %) 16.2 % |
Note 17- Earnings Per Share (_2
Note 17- Earnings Per Share ("EPS") (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Notes Tables | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | Years Ended December 31, 2022 2021 2020 Shares used in the calculation of basic EPS 14,561 14,401 14,222 Effect of dilutive securities: Share based awards - 233 - Diluted shares used in the calculation of EPS 14,561 14,634 14,222 |
Note 2 - Summary of Significa_3
Note 2 - Summary of Significant Accounting Policies (Details Textual) $ in Thousands | 11 Months Ended | 12 Months Ended | ||
Nov. 30, 2022 USD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | |
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, Net of Tax, Total | $ (700) | $ (1,200) | $ 1,300 | |
Foreign Currency Transaction Gain (Loss), before Tax, Total | (500) | (400) | 300 | |
Contract with Customer, Liability, Total | 0 | 1,000 | ||
Debt Securities, Available-for-Sale, Noncurrent | $ 0 | 0 | ||
Number of Reporting Units | 2 | |||
Goodwill, Impairment Loss | $ 0 | $ 0 | $ 0 | $ 42,520 |
Number of Operating Segments | 1 | |||
Minimum [Member] | ||||
Property, Plant and Equipment, Useful Life (Year) | 5 years | |||
Maximum [Member] | ||||
Property, Plant and Equipment, Useful Life (Year) | 16 years | |||
Customer Concentration Risk [Member] | Revenue Benchmark [Member] | DePuy Mitek Inc [Member] | ||||
Concentration Risk, Percentage | 43% | 45% | 49% | |
Customer Concentration Risk [Member] | Accounts Receivable [Member] | DePuy Mitek Inc [Member] | ||||
Concentration Risk, Percentage | 47% | 41% |
Note 2 - Summary of Significa_4
Note 2 - Summary of Significant Accounting Policies - Allowance for Doubtful Accounts (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Accounts Receivable | $ 36,235 | $ 31,285 | |
Allowance for credit losses | 1,608 | 1,442 | |
Net balance, end of the year | 34,627 | 29,843 | |
Balance, beginning of the year | 1,442 | 1,523 | $ 962 |
Amounts provided | 554 | 156 | 635 |
Amounts recovered | (180) | (92) | (86) |
Amounts written off | (158) | (73) | (78) |
Translation adjustments | (50) | (72) | 90 |
Balance, end of the year | $ 1,608 | $ 1,442 | $ 1,523 |
Note 2 - Summary of Significa_5
Note 2 - Summary of Significant Accounting Policies - Estimated Useful Lives of Property and Equipment (Details) | 12 Months Ended |
Dec. 31, 2022 | |
Minimum [Member] | |
Estimated useful life (Year) | 5 years |
Maximum [Member] | |
Estimated useful life (Year) | 16 years |
Computer Equipment and Software [Member] | Minimum [Member] | |
Estimated useful life (Year) | 3 years |
Computer Equipment and Software [Member] | Maximum [Member] | |
Estimated useful life (Year) | 10 years |
Furniture and Fixtures [Member] | Minimum [Member] | |
Estimated useful life (Year) | 5 years |
Furniture and Fixtures [Member] | Maximum [Member] | |
Estimated useful life (Year) | 7 years |
Equipment [Member] | Minimum [Member] | |
Estimated useful life (Year) | 5 years |
Equipment [Member] | Maximum [Member] | |
Estimated useful life (Year) | 20 years |
Note 3 - Business Combination_2
Note 3 - Business Combinations (Details Textual) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||||||
Feb. 03, 2020 | Jan. 24, 2020 | Jul. 31, 2021 | Jun. 30, 2021 | Oct. 31, 2020 | Mar. 31, 2020 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2021 | |
Business Combination, Contingent Consideration, Liability, Current | $ 0 | $ 4,315 | ||||||||
Finite-Lived Intangible Asset, Useful Life (Year) | 13 years | 13 years | ||||||||
Payment for Contingent Consideration Liability, Financing Activities | $ 4,315 | $ 7,220 | $ 4,478 | |||||||
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 | 10 years | ||||||||
Trade Names [Member] | ||||||||||
Finite-Lived Intangible Asset, Useful Life (Year) | 5 years | 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, Contingent Consideration, Liability, Current | $ 4,300 | $ 4,300 | ||||||||
Business Combination, Acquisition Related Costs | $ 1,900 | |||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | $ 44,000 | |||||||||
Parcus Medical [Member] | Developed Technology Rights [Member] | ||||||||||
Finite-Lived Intangible Asset, Useful Life (Year) | 15 years | |||||||||
Parcus Medical [Member] | Customer Relationships [Member] | ||||||||||
Finite-Lived Intangible Asset, Useful Life (Year) | 10 years | |||||||||
Parcus Medical [Member] | Trade Names [Member] | ||||||||||
Finite-Lived Intangible Asset, Useful Life (Year) | 5 years | |||||||||
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 | |||||||||
Payment for Contingent Consideration Liability, Financing Activities | $ 10,000 | $ 10,000 | $ 5,000 | |||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | $ 48,900 | |||||||||
Arthrosurface [Member] | Developed Technology Rights [Member] | ||||||||||
Finite-Lived Intangible Asset, Useful Life (Year) | 15 years | |||||||||
Arthrosurface [Member] | Customer Relationships [Member] | ||||||||||
Finite-Lived Intangible Asset, Useful Life (Year) | 10 years | |||||||||
Arthrosurface [Member] | Trade Names [Member] | ||||||||||
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, Finite-Lived Intangibles | $ 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 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Feb. 03, 2020 | Jan. 24, 2020 |
Goodwill | $ 7,339 | $ 7,781 | $ 8,413 | ||
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 | $ (11,147) |
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) $ in Thousands | 12 Months Ended |
Dec. 31, 2020 USD ($) | |
Total revenue | $ 134,410 |
Net loss | $ (22,984) |
Note 4 - Fair Value Measureme_3
Note 4 - Fair Value Measurements (Details Textual) $ in Thousands | 1 Months Ended | 12 Months Ended | |||||||
Feb. 03, 2020 USD ($) | Jan. 24, 2020 USD ($) | Jul. 31, 2021 USD ($) | Jun. 30, 2021 USD ($) | Oct. 31, 2020 USD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | Sep. 30, 2021 USD ($) | |
Debt Securities, Available-for-sale, Total | $ 0 | ||||||||
Business Combination, Contingent Consideration, Liability, Current | 0 | $ 4,315 | |||||||
Payment for Contingent Consideration Liability, Financing Activities | 4,315 | 7,220 | $ 4,478 | ||||||
Business Combination, Contingent Consideration Arrangements, Change in Amount of Contingent Consideration, Liability | 0 | (21,095) | $ (28,666) | ||||||
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] | Minimum [Member] | Measurement Input, Discount Rate [Member] | |||||||||
Business Combination, Contingent Consideration, Liability, Measurement Input | 3.1 | ||||||||
Parcus Medical and Arthrosurface Acquisitions [Member] | Maximum [Member] | Measurement Input, Discount Rate [Member] | |||||||||
Business Combination, Contingent Consideration, Liability, Measurement Input | 3.4 | ||||||||
Parcus Medical [Member] | |||||||||
Business Combination, Contingent Consideration Arrangements, Change in Range of Outcomes, Contingent Consideration, Liability, Value, High | $ 60,000 | ||||||||
Business Combination, Contingent Consideration, Liability, Current | $ 4,300 | $ 4,300 | |||||||
Parcus Medical [Member] | Measurement Input, Weighted Average Cost of Capital [Member] | |||||||||
Business Combination, Contingent Consideration, Liability, Measurement Input | 11.3 | 11.4 | |||||||
Arthrosurface [Member] | |||||||||
Business Combination, Contingent Consideration Arrangements, Change in Range of Outcomes, Contingent Consideration, Liability, Value, High | $ 40,000 | ||||||||
Payment for Contingent Consideration Liability, Financing Activities | $ 10,000 | $ 10,000 | $ 5,000 | ||||||
Business Combination, Contingent Consideration Arrangements, Change in Amount of Contingent Consideration, Liability | $ 21,100 | $ 28,700 | |||||||
Arthrosurface [Member] | Measurement Input, Weighted Average Cost of Capital [Member] | |||||||||
Business Combination, Contingent Consideration, Liability, Measurement Input | 11.4 |
Note 4 - Fair Value Measureme_4
Note 4 - Fair Value Measurements - Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Business Combination, Contingent Consideration, Liability, Current | $ 0 | $ 4,315 |
Estimate of Fair Value Measurement [Member] | ||
Business Combination, Contingent Consideration, Liability, Current | 4,315 | |
Estimate of Fair Value Measurement [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Business Combination, Contingent Consideration, Liability, Current | 0 | |
Estimate of Fair Value Measurement [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Business Combination, Contingent Consideration, Liability, Current | 0 | |
Estimate of Fair Value Measurement [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Business Combination, Contingent Consideration, Liability, Current | 4,315 | |
Reported Value Measurement [Member] | ||
Business Combination, Contingent Consideration, Liability, Current | 0 | |
Money Market Funds [Member] | Estimate of Fair Value Measurement [Member] | ||
Cash equivalents | 67,801 | 67,046 |
Money Market Funds [Member] | Estimate of Fair Value Measurement [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Cash equivalents | 67,801 | 67,046 |
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 | $ 67,801 | $ 67,046 |
Note 4 - Fair Value Measureme_5
Note 4 - Fair Value Measurements - Contingent Consideration (Details) - Contingent Consideration [Member] - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Balance | $ 4,315 | $ 35,410 |
Additions | 0 | 0 |
Payments | (4,315) | (10,000) |
Change in fair value | 0 | (21,095) |
Balance | $ 0 | $ 4,315 |
Note 5 - Inventories (Details T
Note 5 - Inventories (Details Textual) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Inventory Valuation Reserves | $ 9.9 | $ 9.1 |
Note 5 - Inventories - Summary
Note 5 - Inventories - Summary of Inventories (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Raw materials | $ 20,535 | $ 16,881 |
Work-in-process | 10,648 | 11,442 |
Finished goods | 25,306 | 26,731 |
Total | 56,489 | 55,054 |
Inventories | 39,765 | 36,010 |
Other long-term assets | $ 16,724 | $ 19,044 |
Note 6 - Property and Equipme_3
Note 6 - Property and Equipment (Details Textual) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Depreciation, Total | $ 6.7 | $ 6.5 | $ 6.1 |
Note 6 - Property and Equipme_4
Note 6 - Property and Equipment - Property and Equipment at Cost (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Property, plant and equipment, gross | $ 94,462 | $ 87,185 |
Less accumulated depreciation | (46,183) | (39,583) |
Total | 48,279 | 47,602 |
Equipment and Software [Member] | ||
Property, plant and equipment, gross | 52,112 | 48,804 |
Furniture and Fixtures [Member] | ||
Property, plant and equipment, gross | 2,413 | 2,389 |
Leasehold Improvements [Member] | ||
Property, plant and equipment, gross | 34,916 | 34,614 |
Construction in Progress [Member] | ||
Property, plant and equipment, gross | $ 5,021 | $ 1,378 |
Note 7 - Acquired Intangible _3
Note 7 - Acquired Intangible Assets, Net (Details Textual) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Amortization of Intangible Assets, Total | $ 7,800 | $ 7,400 | |||
Impairment of Intangible Assets, Finite-lived | 0 | 600 | $ 2,439 | ||
In Process Research and Development [Member] | |||||
Impairment of Intangible Assets, Indefinite-lived (Excluding Goodwill) | 0 | ||||
Impairment of Intangible Assets, Finite-lived | 0 | 600 | |||
Developed Technology Rights [Member] | |||||
Impairment of Intangible Assets, Finite-lived | $ 0 | $ 0 | |||
Selling, General and Administrative Expenses [Member] | Developed Technology Rights [Member] | |||||
Impairment of Intangible Assets, Finite-lived | $ 1,000 | ||||
Acquisitions of Parcus Medical and Arthrosurface [Member] | Research and Development Expense [Member] | |||||
Impairment of Intangible Assets, Indefinite-lived (Excluding Goodwill) | $ 600 | ||||
Parcus Medical and Arthrosurface [Member] | Research and Development Expense [Member] | |||||
Impairment of Intangible Assets, Indefinite-lived (Excluding Goodwill) | $ 1,400 |
Note 7 - Acquired Intangible _4
Note 7 - Acquired Intangible Assets, Net - Summary of Intangible Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Gross value | $ 112,136 | $ 112,736 | |
Accumulated Currency Translation Adjustment | (3,218) | (3,218) | |
Current period impairment charge | 0 | (600) | $ (2,439) |
Accumulated Amortization | (34,319) | (26,536) | |
Net book value | $ 74,599 | $ 82,382 | |
Useful life (Year) | 13 years | 13 years | |
Developed Technology Rights [Member] | |||
Gross value | $ 89,580 | $ 89,580 | |
Accumulated Currency Translation Adjustment | (1,608) | (1,608) | |
Current period impairment charge | 0 | 0 | |
Accumulated Amortization | (23,686) | (17,891) | |
Net book value | $ 64,286 | $ 70,081 | |
Useful life (Year) | 15 years | 15 years | |
In Process Research and Development [Member] | |||
Gross value | $ 2,656 | $ 3,256 | |
Accumulated Currency Translation Adjustment | (1,006) | (1,006) | |
Current period impairment charge | 0 | (600) | |
Accumulated Amortization | 0 | 0 | |
Net book value | 1,650 | 1,650 | |
Customer Relationships [Member] | |||
Gross value | 9,000 | 9,000 | |
Accumulated Currency Translation Adjustment | 0 | 0 | |
Current period impairment charge | 0 | 0 | |
Accumulated Amortization | (2,627) | (1,727) | |
Net book value | $ 6,373 | $ 7,273 | |
Useful life (Year) | 10 years | 10 years | |
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 | |
Patents [Member] | |||
Gross value | $ 1,000 | $ 1,000 | |
Accumulated Currency Translation Adjustment | (189) | (189) | |
Current period impairment charge | 0 | 0 | |
Accumulated Amortization | (680) | (632) | |
Net book value | $ 131 | $ 179 | |
Useful life (Year) | 16 years | 16 years | |
Trade Names [Member] | |||
Gross value | $ 5,200 | $ 5,200 | |
Accumulated Currency Translation Adjustment | 0 | 0 | |
Current period impairment charge | 0 | 0 | |
Accumulated Amortization | (3,041) | (2,001) | |
Net book value | $ 2,159 | $ 3,199 | |
Useful life (Year) | 5 years | 5 years |
Note 8 - Goodwill (Details Text
Note 8 - Goodwill (Details Textual) $ in Thousands | 3 Months Ended | 11 Months Ended | 12 Months Ended | ||||
Dec. 31, 2020 USD ($) | Mar. 31, 2020 USD ($) | Nov. 30, 2022 USD ($) | Nov. 30, 2021 USD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | |
Number of Reporting Units | 2 | ||||||
Goodwill, Impairment Loss | $ 0 | $ 0 | $ 0 | $ 42,520 | |||
Goodwill, Ending Balance | $ 8,413 | $ 7,339 | $ 7,781 | 8,413 | |||
Parcus Medical and Arthrosurface [Member] | |||||||
Number of Reporting Units | 2 | ||||||
Goodwill, Impairment Loss | 24,400 | $ 18,100 | 42,500 | ||||
Goodwill, Ending Balance | $ 0 | 0 | |||||
Legacy Anika Reporting Unit [Member] | |||||||
Goodwill, Impairment Loss | $ 0 | $ 0 | $ 0 |
Note 8 - Goodwill - Changes in
Note 8 - Goodwill - Changes in the Carrying Value of Goodwill (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Balance | $ 7,781 | $ 8,413 |
Effect of foreign currency adjustments | (442) | (632) |
Balance | $ 7,339 | $ 7,781 |
Note 9 - Leases (Details Textua
Note 9 - Leases (Details Textual) | Dec. 31, 2022 | Dec. 31, 2021 |
Operating Lease, Weighted Average Discount Rate, Percent | 3.60% | 4.10% |
Note 9 - Leases - Lease Expense
Note 9 - Leases - Lease Expense and Other Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Finance lease amortization of right-of-use assets | $ 121 | $ 143 | $ 185 |
Interest on finance lease liabilities | 11 | 19 | 25 |
Finance lease expense | 132 | 162 | 210 |
Operating lease expense | 2,839 | 2,468 | 2,383 |
Short-term lease expense | 17 | 2 | 0 |
Variable lease expense | 413 | 319 | 264 |
Total lease expense | $ 3,401 | $ 2,951 | $ 2,857 |
Operating leases (Year) | 14 years 9 months 18 days | 15 years 3 months 18 days | |
Financing leases (Year) | 2 years 3 months 18 days | ||
Operating Lease, Weighted Average Discount Rate, Percent | 3.60% | 4.10% | |
Financing leases | 0% | 4.90% | |
Right-of-use assets obtained in exchange for operating lease liabilities | $ 2,471 | $ 2,392 | |
Operating cash flows from financing leases | $ 121 | $ 136 |
Note 9 - Leases - Future Minimu
Note 9 - Leases - Future Minimum Rental Payments for Leases (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
2023, operating leases | $ 3,170 | |
2024, operating leases | 3,055 | |
2025, operating leases | 3,066 | |
2026, operating leases | 2,760 | |
2027, operating leases | 2,643 | |
Thereafter | 25,230 | |
Present value adjustment, operating leases | (9,034) | |
Total lease liabilities, operating leases | 28,817 | $ 19,240 |
Liabilities [Member] | ||
Present value of lease payments, operating leases | 30,890 | |
Accrued Expenses and Other Current Liabilities [Member] | ||
Less current portion included in Accrued expenses and other current liabilities, operating leases | $ (2,073) | $ (1,526) |
Note 10 - Accrued Expenses an_3
Note 10 - Accrued Expenses and Other Liabilities - Summary of Accrued Expenses (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Compensation and related expenses | $ 11,303 | $ 9,523 |
Professional fees | 3,145 | 3,590 |
Clinical trial costs | 999 | 1,961 |
Income taxes payable | 810 | 0 |
Other | 510 | 1,059 |
Total | 18,840 | 17,847 |
Accrued Expenses and Other Current Liabilities [Member] | ||
Operating lease liability- current | 2,073 | 1,526 |
Finance lease liability - current | $ 0 | $ 188 |
Note 11 - Revolving Credit Ag_2
Note 11 - Revolving Credit Agreement (Details Textual) - Revolving Credit Facility [Member] - USD ($) $ in Thousands | 12 Months Ended | ||||
Nov. 12, 2021 | Apr. 08, 2020 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Line of Credit Facility, Current Borrowing Capacity | $ 75,000 | ||||
Line of Credit Facility, Additional Borrowing Capacity | 75,000 | ||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 150,000 | ||||
Debt Instrument, Term (Year) | 5 years | ||||
Long-Term Line of Credit, Total | $ 0 | $ 0 | |||
Proceeds from Long-term Lines of Credit | $ 50,000 | ||||
Debt Instrument, Interest Rate, Stated Percentage | 2.08% | ||||
Interest Expense, Debt, Total | $ 0 | $ 0 | $ 800 | ||
Minimum [Member] | |||||
Debt Instrument, Basis Spread on Variable Rate | 0.25% | ||||
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage | 0.20% | ||||
Maximum [Member] | |||||
Debt Instrument, Basis Spread on Variable Rate | 1% | ||||
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage | 0.30% |
Note 12 - Commitments and Con_2
Note 12 - Commitments and Contingencies (Details Textual) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Standard and Extended Product Warranty Accrual, Ending Balance | $ 0 | $ 0 |
Note 13 - Revenue and Geograp_3
Note 13 - Revenue and Geographic Information (Details Textual) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Revenue from Contract with Customer, Excluding Assessed Tax | $ 156,236 | $ 147,794 | $ 130,457 |
Revenues From Agreements as Percent of Total Revenue | 43% | 45% | 49% |
OA Pain Management [member] | |||
Revenue from Contract with Customer, Excluding Assessed Tax | $ 97,887 | $ 89,503 | $ 83,029 |
Veterinary [Member] | OA Pain Management [member] | |||
Revenue from Contract with Customer, Excluding Assessed Tax | $ 5,900 | $ 4,400 | $ 3,800 |
Note 13 - Revenue and Geograp_4
Note 13 - Revenue and Geographic Information - Disaggregated Revenues (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Revenue | $ 156,236 | $ 147,794 | $ 130,457 |
Percent of revenue | 100% | 100% | 100% |
OA Pain Management [member] | |||
Revenue | $ 97,887 | $ 89,503 | $ 83,029 |
Percent of revenue | 63% | 61% | 64% |
Joint Preservation and Restoration [Member] | |||
Revenue | $ 50,402 | $ 48,588 | $ 39,368 |
Percent of revenue | 32% | 33% | 30% |
Non-Orthopedic [Member] | |||
Revenue | $ 7,947 | $ 9,703 | $ 8,060 |
Percent of revenue | 5% | 6% | 6% |
Note 13 - Revenue and Geograp_5
Note 13 - Revenue and Geographic Information - Total Revenue by Geographic Location (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Revenue | $ 156,236 | $ 147,794 | $ 130,457 |
Percent of revenue | 100% | 100% | 100% |
UNITED STATES | |||
Revenue | $ 119,151 | $ 113,833 | $ 103,182 |
Percent of revenue | 76% | 77% | 79% |
Europe [Member] | |||
Revenue | $ 20,639 | $ 19,580 | $ 14,179 |
Percent of revenue | 13% | 13% | 11% |
Other Location [Member] | |||
Revenue | $ 16,446 | $ 14,381 | $ 13,096 |
Percent of revenue | 11% | 10% | 10% |
Note 13 - Revenue and Geograp_6
Note 13 - Revenue and Geographic Information - Net Tangible Long-lived Assets by Principal Geographic Areas (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Property and equipment, net | $ 48,279 | $ 47,602 |
UNITED STATES | ||
Property and equipment, net | 47,068 | 46,068 |
ITALY | ||
Property and equipment, net | $ 1,211 | $ 1,534 |
Note 14 - Equity Incentive Pl_3
Note 14 - Equity Incentive Plan (Details Textual) - USD ($) | 3 Months Ended | 12 Months Ended | ||||||
Mar. 31, 2020 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Nov. 04, 2021 | Mar. 17, 2021 | Dec. 31, 2019 | Jun. 13, 2017 | |
Share-Based Payment Arrangement, Expense, Tax Benefit | $ 1,100,000 | |||||||
Effective Income Tax Rate Reconciliation, Share-based Compensation, Windfall Tax Benefit, Amount | (500,000) | $ 100,000 | $ 200,000 | |||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Exercises in Period, Intrinsic Value | $ 10,000 | $ 300,000 | $ 2,800,000 | |||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Grants in Period, Gross (in shares) | 553,827 | |||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Outstanding, Number, Ending Balance (in shares) | 1,530,703 | 1,175,993 | ||||||
Premium-Priced Employee Stock Options [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Premium Priced Options, Exercise Price as Percentage of Market Price | 110% | |||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Grants in Period, Gross (in shares) | 398,314 | |||||||
Share-Based Payment Arrangement, Option [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period (Year) | 10 years | |||||||
Share-Based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount, Total | $ 7,400,000 | |||||||
Share-Based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition (Year) | 1 year 9 months 18 days | |||||||
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 Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term (Year) | 6 years 3 months 18 days | |||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Outstanding, Number, Ending Balance (in shares) | 139,168 | |||||||
Restricted Stock Units (RSUs) [Member] | ||||||||
Share-Based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount, Total | $ 12,300,000 | |||||||
Share-Based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition (Year) | 1 year 9 months 18 days | |||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value (in dollars per share) | $ 25.14 | $ 35.88 | $ 38.20 | |||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Vested in Period, Fair Value | $ 6,000,000 | $ 3,700,000 | $ 2,200,000 | |||||
Performance Shares [Member] | ||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value (in dollars per share) | $ 32.53 | $ 0 | $ 36.93 | |||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Vested in Period, Fair Value | $ 600,000 | $ 0 | $ 0 | |||||
Performance Shares [Member] | Granted in 2019 [Member] | ||||||||
Share-based Compensation, Performance Shares Measured by Business Targets | 30% | |||||||
Share-based Compensation, Performance Shares Measured by Financial Targets | 55% | |||||||
Share-based Compensation, Performance Shares Measured by Financial Targets, Not Achieved | 15% | |||||||
Performance Shares [Member] | Granted in 2020 [Member] | ||||||||
Share-based Compensation, Performance Shares Measured by Financial Targets, Not Achieved | 60% | |||||||
Share-based Compensation, Performance Shares Measured by Business Targets, Not Achieved | 20% | 20% | ||||||
Selling, General and Administrative Expenses [Member] | ||||||||
Share-Based Payment Arrangement, Expense, Tax Benefit | $ 1,800,000 | |||||||
Minimum [Member] | Share-Based Payment Arrangement, Option [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period (Year) | 3 years | |||||||
Minimum [Member] | Total Shareholder Return ("TSRs") Options [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Percentage of Target Number | 0% | |||||||
Minimum [Member] | Restricted Stock Units (RSUs) [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period (Year) | 3 years | |||||||
Minimum [Member] | Performance Shares [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period (Year) | 3 years | |||||||
Maximum [Member] | Share-Based Payment Arrangement, Option [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period (Year) | 4 years | |||||||
Maximum [Member] | Total Shareholder Return ("TSRs") Options [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Percentage of Target Number | 150% | |||||||
Maximum [Member] | Restricted Stock Units (RSUs) [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period (Year) | 4 years | |||||||
The 2017 Plan [Member] | ||||||||
Number of Shares Available for Grant Reduced By Each Share Award Issued Other Than Options or SARs (in shares) | 2 | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized (in shares) | 4,600,000 | |||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Number of Shares Available for Grant (in shares) | 1,200,000 | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period (Year) | 10 years | |||||||
The 2017 Plan [Member] | Minimum [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period (Year) | 1 year | |||||||
The 2017 Plan [Member] | Maximum [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period (Year) | 4 years | |||||||
The 2021 Inducement Plan [Member] | ||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Number of Shares Available for Grant (in shares) | 4,883 | |||||||
Common Stock, Capital Shares Reserved for Future Issuance (in shares) | 125,000 | |||||||
Employee Stock Purchase Plan (ESPP) [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized (in shares) | 200,000 | |||||||
Share Based Compensation Arrangement by Share Based Payment Award Number of Shares Authorized per Offering Period (in shares) | 800 | |||||||
Share Based Compensation Arrangement by Share Based Payment Award, Value Authorized | $ 25,000 | |||||||
Represents Share Based Compensation Arrangement by Share Based Payment Award, Payroll Deduction percentage | 10% | |||||||
Represents Share Based Compensation Arrangement by Share Based Payment Award, the Purchase Price for Each Share Purchased, Percentage | 85% |
Note 14 - Equity Incentive Pl_4
Note 14 - Equity Incentive Plan - Total Stock-based Compensation Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Stock-based compensation expense | $ 14,315 | $ 11,085 | $ 5,386 |
Cost of Sales [Member] | |||
Stock-based compensation expense | 820 | 716 | 719 |
Research and Development Expense [Member] | |||
Stock-based compensation expense | 1,646 | 1,233 | 713 |
Selling, General and Administrative Expenses [Member] | |||
Stock-based compensation expense | $ 11,849 | $ 9,136 | $ 3,954 |
Note 14 - Equity Incentive Pl_5
Note 14 - Equity Incentive Plan - Stock Options (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Outstanding, shares (in shares) | 1,175,993 | ||
Outstanding, Weighted Average Exercise (in dollars per share) | $ 39.56 | ||
Granted, shares (in shares) | 553,827 | ||
Granted, Weighted Average Exercise Price (in dollars per share) | $ 28.07 | ||
Exercised, shares (in shares) | (433) | ||
Exercised, Weighted Average Exercise Price (in dollars per share) | $ 8.83 | ||
Exercised, Aggregate Intrinsic Value | $ 10 | $ 300 | $ 2,800 |
Forfeited and canceled, shares (in shares) | (198,684) | ||
Forfeited and canceled, Weighted Average Exercise Price (in dollars per share) | $ 43.24 | ||
Outstanding, shares (in shares) | 1,530,703 | 1,175,993 | |
Outstanding, Weighted Average Exercise Price (in dollars per share) | $ 34.93 | ||
Outstanding, Weighted Average Remaining Contractual Term (Year) | 8 years 1 month 6 days | ||
Outstanding, Aggregate Intrinsic Value | $ 1,050 | ||
Vested, shares (in shares) | 640,056 | ||
Vested, Weighted Average Exercise Price (in dollars per share) | $ 40.08 | ||
Vested, Weighted Average Remaining Contractual Term (Year) | 7 years 2 months 12 days | ||
Vested, Aggregate Intrinsic Value | $ 12 | ||
Vested and expected to vest, shares (in shares) | 1,530,703 | ||
Vested and expected to vest, Weighted Average Exercise Price (in dollars per share) | $ 34.93 | ||
Vested and expected to vest, Weighted Average Remaining Contractual Term (Year) | 8 years 1 month 6 days | ||
Vested and expected to vest, Aggregate Intrinsic Value | $ 1,050 |
Note 14 - Equity Incentive Pl_6
Note 14 - Equity Incentive Plan - Assumptions Used to Estimate Fair Value of Stock Options and Stock Appreciation Rights (Details) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Expected stock price volatility | 4.50% | 4% | 4% |
Expected dividend yield | 0% | 0% | |
Fair value per option | 0.1145 | 0.1480 | |
Minimum [Member] | |||
Risk-free interest rate | 1.28% | 0.29% | 0.21% |
Expected stock price volatility | 53.80% | 54.80% | 46.48% |
Maximum [Member] | |||
Risk-free interest rate | 4.28% | 1% | 1.59% |
Expected stock price volatility | 55.55% | 56.35% | 54.06% |
Note 14 - Equity Incentive Pl_7
Note 14 - Equity Incentive Plan - Restricted Stock Activity (Details) - Restricted Stock Units (RSUs) [Member] - $ / shares | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Outstanding, shares (in shares) | 412,658 | ||
Outstanding, weighted average grant date fair value (in dollars per share) | $ 36.33 | ||
Granted (in shares) | 507,524 | ||
Granted, weighted average grant date fair value (in dollars per share) | $ 25.14 | $ 35.88 | $ 38.20 |
Vested, shares (in shares) | (164,167) | ||
Vested, weighted average grant date fair value (in dollars per share) | $ 36.77 | ||
Forfeited and cancelled, shares (in shares) | (80,610) | ||
Forfeited and cancelled, weighted average grant date fair value (in dollars per share) | $ (31.40) | ||
Outstanding, shares (in shares) | 675,405 | 412,658 | |
Outstanding, weighted average grant date fair value (in dollars per share) | $ 28.40 | $ 36.33 |
Note 14 - Equity Incentive Pl_8
Note 14 - Equity Incentive Plan - Performance Stock Units (Details) - Performance Shares [Member] - $ / shares | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Outstanding, shares (in shares) | 158,297 | ||
Outstanding, weighted average grant date fair value (in dollars per share) | $ 37.44 | ||
Granted (in shares) | 2,125 | ||
Granted, weighted average grant date fair value (in dollars per share) | $ 32.53 | $ 0 | $ 36.93 |
Vested, shares (in shares) | (19,125) | ||
Vested, weighted average grant date fair value (in dollars per share) | $ 32.53 | ||
Forfeited and cancelled, shares (in shares) | (23,400) | ||
Forfeited and cancelled, weighted average grant date fair value (in dollars per share) | $ 41.86 | ||
Outstanding, shares (in shares) | 117,897 | 158,297 | |
Outstanding, weighted average grant date fair value (in dollars per share) | $ 34.98 | $ 37.44 |
Note 15 - Employee Benefit Pl_2
Note 15 - Employee Benefit Plan (Details Textual) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Defined Contribution Plan, Employer Matching Contribution, Percent of Match | 140% | ||
Defined Contribution Plan, Employer Matching Contribution, Percent of Employees' Gross Pay | 5% | ||
Defined Contribution Plan, Employer Matching Contribution, Amount | $ 2.3 | $ 2 | $ 1.7 |
Note 16 - Income Taxes (Details
Note 16 - Income Taxes (Details Textual) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Capitalized Costs, Research and Development | $ 23,400 | |
Finite-Lived Intangible Asset, Useful Life (Year) | 13 years | 13 years |
Unrecognized Tax Benefits, Ending Balance | $ 0 | |
Open Tax Year | 2019 2020 2021 2022 | |
Domestic Tax Authority [Member] | In Process Research and Development [Member] | ||
Finite-Lived Intangible Asset, Useful Life (Year) | 5 years | |
Domestic Tax Authority [Member] | Internal Revenue Service (IRS) [Member] | ||
Operating Loss Carryforwards | $ 0 | |
Domestic Tax Authority [Member] | Internal Revenue Service (IRS) [Member] | Research Tax Credit Carryforward [Member] | ||
Operating Loss Carryforwards | 400 | |
State and Local Jurisdiction [Member] | ||
Operating Loss Carryforwards | 3,100 | |
State and Local Jurisdiction [Member] | Research Tax Credit Carryforward [Member] | ||
Operating Loss Carryforwards | 500 | |
Foreign Tax Authority [Member] | ||
Deferred Tax Liabilities, Undistributed Foreign Earnings | $ 500 | |
Foreign Tax Authority [Member] | In Process Research and Development [Member] | ||
Finite-Lived Intangible Asset, Useful Life (Year) | 15 years | |
Foreign Tax Authority [Member] | Ministry of Economic Affairs and Finance, Italy [Member] | ||
Operating Loss Carryforwards | $ 6,100 | |
Valuation Allowance, Deferred Tax Asset, Increase (Decrease), Amount | $ (900) |
Note 16 - Income Taxes - Compon
Note 16 - Income Taxes - Components of Income Before Taxes and Provision for (Benefit from) Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Domestic | $ (19,080) | $ (2,529) | $ (25,722) |
Foreign | 334 | 4,956 | (2,902) |
(Loss) income before income taxes | (18,746) | 2,427 | (28,624) |
Federal | 1,005 | 494 | 357 |
State | 285 | (635) | (1,970) |
Foreign | 96 | 167 | 49 |
Total current | 1,386 | 26 | (1,564) |
Federal | (3,243) | (553) | (1,980) |
State | (1,256) | (426) | (1,070) |
Foreign | (774) | (754) | (28) |
Total deferred | (5,273) | (1,733) | (3,078) |
Total benefit from income taxes | $ (3,887) | $ (1,707) | $ (4,642) |
Note 16 - Income Taxes - Signif
Note 16 - Income Taxes - Significant Components of Company's Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Lease liability | $ 7,468 | $ 4,684 |
Capitalized research expenditures | 5,451 | 0 |
Stock-based compensation expense | 2,795 | 2,782 |
Inventory reserves | 2,763 | 2,453 |
Compensation accrual | 1,635 | 1,236 |
Net operating loss carry forwards | 1,551 | 2,822 |
Tax credits | 741 | 3,022 |
Accrued expenses | 519 | 491 |
Foreign currency exchange | 221 | 282 |
Deferred tax assets | 23,144 | 17,772 |
Acquisition-related intangible asset | (12,075) | (14,770) |
Depreciation | (8,804) | (8,509) |
Right of use asset | (7,252) | (4,650) |
Deferred tax liabilities | (28,131) | (27,929) |
Net deferred tax liabilities | $ (4,987) | $ (10,157) |
Note 16 - Income Taxes - Reconc
Note 16 - Income Taxes - Reconciliation Between U.S. Federal Statutory Rate and Effective Rate (Details) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Statutory federal income tax rate | 21% | 21% | 21% |
State tax expense, net of federal benefit | 1.40% | (3.20%) | 1.50% |
Stock compensation | (4.70%) | 22.30% | (2.20%) |
Section 162(m) limitation | (8.20%) | 8.70% | 0% |
Goodwill impairment | 0% | 0% | (16.80%) |
Change in fair value of contingent consideration | 0% | (36.70%) | 6.70% |
Change in tax rates and state apportionment | 1.20% | (29.80%) | 4.90% |
Federal, state and foreign tax credits | 5.10% | (28.40%) | 2.20% |
Valuation allowance | 0% | (35.30%) | (3.00%) |
Return to provision adjustments | 5% | 0% | 0% |
Other permanent items | (0.10%) | 11% | 1.90% |
Effective income tax rate | 20.70% | (70.40%) | 16.20% |
Note 17- Earnings Per Share (_3
Note 17- Earnings Per Share ("EPS") (Details Textual) shares in Millions | 12 Months Ended |
Dec. 31, 2021 shares | |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount (in shares) | 1.1 |
Note 17 - Earnings Per Share ("
Note 17 - Earnings Per Share ("EPS") - Basic and Diluted Earnings Per Share (Details) - shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Basic (in shares) | 14,561 | 14,401 | 14,222 |
Share based awards (in shares) | 0 | 233 | 0 |
Diluted shares used in the calculation of EPS (in shares) | 14,561 | 14,634 | 14,222 |