Revenues

3 Months Ended

Mar. 31, 2021

Revenues

6- Revenues

(6)

Revenues

We recognize revenue when performance obligations under the terms of a contract with our customer are satisfied. This occurs with the transfer of control of our products to customers when products are shipped. Revenue is measured as the amount of consideration we expect to receive in exchange for transferring products or services. Sales and other taxes we may collect concurrent with revenue-producing activities are excluded from revenue. A summary of revenues by geographic area, based on shipping destination, for the three months ended March 31, 2021 and 2020 is as follows (in thousands):

	2021		2020
United States	$	22,038	$	26,192
Germany		2,400		3,237
Italy		2,074		1,482
Other countries less than 5% of revenues		12,657		12,683
Total	$	39,169	$	43,594

A summary of revenues by product line for the three months ended March 31, 2021 and 2020 is as follows (in thousands):

	2021		2020
Fluid Delivery	$	19,075	$	22,348
Cardiovascular		12,830		14,824
Ophthalmology		1,693		863
Other		5,571		5,559
Total	$	39,169	$	43,594

More than 99 percent of our total revenue in the periods presented herein is pursuant to shipments initiated by a purchase order (our “contract”) and recognized at a single point in time when the performance obligation of the product being shipped is satisfied, rather than recognized over time, and is presented as a receivable on the balance sheet. Payment is typically due within 30 days.

We maintain an allowance for doubtful accounts to reflect estimated losses resulting from the failure of customers to make required payments. Effective January 1, 2020, we adopted a new credit loss accounting methodology to calculate our credit loss allowance for our trade receivables following a lifetime “expected credit loss” measurement objective. An account is written off when we determine the receivable will not be collected. Historically, bad debt has been immaterial.

We have elected to recognize the cost of shipping as an expense in cost of sales when control over the product has transferred to the customer.

We do not make any material accruals for product returns and warranty obligations because our returns and warranty obligations have been very low due to our focus on quality control.

We do not disclose the value of unsatisfied performance obligations for contracts for which we recognize revenue at the amount for which we have the right to invoice. We believe that the complexity added to our disclosures by the inclusion of a large amount of insignificant detail in attempting to disclose information about immaterial contracts would potentially obscure more useful and important information.