Note 15 - Revenue by Product Group, by Significant Customer and by Geographic Location; Geographic Information

12 Months Ended

Dec. 31, 2017

Notes to Financial Statements

Segment Reporting Disclosure [Text Block]

15.

Revenue by Product Group, by Significant Customer and by Geographic Location; Geographic Information

Product revenue by product group is as follows:

	Years Ended December 31,
	2017					2016					2015
	Revenue		Percentage of Product Revenue			Revenue		Percentage of Product Revenue			Revenue		Percentage of Product Revenue
Orthobiologics	$	93,816		87	%	$	89,695		87	%	$	73,247		84	%
Dermal		2,755		3	%		2,759		3	%		2,266		2	%
Surgical		5,262		5	%		5,427		5	%		5,812		7	%
Other		5,950		5	%		5,051		5	%		6,371		7	%
	$	107,783		100	%	$	102,932		100	%	$	87,696		100	%

Product revenue from our sole significant customer, Mitek, as a percentage of our total product revenue was

73%,

75%,

and

72%

for the years ended

December 31, 2017,

2016,

and

2015,

respectively.

ORTHOVISC became available for sale in the United States on

March 

1,

2004,

and it is marketed exclusively by Mitek under the terms of an initial

ten

-year licensing, distribution, supply, and marketing agreement entered into in

December 2003.

The agreement was extended by Mitek for additional

five

-year terms in

2012

and in

2017,

with the current agreement to expire on

December 20, 2023.

In

December 2011,

the Company entered into a

fifteen

-year licensing agreement with Mitek to exclusively market MONOVISC in the United States. The agreement provides certain

milestone payments to the Company when rolling end-user sales of U.S. MONOVISC exceed certain target sales goals. For the years ended

December 31, 2017,

2016,

and

2015,

the Company recognized milestone revenue of

$5.0

million,

$0.0

million, and

$5.0

million, respectively, as a result of MONOVISC achieving end-user sales in

2015

of

$50

million within a consecutive

12

-month period, and end-user sales in

2017

of

$100

million within a consecutive

12

-month period. Under the terms of the agreement, there are additional milestone revenue that

may

be achieved in future years.

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,
	2017					2016					2015
	Total		Percentage of			Total		Percentage of			Total		Percentage of
	Revenue		Revenue			Revenue		Revenue			Revenue		Revenue
Geographic Location:
United States	$	92,905		82	%	$	83,972		81	%	$	76,621		82	%
Europe		12,435		11	%		10,953		11	%		8,756		9	%
Other		8,080		7	%		8,454		8	%		7,622		9	%
Total	$	113,420		100	%	$	103,379		100	%	$	92,999		100	%

The Company recorded licensing, milestone, and contract revenue of

$5.6

million,

$0.4

million, and

$5.3

million for the years ended

December 

31,

2017,

2016,

and

2015,

respectively; substantially all was derived in the United States with the exception of

2016

which was derived in the Middle East and Latin America.

Net long-lived assets, consisting 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,
	2017		2016
United States	$	52,828	$	49,140
Italy		3,355		3,156
Total	$	56,183	$	52,296