Note 12 - Revenue by Product Group, by Significant Customer and by Geographic Location; Geographic Information

12 Months Ended

Dec. 31, 2019

Notes to Financial Statements

Revenue from Contract with Customer [Text Block]

12.

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

Historically, we have categorized our product offerings into

four

segments: Orthobiologics, Dermal, Surgical, and Other, which included our ophthalmic and veterinary products. Moving forward, we will divide our product portfolio into

three

categories: Joint Pain Management Therapy, Orthopedic Joint Preservation and Restoration Care, and Other as a result of the Company’s acquisitions of Parcus Medical and Arthrosurface.

Product revenue by product group is as follows:

	Years Ended December 31,
	2019					2018					2017
	Revenue		Percentage of Product Revenue			Revenue		Percentage of Product Revenue			Revenue		Percentage of Product Revenue
Orthobiologics	$	101,002		88	%	$	93,556		89	%	$	93,816		87	%
Surgical		5,183		5	%		5,514		5	%		5,262		5	%
Dermal		2,244		2	%		396		0	%		2,755		3	%
Other		6,083		5	%		6,065		6	%		5,950		5	%
	$	114,512		100	%	$	105,531		100	%	$	107,783		100	%

Product revenue from the Company’s sole significant customer, Mitek, as a percentage of the Company’s total product revenue was

71%,

73%,

and

73%

for the years ended

December 31, 2019,

2018,

and

2017,

respectively.

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,
	2019					2018					2017
	Total		Percentage of			Total		Percentage of			Total		Percentage of
	Revenue		Revenue			Revenue		Revenue			Revenue		Revenue
Geographic Location:
United States	$	90,302		79	%	$	85,351		81	%	$	92,905		82	%
Europe		14,744		13	%		11,730		11	%		12,435		11	%
Other		9,564		8	%		8,474		8	%		8,080		7	%
Total	$	114,610		100	%	$	105,555		100	%	$	113,420		100	%

On

May 2, 2018,

the Company publicly disclosed a voluntary recall of certain production lots of its HYAFF-based products, HYALOFAST, HYALOGRAFT C, and HYALOMATRIX. The Company initiated the voluntary recall after internal quality testing, which indicated that the products were at risk of

not

maintaining certain measures throughout their entire shelf life. While there was

no

indication of any safety or efficacy issue related to the products at the time, the Company removed the products from the field as a precautionary measure. During the

three

-month period ended

March 31, 2018

the Company recorded a revenue reserve for this voluntary recall of

$1.1

million of which

$0.9

million was related to revenue recorded in prior periods. The revenue reserves impacted Orthopedic Joint Preservation and Restoration Care and Other product groups and all geographic locations. There was

no

remaining revenue reserve as of

December 31, 2019

and

2018.

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,
	2019		2018
United States	$	48,635	$	51,385
Italy		2,148		2,726
Total	$	50,783	$	54,111