Note 11 - Revenue

6 Months Ended

Jun. 30, 2020

Notes to Financial Statements

Revenue from Contract with Customer [Text Block]

11. Revenue

The Company receives payments from its customers based on billing schedules established in each contract. Up-front payments and fees are recorded as deferred revenue upon receipt or when due and may require deferral of revenue recognition to a future period until the Company performs its obligations under these arrangements. Amounts are recorded as accounts receivable when the Company’s right to consideration is unconditional. As of June 30, 2020, deferred revenue was immaterial.

The Company has agreements with DePuy Synthes Mitek Sports Medicine, a division of DePuy Orthopaedics, Inc. (“Mitek”) that include the grant of certain licenses, performance of development services, and supply of product. Revenues from the agreements with Mitek represent 54% of total Company revenues for the three- and six-month periods ended June 30, 2020. The Company has agreements with other customers that may include the delivery of a license and supply of product.

Product and Total Revenue

Historically, the Company categorized its product offerings into four product families: Orthobiologics, Dermal, Surgical, and Other, which included its ophthalmic and veterinary products. As a result of the Company’s acquisitions of Parcus Medical and Arthrosurface during the first quarter of 2020, the Company now divides the product portfolio into three product families: Joint Pain Management, Orthopedic Joint Preservation and Restoration, and Other.

Product revenue by product family was as follows: 

	Three Months Ended June 30,				Six Months Ended June 30,
	2020		2019		2020		2019
Joint pain management	$	22,247	$	26,632	$	47,730	$	49,482
Orthopedic joint preservation and restoration		6,622		802		14,518		966
Other		1,809		2,979		3,827		4,682
	$	30,678	$	30,413	$	66,075	$	55,130

Total revenue by geographic location was as follows:

	Three Months Ended June 30,
	2020					2019
	Total		Percentage of			Total		Percentage of
	Revenue		Revenue			Revenue		Revenue
Geographic Location:
United States	$	25,133		82	%	$	22,937		76%
Europe		2,910		9	%		4,927		16%
Other		2,635		9	%		2,554		8%
Total	$	30,678		100	%	$	30,418		100%

	Six Months Ended June 30,
	2020					2019
	Total		Percentage of			Total		Percentage of
	Revenue		Revenue			Revenue		Revenue
Geographic Location:
United States	$	51,438		78	%	$	43,026		78%
Europe		8,186		12	%		7,454		14%
Other		6,451		10	%		4,661		8%
Total	$	66,075		100	%	$	55,141		100%