Note 5 - Inventories

9 Months Ended

Sep. 30, 2020

Notes to Financial Statements

Inventory Disclosure [Text Block]

5. Inventories

Inventories consist of the following:

	September 30,		December 31,
	2020		2019
Raw materials	$	12,973	$	12,058
Work-in-process		12,372		8,330
Finished goods		35,259		8,777
Total	$	60,604	$	29,165
Inventories	$	47,882	$	21,995
Other long-term assets		12,722		7,170

The increase in inventories for the nine months ended September 30, 2020 is due to the acquisitions of Parcus Medical and Arthrosurface in January and February 2020, as discussed in Note 3.

The Company recorded an inventory reserve of $1.9 million during the three-month period ended June 30, 2020 as the Company determined it would not pursue CE mark renewals for certain legacy products, primarily for certain advanced wound care products, as a result of the Company's product rationalization efforts. The additional inventory reserve represents excess inventory which will not be sold prior to expiration of the applicable CE mark based on current projections.