Note 13 - Revenue by Product Group, by Significant Customer and by Geographic Location; Geographic Information

12 Months Ended

Dec. 31, 2020

Notes to Financial Statements

Revenue from Contract with Customer [Text Block]

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

The Company categorizes its product portfolio into three product families: Joint Pain Management, Joint Preservation and Restoration, and Other. Anika’s consolidated financial statements include results of operations for Parcus Medical from the January 24, 2020 acquisition date and Arthrosurface from the February 3, 2020 acquisition date.

      Product revenue by product group is as follows:

	Years Ended December 31,
	2020					2019					2018
	Revenue		Percentage of Product Revenue			Revenue		Percentage of Product Revenue			Revenue		Percentage of Product Revenue
Joint Pain Management	$	83,029		64	%	$	103,466		90	%	$	96,719		92	%
Joint Preservation and Restoration		39,368		30	%		2,070		2	%		1,127		1	%
Other		8,060		6	%		8,976		8	%		7,685		7	%
	$	130,457		100	%	$	114,512		100	%	$	105,531		100	%

Product revenue from the Company’s sole significant customer, Mitek, as a percentage of the Company’s total product revenue was 49%, 71%, and 73% for the years ended December 31, 2020, 2019, and 2018, 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,
	2020					2019					2018
	Total		Percentage of			Total		Percentage of			Total		Percentage of
	Revenue		Revenue			Revenue		Revenue			Revenue		Revenue
Geographic Location:
United States	$	103,182		79	%	$	90,302		79	%	$	85,351		81	%
Europe		14,179		11	%		14,744		13	%		11,730		11	%
Other		13,096		10	%		9,564		8	%		8,474		8	%
Total	$	130,457		100	%	$	114,610		100	%	$	105,555		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. In 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 Joint Preservation and Restoration and Other product groups and all geographic locations. There was no remaining revenue reserve as of December 31, 2020 and 2019.

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,
	2020		2019
United States	$	48,611	$	48,635
Italy		2,002		2,148
Total	$	50,613	$	50,783