Note 3 - Inventories and Other Deferred Costs

9 Months Ended

Sep. 30, 2021

Notes to Financial Statements

Inventory and Other Deferred Costs Disclosure [Text Block]

3. Inventories and Other Deferred Costs

Inventories and other deferred costs consist of the following:

	September 30, 2021		December 31, 2020
	(in thousands)
Raw materials	$	4,688	$	5,044
Work-in-process		10,589		6,004
Finished products		23,521		28,117
Other deferred costs		5,528		5,950
Total inventory and other deferred costs	$	44,326	$	45,115

We had inventory on consignment at customer sites of $2.0 million and $2.1 million at September 30, 2021 and December 31, 2020, respectively.

Other deferred costs relate to our RestoreFlow allograft offering and include costs incurred for the preservation of human tissues available for shipment, tissues currently in active processing, and tissues held in quarantine pending release to implantable status. By United States federal law, human tissues cannot be bought or sold. Therefore, the vascular and cardiac tissues we preserve are not held as inventory, and the costs we incur to procure and process them are instead accumulated and deferred. These costs include fixed and variable overhead costs associated with the cryopreservation process, including primarily direct labor costs, tissue recovery fees, inbound freight charges, indirect materials and facilities costs. General and administrative expenses and selling expenses associated with the provision of these services are expensed as incurred.