Note 3 - Inventories and Other Deferred Costs

3 Months Ended

Mar. 31, 2023

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:

	March 31, 2023		December 31, 2022
	(in thousands)
Raw materials	$	17,695	$	14,929
Work-in-process		3,940		3,662
Finished products		27,233		26,688
Other deferred costs		4,911		4,992
Total inventory and other deferred costs	$	53,779	$	50,271

We had inventory on consignment at customer sites of $1.7 million and $1.5 million at March 31, 2023 and December 31, 2022, respectively.

In connection with our RestoreFlow allograft business, other deferred costs 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 federal law, human tissues cannot be bought or sold. Therefore, the tissues we preserve are not held as inventory, and the costs we incur to procure and process vascular tissues 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.