Note 3 - Inventory and Other Deferred Costs

12 Months Ended

Dec. 31, 2024

Notes to Financial Statements

Inventory and Other Deferred Costs Disclosure [Text Block]

3. Inventory and Other Deferred Costs

Inventory and other deferred costs consisted of the following:

	December 31, 2024		December 31, 2023
	(in thousands)
Raw materials	$	19,109	$	18,333
Work-in-process		2,157		2,869
Finished products		34,676		31,131
Other deferred costs		8,985		5,747
Total inventory and other deferred costs	$	64,927	$	58,080

The Company had inventory on consignment at customer sites of $1.8 million and $2.0 million at December 31, 2024 and 2023, respectively.

In connection with the Company’s 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 the Company preserves are not held as inventory, and the costs the Company incurs 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. The Company expenses general and administrative expenses and selling expenses associated with the provision of these services as incurred.