Note 8 - Commitments and Contingencies

12 Months Ended

Dec. 31, 2024

Notes to Financial Statements

Commitments and Contingencies Disclosure [Text Block]

8. Commitments and Contingencies

Leases

The Company determines if an arrangement is a lease at inception of the contract. The Company has operating leases for buildings, primarily for office space, manufacturing and distribution, as well as automobiles and printing equipment. As of December 31, 2024, the Company had the following building and facility leases capitalized on the balance sheet:

Location (leases)	Purpose	Approx. Sq. Ft.		Expiration
Americas
Burlington, MA (4)	Corporate headquarters and manufacturing		96,476	December 2034
North Brunswick, NJ	Artegraft biologic business		16,732	October 2029
Burlington, MA	US distribution		12,878	December 2030
Fox River Grove, IL	RestoreFlow allografts business		9,754	December 2026
Fox River Grove, IL	RestoreFlow allografts business		4,878	November 2025
Vaughn, Canada	Canada sales office and distribution		3,192	February 2026
Europe, Middle East and Africa
Sulzbach, Germany	European headquarters and distribution		21,410	June 2031
Milan, Italy	Italy sales office and distribution		5,705	September 2027
Hereford, England	United Kingdom sales office and distribution		3,575	October 2029
Maisons-Alfort, France	France sales office		3,492	February 2030
Zurich, Switzerland	Switzerland sales office and distribution		2,935	February 2030
Madrid, Spain	Spain sales office		2,260	June 2029
Asia Pacific
Tokyo, Japan	Japan sales office and distribution		4,236	July 2025
Shanghai, China	China sales office and distribution		3,432	October 2027
Bangkok, Thailand	Thailand sales office and distribution		2,810	August 2026
Kensington, Australia	Australia sales office and distribution		2,551	June 2025
Seoul, Korea	Korea sales office and distribution		2,300	April 2027
Singapore	Asia Pacific headquarters and distribution		1,270	June 2026
Shanghai, China	China sales office and distribution		1,152	August 2025
Ballarat, Australia	Supply facility	Up to 350 acres		December 2030

Operating lease right-of-use (ROU) assets and operating lease liabilities are recognized based on the present value of the future lease minimum payments over the lease term at commencement date. Many of the lease agreements contain renewal or termination clauses that are factored into the determination of the lease term if it is reasonably certain that these options would be exercised. The Company recognizes lease expense for these leases on a straight-line basis over the lease term.

None of the Company’s noncancelable lease payments include non-lease components such as maintenance contracts. The Company generally reimburses the landlord for direct operating costs associated with the leased space. The Company has no subleases, and there are no residual value guarantees associated with, or restrictive covenants imposed by, any of its leases. The Company held no assets under capital leases as of December 31, 2024. The Company elected the package of practical expedients that allow it to omit leases with initial terms of 12 months or less from its balance sheet, which the Company expenses on a straight-line basis over the life of the lease.

The interest rate implicit in lease agreements is typically not readily determinable, and as such the Company used the incremental borrowing rate based on the information available at commencement date in determining the present value of future payments. The incremental borrowing rate is defined as the interest the Company would pay to borrow on a collateralized basis.

Additional information with respect to the Company’s leases is as follows:

	Year ended			Year ended
	December 31,			December 31,
	2024			2023
	(in thousands)			(in thousands)
Lease cost
Operating lease cost	$	2,895		$	2,420
Short-term lease cost		80			378
Total lease cost	$	2,975		$	2,798
Other information
Cash paid for amounts included in the measurement of operating lease liabilities	$	3,991		$	3,139
Right-of-use assets obtained in exchange for new operating lease liabilities	$	1,637		$	4,813
Weighted average remaining lease term - operating leases (in years)		6.5			7.3
Weighted average discount rate - operating leases		6.63	%		6.57	%

As of December 31, 2024, the minimum noncancelable operating lease rental commitments with initial or remaining terms of more than one year are as follows:

Year ending December 31,
2025	$	3,775
2026		3,204
2027		2,731
2028		2,608
2029		2,555
Thereafter		8,524
Adjustment to net present value as of December 31, 2024		(5,484	)
Minimum noncancelable lease liability	$	17,913

Purchase Commitments

As part of the Company’s normal course of business, the Company has commitments to purchase approximately $17.5 million of inventory through 2025. These purchases are to be used in the normal course of business and do not represent excess commitments or loss contracts.