Revenue

6 Months Ended

Jun. 30, 2022

Revenue from Contract with Customer [Abstract]

Revenue

(2) Revenue

In the United States, we generate most of our revenue from independent commissioned sales agents. We consign our orthobiologics products to hospitals and consign or loan our spinal implant sets to the independent sales agents. The spinal implant sets typically contain the instruments, disposables, and spinal implants required to complete a surgery. Consigned sets are managed by the sales agent to service hospitals that are high volume users for multiple procedures.

We ship replacement inventory to independent sales agents to replace the consigned inventory used in surgeries. Loaned sets are returned to the Company’s distribution center, replenished, and made available to sales agents for the next surgical procedure.

For each surgical procedure, the sales agent reports use of the product by the hospital and, as soon as practicable thereafter, ensures that the hospital provides a purchase order to the Company. Upon receipt of the hospital purchase order, the Company invoices the hospital, and revenue is recognized in the proper period. Additionally, the Company sells product directly to domestic and international stocking resellers and private label resellers. Upon receipt and acceptance of a purchase order from a stocking reseller, the Company ships product and invoices the reseller. The Company recognizes revenue when control of the promised goods is transferred to the customer, in an amount that reflects the consideration the Company expects to collect in exchange for those goods or services. There is generally no customer acceptance or other condition that prevents the Company from recognizing revenue in accordance with the delivery terms for these sales transactions.

The Company operates in one reportable segment with our net revenue derived primarily from the sale of orthobiologics and spinal implant products across North America, Europe, Asia Pacific, and Latin America. Sales are reported net of returns. The following table presents revenues from these product lines for the three and six months ended June 30, 2022 and 2021 (in thousands):

	Three Months Ended		Percentage of			Three Months Ended		Percentage of
	June 30, 2022		Total Revenue			June 30, 2021		Total Revenue
Orthobiologics	$	12,402		81	%	$	11,460		77	%
Spinal implant		2,875		19	%		3,482		23	%
Other revenue		—		0	%		33		0	%
Total revenue	$	15,277		100	%	$	14,975		100	%

	Six Months Ended		Percentage of			Six Months Ended		Percentage of
	June 30, 2022		Total Revenue			June 30, 2021		Total Revenue
Orthobiologics	$	22,568		80	%	$	20,471		75	%
Spinal implant		5,659		20	%		6,980		25	%
Other revenue		9		0	%		66		0	%
Total revenue	$	28,236		100	%	$	27,517		100	%