Product and Geographic Sales

6 Months Ended

Jun. 30, 2022

Segment Reporting [Abstract]

Product and Geographic Sales

4. Product and Geographic Sales

The Company generates revenue through the sale of Advanced Wound Care and Surgical & Sports Medicine products. There is a single performance obligation in all of the Company’s contracts, which is the Company’s promise to transfer the Company’s products to customers based on specific payment and shipping terms in the arrangement. The entire transaction price reflects a single performance obligation. Product revenue is recognized when a customer obtains control of the Company’s products which occurs at a point in time and may be upon shipment, procedure date, or delivery, based on the terms of the contract. Revenue is recorded net of a reserve for returns, discounts and GPO rebates, which represent a direct reduction to the revenue recognized. These reductions are accrued at the time revenue is recognized, based upon historical experience and specific circumstances. For the three months ended June 30, 2022 and 2021, the Company recorded GPO fees of $2,334 and $829, respectively, as a direct reduction of revenue. For the six months ended June 30, 2022 and 2021, the Company recorded GPO fees of $3,953 and $1,529, respectively, as a direct reduction of revenue.

In August 2022, the Company reached an agreement with a GPO to settle previously disputed GPO fees for $3,300. The settlement fee was included in the GPO fees as a direct reduction of revenue. The Company recorded $1,600 of the settlement fee during the three months ended June 30, 2022, and has revised the historical financial statements to include $1,000 of the settlement fee in the three months ended March 31, 2022 and $700 of the settlement fee during the year ended December 31, 2021. As such, the previously issued financial statements were revised accordingly. See Note "2. Summary of Significant Accounting Policies".

The following tables set forth revenue by product category:

	Three Months Ended June 30,
	2022		2021
Advanced Wound Care	$	113,791	$	111,436
Surgical & Sports Medicine		7,610		11,760
Total net revenue	$	121,401	$	123,196

	Six Months Ended June 30,
	2022		2021
Advanced Wound Care	$	203,881	$	202,144
Surgical & Sports Medicine		14,637		23,604
Total net revenue	$	218,518	$	225,748

For all periods presented, net revenue generated outside the United States represented less than 1% of total net revenue.