Note 13 - Revenue and Geographic Information

12 Months Ended

Dec. 31, 2024

Notes to Financial Statements

Revenue from Contract with Customer [Text Block]

13. Revenue and Geographic Information

During the year ended December 31, 2024, the Company changed its classification of revenue. The Company previously disclosed revenue in 3 categories: OA Pain Management, Joint Preservation and Restoration and Non-Orthopedic. As a result of a change in strategic focus made in 2024, revenue classification was delineated to provide a clear view to the Company’s value drivers. Revenue will be split between the Commercial Channel and the Original Equipment Manufacturer (“OEM”) Channel. In the Commercial Channel, the Company has full responsibility for sales, marketing, and pricing of products through its commercial leaders, direct sales representatives, and independent distributors. Revenue from our Regenerative Solutions and international OA Pain Management businesses is included in the Commercial Channel. In the OEM Channel, the Company is responsible for development and manufacturing of products sold to the Company’s OEM partners governed by long-term agreements, but the Company does not control sales, marketing, or pricing with end users. Revenue from the Company’s U.S. OA Pain Management business and the Non-Orthopedic business is now included in the OEM Channel. All other revenue is reported in the Commercial Channel.

Product revenue by product family is as follows:

	Years Ended December 31,
	2024					2023					2022
	Revenue		Percentage of Product Revenue			Revenue		Percentage of Product Revenue			Revenue		Percentage of Product Revenue
OEM Channel	$	77,770		65	%	$	84,645		70	%	$	81,675		72	%
Commercial Channel		42,137		35	%		36,147		30	%		32,152		28	%
Total	$	119,907		100	%	$	120,792		100	%	$	113,827		100	%

Product revenue from the Company’s sole significant customer, J&J MedTech, as a percentage of the Company’s total product revenue was 57%, 62%, and 60% for the years ended December 31, 2024, 2023, and 2022, respectively.

Total revenue by geographic location based on the location of the customer in total and as a percentage of total revenue are as follows:

	Years Ended December 31,
	2024					2023					2022
	Total		Percentage of			Total		Percentage of			Total		Percentage of
	Revenue		Revenue			Revenue		Revenue			Revenue		Revenue
Geographic Location:
United States	$	82,446		69	%	$	86,911		72	%	$	83,746		74	%
Europe		19,403		16	%		17,313		14	%		17,227		15	%
Other		18,058		15	%		16,568		14	%		12,854		11	%
Total	$	119,907		100	%	$	120,792		100	%	$	113,827		100	%

Net long-lived assets, consisting primarily of net property and equipment, are subject to geographic risks because they are generally difficult to move and to effectively utilize in another geographic area in a reasonable time period and because they are relatively illiquid. Net tangible long-lived assets by principal geographic areas are as follows:

	As of December 31,
	2024		2023
United States	$	37,964	$	36,324
Italy		1,001		1,075
United Kingdom		29		46
Total	$	38,994	$	37,445