0001376339-20-000147 | 10-Q | XBRL Viewer

Cover - shares	9 Months Ended
Cover - shares	Sep. 30, 2020	Oct. 26, 2020
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Sep. 30, 2020
Document Transition Report	false
Entity File Number	001-35887
Entity Registrant Name	MIMEDX GROUP, INC.
Entity Incorporation, State or Country Code	FL
Entity Tax Identification Number	26-2792552
Entity Address, Address Line One	1775 West Oak Commons Ct NE
Entity Address, City or Town	Marietta
Entity Address, State or Province	GA
Entity Address, Postal Zip Code	30062
City Area Code	770
Local Phone Number	651-9100
Title of 12(b) Security	Common Stock, par value $0.001 per share
Trading Symbol	MDXG
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		111,045,418
Entity Central Index Key	0001376339
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2020
Document Fiscal Period Focus	Q3
Amendment Flag	false

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Current assets:
Cash and cash equivalents	$ 109,595	$ 69,069
Accounts receivable, net	33,042	32,327
Inventory, net	11,023	9,104
Prepaid expenses	1,492	6,669
Income tax receivable	10,853	18
Other current assets	5,469	6,058
Total current assets	171,474	123,245
Property and equipment, net	10,255	12,328
Right of use asset	4,031	3,397
Goodwill	19,976	19,976
Intangible assets, net	7,168	7,777
Other assets	420	443
Total assets	213,324	167,166
Current liabilities:
Accounts payable	9,049	8,710
Accrued compensation	18,528	21,302
Accrued expenses	28,363	32,161
Current portion of long term debt	0	3,750
Other current liabilities	1,357	1,399
Total current liabilities	57,297	67,322
Long term debt, net	47,627	61,906
Other liabilities	4,422	3,540
Total liabilities	109,346	132,768
Commitments and contingencies (Note 13)
Convertible preferred stock Series B; $.001 par value; 100,000 shares authorized, issued and outstanding at September 30, 2020 and 0 authorized, issued and outstanding at December 31, 2019	91,108	0
Stockholders' equity:
Preferred stock Series A; $.001 par value; 5,000,000 shares authorized; 0 issued and 0 outstanding at September 30, 2020 and 0 issued and 0 outstanding at December 31, 2019	0	0
Common stock; $.001 par value; 150,000,000 shares authorized; 112,703,926 issued and 110,591,734 outstanding at September 30, 2020 and 112,703,926 issued and 110,818,649 outstanding at December 31, 2019	113	113
Additional paid-in capital	158,318	147,231
Treasury stock at cost; 2,112,192 shares at September 30, 2020 and 1,885,277 shares at December 31, 2019	(10,717)	(10,806)
Accumulated deficit	(134,844)	(102,140)
Total stockholders' equity	12,870	34,398
Total liabilities, convertible preferred stock, and stockholders’ equity	$ 213,324	$ 167,166

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - $ / shares	Sep. 30, 2020	Dec. 31, 2019
LIABILITIES, CONVERTIBLE PREFERRED STOCK, AND STOCKHOLDERS’ EQUITY
Convertible preferred stock par value (in dollars per share)	$ 0.001	$ 0.001
Convertible preferred stock, shares authorized (in shares)	100,000	100,000
Convertible preferred stock, shares issued (in shares)	0	0
Convertible preferred stock, shares outstanding (in shares)	0	0
Stockholders' equity:
Preferred stock par value (in dollars per share)	$ 0.001	$ 0.001
Preferred stock, shares authorized (in shares)	5,000,000	5,000,000
Preferred stock, shares issued (in shares)	0	0
Preferred stock, shares outstanding (in shares)	0	0
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, shares authorized (in shares)	150,000,000	150,000,000
Common stock, shares issued (in shares)	112,703,926	112,703,926
Common stock, shares outstanding (in shares)	110,591,734	110,818,649
Treasury stock, shares (in shares)	2,112,192	1,885,277

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Income Statement [Abstract]
Net sales	$ 64,303	$ 88,863	$ 179,686	$ 222,855
Cost of sales	10,289	13,205	28,513	30,372
Gross profit	54,014	75,658	151,173	192,483
Operating expenses:
Selling, general and administrative	48,046	51,258	132,316	152,761
Investigation, restatement and related	12,027	7,242	39,065	46,374
Research and development	3,372	2,691	8,281	8,421
Amortization of intangible assets	276	269	818	769
Impairment of intangible assets	0	0	0	446
Operating (loss) income	(9,707)	14,198	(29,307)	(16,288)
Other (expense) income, net
Loss on extinguishment of debt	(8,201)	0	(8,201)	0
Interest expense, net	(1,472)	(2,255)	(6,433)	(2,313)
Other income (expense), net	1	127	(2)	272
(Loss) income before income tax provision	(19,379)	12,070	(43,943)	(18,329)
Income tax provision (expense) benefit	(38)	309	11,239	225
Net (loss) income	(19,417)	12,379	(32,704)	(18,104)
Net (loss) income available to common stockholders (Note 9)	$ (51,982)	$ 12,379	$ (65,269)	$ (18,104)
Net loss per common share - basic (in dollars per share)	$ (0.48)	$ 0.12	$ (0.60)	$ (0.17)
Net loss per common share - diluted (in dollars per share)	$ (0.48)	$ 0.11	$ (0.60)	$ (0.17)
Weighted average shares outstanding - basic (in shares)	108,493,208	107,157,561	108,222,419	106,929,643
Weighted average shares outstanding - diluted (in shares)	108,493,208	109,590,008	108,222,419	106,929,643

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Unaudited) - USD ($)	Total	Common Stock	Additional Paid-in Capital	Treasury Stock	Deficit
Balance (in shares) at Dec. 31, 2018		112,703,926		3,605,263
Balance, beginning of period at Dec. 31, 2018	$ 49,655,000	$ 113,000	$ 164,744,000	$ (38,642,000)	$ (76,560,000)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Deemed dividends	0
Share-based compensation expense	9,198,000		9,198,000
Exercise of stock options	108,000		(1,343,000)	$ 1,451,000
Exercise of stock options (in shares)				(150,000)
Issuance of restricted stock	0		(35,740,000)	$ 35,740,000
Issuance of restricted stock (in shares)				(2,853,235)
Restricted stock cancellation/forfeited	0		6,788,000	$ (6,788,000)
Restricted stock cancellation/forfeited (in shares)				722,227
Shares repurchased for tax withholding (in shares)				394,140
Shares repurchased for tax withholding	(1,282,000)			$ (1,282,000)
Net (loss) income	(18,104,000)				(18,104,000)
Balance (in shares) at Sep. 30, 2019		112,703,926		1,718,395
Balance, end of period at Sep. 30, 2019	39,575,000	$ 113,000	143,647,000	$ (9,521,000)	(94,664,000)
Balance (in shares) at Jun. 30, 2019		112,703,926		1,155,034
Balance, beginning of period at Jun. 30, 2019	24,684,000	$ 113,000	136,298,000	$ (4,684,000)	(107,043,000)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Share-based compensation expense	2,685,000		2,685,000
Restricted stock cancellation/forfeited	0		4,664,000	$ (4,664,000)
Restricted stock cancellation/forfeited (in shares)				530,274
Shares repurchased for tax withholding (in shares)				33,087
Shares repurchased for tax withholding	(173,000)			$ (173,000)
Net (loss) income	12,379,000				12,379,000
Balance (in shares) at Sep. 30, 2019		112,703,926		1,718,395
Balance, end of period at Sep. 30, 2019	39,575,000	$ 113,000	143,647,000	$ (9,521,000)	(94,664,000)
Balance (in shares) at Dec. 31, 2019		112,703,926		1,885,277
Balance, beginning of period at Dec. 31, 2019	34,398,000	$ 113,000	147,231,000	$ (10,806,000)	(102,140,000)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of Series B Convertible Preferred Stock	32,954,000		32,954,000
Deemed dividends	(31,568,000)		(31,568,000)
Share-based compensation expense	11,829,000		11,829,000
Exercise of stock options	370,000		(1,986,000)	$ 2,356,000
Exercise of stock options (in shares)				(265,300)
Issuance of restricted stock	0		(2,939,000)	$ 2,939,000
Issuance of restricted stock (in shares)				(328,894)
Restricted stock cancellation/forfeited	0		2,650,000	$ (2,650,000)
Restricted stock cancellation/forfeited (in shares)				345,052
Shares repurchased for tax withholding (in shares)				476,057
Shares repurchased for tax withholding	(2,409,000)		147,000	$ (2,556,000)
Net (loss) income	(32,704,000)				(32,704,000)
Balance (in shares) at Sep. 30, 2020		112,703,926		2,112,192
Balance, end of period at Sep. 30, 2020	12,870,000	$ 113,000	158,318,000	$ (10,717,000)	(134,844,000)
Balance (in shares) at Jun. 30, 2020		112,703,926		2,412,522
Balance, beginning of period at Jun. 30, 2020	22,860,000	$ 113,000	151,625,000	$ (13,451,000)	(115,427,000)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of Series B Convertible Preferred Stock	32,954,000		32,954,000
Deemed dividends	(31,568,000)		(31,568,000)
Share-based compensation expense	8,048,000		8,048,000
Exercise of stock options	72,000		(328,000)	$ 400,000
Exercise of stock options (in shares)				(45,000)
Issuance of restricted stock	0		(2,939,000)	$ 2,939,000
Issuance of restricted stock (in shares)				(328,894)
Restricted stock cancellation/forfeited	0		526,000	$ (526,000)
Restricted stock cancellation/forfeited (in shares)				59,441
Shares repurchased for tax withholding (in shares)				14,123
Shares repurchased for tax withholding	(79,000)			$ (79,000)
Net (loss) income	(19,417,000)				(19,417,000)
Balance (in shares) at Sep. 30, 2020		112,703,926		2,112,192
Balance, end of period at Sep. 30, 2020	$ 12,870,000	$ 113,000	$ 158,318,000	$ (10,717,000)	$ (134,844,000)

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019
Cash flows from operating activities:
Net loss	$ (32,704)	$ (18,104)
Adjustments to reconcile net loss to net cash flows used in operating activities:
Effect of change in revenue recognition	0	(17,382)
Share-based compensation	11,452	9,199
Loss on extinguishment of debt	8,201	0
Depreciation	4,494	4,981
Amortization of intangible assets	818	769
Amortization of deferred financing costs	1,811	752
Bad debt expense	616	0
Non-cash lease expenses	702	714
Reserve for inventory obsolescence	(171)	413
Loss on fixed asset disposal	0	318
Impairment of intangible assets	0	1,258
Increase (decrease) in cash resulting from changes in:
Accounts receivable	(1,331)	0
Inventory	(1,748)	3,539
Prepaid expenses	5,177	4,778
Income taxes	(10,835)	(389)
Other assets	1,633	(3,515)
Accounts payable	339	(5,444)
Accrued compensation	(2,775)	(1,948)
Accrued expenses	(4,835)	5,596
Other liabilities	(840)	(1,825)
Net cash flows used in operating activities	(19,996)	(16,290)
Cash flows from investing activities:
Purchases of equipment	(2,073)	(1,055)
Principal payments from note receivable	0	2,722
Patent application costs	(209)	(370)
Net cash flows (used in) provided by investing activities	(2,282)	1,297
Cash flows from financing activities:
Proceeds from exercise of stock options	370	108
Stock repurchased for tax withholdings on vesting of restricted stock	(2,409)	(1,283)
Deferred financing cost	(2,782)	(6,640)
Proceeds from term loans	59,500	72,750
Repayment of term loans	(83,872)	(938)
Prepayment premium on early repayment of term loan	(1,439)	0
Proceeds from sale of Series B convertible preferred stock	100,000	0
Stock issuance costs	(6,564)	0
Net cash flows provided by financing activities	62,804	63,997
Net change in cash	40,526	49,004
Cash and cash equivalents, beginning of period	69,069	45,118
Cash and cash equivalents, end of period	$ 109,595	$ 94,122

Nature of Business	9 Months Ended
Nature of Business	Sep. 30, 2020
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Nature of Business	Nature of Business MiMedx Group, Inc. (together with its subsidiaries, except where the context otherwise requires, “MiMedx,” or the “Company”) is an advanced wound care and emerging therapeutic biologics company, developing and distributing human placental tissue allografts with patent-protected processes for multiple sectors of healthcare. The Company derives its products from human placental tissues processed using proprietary processing methodologies. The Company’s mission is to offer products and tissues to help the body heal itself. All of the Company’s products are regulated by the United States Food and Drug Administration (“FDA”). MiMedx is the leading supplier of human placental allografts, which are human tissues that are transplanted from one person (a donor) to another person (a recipient). The Company operates in one business segment, Regenerative Biomaterials, which includes the design, manufacture, and marketing of products and tissue processing services for the wound care, burn, surgical, orthopedic, spine, sports medicine, ophthalmic and dental sectors of healthcare. Its biomaterial platform technologies include AmnioFix®, EpiFix®, EpiCord®, AmnioCord® and AmnioFill® brands. AmnioFix and EpiFix are tissue allografts derived from amnion and chorion layers of human placental membrane; EpiCord and AmnioCord are tissue allografts derived from umbilical cord tissue. AmnioFill is a placental connective tissue matrix, derived from the placental disc and other placental tissue. The Company’s business model is focused primarily on the United States of America but the Company is exploring potential future international expansion opportunities. Effect of COVID-19 Pandemic On March 11, 2020, the World Health Organization designated the outbreak of a novel strain of coronavirus (“COVID-19”) as a global pandemic (the “Pandemic” or “COVID-19 Pandemic”).The COVID-19 Pandemic and associated governmental and societal responses have affected the Company’s business, results of operations and financial condition. The continuation or additional waves of the outbreak of COVID-19 or the outbreak of other health epidemics could harm the Company’s operations and increase the Company’s costs and expenses in numerous ways. The ultimate impact of the Pandemic is highly uncertain and subject to change. The Company does not yet know the full extent of delays or impacts on the business, clinical trials, healthcare systems or the global economy as a whole, or how long such effects will endure. The effects of the Pandemic or other health epidemics could continue to have an adverse impact on the Company’s business, results of operations and financial condition in the future. On March 27, 2020, the Coronavirus Aid, Relief and Economic Security Act (the “CARES Act”) was signed into law. The CARES Act includes provisions relating to refundable payroll tax credits, deferment of employer portion of certain payroll taxes, loans, and grants to certain businesses, net operating loss carryback periods, alternative minimum tax credit refunds, modifications to the net interest deduction limitations and technical corrections to tax depreciation methods for qualified improvement property. As a result of the CARES Act, the Company expects a federal tax refund of approximately $11.3 million and has recognized as an income tax benefit of the same amount. The income tax benefit was recognized due to the release of a previously-recorded valuation allowance.

Significant Accounting Policies

9 Months Ended

Sep. 30, 2020

Accounting Policies [Abstract]

Significant Accounting Policies

Please see Note 3 to the Company’s Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2019 and filed with the Securities and Exchange Commission (“SEC”) on July 6, 2020 (the “2019 Form 10-K”) for a description of all significant accounting policies.

Basis of Presentation

The unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) from interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation of the results of operations for the periods presented have been included. The operating results for the three and nine months ended September 30, 2020 and 2019 are not necessarily indicative of the results that may be expected for the fiscal year. The balance sheet as of December 31, 2019, was derived from the audited consolidated financial statements at that date, but does not include all of the information and footnotes required by GAAP for complete financial statements.

These unaudited condensed consolidated financial statements should be read in conjunction with the historical consolidated financial statements of the Company included in the 2019 Form 10-K.

Use of Estimates

The unaudited condensed consolidated financial statements have been prepared in accordance with GAAP. Conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the unaudited condensed consolidated financial statements and the reported unaudited condensed consolidated statements of operations during the reporting period. Actual results could differ from those estimates. Significant estimates include estimated useful lives and potential impairment of property and equipment and intangible assets, estimates for contingent liabilities, the measurement of right-of-use assets and lease liabilities, management’s assessment of the Company’s ability to continue as a going concern, estimates of fair value of share-based payments, and valuation of deferred tax assets.

In addition to the above, the Company has considered the potential effects of the COVID-19 Pandemic with respect to determinations surrounding impairments, increases in allowances for credit losses, other expenses, and changes in accounting judgments that have or are reasonably likely to have a material impact on the unaudited condensed consolidated financial statements.

Principles of Consolidation

The unaudited condensed consolidated financial statements include the accounts of MiMedx Group, Inc. and its wholly-owned subsidiaries. All intercompany balances and transactions have been eliminated upon consolidation.

Cash and Cash Equivalents

Cash and cash equivalents include cash and Federal Deposit Insurance Corporation (“FDIC”) insured certificates of deposit held at various banks with an original maturity of three months or less.

Accounts Receivable

Accounts receivable represent amounts due from customers for which revenue has been recognized. Generally, the Company does not require collateral or any other security to support its receivables.

The allowance for doubtful accounts is the Company’s best estimate of the amount of probable credit losses in the Company’s existing receivables. The Company determines the allowance based on factors such as historical collection experience, customers’ current creditworthiness, customer concentrations, age of accounts receivable and general economic conditions that may affect customers’ ability to pay.

The Company’s allowance for doubtful accounts was $0.6 million and $0 as of September 30, 2020 and December 31, 2019, respectively.

Notes Receivable

Notes receivable represent formal payment agreements with customers which generally arise in situations where amounts shipped and billed have aged significantly as well as the promissory note issued by Stability Biologics, LLC (“Stability’’) as part of the divestiture of Stability in 2017. The promissory note from Stability was paid in full in the three months ended September 30, 2019. The Company’s notes receivable are included in other current and long-term assets in the unaudited condensed consolidated balance sheets and were valued taking into consideration cost of the market participant inputs, market conditions, liquidity, operating results and other qualitative factors.

Inventories

Inventories are valued at the lower of cost or net realizable value and are derecognized through cost of sales using the first-in, first-out (“FIFO”) method. Inventory is tracked through raw material, work-in-process, and finished good stages as the product progresses through various production steps and stocking locations. Labor and overhead costs are absorbed through the various production processes until the work order closes. Historical yields and normal capacities are utilized in the calculation of production overhead rates. Reserves for inventory obsolescence are utilized to account for slow-moving inventory as well as inventory no longer needed due to diminished market demand.

Goodwill

Goodwill represents the excess of purchase price over the fair value of net assets of acquired businesses. The Company assesses the recoverability of its goodwill at least annually on September 30 and whenever events or substantive changes in circumstances indicate that the asset may be impaired. The Company may first choose to assess qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If the Company determines that it is more likely than not that the fair value of a reporting unit is less than its carrying amount, then the Company performs a quantitative analysis. The Company may also choose to bypass the qualitative assessment and proceed directly to the quantitative analysis.

As of September 30, 2020, the Company concluded it operates as one reporting unit.

Under the quantitative test, if the carrying value of the reporting unit exceeds its fair value, goodwill impairment is recognized for the amount which the carrying value exceeds fair value, not to exceed the total amount of goodwill allocated to the reporting unit. The Company determines fair value using income and market approaches. Under the income approach, the fair value of the Company is the present value of its future economic benefits. These benefits can include revenue, cost savings, tax deductions, and proceeds from its disposition. Value indications are developed by discounting expected cash flows to their present value at a rate of return that incorporates the risk-free rate for the use of funds, industry trends, and entity-specific risks as of the goodwill impairment testing date. Under the market approach, the Company uses observed fair values of a set of companies with comparable business models to the reporting unit under evaluation for purposes of determining the fair value of the reporting unit. These amounts are reconciled to the Company’s market capitalization as of the test date for reasonableness.

For the goodwill impairment test performed on September 30, 2020, the Company performed a quantitative test for its reporting unit, concluding that the fair value exceeded the carrying value. Therefore, no goodwill impairment was recognized for the three or nine months ended September 30, 2020.

Revenue Recognition

The Company sells its products primarily to individual customers and independent distributors (collectively referred to as “customers”). During the nine months ended September 30, 2019, the Company’s control environment was such that it created uncertainty surrounding all of its customer arrangements, which required consideration related to the proper revenue recognition under the applicable literature. The control environment allowed for the existence of extra-contractual or undocumented terms or arrangements initiated by or agreed to by the Company and former members of Company management at the outset of the transactions (side agreements). Concessions were also agreed to subsequent to the initial sale (e.g. sales above established customer credit limits extended and unusually long payment terms, return or exchange rights, and contingent payment obligations) that called into question the ability to recognize revenue at the time that product was shipped to a customer.

As a result, the Company’s application of the applicable revenue recognition guidance varies for the three and nine months ended September 30, 2020 as compared to the three and nine months ended September 30, 2019. Additionally, the Company changed its pattern of revenue recognition effective October 1, 2019. The application of the relevant revenue recognition guidance and the pattern of revenue recognition are further discussed below for each period presented.

Three and Nine Months Ended September 30, 2019

The Company follows Accounting Standards Codification (“ASC”) Topic 606, Revenue from Contracts with Customers (“ASC 606”) which establishes principles for reporting information about the nature, amount, timing and uncertainty of revenue and cash flows arising from the entity’s contracts to provide goods or services to customers. The core principle requires an entity to recognize revenue to depict the transfer of goods or services to customers in an amount that reflects the consideration that it expects to be entitled to receive in exchange for those goods or services recognized as performance obligations are satisfied.

The Company’s inability to fulfill these criteria (the “Step 1 Criteria”) was due to uncertainties of contractual adjustments with customers created by a combination of an inappropriate tone at the top and extra-contractual arrangements. Consequently, the Company concluded that it did not meet the Step 1 Criteria upon shipment of the product. Subsequent to the shipment of product, uncertainties surrounding contractual adjustment were not resolved until either: (1) the customer returned the product prior to payment; or (2) the Company received payment from the customer. At that point, the Company determined that an accounting contract existed and the performance obligations of the Company to deliver product and the customer to pay for the product were satisfied. The Company determined the transaction price of its contracts to equal the amount of consideration received from customers less the amount expected to be refunded or credited to customers, which is recognized as a refund liability that is updated at the end of each reporting period for changes in circumstances. The refund liability is included within accrued expenses in the unaudited condensed consolidated balance sheet.

Transition and the Three and Nine Months Ended September 30, 2020

Beginning October 1, 2019, for all new customer arrangements, the Company determined adequate measures were in place to understand the terms of its contracts with customers. As such, beginning October 1, 2019, the Company concluded that the criteria under ASC 606 would be met prior to shipment of product to the customer or implantation of the products on consignment. For all customer transactions concluded to meet the Step 1 Criteria, the Company then assessed the remaining criteria of ASC 606 to determine the proper timing of revenue recognition.

For the remaining customer arrangements at September 30, 2019 (the “Remaining Contracts”), the Company concluded that due to the uncertainty that extracontractual arrangement may continue the Step 1 Criteria would not be satisfied until the Company receives payment from the customer. At that point, the Company determined that an accounting contract would exist and the performance obligations of the company to deliver product and the customer to pay for the product would be satisfied.

As of September 30, 2020, upon reassessment, the Company concluded that the Step 1 Criteria continued not to be met with respect to the Remaining Contracts due to the same circumstances described above. The amount of sales related to these Remaining Contracts which have not been recognized as of September 30, 2020 and December 31, 2019 was $1.8 million and $9.0 million, respectively. These amounts are not recognized on the unaudited condensed consolidated balance sheet as of September 30, 2020 or December 31, 2019.

In addition, the Company continued to defer the cost of sales for the Remaining Contracts for which revenue recognition criteria have not been met. These amounts were recorded within other current assets on the unaudited condensed consolidated balance sheet in the amounts of $0.2 million and $1.3 million as of September 30, 2020 and December 31, 2019, respectively.

A rollforward of this activity from September 30, 2019 to September 30, 2020, along with the deferred cost of sales associated with such unrecognized sales, is presented in the following table (amounts in thousands):



	Amounts Invoiced and Not Collected			Deferred Cost of Sales
Amounts as of September 30, 2019	$	48,883		$	6,415
Revenue recognized related to amounts invoiced and not collected at September 30, 2019:
Transition Adjustment during the three months ended September 30, 2019	(21,385		)	(2,565		)
Cash collected during the three months ended December 31, 2019 related to the Remaining Contracts	(8,219		)	(1,151		)
Write-off of customer contracts where collection is no longer reasonably assured as of September 30, 2019	(10,273		)	(1,438		)
Amounts as of December 31, 2019	9,006			1,261
Revenue recognized related to amounts invoiced and not collected at September 30, 2019:
Cash collected during the nine months ended September 30, 2020 related to the Remaining Contracts	(7,240		)	(1,014		)
Amounts as of September 30, 2020	$	1,766		$	247

Under ASC 606, the Company recognizes revenue following the five-step model: (i) identify the contracts with a customer (the Step 1 Criteria); (ii) identify the performance obligations in the contract; (iii) determine the transaction price; (iv) allocate the transaction price to the performance obligations in the contract; and (v) recognize revenue when (or as) the entity satisfies a performance obligation. As noted above, during the third quarter of 2019, the Company determined that they had met the Step 1 Criteria. The Company also determined that the performance obligation was met upon delivery of the product to the customer, or at the time the product is implanted for products on consignment, at which point the Company determined it would collect the consideration it is entitled to in exchange for the product transferred to the customer. As a result, the Company recognizes as revenue the amount of the transaction price that is allocated to the respective performance obligation when (or as) the performance obligation is satisfied, generally upon shipment of the product to the customer. The nature of the Company’s contracts gives rise to certain types of variable consideration, including rebates and other discounts. The Company includes estimated amounts of variable consideration in the transaction price to the extent that it is probable there will not be a significant reversal of revenue. Estimates are based on historical or anticipated performance. The Company does have consignment agreements with several customers and distributors which allow the Company to better market its products by moving them closer to the end user. In these cases, the Company determined that it has fulfilled its performance obligation once control of the product has been delivered to the customer, which occurs simultaneously with the product being implanted.

The Company acts as the principal in all of its customer arrangements and, therefore, records revenue on a gross basis. Shipping is considered immaterial in the context of the overall customer arrangement and damages or loss of goods in transit are rare. Therefore, shipping is not deemed a separately recognized performance obligation. The Company maintains a returns policy that allows its customers to return product that is consigned, damaged, non-conforming, ordered in error, or due to a recall. The estimate of the provision for returns is based upon historical experience with actual returns. The Company’s payment terms for customers are typically 30 to 60 days from receipt of title of the goods.

GPO Fees

The Company sells to Group Purchasing Organization (“GPO”) members who transact directly with the Company at GPO-agreed pricing. GPOs are funded by administrative fees that are paid by the Company. These fees are set as a percentage of the purchase volume, which is typically 3% of sales made to the GPO members. The Company presents the administrative fees paid to GPOs as a reduction of revenues because the benefit received by the Company in exchange for the GPO fees is not sufficiently separable from the GPO member’s purchase of the Company’s products.

Cost of Sales

Cost of sales includes all costs directly related to bringing the Company’s products to their final selling destination. Amounts include direct and indirect costs to manufacture products including raw materials, personnel costs, and direct overhead expenses necessary to convert collected tissues into finished goods, product testing costs, quality assurance costs, facility costs associated with the Company’s manufacturing and warehouse facilities, depreciation, freight charges, costs to operate equipment and other shipping and handling costs for products shipped to customers.

Leases

The Company determines if an arrangement is, or contains, a lease at inception. Right-of-use assets and the related liabilities result from operating leases which were included in Right of use asset, Other current liabilities and Other liabilities, respectively.

Operating lease assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. Operating lease assets and liabilities are recognized at the lease commencement date based on the estimated present value of lease payments over the lease term. The lease term used in the calculation includes options to extend or terminate the lease when the exercise of such options are reasonably certain. The determination of whether the Company is reasonably certain to exercise a renewal or termination option is reassessed as new information arises and is accounted for prospectively as of the point in time the determination is made regarding the modification of the lease term. The Company uses its incremental borrowing rate in determining the present value of lease payments.

Variable components of the lease payments such as fair market value adjustments, utilities, and maintenance costs are expensed as incurred and not included in determining the present value of lease liabilities. As an accounting policy election, the Company excludes short-term leases having initial terms of 12 months or fewer. Lease expense is recognized on a straight-line basis over the lease term.

See Note 5, “Leases” for further information regarding lease obligations.

Patent Costs

The Company incurs certain legal and related costs in connection with patent applications for tissue-based products and processes. The Company capitalizes such costs to be amortized over the expected life of the patent to the extent that an economic benefit is anticipated from the resulting patent or alternative future use is available to the Company and are included in Intangible Assets in the Condensed Consolidated Balance Sheets. The Company capitalized approximately $0.2 million and $0.4 million of patent costs during the nine months ended September 30, 2020 and 2019, respectively.

Treasury Stock

The Company accounts for the purchase of treasury stock under the cost method. Treasury stock which is reissued for the exercise of option grants and the issuance of restricted stock grants is accounted for on a FIFO basis.

Recently Issued and Adopted Accounting Standards

In June 2016, the FASB issued Accounting Standards Updated (“ASU”) 2016-13, “Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments,” that introduces a new model for recognizing credit losses on financial instruments based on an estimate of current expected credit losses. This includes accounts receivable, trade receivables,

loans, held-to-maturity debt securities, net investments in leases and certain off-balance sheet credit exposures. The guidance also modifies the impairment model for available-for-sale debt securities. The ASU is effective for fiscal years and interim periods within those fiscal years beginning after December 15, 2019. The Company adopted this ASU on January 1, 2020 using a modified retrospective transition method which requires a cumulative-effect adjustment to the opening balance of retained earnings to be recognized on the date of adoption with no change to financial results reported in prior periods. The cumulative effect adjustment recorded on January 1, 2020 is not material. The adoption of this ASU did not have a significant impact on the Company’s condensed consolidated financial statements and related disclosures.

In August 2020, the FASB issued ASU 2020-06, “Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity,” which simplifies and clarifies certain calculation and presentation matters related to convertible equity and debt instruments. Specifically, ASU simplifies the accounting for such instruments by removing requirements to separately account for conversion features as a derivative under ASC Topic 815 and removing the requirement to account for beneficial conversion features on such instruments. Accounting Standards Update 2020-05 also provides clearer guidance surrounding disclosure of such instruments and provides specific guidance for how such instruments are to be incorporated in the calculation of Diluted EPS. The guidance under ASU 2020-06 is effective for fiscal years beginning after December 15, 2021, including interim periods within those fiscal years. Early adoption is permitted, but no earlier than fiscal years beginning after December 15, 2020. The Company does not expect a material impact on its condensed consolidated financial statements upon adoption.

All other ASUs issued and not yet effective for the nine months ended September 30, 2020, and through the date of this report, were assessed and determined to be either not applicable or are expected to have minimal impact on the Company’s financial position or results of operations.

Inventory

9 Months Ended

Sep. 30, 2020

Inventory Disclosure [Abstract]

Inventory

Inventory consisted of the following (in thousands):



	September 30, 2020			December 31, 2019
Raw materials	$	426		$	318
Work in process	5,241			4,299
Finished goods	5,904			5,206
Inventory, gross	11,571			9,823
Reserve for obsolescence	(548		)	(719		)
Inventory, net	$	11,023		$	9,104

Consignment inventory, included as a component of finished goods in the table above, was $3.4 million as of both September 30, 2020 and December 31, 2019.

Property and Equipment

9 Months Ended

Sep. 30, 2020

Property, Plant and Equipment [Abstract]

Property and Equipment

Property and equipment consisted of the following (in thousands):



	September 30, 2020			December 31, 2019
Leasehold improvements	$	5,976		$	5,321
Laboratory and clean room equipment	15,516			14,894
Furniture and equipment	15,307			15,118
Construction in progress	1,347			972
Asset retirement cost	348			—
Property and equipment, gross	38,494			36,305
Less accumulated depreciation	(28,239		)	(23,977		)
Property and equipment, net	$	10,255		$	12,328

Depreciation expense for each of the three and nine months ended September 30, 2020 and 2019 are summarized in the table below (amounts in thousands):



	Three Months Ended September 30,				Nine Months Ended September 30,
	2020		2019		2020		2019
Depreciation expense	$	1,566	$	1,641	$	4,494	$	4,981

These expenses are allocated amongst cost of sales, research and development, and selling, general, and administrative expense on the condensed consolidated statements of operations.

Leases

9 Months Ended

Sep. 30, 2020

Leases [Abstract]

Leases

The Company has operating leases primarily for corporate offices, vehicles, and certain equipment. Such leases do not require any contingent rental payments, impose any financial restrictions, or contain any residual value guarantees. The Company determines if an arrangement is or contains a lease at inception.

The Company does not have any leases classified as financing leases.

Operating lease cost for both the three and nine months ended September 30, 2020 and 2019 was $0.4 million and $1.1 million, respectively, and was recorded in Selling, general, and administrative expenses on the unaudited condensed consolidated statements of operations for those periods. Cash paid for amounts included in the measurement of operating lease liabilities for the three and nine months ended September 30, 2020 and 2019 was $0.4 million and $1.2 million, and $0.4 million and $1.3 million, respectively. The amortization of leased assets for both the three and nine months ended September 30, 2020 and 2019 was $0.2 million and $0.7 million, respectively.

Supplemental balance sheet information related to operating leases is as follows (amounts in thousands, except lease term and discount rate):



		September 30, 2020			December 31, 2019
Assets
	Right of use asset	$	4,031		$	3,397

Liabilities
	Short term lease liability	$	1,139		$	1,168
	Long term lease liability	3,452			2,919

Weighted-average remaining lease term (years)		4.6			3.1
Weighted-average discount rate		10.0		%	11.5		%

Maturities of operating leases liabilities are as follows (amounts in thousands):



Year ending December 31,	Maturities
2020 (excluding the nine months ended September 30, 2020)	$	426
2021	1,544
2022	1,568
2023	577
2024	377
Thereafter	1,200
Total lease payments	5,692
Less: imputed interest	(1,101		)
Total lease liability	$	4,591

Intangible Assets

9 Months Ended

Sep. 30, 2020

Goodwill and Intangible Assets Disclosure [Abstract]

Intangible Assets

Intangible assets are summarized as follows (in thousands):



	September 30, 2020							December 31, 2019
	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount
Amortized intangible assets
Licenses	$	1,414	$	(1,301	)	$	113	$	1,414	$	(1,200	)	$	214
Patents and know how	9,368		(5,563		)	3,805		9,099		(5,070		)	4,029
Customer and supplier relationships	3,761		(2,619		)	1,142		3,761		(2,417		)	1,344
Non-compete agreements	120		(90		)	30		120		(68		)	52
Total amortized intangible assets	$	14,663	$	(9,573	)	$	5,090	$	14,394	$	(8,755	)	$	5,639

Unamortized intangible assets
Trade names and trademarks	$	1,008				$	1,008	$	1,008				$	1,008
Patents in process	1,070					1,070		1,130					1,130
Total intangible assets	$	16,741				$	7,168	$	16,532				$	7,777

Amortization expense for the three and nine months ended September 30, 2020 and 2019 is summarized in the table below (amounts in thousands):



	Three Months Ended September 30,				Nine Months Ended September 30,
	2020		2019		2020		2019
Amortization expense	$	276	$	269	$	818	$	769

Patents and patents in process related write-downs due to abandonment for the three and nine months ended September 30, 2019 was $0.0 million and $0.8 million, respectively. These write-down were recorded as a component of Selling, general and administrative expense. The Company incurred impairment losses related to customer relationships which were determined to be unrecoverable of $0.0 million and $0.5 million for the three and nine months ended September 30, 2019, respectively. There were no impairments or write-downs due to abandonments during the three or nine months ended September 30, 2020.

Expected future amortization of intangible assets as of September 30, 2020, is as follows (in thousands):



Year ending December 31,	Estimated Amortization Expense
2020 (excluding the nine months ended September 30, 2020)	$	274
2021	1,034
2022	933
2023	933
2024	933
Thereafter	983
	$	5,090

Accrued Expenses

9 Months Ended

Sep. 30, 2020

Payables and Accruals [Abstract]

Accrued Expenses

Accrued expenses consisted of the following (in thousands):



	September 30, 2020		December 31, 2019
Legal costs	$	15,094	$	12,202
Contingent loss accruals	7,575		5,931
Pricing adjustment settlement with Veterans Affairs	—		6,894
Estimated returns	827		2,581
External commissions	1,625		1,722
Accrued clinical trials	952		1,076
Accrued rebates	1,295		142
Other	995		1,613
Total	$	28,363	$	32,161

Long Term Debt Long Term Debt

9 Months Ended

Sep. 30, 2020

Debt Disclosure [Abstract]

Long-Term Debt

Long Term Debt

Hayfin Term Loan Agreement

On June 30, 2020, the Company entered into a Loan Agreement with, among others, Hayfin Services, LLP, (“Hayfin”) an affiliate of Hayfin Capital Management LLP (the “Hayfin Loan Agreement”), which was funded (the “Hayfin Loan Transaction”) on July 2, 2020 (the “Closing Date”) and provided the Company with a senior secured term loan in an aggregate amount of $50 million (the “Term Loan”) and an additional delayed draw term loan (the “DD TL”, collectively, the “Credit Facilities”) in the form of a committed but undrawn facility. The Term Loan and the DD TL mature on July 2, 2025 (the “Maturity Date”). Interest is payable on the Term Loan and the DD TL for the balances outstanding quarterly through the Maturity Date. No principal payments on either the Term Loan or the DD TL are due and payable until the Maturity Date.

The Term Loan and DD TL, which are senior secured obligations, were entered into together with the sale of the Company’s Series B Convertible Preferred Stock (as defined and described in Note 10, “Equity”) in an aggregate amount of up to $100 million (collectively, the “Financing Transactions”) in order to:


(1)	refinance, in whole, the outstanding indebtedness (the “Refinancing”) under the Loan Agreement, dated as of June 10, 2019 (as amended and restated, the “BT Term Loan Agreement”), among the Company, the lenders and Blue Torch Finance LLC as administrative agent and collateral agent for such lenders,


(2)	pay fees and expenses incurred with certain financing transactions, and


(3)	finance the working capital, capital expenditures, and other general corporate purposes of the Company.

The interest rate applicable to any borrowings under the Term Loan accrues at a rate equal to LIBOR (subject to a floor of 1.5%) plus a margin of 6.75% per annum. After December 31, 2020, the margin on the interest rate is eligible for a reduction; as follows:


•	6.5% per annum if the Total Net Leverage Ratio (as defined in the Hayfin Loan Agreement) is less than 2.0x but greater than or equal to 1.0x, or


•	6.0% per annum if the Total Net Leverage Ratio is less than 1.0x.

An additional 3.0% margin is applied to the interest rate in the event of default as defined by the Hayfin Loan Agreement. At issuance and as of September 30, 2020, the Term Loan carried an interest rate of 8.3%.

The Credit Facilities contain financial covenants requiring the Company, on a consolidated basis, to maintain the following:


•	Maximum Total Net Leverage Ratio of 5.0x through December 31, 2020, reduced to 4.5x through June 30, 2021, further reduced to 4.0x thereafter for the life of the loans, required to be calculated on a quarterly basis,


•	Delayed Draw Term Loan Incurrence Covenant (as defined in the Hayfin Loan Agreement) of 3.5x Total Net Leverage, tested prior to any drawings under the DD TL, and


•	Minimum Liquidity (as defined in the Hayfin Loan Agreement) of $10 million, an at-all times, financial covenant tested monthly.

The Credit Facilities also specify that any prepayment of the loan, voluntary or mandatory, as defined in the Term Loan Agreement, subjects MiMedx to a prepayment premium applicable as of the date of the prepayment:


•	On or before the first anniversary of the Closing Date:


◦	A make-whole premium, equal to the greater of:


▪	5% of the principal balance repaid,


▪	102% of the principal balance plus interest that would have been accrued from the repayment date to 12 months following the Closing Date.


•	After the first anniversary of the Closing Date but on or before the second anniversary of the Closing Date: 2% of the principal balance repaid.


•	After the second anniversary of the Closing Date: 1% of the principal balance repaid.


•	After the third anniversary of the Closing Date: 0% of the principal balance repaid.

The Loan Agreement also includes events of default customary for facilities of this type, and upon the occurrence of such events of default, subject to customary cure rights, all outstanding loans under the Credit Facilities may be accelerated or the lenders’ commitments terminated. The mandatory prepayments are also required in the event of a change in control, incurring other indebtedness, certain proceeds from disposal of assets and insured casualty event. Beginning with the fiscal year ending December 31, 2021, the Company is required to prepay the outstanding loans based on the percentage of the Excess Cash Flow (as defined in the Hayfin Loan Agreement), if such is generated, with the percentage determined based on the total net leverage thresholds.

Hayfin maintains a first-priority security interest in substantially all of the Company’s assets. The Company paid an up front commitment fee of $3.3 million, or 2% of the aggregate of the Term Loan and the DD TL. The Company also incurred $3.3 million of deferred financing costs. Original issue discount and deferred financing costs were allocated to the two tranches of debt on the basis of the face amount of each tranche of debt. A summary of the allocation of the deferred financing costs and original issue discount between the Term Loan and the DD TL on July 2, 2020 were as follows (amounts in thousands):



	July 2, 2020
	Term Loan		DD TL		Total
	Long term debt		Other current assets
Original issue discount	$	333	$	167	$	500
Deferred financing costs	2,169		1,084		3,253

Deferred financing costs and original issue discount associated with the Term Loan are amortized using the effective interest method through the Maturity Date. The amortization of such amounts are presented as part of interest expense on the condensed consolidated statements of operations for the three and nine months ended September 30, 2020. Unamortized deferred financing costs and original issue discount associated with the Term Loan are presented as a reduction to the principal balance on the Term Loan as part of long term debt on the condensed consolidated balance sheet as of September 30, 2020.

Deferred financing costs and original issue discount associated with the DD TL are amortized using the straight line method through the earlier of the expiration of the DD TL commitment term on June 30, 2021, or the date the balance of the DD TL is funded. To the extent that there are unamortized deferred financing costs or original issue discount associated with the DD TL will be amortized using the effective interest method through the Maturity Date. Amortization of these amounts are presented as part of interest expense on the condensed consolidated statements of operations for the three and nine months ended September 30, 2020. Unamortized deferred financing costs and original issue discount associated with the DD TL are presented as other current assets on the condensed consolidated balance sheet as of September 30, 2020. In addition, the DD TL is subject to an additional commitment fee of 1% per annum of the amount undrawn, which is recognized as interest expense. The DD TL was not drawn upon as of September 30, 2020.

The balances of the Term Loan as of September 30, 2020 was as follows (amounts in thousands):



	September 30, 2020
Outstanding principal	$	50,000
Deferred financing costs	(2,077		)
Original issue discount	(296		)
Long term debt	$	47,627

Interest expense related to the Term Loan, included in Interest expense, net in the condensed consolidated statements of operations, was as follows (amounts in thousands):



	Three Months Ended September 30,		Nine Months Ended September 30,
	2020		2020
Stated interest	$	1,031	$	1,031
Amortization of deferred financing costs	90		90
Accretion of original issue discount	38		38
Interest expense	$	1,159	$	1,159

Interest expense related to the DD TL, included in Interest expense, net in the condensed consolidated statements of operations, was as follows (amounts in thousands):



	Three Months Ended September 30,	Nine Months Ended September 30,
	2020	2020
Commitment fee	64	64
Amortization of deferred financing costs	106	106
Accretion of original issue discount	125	125
Interest expense	295	295

Principal payments on the Term Loan as of September 30, 2020 are as follows:



Year ending December 31,	Principal
2020 (excluding the nine months ended September 30, 2020)	$	—
2021	—
2022	—
2023	—
2024	—
Thereafter	50,000
Total long term debt	$	50,000

As the Company has not borrowed on the DD TL as of September 30, 2020, there are no principal payments owed on the DD TL.

As of September 30, 2020, the fair value of the Term Loan was $50.3 million. This valuation was calculated based on a series of Level 2 and Level 3 inputs, including a discount rate based on the credit risk spread of debt instruments of similar risk character in reference to U.S. Treasury instruments with similar maturities, with an incremental risk premium for risk factors specific to the Company. To derive the fair value of the Term Loan, the remaining cash flows associated with the Term Loan were discounted to September 30, 2020 using this discount rate.

Blue Torch Term Loan

On June 10, 2019, the Company entered into the Loan Agreement (the “BT Term Loan Agreement”) with the subsidiaries of the Company as guarantors and party thereto from time to time, the lenders party thereto from time to time and Blue Torch Finance LLC (“Blue Torch”), as administrative agent and collateral agent, pursuant to which the full amount of $75 million was borrowed and funded (the “BT Term Loan”). The proceeds from the BT Term Loan were used (i) for working capital and general corporate purposes and (ii) to pay transaction fees, costs and expenses incurred in connection with the BT Term Loan and the related transactions. The BT Term Loan would have matured on June 20, 2022 and was repayable in quarterly installments of $0.9 million; the balance was due on June 20, 2022. Blue Torch maintained a first-priority security interest in substantially all the Company’s assets. The BT Term Loan was issued net of the original issue discount of $2.3 million. The Company also incurred $6.7 million of deferred financing costs.

On April 22, 2020, the Company amended its BT Loan Agreement with Blue Torch. The amendment provided for an increase in the maximum Total Leverage Ratio, which was a quarterly test, for the remainder of 2020, and also provided for a reduction in the minimum Liquidity requirement from April 2020 through and including November 2020. In connection with the amendment, the Company agreed to pay a one-time fee of approximately $0.7 million, added to the principal balance, and a 1 percentage point increase in the interest rate to LIBOR plus 9%.

On July 2, 2020, a portion of the proceeds from each of the sales of the Company’s Series B Preferred Stock and the borrowings from the Hayfin Loan Transaction were used to repay the outstanding balance of principal, accrued but unpaid interest, and prepayment premium under the BT Loan Agreement. In connection with the repayment of the BT Term Loan, the Company terminated the BT Loan Agreement. The Company has no continuing obligations related to the BT Term Loan. Because the Term Loan was executed with a party unrelated to Blue Torch, the repayment of the BT Term Loan was accounted for as an extinguishment under ASC 470-50. As part of the extinguishment, the Company recorded a loss on extinguishment of debt of $8.2 million. The composition of the loss on extinguishment of debt is as follows (amounts in thousands):



	July 2, 2020
Unamortized deferred financing costs	$	4,528
Unamortized original issue discount	1,538
Unamortized amendment fee	671
Prepayment premium	1,439
Other fees	25
Loss on extinguishment of debt	$	8,201

The balances of the BT Term Loan were as follows (amounts in thousands):



	December 31, 2019
	Current portion		Long-term
Liability component - principal	$	3,750	$	69,375
Original issue discount	—		(1,890		)
Deferred financing cost	—		(5,579		)
Liability component - net carrying value	$	3,750	$	61,906

Interest expense related to the BT Term Loan, included in Interest (expense) income, net in the condensed consolidated statements of operations was as follows (amounts in thousands):



	Three Months Ended September 30,				Nine Months Ended September 30,
	2020		2019		2020		2019
Interest on principal balance	$	42	$	2,024	$	3,773	$	2,417
Accretion of original issue discount	4		158		354		189
Accretion of amendment fee	2		—		53		—
Amortization of deferred financing costs	11		478		1,051		563
Total BT Term Loan interest expense	$	59	$	2,660	$	5,231	$	3,169

Paycheck Protection Program Loan

The Company applied for and, on April 24, 2020, received proceeds of $10 million in the form of a loan under the Paycheck Protection Program (the “PPP Loan”).

On May 11, 2020, the Company repaid the PPP Loan in full. There are no continuing obligations under the PPP Loan as of September 30, 2020.

Net (Loss) Income Per Common Share

9 Months Ended

Sep. 30, 2020

Earnings Per Share [Abstract]

Net (Loss) Income Per Common Share

Net (loss) income per common share is calculated using two methods: basic and diluted.

Basic Net (Loss) Income Per Common Share

Basic net loss (income) per common share is calculated as net loss (income) available to common shareholders divided by weighted average common shares outstanding. Net loss (income) available to common shareholders is calculated as net loss (income) less dividends paid, payable, or deemed on the Company’s Series A and Series B Preferred Stock. (No shares of Series A Preferred Stock have been issued or are outstanding).

The following table provides a reconciliation of Net loss (income) to Net loss (income) available to common shareholders and calculation of basic net income (loss) per common share for each of the three and nine months ended September 30, 2020 and 2019 (amounts in thousands, except share and per share amounts):



	Three Months Ended September 30,					Nine Months Ended September 30,
	2020			2019		2020			2019
Net (loss) income	$	(19,417	)	$	12,379	$	(32,704	)	$	(18,104	)
Adjustments to reconcile to net (loss) income available to common stockholders
Accrued dividend on Series B Convertible Preferred Stock	997			—		997			—
Amortization of beneficial conversion feature	31,110			—		31,110			—
Accretion of increasing-rate dividend feature	458			—		458			—
Total adjustments	32,565			—		32,565			—
Net (loss) income available to common stockholders	$	(51,982	)	$	12,379	$	(65,269	)	$	(18,104	)
Weighted average common shares outstanding	108,493,208			107,157,561		108,222,419			106,929,643
Basic net (loss) income per common share	$	(0.48	)	$	0.12	$	(0.60	)	$	(0.17	)

Diluted Net (Loss) Income Per Common Share

Diluted net (loss) income per common share is calculated as net (loss) income available to common shareholders, adjusted for dividends on convertible preferred stock to the extent such conversions would be dilutive, divided by weighted average common shares outstanding plus potential common shares. Potential common shares considers incremental shares resulting from certain transactions, including the exercise of stock options, the issuance of restricted stock, and the exercise of warrants using the treasury stock method, as well as the hypothetical conversion of the Company’s Series B Preferred Stock using the if-converted method.

The treasury stock method assumes that proceeds from the transaction are used to purchase common stock at the average market price throughout the period. The if-converted method adds back dividends paid, payable, or deemed on the Company’s Series B Convertible Preferred Stock and that assumes conversion as of the later of the beginning of the period or the original transaction date.

Each individual transaction is assessed for its dilutive effect on net (loss) income per common share. To the extent that the transaction is antidilutive, or does not reduce net (loss) income per common share, the effect is excluded from the calculation.

The following table sets forth the computation of basic and diluted net loss per common share (in thousands except share data):



	Three Months Ended September 30,					Nine Months Ended September 30,
	2020			2019		2020			2019
Net (loss) income available to common stockholders	$	(51,982	)	$	12,379	$	(65,269	)	$	(18,104	)
Dividends on Series B Convertible Preferred Stock	32,565			—		32,565			—
Numerator	$	(51,982	)	$	12,379	$	(65,269	)	$	(18,104	)
Weighted average shares outstanding	108,493,208			107,157,561		108,222,419			106,929,643
Potential common shares (a)	28,625,684			2,432,447		11,032,820			1,635,797
Weighted average shares outstanding adjusted for potential common shares	108,493,208			109,590,008		108,222,419			106,929,643
Diluted net (loss) income per common share	$	(0.48	)	$	0.11	$	(0.60	)	$	(0.17	)

(a) Potential common shares reflects hypothetical transactions involving convertible securities and share-based payment awards using the if-converted and treasury stock methods, respectively. The effect of each of these adjustments on the calculation is presented in the table below:



	Three Months Ended September 30,		Nine Months Ended September 30,
	2020	2019	2020	2019
Series B Convertible Preferred Stock	25,691,700	—	8,626,410	—
Outstanding Stock Options	772,967	848,507	739,937	903,344
Performance Based Awards	37,931	—	25,735	—
Restricted Stock Awards	1,203,853	1,583,940	1,281,635	732,453
Restricted Stock Unit Awards	919,233	—	359,103	—
	28,625,684	2,432,447	11,032,820	1,635,797

Equity

9 Months Ended

Sep. 30, 2020

Equity [Abstract]

Equity

Issuance of $100 Million of Series B Convertible Preferred Stock

On July 2, 2020, the Company issued $100 million of the Company’s Series B Convertible Preferred Stock, par value $0.001 per share (the “Series B Preferred Stock”) to an affiliate of EW Healthcare Partners and to certain funds managed by Hayfin Capital Management LLP (individually, the “Holder”, collectively the “Holders”) pursuant to a Securities Purchase Agreement with Falcon Fund 2 Holding Company, L.P., an affiliate of EW Healthcare Partners, and certain funds managed by Hayfin Capital Management LLP, dated as of June 30, 2020 (the “Securities Purchase Agreement”), for an aggregate purchase price of $100 million (the “Preferred Stock Transaction”).

The Series B Preferred Stock pays a 4.0% cumulative dividend per annum prior to the quarterly dividend payment ending on June 30, 2021, and a 6.0% cumulative dividend per annum thereafter. Dividends are declared at the sole discretion of the Company’s board of directors. Dividends are paid at the end of each quarter based for dividend amounts that accumulate beginning on the last payment date through the day prior to the end of each quarter. In lieu of paying a dividend, the Company may elect to accrue the dividend owed to shareholders. Accrued dividend balances accumulate dividends at the prevailing dividend rate for each dividend period for which they are outstanding.

Each share of Series B Preferred Stock, including any accrued and unpaid dividends, is convertible into Company’s common stock at any time at the option of the Holder at a conversion price of $3.85 per common share, or 259.74 common shares for each Series

B Preferred Share prior to any accrued and unpaid dividends. The Series B Preferred Stock, including any accrued and unpaid dividends, automatically converts into common stock at any time after the third anniversary of the issuance date, provided that the common stock has traded at 200% or more of the conversion price for 20 out of 30 consecutive trading days and on such date of conversion the common stock has traded at 200% or more of the conversion price.

Holders of the Series B Preferred Stock, voting as a class, are entitled to elect two members to the board of directors. Holders of the Series B Preferred Stock are entitled to vote on all matters to be voted on by the Company’s shareholders shall vote on an as-converted basis as a single class with the Common Stock not to exceed 19.9% of the total voting stock of the Company. Holders of the Series B Preferred Stock are also entitled to a liquidation preference in an amount equal to the original issue price plus all accrued and unpaid dividends in the event of a liquidation, dissolution, or winding-up of the Company.

The Company evaluated its Series B Preferred Stock and determined that it was considered an equity host under ASC 815, Derivatives and Hedging. As a result of the Company’s conclusion that the Series B Preferred Stock represented an equity host, the conversion feature of all Series B Preferred Stock was considered to be clearly and closely related to the associated Series B Preferred Stock host instrument. Accordingly, the conversion feature of all Series B Preferred Stock was not considered an embedded derivative that required bifurcation. The Company accounted for potential beneficial conversion features under ASC 470-20, Debt with Conversion and Other Options. At the time of the issuance of the Series B Preferred Stock, the Company’s common stock into which the Company’s Series B Preferred Stock is convertible had an estimated fair value exceeding the effective conversion price of the Series B Preferred Stock, giving rise to a beneficial conversion feature in the amount of $31.1 million. This amount was immediately recognized on the commitment date since there is no stated redemption date and the Series B Preferred Stock is immediately convertible. The amortization of the total beneficial conversion feature on the commitment date was accounted for as a deemed dividend.

The Series B Preferred Stock instrument contains an increasing-rate cumulative dividend feature. The Company determined the present value of the difference between the (1) dividends that will be payable, in the period preceding commencement of the perpetual dividend; and (2) the perpetual dividend amount for a corresponding number of periods to ascribe a fair value to this feature. The present value is calculated using a market rate for dividend yield. The Company calculated the amount of the increasing-rate dividend feature as $1.8 million. This amount is amortized as a deemed dividend to preferred shareholders using the effective interest method through the commencement date of the Perpetual Dividend Rate. During the three and nine months ended September 30, 2020, the Company recognized $0.5 million of deemed dividends related to the amortization of the increasing rate dividend feature.

If the Company undergoes a change of control, the Company will have the option to repurchase some or all of the then-outstanding shares of Series B Preferred Stock for cash in an amount equal to the liquidation preference, subject to the rights of the holders of the Series B Preferred Stock in connection with such change in control. If the Company does not exercise such repurchase right, holders of the Series B Preferred Stock will have the option to (1) require the Company to repurchase any or all of its then-outstanding shares of Series B Preferred Stock for cash in an amount equal to the liquidation preference or (2) convert the Series B Preferred Stock, including accrued and unpaid dividends into common stock and receive its pro rata consideration thereunder. Because the contingent redemption of the Series B Preferred Stock by the holder in the event of change in control is outside the Company’s control, the Series B Preferred Stock and related beneficial conversion feature were classified as temporary equity.

The below table illustrates changes in the Company’s balance of Series B Preferred Stock for the three months ended September 30, 2020 (in thousands except per share amounts):



	Series B Preferred Stock
	Shares	Amount
Balance at June 30, 2020	—	$	—
Issuance of Series B Preferred Stock	100,000	59,540
Deemed dividends	—	31,568
Balance at September 30, 2020	100,000	$	91,108

The below table illustrates the changes in shares and balance of the Company’s Series B Preferred Stock for the nine months ended September 30, 2020 (in thousands except per share amounts):



	Series B Preferred Stock
	Shares	Amount
Balance at December 31, 2019	—	$	—
Issuance of Series B Preferred Stock	100,000	59,540
Deemed dividends	—	31,568
Balance at September 30, 2020	100,000	$	91,108

The Company elected not to declare or pay the quarterly dividend on the Series B Convertible Preferred Stock for September 30, 2020. The dividend was $9.86 per share, or approximately $1.0 million. As this amount has not been declared, the Company has not recorded this amount on its unaudited condensed consolidated balance sheet as of September 30, 2020. Dividends in arrears as of September 30, 2020 was $1.0 million.

Based on accumulated dividends as of September 30, 2020, each share of Series B Convertible Preferred Stock was convertible into 262.33 shares of the Company’s common stock, or 26,233,055 common shares in total.

Income taxes	9 Months Ended
Income taxes	Sep. 30, 2020
Income Tax Disclosure [Abstract]
Income taxes	Income Taxes The effective tax rates for the Company were (0.2)% and (2.6)% for the three months ended September 30, 2020 and September 30, 2019, respectively. These effective tax rates include the impact of discrete items of $0 and $0.3 million for the three months ended September 30, 2020 and September 30, 2019, respectively. The effective tax rates for the Company were 25.6% and 1.2% for the nine months ended September 30, 2020 and September 30, 2019, respectively. These effective tax rates include the impact of discrete items of $11.4 million in 2020 and $0.3 million in 2019. The discrete items recorded for the nine months ended September 30, 2020 are primarily related to modifications to the tax rules for carryback of net operating losses as a result of the CARES Act which are expected to result in a federal tax refund of $11.3 million and an income tax benefit of the same amount. No benefit had been recognized with respect to the net operating losses due to a previously-recorded valuation allowance.

Supplemental Disclosure of Cash Flow and Non-Cash Investing and Financing Activities

9 Months Ended

Sep. 30, 2020

Supplemental Cash Flow Elements [Abstract]

Supplemental Disclosure of Cash Flow and Non-Cash Investing and Financing Activities

Supplemental Disclosure of Cash Flow and Non-cash Investing and Financing Activities

Selected cash payments, receipts, and non-cash activities are as follows (in thousands):



	Nine Months Ended September 30,
	2020		2019
Cash paid for interest	$	6,308	$	2,417
Income taxes paid	213		308
Non-cash activities:
Deferred financing costs	471		—
Stock issuance costs	942		—
Deemed dividends on Series B Convertible Preferred Stock	31,568		—
Amendment fee on BT Term Loan	722		—

Contractual Commitments and Contingencies	9 Months Ended
Contractual Commitments and Contingencies	Sep. 30, 2020
Commitments and Contingencies Disclosure [Abstract]
Contractual Commitments and Contingencies	Contractual Commitments and Contingencies Contractual Commitments In addition to the leases noted under Note 5, “Leases,” the Company has commitments for meeting space. These leases expire over the 3 years following September 30, 2020, and generally contain renewal options. The Company anticipates that most of these leases will be renewed or replaced upon expiration. Rent expense for both the three months ended September 30, 2020 and 2019 was $0.3 million. Rent expense for the nine months ended September 30, 2020 and 2019 was $1.0 million and $1.1 million, respectively. These amounts are allocated among cost of sales, research and development and selling, general and administrative expenses. Litigation and Regulatory Matters In the ordinary course of business, the Company and its subsidiaries are parties to numerous civil claims and lawsuits and subject to regulatory examinations, investigations, and requests for information. Some of these matters involve claims for substantial amounts. The Company’s experience has shown that the damages alleged by plaintiffs or claimants are often overstated, based on unsubstantiated legal theories, unsupported by facts, and/or bear no relation to the ultimate award that a court might grant. Additionally, the outcome of litigation and regulatory matters and the timing of ultimate resolution are inherently difficult to predict. These factors make it difficult for the Company to provide a meaningful estimate of the range of reasonably possible outcomes of claims in the aggregate or by individual claim. However, on a case-by-case basis, reserves are established for those legal claims in which it is probable that a loss will be incurred and the amount of such loss can be reasonably estimated. The Company's unaudited condensed consolidated financial statements as of September 30, 2020 reflect the Company's current best estimate of probable losses associated with these matters, including costs to comply with various settlement agreements, where applicable. The actual costs of resolving these claims, as well as the cost to resolve claims which either are not probable or not estimable at this time, may be substantially higher or lower than the amounts reserved. For more information regarding the Company’s legal proceedings, refer to the disclosure under Item 3, “Legal Proceedings” and Note 16, “Commitments and Contingencies” in the 2019 Form 10-K. As of September 30, 2020, the Company has accrued $7.6 million related to the legal proceedings discussed below. The Company paid $7.4 million toward the resolution of legal matters involving the Company during the nine months ended September 30, 2020. The following is a description of certain litigation and regulatory matters: Shareholder Derivative Suits On December 6, 2018, the United States District Court for the Northern District of Georgia entered an order consolidating three shareholder derivative actions (Evans v. Petit, et al. filed September 25, 2018, Georgalas v. Petit, et al. filed September 27, 2018, and Roloson v. Petit, et al. filed October 22, 2018) that had been filed in the Northern District of Georgia. On January 22, 2019, plaintiffs filed a verified consolidated shareholder derivative complaint. The consolidated action sets forth claims of breach of fiduciary duty, corporate waste and unjust enrichment against certain former officers, and certain current and former directors, of the Company: Parker H. Petit, William C. Taylor, Michael J. Senken, John E. Cranston, Alexandra O. Haden, Joseph G. Bleser, J. Terry Dewberry, Charles R. Evans, Larry W. Papasan, Luis A. Aguilar, Bruce L. Hack, Charles E. Koob, Neil S. Yeston and Christopher M. Cashman. The allegations generally involve claims that the defendants breached their fiduciary duties by causing or allowing the Company to misrepresent its financial statements as a result of improper revenue recognition. The Company filed a motion to stay on February 18, 2019, pending the completion of the investigation by the Company’s Special Litigation Committee. The Special Litigation Committee completed its investigation relating to this action and filed an executive summary of its findings with the Court on July 1, 2019. The parties (together with parties from the Hialeah derivative lawsuit, the Nix and Demaio derivative lawsuit, and the Murphy derivative lawsuit, each described below) held a mediation on February 11, 2020. Following continued discussions, on May 1, 2020, the parties notified the Court that plaintiffs and the Company had reached an agreement in principle to settle this consolidated derivative action, which settlement also encompasses all claims asserted in the Hialeah derivative lawsuit, the Nix and Demaio derivative lawsuit, and the Murphy derivative lawsuit. On September 9, 2020, the parties filed a Stipulation and Agreement of Settlement. Judge Ray entered an Order preliminarily approving the proposed settlement on October 8, 2020 and set a hearing for final approval of the settlement for December 21, 2020. The Company has recorded an accrual related to this case and it is included in the accrual amount noted above. On October 29, 2018, the City of Hialeah Employees Retirement System (“Hialeah”) filed a shareholder derivative complaint in the Circuit Court for the Second Judicial Circuit in and for Leon County, Florida (the “Florida Court”). The complaint alleges claims for breaches of fiduciary duty and unjust enrichment against certain former officers, and certain current and former directors, of the Company: Parker H. Petit, William C. Taylor, Michael J. Senken, John E. Cranston, Alexandra O. Haden, Joseph G. Bleser, J. Terry Dewberry, Charles R. Evans, Bruce L. Hack, Charles E. Koob, Larry W. Papasan, and Neil S. Yeston. The allegations generally involve claims that the defendants breached their fiduciary duties by causing or allowing the Company to misrepresent its financial statements as a result of improper revenue recognition. The Company moved to stay the action on February 7, 2019, to allow the prior-filed consolidated derivative action in the Northern District of Georgia to be resolved first and to allow the Company’s Special Litigation Committee time to complete its investigation. The Company also filed a motion to dismiss on April 8, 2019. As discussed above, the plaintiff participated in the mediation that took place in connection with the prior-filed consolidated derivative action in the Northern District of Georgia and is a party to the agreement in principle to settle that consolidated derivative action. The agreement in principle provides that the plaintiff in this action will file a notice of dismissal to dismiss its action with prejudice within seven calendar days after the date that the judgment entered by the Northern District of Georgia becomes final. On May 15, 2019, two individuals purporting to be shareholders of the Company filed a shareholder derivative complaint in the Superior Court for Cobb County, Georgia. (Nix and Demaio v. Evans, et al.) The complaint alleges claims for breaches of fiduciary duty, corporate waste and unjust enrichment against certain current and former directors and officers of the Company: Parker H. Petit, William C. Taylor, Michael J. Senken, John E. Cranston, Alexandra O. Haden, Chris Cashman, Lou Roselli, Mark Diaz, Charles R. Evans, Luis A. Aguilar, Joseph G. Bleser, J. Terry Dewberry, Bruce L. Hack, Charles E. Koob, Larry W. Papasan and Neil S. Yeston. The allegations generally involve claims that the defendants breached their fiduciary duties by causing or allowing the Company to misrepresent its financial statements as a result of improper revenue recognition. The Court ordered this matter stayed pending the resolution of the consolidated derivative suit pending in the Northern District of Georgia. As discussed above, the plaintiff participated in the mediation that took place in connection with the prior-filed consolidated derivative action in the Northern District of Georgia and is a party to the agreement in principle to settle that consolidated derivative action. The agreement in principle provides that the plaintiffs in this action will file a notice of dismissal to dismiss their action with prejudice within seven calendar days after the date that the judgment entered by the Northern District of Georgia becomes final. On August 12, 2019, John Murphy filed a shareholder derivative complaint in the United States District Court for the Southern District of Florida (Murphy v. Petit, et al.). The complaint alleged claims for breaches of fiduciary duty and unjust enrichment against certain former officers, and certain current and former directors, of the Company: Parker H. Petit, William C. Taylor, Michael J. Senken, John E. Cranston, Alexandra O. Haden, Charles R. Evans, Luis A. Aguilar, Joseph G. Bleser, J. Terry Dewberry, Bruce L. Hack, Charles E. Koob, Larry W. Papasan and Neil S. Yeston. The allegations generally involve claims that the defendants breached their fiduciary duties by causing or allowing the Company to misrepresent its financial statements as a result of improper revenue recognition. The Company filed a motion to transfer this action to the Northern District of Georgia. Prior to resolution of that motion, the plaintiff voluntarily dismissed this action without prejudice. As discussed above, the plaintiff participated in the mediation that took place in connection with the prior-filed consolidated derivative action in the Northern District of Georgia and is a party to the agreement in principle to settle that consolidated derivative action. Under the agreement in principle, the plaintiff has agreed that this action shall not be reinstated and, after the judgment entered by the Northern District of Georgia becomes final, this action shall be deemed dismissed with prejudice. Securities Class Action On January 16, 2019, the United States District Court for the Northern District of Georgia entered an order consolidating two purported securities class actions (MacPhee v. MiMedx Group, Inc., et al. filed February 23, 2018 and Kline v. MiMedx Group, Inc., et al. filed February 26, 2018). The order also appointed Carpenters Pension Fund of Illinois as lead plaintiff. On May 1, 2019, the lead plaintiff filed a consolidated amended complaint, naming as defendants the Company, Michael J. Senken, Parker H. Petit, William C. Taylor, Christopher M. Cashman and Cherry Bekaert & Holland LLP. The amended complaint (the “Securities Class Action Complaint”) alleged violations of Section 10(b) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), Rule 10b-5 promulgated thereunder and Section 20(a) of the Exchange Act. It asserted a class period of March 7, 2013 through June 29, 2018. Following the filing of motions to dismiss by the various defendants, the lead plaintiff was granted leave to file an amended complaint. The lead plaintiff filed its amended complaint against the Company, Michael Senken, Pete Petit, William Taylor, and Cherry Bekaert & Holland (Christopher Cashman was dropped as a defendant) on March 30, 2020; defendants filed motions to dismiss on May 29, 2020. The parties have agreed to stay the proceedings until December 18, 2020 to allow for mediation. Investigations United States Attorney’s Office for the Southern District of New York (“USAO-SDNY”) Investigation The USAO-SDNY conducted an investigation into, among other things, the Company’s recognition of revenue and practices with certain distributors and customers. The USAO-SDNY requested that the Company provide it with copies of all information the Company furnished to the SEC and made additional requests for information. The USAO-SDNY conducted interviews of various individuals, including employees and former employees of the Company. The USAO-SDNY issued indictments in November 2019 against former executives Messrs. Petit and Taylor for securities fraud and conspiracy to commit securities fraud, to make false filings with the SEC, and to influence improperly the conduct of audits relating to alleged misconduct that resulted in inflated revenue figures for fiscal 2015. The Company is cooperating with the USAO-SDNY. Department of Veterans’ Affairs Office of Inspector General (“VA-OIG”) and Civil Division of the Department of Justice (“DOJ-Civil”) Subpoenas and/or Investigations VA-OIG has issued subpoenas to the Company seeking, among other things, information concerning the Company’s financial relationships with VA clinicians. DOJ-Civil has requested similar information. The Company has cooperated fully and produced responsive information to VA-OIG and DOJ-Civil. Periodically, VA-OIG has requested additional documents and information regarding payments to individual VA clinicians. Most recently, on June 3, 2020, the Company received a subpoena from the VA-OIG requesting information regarding the Company’s financial relationships and interactions with two healthcare providers at the VA Long Beach Healthcare System. The Company has continued to cooperate and respond to these requests. United States Attorney’s Office for the Middle District of North Carolina (“USAO-MDNC”) Investigation On January 9, 2020, the USAO-MDNC informed the Company that it is investigating the Company’s financial relationships with two former clinicians at the Durham VA Medical Center. The Company is cooperating with the investigation. Qui Tam Actions On January 19, 2017, a former employee of the Company filed a qui tam False Claims Act complaint in the United States District Court for the District of South Carolina (United States of America, ex rel. Jon Vitale v. MiMedx Group, Inc.) alleging that the Company’s donations to the patient assistance program, Patient Access Network Foundation, violated the Anti-Kickback Statute and resulted in submission of false claims to the government. The government declined to intervene and the complaint was unsealed on August 10, 2018. The Company filed a motion to dismiss on October 1, 2018. The Company’s motion to dismiss was granted in part and denied in part on May 15, 2019. The case is in discovery. Former Employee Litigation On November 19, 2018, the Company’s former Chief Financial Officer filed a complaint in the Superior Court for Cobb County, Georgia (Michael J. Senken v. MiMedx Group, Inc.) in which he claims that the Company has breached its obligations under the Company’s charter and bylaws to advance to him, and indemnify him for, his legal fees and costs that he incurred in connection with certain Company internal investigations and litigation. The Company filed its answer denying the plaintiff’s claims on April 19, 2019. To date, no deadlines have been established by the court. On January 21, 2019, a former employee filed a complaint in the Fifth Judicial Circuit, Richland County, South Carolina (Jon Michael Vitale v. MiMedx Group, Inc. et. al.) against the Company alleging retaliation, defamation and unjust enrichment and seeking monetary damages. The former employee claims he was retaliated against after raising concerns related to insurance fraud and later defamed by comments concerning the indictments of three South Carolina VA employees. On February 19, 2019, the case was removed to the U.S. District Court for the District of South Carolina. The Company filed a motion to dismiss on April 8, 2019, which was denied by the Court. This case is in discovery. Defamation Claims On June 4, 2018, Sparrow Fund Management, LP (“Sparrow”) filed a complaint against the Company and Mr. Petit, including claims for defamation and civil conspiracy in the United States District Court for the Southern District of New York (Sparrow Fund Management, L.P. v. MiMedx Group, Inc. et. al.). The complaint seeks monetary damages and injunctive relief and alleges the defendants commenced a campaign to publicly discredit Sparrow by falsely claiming it was a short seller who engaged in illegal and criminal behavior by spreading false information in an attempt to manipulate the price of our common stock. On March 31, 2019, a judge granted defendants’ motions to dismiss in full, but allowed Sparrow the ability to file an amended complaint. The Magistrate has recommended Sparrow’s motion for leave to amend be granted in part and denied in part and the Judge adopted the Magistrate’s recommendation. Sparrow filed its amended complaint against MiMedx (Mr. Petit has been dropped from the lawsuit) on April 3, 2020 and the Company filed its answer. This case is in discovery. On June 17, 2019, the principals of Viceroy Research (“Viceroy”), filed suit in the Circuit Court for the Seventeenth Judicial Circuit in Broward County, Florida (Fraser John Perring et. al. v. MiMedx Group, Inc. et. al.) against the Company and Mr. Petit, alleging defamation and malicious prosecution based on the defendants’ alleged campaign to publicly discredit Viceroy and the lawsuit the Company previously filed against the plaintiffs, but which the Company subsequently dismissed without prejudice. On November 1, 2019, the Court granted Mr. Petit’s motion to dismiss on jurisdictional grounds, denied the Company’s motion to dismiss, and granted plaintiffs leave to file an amended complaint to address the deficiencies in its claims against Mr. Petit, which they did on November 21, 2019. The Company filed its answer on December 20, 2019. Intellectual Property Litigation The NuTech Action On March 2, 2015, the Company filed a patent infringement lawsuit against NuTech Medical, Inc. (“NuTech”) and DCI Donor Services, Inc. (“DCI”) in the United States District Court for the Northern District of Alabama (MiMedx Group, Inc. v. NuTech Medical, Inc. et. al.). The Company has alleged that NuTech and DCI infringed and continue to infringe the Company’s patents through the manufacture, use, sale and/or offering of their tissue graft product. The Company has also asserted that NuTech knowingly and willfully made false and misleading representations about its products to customers and prospective customers. The Company is seeking permanent injunctive relief and unspecified damages. The case was stayed pending the restatement of the Company’s financial statements. Since the Company has completed its restatement, the case resumed. The parties have reached a settlement in the matter and the case will be dismissed with prejudice. The Osiris Action On February 20, 2019, Osiris Therapeutics, Inc. (“Osiris”) refiled its trade secret and breach of contract action against the Company (which had been dismissed in a different forum) in the United States District Court for the Northern District of Georgia (Osiris Therapeutics, Inc. v. MiMedx Group, Inc.). The parties have reached a settlement in the matter and the case was dismissed with prejudice on October 26, 2020. Other Matters Under the Florida Business Corporation Act and agreements with its current and former officers and directors, the Company is obligated to indemnify its current and former officers and directors who are made party to a proceeding, including a proceeding brought by or in the right of the corporation, with certain exceptions, and to advance expenses to defend such matters. The Company has already borne substantial costs to satisfy these indemnification and expense advance obligations and expects to continue to do so in the future. In addition to the matters described above, the Company is a party to a variety of other legal matters that arise in the ordinary course of the Company’s business, none of which is deemed to be individually material at this time. Due to the inherent uncertainty of litigation, there can be no assurance that the resolution of any particular claim or proceeding would not have a material adverse effect on the Company’s business, results of operations, financial position or liquidity.

Revenue Data by Customer Type

9 Months Ended

Sep. 30, 2020

Segment Reporting [Abstract]

Revenue Data by Customer Type

MiMedx has two primary distribution channels: (1) direct to customers (healthcare professionals and/or facilities) (“Direct Customers”), and (2) sales through distributors (“Distributors”). The Company groups its customers into these two groups. This grouping by customer types does not constitute a basis for resource allocation but is information intended to provide the reader with ability to better understand how the nature, amount, timing, and uncertainty of revenue and cash flows are affected by economic factors applicable to each customer type. The Company did not have significant foreign operations or a single external customer from which 10% or more of revenues were derived during the three or nine months ended September 30, 2020 or 2019.

Below is a summary of net sales by each customer type (in thousands):



	Three Months Ended September 30,				Nine Months Ended September 30,
	2020		2019		2020		2019
Direct Customers	$	62,409	$	84,264	$	175,060	$	214,014
Distributors	1,894		4,599		4,626		8,841
Total	$	64,303	$	88,863	$	179,686	$	222,855

Subsequent Events	9 Months Ended
Subsequent Events	Sep. 30, 2020
Subsequent Events [Abstract]
Subsequent Events	Subsequent Events The Company has assessed subsequent events through November 4, 2020, the date which these condensed consolidated financial statements were available to be issued. On October 2, 2020, the Board of Directors authorized an additional 37,500,000 shares of the Company’s common stock, subject to shareholder approval. On October 30, 2020, the Company announced that The Nasdaq Stock Market LLC approved its application for listing the Company’s common stock on the Nasdaq Stock Market. The Company’s common stock began trading on the Nasdaq Stock Market at the opening of trading on November 4, 2020 under the symbol “MDXG”.

Significant Accounting Policies (Policies)

9 Months Ended

Sep. 30, 2020

Accounting Policies [Abstract]

Segment Reporting

The Company operates in one business segment,

Basis of Presentation

These unaudited condensed consolidated financial statements should be read in conjunction with the historical consolidated financial statements of the Company included in the 2019 Form 10-K.

Use of Estimates

Principles of Consolidation

Cash and Cash Equivalents

Cash and cash equivalents include cash and Federal Deposit Insurance Corporation (“FDIC”) insured certificates of deposit held at various banks with an original maturity of three months or less.

Accounts Receivable and Notes Receivable

Accounts Receivable

Accounts receivable represent amounts due from customers for which revenue has been recognized. Generally, the Company does not require collateral or any other security to support its receivables.

The Company’s allowance for doubtful accounts was $0.6 million and $0 as of September 30, 2020 and December 31, 2019, respectively.

Notes Receivable

Inventories

Goodwill

As of September 30, 2020, the Company concluded it operates as one reporting unit.

Revenue Recognition

Three and Nine Months Ended September 30, 2019

Transition and the Three and Nine Months Ended September 30, 2020



	Amounts Invoiced and Not Collected			Deferred Cost of Sales
Amounts as of September 30, 2019	$	48,883		$	6,415
Revenue recognized related to amounts invoiced and not collected at September 30, 2019:
Transition Adjustment during the three months ended September 30, 2019	(21,385		)	(2,565		)
Cash collected during the three months ended December 31, 2019 related to the Remaining Contracts	(8,219		)	(1,151		)
Write-off of customer contracts where collection is no longer reasonably assured as of September 30, 2019	(10,273		)	(1,438		)
Amounts as of December 31, 2019	9,006			1,261
Revenue recognized related to amounts invoiced and not collected at September 30, 2019:
Cash collected during the nine months ended September 30, 2020 related to the Remaining Contracts	(7,240		)	(1,014		)
Amounts as of September 30, 2020	$	1,766		$	247

GPO Fees

Cost of Sales

Leases

See Note 5, “Leases” for further information regarding lease obligations.

Patent Costs

Treasury Stock

Recently Issued and Adopted Accounting Standards

Significant Accounting Policies Significant Accounting Policies (Tables)

9 Months Ended

Sep. 30, 2020

Accounting Policies [Abstract]

Assessment of Revenue under ASC 606



	Amounts Invoiced and Not Collected			Deferred Cost of Sales
Amounts as of September 30, 2019	$	48,883		$	6,415
Revenue recognized related to amounts invoiced and not collected at September 30, 2019:
Transition Adjustment during the three months ended September 30, 2019	(21,385		)	(2,565		)
Cash collected during the three months ended December 31, 2019 related to the Remaining Contracts	(8,219		)	(1,151		)
Write-off of customer contracts where collection is no longer reasonably assured as of September 30, 2019	(10,273		)	(1,438		)
Amounts as of December 31, 2019	9,006			1,261
Revenue recognized related to amounts invoiced and not collected at September 30, 2019:
Cash collected during the nine months ended September 30, 2020 related to the Remaining Contracts	(7,240		)	(1,014		)
Amounts as of September 30, 2020	$	1,766		$	247

Inventory (Tables)

9 Months Ended

Sep. 30, 2020

Inventory Disclosure [Abstract]

Inventory

Inventory consisted of the following (in thousands):



	September 30, 2020			December 31, 2019
Raw materials	$	426		$	318
Work in process	5,241			4,299
Finished goods	5,904			5,206
Inventory, gross	11,571			9,823
Reserve for obsolescence	(548		)	(719		)
Inventory, net	$	11,023		$	9,104

Property and Equipment (Tables)

9 Months Ended

Sep. 30, 2020

Property, Plant and Equipment [Abstract]

Summary of Property and Equipment

Property and equipment consisted of the following (in thousands):



	September 30, 2020			December 31, 2019
Leasehold improvements	$	5,976		$	5,321
Laboratory and clean room equipment	15,516			14,894
Furniture and equipment	15,307			15,118
Construction in progress	1,347			972
Asset retirement cost	348			—
Property and equipment, gross	38,494			36,305
Less accumulated depreciation	(28,239		)	(23,977		)
Property and equipment, net	$	10,255		$	12,328

Depreciation expense for each of the three and nine months ended September 30, 2020 and 2019 are summarized in the table below (amounts in thousands):



	Three Months Ended September 30,				Nine Months Ended September 30,
	2020		2019		2020		2019
Depreciation expense	$	1,566	$	1,641	$	4,494	$	4,981

Leases (Tables)

9 Months Ended

Sep. 30, 2020

Leases [Abstract]

Supplemental Balance Sheet Information Related to Leases

Supplemental balance sheet information related to operating leases is as follows (amounts in thousands, except lease term and discount rate):



		September 30, 2020			December 31, 2019
Assets
	Right of use asset	$	4,031		$	3,397

Liabilities
	Short term lease liability	$	1,139		$	1,168
	Long term lease liability	3,452			2,919

Weighted-average remaining lease term (years)		4.6			3.1
Weighted-average discount rate		10.0		%	11.5		%

Maturities of Operating Lease Liabilities

Maturities of operating leases liabilities are as follows (amounts in thousands):



Year ending December 31,	Maturities
2020 (excluding the nine months ended September 30, 2020)	$	426
2021	1,544
2022	1,568
2023	577
2024	377
Thereafter	1,200
Total lease payments	5,692
Less: imputed interest	(1,101		)
Total lease liability	$	4,591

Intangible Assets (Tables)

9 Months Ended

Sep. 30, 2020

Goodwill and Intangible Assets Disclosure [Abstract]

Intangible assets activity summary - indefinite-lived

Intangible assets are summarized as follows (in thousands):



	September 30, 2020							December 31, 2019
	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount
Amortized intangible assets
Licenses	$	1,414	$	(1,301	)	$	113	$	1,414	$	(1,200	)	$	214
Patents and know how	9,368		(5,563		)	3,805		9,099		(5,070		)	4,029
Customer and supplier relationships	3,761		(2,619		)	1,142		3,761		(2,417		)	1,344
Non-compete agreements	120		(90		)	30		120		(68		)	52
Total amortized intangible assets	$	14,663	$	(9,573	)	$	5,090	$	14,394	$	(8,755	)	$	5,639

Unamortized intangible assets
Trade names and trademarks	$	1,008				$	1,008	$	1,008				$	1,008
Patents in process	1,070					1,070		1,130					1,130
Total intangible assets	$	16,741				$	7,168	$	16,532				$	7,777

Amortization expense for the three and nine months ended September 30, 2020 and 2019 is summarized in the table below (amounts in thousands):



	Three Months Ended September 30,				Nine Months Ended September 30,
	2020		2019		2020		2019
Amortization expense	$	276	$	269	$	818	$	769

Intangible assets activity summary - finite-lived

Intangible assets are summarized as follows (in thousands):



	September 30, 2020							December 31, 2019
	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount
Amortized intangible assets
Licenses	$	1,414	$	(1,301	)	$	113	$	1,414	$	(1,200	)	$	214
Patents and know how	9,368		(5,563		)	3,805		9,099		(5,070		)	4,029
Customer and supplier relationships	3,761		(2,619		)	1,142		3,761		(2,417		)	1,344
Non-compete agreements	120		(90		)	30		120		(68		)	52
Total amortized intangible assets	$	14,663	$	(9,573	)	$	5,090	$	14,394	$	(8,755	)	$	5,639

Unamortized intangible assets
Trade names and trademarks	$	1,008				$	1,008	$	1,008				$	1,008
Patents in process	1,070					1,070		1,130					1,130
Total intangible assets	$	16,741				$	7,168	$	16,532				$	7,777

Estimated Future Amortization Expense for Intangible Assets

Expected future amortization of intangible assets as of September 30, 2020, is as follows (in thousands):



Year ending December 31,	Estimated Amortization Expense
2020 (excluding the nine months ended September 30, 2020)	$	274
2021	1,034
2022	933
2023	933
2024	933
Thereafter	983
	$	5,090

Accrued Expenses (Tables)

9 Months Ended

Sep. 30, 2020

Payables and Accruals [Abstract]

Schedule of Accrued Liabilities

Accrued expenses consisted of the following (in thousands):



	September 30, 2020		December 31, 2019
Legal costs	$	15,094	$	12,202
Contingent loss accruals	7,575		5,931
Pricing adjustment settlement with Veterans Affairs	—		6,894
Estimated returns	827		2,581
External commissions	1,625		1,722
Accrued clinical trials	952		1,076
Accrued rebates	1,295		142
Other	995		1,613
Total	$	28,363	$	32,161

Long Term Debt (Tables)

9 Months Ended

Sep. 30, 2020

Debt Instrument [Line Items]

Schedule of Debt Issuance Costs

A summary of the allocation of the deferred financing costs and original issue discount between the Term Loan and the DD TL on July 2, 2020 were as follows (amounts in thousands):



	July 2, 2020
	Term Loan		DD TL		Total
	Long term debt		Other current assets
Original issue discount	$	333	$	167	$	500
Deferred financing costs	2,169		1,084		3,253

Future Principal Payments for the Term Loan and DD TL

Principal payments on the Term Loan as of September 30, 2020 are as follows:



Year ending December 31,	Principal
2020 (excluding the nine months ended September 30, 2020)	$	—
2021	—
2022	—
2023	—
2024	—
Thereafter	50,000
Total long term debt	$	50,000

Schedule of Extinguishment of Debt

The composition of the loss on extinguishment of debt is as follows (amounts in thousands):



	July 2, 2020
Unamortized deferred financing costs	$	4,528
Unamortized original issue discount	1,538
Unamortized amendment fee	671
Prepayment premium	1,439
Other fees	25
Loss on extinguishment of debt	$	8,201

Hayfin Loan Agreement Term Loan

Debt Instrument [Line Items]

Schedule of Debt

The balances of the Term Loan as of September 30, 2020 was as follows (amounts in thousands):



	September 30, 2020
Outstanding principal	$	50,000
Deferred financing costs	(2,077		)
Original issue discount	(296		)
Long term debt	$	47,627

Schedule of Interest Expense

Interest expense related to the Term Loan, included in Interest expense, net in the condensed consolidated statements of operations, was as follows (amounts in thousands):



	Three Months Ended September 30,		Nine Months Ended September 30,
	2020		2020
Stated interest	$	1,031	$	1,031
Amortization of deferred financing costs	90		90
Accretion of original issue discount	38		38
Interest expense	$	1,159	$	1,159

Hayfin Loan Agreement Delayed Draw Term Loan

Debt Instrument [Line Items]

Schedule of Interest Expense

Interest expense related to the DD TL, included in Interest expense, net in the condensed consolidated statements of operations, was as follows (amounts in thousands):



	Three Months Ended September 30,	Nine Months Ended September 30,
	2020	2020
Commitment fee	64	64
Amortization of deferred financing costs	106	106
Accretion of original issue discount	125	125
Interest expense	295	295

BT Term Loan

Debt Instrument [Line Items]

Schedule of Debt

The balances of the BT Term Loan were as follows (amounts in thousands):



	December 31, 2019
	Current portion		Long-term
Liability component - principal	$	3,750	$	69,375
Original issue discount	—		(1,890		)
Deferred financing cost	—		(5,579		)
Liability component - net carrying value	$	3,750	$	61,906

Schedule of Interest Expense

Interest expense related to the BT Term Loan, included in Interest (expense) income, net in the condensed consolidated statements of operations was as follows (amounts in thousands):



	Three Months Ended September 30,				Nine Months Ended September 30,
	2020		2019		2020		2019
Interest on principal balance	$	42	$	2,024	$	3,773	$	2,417
Accretion of original issue discount	4		158		354		189
Accretion of amendment fee	2		—		53		—
Amortization of deferred financing costs	11		478		1,051		563
Total BT Term Loan interest expense	$	59	$	2,660	$	5,231	$	3,169

Net (Loss) Income Per Common Share (Tables)

9 Months Ended

Sep. 30, 2020

Earnings Per Share [Abstract]

Schedule of Earnings Per Share, Basic



	Three Months Ended September 30,					Nine Months Ended September 30,
	2020			2019		2020			2019
Net (loss) income	$	(19,417	)	$	12,379	$	(32,704	)	$	(18,104	)
Adjustments to reconcile to net (loss) income available to common stockholders
Accrued dividend on Series B Convertible Preferred Stock	997			—		997			—
Amortization of beneficial conversion feature	31,110			—		31,110			—
Accretion of increasing-rate dividend feature	458			—		458			—
Total adjustments	32,565			—		32,565			—
Net (loss) income available to common stockholders	$	(51,982	)	$	12,379	$	(65,269	)	$	(18,104	)
Weighted average common shares outstanding	108,493,208			107,157,561		108,222,419			106,929,643
Basic net (loss) income per common share	$	(0.48	)	$	0.12	$	(0.60	)	$	(0.17	)

Schedule of Earnings Per Share, Diluted

The following table sets forth the computation of basic and diluted net loss per common share (in thousands except share data):



	Three Months Ended September 30,					Nine Months Ended September 30,
	2020			2019		2020			2019
Net (loss) income available to common stockholders	$	(51,982	)	$	12,379	$	(65,269	)	$	(18,104	)
Dividends on Series B Convertible Preferred Stock	32,565			—		32,565			—
Numerator	$	(51,982	)	$	12,379	$	(65,269	)	$	(18,104	)
Weighted average shares outstanding	108,493,208			107,157,561		108,222,419			106,929,643
Potential common shares (a)	28,625,684			2,432,447		11,032,820			1,635,797
Weighted average shares outstanding adjusted for potential common shares	108,493,208			109,590,008		108,222,419			106,929,643
Diluted net (loss) income per common share	$	(0.48	)	$	0.11	$	(0.60	)	$	(0.17	)



	Three Months Ended September 30,		Nine Months Ended September 30,
	2020	2019	2020	2019
Series B Convertible Preferred Stock	25,691,700	—	8,626,410	—
Outstanding Stock Options	772,967	848,507	739,937	903,344
Performance Based Awards	37,931	—	25,735	—
Restricted Stock Awards	1,203,853	1,583,940	1,281,635	732,453
Restricted Stock Unit Awards	919,233	—	359,103	—
	28,625,684	2,432,447	11,032,820	1,635,797

Equity Equity (Tables)

9 Months Ended

Sep. 30, 2020

Equity [Abstract]

Schedule of Series B Preferred Stock

The below table illustrates changes in the Company’s balance of Series B Preferred Stock for the three months ended September 30, 2020 (in thousands except per share amounts):



	Series B Preferred Stock
	Shares	Amount
Balance at June 30, 2020	—	$	—
Issuance of Series B Preferred Stock	100,000	59,540
Deemed dividends	—	31,568
Balance at September 30, 2020	100,000	$	91,108

The below table illustrates the changes in shares and balance of the Company’s Series B Preferred Stock for the nine months ended September 30, 2020 (in thousands except per share amounts):



	Series B Preferred Stock
	Shares	Amount
Balance at December 31, 2019	—	$	—
Issuance of Series B Preferred Stock	100,000	59,540
Deemed dividends	—	31,568
Balance at September 30, 2020	100,000	$	91,108

Supplemental Disclosure of Cash Flow and Non-Cash Investing and Financing Activities (Tables)

9 Months Ended

Sep. 30, 2020

Supplemental Cash Flow Elements [Abstract]

Supplemental Disclosure of Cash Flow and Non-cash Investing and Financing Activities

Selected cash payments, receipts, and non-cash activities are as follows (in thousands):



	Nine Months Ended September 30,
	2020		2019
Cash paid for interest	$	6,308	$	2,417
Income taxes paid	213		308
Non-cash activities:
Deferred financing costs	471		—
Stock issuance costs	942		—
Deemed dividends on Series B Convertible Preferred Stock	31,568		—
Amendment fee on BT Term Loan	722		—

Revenue Data by Customer Type (Tables)

9 Months Ended

Sep. 30, 2020

Segment Reporting [Abstract]

Summary of Net Sales by Customer Type

Below is a summary of net sales by each customer type (in thousands):



	Three Months Ended September 30,				Nine Months Ended September 30,
	2020		2019		2020		2019
Direct Customers	$	62,409	$	84,264	$	175,060	$	214,014
Distributors	1,894		4,599		4,626		8,841
Total	$	64,303	$	88,863	$	179,686	$	222,855

Nature of Business (Details) $ in Millions	9 Months Ended
Nature of Business (Details) $ in Millions	Sep. 30, 2020 USD ($) segment
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Number of business segments (segment) \| segment	1
Federal tax refund resulting from CARES Act	$ 11.3
Income tax benefit resulting from CARES Act	$ 11.3

Significant Accounting Policies (Details)	3 Months Ended	9 Months Ended
Significant Accounting Policies (Details)	Sep. 30, 2020 USD ($)	Sep. 30, 2020 USD ($) reporting_unit	Sep. 30, 2019 USD ($)	Dec. 31, 2019 USD ($)
Finite-Lived Intangible Assets [Line Items]
Allowance for doubtful accounts	$ (600,000)	$ (600,000)		$ 0
Number of reporting units \| reporting_unit		1
Amounts invoiced and not collected	1,766,000	$ 1,766,000	$ 48,883,000	9,006,000
Deferred cost of sales	247,000	$ 247,000	6,415,000	$ 1,261,000
Group purchasing organization administrative fees (percent)		3.00%
Goodwill impairment	$ 0	$ 0
Patent costs capitalized during the period		$ 200,000	$ 400,000
Minimum
Finite-Lived Intangible Assets [Line Items]
Typical payment period for customers		30 days
Maximum
Finite-Lived Intangible Assets [Line Items]
Typical payment period for customers		60 days

Significant Accounting Policies - Assessment of Revenue under ASC 606 (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Dec. 31, 2019	Sep. 30, 2019	Sep. 30, 2020
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Amounts invoiced and not collected, beginning	$ 48,883		$ 9,006
Amounts invoiced and not collected, ending	9,006	$ 48,883	1,766
Deferred Cost of Sales, After Transition Adjustment	6,415		1,261
Deferred Cost of Sales, After Transition Adjustment	1,261	6,415	247
Accounting Standards Update 2014-09 [Member]
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Amounts Invoiced and Not Collected, Transition Adjustment		21,385
Proceeds from Sale and Collection of Receivables	8,219		7,240
Amounts Invoiced and Not Collected, Write-off of Deferred Costs for Customer Contracts where Collection is no Longer Reasonable Assured		10,273
Deferred Cost of Sales, Transition Adjustment		2,565
Deferred Cost of Sales, Cash Collected	$ 1,151		$ 1,014
Deferred Cost of Sales, Write-off of Deferred Costs for Customer Contracts Where Collection is No Longer Reasonably Assured		$ 1,438

Inventory (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Inventory Disclosure [Abstract]
Raw materials	$ 426	$ 318
Work in process	5,241	4,299
Finished goods	5,904	5,206
Inventory, gross	11,571	9,823
Reserve for obsolescence	(548)	(719)
Inventory, net	11,023	9,104
Consignment inventory	$ 3,400	$ 3,400

Property and Equipment - Summary of Property and Equipment (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 38,494	$ 36,305
Less accumulated depreciation	(28,239)	(23,977)
Property and equipment, net	10,255	12,328
Leasehold improvements
Property, Plant and Equipment [Line Items]
Property and equipment, gross	5,976	5,321
Laboratory and clean room equipment
Property, Plant and Equipment [Line Items]
Property and equipment, gross	15,516	14,894
Furniture and equipment
Property, Plant and Equipment [Line Items]
Property and equipment, gross	15,307	15,118
Construction in progress
Property, Plant and Equipment [Line Items]
Property and equipment, gross	1,347	972
Asset retirement cost
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 348	$ 0

Property and Equipment - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Property, Plant and Equipment [Abstract]
Depreciation	$ 1,566	$ 1,641	$ 4,494	$ 4,981

Leases (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
Leases (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Leases [Abstract]
Operating lease cost	$ 400		$ 1,100
Operating lease liability	400	$ 400	1,200	$ 1,300
Amortization of right of use asset	$ 200	$ 200	$ 702	$ 714

Leases - Supplemental Balance Sheet Information (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Leases [Abstract]
Right of use asset	$ 4,031	$ 3,397
Short term lease liability	1,139	1,168
Long term lease liability	$ 3,452	$ 2,919
Weighted-average remaining lease term (years)	4 years 7 months 6 days	3 years 1 month 6 days
Weighted-average discount rate	10.00%	11.50%

Leases - Maturities of Operating Lease Liabilities (Details) $ in Thousands	Sep. 30, 2020 USD ($)
Leases [Abstract]
2020 (excluding the nine months ended September 30, 2020)	$ 426
2021	1,544
2022	1,568
2023	577
2024	377
Thereafter	1,200
Total lease payments	5,692
Less: imputed interest	(1,101)
Operating lease liability	$ 4,591

Intangible Assets - Summary of Intangible Assets (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Finite-Lived Intangible Assets [Line Items]
Gross carrying value	$ 14,663	$ 14,394
Accumulated amortization	(9,573)	(8,755)
Net carrying amount	5,090	5,639
Intangible assets, gross carrying value	16,741	16,532
Net	7,168	7,777
Trade names and trademarks
Finite-Lived Intangible Assets [Line Items]
Gross carrying value, indefinite lived	1,008	1,008
Patents in process
Finite-Lived Intangible Assets [Line Items]
Gross carrying value, indefinite lived	1,070	1,130
Licenses
Finite-Lived Intangible Assets [Line Items]
Gross carrying value	1,414	1,414
Accumulated amortization	(1,301)	(1,200)
Net carrying amount	113	214
Patents and know-how
Finite-Lived Intangible Assets [Line Items]
Gross carrying value	9,368	9,099
Accumulated amortization	(5,563)	(5,070)
Net carrying amount	3,805	4,029
Customer and supplier relationships
Finite-Lived Intangible Assets [Line Items]
Gross carrying value	3,761	3,761
Accumulated amortization	(2,619)	(2,417)
Net carrying amount	1,142	1,344
Non compete agreements
Finite-Lived Intangible Assets [Line Items]
Gross carrying value	120	120
Accumulated amortization	(90)	(68)
Net carrying amount	$ 30	$ 52

Intangible Assets - Narrative (Details) - USD ($)	3 Months Ended		9 Months Ended
Intangible Assets - Narrative (Details) - USD ($)	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Goodwill and Intangible Assets Disclosure [Abstract]
Amortization of intangible assets	$ 276,000	$ 269,000	$ 818,000	$ 769,000
Impairment of intangible assets for write-down of patents		0.0		800,000
Impairment of intangible assets related to customer relationships	$ 0	$ 0.0	$ 0	$ 500,000

Intangible Assets - Estimated Future Amortization Expense for Intangible Assets (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Estimated future amortization expense [Abstract]
2020 (excluding the nine months ended September 30, 2020)	$ 274
2021	1,034
2022	933
2023	933
2024	933
Thereafter	983
Net book value	$ 5,090	$ 5,639

Accrued Expenses (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Payables and Accruals [Abstract]
Legal costs	$ 15,094	$ 12,202
Contingent loss accruals	7,575	5,931
Pricing adjustment settlement with Veterans Affairs	0	6,894
Estimated returns	827	2,581
External commissions	1,625	1,722
Accrued clinical trials	952	1,076
Accrued rebates	1,295	142
Other	995	1,613
Total	$ 28,363	$ 32,161

Long Term Debt - Term Loan (Details)						3 Months Ended		6 Months Ended		9 Months Ended		12 Months Ended				24 Months Ended	48 Months Ended
Long Term Debt - Term Loan (Details)	Jul. 02, 2020 USD ($)	May 11, 2020 USD ($)	Apr. 24, 2020 USD ($)	Apr. 22, 2020 USD ($)	Jun. 10, 2019 USD ($)	Sep. 30, 2020 USD ($)	Sep. 30, 2019 USD ($)	Jun. 30, 2021	Dec. 31, 2020	Sep. 30, 2020 USD ($)	Sep. 30, 2019 USD ($)	Jul. 02, 2023	Jul. 02, 2022	Dec. 31, 2021	Jul. 02, 2021	Jul. 02, 2025	Jul. 02, 2025
Debt Instrument [Line Items]
Loss on extinguishment of debt						$ (8,201,000)	$ 0			$ (8,201,000)	$ 0
Proceeds from PPP loan			$ 10,000,000
Repayment of PPP loan		$ 10,000,000
Term loan \| Hayfin Loan Agreement Term Loan
Debt Instrument [Line Items]
Principal issued	$ 50,000,000
Original issue discount						296,000				296,000
Term loan \| Hayfin Loan Agreement Term Loan \| London Interbank Offered Rate (LIBOR)
Debt Instrument [Line Items]
Debt instrument, interest rate, floor (percent)	1.50%
Debt instrument, basis spread on variable rate	6.75%
Default interest rate (percent)	3.00%
Interest rate at issuance (percent)	8.30%
Term loan \| Financing Transactions
Debt Instrument [Line Items]
Principal issued	$ 100,000,000
Term loan \| Credit Facilities
Debt Instrument [Line Items]
Debt covenant, minimum liquidity	10,000,000
Commitment fee	3,300,000
Original issue discount	$ 500,000
Upfront commitment fee (percent)	2.00%
Deferred financing costs	$ 3,253,000
Term loan \| Hayfin Loan Agreement Delayed Draw Term Loan
Debt Instrument [Line Items]
Total net leverage ratio	3.5
Commitment fee						64,000				64,000
Additional commitment fee (percent)	1.00%
Term loan \| BT Term Loan
Debt Instrument [Line Items]
Original issue discount					$ 2,300,000
Deferred financing costs					6,700,000
Proceeds from BT Term Loan					75,000,000
Debt instrument, periodic payment					$ 900,000
Fair value of the Term Loan						$ 50,300,000				$ 50,300,000
Term loan \| Amended Term Loan Agreement
Debt Instrument [Line Items]
Deferred financing costs				$ 700,000
Term loan \| Amended Term Loan Agreement \| London Interbank Offered Rate (LIBOR)
Debt Instrument [Line Items]
Debt instrument, basis spread on variable rate				9.00%
Increase in interest rate (percent)				1.00%
Forecast \| Term loan \| Hayfin Loan Agreement Term Loan, Total Net Leverage Ratio Less than 2.0x but Greater than or Equal to 1.0x \| London Interbank Offered Rate (LIBOR)
Debt Instrument [Line Items]
Debt instrument, basis spread on variable rate														6.50%
Forecast \| Term loan \| Hayfin Loan Agreement Term Loan, Total Net Leverage Ratio Less than 1.0x \| London Interbank Offered Rate (LIBOR)
Debt Instrument [Line Items]
Debt instrument, basis spread on variable rate														6.00%
Total net leverage ratio														1.0
Forecast \| Term loan \| Credit Facilities
Debt Instrument [Line Items]
Total net leverage ratio								4.5	5.0								4.0
Debt instrument, prepayment make-whole premium as percent of prepaid principal (percent)												1.00%	2.00%		5.00%	0.00%
Debt instrument, prepayment make-whole premium as percent of prepaid principal, plus accrued interest (percent)															102.00%
Minimum \| Forecast \| Term loan \| Hayfin Loan Agreement Term Loan, Total Net Leverage Ratio Less than 2.0x but Greater than or Equal to 1.0x \| London Interbank Offered Rate (LIBOR)
Debt Instrument [Line Items]
Total net leverage ratio														1.0
Maximum \| Forecast \| Term loan \| Hayfin Loan Agreement Term Loan, Total Net Leverage Ratio Less than 2.0x but Greater than or Equal to 1.0x \| London Interbank Offered Rate (LIBOR)
Debt Instrument [Line Items]
Total net leverage ratio														2.0

Long Term Debt - Term Loan Debt Issuance Costs (Details) - Term loan - USD ($) $ in Thousands	Sep. 30, 2020	Jul. 02, 2020
Hayfin Loan Agreement Term Loan
Debt Instrument [Line Items]
Original issue discount	$ 296
Credit Facilities
Debt Instrument [Line Items]
Original issue discount		$ 500
Deferred financing costs		3,253
Long term debt \| Hayfin Loan Agreement Term Loan
Debt Instrument [Line Items]
Original issue discount		333
Deferred financing costs		2,169
Other current assets \| Hayfin Loan Agreement Delayed Draw Term Loan
Debt Instrument [Line Items]
Original issue discount		167
Deferred financing costs		$ 1,084

Long Term Debt - Term Loan Balances (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019	Jun. 10, 2019
Debt Instrument [Line Items]
Long term debt	$ 50,000
Current portion
Liability component - net carrying value	0	$ 3,750
Long-term
Liability component - net carrying value	47,627	61,906
Term loan \| Hayfin Loan Agreement Term Loan
Debt Instrument [Line Items]
Outstanding principal	50,000
Deferred financing costs	(2,077)
Original issue discount	(296)
Long term debt	$ 47,627
Term loan \| BT Term Loan
Debt Instrument [Line Items]
Original issue discount			$ (2,300)
Current portion
Liability component - principal		3,750
Original issue discount		0
Deferred financing cost		0
Liability component - net carrying value		3,750
Long-term
Liability component - principal		69,375
Original issue discount		(1,890)
Deferred financing cost		(5,579)
Liability component - net carrying value		$ 61,906

Long Term Debt - Term Loan Interest Expense (Details) - Term loan - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Hayfin Loan Agreement Term Loan
Debt Instrument [Line Items]
Interest on principal balance	$ 1,031		$ 1,031
Amortization of deferred financing costs	90		90
Accretion of original issue discount	38		38
Total BT Term Loan interest expense	1,159		1,159
Hayfin Loan Agreement Delayed Draw Term Loan
Debt Instrument [Line Items]
Amortization of deferred financing costs	106		106
Accretion of original issue discount	125		125
Commitment fee	64		64
Total BT Term Loan interest expense	295		295
BT Term Loan
Debt Instrument [Line Items]
Interest on principal balance	42	$ 2,024	3,773	$ 2,417
Amortization of deferred financing costs	11	478	1,051	563
Accretion of original issue discount	4	158	354	189
Accretion of amendment fee	2	0	53	0
Total BT Term Loan interest expense	$ 59	$ 2,660	$ 5,231	$ 3,169

Long Term Debt - Term Loan Maturity (Details) $ in Thousands	Sep. 30, 2020 USD ($)
Debt Disclosure [Abstract]
2020 (excluding the nine months ended September 30, 2020)	$ 0
2021	0
2022	0
2023	0
2024	0
Thereafter	50,000
Long term debt	$ 50,000

Long Term Debt - Term Loan Extinguishment of Debt (Details) - USD ($) $ in Thousands		3 Months Ended		9 Months Ended
	Jul. 02, 2020	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Extinguishment of Debt [Line Items]
Loss on extinguishment of debt		$ 8,201	$ 0	$ 8,201	$ 0
BT Loan Agreement
Extinguishment of Debt [Line Items]
Unamortized deferred financing costs	$ 4,528
Unamortized original issue discount	1,538
Unamortized amendment fee	671
Prepayment premium	1,439
Other fees	25
Loss on extinguishment of debt	$ 8,201

Net (Loss) Income Per Common Share - Basic Net (Loss) Income Per Common Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Earnings Per Share [Abstract]
Net (loss) income	$ (19,417)	$ 12,379	$ (32,704)	$ (18,104)
Adjustments to reconcile to net (loss) income available to common stockholders
Accrued dividend on Series B Convertible Preferred Stock	997	0	997	0
Amortization of beneficial conversion feature	31,110	0	31,110	0
Accretion of increasing-rate dividend feature	458	0	458	0
Total adjustments	32,565	0	32,565	0
Net (loss) income available to common stockholders	$ (51,982)	$ 12,379	$ (65,269)	$ (18,104)
Weighted average shares outstanding - basic (in shares)	108,493,208	107,157,561	108,222,419	106,929,643
Basic net (loss) income per common share (in dollars per share)	$ (0.48)	$ 0.12	$ (0.60)	$ (0.17)

Net (Loss) Income Per Common Share - Diluted Net (Loss) Income Per Common Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Computation of basic and diluted net loss per share [Abstract]
Net (loss) income available to common stockholders (Note 9)	$ (51,982)	$ 12,379	$ (65,269)	$ (18,104)
Dividends on Series B Convertible Preferred Stock	32,565	0	32,565	0
Numerator	$ (51,982)	$ 12,379	$ (65,269)	$ (18,104)
Weighted average shares outstanding - basic (in shares)	108,493,208	107,157,561	108,222,419	106,929,643
Potential common shares (a)	28,625,684	2,432,447	11,032,820	1,635,797
Weighted average shares outstanding adjusted for potential common shares	108,493,208	109,590,008	108,222,419	106,929,643
Diluted net (loss) income per common share (in dollars per share)	$ (0.48)	$ 0.11	$ (0.60)	$ (0.17)
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share (in shares)	28,625,684	2,432,447	11,032,820	1,635,797
Series B Convertible Preferred Stock
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share (in shares)	25,691,700	0	8,626,410	0
Outstanding Stock Options
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share (in shares)	772,967	848,507	739,937	903,344
Performance Based Awards
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share (in shares)	37,931	0	25,735	0
Restricted Stock Awards
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share (in shares)	1,203,853	1,583,940	1,281,635	732,453
Restricted Stock Units (RSUs)
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share (in shares)	919,233	0	359,103	0

Equity - Additional Information (Details)		3 Months Ended		9 Months Ended
Equity - Additional Information (Details)	Jul. 02, 2020 USD ($) director day $ / shares	Sep. 30, 2020 USD ($) $ / shares shares	Sep. 30, 2019 USD ($)	Sep. 30, 2020 USD ($) $ / shares shares	Sep. 30, 2019 USD ($)	Dec. 31, 2019 $ / shares
Dividends Payable [Line Items]
Series B convertible preferred stock par value (in dollars per share) \| $ / shares		$ 0.001		$ 0.001		$ 0.001
Proceeds from sale of Series B convertible preferred stock				$ 100,000,000	$ 0
Amortization of beneficial conversion feature		$ 31,110,000	$ 0	$ 31,110,000	$ 0
Effective tax rate		(0.20%)	(2.60%)	25.60%	1.20%
Series B Preferred convertible Stock, dividends accrued but not recorded for the period		$ 997,000	$ 0	$ 997,000	$ 0
Accretion of increasing-rate dividend feature		$ 458,000	$ 0	$ 458,000	$ 0
Preferred Class B Convertible Stock
Dividends Payable [Line Items]
Issuance of Series B Convertible Preferred Stock	$ 100,000,000
Series B convertible preferred stock par value (in dollars per share) \| $ / shares	$ 0.001
Proceeds from sale of Series B convertible preferred stock	$ 100,000,000
Conversion ratio of Series B preferred stock to common stock	259.74	262.33		262.33
Series B preferred stock, conversion price (in dollars per share) \| $ / shares	$ 3.85
Series B preferred stock, minimum percentage of conversion stock price to trigger conversion (percent)	200.00%
Number of trading days within consecutive day trading period common stock must exceed trigger conversion price \| day	20
Series B preferred stock, threshold number of consecutive trading days \| day	30
Series B preferred stock, minimum percentage of conversion stock price on conversion date (percent)	200.00%
Number of board seats elected by Series B preferred stockholders \| director	2
Series B preferred stock, maximum voting stock percentage on an as-converted basis (percent)	19.90%
Series B preferred stock, increasing-rate dividend feature	$ 1,800,000
Series B Preferred Convertible stock, dividend accrued per share (in dollars per share) \| $ / shares		$ 9.86
Series B Preferred convertible Stock, dividends accrued but not recorded for the period		$ 1,000,000.0
Series B Preferred convertible stock, dividends in arrears		$ 1,000,000.0		$ 1,000,000.0
Series B Preferred convertible stock, shares issuable upon conversion (shares) \| shares		26,233,055		26,233,055
Accretion of increasing-rate dividend feature		$ 500,000
Preferred Class B Convertible Stock \| Discounted Dividend Rate prior to Quarterly Dividend Payment ending on June 30,2021
Dividends Payable [Line Items]
Series B convertible stock, cumulative dividend (percent)	4.00%
Preferred Class B Convertible Stock \| Perpetual Dividend Rate after Quarterly Dividend Payment ending on June 30, 2021
Dividends Payable [Line Items]
Series B convertible stock, cumulative dividend (percent)	6.00%

Equity - Changes in Series B Preferred Stock (Details) - USD ($) $ in Thousands	3 Months Ended	9 Months Ended
	Sep. 30, 2020	Sep. 30, 2020	Sep. 30, 2019
Increase (Decrease) in Temporary Equity [Roll Forward]
Series B Preferred Stock, outstanding, beginning (in shares)		0
Series B Preferred Stock, outstanding, ending (in shares)	0	0
Series B Preferred Stock, outstanding, beginning		$ 0
Deemed dividends	$ 31,568	31,568	$ 0
Series B Preferred Stock, outstanding, ending	$ 91,108	$ 91,108
Series B Convertible Preferred Stock
Increase (Decrease) in Temporary Equity [Roll Forward]
Series B Preferred Stock, outstanding, beginning (in shares)	0	0
Issuance of Series B Preferred Stock (in shares)	100,000	100,000
Series B Preferred Stock, outstanding, ending (in shares)	100,000	100,000
Series B Preferred Stock, outstanding, beginning	$ 0	$ 0
Issuance of Series B Preferred Stock	59,540	59,540
Deemed dividends	31,568	31,568
Series B Preferred Stock, outstanding, ending	$ 91,108	$ 91,108

Income taxes (Details) - USD ($)	3 Months Ended		9 Months Ended
Income taxes (Details) - USD ($)	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Income Tax Disclosure [Abstract]
Effective tax rate	(0.20%)	(2.60%)	25.60%	1.20%
Effective income tax rate impact of discrete items	$ 0	$ 300,000	$ 11,400,000	$ 300,000
Income taxes receivable	$ 11,300,000		11,300,000
Tax benefit recognized with respect to net operating loss			$ 0

Supplemental Disclosure of Cash Flow and Non-Cash Investing and Financing Activities (Details) - USD ($) $ in Thousands	3 Months Ended	9 Months Ended
	Sep. 30, 2020	Sep. 30, 2020	Sep. 30, 2019
Cash paid for interest		$ 6,308	$ 2,417
Income taxes paid		213	308
Non-cash activities:
Deferred financing costs		471	0
Stock issuance costs		942	0
Deemed dividends on Series B Convertible Preferred Stock	$ 31,568	31,568	0
Amendment fee on BT Term Loan		722	$ 0
Series B Convertible Preferred Stock
Non-cash activities:
Deemed dividends on Series B Convertible Preferred Stock	$ 31,568	$ 31,568

Contractual Commitments and Contingencies - Narrative (Details) $ in Thousands			3 Months Ended		9 Months Ended
	May 15, 2019 shareholder	Jan. 16, 2019 lawsuit	Sep. 30, 2020 USD ($)	Sep. 30, 2019 USD ($)	Sep. 30, 2020 USD ($)	Sep. 30, 2019 USD ($)	Dec. 31, 2019 USD ($)	Dec. 06, 2018 lawsuit
Loss Contingencies [Line Items]
Rent expense			$ 300	$ 300	$ 1,000	$ 1,100
Accrued settlement costs			$ 7,575		7,575		$ 5,931
Payments for legal settlements					$ 7,400
Shareholder Derivative Suits
Loss Contingencies [Line Items]
Number of shareholder derivative actions \| lawsuit								3
Nix and Damiano v. Evans, et al.
Loss Contingencies [Line Items]
Number of shareholders \| shareholder	2
Securities Class Action
Loss Contingencies [Line Items]
Number of class actions \| lawsuit		2
Minimum
Loss Contingencies [Line Items]
Lease expiration period			3 years		3 years

Revenue Data by Customer Type (Details) $ in Thousands	3 Months Ended		9 Months Ended
Revenue Data by Customer Type (Details) $ in Thousands	Sep. 30, 2020 USD ($) distribution_channel	Sep. 30, 2019 USD ($)	Sep. 30, 2020 USD ($) distribution_channel	Sep. 30, 2019 USD ($)
Revenue, Major Customer [Line Items]
Number of primary distribution channels \| distribution_channel	2		2
Net sales	$ 64,303	$ 88,863	$ 179,686	$ 222,855
Direct Customers
Revenue, Major Customer [Line Items]
Net sales	62,409	84,264	175,060	214,014
Distributors
Revenue, Major Customer [Line Items]
Net sales	$ 1,894	$ 4,599	$ 4,626	$ 8,841

Subsequent Events (Details)	Oct. 02, 2020 shares
Subsequent Event
Subsequent Event [Line Items]
Common stock, additional shares authorized (shares)	37,500,000