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Document and Entity Information - shares	6 Months Ended
Document and Entity Information - shares	Jun. 30, 2016	Jul. 15, 2016
Document and Entity Information [Abstract]
Entity Registrant Name	MIMEDX GROUP, INC.
Entity Central Index Key	0001376339
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		110,042,283
Document Fiscal Year Focus	2016
Document Fiscal Period Focus	Q2
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Jun. 30, 2016

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Current assets:
Cash and cash equivalents	$ 23,803	$ 28,486
Short term investments	0	3,000
Accounts receivable, net	54,861	53,755
Inventory, net	17,207	7,460
Prepaid expenses and other current assets	5,970	3,609
Total current assets	101,841	96,310
Property and equipment, net of accumulated depreciation	13,049	9,475
Goodwill	26,951	4,040
Intangible assets, net of accumulated amortization	27,693	10,763
Deferred tax asset, net	7,077	14,838
Deferred financing costs and other assets	444	487
Total assets	177,055	135,913
Current liabilities:
Accounts payable	9,678	6,633
Accrued compensation	10,245	15,034
Accrued expenses	6,988	4,644
Current portion of earn out liability	9,642	0
Other current liabilities	1,985	466
Total current liabilities	38,538	26,777
Earn out liability	15,978	0
Other liabilities	934	1,148
Total liabilities	55,450	27,925
Commitments and contingencies
Stockholders' equity:
Preferred stock; $.001 par value; 5,000,000 shares authorized and 0 shares issued and outstanding	0	0
Common stock; $.001 par value; 150,000,000 shares authorized; 110,025,697 issued and 110,022,283 outstanding at June 30, 2016 and 109,467,416 issued and 107,361,471 outstanding at December 31, 2015	110	109
Additional paid-in capital	156,457	163,133
Treasury stock at cost: 3,414 shares at June 30, 2016 and 2,105,945 shares at December 31, 2015	(4)	(17,124)
Accumulated deficit	(34,958)	(38,130)
Total stockholders' equity	121,605	107,988
Total liabilities and stockholders' equity	$ 177,055	$ 135,913

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Jun. 30, 2016	Dec. 31, 2015
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)	110,025,697	109,467,416
Common stock, shares outstanding (in shares)	110,022,283	107,361,471
Treasury stock, shares (in shares)	3,414	2,105,945

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Income Statement [Abstract]
Net sales	$ 57,342	$ 45,679	$ 110,710	$ 86,446
Cost of sales	7,394	5,089	15,341	10,237
Gross margin	49,948	40,590	95,369	76,209
Operating expenses:
Research and development expenses	3,168	2,054	5,664	3,885
Selling, general and administrative expenses	42,772	32,651	83,420	61,960
Amortization of intangible assets	447	233	1,257	465
Operating income	3,561	5,652	5,028	9,899
Other income (expense), net
Interest income (expense), net	(111)	1	(167)	(13)
Income before income tax provision	3,450	5,653	4,861	9,886
Income tax provision	(1,475)	(223)	(1,689)	(369)
Net income	$ 1,975	$ 5,430	$ 3,172	$ 9,517
Net income per common share - basic (in dollars per share)	$ 0.02	$ 0.05	$ 0.03	$ 0.09
Net income per common share - diluted (in dollars per share)	$ 0.02	$ 0.05	$ 0.03	$ 0.08
Weighted average shares outstanding - basic (in shares)	106,191,932	106,211,120	105,873,727	106,013,752
Weighted average shares outstanding - diluted (in shares)	112,148,415	114,186,329	112,095,051	113,892,087

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - 6 months ended Jun. 30, 2016 - USD ($) $ in Thousands	Total	Common Stock	Additional Paid - in Capital	Treasury Stock	Accumulated Deficit
Balance, beginning of period at Dec. 31, 2015	$ 107,988	$ 109	$ 163,133	$ (17,124)	$ (38,130)
Balance (in shares) at Dec. 31, 2015		109,467,416		2,105,945
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Share-based compensation expense	9,124		9,124
Exercise of stock options	$ 2,016		(2,745)	$ 4,761
Exercise of stock options (in shares)	804,041	223,928		(580,113)
Issuance of restricted stock	$ 0	$ 1	(13,422)	$ 13,421
Issuance of restricted stock (in shares)		334,353		(1,660,079)
Restricted stock shares cancelled/forfeited	0		825	$ (825)
Restricted stock shares cancelled/forfeited (in shares)				102,230
Shares issued for services performed	$ 173		4	$ 169
Shares issued for services performed (in shares)	20,406			(20,406)
Stock repurchase	$ (3,530)			$ (3,530)
Stock repurchase (in shares)	415,252			415,252
Shares repurchased for tax withholding	$ (684)			$ (684)
Shares repurchased for tax withholding (in shares)				81,594
Shares issued in conjunction with acquisition	$ 3,346		(462)	$ 3,808
Shares issued in conjunction with acquisition (in shares)	441,009			(441,009)
Net income	$ 3,172				3,172
Balance, end of period at Jun. 30, 2016	$ 121,605	$ 110	$ 156,457	$ (4)	$ (34,958)
Balance (in shares) at Jun. 30, 2016		110,025,697		3,414

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
Cash flows from operating activities:
Net income	$ 3,172	$ 9,517
Adjustments to reconcile net income to net cash from operating activities:
Depreciation	1,555	776
Amortization of intangible assets	1,257	465
Amortization of inventory fair value step-up	1,224	0
Amortization of deferred financing costs	91	0
Share-based compensation	9,124	8,186
Increase (decrease) in cash, net of effects of acquisition, resulting from changes in:
Accounts receivable	894	(12,776)
Inventory	(2,245)	1,274
Prepaid expenses and other current assets	(1,781)	(1,106)
Other assets	(264)	(26)
Accounts payable	(5,597)	2,060
Accrued compensation	(4,789)	(1,862)
Accrued expenses	2,344	1,221
Other liabilities	1,318	(586)
Net cash flows from operating activities	6,303	7,143
Cash flows from investing activities:
Purchases of equipment	(3,755)	(2,513)
Purchase of Stability Inc., net of cash acquired	(7,631)	0
Fixed maturity securities redemption	3,000	1,750
Patent application costs	(327)	(402)
Net cash flows from investing activities	(8,713)	(1,165)
Cash flows from financing activities:
Proceeds from exercise of stock options	2,016	2,741
Stock repurchase under repurchase plan	(3,530)	(16,641)
Stock repurchase for tax withholdings on vesting of restricted stock	(684)	0
Deferred financing costs	(61)	0
Payments under capital lease obligations	(14)	(59)
Net cash flows from financing activities	(2,273)	(13,959)
Net change in cash	(4,683)	(7,981)
Cash and cash equivalents, beginning of period	28,486	46,582
Cash and cash equivalents, end of period	$ 23,803	$ 38,601

Basis of Presentation	6 Months Ended
Basis of Presentation	Jun. 30, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of Presentation	Basis of Presentation The accompanying 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. Changes to GAAP are established by the Financial Accounting Standards Board (“FASB”) in the form of Accounting Standards Updates (“ASU’’) to the FASB’s Accounting Standards Codification (“ASC”). 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. Operating results for the six months ended June 30, 2016 and 2015, are not necessarily indicative of the results that may be expected for the fiscal year. The balance sheet at December 31, 2015, has been 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. You should read these condensed consolidated financial statements together with the historical consolidated financial statements of the Company for the year ended December 31, 2015, included in the Company's Annual Report on Form 10-K for the year ended December 31, 2015, filed with the SEC on February 29, 2016. 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, Surgical, Sports Medicine, Ophthalmic and Dental market categories. The Company's biomaterial platform technologies include tissue technologies, AmnioFix® and EpiFix®, amniotic fluid derived allograft, OrthoFlo, and anticipated device technology, CollaFix™, which the Company has yet to commercialize. Through the recent acquisition of Stability Inc., our newest proprietary platforms include Physio®, a unique bone grafting material comprised of 100% bone tissue with no added carrier, thus maximizing bone forming potential, a demineralized bone matrix (DBM) to complement our product portfolio offerings within the Orthopedic market and AlloBurn™, a skin product for burns.

Significant Accounting Policies	6 Months Ended
Significant Accounting Policies	Jun. 30, 2016
Accounting Policies [Abstract]
Significant Accounting Policies	Significant Accounting Policies Please see Note 2 to the Company's Consolidated Financial Statements included in the Company’s Form 10-K for the fiscal year ended December 31, 2015, for a description of all significant accounting policies. Use of Estimates The preparation of financial statements in 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 financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. 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 balance and general economic conditions that may affect the customers' ability to pay. Inventories Inventory is valued at the lower of cost or market value. The Company assesses the valuation of its inventory on a periodic basis and makes adjustments to the value for estimated excess and obsolete inventory based on estimates about future demand. The excess balance determined by this analysis becomes the basis for the Company's excess inventory charge. The Company's excess inventory review process includes analysis of sales forecasts, managing product rollovers and working with operations to maximize recovery of excess inventory. The value of inventory as of June 30, 2016 includes a fair value step - up connected with the January 2016 acquisition of Stability Inc. of approximately $800,000, which is comprised of approximately $2.0 million as of the date of the acquisition less amortization of approximately $1.2 million during the six months ended June 30, 2016. Please see Note 4 contained herein. Revenue Recognition The Company sells its products through a combination of a direct sales force and independent stocking distributors and representatives in the U.S. and independent distributors in international markets. The Company recognizes revenue when title to the goods transfers to customers, provided there are no material remaining performance obligations required of the Company or any matters of customer acceptance. In cases where the Company utilizes distributors or ships product directly to the end user, it recognizes revenue upon shipment provided all other revenue recognition criteria have been met. A portion of the Company's revenue is generated from inventory maintained at hospitals, clinics and doctor's offices. For these products, revenue is recognized at the time the product has been used or implanted. The Company records estimated sales returns, discounts and allowances as a reduction of net sales in the same period revenue is recognized. Acquisitions Results of operations of acquired companies are included in the Company’s results of operations as of the respective acquisition dates. The purchase price of each acquisition is allocated to the net assets acquired based on estimates of their fair values at the date of the acquisition. Any purchase price in excess of these net assets is recorded as goodwill. The allocation of purchase price in certain cases may be subject to revision based on the final determination of fair values during the measurement period, which may be up to one year from the acquisition date. Contingent consideration is recognized at the estimated fair value on the acquisition date. Subsequent changes to the fair value of contingent payments are recognized in earnings. Contingent payments related to acquisitions consist of an earn out based on sales less direct production costs, and are valued using discounted cash flow techniques. The fair value of these payments is based upon probability-weighted future revenue estimates and increases or decreases as revenue estimates or expectation of timing of payments changes. 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 $327,000 of patent costs during the first six months of 2016. The Company capitalized approximately $402,000 of patent costs during the first six months of 2015. 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 first - in first - out (FIFO) basis. Recent Accounting Pronouncements The Company considers the applicability and impact of all Accounting Standards Updates ("ASUs") issued both effective and not yet effective. In May 2014, the FASB issued ASU 2014-09, “Revenue Recognition - Revenue from Contracts with Customers” (ASU 2014-09) that requires companies to recognize revenue when a customer obtains control rather than when companies have transferred substantially all risks and rewards of a good or service. This update is effective for annual reporting periods beginning on or after December 15, 2017 and interim periods therein and requires expanded disclosures. The Company is currently assessing the impact the adoption of ASU 2014-09 will have on our condensed consolidated financial statements. In November 2015, the FASB issued ASU No. 2015-17, 'Balance Sheet Classification of Deferred Taxes'. ASU 2015-17 simplifies the presentation of deferred taxes by requiring deferred tax assets and liabilities be classified as noncurrent on the balance sheet. ASU 2015-17 is effective for public companies for annual reporting periods beginning after December 15, 2016, and interim periods within those fiscal years. The guidance may be adopted prospectively or retrospectively and early adoption is permitted. The Company adopted this standard, prospectively, at the beginning of the fourth quarter 2015 to simplify reporting with the release of the valuation allowance as disclosed in Note 12. Prior periods were not retrospectively adjusted. In February 2016, the FASB issued ASU No. 2016-02, 'Leases (Topic 842)'. The core principle of Topic 842 is that a lessee should recognize the assets and liabilities that arise from both capital and operating leases. ASU 2016-02 is effective for public companies for annual reporting periods beginning after December 15, 2018, and interim periods within those fiscal years. The guidance may be adopted prospectively or retrospectively and early adoption is permitted. The Company is currently assessing the impact the adoption of ASU 2016-02 will have on its consolidated financial statements. In March 2016, the FASB issued ASU No. 2016-09, "Compensation - Stock Compensation (Topic 718)". The standard is intended to simplify several areas of accounting for share - based compensation arrangements, including the income tax impact, classification on the statement of cash flows and forfeitures. This ASU is effective for fiscal years beginning after December 15, 2016. The Company is currently assessing the impact the adoption of ASU 2016-09 will have on its consolidated financial statements. All other ASUs issued and not yet effective for the six months ended June 30, 2016, 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.

Liquidity and Management's Plans	6 Months Ended
Liquidity and Management's Plans	Jun. 30, 2016
Liquidity and management's plans [Abstract]
Liquidity and Management's Plans	Liquidity and Management’s Plans As of June 30, 2016, the Company had approximately $23,803,000 of cash and cash equivalents. The Company reported total current assets of approximately $101,841,000 and current liabilities of approximately $38,538,000 as of June 30, 2016. The Company believes that its anticipated cash from operating and financing activities, existing cash and cash equivalents, and availability under its line of credit will enable the Company to meet its operational liquidity needs and fund its planned investing activities for the next twelve months.

Acquisition of Stability Inc.

6 Months Ended

Jun. 30, 2016

Business Combinations [Abstract]

Acquisition of Stability Inc.

On January 13, 2016, the Company completed the acquisition of Stability Inc., d/b/a Stability Biologics, a provider of human

tissue products to surgeons, facilities, and distributors serving the surgical, spine, and orthopedic sectors of the healthcare

industry. As a result of this transaction, the Company acquired all of the outstanding shares of Stability in exchange for

$6,000,000 cash, $3,346,000 in stock, represented by 441,009 shares of our common stock, and assumed debt of $1,771,000. Additional one time costs incurred in connection with the transaction totaled $851,000 and are included withing selling, general and administrative expenses on the condensed consolidated statements of operations. Contingent consideration may be payable in a formula determined by sales less certain expenses for the years 2016 and 2017. As of June 30, 2016, the contingent consideration was valued at $25,620,000 and is shown in the schedule below as fair value of earn-out. The Company used a third party specialist to assist us with the valuation. The contingent consideration was classified as a liability.

The Company has evaluated the contingent consideration for accounting purposes under GAAP and has determined that the

contingent consideration is within the scope of ASC 480 Distinguishing Liabilities from Equity whereby a financial instrument,

other than an outstanding share, that embodies a conditional obligation that the issuer may settle by issuing a variable number

of its equity shares shall be classified as a liability if, at inception, the monetary value of the obligation is based solely or

predominantly on variations in something other than the fair value of the issuer’s equity shares.

The actual purchase price was based on cash paid, the fair value of our stock on the date of the acquisition, and direct costs

associated with the combination. The actual purchase price has been preliminarily allocated as of June 30, 2016 (in

thousands) and is subject to change:



Cash paid at closing	$	6,000
Working capital adjustment	(480		)
Common stock issued (441,009 shares valued at $9.07 per share)	3,346
Assumed debt	1,771
Fair value of earn-out	25,620
Total fair value of purchase price	$	36,257

Net assets acquired:
Debt-free working capital	$	2,179
Other assets, net	199
Property, plant and equipment	1,375
Deferred tax liability	(8,268		)
Subtotal	(4,515		)
Intangible assets:
Customer relationships	6,090
Patents and know-how	9,170
Trade names and trademarks	830
Non compete agreements	1,080
Licenses and permits	690
Subtotal	17,860
Goodwill	22,912
Total Assets Purchased	$	36,257

Working capital and other assets were composed of the following (in thousands):
Working capital
Cash	$	140
Prepaid Expenses and other current assets	100
Accounts receivable	2,001
Federal and state taxes receivable	28
Inventory	8,725
Accounts payable and accrued expenses	(8,815		)
Debt-free working capital	$	2,179

Current portion of long term debt	$	(194	)
Long-term debt	(560		)
Line of Credit	(932		)
Shareholder loan	(85		)
Net working capital	$	408

Other assets:
Other long term assets	$	199

The acquisition was accounted for as a purchase business combination as defined by FASB Topic 805 - Business Combinations.

The fair value of the contingent consideration is measured as a Level 3 instrument. The contingent consideration liability is

recorded at fair value on the acquisition date and will be remeasured quarterly until purchase accounting is completed based on the assessed fair value and adjusted if necessary. The increases or decreases in the fair value of contingent consideration can result from changes in anticipated revenue levels and changes in assumed discount periods and rates. As the fair value measured is based on significant inputs that are not observable in the market, they are categorized as Level 3. The income valuation approach was applied in determining the fair value of the contingent consideration using a discounted cash flow valuation technique with significant unobservable inputs comprised of projected sales and certain expenses. The values assigned to intangible assets are subject to amortization.The intangible assets were assigned the following lives for amortization purposes:



		Estimated useful life (in years)
Intangible asset:
Customer relationships		12
Patents and know-how		20
Trade name and Trademarks		Indefinite
Non compete agreements		4
Licenses and permits		2

Goodwill consists of the excess of the purchase price paid over the identifiable net assets and liabilities acquired at fair value.

Goodwill was determined using the residual method based on an independent appraisal of the assets and liabilities acquired in

the transaction and is preliminary as of June 30, 2016 and is subject to change. Goodwill is tested for impairment on an annual basis as definedby FASB Topic 350 - "Intangibles - Goodwill and Other".

The following unaudited pro forma summary financial information presents the consolidated results of operations as if the

acquisition had occurred on January 1, 2015. The pro forma results are shown for illustrative purposes only and do not purport

to be indicative of the results that would have been reported if the acquisition had occurred on the date indicated or indicative

of the results that may occur in the future.

Unaudited pro forma information for the three and six months ended June 30, 2016 and 2015 (in thousands) is as follows:



	Three months ended June 30,				Six months ended June 30,
	2016		2015		2016		2015
Revenue	$	57,342	$	50,492	$	111,258	$	96,413

Net income	$	2,057	$	4,919	$	3,668	$	7,975

Income per share, fully diluted	$	0.02	$	0.04	$	0.03	$	0.07

The 2016 supplemental pro forma earnings were adjusted to exclude $851,000 of acquisition-related legal, audit and other

costs, net of tax. The 2015 supplemental pro forma earnings were adjusted to include $787,000 of amortization costs related to

recorded intangible assets with defined useful lives, and $1,224,000 of inventory step-up charges as a result of the acquisition

for comparability to 2016. The number of shares outstanding used in calculating the income per share for 2015 was adjusted to include 441,009 shares issued as part of the purchase price and assumed to be issued on January 1, 2015.

- Definition

The entire disclosure for a business combination (or series of individually immaterial business combinations) completed during the period, including background, timing, and recognized assets and liabilities. The disclosure may include leverage buyout transactions (as applicable).

+ References

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+ Details

Short Term Investments	6 Months Ended
Short Term Investments	Jun. 30, 2016
Cash and Cash Equivalents [Abstract]
Short Term Investments	Short Term Investments Short term investments consisted of approximately $3,000,000 of FDIC insured certificates of deposit held with various financial institutions as of December 31, 2015. The cost of these instruments approximated their fair market value at December 31, 2015.

Inventories

6 Months Ended

Jun. 30, 2016

Inventory Disclosure [Abstract]

Inventories

Inventories consisted of the following items as of June 30, 2016, and December 31, 2015 (in thousands):



	June 30, 2016			December 31, 2015
Raw materials	$	1,154		$	602
Work in process	5,888			3,850
Finished goods	11,945			3,405
Inventory, gross	18,987			7,857
Reserve for obsolescence	(1,780		)	(397		)
Inventory, net	$	17,207		$	7,460

Property and Equipment

6 Months Ended

Jun. 30, 2016

Property, Plant and Equipment [Abstract]

Property and Equipment

Property and equipment consist of the following as of June 30, 2016, and December 31, 2015 (in thousands):



	June 30, 2016			December 31, 2015
Leasehold improvements	$	3,245		$	2,684
Lab and clean room equipment	8,196			4,564
Furniture and office equipment	6,167			4,577
Construction in progress	2,169			2,629
Property and equipment, gross	19,777			14,454
Less accumulated depreciation	(6,728		)	(4,979		)
Property and equipment, net	$	13,049		$	9,475

Included in net property and equipment is approximately $427,000 of equipment covered under capital leases. The corresponding liability of approximately $72,000 is included in other liabilities in the accompanying Condensed Consolidated Balance Sheets. Interest rates for these leases range from approximately 3% to 12% with maturity dates from September 2016 to January 2018.

Also included is approximately $1.0 million in leasehold improvements paid for by the landlord of the Company's main facility with a corresponding liability included in other liabilities which is amortized over the term of the lease.

Depreciation expense for the six months ended June 30, 2016 and 2015, was approximately $1,555,000 and $776,000, respectively, and approximately $821,000 and $422,000 for the three months ended June 30, 2016 and 2015, respectively.

Intangible Assets and Royalty Agreement

6 Months Ended

Jun. 30, 2016

Goodwill and Intangible Assets Disclosure [Abstract]

Intangible Assets and Royalty Agreement

Intangible assets are summarized as follows (in thousands):



	Weighted Average Amortization Lives	June 30, 2016			December 31, 2015
		Cost			Cost
Licenses (a) (b) (d)	7 years	$	1,699		$	1,009
Patents & Know How (b) (d)	19 years	17,176			8,001
Customer & Supplier Relationships (b) (d)	13 years	9,851			3,761
Tradenames & Trademarks (b) (d)	indefinite	1,838			1,008
Non-compete agreements (d)	4 years	1,080			—
In Process Research & Development (b)	n/a	25			25
Patents in Process (c)	n/a	2,146			1,823
Total		33,815			15,627
Less Accumulated amortization and impairment charges		(6,122		)	(4,864		)
Net		$	27,693		$	10,763

(a)

On January 29, 2007, the Company acquired a license from Shriners Hospitals for Children and University of South Florida Research Foundation, Inc. in the amount of $996,000. Within 30 days after the receipt by the Company of approval by the FDA allowing the sale of the first licensed product, the Company is required to pay an additional $200,000 to the licensor. Due to its contingent nature, this amount is not recorded as a liability. The Company will also be required to pay a royalty of 3% on all commercial sales revenue from the licensed products. The Company is also obligated to pay a $50,000 minimum annual royalty payment over the life of the license.

(b)

On January 5, 2011, the Company acquired Surgical Biologics, LLC. As a result, the Company recorded intangible assets for Customer & Supplier Relationships of $3,761,000, Patents & Know-How of $7,690,000, Licenses of $13,000, Tradenames & Trademarks of $1,008,000 and In-Process Research & Development of $25,000. For the six months ended June 30, 2016, approximately $4,000 of costs associated with patents granted during the period were capitalized and included in Patents & Know-How subject to amortization.


(c)	Patents in Process consist of capitalized external legal and other registration costs in connection with internally developed tissue-based patents that are pending. Once issued, the costs associated with a given patent will be included in Patents & Know-How under intangible assets subject to amortization.


(d)	On January 13, 2016, the Company acquired Stability Inc. As a result, the Company recorded intangible assets for Patents & Know - How of $9,170,000, Customer Relationships of $6,090,000, Non - compete agreements of$1,080,000, Tradenames & Trademarks of $830,000 and Licenses of $690,000.

Amortization expense for the six months ended June 30, 2016 and 2015, was approximately $1,257,000 and $465,000, respectively, and $447,000 and $233,000 for three months ended June 30, 2016 and 2015, respectively.

Expected future amortization of intangible assets as of June 30, 2016, is as follows (in thousands):



Year ending December 31,	Estimated Amortization Expense
2016 (a)	$	1,259
2017	2,427
2018	2,072
2019	2,072
2020	1,802
Thereafter	16,223
	$	25,855

(a) Estimated amortization expense for the year ending December 31, 2016, includes only amortization to be recorded after June 30, 2016.

Credit Facility	6 Months Ended
Credit Facility	Jun. 30, 2016
Debt Disclosure [Abstract]
Credit Facility	Credit Facility On October 12, 2015, the Company and its subsidiaries entered into a Credit Agreement (the "Credit Agreement") with certain lenders and Bank of America, N.A., as administrative agent. The Credit Agreement establishes a senior secured revolving credit facility in favor of the Company with a maturity date of October 12, 2018 and an aggregate lender commitment of up to $50 million. The Credit Agreement also provides for an uncommitted incremental facility of up to $35 million, which can be exercised as one or more revolving commitment increases or new term loans, all subject to certain customary terms and conditions set forth in the Credit Agreement. Borrowings under the facility will bear interest at LIBOR plus 1.5% to 2.25%. Fees paid in connection with the initiation of the credit facility totaled approximately $500,000. These deferred financing costs are being amortized to interest expense over the three-year life of the facility. The Credit Agreement contains customary representations, warranties, covenants, and events of default. As of June 30, 2016, there were no outstanding revolving loans under the credit facility.

Net Income (Loss) Per Share

6 Months Ended

Jun. 30, 2016

Earnings Per Share [Abstract]

Net Income (Loss) Per Share

Basic net income (loss) per common share is computed using the weighted-average number of common shares outstanding during the period. Diluted net income per common share is computed using the weighted-average number of common and dilutive common equivalent shares from stock options, restricted stock, and warrants using the treasury stock method.

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



	Three Months Ended June 30,				Six Months Ended June 30,
	2016		2015		2016		2015
Net income	$	1,975	$	5,430	$	3,172	$	9,517
Denominator for basic earnings per share - weighted average shares	106,191,932		106,211,120		105,873,727		106,013,752
Effect of dilutive securities: Stock options, restricted stock, and warrants outstanding(a)	5,956,483		7,975,209		6,221,324		7,878,335
Denominator for diluted earnings per share - weighted average shares adjusted for dilutive securities	112,148,415		114,186,329		112,095,051		113,892,087
Income per common share - basic	$	0.02	$	0.05	$	0.03	$	0.09
Income per common share - diluted	$	0.02	$	0.05	$	0.03	$	0.08

(a) Securities outstanding that are included in the computation above, utilizing the treasury stock method are as follows:



	Three Months Ended June 30,		Six Months Ended June 30,
	2016	2015	2016	2015
Outstanding Stock Options	5,644,128	7,411,271	5,805,870	7,393,698
Outstanding Warrants	—	37,909	—	37,708
Restricted Stock Awards	312,355	526,029	415,454	446,929
	5,956,483	7,975,209	6,221,324	7,878,335

Equity

6 Months Ended

Jun. 30, 2016

Equity [Abstract]

Equity

Stock Incentive Plans

The Company has four share-based compensation plans: the MiMedx Group, Inc. 2016 Equity and Cash Incentive Plan (the "2016 Plan"), which was approved by shareholders on May 18, 2016, the MiMedx Group, Inc. Assumed 2006 Stock Incentive Plan (the “Assumed 2006 Plan”), the MiMedx Inc. 2007 Assumed Stock Plan (the “Assumed 2007 Plan”) and the MiMedx Group Inc. Amended and Restated Assumed 2005 Stock Plan (the “Assumed 2005 Plan”) which provide for the granting of equity awards, including qualified incentive and non-qualified stock options, stock appreciation awards and restricted stock awards to employees, directors, consultants and advisors. The awards are subject to a vesting schedule as set forth in each individual agreement. The Company intends to use only the 2016 Plan to make future grants.

Activity with respect to the stock options is summarized as follows:



	Number of Shares		Weighted- Average Exercise Price		Weighted-Average Remaining Contractual Term (in years)	Aggregate Intrinsic Value
Outstanding at January 1, 2016	14,019,629		$	3.62
Granted	—		$	—
Exercised	(804,041	)	$	2.51
Unvested options forfeited	(79,810	)	$	6.44
Vested options expired	(29,191	)	$	6.44
Outstanding at June 30, 2016	13,106,587		$	3.67	6.0	$	56,844,050
Vested at June 30, 2016	11,710,880		$	3.27	5.8	$	55,362,178
Vested or expected to vest at June 30, 2016 (a)	13,047,941		$	3.66	6.0	$	56,809,041


(a)	Includes forfeiture adjusted unvested shares.

The intrinsic value of the options exercised during the six months ended June 30, 2016, was approximately $4,937,922.

Following is a summary of stock options outstanding and exercisable at June 30, 2016:



	Options Outstanding				Options Exercisable
Range of Exercise Prices	Number outstanding	Weighted-Average Remaining Contractual Term (in years)	Weighted- Average Exercise Price		Number Exercisable	Weighted- Average Exercise Price
$0.50 - $0.76	441,429	2.9	$	0.72	441,429	$	0.72
$0.87 - $1.35	4,420,470	5.2	1.19		4,420,470	1.19
$1.40 - $2.45	1,458,424	4.4	1.92		1,458,424	1.92
$2.66 - $3.99	889,430	6.3	3.06		889,430	3.06
$4.19 - $6.38	3,310,253	6.9	5.36		2,898,133	5.28
$6.45 - $9.78	2,479,415	7.6	7.29		1,586,502	7.23
$9.90- $10.99	107,166	8.4	10.43		36,492	10.44
	13,106,587	6.0	$	3.67	11,730,880	$	3.27

Total unrecognized compensation expense related to granted stock options at June 30, 2016, was approximately $3,283,152 and will be charged to expense ratably through May 2018.

The fair value of options granted by the Company is estimated on the date of grant using the Black-Scholes-Merton option-pricing model that uses assumptions for expected volatility, expected dividends, expected term, and the risk-free interest rate. Expected volatilities are based on historical volatility of peer companies and other factors estimated over the expected term of the options. The term of employee options granted is derived using the “simplified method,” which computes expected term as the mid point between the weighted average time to vesting and the contractual maturity. The simplified method was used due to the Company's lack of sufficient historical data to provide a reasonable basis upon which to estimate the expected term due to the limited period of time its equity shares have been publicly traded. The term for non-employee options is generally based upon the contractual term of the option. The risk-free rate is based on the U.S. Treasury yield curve in effect at the time of grant for the period of the expected term or contractual term as described.

The assumptions used in calculating the fair value of options using the Black-Scholes-Merton option-pricing model are set forth in the following table:



	Six Months Ended June 30,
	2016	2015
Expected volatility	n/a	54.4 - 58.1 %
Expected life (in years)	n/a	6.0
Expected dividend yield	n/a	—
Risk-free interest rate	n/a	1.51% - 1.68%

There were no options granted during the six months ended June 30, 2016.

Restricted Stock Awards

Activity with respect to restricted stock awards is summarized as follows:



	Number of Shares		Weighted-Average Grant Date Fair Value
Unvested at January 1, 2016	2,613,267		$9.14
Granted	2,014,838		8.04
Vested	(825,595	)	8.63
Forfeited	(102,230	)	8.85
Unvested at June 30, 2016	3,700,280		$8.66

As of June 30, 2016, there was approximately $24,939,716 of total unrecognized stock-based compensation related to time-based, nonvested restricted stock. That expense is expected to be recognized on a straight-line basis over a weighted-average period of 2.1 years, which approximates the remaining vesting period of these grants. All shares noted above as unvested are considered issued and outstanding at June 30, 2016.

For the three and six months ended June 30, 2016 and 2015, the Company recognized stock-based compensation as follows (in thousands):



	Three Months Ended June 30,				Six Months Ended June 30,
	2016		2015		2016		2015
Cost of sales	$	95	$	90	$	190	$	184
Research and development	155		203		360		389
Selling, general and administrative	4,253		3,962		8,574		7,613
	$	4,503	$	4,255	$	9,124	$	8,186

Treasury Stock

On May 12, 2014, our Board of Directors authorized the repurchase of up to $10 million of our common stock from time to time, through December 31, 2014. The Board subsequently extended the program until December 31, 2016. In December 2014, the Board increased the authorization to $20 million and further increased the authorization in 2015 to $60 million. The timing and amount of repurchases will depend upon the Company's stock price, economic and market conditions, regulatory requirements, and other corporate considerations. The Company may initiate, suspend or discontinue purchases under the stock repurchase program at any time.

For the six months ended June 30, 2016, the Company purchased 415,252 shares of its common stock for a purchase price of approximately $3,518,000 before brokerage commissions of approximately $12,000. As of June 30, 2016, the Company had approximately $10,756,000 of availability remaining under the repurchase program.

Additionally, for the six months ended June 30, 2016, the Company reissued 2,599,377 shares from the Treasury for restricted stock grants and stock option exercises, net of forfeitures, and as partial consideration to the shareholders of Stability, with an aggregate carrying value of approximately $21,334,000.

- Definition

The entire disclosure for compensation-related costs for equity-based compensation, which may include disclosure of policies, compensation plan details, allocation of equity compensation, incentive distributions, equity-based arrangements to obtain goods and services, deferred compensation arrangements, employee stock ownership plan details and employee stock purchase plan details.

+ References + Details

Income taxes	6 Months Ended
Income taxes	Jun. 30, 2016
Income Tax Disclosure [Abstract]
Income taxes	Income taxes The effective tax rates for continuing operations of 34.7% and 3.7% for the six months ended June 30, 2016 and June 30, 2015, respectively, were determined using an estimated annual effective tax rate and include, in 2016, the impact of a discrete item of approximately $350,000. The effective tax rate for the 2016 period increased approximately 31% when compared to the same period of 2015, primarily due to the $15.4 million valuation allowance release recorded in 2015 and discussed in our Annual Report on Form 10-K for the year ended December 31, 2015. Due to the valuation allowance previously recorded against the Company's U.S. deferred tax assets, the effective tax rate for the six months ended June 30, 2015, did not include the expense of the current period U.S. taxable income. As of the end of June 2016, the projected annual effective tax rate for 2016 is 42.2%.

Supplemental disclosure of cash flow and non-cash investing and financing activities

6 Months Ended

Jun. 30, 2016

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 noncash activities are as follows (in thousands):



	Six Months Ended June 30,
	2016		2015
Cash paid for interest	$	76	$	29
Income taxes paid	631		874
Stock issuance of 441,009 shares in connection with acquisition	3,346		—
Retirement of fixed assets	—		308
Stock issuance of 20,406 and 11,321 shares in exchange for services performed, respectively	173		108

Contractual Commitments and Contingencies

6 Months Ended

Jun. 30, 2016

Commitments and Contingencies Disclosure [Abstract]

Contractual Commitments and Contingencies

Contractual Commitments

In addition to the capital leases noted above in Note 7, the Company has entered into operating lease agreements for facility space and equipment. These leases expire over the next eight years and generally contain renewal options. The Company anticipates that most of these leases will be renewed or replaced upon expiration. The Company also has commitments for meeting space and to various charitable organizations. The estimated annual lease payments, meeting space and charitable organization commitments are as follows (in thousands):



12-month period ended June 30
2017	$	3,310
2018	3,128
2019	2,052
2020	1,366
Thereafter	644
	$	10,500

Rent expense for the six months ended June 30, 2016 and 2015, was approximately $859,000 and $593,000, respectively, and was approximately $436,000 and $310,000 for the three months ended June 30, 2016 and 2015, respectively, and is allocated among cost of sales, research and development, and selling, general and administrative expenses.

Letters of Credit

As a condition of the lease for the Company's main facility, the Company is obligated under standby letters of credit in the amount of approximately $118,000. These obligations are reduced at various times over the life of the lease.

FDA Untitled Letter and Draft Guidance

On August 28, 2013, the FDA issued an Untitled Letter alleging that the Company's micronized allografts do not meet the criteria for regulation solely under Section 361 of the Public Health Service Act and that, as a result, MiMedx would need a biologics license to lawfully market those micronized products. Since the issuance of the Untitled Letter, the Company has been in discussions with the FDA to communicate its disagreement with the FDA's assertion that the Company's allografts are more than minimally manipulated. To date, the FDA has not changed its position that the Company's micronized products are not eligible for marketing solely under Section 361 of the Public Health Service Act, but discussions are continuing. The Company continues to market its micronized products but is also pursuing the Biologics License Application (“BLA”) process for certain of its micronized products.

On December 22, 2014, the FDA issued for comment “Draft Guidance for Industry and FDA Staff: Minimal Manipulation of Human Cells, Tissues, and Cellular and Tissue-Based Products.” Essentially the Minimal Manipulation draft guidance takes the same position with respect to micronized amniotic tissue that it took in the Untitled Letter to MiMedx 16 months earlier. The Company submitted comments asserting that the Minimal Manipulation draft guidance represents agency action that goes far beyond the FDA’s statutory authority, is inconsistent with existing HCT/P regulations and the FDA’s prior positions, and is internally inconsistent and scientifically unsound. On October 28, 2015, the FDA issued for comment, "Draft Guidance for Industry and FDA Staff: Homologous Use of Human Cells, Tissues, and Cellular and Tissue-Based Products." The Company submitted comments on this Homologous Use draft guidance. The FDA has indicated that it will hold a public hearing on September 12 and 13, 2016 to obtain input on the Homologous Use draft guidance and the previously released Minimal Manipulation draft guidance, as well as other recently issued guidance documents on HCT/Ps. The hearing was originally scheduled for April 13, 2016, but was rescheduled to September 2016 in order to allow stakeholders additional time to provide comments due to the considerable interest in the hearing. The Company has requested, and has been granted, an opportunity to speak at the rescheduled hearing. The FDA has also scheduled a related scientific workshop to be held prior to the hearing to identify and discuss the scientific considerations and challenges to help inform the development of HCT/Ps.

If the FDA does allow the Company to continue to market a micronized form of its sheet allografts without a biologics license either prior to or after finalization of the draft guidance documents, it may impose conditions, such as labeling restrictions and compliance with cGMP. Although the Company is preparing for these requirements in connection with its pursuit of a BLA for certain of its micronized products, earlier compliance with these conditions would require significant additional time and cost investments by the Company. It is also possible that the FDA will not allow the Company to market any form of a micronized product without a biologics license even prior to finalization of the draft guidance documents and could even require the Company to recall its micronized products. Revenues from micronized products comprised approximately 12% of the Company's revenues for the fiscal year ended December 31, 2015.

Patent Litigation

MiMedx continues to diligently enforce its intellectual property against several entities. Currently, there are four actions pending, as described below:

The Liventa Action

On April 22, 2014, the Company filed a patent infringement lawsuit in the United States District Court for the Norther District of Georgia against Liventa Bioscience, Inc. ("Liventa"), Medline Industries, Inc. ("Medline") and Musculoskeletal Transplant Foundation, Inc. ("MTF") for permanent injunctive relief and unspecified damages (the "Liventa Action"). In addition to the allegations of infringement of MiMedx's patents, the lawsuit asserts that Liventa and Medline knowingly and willfully made false and misleading representations about their respective products to providers, patients, and in some cases, prospective investors. Though the terms of the agreement are confidential, the parties have reached an amicable settlement of the False Advertising Claims for an undisclosed sum. The patent infringement claims are still pending as described below.

MiMedx asserts that Liventa (formerly known as AFCell Medical, Inc.), Medline and MTF infringed and continue to infringe certain of the Company's patents relating to the MiMedx dehydrated human amnion/chorion membrane ("dHACM") allografts. MTF is the tissue processor while Liventa and Medline are the distributors of the allegedly infringing products. On May 30, 2014, defendants filed answers to the Complaint, denying the allegations in the Complaint. They also raised affirmative defenses of non-infringement, invalidity, laches and estoppel. MTF and Medline also filed counterclaims seeking declaratory judgments of non-infringement and invalidity. On June 30, 2014, fact discovery began and the parties have engaged in extensive fact discovery. Defendants filed parallel Inter Partes Review ("IPR") proceedings which are discussed below.

In September 2015, the Defendants filed a renewed Motion to Stay in light of the Patent Trial and Appeal Board's ("PTAB") decisions to institute IPRs on the ’437 and ’687 Patents, seeking a partial stay of the litigation as to the ’437, ’687, and ’494 Patents (i.e., the ’437 Patent family). MiMedx opposed the Motion to Stay with respect to the ’494 Patent and once again successfully defeated Defendants’ motion to stay.

On December 22, 2015, a Markman Hearing was held before a Special Master. Over thirty disputed claim terms were at issue. One week later, on December 30, 2015, the Special Master issued its Report and Recommendation. Except for one term, the Special Master’s Report essentially adopted MiMedx’s proposed constructions. On March 9, 2016, the Court adopted the Special Master’s Report. Since then the Court has entered a scheduling order in this action. Fact discovery has closed and the parties are currently engaging in expert discovery, which is expected to close in early September 2016. We expect the case to go to trial in late 2016.

The Bone Bank Action

On May 16, 2014, the Company also filed a patent infringement lawsuit against Transplant Technology, Inc. d/b/a Bone Bank Allografts ("Bone Bank") and Texas Human Biologics, Ltd. ("Biologics") for permanent injunctive relief and unspecified damages (the "Bone Bank Action"). The Bone Bank Action was filed in the United States District Court for the Western District of Texas. This lawsuit similarly asserts that Bone Bank and Biologics infringed certain of the Company's patents through the manufacturing and sale of their placental-derived tissue graft products. On July 10, 2014, Defendants filed an answer to the Complaint, denying the allegations in the Complaint. They also raised affirmative defenses of non-infringement and invalidity and filed counterclaims seeking declaratory judgments of non-infringement and invalidity. Defendants also filed parallel IPR proceedings which are further discussed below. The Markman hearing in this case was held on October 2, 2015. Except for one term, the Court adopted MiMedx’s proposed construction of the disputed terms. Fact discovery has closed and the parties are currently engaging in expert discovery, which is expected to close in August 2016. We expect the case to go to trial in the fall of 2016.

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") for permanent injunctive relief and unspecified damages. This lawsuit was filed in the United States District Court for the Northern District of Alabama. The lawsuit alleges that NuTech and DCI have infringed and continue to infringe the Company's patents through the manufacture, use, sale, and/or offering of their tissue graft product. The lawsuit also asserts that NuTech knowingly and willfully made false and misleading representations about its products to customers and/or prospective customers.

On April 17, 2015, NuTech filed a motion to dismiss the case purportedly for lack of patentable subject matter, which the Company opposed. NuTech also filed a motion to stay the case pending disposition of the motion to dismiss, which MiMedx also opposed, and on which the Court declined to rule. Hearing on the motion to dismiss occurred on August 20, 2015. On November 24, 2015, the court ruled on NuTech’s Motion to Dismiss, granting in part, and denying in part. MiMedx still has claims against NuTech for infringement, as well as violations of the Lanham Act which are still pending.

On January 8, 2016, the parties submitted their Initial Disclosures, and MiMedx submitted its preliminary infringement contentions. On March 14, 2016, Defendants submitted their preliminary invalidity contentions. On April 15, 2016, the parties exchanged proposed terms for construction and over the next several months the parties will engage in claim construction briefing and related proceedings. Discovery is ongoing.

The Vivex Action

On April 1, 2016, the Company also filed a patent infringement lawsuit against Vivex BioMedical (“Vivex”) for permanent injunctive relief and unspecified damages (the "Vivex Action"). The lawsuit was filed in the United States District Court for the Northern District of Georgia. The patent at issue is the 8,709,494 patent (the "494" patent). Vivex answered MiMedx’s Complaint and filed Counterclaims of noninfringement and invalidity.

Pending IPRs

In addition to defending the claims in the pending district court litigations, defendants in the Liventa and Bone Bank cases have challenged certain of the Company's patents in several IPR proceedings to avoid the high burden of proof of proving invalidity by "clear and convincing evidence" in the district court litigations. An inter partes review (or "IPR") is a request for a specialized group within the United States Patent and Trademark Office to review the validity of a plaintiff's patent claims. The defendants in the Bone Bank Action challenged the validity of the Company's 8,597,687 (the "687" patent) and the 494 patent; while the defendants in the Liventa Action challenged the validity of the Company's 8,372,437 and 8,323,701 patents (the "'437" and "'701" patents, respectively).

On June 29, 2015, the Patent Trial and Appeals Board ("PTAB") denied the Bone Bank defendants' request for institution of an IPR with respect to the '494 patent (EpiFix) on all seven challenged grounds. On August 18, 2015, the PTAB also denied defendants' request for institution of an IPR with respect to the '701 patent (AmnioFix) on all six challenged grounds. That is, the PTAB decided in each case that the defendants failed to establish a reasonable likelihood that defendants would prevail in showing any of the challenged claims of the '494 or the '701 patent were unpatentable.

On July 10, 2015 the PTAB issued an opinion allowing a review of the '687 patent to proceed, although on only two of the five challenged grounds. The parties decided to forego oral arguments. On July 7, 2016, the PTAB issued an opinion finding that the challenged claims, which relate to embossment not configuration, were invalid for obviousness. On August 18, 2015, the PTAB issued an opinion allowing a review of the '437 patent to proceed, although only on one of the seven challenged grounds. A decision is expected no later than August of 2016.

Subsequent Events	6 Months Ended
Subsequent Events	Jun. 30, 2016
Subsequent Events [Abstract]
Subsequent Events	Subsequent Events None

Schedule II - Valuation and Qualifying Accounts

6 Months Ended

Jun. 30, 2016

Valuation and Qualifying Accounts [Abstract]

Schedule II - Valuation and Qualifying Accounts

Schedule II Valuation and Qualifying Accounts



MIMEDX GROUP, INC. AND SUBSIDIARIES SCHEDULE II VALUATION AND QUALIFYING ACCOUNTS
Three and Six Months Ended June 30, 2016 and 2015 (in thousands)

	Balance at Beginning of Period		Additions charged to Expense or Revenue		Deductions and write-offs			Balance at End of Period

For the three months ended June 30, 2016
Allowance for doubtful accounts	$	3,872	$	233	$	(19	)	$	4,086
Allowance for product returns	1,708		2,106		(1,623		)	2,191
Allowance for obsolescence	604		1,335		(159		)	1,780

For the three months ended June 30, 2015
Allowance for doubtful accounts	$	2,010	$	500	$	(6	)	$	2,504
Allowance for product returns	944		734		(648		)	1,030
Allowance for obsolescence	552		90		(89		)	553

For the six months ended June 30, 2016
Allowance for doubtful accounts	$	3,270	$	835	$	(19	)	$	4,086
Allowance for product returns	1,262		3,467		(2,538		)	2,191
Allowance for obsolescence	397		1,570		(187		)	1,780

For the six months ended June 30, 2015
Allowance for doubtful accounts	$	1,750	$	760	$	(6	)	$	2,504
Allowance for product returns	841		1,443		(1,254		)	1,030
Allowance for obsolescence	527		221		(195		)	553

Significant Accounting Policies (Policies)	6 Months Ended
Significant Accounting Policies (Policies)	Jun. 30, 2016
Accounting Policies [Abstract]
Basis of Presentation	Basis of Presentation The accompanying 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. Changes to GAAP are established by the Financial Accounting Standards Board (“FASB”) in the form of Accounting Standards Updates (“ASU’’) to the FASB’s Accounting Standards Codification (“ASC”). 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. Operating results for the six months ended June 30, 2016 and 2015, are not necessarily indicative of the results that may be expected for the fiscal year. The balance sheet at December 31, 2015, has been 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. You should read these condensed consolidated financial statements together with the historical consolidated financial statements of the Company for the year ended December 31, 2015, included in the Company's Annual Report on Form 10-K for the year ended December 31, 2015, filed with the SEC on February 29, 2016.
Segment Reporting	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, Surgical, Sports Medicine, Ophthalmic and Dental market categories. The Company's biomaterial platform technologies include tissue technologies, AmnioFix® and EpiFix®, amniotic fluid derived allograft, OrthoFlo, and anticipated device technology, CollaFix™, which the Company has yet to commercialize. Through the recent acquisition of Stability Inc., our newest proprietary platforms include Physio®, a unique bone grafting material comprised of 100% bone tissue with no added carrier, thus maximizing bone forming potential, a demineralized bone matrix (DBM) to complement our product portfolio offerings within the Orthopedic market and AlloBurn™, a skin product for burns.
Use of Estimates	Use of Estimates The preparation of financial statements in 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 financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates.
Accounts 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 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 balance and general economic conditions that may affect the customers' ability to pay.
Inventories	Inventories Inventory is valued at the lower of cost or market value. The Company assesses the valuation of its inventory on a periodic basis and makes adjustments to the value for estimated excess and obsolete inventory based on estimates about future demand. The excess balance determined by this analysis becomes the basis for the Company's excess inventory charge. The Company's excess inventory review process includes analysis of sales forecasts, managing product rollovers and working with operations to maximize recovery of excess inventory. The value of inventory as of June 30, 2016 includes a fair value step - up connected with the January 2016 acquisition of Stability Inc. of approximately $800,000, which is comprised of approximately $2.0 million as of the date of the acquisition less amortization of approximately $1.2 million during the six months ended June 30, 2016. Please see Note 4 contained herein.
Revenue Recognition	Revenue Recognition The Company sells its products through a combination of a direct sales force and independent stocking distributors and representatives in the U.S. and independent distributors in international markets. The Company recognizes revenue when title to the goods transfers to customers, provided there are no material remaining performance obligations required of the Company or any matters of customer acceptance. In cases where the Company utilizes distributors or ships product directly to the end user, it recognizes revenue upon shipment provided all other revenue recognition criteria have been met. A portion of the Company's revenue is generated from inventory maintained at hospitals, clinics and doctor's offices. For these products, revenue is recognized at the time the product has been used or implanted. The Company records estimated sales returns, discounts and allowances as a reduction of net sales in the same period revenue is recognized.
Acquisitions	Acquisitions Results of operations of acquired companies are included in the Company’s results of operations as of the respective acquisition dates. The purchase price of each acquisition is allocated to the net assets acquired based on estimates of their fair values at the date of the acquisition. Any purchase price in excess of these net assets is recorded as goodwill. The allocation of purchase price in certain cases may be subject to revision based on the final determination of fair values during the measurement period, which may be up to one year from the acquisition date. Contingent consideration is recognized at the estimated fair value on the acquisition date. Subsequent changes to the fair value of contingent payments are recognized in earnings. Contingent payments related to acquisitions consist of an earn out based on sales less direct production costs, and are valued using discounted cash flow techniques. The fair value of these payments is based upon probability-weighted future revenue estimates and increases or decreases as revenue estimates or expectation of timing of payments changes.
Patent Costs	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.
Treasury Stock	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 first - in first - out (FIFO) basis.
Recent Accounting Pronouncements	Recent Accounting Pronouncements The Company considers the applicability and impact of all Accounting Standards Updates ("ASUs") issued both effective and not yet effective. In May 2014, the FASB issued ASU 2014-09, “Revenue Recognition - Revenue from Contracts with Customers” (ASU 2014-09) that requires companies to recognize revenue when a customer obtains control rather than when companies have transferred substantially all risks and rewards of a good or service. This update is effective for annual reporting periods beginning on or after December 15, 2017 and interim periods therein and requires expanded disclosures. The Company is currently assessing the impact the adoption of ASU 2014-09 will have on our condensed consolidated financial statements. In November 2015, the FASB issued ASU No. 2015-17, 'Balance Sheet Classification of Deferred Taxes'. ASU 2015-17 simplifies the presentation of deferred taxes by requiring deferred tax assets and liabilities be classified as noncurrent on the balance sheet. ASU 2015-17 is effective for public companies for annual reporting periods beginning after December 15, 2016, and interim periods within those fiscal years. The guidance may be adopted prospectively or retrospectively and early adoption is permitted. The Company adopted this standard, prospectively, at the beginning of the fourth quarter 2015 to simplify reporting with the release of the valuation allowance as disclosed in Note 12. Prior periods were not retrospectively adjusted. In February 2016, the FASB issued ASU No. 2016-02, 'Leases (Topic 842)'. The core principle of Topic 842 is that a lessee should recognize the assets and liabilities that arise from both capital and operating leases. ASU 2016-02 is effective for public companies for annual reporting periods beginning after December 15, 2018, and interim periods within those fiscal years. The guidance may be adopted prospectively or retrospectively and early adoption is permitted. The Company is currently assessing the impact the adoption of ASU 2016-02 will have on its consolidated financial statements. In March 2016, the FASB issued ASU No. 2016-09, "Compensation - Stock Compensation (Topic 718)". The standard is intended to simplify several areas of accounting for share - based compensation arrangements, including the income tax impact, classification on the statement of cash flows and forfeitures. This ASU is effective for fiscal years beginning after December 15, 2016. The Company is currently assessing the impact the adoption of ASU 2016-09 will have on its consolidated financial statements. All other ASUs issued and not yet effective for the six months ended June 30, 2016, 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.

Acquisition of Stability Inc. (Tables)

6 Months Ended

Jun. 30, 2016

Business Combinations [Abstract]

Schedule of Acquisition of Stability Inc.

The actual purchase price has been preliminarily allocated as of June 30, 2016 (in

thousands) and is subject to change:



Cash paid at closing	$	6,000
Working capital adjustment	(480		)
Common stock issued (441,009 shares valued at $9.07 per share)	3,346
Assumed debt	1,771
Fair value of earn-out	25,620
Total fair value of purchase price	$	36,257

Net assets acquired:
Debt-free working capital	$	2,179
Other assets, net	199
Property, plant and equipment	1,375
Deferred tax liability	(8,268		)
Subtotal	(4,515		)
Intangible assets:
Customer relationships	6,090
Patents and know-how	9,170
Trade names and trademarks	830
Non compete agreements	1,080
Licenses and permits	690
Subtotal	17,860
Goodwill	22,912
Total Assets Purchased	$	36,257

Working capital and other assets were composed of the following (in thousands):
Working capital
Cash	$	140
Prepaid Expenses and other current assets	100
Accounts receivable	2,001
Federal and state taxes receivable	28
Inventory	8,725
Accounts payable and accrued expenses	(8,815		)
Debt-free working capital	$	2,179

Current portion of long term debt	$	(194	)
Long-term debt	(560		)
Line of Credit	(932		)
Shareholder loan	(85		)
Net working capital	$	408

Other assets:
Other long term assets	$	199

Finite-Lived and Indefinite-Lived Intangible Assets Acquired

The intangible assets were assigned the following lives for amortization purposes:



		Estimated useful life (in years)
Intangible asset:
Customer relationships		12
Patents and know-how		20
Trade name and Trademarks		Indefinite
Non compete agreements		4
Licenses and permits		2

Business Acquisition, Pro Forma Information

Unaudited pro forma information for the three and six months ended June 30, 2016 and 2015 (in thousands) is as follows:



	Three months ended June 30,				Six months ended June 30,
	2016		2015		2016		2015
Revenue	$	57,342	$	50,492	$	111,258	$	96,413

Net income	$	2,057	$	4,919	$	3,668	$	7,975

Income per share, fully diluted	$	0.02	$	0.04	$	0.03	$	0.07

Inventories (Tables)

6 Months Ended

Jun. 30, 2016

Inventory Disclosure [Abstract]

Inventory

Inventories consisted of the following items as of June 30, 2016, and December 31, 2015 (in thousands):



	June 30, 2016			December 31, 2015
Raw materials	$	1,154		$	602
Work in process	5,888			3,850
Finished goods	11,945			3,405
Inventory, gross	18,987			7,857
Reserve for obsolescence	(1,780		)	(397		)
Inventory, net	$	17,207		$	7,460

Property and Equipment (Tables)

6 Months Ended

Jun. 30, 2016

Property, Plant and Equipment [Abstract]

Property and Equipment

Property and equipment consist of the following as of June 30, 2016, and December 31, 2015 (in thousands):



	June 30, 2016			December 31, 2015
Leasehold improvements	$	3,245		$	2,684
Lab and clean room equipment	8,196			4,564
Furniture and office equipment	6,167			4,577
Construction in progress	2,169			2,629
Property and equipment, gross	19,777			14,454
Less accumulated depreciation	(6,728		)	(4,979		)
Property and equipment, net	$	13,049		$	9,475

Intangible Assets and Royalty Agreement (Tables)

6 Months Ended

Jun. 30, 2016

Goodwill and Intangible Assets Disclosure [Abstract]

Intangible assets activity summary

Intangible assets are summarized as follows (in thousands):



	Weighted Average Amortization Lives	June 30, 2016			December 31, 2015
		Cost			Cost
Licenses (a) (b) (d)	7 years	$	1,699		$	1,009
Patents & Know How (b) (d)	19 years	17,176			8,001
Customer & Supplier Relationships (b) (d)	13 years	9,851			3,761
Tradenames & Trademarks (b) (d)	indefinite	1,838			1,008
Non-compete agreements (d)	4 years	1,080			—
In Process Research & Development (b)	n/a	25			25
Patents in Process (c)	n/a	2,146			1,823
Total		33,815			15,627
Less Accumulated amortization and impairment charges		(6,122		)	(4,864		)
Net		$	27,693		$	10,763

(a)

(b)


(c)	Patents in Process consist of capitalized external legal and other registration costs in connection with internally developed tissue-based patents that are pending. Once issued, the costs associated with a given patent will be included in Patents & Know-How under intangible assets subject to amortization.


(d)	On January 13, 2016, the Company acquired Stability Inc. As a result, the Company recorded intangible assets for Patents & Know - How of $9,170,000, Customer Relationships of $6,090,000, Non - compete agreements of$1,080,000, Tradenames & Trademarks of $830,000 and Licenses of $690,000.

Estimated future amortization expense for intangible assets

Expected future amortization of intangible assets as of June 30, 2016, is as follows (in thousands):



Year ending December 31,	Estimated Amortization Expense
2016 (a)	$	1,259
2017	2,427
2018	2,072
2019	2,072
2020	1,802
Thereafter	16,223
	$	25,855

(a) Estimated amortization expense for the year ending December 31, 2016, includes only amortization to be recorded after June 30, 2016.

Net Income (Loss) Per Share (Tables)

6 Months Ended

Jun. 30, 2016

Earnings Per Share [Abstract]

Computation of Basic and Diluted Net Loss per Share

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



	Three Months Ended June 30,				Six Months Ended June 30,
	2016		2015		2016		2015
Net income	$	1,975	$	5,430	$	3,172	$	9,517
Denominator for basic earnings per share - weighted average shares	106,191,932		106,211,120		105,873,727		106,013,752
Effect of dilutive securities: Stock options, restricted stock, and warrants outstanding(a)	5,956,483		7,975,209		6,221,324		7,878,335
Denominator for diluted earnings per share - weighted average shares adjusted for dilutive securities	112,148,415		114,186,329		112,095,051		113,892,087
Income per common share - basic	$	0.02	$	0.05	$	0.03	$	0.09
Income per common share - diluted	$	0.02	$	0.05	$	0.03	$	0.08

(a) Securities outstanding that are included in the computation above, utilizing the treasury stock method are as follows:



	Three Months Ended June 30,		Six Months Ended June 30,
	2016	2015	2016	2015
Outstanding Stock Options	5,644,128	7,411,271	5,805,870	7,393,698
Outstanding Warrants	—	37,909	—	37,708
Restricted Stock Awards	312,355	526,029	415,454	446,929
	5,956,483	7,975,209	6,221,324	7,878,335

Equity (Tables)

6 Months Ended

Jun. 30, 2016

Equity [Abstract]

Stock Options Activity

Activity with respect to the stock options is summarized as follows:



	Number of Shares		Weighted- Average Exercise Price		Weighted-Average Remaining Contractual Term (in years)	Aggregate Intrinsic Value
Outstanding at January 1, 2016	14,019,629		$	3.62
Granted	—		$	—
Exercised	(804,041	)	$	2.51
Unvested options forfeited	(79,810	)	$	6.44
Vested options expired	(29,191	)	$	6.44
Outstanding at June 30, 2016	13,106,587		$	3.67	6.0	$	56,844,050
Vested at June 30, 2016	11,710,880		$	3.27	5.8	$	55,362,178
Vested or expected to vest at June 30, 2016 (a)	13,047,941		$	3.66	6.0	$	56,809,041


(a)	Includes forfeiture adjusted unvested shares.

Stock Options Outstanding and Exercisable

Following is a summary of stock options outstanding and exercisable at June 30, 2016:



	Options Outstanding				Options Exercisable
Range of Exercise Prices	Number outstanding	Weighted-Average Remaining Contractual Term (in years)	Weighted- Average Exercise Price		Number Exercisable	Weighted- Average Exercise Price
$0.50 - $0.76	441,429	2.9	$	0.72	441,429	$	0.72
$0.87 - $1.35	4,420,470	5.2	1.19		4,420,470	1.19
$1.40 - $2.45	1,458,424	4.4	1.92		1,458,424	1.92
$2.66 - $3.99	889,430	6.3	3.06		889,430	3.06
$4.19 - $6.38	3,310,253	6.9	5.36		2,898,133	5.28
$6.45 - $9.78	2,479,415	7.6	7.29		1,586,502	7.23
$9.90- $10.99	107,166	8.4	10.43		36,492	10.44
	13,106,587	6.0	$	3.67	11,730,880	$	3.27

Fair Value of Options, Valuation Assumptions

The assumptions used in calculating the fair value of options using the Black-Scholes-Merton option-pricing model are set forth in the following table:



	Six Months Ended June 30,
	2016	2015
Expected volatility	n/a	54.4 - 58.1 %
Expected life (in years)	n/a	6.0
Expected dividend yield	n/a	—
Risk-free interest rate	n/a	1.51% - 1.68%

Restricted Stock Awards Roll Forward

Activity with respect to restricted stock awards is summarized as follows:



	Number of Shares		Weighted-Average Grant Date Fair Value
Unvested at January 1, 2016	2,613,267		$9.14
Granted	2,014,838		8.04
Vested	(825,595	)	8.63
Forfeited	(102,230	)	8.85
Unvested at June 30, 2016	3,700,280		$8.66

Allocation of Share-based Compensation

For the three and six months ended June 30, 2016 and 2015, the Company recognized stock-based compensation as follows (in thousands):



	Three Months Ended June 30,				Six Months Ended June 30,
	2016		2015		2016		2015
Cost of sales	$	95	$	90	$	190	$	184
Research and development	155		203		360		389
Selling, general and administrative	4,253		3,962		8,574		7,613
	$	4,503	$	4,255	$	9,124	$	8,186

Supplemental disclosure of cash flow and non-cash investing and financing activities (Tables)

6 Months Ended

Jun. 30, 2016

Supplemental Cash Flow Elements [Abstract]

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

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



	Six Months Ended June 30,
	2016		2015
Cash paid for interest	$	76	$	29
Income taxes paid	631		874
Stock issuance of 441,009 shares in connection with acquisition	3,346		—
Retirement of fixed assets	—		308
Stock issuance of 20,406 and 11,321 shares in exchange for services performed, respectively	173		108

Contractual Commitments and Contingencies (Tables)

6 Months Ended

Jun. 30, 2016

Commitments and Contingencies Disclosure [Abstract]

Estimated Annual Lease, Royalty and Employment Agreement Expenses

The estimated annual lease payments, meeting space and charitable organization commitments are as follows (in thousands):



12-month period ended June 30
2017	$	3,310
2018	3,128
2019	2,052
2020	1,366
Thereafter	644
	$	10,500

Basis of Presentation (Details)	6 Months Ended
Basis of Presentation (Details)	Jun. 30, 2016 segment
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Number of business segments	1

Significant Accounting Policies (Details) - USD ($) $ in Thousands		6 Months Ended
	Jan. 13, 2016	Jun. 30, 2016	Jun. 30, 2015
Finite-Lived Intangible Assets [Line Items]
Increase (decrease) in inventories		$ 2,245	$ (1,274)
Amortization of inventory fair value step-up		1,224	0
Patents
Finite-Lived Intangible Assets [Line Items]
Intangible assets, net of accumulated amortization		327	$ 402
Fair Value Adjustment to Inventory
Finite-Lived Intangible Assets [Line Items]
Increase (decrease) in inventories	$ 2,000	$ 800

Liquidity and Management's Plans (Details) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015	Jun. 30, 2015	Dec. 31, 2014
Liquidity and management's plans [Abstract]
Cash and cash equivalents	$ 23,803	$ 28,486	$ 38,601	$ 46,582
Total current assets	101,841	96,310
Total current liabilities	$ 38,538	$ 26,777

Acquisition of Stability Inc. - Narrative (Details) - USD ($) $ in Thousands		3 Months Ended		6 Months Ended
	Jan. 13, 2016	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Business Acquisition [Line Items]
Amortization of intangible assets		$ 447	$ 233	$ 1,257	$ 465
Net income		2,057	$ 4,919	3,668	7,975
Fair Value Adjustment to Inventory
Business Acquisition [Line Items]
Net income					1,224
Pro Forma
Business Acquisition [Line Items]
Amortization of intangible assets					$ 787
Stability Biologics, LLC
Business Acquisition [Line Items]
Cash paid at closing	$ 6,000
Common stock issued	$ 3,346
Common stock issued (in shares)	441,009
Assumed debt	$ 1,771
Acquisition related costs	851
Fair value of earn-out	25,620	$ 25,620		$ 25,620
Selling, general and administrative \| Stability Biologics, LLC
Business Acquisition [Line Items]
Acquisition related costs	$ 851

Acquisition of Stability Inc. - Preliminarily Allocation of Purchase Price (Details) - USD ($) $ / shares in Units, $ in Thousands	Jan. 13, 2016	Jun. 30, 2016	Dec. 31, 2015
Net assets acquired:
Goodwill		$ 26,951	$ 4,040
Stability Biologics, LLC
Business Combination, Consideration Transferred [Abstract]
Cash paid at closing	$ 6,000
Working capital adjustment	(480)
Common stock issued (441,009 shares valued at $9.07 per share)	$ 3,346
Common stock issued (in shares)	441,009
Common stock issued, price per share (in dollars per share)	$ 9.07
Assumed debt	$ 1,771
Fair value of earn-out	25,620	$ 25,620
Total fair value of purchase price	36,257
Net assets acquired:
Debt-free working capital	2,179
Other assets, net	199
Property, plant and equipment	1,375
Deferred tax liability	(8,268)
Subtotal	(4,515)
Subtotal	17,860
Goodwill	22,912
Total Assets Purchased	36,257
Cash	140
Prepaid Expenses and other current assets	100
Accounts receivable	2,001
Federal and state taxes receivable	28
Inventory	8,725
Accounts payable and accrued expenses	(8,815)
Debt-free working capital	2,179
Current portion of long term debt	(194)
Net working capital	408
Other long term assets	199
Long-term debt \| Stability Biologics, LLC
Net assets acquired:
Long-term debt	(560)
Line of credit \| Stability Biologics, LLC
Net assets acquired:
Long-term debt	(932)
Shareholder loan \| Stability Biologics, LLC
Net assets acquired:
Long-term debt	(85)
Trade names and trademarks \| Stability Biologics, LLC
Net assets acquired:
Indefinite-lived intangible assets	830
Customer relationships \| Stability Biologics, LLC
Net assets acquired:
Finite-Lived intangibles assets	6,090
Patents and know-how \| Stability Biologics, LLC
Net assets acquired:
Finite-Lived intangibles assets	9,170
Non compete agreements \| Stability Biologics, LLC
Net assets acquired:
Finite-Lived intangibles assets	1,080
Licenses and permits \| Stability Biologics, LLC
Net assets acquired:
Finite-Lived intangibles assets	$ 690

Acquisition of Stability Inc. - Intangible Assets Acquired as Part of Acquisition (Details) - Stability Biologics, LLC	Jan. 13, 2016
Customer relationships
Finite-Lived Intangible Assets [Line Items]
Estimated useful life (in years)	12 years
Patents and know-how
Finite-Lived Intangible Assets [Line Items]
Estimated useful life (in years)	20 years
Non compete agreements
Finite-Lived Intangible Assets [Line Items]
Estimated useful life (in years)	4 years
Licenses and permits
Finite-Lived Intangible Assets [Line Items]
Estimated useful life (in years)	2 years

Acquisition of Stability Inc. - Pro Forma Information (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Business Combinations [Abstract]
Revenue	$ 57,342	$ 50,492	$ 111,258	$ 96,413
Net income	$ 2,057	$ 4,919	$ 3,668	$ 7,975
Income per share, fully diluted (in dollars per share)	$ 0.02	$ 0.04	$ 0.03	$ 0.07

Short Term Investments (Details) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Investment [Line Items]
Short term investments	$ 0	$ 3,000
Certificates of Deposit
Investment [Line Items]
Short term investments		$ 3,000

Inventories (Details) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Inventory Disclosure [Abstract]
Raw materials	$ 1,154	$ 602
Work in process	5,888	3,850
Finished goods	11,945	3,405
Inventory, gross	18,987	7,857
Reserve for obsolescence	(1,780)	(397)
Inventory, net	$ 17,207	$ 7,460

Property and Equipment (Details) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 19,777	$ 14,454
Less accumulated depreciation	(6,728)	(4,979)
Property and equipment, net	13,049	9,475
Leasehold improvements
Property, Plant and Equipment [Line Items]
Property and equipment, gross	3,245	2,684
Lab and clean room equipment
Property, Plant and Equipment [Line Items]
Property and equipment, gross	8,196	4,564
Furniture and office equipment
Property, Plant and Equipment [Line Items]
Property and equipment, gross	6,167	4,577
Construction in progress
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 2,169	$ 2,629

Property and Equipment - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015	Dec. 31, 2015
Property, Plant and Equipment [Line Items]
Property and equipment, net of accumulated depreciation	$ 13,049		$ 13,049		$ 9,475
Other liabilities	$ 934		$ 934		$ 1,148
Capital leases interest rate effective percentage, minimum	3.00%		3.00%
Capital leases interest rate effective percentage, maximum	12.00%		12.00%
Depreciation	$ 821	$ 422	$ 1,555	$ 776
Assets Held under Capital Leases
Property, Plant and Equipment [Line Items]
Property and equipment, net of accumulated depreciation	427		427
Other liabilities	72		72
Leasehold Improvements Paid by Others
Property, Plant and Equipment [Line Items]
Property and equipment, net of accumulated depreciation	$ 1,000		$ 1,000

Intangible Assets and Royalty Agreement - Summary of Intangible Assets (Details) - USD ($)		6 Months Ended
	Jan. 29, 2007	Jun. 30, 2016	Jan. 13, 2016	Dec. 31, 2015	Jan. 05, 2011
Finite-Lived Intangible Assets [Line Items]
Total		$ 33,815,000		$ 15,627,000
Less Accumulated amortization and impairment charges		(6,122,000)		(4,864,000)
Net		27,693,000		10,763,000
Stability Biologics, LLC
Finite-Lived Intangible Assets [Line Items]
Fair value of earn-out		$ 25,620,000	$ 25,620,000
Licenses
Finite-Lived Intangible Assets [Line Items]
Weighted average amortization lives (in years)		7 years
Gross carrying value		$ 1,699,000		1,009,000
Licenses \| Stability Biologics, LLC
Finite-Lived Intangible Assets [Line Items]
Gross carrying value			690,000
Licenses \| Shriners Hospitals for Children and University of South Florida Research Foundation, Inc.
Finite-Lived Intangible Assets [Line Items]
Acquisition price	$ 996,000
Maximum time of approval (in days)	30 days
Fair value of earn-out	$ 200,000
Contingent royalty to be paid to licensor	3.00%
Annual royalty payment, minimum	$ 50,000
Licenses \| Surgical Biologics, LLC
Finite-Lived Intangible Assets [Line Items]
Gross carrying value					$ 13,000
Patents and know-how
Finite-Lived Intangible Assets [Line Items]
Weighted average amortization lives (in years)		19 years
Gross carrying value		$ 17,176,000		8,001,000
Patents and know-how \| Stability Biologics, LLC
Finite-Lived Intangible Assets [Line Items]
Gross carrying value			9,170,000
Patents and know-how \| Surgical Biologics, LLC
Finite-Lived Intangible Assets [Line Items]
Gross carrying value					7,690,000
Finite-Lived Intangible Assets, Costs		$ 4,000
Customer & supplier relationships
Finite-Lived Intangible Assets [Line Items]
Weighted average amortization lives (in years)		13 years
Gross carrying value		$ 9,851,000		3,761,000
Customer & supplier relationships \| Stability Biologics, LLC
Finite-Lived Intangible Assets [Line Items]
Gross carrying value			6,090,000
Customer & supplier relationships \| Surgical Biologics, LLC
Finite-Lived Intangible Assets [Line Items]
Gross carrying value					3,761,000
Non compete agreements
Finite-Lived Intangible Assets [Line Items]
Weighted average amortization lives (in years)		4 years
Gross carrying value		$ 1,080,000		0
Non compete agreements \| Stability Biologics, LLC
Finite-Lived Intangible Assets [Line Items]
Gross carrying value			1,080,000
Tradenames & trademarks
Finite-Lived Intangible Assets [Line Items]
Gross carrying value, indefinite lived		1,838,000		1,008,000
Tradenames & trademarks \| Stability Biologics, LLC
Finite-Lived Intangible Assets [Line Items]
Gross carrying value, indefinite lived			$ 830,000
Tradenames & trademarks \| Surgical Biologics, LLC
Finite-Lived Intangible Assets [Line Items]
Gross carrying value, indefinite lived					1,008,000
In process research & development
Finite-Lived Intangible Assets [Line Items]
Gross carrying value, indefinite lived		25,000		25,000
In process research & development \| Surgical Biologics, LLC
Finite-Lived Intangible Assets [Line Items]
Gross carrying value, indefinite lived					$ 25,000
Patents in process
Finite-Lived Intangible Assets [Line Items]
Gross carrying value, indefinite lived		$ 2,146,000		$ 1,823,000

Intangible Assets and Royalty Agreement - Estimated Future Amortization Expense for Intangible Assets (Details) $ in Thousands	Jun. 30, 2016 USD ($)
Estimated future amortization expense [Abstract]
2016	$ 1,259
2017	2,427
2018	2,072
2019	2,072
2020	1,802
Thereafter	16,223
Net book value	$ 25,855

Intangible Assets and Royalty Agreement - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Goodwill and Intangible Assets Disclosure [Abstract]
Amortization of intangible assets	$ 447	$ 233	$ 1,257	$ 465

Credit Facility (Details) - Credit Agreement - Revolving Credit Facility - USD ($)	Oct. 12, 2015	Jun. 30, 2016
Debt Instrument [Line Items]
Maximum borrowing capacity (up to)	$ 50,000,000
Uncommitted incremental facility (up to)	35,000,000
Debt issuance costs	$ 500,000
Debt term	3 years
Outstanding line of credit		$ 0
Minimum \| London Interbank Offered Rate (LIBOR)
Debt Instrument [Line Items]
Basis spread on variable rate	1.50%
Maximum \| London Interbank Offered Rate (LIBOR)
Debt Instrument [Line Items]
Basis spread on variable rate	2.25%

Net Income (Loss) Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Computation of basic and diluted net loss per share [Abstract]
Net income	$ 1,975	$ 5,430	$ 3,172	$ 9,517
Denominator for basic earnings per share - weighted average shares (in shares)	106,191,932	106,211,120	105,873,727	106,013,752
Effect of dilutive securities: Stock options, restricted stock, and warrants outstanding (in shares)	5,956,483	7,975,209	6,221,324	7,878,335
Denominator for diluted earnings per share - weighted average shares adjusted for dilutive securities (in shares)	112,148,415	114,186,329	112,095,051	113,892,087
Income (loss) per common share - basic (in dollars per share)	$ 0.02	$ 0.05	$ 0.03	$ 0.09
Income (loss) per common share - diluted (in dollars per share)	$ 0.02	$ 0.05	$ 0.03	$ 0.08
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share (in shares)	5,956,483	7,975,209	6,221,324	7,878,335
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)	5,644,128	7,411,271	5,805,870	7,393,698
Outstanding Warrants
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share (in shares)	0	37,909	0	37,708
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)	312,355	526,029	415,454	446,929

Equity - Stock Incentive Plans (Details)	6 Months Ended
Equity - Stock Incentive Plans (Details)	Jun. 30, 2016 USD ($) plan $ / shares shares	Jun. 30, 2015
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of share-based compensation plans \| plan	4
Number of shares [Roll forward]
Outstanding, beginning of period (in shares) \| shares	14,019,629
Granted (in shares) \| shares	0
Exercised (in shares) \| shares	(804,041)
Unvested options forfeited (in shares) \| shares	(79,810)
Vested options expired (in shares) \| shares	(29,191)
Outstanding, end of period (in shares) \| shares	13,106,587
Vested at end of period (in shares) \| shares	11,710,880
Exercisable options, vested and expected to vest (in shares) \| shares	13,047,941
Weighted-Average Exercise Price [Roll forward]
Outstanding, weighted average exercise price, beginning of period (in dollars per share)	$ 3.62
Granted, weighted average exercise price (in dollars per share)	0.00
Exercised, weighted average exercise price (in dollars per share)	2.51
Unvested options forfeited, weighted-average exercise price (in dollars per share)	6.44
Vested options expired, weighted-average exercise price (in dollars per share)	6.44
Outstanding, weighted average exercise price, end of period (in dollars per share)	3.67
Vested at end of period, weighted average exercise price (in dollars per share)	3.27
Vested and expected to vest, weighted average exercise price (in dollars per share)	$ 3.66
Stock options, additional disclosures [Abstract]
Outstanding Options, weighted average remaining contractual term (in years)	6 years
Vested at end of period, weighted average remaining contractual term (in years)	5 years 9 months 18 days
Vested and expected to vest, weighted average remaining contractual term (in years)	6 years
Outstanding, aggregate intrinsic value \| $	$ 56,844,050
Vested at end of period, aggregate intrinsic value \| $	55,362,178
Vested or expected to vest, aggregate intrinsic value \| $	56,809,041
Exercised options, intrinsic value \| $	$ 4,937,922
Number of outstanding options (in shares) \| shares	13,106,587
Outstanding Options, weighted average remaining contractual term (in years)	6 years
Outstanding Options, weighted average exercise price (in dollars per share)	$ 3.67
Number of exercisable options (in shares) \| shares	11,730,880
Exercisable Options, weighted average exercise price (in dollars per share)	$ 3.27
Total unrecognized compensation expense \| $	$ 3,283,152
Fair value options valuation assumptions [Abstract]
Expected volatility Minimum		54.40%
Expected volatility Maximum		58.10%
Expected life (in years)		6 years
Expected dividend yield		0.00%
Risk-free interest rate Minimum		1.51%
Risk-free interest rate Maximum		1.68%
$0.50 - $0.76
Stock options, additional disclosures [Abstract]
Outstanding Options, weighted average remaining contractual term (in years)	2 years 10 months 24 days
Exercise Price Range, lower range limit (in dollars per share)	$ 0.50
Exercise Price Range, upper range limit (in dollars per share)	$ 0.76
Number of outstanding options (in shares) \| shares	441,429
Outstanding Options, weighted average remaining contractual term (in years)	2 years 10 months 24 days
Outstanding Options, weighted average exercise price (in dollars per share)	$ 0.72
Number of exercisable options (in shares) \| shares	441,429
Exercisable Options, weighted average exercise price (in dollars per share)	$ 0.72
$0.87 - $1.35
Stock options, additional disclosures [Abstract]
Outstanding Options, weighted average remaining contractual term (in years)	5 years 2 months 12 days
Exercise Price Range, lower range limit (in dollars per share)	$ 0.87
Exercise Price Range, upper range limit (in dollars per share)	$ 1.35
Number of outstanding options (in shares) \| shares	4,420,470
Outstanding Options, weighted average remaining contractual term (in years)	5 years 2 months 12 days
Outstanding Options, weighted average exercise price (in dollars per share)	$ 1.19
Number of exercisable options (in shares) \| shares	4,420,470
Exercisable Options, weighted average exercise price (in dollars per share)	$ 1.19
$1.40 - $2.45
Stock options, additional disclosures [Abstract]
Outstanding Options, weighted average remaining contractual term (in years)	4 years 4 months 24 days
Exercise Price Range, lower range limit (in dollars per share)	$ 1.40
Exercise Price Range, upper range limit (in dollars per share)	$ 2.45
Number of outstanding options (in shares) \| shares	1,458,424
Outstanding Options, weighted average remaining contractual term (in years)	4 years 4 months 24 days
Outstanding Options, weighted average exercise price (in dollars per share)	$ 1.92
Number of exercisable options (in shares) \| shares	1,458,424
Exercisable Options, weighted average exercise price (in dollars per share)	$ 1.92
$2.66 - $3.99
Stock options, additional disclosures [Abstract]
Outstanding Options, weighted average remaining contractual term (in years)	6 years 3 months 18 days
Exercise Price Range, lower range limit (in dollars per share)	$ 2.66
Exercise Price Range, upper range limit (in dollars per share)	$ 3.99
Number of outstanding options (in shares) \| shares	889,430
Outstanding Options, weighted average remaining contractual term (in years)	6 years 3 months 18 days
Outstanding Options, weighted average exercise price (in dollars per share)	$ 3.06
Number of exercisable options (in shares) \| shares	889,430
Exercisable Options, weighted average exercise price (in dollars per share)	$ 3.06
$4.19 - $6.38
Stock options, additional disclosures [Abstract]
Outstanding Options, weighted average remaining contractual term (in years)	6 years 10 months 24 days
Exercise Price Range, lower range limit (in dollars per share)	$ 4.19
Exercise Price Range, upper range limit (in dollars per share)	$ 6.38
Number of outstanding options (in shares) \| shares	3,310,253
Outstanding Options, weighted average remaining contractual term (in years)	6 years 10 months 24 days
Outstanding Options, weighted average exercise price (in dollars per share)	$ 5.36
Number of exercisable options (in shares) \| shares	2,898,133
Exercisable Options, weighted average exercise price (in dollars per share)	$ 5.28
$6.45 - $9.78
Stock options, additional disclosures [Abstract]
Outstanding Options, weighted average remaining contractual term (in years)	7 years 7 months 6 days
Exercise Price Range, lower range limit (in dollars per share)	$ 6.45
Exercise Price Range, upper range limit (in dollars per share)	$ 9.78
Number of outstanding options (in shares) \| shares	2,479,415
Outstanding Options, weighted average remaining contractual term (in years)	7 years 7 months 6 days
Outstanding Options, weighted average exercise price (in dollars per share)	$ 7.29
Number of exercisable options (in shares) \| shares	1,586,502
Exercisable Options, weighted average exercise price (in dollars per share)	$ 7.23
$9.90- $10.99
Stock options, additional disclosures [Abstract]
Outstanding Options, weighted average remaining contractual term (in years)	8 years 4 months 24 days
Exercise Price Range, lower range limit (in dollars per share)	$ 9.90
Exercise Price Range, upper range limit (in dollars per share)	$ 10.99
Number of outstanding options (in shares) \| shares	107,166
Outstanding Options, weighted average remaining contractual term (in years)	8 years 4 months 24 days
Outstanding Options, weighted average exercise price (in dollars per share)	$ 10.43
Number of exercisable options (in shares) \| shares	36,492
Exercisable Options, weighted average exercise price (in dollars per share)	$ 10.44

Equity - Restricted Stock Awards (Details) - USD ($)	3 Months Ended		6 Months Ended
Equity - Restricted Stock Awards (Details) - USD ($)	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Dec. 31, 2015
Share-based Compensation [Abstract]
Share-based compensation expense	$ 4,503,000	$ 4,255,000	$ 9,124,000	$ 8,186,000
Cost of sales
Share-based Compensation [Abstract]
Share-based compensation expense	95,000	90,000	190,000	184,000
Research and development
Share-based Compensation [Abstract]
Share-based compensation expense	155,000	203,000	360,000	389,000
Selling, general and administrative
Share-based Compensation [Abstract]
Share-based compensation expense	$ 4,253,000	$ 3,962,000	$ 8,574,000	$ 7,613,000
Restricted Stock Awards
Number of Shares
Unvested, Beginning Balance (in shares)			2,613,267
Granted (in shares)			2,014,838
Vested (in shares)			(825,595)
Forfeited (in shares)			(102,230)
Unvested, Ending Balance (in shares)	3,700,280		3,700,280
Weighted- Average Grant Date Fair Value
Unvested, Beginning Balance (in dollars per share)	$ 8.66		$ 8.66		$ 8.66	$ 9.14
Granted (in dollars per share)			8.04
Vested (in dollars per share)			8.63
Forfeited (in dollars per share)			8.85
Unvested, Ending Balance (in dollars per share)	$ 8.66		$ 8.66
Total unrecognized stock-based compensation related to time-based, nonvested restricted stock					$ 24,939,716
Expenses expected to be recognized over a weighted-average period (in years)			2 years 1 month 6 days

Equity - Treasury Stock (Details) - USD ($)	6 Months Ended
Equity - Treasury Stock (Details) - USD ($)	Jun. 30, 2016	Dec. 31, 2015	Dec. 31, 2014	May 12, 2014
Equity [Abstract]
Authorized share amount for repurchase (up to)		$ 60,000,000	$ 20,000,000	$ 10,000,000
Stock repurchase (in shares)	415,252
Shares repurchased, value	$ 3,518,000
Brokerage commissions	12,000
Remaining authorizations under the repurchase program	$ 10,756,000
Shares reissued from the treasury (in shares)	2,599,377
Shares reissued from the treasury, value	$ 21,334,000

Income taxes (Details) - USD ($) $ in Thousands	3 Months Ended	6 Months Ended		12 Months Ended
Income taxes (Details) - USD ($) $ in Thousands	Mar. 31, 2016	Jun. 30, 2016	Jun. 30, 2015	Dec. 31, 2016	Dec. 31, 2015
Income Tax Contingency [Line Items]
Effective tax rate		34.70%	3.70%
Effective income tax rate increase (decrease), amount	$ 350
Effective income tax rate increase (decrease), percent		31.00%
Decrease in valuation allowance					$ 15,400
Forecast
Income Tax Contingency [Line Items]
Effective tax rate				42.20%

Supplemental disclosure of cash flow and non-cash investing and financing activities (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
Supplemental disclosure of cash flow and non-cash investing and financing activities [Abstract]
Cash paid for interest	$ 76	$ 29
Income taxes paid	631	874
Stock issuance of 441,009 shares in connection with acquisition	$ 3,346	0
Shares issued in conjunction with acquisition (in shares)	441,009
Retirement of fixed assets	$ 0	308
Stock issuance of 20,406 and 11,321 shares in exchange for services performed, respectively	$ 173	$ 108
Shares issued for services performed (in shares)	20,406	11,321

Contractual Commitments and Contingencies - Narrative (Details) $ in Thousands	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2016 USD ($) claim	Jun. 30, 2015 USD ($)	Jun. 30, 2016 USD ($) claim	Jun. 30, 2015 USD ($)	Dec. 31, 2015	Dec. 30, 2015 term	Dec. 22, 2015 term	Oct. 02, 2015 term	Aug. 18, 2015 claim	Jul. 10, 2015 claim	Jun. 29, 2015 claim
Loss Contingencies [Line Items]
Lease expiration period (in years)			8 years
Rent expense \| $	$ 436	$ 310	$ 859	$ 593
Pending Litigation
Loss Contingencies [Line Items]
Number of patent challenged grounds	4		4
Pending Litigation \| Liventa Action
Loss Contingencies [Line Items]
Number of pending disputed claim terms \| term						1	30
Pending Litigation \| Bone Bank Action
Loss Contingencies [Line Items]
Number of patent challenged grounds										5	7
Number of pending disputed claim terms \| term								1
Opinion allowing a review of patent										2
Pending Litigation \| Liventa Action, 701 Patent
Loss Contingencies [Line Items]
Number of patent challenged grounds									6
Pending Litigation \| Liventa Action, 437 Patent
Loss Contingencies [Line Items]
Number of patent challenged grounds									7
Opinion allowing a review of patent									1
Sales Revenue, Net \| Product Concentration Risk
Loss Contingencies [Line Items]
Percentage of revenue					12.00%
Standby Letters of Credit
Loss Contingencies [Line Items]
Standby letters of credit \| $	$ 118		$ 118

Contractual Commitments and Contingencies - Estimated Annual Lease Payments (Details) $ in Thousands	Jun. 30, 2016 USD ($)
Estimated annual lease, royalty, and employment agreement expenses [Abstract]
2017	$ 3,310
2018	3,128
2019	2,052
2020	1,366
Thereafter	644
Total Contractual commitments	$ 10,500

Schedule II - Valuation and Qualifying Accounts (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Allowance for doubtful accounts
Movement in Valuation Allowances and Reserves [Roll Forward]
Balance at Beginning of Period	$ 3,872	$ 2,010	$ 3,270	$ 1,750
Additions charged to Expense or Revenue	233	500	835	760
Deductions and write-offs	(19)	(6)	(19)	(6)
Balance at End of Period	4,086	2,504	4,086	2,504
Allowance for product returns
Movement in Valuation Allowances and Reserves [Roll Forward]
Balance at Beginning of Period	1,708	944	1,262	841
Additions charged to Expense or Revenue	2,106	734	3,467	1,443
Deductions and write-offs	(1,623)	(648)	(2,538)	(1,254)
Balance at End of Period	2,191	1,030	2,191	1,030
Allowance for obsolescence
Movement in Valuation Allowances and Reserves [Roll Forward]
Balance at Beginning of Period	604	552	397	527
Additions charged to Expense or Revenue	1,335	90	1,570	221
Deductions and write-offs	(159)	(89)	(187)	(195)
Balance at End of Period	$ 1,780	$ 553	$ 1,780	$ 553