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Document and Entity Information - shares	9 Months Ended
Document and Entity Information - shares	Sep. 30, 2017	Oct. 13, 2017
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		111,034,873
Document Fiscal Year Focus	2017
Document Fiscal Period Focus	Q3
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Sep. 30, 2017

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Current assets:
Cash and cash equivalents	$ 36,522	$ 34,391
Accounts receivable, net	59,581	67,151
Inventory, net	10,419	17,814
Prepaid expenses	6,662	5,894
Other current assets	926	1,288
Total current assets	114,110	126,538
Property and equipment, net of accumulated depreciation	13,264	13,786
Goodwill	19,894	20,203
Intangible assets, net of accumulated amortization	10,377	23,268
Deferred tax asset, net	17,671	9,114
Other assets	3,391	354
Total assets	178,707	193,263
Current liabilities:
Accounts payable	8,767	11,436
Accrued compensation	15,092	12,365
Accrued expenses	8,613	10,941
Current portion of earn out liability	0	8,740
Income taxes	2,329	5,768
Other current liabilities	358	1,482
Total current liabilities	35,159	50,732
Earn out liability	0	8,710
Other liabilities	1,076	821
Total liabilities	36,235	60,263
Commitments and contingencies (Note 12)
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; 112,703,926 issued and 111,035,248 outstanding at September 30, 2017 and 110,212,547 issued and 109,862,787 outstanding at December 31, 2016	112	110
Additional paid-in capital	163,446	161,261
Treasury stock at cost: 1,668,678 shares at September 30, 2017 and 349,760 shares at December 31, 2016	(24,784)	(2,216)
Accumulated earnings (deficit)	3,698	(26,155)
Total stockholders' equity	142,472	133,000
Total liabilities and stockholders' equity	$ 178,707	$ 193,263

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - $ / shares	Sep. 30, 2017	Dec. 31, 2016
Stockholders' equity:
Preferred stock par value (in dollars per share)	$ 0.001	$ 0.001
Preferred stock, shares authorized (in shares)	5,000,000	5,000,000
Preferred stock, shares issued (in shares)	0	0
Preferred stock, shares outstanding (in shares)	0	0
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, shares authorized (in shares)	150,000,000	150,000,000
Common stock, shares issued (in shares)	112,703,926	110,212,547
Common stock, shares outstanding (in shares)	111,035,248	109,862,787
Treasury stock, shares (in shares)	1,668,678	349,760

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Income Statement [Abstract]
Net sales	$ 84,573	$ 64,429	$ 233,592	$ 175,139
Cost of sales	9,599	7,997	26,972	23,338
Gross margin	74,974	56,432	206,620	151,801
Operating expenses:
Research and development expenses	5,481	2,919	14,430	8,582
Selling, general and administrative expenses	60,233	48,179	168,498	131,599
Amortization of intangible assets	418	631	1,451	1,889
Operating income	8,842	4,703	22,241	9,731
Other income (expense)
Gain on divestiture	4,274	0	4,274	0
Interest expense, net	(43)	(87)	(337)	(254)
Income before income tax provision	13,073	4,616	26,178	9,477
Income tax provision (expense) benefit	4,384	(1,295)	3,675	(2,984)
Net income	$ 17,457	$ 3,321	$ 29,853	$ 6,493
Net income per common share - basic (in dollars per share)	$ 0.16	$ 0.03	$ 0.28	$ 0.06
Net income per common share - diluted (in dollars per share)	$ 0.15	$ 0.03	$ 0.26	$ 0.06
Weighted average shares outstanding - basic (in shares)	106,871,436	105,991,990	106,469,278	105,927,890
Weighted average shares outstanding - diluted (in shares)	117,501,925	112,361,179	116,547,006	112,193,701

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Unaudited) - 9 months ended Sep. 30, 2017 - USD ($) $ in Thousands	Total	Common Stock	Additional Paid-in Capital	Treasury Stock	Earnings (Deficit)
Balance (in shares) at Dec. 31, 2016		110,212,547		349,760
Balance, beginning of period at Dec. 31, 2016	$ 133,000	$ 110	$ 161,261	$ (2,216)	$ (26,155)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Share-based compensation expense	$ 15,232		15,232
Exercise of stock options (in shares)	2,417,769	1,097,933		(1,319,836)
Exercise of stock options	$ 11,590	$ 1	(2,697)	$ 14,286
Issuance of restricted stock (in shares)		1,393,446		(1,630,093)
Issuance of restricted stock	0	$ 1	(13,108)	$ 13,107
Restricted stock shares canceled/forfeited	0		2,717	$ (2,717)
Restricted stock shares cancelled/forfeited (in shares)				283,198
Shares issued for services performed	$ 166		41	$ 125
Shares issued for services performed (in shares)	(17,539)			(17,539)
Share repurchase (in shares)				3,644,327
Share repurchase	$ (44,032)			$ (44,032)
Shares repurchased for tax withholding (in shares)				358,861
Shares repurchased for tax withholding	(3,337)			$ (3,337)
Net income	29,853				29,853
Balance (in shares) at Sep. 30, 2017		112,703,926		1,668,678
Balance, end of period at Sep. 30, 2017	$ 142,472	$ 112	$ 163,446	$ (24,784)	$ 3,698

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016
Cash flows from operating activities:
Net income	$ 29,853	$ 6,493
Adjustments to reconcile net income to net cash from operating activities:
Depreciation	3,074	2,394
Amortization of intangible assets	1,451	1,889
Amortization of inventory fair value step-up	203	1,471
Amortization of deferred financing costs	135	136
Impairment of intangible assets	357	0
Share-based compensation	15,232	13,826
Change in deferred income taxes	(8,557)	(449)
Gain on divestiture	(4,274)	0
Increase (decrease) in cash, net of effects of acquisition and divestiture, resulting from changes in:
Accounts receivable	5,165	(7,671)
Inventory	3,738	(3,599)
Prepaid expenses	(792)	(2,023)
Other assets	(402)	286
Accounts payable	478	(3,941)
Accrued compensation	2,873	(4,223)
Accrued expenses	(2,228)	2,020
Income taxes	(3,438)	2,621
Other liabilities	(794)	(82)
Net cash flows from operating activities	42,074	9,148
Cash flows from investing activities:
Purchases of equipment	(3,998)	(5,301)
Stability acquisition	0	(7,631)
Fixed maturity securities redemption	0	3,000
Patent application costs	(144)	(515)
Net cash flows from investing activities	(4,142)	(10,447)
Cash flows from financing activities:
Proceeds from exercise of stock options	11,590	2,548
Share repurchase under repurchase plan	(44,032)	(10,378)
Share repurchase for tax withholdings on vesting of restricted stock	(3,337)	(892)
Deferred financing costs	0	(106)
Payments under capital lease obligations	(22)	(21)
Net cash flows from financing activities	(35,801)	(8,849)
Net change in cash	2,131	(10,148)
Cash and cash equivalents, beginning of period	34,391	28,486
Cash and cash equivalents, end of period	$ 36,522	$ 18,338

Basis of Presentation	9 Months Ended
Basis of Presentation	Sep. 30, 2017
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 three and nine months ended September 30, 2017 and 2016, are not necessarily indicative of the results that may be expected for the fiscal year. The balance sheet at December 31, 2016, 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, 2016, included in the Company's Annual Report on Form 10-K for the year ended December 31, 2016, filed with the SEC on March 1, 2017. 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 MiMedx allograft product families include our: dHACM family with AmnioFix® and EpiFix® brands; Amniotic Fluid family with OrthoFlo brand; Umbilical family with EpiCord® and AmnioCord® brands; and Placental Collagen family with CollaFix® and AmnioFill® brands. AmnioFix and EpiFix are our tissue technologies processed from human amniotic membrane; OrthoFlo is an amniotic fluid derived allograft; EpiCord and AmnioCord are derived from the umbilical cord; and CollaFix® is our collagen fiber technology, developed with our patented cross-linking polymers, designed to mimic the natural composition, structure and mechanical properties of musculoskeletal tissues in order to augment their repair and is in development. (Our former Physio product is owned by our former subsidiary, Stability Biologics, LLC which we divested effective September 30, 2017). See Note 3, Divestiture of Stability Biologics, LLC, below.

Significant Accounting Policies	9 Months Ended
Significant Accounting Policies	Sep. 30, 2017
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, 2016, 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. Notes Receivable The Company's notes receivable as of September 30, 2017 are included in Other Assets and were valued taking into consideration cost of the market participant inputs, market conditions, liquidity, operating results and other qualitative factors. Inventories Inventories are valued at the lower of cost or market, using the first-in, first-out ("FIFO") method. Inventory is tracked through Raw Material, WIP, and Finished Good stages as the product progresses through various production steps and stocking locations. Labor and overhead costs are absorbed through the various production processes until the work order closes. Historical yields and normal capacities are utilized in the calculation of production overhead rates. Reserves for inventory obsolescence are utilized to account for slow-moving inventory as well as inventory no longer needed due to diminished market demand. Revenue Recognition The Company sells its products through a combination of a direct sales force, independent stocking distributors and third party representatives in the U.S., and independent distributors in international markets. The Company recognizes revenue when title to the goods and risk of loss transfers to customers, provided there are no material remaining performance obligations required of the Company or any matters of customer acceptance. The Company records revenues from sales to our independent stocking distributors at the time the product is shipped to the distributor. Our stocking distributors, who sell the products to their customers or sub-distributors, contractually take title to the products and assume all risks of ownership at the time of shipment. Our stocking distributors are obligated to pay us the contractually agreed upon invoice price within specified terms regardless of when, if ever, they sell the products. Our customers and stocking distributors do not have any contractual rights of return or exchange other than for defective product or shipping error; however, in limited situations, we do accept returns or exchanges at our discretion. Some of the Company’s sales to Government accounts, including the Department of Veterans Affairs, were historically made through a distributor relationship with AvKARE Inc., which is a veteran-owned General Services Administration Federal Supply Schedule contractor. The Company's agreement with AvKARE expired on June 30, 2017. Upon expiration of the agreement, the Company had an obligation to repurchase AvKARE’s remaining inventory within 90 days in accordance with the terms of the agreement. As of September 30, 2017, the Company has satisfied the repurchase obligation. A portion of the Company’s revenue is generated from consignment inventory maintained at hospitals or physicians' offices. Significant terms of our consignment agreements state that title to the inventory remains with the Company until the product, which has been segregated by the consignee, is withdrawn and therefore purchased by the consignee. The consignee accepts all risk of loss and full responsibility for any product in the consignment inventory that may be opened, lost, stolen or damaged. The Company recognizes revenue when we are notified that product has been used or implanted. We make estimates of potential future sales returns, discounts and allowances related to current period product revenue and these are reflected as a reduction of revenue in the same period revenue is recognized. We base our estimate for sales returns, discounts and allowances on historical sales and product return information, including historical experience and actual and projected trend information as well as projected sales returns based on estimated usage and contractual arrangements. These estimates have historically been materially consistent with actual results. We continually evaluate new and current customers, including our stocking distributors, for collectability based on various factors including past history with the customer, evaluation of their creditworthiness, and current economic conditions. We only record revenue when collectability is reasonably assured. 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, after the measurement period has expired, 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 as patents in progress until a patent is obtained. When a patent is issued, the costs are 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. If a patent is not obtained, costs are expensed. Patents are included in Intangible Assets in the Condensed Consolidated Balance Sheets. The Company capitalized approximately $144,000 of patent costs during the first nine months of 2017. The Company capitalized approximately $515,000 of patent costs during the first nine months of 2016. Treasury Stock The Company accounts for the purchase of treasury stock under the cost method. Treasury stock which is reissued for the exercise of option grants and the issuance of restricted stock grants is accounted for on a FIFO basis. Recently Issued and Adopted Accounting Standards The Company considers the applicability and impact of all 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. We are in the process of completing our procedures for adoption of the standard. We have identified one revenue stream from our contracts with customers: product sales. Based upon the results of our work to date we have elected the modified retrospective method as we currently do not expect the application of the new standard to these contracts to have a material impact to our consolidated financial statements either at initial implementation or on an ongoing basis. 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 2016-09, "Improvements to Employee Share-Based Payment Accounting," which simplifies several aspects of the accounting for share-based payment award transactions including (a) income tax consequences; (b) classification of awards as either debt or equity liabilities; and (c) classification on the statement of cash flows. The amendments are effective for public business entities for annual periods beginning after December 15, 2016, and interim periods within those annual periods. The Company has adopted this ASU as of January 1, 2017. The primary amendment impacting the Company's financial statements is the requirement for excess tax benefits or shortfalls on the exercise of share-based compensation awards to be presented in income tax expense in the Consolidated Statements of Income during the period the award is exercised as opposed to being recorded in additional paid-in capital on the Consolidated Balance Sheets. The excess tax benefit or shortfall is calculated as the difference between the fair value of the award on the date of exercise and the fair value of the award used to measure the expense to be recognized over the service period. Changes are required to be applied prospectively to all excess tax benefits and deficiencies resulting from the exercise of awards after the date of adoption. The ASU requires a "modified retrospective" approach application for excess tax benefits that were not previously recognized in situations where the tax deduction did not reduce current taxes payable. For the three-month period ended September 30, 2017, the Company recorded an income tax benefit of $1,510,000 related to the excess tax benefit of exercised awards during the period, that would have been recorded in additional paid-in capital during prior years. For the nine months ended September 30, 2017, the Company recorded an income tax benefit of $4,205,000 related to the excess tax benefit of exercised awards during the period, that would have been recorded in additional paid-in capital during prior years. As the end result is dependent on the future value of the Company's stock as well as the timing of employee exercises, the amount of future impact cannot be quantified at this time. The Company has elected to continue to estimate forfeitures expected to occur to determine the share-based compensation expense. In August 2016, the FASB issued ASU No. 2016-15, “Statement of Cash Flows (Topic 230) Classification of Certain Cash Receipts and Cash Payments.” The update addresses eight specific cash flow issues with the objective of reducing the existing diversity in practice. This ASU is effective for public business entities for fiscal years beginning after December 15, 2017 and for interim periods within those fiscal years. The amendments in this update may be applied retrospectively or prospectively and early adoption is permitted. The Company does not believe that this guidance will have a material impact on its consolidated financial statements. In January 2017, the FASB issued ASU No. 2017-04,"Intangibles-Goodwill and Other (Topic 350) Simplifying the Test for Goodwill Impairment." The update eliminates Step 2 from the goodwill impairment test. This ASU is effective for fiscal years beginning after December 15, 2019. The amendments in this update should be applied on a prospective basis. The Company is currently assessing the impact the adoption of ASU 2017-04 will have on its consolidated financial statements. All other ASUs issued and not yet effective for the nine months ended September 30, 2017, 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.

Divestiture of Stability Biologics, LLC

9 Months Ended

Sep. 30, 2017

Discontinued Operations and Disposal Groups [Abstract]

Divestiture of Stability Biologics, LLC

of Stability Biologics, LLC

On September 30, 2017, we completed the previously announced divestiture (the “Stability Divestiture”) of our wholly-owned subsidiary, Stability Biologics, LLC, a Georgia limited liability company (successor-in-interest to Stability Inc., a Florida corporation) (“Stability LLC”), pursuant to the Membership Interest Purchase Agreement (“Agreement”) by and among the Company, Stability LLC, each person that, as of January 13, 2016, was a stockholder (the “Stockholders”) of Stability Inc., a Florida corporation and a predecessor-in-interest to Stability LLC ("Stability, Inc."), and Brian Martin, as stockholder representative, the terms of which were previously disclosed in the Current Report on Form 8-K dated August 18, 2017.

A summary of the assets divested and consideration received follows (in thousands):



	September 30,
	2017
Assets divested
Trade receivables	$	2,405
Inventories	2,800
Prepaid expenses and other assets	1,610
Goodwill (a)	309
Intangible assets	11,857
Property and equipment, net of accumulated depreciation	1,446
Total assets divested	20,427

Liabilities divested
Accounts payable and accrued liabilities	3,487
Total liabilities divested	3,487

Total net assets divested	$	16,940

Transaction costs	$	400

Consideration received
Non-trade receivable	150
Note receivable	3,190
Intangible assets	630
Extinguishment of earn out liability	17,644
Total consideration received	$	21,614

Gain on sale	$	4,274

(a) In accordance with ASC 350-20-35-52 when a portion of a reporting unit is disposed of, goodwill associated with that business shall be included in the carrying amount of the business in determining the gain on disposal. In accordance with ASC 350-20-35-53, the amount of goodwill to be included in that carrying amount shall be based on the relative fair values of the business to be disposed of and the portion of the reporting unit that will be retained. Based on an estimated approximate fair value of Stability LLC compared to the business retained, approximately $300,000 out of the total goodwill of $20.2 million residing in the reporting unit was included in the carrying amount of the business sold.

The total gain on the Stability Divestiture of $10,011,000 is comprised of a pretax book gain of $4,274,000 and an associated tax benefit of $5,737,000, which consists principally of the write off of deferred tax liabilities related to Stability LLC.

Inventories

9 Months Ended

Sep. 30, 2017

Inventory Disclosure [Abstract]

Inventories

Inventories consisted of the following items as of September 30, 2017, and December 31, 2016 (in thousands):



	September 30, 2017			December 31, 2016
Raw materials	$	690		$	1,148
Work in process	5,164			6,677
Finished goods	5,554			10,817
Inventory, gross	11,408			18,642
Reserve for obsolescence	(989		)	(828		)
Inventory, net	$	10,419		$	17,814

Property and Equipment

9 Months Ended

Sep. 30, 2017

Property, Plant and Equipment [Abstract]

Property and Equipment

Property and equipment consisted of the following as of September 30, 2017, and December 31, 2016 (in thousands):



	September 30, 2017			December 31, 2016
Leasehold improvements	$	3,116		$	3,274
Lab and clean room equipment	9,316			8,666
Furniture and office equipment	9,203			7,051
Construction in progress	2,583			3,300
Property and equipment, gross	24,218			22,291
Less accumulated depreciation	(10,954		)	(8,505		)
Property and equipment, net	$	13,264		$	13,786

Included in net property and equipment is approximately $427,000 of equipment covered under capital leases. The corresponding liability of approximately $8,600 is included in other liabilities in the accompanying Condensed Consolidated Balance Sheets. The interest rate for the lease is approximately 12% with a maturity date of January 2018.

Also included in net property and equipment 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.

Gross depreciation expense for the nine months ended September 30, 2017 and 2016, was approximately $3,074,000 and $2,394,000, respectively, and approximately $1,013,000 and $838,000 for the three months ended September 30, 2017 and 2016, respectively. For the three and nine months ended September 30, 2017 approximately $626,000 of accumulated depreciation expense and $2,000,000 in gross book value of property and equipment was eliminated in connection with the Stability Divestiture.

Intangible Assets and Royalty Agreement

9 Months Ended

Sep. 30, 2017

Goodwill and Intangible Assets Disclosure [Abstract]

Intangible Assets and Royalty Agreement

Intangible assets are summarized as follows (in thousands):



	Weighted Average Amortization Lives	September 30, 2017			December 31, 2016
		Cost			Cost
Licenses (a) (b) (c) (d)	7 years	$	1,009		$	1,399
Patents & Know-How (b) (c) (d)	19 years	8,712			14,839
Customer & Supplier Relationships (b) (d)	13 years	4,271			9,091
Tradenames & Trademarks (d)	indefinite	1,008			1,458
Non-compete agreements	4 years	120			830
In Process Research & Development (b)	various	25			25
Patents in Process (c)	various	1,742			2,618
Total		16,887			30,260
Less Accumulated amortization and impairment charges		(6,510		)	(6,992		)
Net		$	10,377		$	23,268

(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. As of September 30, 2017, the license was fully amortized.


(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.

(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. For the nine months ended September 30, 2017, approximately $663,000 of costs associated with patents granted during the period were capitalized and included in Patents & Know-How subject to amortization over the life of the patents.


(d)	On January 13, 2016, the Company acquired Stability, Inc. As a result, the Company recorded intangible assets for Patents & Know-How of $6,790,000, Customer & Supplier Relationships of $5,330,000, Non-compete agreements of $830,000, Tradenames & Trademarks of $450,000 and Licenses of $390,000.

On September 30, 2017, the Company completed the Stability Divestiture which resulted in the transfer of intangible assets acquired in 2016 and the acquisition of a Distribution Agreement valued at $510,000 and a Non-compete Agreement valued at $120,000.

Gross amortization expense for the nine months ended September 30, 2017 and 2016, was approximately $1,451,000 and $1,889,000, respectively, and $418,000 and $631,000 for the three months ended September 30, 2017 and 2016, respectively. For the three and nine months ended September 30, 2017, approximately $1,932,000 of accumulated amortization expense was eliminated in connection with the Stability Divestiture.

Expected future amortization of intangible assets as of September 30, 2017, is as follows (in thousands):



Year ending December 31,	Estimated Amortization Expense
2017 (a)	$	237
2018	950
2019	950
2020	950
2021	942
Thereafter	5,340
	$	9,369

(a) Estimated amortization expense for the year ending December 31, 2017, includes only amortization to be recorded after September 30, 2017.

Credit Facility	9 Months Ended
Credit Facility	Sep. 30, 2017
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. In September 2017, the expiration date of the credit agreement was extended to October 12, 2019. 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. The obligations of the Company under the Credit Agreement are guaranteed by the Company's subsidiaries. The obligations of the loan parties under the Credit Agreement and the other credit documents are secured by liens on and security interests in substantially all of the assets of each of the loan parties and a pledge of the equity interests of each subsidiary owned by a loan party, subject to certain customary exclusions. 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 initial life of the facility. The Credit Agreement contains customary representations, warranties, covenants and events of default, including restrictions on certain payments of dividends by the Company. As of September 30, 2017, there were no outstanding revolving loans under the credit facility, and the Company was in compliance with all covenants under the Credit Agreement.

Net Income Per Share

9 Months Ended

Sep. 30, 2017

Earnings Per Share [Abstract]

Net Income Per Share

Basic net income 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 per share (in thousands except share data):



	Three Months Ended September 30,				Nine Months Ended September 30,
	2017		2016		2017		2016
Net income	$	17,457	$	3,321	$	29,853	$	6,493
Denominator for basic earnings per share - weighted average shares	106,871,436		105,991,990		106,469,278		105,927,890
Effect of dilutive securities: Stock options and restricted stock outstanding(a)	10,630,489		6,369,189		10,077,728		6,265,811
Denominator for diluted earnings per share - weighted average shares adjusted for dilutive securities	117,501,925		112,361,179		116,547,006		112,193,701
Income per common share - basic	$	0.16	$	0.03	$	0.28	$	0.06
Income per common share - diluted	$	0.15	$	0.03	$	0.26	$	0.06

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



	Three Months Ended September 30,		Nine Months Ended September 30,
	2017	2016	2017	2016
Outstanding stock options	7,916,564	5,704,112	7,985,521	5,767,469
Restricted stock awards	2,713,925	665,077	2,092,207	498,342
	10,630,489	6,369,189	10,077,728	6,265,811

Equity

9 Months Ended

Sep. 30, 2017

Equity [Abstract]

Equity

Stock Incentive Plans

The Company has four share-based compensation plans 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 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”). The awards are subject to a vesting schedule as set forth in each individual agreement. The Company currently intends to use only the 2016 Plan to make future grants.

Stock Options

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, 2017	12,552,608		$	3.61
Granted	—		$	—
Exercised	(2,417,769	)	$	4.80
Unvested options forfeited	(25,839	)	$	6.54
Vested options expired	(68,991	)	$	5.79
Outstanding at September 30, 2017	10,040,009		$	3.30	4.60	$	86,178,050
Vested at September 30, 2017	9,976,636		$	3.26	4.59	$	86,042,771
Vested or expected to vest at September 30, 2017 (a)	10,043,166		$	3.30	4.60	$	86,176,954


(a)	Includes forfeiture-adjusted unvested shares.

The intrinsic value of the options exercised during the nine months ended September 30, 2017, was approximately $17,994,945.

Following is a summary of stock options outstanding and exercisable at September 30, 2017:



	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
$0.70 - $1.09	1,094,429	2.8	$	0.91	1,094,429	$	0.91
$1.10 - $1.65	4,290,379	3.7	1.30		4,290,379	1.30
$2.45 - $3.75	854,001	5.0	2.77		854,001	2.77
$4.19 - $6.38	1,989,205	5.7	5.36		1,989,205	5.36
$6.49 - $9.78	1,713,328	6.4	7.30		1,683,625	7.26
$9.90 - $10.99	98,667	7.2	10.38		64,997	10.38
	10,040,009	4.6	$	3.30	9,976,636	$	3.26

Total unrecognized compensation expense related to granted stock options at September 30, 2017, was approximately $98,900 and will be charged to expense ratably through January 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.

There were no options granted during the nine months ended September 30, 2017 and September 30, 2016.

Restricted Stock Awards

Activity with respect to restricted stock awards for the nine months ended September 30, 2017 is summarized as follows and includes 17,539 shares of common stock valued at approximately $166,000 which were issued under the 2016 Plan to a consultant in return for services performed:



	Number of Shares		Weighted-Average Grant Date Fair Value
Unvested at January 1, 2017	3,828,445		$8.53
Granted	3,041,078		9.23
Vested	(1,457,449	)	8.42
Forfeited	(283,198	)	8.67
Unvested at September 30, 2017	5,128,876		8.97

As of September 30, 2017, there was approximately $32,910,620 of total unrecognized share-based compensation expense 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 2.04 years, which approximates the remaining vesting period of these grants. All shares noted above as unvested are considered issued and outstanding at September 30, 2017.

For the three and nine months ended September 30, 2017 and 2016, the Company recognized share-based compensation expense as follows (in thousands):



	Three Months Ended September 30,				Nine Months Ended September 30,
	2017		2016		2017		2016
Cost of sales	$	119	$	109	$	393	$	300
Research and development	148		159		425		520
Selling, general and administrative	5,039		4,433		14,414		13,006
	$	5,306	$	4,701	$	15,232	$	13,826

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. Our Board subsequently extended the program until December 31, 2017, and increased the total authorization to $120 million as of October 26, 2017. 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 nine months ended September 30, 2017, the Company repurchased 3,644,327 shares of its common stock for a purchase price of approximately $43,923,000 before brokerage commissions of approximately $109,000. As of September 30, 2017, the Company had approximately $13,000 of availability remaining under the repurchase program. In addition, the Company repurchased 358,861 shares surrendered by employees to satisfy tax withholding obligations upon vesting of restricted stock for the nine months ended September 30, 2017.

Additionally, for the nine months ended September 30, 2017, the Company reissued 2,684,270 shares from the treasury for restricted stock grants and stock option exercises, net of forfeitures, with an aggregate carrying value of approximately $24,801,000.

Income Taxes	9 Months Ended
Income Taxes	Sep. 30, 2017
Income Tax Disclosure [Abstract]
Income taxes	Income Taxes The effective tax rate for the three months ended September 30, 2017 was (33.5)% and reflects discrete tax benefits related to the Stability Divestiture of $5,737,000, and $1,702,000 primarily related to equity compensation deductions. The effective tax rate exclusive of the tax benefit associated with the Stability Divestiture was 15.4% for the three months ended September 30, 2017 and 28.1% for the three months ended September 30, 2016, respectively. The effective tax rate for the nine months ended September 30, 2017 was (14.0)% and reflects discrete tax benefits related to the Stability Divestiture of $5,737,000, and $5,618,000 primarily related to equity compensation deductions. The effective tax rate exclusive of the tax benefit associated with the Stability Divestiture was 9.4% for the nine months ended September 30, 2017 and 31.5% for the nine months ended September 30, 2016, respectively. As of the end of September 2017, the projected annual effective tax rate for 2017 is 35.1% (excluding discrete items).

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

9 Months Ended

Sep. 30, 2017

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):



	Nine Months Ended September 30,
	2017		2016
Cash paid for interest	$	119	$	118
Income taxes paid	8,289		637
Share issuance of 441,009 shares in connection with acquisition	—		3,346
Share issuances of 17,539 and 43,344 shares in exchange for services performed, respectively	166		346

Contractual Commitments and Contingencies

9 Months Ended

Sep. 30, 2017

Commitments and Contingencies Disclosure [Abstract]

Contractual Commitments and Contingencies

Contractual Commitments

In addition to the capital leases noted above in Note 5, the Company has entered into operating lease agreements for facility space and equipment. These leases expire over the next six 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.

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



Twelve months ended September 30,
2018	$	2,634
2019	2,826
2020	1,707
2021	1,428
2022	1,470
Thereafter	495
	$	10,560

Rent expense for the nine months ended September 30, 2017 and 2016, was approximately $1,244,000 and $1,311,000, respectively, and was approximately $403,000 and $453,000 for the three months ended September 30, 2017 and 2016, 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 $52,000.

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, the Company would need a biologics license to lawfully market those micronized products (the "Untitled Letter"). 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 micronized 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. 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 human cells, tissues, and cellular and tissue-based products ("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 as well. On September 12 and 13, 2016, the FDA held a public hearing 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 Company awaits further decision from the FDA on the draft guidances, but anticipates this will be a lengthy process.

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 current good manufacturing processes ("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 requires 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.

Former Employee Litigation

On December 13, 2016, the Company filed lawsuits against former employees Jess Kruchoski (in the lawsuit styled MiMedx Group, Inc. v. Academy Medical, LLC, et. al. in the County Court of the Fifteenth Judicial Circuit in and for Palm Beach County, Florida (the “Florida Action”)) and Luke Tornquist (in the lawsuit styled MiMedx Group, Inc., v. Luke Tornquist in the Superior Court for Cobb County, Georgia, which was removed to the United States District Court for the Northern District of Georgia (the “Georgia Action”)). Both the Florida and Georgia Actions assert claims against Messrs. Kruchoski and Tornquist that each of them violated their restrictive covenants entered into with the Company, that each of them misappropriated trade secrets of the Company, that each of them tortiously interfered with contracts between the Company and its customers and employees and that each of them breached his duty of loyalty owed to the Company, among other claims. The Company sought injunctive relief against each of Mr. Kruchoski and Tornquist to enforce its restrictive covenants in place with each of them. The Company obtained consent injunctions from each party enforcing those covenants. The Company is also seeking monetary damages in an amount to be determined at trial.

The Company continues to vigorously pursue its claims asserted in all of these actions and also to vigorously defend against the lawsuits and counterclaims asserted against it.

Patent Litigation

The Company 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 Northern District of Georgia against Liventa Bioscience, Inc. (formerly known as AFCell Medical, 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 the Company'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 a settlement of the false advertising claims for an undisclosed sum. The patent infringement claims are still pending as described below.

The Company asserts that Liventa, 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. Defendants filed parallel Inter Partes Review ("IPR") proceedings which are discussed below. Trial has been set for the week of January 22, 2018.

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. On September 7, 2017, the Court granted partial summary judgment in defendants’ favor on a portion of the claim. The Company filed a motion for reconsideration on October 4, 2017.

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. The case is currently in the discovery phase.

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 the Company’s complaint and filed counterclaims of non-infringement and invalidity. On January 4, 2017, the Court granted a joint motion to stay the proceedings pending the outcome of the Bone Bank Action.

IPRs

In addition to defending the claims in the pending district court litigations, defendants in the Liventa and Bone Bank cases 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 ("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 the Liventa 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. On July 7, 2016, the PTAB issued an opinion finding that the challenged claims, which relate to embossment and not configuration, were invalid for obviousness. The Company decided not to appeal the decision, as it impacted a non-core patent. 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. On August 16, 2016, the PTAB issued an opinion finding that the challenged claims were unpatentable. The Company filed an appeal of the PTAB’s decision regarding the '437 patent. On September 14, 2017, the Federal Circuit affirmed the PTAB’s decision regarding the ‘437 patent.

Other Litigation

The Capitol Forum Litigation

On September 21, 2017, MiMedx filed a lawsuit against DBW Partners LLC d/b/a The Capitol Forum (the “Capitol Forum”), Trevor Baine, Teddy Downey, Jake Williams, Miles Pulsford, Matt Treacy and John Does 1-100 (collectively, the “Capitol Defendants”) in the United States District Court for the District of Columbia. The Company has brought claims for defamation, libel, slander, tortious interference, false light, and violations of the Lanham Act in relation to the Capitol Defendants publishing articles and sending emails to shareholders that are false and misleading for the purpose of negatively impacting the price of MiMedx stock. The Capitol Defendants have not yet responded to the Company’s complaint.

The Aurelius Value and Viceroy Litigation

On October 4, 2017, the Company and Sean McCormack (a Company employee) filed a lawsuit against Sparrow Fund Management LP a/k/a Aurelius Value, Viceroy Research, John Fichthorn, BR Dialectic Capital Management LLC and John Does 1-10 in the United States District Court for the Southern District of New York asserting claims for libel, slander, defamation, false light and tortious interference based on false and misleading “research” reports and other false and misleading statements allegedly published in order to manipulate the Company's stock. Defendants Sparrow, Fichthorn, and BR Dialectic have filed motions to dismiss MiMedx’s complaint which are pending before the court.

Schedule II - Valuation and Qualifying Accounts

9 Months Ended

Sep. 30, 2017

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 Nine Months Ended September 30, 2017 and 2016 (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 September 30, 2017
Allowance for doubtful accounts	$	7,219	$	150	$	(409	)	$	6,960
Allowance for sales returns, discounts and allowances	3,461		1,288		(1,270		)	3,479
Allowance for obsolescence	1,113		212		(336		)	989

For the three months ended September 30, 2016
Allowance for doubtful accounts	$	4,086	$	800	$	(536	)	$	4,350
Allowance for sales returns, discounts and allowances	2,191		2,591		(2,520		)	2,262
Allowance for obsolescence	1,780		339		(1,411		)	708

For the nine months ended September 30, 2017
Allowance for doubtful accounts	$	4,842	$	2,600	$	(482	)	$	6,960
Allowance for sales returns, discounts and allowances	4,894		5,794		(7,209		)	3,479
Allowance for obsolescence	828		953		(792		)	989

For the nine months ended September 30, 2016
Allowance for doubtful accounts	$	3,270	$	1,635	$	(555	)	$	4,350
Allowance for sales returns, discounts and allowances	1,262		5,917		(4,917		)	2,262
Allowance for obsolescence	397		1,910		(1,599		)	708

Significant Accounting Policies (Policies)	9 Months Ended
Significant Accounting Policies (Policies)	Sep. 30, 2017
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 three and nine months ended September 30, 2017 and 2016, are not necessarily indicative of the results that may be expected for the fiscal year. The balance sheet at December 31, 2016, 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, 2016, included in the Company's Annual Report on Form 10-K for the year ended December 31, 2016, filed with the SEC on March 1, 2017.
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.
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 and Notes Receivable	Accounts Receivable Accounts receivable represent amounts due from customers for which revenue has been recognized. Generally, the Company does not require collateral or any other security to support its receivables. The 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. Notes Receivable The Company's notes receivable as of September 30, 2017 are included in Other Assets and were valued taking into consideration cost of the market participant inputs, market conditions, liquidity, operating results and other qualitative factors.
Inventories	Inventories Inventories are valued at the lower of cost or market, using the first-in, first-out ("FIFO") method. Inventory is tracked through Raw Material, WIP, and Finished Good stages as the product progresses through various production steps and stocking locations. Labor and overhead costs are absorbed through the various production processes until the work order closes. Historical yields and normal capacities are utilized in the calculation of production overhead rates. Reserves for inventory obsolescence are utilized to account for slow-moving inventory as well as inventory no longer needed due to diminished market demand.
Revenue Recognition	Revenue Recognition The Company sells its products through a combination of a direct sales force, independent stocking distributors and third party representatives in the U.S., and independent distributors in international markets. The Company recognizes revenue when title to the goods and risk of loss transfers to customers, provided there are no material remaining performance obligations required of the Company or any matters of customer acceptance. The Company records revenues from sales to our independent stocking distributors at the time the product is shipped to the distributor. Our stocking distributors, who sell the products to their customers or sub-distributors, contractually take title to the products and assume all risks of ownership at the time of shipment. Our stocking distributors are obligated to pay us the contractually agreed upon invoice price within specified terms regardless of when, if ever, they sell the products. Our customers and stocking distributors do not have any contractual rights of return or exchange other than for defective product or shipping error; however, in limited situations, we do accept returns or exchanges at our discretion. Some of the Company’s sales to Government accounts, including the Department of Veterans Affairs, were historically made through a distributor relationship with AvKARE Inc., which is a veteran-owned General Services Administration Federal Supply Schedule contractor. The Company's agreement with AvKARE expired on June 30, 2017. Upon expiration of the agreement, the Company had an obligation to repurchase AvKARE’s remaining inventory within 90 days in accordance with the terms of the agreement. As of September 30, 2017, the Company has satisfied the repurchase obligation. A portion of the Company’s revenue is generated from consignment inventory maintained at hospitals or physicians' offices. Significant terms of our consignment agreements state that title to the inventory remains with the Company until the product, which has been segregated by the consignee, is withdrawn and therefore purchased by the consignee. The consignee accepts all risk of loss and full responsibility for any product in the consignment inventory that may be opened, lost, stolen or damaged. The Company recognizes revenue when we are notified that product has been used or implanted. We make estimates of potential future sales returns, discounts and allowances related to current period product revenue and these are reflected as a reduction of revenue in the same period revenue is recognized. We base our estimate for sales returns, discounts and allowances on historical sales and product return information, including historical experience and actual and projected trend information as well as projected sales returns based on estimated usage and contractual arrangements. These estimates have historically been materially consistent with actual results. We continually evaluate new and current customers, including our stocking distributors, for collectability based on various factors including past history with the customer, evaluation of their creditworthiness, and current economic conditions. We only record revenue when collectability is reasonably assured.
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, after the measurement period has expired, 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 as patents in progress until a patent is obtained. When a patent is issued, the costs are 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. If a patent is not obtained, costs are expensed. Patents 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 FIFO basis.
Recently Issued and Adopted Accounting Standards	Recently Issued and Adopted Accounting Standards The Company considers the applicability and impact of all 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. We are in the process of completing our procedures for adoption of the standard. We have identified one revenue stream from our contracts with customers: product sales. Based upon the results of our work to date we have elected the modified retrospective method as we currently do not expect the application of the new standard to these contracts to have a material impact to our consolidated financial statements either at initial implementation or on an ongoing basis. 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 2016-09, "Improvements to Employee Share-Based Payment Accounting," which simplifies several aspects of the accounting for share-based payment award transactions including (a) income tax consequences; (b) classification of awards as either debt or equity liabilities; and (c) classification on the statement of cash flows. The amendments are effective for public business entities for annual periods beginning after December 15, 2016, and interim periods within those annual periods. The Company has adopted this ASU as of January 1, 2017. The primary amendment impacting the Company's financial statements is the requirement for excess tax benefits or shortfalls on the exercise of share-based compensation awards to be presented in income tax expense in the Consolidated Statements of Income during the period the award is exercised as opposed to being recorded in additional paid-in capital on the Consolidated Balance Sheets. The excess tax benefit or shortfall is calculated as the difference between the fair value of the award on the date of exercise and the fair value of the award used to measure the expense to be recognized over the service period. Changes are required to be applied prospectively to all excess tax benefits and deficiencies resulting from the exercise of awards after the date of adoption. The ASU requires a "modified retrospective" approach application for excess tax benefits that were not previously recognized in situations where the tax deduction did not reduce current taxes payable. For the three-month period ended September 30, 2017, the Company recorded an income tax benefit of $1,510,000 related to the excess tax benefit of exercised awards during the period, that would have been recorded in additional paid-in capital during prior years. For the nine months ended September 30, 2017, the Company recorded an income tax benefit of $4,205,000 related to the excess tax benefit of exercised awards during the period, that would have been recorded in additional paid-in capital during prior years. As the end result is dependent on the future value of the Company's stock as well as the timing of employee exercises, the amount of future impact cannot be quantified at this time. The Company has elected to continue to estimate forfeitures expected to occur to determine the share-based compensation expense. In August 2016, the FASB issued ASU No. 2016-15, “Statement of Cash Flows (Topic 230) Classification of Certain Cash Receipts and Cash Payments.” The update addresses eight specific cash flow issues with the objective of reducing the existing diversity in practice. This ASU is effective for public business entities for fiscal years beginning after December 15, 2017 and for interim periods within those fiscal years. The amendments in this update may be applied retrospectively or prospectively and early adoption is permitted. The Company does not believe that this guidance will have a material impact on its consolidated financial statements. In January 2017, the FASB issued ASU No. 2017-04,"Intangibles-Goodwill and Other (Topic 350) Simplifying the Test for Goodwill Impairment." The update eliminates Step 2 from the goodwill impairment test. This ASU is effective for fiscal years beginning after December 15, 2019. The amendments in this update should be applied on a prospective basis. The Company is currently assessing the impact the adoption of ASU 2017-04 will have on its consolidated financial statements. All other ASUs issued and not yet effective for the nine months ended September 30, 2017, 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.
Net Income Per Share	Net Income Per Share Basic net income 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.

Divestiture of Stability Biologics, LLC (Tables)

9 Months Ended

Sep. 30, 2017

Discontinued Operations and Disposal Groups [Abstract]

Summary of Assets Transferred and Consideration Received

A summary of the assets divested and consideration received follows (in thousands):



	September 30,
	2017
Assets divested
Trade receivables	$	2,405
Inventories	2,800
Prepaid expenses and other assets	1,610
Goodwill (a)	309
Intangible assets	11,857
Property and equipment, net of accumulated depreciation	1,446
Total assets divested	20,427

Liabilities divested
Accounts payable and accrued liabilities	3,487
Total liabilities divested	3,487

Total net assets divested	$	16,940

Transaction costs	$	400

Consideration received
Non-trade receivable	150
Note receivable	3,190
Intangible assets	630
Extinguishment of earn out liability	17,644
Total consideration received	$	21,614

Gain on sale	$	4,274

- Definition

Tabular disclosure of information related to a disposal group. Includes, but is not limited to, a discontinued operation, disposal classified as held-for-sale or disposed of by means other than sale or disposal of an individually significant component.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 20
-Section 45
-Paragraph 11
-URI http://asc.fasb.org/extlink&oid=65878427&loc=SL51721533-107759

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 20
-Section 50
-Paragraph 4B
-URI http://asc.fasb.org/extlink&oid=64827811&loc=SL51721665-107760

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 20
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=64827811&loc=d3e1474-107760

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 20
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=64827811&loc=d3e1361-107760

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 20
-Section 50
-Paragraph 7
-URI http://asc.fasb.org/extlink&oid=64827811&loc=SL51721683-107760

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 360
-SubTopic 10
-Section 50
-Paragraph 3A
-URI http://asc.fasb.org/extlink&oid=84176398&loc=SL51724579-110230

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 20
-Section 50
-Paragraph 5C
-URI http://asc.fasb.org/extlink&oid=64827811&loc=SL51721675-107760

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 20
-Section 50
-Paragraph 4A
-URI http://asc.fasb.org/extlink&oid=64827811&loc=SL51721663-107760

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 360
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=84176398&loc=d3e2941-110230

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 20
-Section 50
-Paragraph 5B
-URI http://asc.fasb.org/extlink&oid=64827811&loc=SL51721673-107760

Reference 11: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 20
-Section 50
-Paragraph 3A
-URI http://asc.fasb.org/extlink&oid=64827811&loc=SL51721659-107760

Reference 12: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 20
-Section 50
-Paragraph 5A
-URI http://asc.fasb.org/extlink&oid=64827811&loc=SL51721671-107760

Reference 13: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 20
-Section 50
-Paragraph 5D
-URI http://asc.fasb.org/extlink&oid=64827811&loc=SL51721677-107760

+ Details

Inventories (Tables)

9 Months Ended

Sep. 30, 2017

Inventory Disclosure [Abstract]

Inventory

Inventories consisted of the following items as of September 30, 2017, and December 31, 2016 (in thousands):



	September 30, 2017			December 31, 2016
Raw materials	$	690		$	1,148
Work in process	5,164			6,677
Finished goods	5,554			10,817
Inventory, gross	11,408			18,642
Reserve for obsolescence	(989		)	(828		)
Inventory, net	$	10,419		$	17,814

Property and Equipment (Tables)

9 Months Ended

Sep. 30, 2017

Property, Plant and Equipment [Abstract]

Summary of Property and Equipment

Property and equipment consisted of the following as of September 30, 2017, and December 31, 2016 (in thousands):



	September 30, 2017			December 31, 2016
Leasehold improvements	$	3,116		$	3,274
Lab and clean room equipment	9,316			8,666
Furniture and office equipment	9,203			7,051
Construction in progress	2,583			3,300
Property and equipment, gross	24,218			22,291
Less accumulated depreciation	(10,954		)	(8,505		)
Property and equipment, net	$	13,264		$	13,786

Intangible Assets and Royalty Agreement (Tables)

9 Months Ended

Sep. 30, 2017

Goodwill and Intangible Assets Disclosure [Abstract]

Intangible Assets Activity Summary

Intangible assets are summarized as follows (in thousands):



	Weighted Average Amortization Lives	September 30, 2017			December 31, 2016
		Cost			Cost
Licenses (a) (b) (c) (d)	7 years	$	1,009		$	1,399
Patents & Know-How (b) (c) (d)	19 years	8,712			14,839
Customer & Supplier Relationships (b) (d)	13 years	4,271			9,091
Tradenames & Trademarks (d)	indefinite	1,008			1,458
Non-compete agreements	4 years	120			830
In Process Research & Development (b)	various	25			25
Patents in Process (c)	various	1,742			2,618
Total		16,887			30,260
Less Accumulated amortization and impairment charges		(6,510		)	(6,992		)
Net		$	10,377		$	23,268

(a)


(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.

(c)


(d)	On January 13, 2016, the Company acquired Stability, Inc. As a result, the Company recorded intangible assets for Patents & Know-How of $6,790,000, Customer & Supplier Relationships of $5,330,000, Non-compete agreements of $830,000, Tradenames & Trademarks of $450,000 and Licenses of $390,000.

Estimated Future Amortization Expense for Intangible Assets

Expected future amortization of intangible assets as of September 30, 2017, is as follows (in thousands):



Year ending December 31,	Estimated Amortization Expense
2017 (a)	$	237
2018	950
2019	950
2020	950
2021	942
Thereafter	5,340
	$	9,369

(a) Estimated amortization expense for the year ending December 31, 2017, includes only amortization to be recorded after September 30, 2017.

Net Income Per Share (Tables)

9 Months Ended

Sep. 30, 2017

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 per share (in thousands except share data):



	Three Months Ended September 30,				Nine Months Ended September 30,
	2017		2016		2017		2016
Net income	$	17,457	$	3,321	$	29,853	$	6,493
Denominator for basic earnings per share - weighted average shares	106,871,436		105,991,990		106,469,278		105,927,890
Effect of dilutive securities: Stock options and restricted stock outstanding(a)	10,630,489		6,369,189		10,077,728		6,265,811
Denominator for diluted earnings per share - weighted average shares adjusted for dilutive securities	117,501,925		112,361,179		116,547,006		112,193,701
Income per common share - basic	$	0.16	$	0.03	$	0.28	$	0.06
Income per common share - diluted	$	0.15	$	0.03	$	0.26	$	0.06

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



	Three Months Ended September 30,		Nine Months Ended September 30,
	2017	2016	2017	2016
Outstanding stock options	7,916,564	5,704,112	7,985,521	5,767,469
Restricted stock awards	2,713,925	665,077	2,092,207	498,342
	10,630,489	6,369,189	10,077,728	6,265,811

Equity (Tables)

9 Months Ended

Sep. 30, 2017

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, 2017	12,552,608		$	3.61
Granted	—		$	—
Exercised	(2,417,769	)	$	4.80
Unvested options forfeited	(25,839	)	$	6.54
Vested options expired	(68,991	)	$	5.79
Outstanding at September 30, 2017	10,040,009		$	3.30	4.60	$	86,178,050
Vested at September 30, 2017	9,976,636		$	3.26	4.59	$	86,042,771
Vested or expected to vest at September 30, 2017 (a)	10,043,166		$	3.30	4.60	$	86,176,954


(a)	Includes forfeiture-adjusted unvested shares.

Stock Options Outstanding and Exercisable

Following is a summary of stock options outstanding and exercisable at September 30, 2017:



	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
$0.70 - $1.09	1,094,429	2.8	$	0.91	1,094,429	$	0.91
$1.10 - $1.65	4,290,379	3.7	1.30		4,290,379	1.30
$2.45 - $3.75	854,001	5.0	2.77		854,001	2.77
$4.19 - $6.38	1,989,205	5.7	5.36		1,989,205	5.36
$6.49 - $9.78	1,713,328	6.4	7.30		1,683,625	7.26
$9.90 - $10.99	98,667	7.2	10.38		64,997	10.38
	10,040,009	4.6	$	3.30	9,976,636	$	3.26

Restricted Stock Awards Roll Forward



	Number of Shares		Weighted-Average Grant Date Fair Value
Unvested at January 1, 2017	3,828,445		$8.53
Granted	3,041,078		9.23
Vested	(1,457,449	)	8.42
Forfeited	(283,198	)	8.67
Unvested at September 30, 2017	5,128,876		8.97

Allocation of Share-based Compensation

For the three and nine months ended September 30, 2017 and 2016, the Company recognized share-based compensation expense as follows (in thousands):



	Three Months Ended September 30,				Nine Months Ended September 30,
	2017		2016		2017		2016
Cost of sales	$	119	$	109	$	393	$	300
Research and development	148		159		425		520
Selling, general and administrative	5,039		4,433		14,414		13,006
	$	5,306	$	4,701	$	15,232	$	13,826

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

9 Months Ended

Sep. 30, 2017

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):



	Nine Months Ended September 30,
	2017		2016
Cash paid for interest	$	119	$	118
Income taxes paid	8,289		637
Share issuance of 441,009 shares in connection with acquisition	—		3,346
Share issuances of 17,539 and 43,344 shares in exchange for services performed, respectively	166		346

Contractual Commitments and Contingencies (Tables)

9 Months Ended

Sep. 30, 2017

Commitments and Contingencies Disclosure [Abstract]

Estimated Annual Lease, Royalty and Employment Agreement Expenses

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



Twelve months ended September 30,
2018	$	2,634
2019	2,826
2020	1,707
2021	1,428
2022	1,470
Thereafter	495
	$	10,560

Basis of Presentation (Details)	9 Months Ended
Basis of Presentation (Details)	Sep. 30, 2017 segment
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Number of business segments (segment)	1

Significant Accounting Policies (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Finite-Lived Intangible Assets [Line Items]
Effective income tax rate reconciliation, excess tax benefit	$ 1,702	$ 1,510	$ 5,618	$ 4,205
Patents
Finite-Lived Intangible Assets [Line Items]
Intangible assets, net of accumulated amortization			$ 144	$ 515

Divestiture of Stability Biologics, LLC - Summary of Assets Transferred and Consideration Received (Details) - USD ($) $ in Thousands		3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016	Dec. 31, 2016
Consideration received
Gain on sale		$ 4,274	$ 0	$ 4,274	$ 0
Goodwill	$ 19,894	19,894		19,894		$ 20,203
Stability Biologics, LLC \| Disposal Group, Disposed of by Sale, Not Discontinued Operations
Assets divested
Trade receivables	2,405	2,405		2,405
Inventories	2,800	2,800		2,800
Prepaid expenses and other assets	1,610	1,610		1,610
Goodwill	309	309		309
Intangible assets	11,857	11,857		11,857
Property and equipment, net of accumulated depreciation	1,446	1,446		1,446
Total assets divested	20,427	20,427		20,427
Liabilities divested
Accounts payable and accrued liabilities	3,487	3,487		3,487
Total liabilities divested	3,487	3,487		3,487
Total net assets divested	16,940	$ 16,940		$ 16,940
Transaction costs	400
Consideration received
Non-trade receivable	150
Note receivable	3,190
Intangible assets	630
Extinguishment of earn out liability	17,644
Total consideration received	21,614
Gain on sale	$ 4,274

Divestiture of Stability Biologics, LLC - Narrative (Details) - USD ($) $ in Thousands		3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Tax benefit		$ 4,384	$ (1,295)	$ 3,675	$ (2,984)
Gain on divestiture		$ 4,274	$ 0	$ 4,274	$ 0
Stability Biologics, LLC \| Disposal Group, Disposed of by Sale, Not Discontinued Operations
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Tax benefit	$ 5,737
Gain on divestiture	4,274
Total gain on disposition	$ 10,011

Inventories (Details) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Inventory Disclosure [Abstract]
Raw materials	$ 690	$ 1,148
Work in process	5,164	6,677
Finished goods	5,554	10,817
Inventory, gross	11,408	18,642
Reserve for obsolescence	(989)	(828)
Inventory, net	$ 10,419	$ 17,814

Property and Equipment - Summary of Property and Equipment (Details) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 24,218	$ 22,291
Less accumulated depreciation	(10,954)	(8,505)
Property and equipment, net	13,264	13,786
Leasehold improvements
Property, Plant and Equipment [Line Items]
Property and equipment, gross	3,116	3,274
Lab and clean room equipment
Property, Plant and Equipment [Line Items]
Property and equipment, gross	9,316	8,666
Furniture and office equipment
Property, Plant and Equipment [Line Items]
Property and equipment, gross	9,203	7,051
Construction in progress
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 2,583	$ 3,300

Property and Equipment - Narrative (Details) - USD ($)	3 Months Ended		9 Months Ended
Property and Equipment - Narrative (Details) - USD ($)	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016	Dec. 31, 2016
Property, Plant and Equipment [Line Items]
Property and equipment, net of accumulated depreciation	$ 13,264,000		$ 13,264,000		$ 13,786,000
Other liabilities	1,076,000		1,076,000		$ 821,000
Depreciation	1,013,000	$ 838,000	3,074,000	$ 2,394,000
Eliminated accumulated depreciation expense	626,000		626,000
Property plant and equipment sold in divestiture	$ 2,000,000		$ 2,000,000
Capital Lease Obligations
Property, Plant and Equipment [Line Items]
Capital leases interest rate percentage	12.00%		12.00%
Assets Held under Capital Leases
Property, Plant and Equipment [Line Items]
Property and equipment, net of accumulated depreciation	$ 427,000		$ 427,000
Other liabilities	8,600		8,600
Leasehold Improvements Paid by Others
Property, Plant and Equipment [Line Items]
Property and equipment, net of accumulated depreciation	$ 1,000,000		$ 1,000,000

Intangible Assets and Royalty Agreement - Summary of Intangible Assets (Details) - USD ($)		9 Months Ended
	Jan. 29, 2007	Sep. 30, 2017	Dec. 31, 2016	Jan. 13, 2016	Jan. 05, 2011
Finite-Lived Intangible Assets [Line Items]
Total		$ 16,887,000	$ 30,260,000
Less Accumulated amortization and impairment charges		(6,510,000)	(6,992,000)
Net		10,377,000	23,268,000
Tradenames & trademarks
Finite-Lived Intangible Assets [Line Items]
Gross carrying value, indefinite lived		1,008,000	1,458,000
Tradenames & trademarks \| Stability Biologics, LLC
Finite-Lived Intangible Assets [Line Items]
Gross carrying value, indefinite lived				$ 450,000
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		$ 1,742,000	2,618,000
Licenses
Finite-Lived Intangible Assets [Line Items]
Weighted average amortization lives		7 years
Gross carrying value		$ 1,009,000	1,399,000
Licenses \| Stability Biologics, LLC
Finite-Lived Intangible Assets [Line Items]
Gross carrying value				390,000
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	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		19 years
Gross carrying value		$ 8,712,000	14,839,000
Patents and know-how \| Stability Biologics, LLC
Finite-Lived Intangible Assets [Line Items]
Gross carrying value				6,790,000
Patents and know-how \| Surgical Biologics, LLC
Finite-Lived Intangible Assets [Line Items]
Gross carrying value					7,690,000
Finite lived intangible assets		$ 663,000
Customer & supplier relationships
Finite-Lived Intangible Assets [Line Items]
Weighted average amortization lives		13 years
Gross carrying value		$ 4,271,000	9,091,000
Customer & supplier relationships \| Stability Biologics, LLC
Finite-Lived Intangible Assets [Line Items]
Gross carrying value				5,330,000
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		4 years
Gross carrying value		$ 120,000	$ 830,000
Non compete agreements \| Stability Biologics, LLC
Finite-Lived Intangible Assets [Line Items]
Gross carrying value				$ 830,000

Intangible Assets and Royalty Agreement - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016	Dec. 31, 2016
Finite-Lived Intangible Assets [Line Items]
Amortization of intangible assets	$ 418	$ 631	$ 1,451	$ 1,889
Eliminated accumulated depreciation expense	626		626
Stability Biologics, LLC
Finite-Lived Intangible Assets [Line Items]
Eliminated accumulated depreciation expense	1,932		1,932
Distribution Agreement
Finite-Lived Intangible Assets [Line Items]
Intangible assets acquired	510		510
Non compete agreements
Finite-Lived Intangible Assets [Line Items]
Intangible assets acquired	$ 120		$ 120		$ 830

Intangible Assets and Royalty Agreement - Estimated Future Amortization Expense for Intangible Assets (Details) $ in Thousands	Sep. 30, 2017 USD ($)
Estimated future amortization expense [Abstract]
2017	$ 237
2018	950
2019	950
2020	950
2021	942
Thereafter	5,340
Net book value	$ 9,369

Credit Facility (Details) - Credit Agreement - Revolving Credit Facility - USD ($)	Oct. 12, 2015	Sep. 30, 2017
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
Outstanding line of credit		$ 0
London Interbank Offered Rate (LIBOR) \| Minimum
Debt Instrument [Line Items]
Basis spread on variable rate	1.50%
London Interbank Offered Rate (LIBOR) \| Maximum
Debt Instrument [Line Items]
Basis spread on variable rate	2.25%

Net Income Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Computation of basic and diluted net loss per share [Abstract]
Net income	$ 17,457	$ 3,321	$ 29,853	$ 6,493
Denominator for basic earnings per share - weighted average shares (in shares)	106,871,436	105,991,990	106,469,278	105,927,890
Effect of dilutive securities: Stock options and restricted stock outstanding (in shares)	10,630,489	6,369,189	10,077,728	6,265,811
Denominator for diluted earnings per share - weighted average shares adjusted for dilutive securities (in shares)	117,501,925	112,361,179	116,547,006	112,193,701
Income per common share - basic (in dollars per share)	$ 0.16	$ 0.03	$ 0.28	$ 0.06
Income per common share - diluted (in dollars per share)	$ 0.15	$ 0.03	$ 0.26	$ 0.06
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share (in shares)	10,630,489	6,369,189	10,077,728	6,265,811
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)	7,916,564	5,704,112	7,985,521	5,767,469
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)	2,713,925	665,077	2,092,207	498,342

Equity - Stock Incentive Plans (Details)	9 Months Ended
Equity - Stock Incentive Plans (Details)	Sep. 30, 2017 USD ($) plan $ / shares shares	Sep. 30, 2016 shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of share-based compensation plans (plan) \| plan	4
Number of shares [Roll forward]
Outstanding, beginning of period (in shares) \| shares	12,552,608
Granted (in shares) \| shares	0	0
Exercised (in shares) \| shares	(2,417,769)
Unvested options forfeited (in shares) \| shares	(25,839)
Vested options expired (in shares) \| shares	(68,991)
Outstanding, end of period (in shares) \| shares	10,040,009
Vested at end of period (in shares) \| shares	9,976,636
Exercisable options, vested and expected to vest (in shares) \| shares	10,043,166
Weighted-Average Exercise Price [Roll forward]
Outstanding, weighted average exercise price, beginning of period (in dollars per share)	$ 3.61
Granted, weighted average exercise price (in dollars per share)	0.00
Exercised, weighted average exercise price (in dollars per share)	4.80
Unvested options forfeited, weighted-average exercise price (in dollars per share)	6.54
Vested options expired, weighted-average exercise price (in dollars per share)	5.79
Outstanding, weighted average exercise price, end of period (in dollars per share)	3.30
Vested at end of period, weighted average exercise price (in dollars per share)	3.26
Vested and expected to vest, weighted average exercise price (in dollars per share)	$ 3.30
Stock options, additional disclosures [Abstract]
Outstanding Options, weighted average remaining contractual term (in years)	4 years 7 months 6 days
Vested at end of period, weighted average remaining contractual term (in years)	4 years 7 months 2 days
Vested and expected to vest, weighted average remaining contractual term (in years)	4 years 7 months 6 days
Outstanding, aggregate intrinsic value \| $	$ 86,178,050
Vested at end of period, aggregate intrinsic value \| $	86,042,771
Vested or expected to vest, aggregate intrinsic value \| $	86,176,954
Exercised options, intrinsic value \| $	$ 17,994,945
Number of outstanding options (in shares) \| shares	10,040,009
Outstanding Options, weighted average remaining contractual term (in years)	4 years 7 months 6 days
Outstanding Options, weighted average exercise price (in dollars per share)	$ 3.30
Number of exercisable options (in shares) \| shares	9,976,636
Exercisable Options, weighted average exercise price (in dollars per share)	$ 3.26
Total unrecognized compensation expense \| $	$ 98,900
$0.70 - $1.09
Stock options, additional disclosures [Abstract]
Outstanding Options, weighted average remaining contractual term (in years)	2 years 9 months 18 days
Exercise Price Range, lower range limit (in dollars per share)	$ 0.70
Exercise Price Range, upper range limit (in dollars per share)	$ 1.09
Number of outstanding options (in shares) \| shares	1,094,429
Outstanding Options, weighted average remaining contractual term (in years)	2 years 9 months 18 days
Outstanding Options, weighted average exercise price (in dollars per share)	$ 0.91
Number of exercisable options (in shares) \| shares	1,094,429
Exercisable Options, weighted average exercise price (in dollars per share)	$ 0.91
$1.10 - $1.65
Stock options, additional disclosures [Abstract]
Outstanding Options, weighted average remaining contractual term (in years)	3 years 8 months 12 days
Exercise Price Range, lower range limit (in dollars per share)	$ 1.10
Exercise Price Range, upper range limit (in dollars per share)	$ 1.65
Number of outstanding options (in shares) \| shares	4,290,379
Outstanding Options, weighted average remaining contractual term (in years)	3 years 8 months 12 days
Outstanding Options, weighted average exercise price (in dollars per share)	$ 1.30
Number of exercisable options (in shares) \| shares	4,290,379
Exercisable Options, weighted average exercise price (in dollars per share)	$ 1.30
$2.45 - $3.75
Stock options, additional disclosures [Abstract]
Outstanding Options, weighted average remaining contractual term (in years)	5 years
Exercise Price Range, lower range limit (in dollars per share)	$ 2.45
Exercise Price Range, upper range limit (in dollars per share)	$ 3.75
Number of outstanding options (in shares) \| shares	854,001
Outstanding Options, weighted average remaining contractual term (in years)	5 years
Outstanding Options, weighted average exercise price (in dollars per share)	$ 2.77
Number of exercisable options (in shares) \| shares	854,001
Exercisable Options, weighted average exercise price (in dollars per share)	$ 2.77
$4.19 - $6.38
Stock options, additional disclosures [Abstract]
Outstanding Options, weighted average remaining contractual term (in years)	5 years 8 months 12 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	1,989,205
Outstanding Options, weighted average remaining contractual term (in years)	5 years 8 months 12 days
Outstanding Options, weighted average exercise price (in dollars per share)	$ 5.36
Number of exercisable options (in shares) \| shares	1,989,205
Exercisable Options, weighted average exercise price (in dollars per share)	$ 5.36
$6.49 - $9.78
Stock options, additional disclosures [Abstract]
Outstanding Options, weighted average remaining contractual term (in years)	6 years 4 months 24 days
Exercise Price Range, lower range limit (in dollars per share)	$ 6.49
Exercise Price Range, upper range limit (in dollars per share)	$ 9.78
Number of outstanding options (in shares) \| shares	1,713,328
Outstanding Options, weighted average remaining contractual term (in years)	6 years 4 months 24 days
Outstanding Options, weighted average exercise price (in dollars per share)	$ 7.30
Number of exercisable options (in shares) \| shares	1,683,625
Exercisable Options, weighted average exercise price (in dollars per share)	$ 7.26
$9.90 - $10.99
Stock options, additional disclosures [Abstract]
Outstanding Options, weighted average remaining contractual term (in years)	7 years 2 months 12 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	98,667
Outstanding Options, weighted average remaining contractual term (in years)	7 years 2 months 12 days
Outstanding Options, weighted average exercise price (in dollars per share)	$ 10.38
Number of exercisable options (in shares) \| shares	64,997
Exercisable Options, weighted average exercise price (in dollars per share)	$ 10.38

Equity - Restricted Stock Awards (Details) - USD ($)	3 Months Ended		9 Months Ended
Equity - Restricted Stock Awards (Details) - USD ($)	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Dec. 31, 2016
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares issued for services performed (in shares)			17,539	43,344
Shares issued for services performed			$ 166,000	$ 346,000
Share-based Compensation [Abstract]
Share-based compensation expense	$ 5,306,000	$ 4,701,000	15,232,000	13,826,000
Cost of sales
Share-based Compensation [Abstract]
Share-based compensation expense	119,000	109,000	393,000	300,000
Research and development
Share-based Compensation [Abstract]
Share-based compensation expense	148,000	159,000	425,000	520,000
Selling, general and administrative
Share-based Compensation [Abstract]
Share-based compensation expense	$ 5,039,000	$ 4,433,000	$ 14,414,000	$ 13,006,000
Restricted stock awards
Number of Shares
Unvested, Beginning Balance (in shares)			3,828,445
Granted (in shares)			3,041,078
Vested (in shares)			(1,457,449)
Forfeited (in shares)			(283,198)
Unvested, Ending Balance (in shares)	5,128,876		5,128,876
Weighted- Average Grant Date Fair Value
Unvested, Beginning Balance (in dollars per share)	$ 8.97		$ 8.97		$ 8.97	$ 8.53
Granted (in dollars per share)			9.23
Vested (in dollars per share)			8.42
Forfeited (in dollars per share)			8.67
Unvested, Ending Balance (in dollars per share)	$ 8.97		$ 8.97
Total unrecognized stock-based compensation related to time-based, nonvested restricted stock					$ 32,910,620
Expenses expected to be recognized over a weighted-average period (in years)			2 years 15 days
Common Stock \| Consultant
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares issued for services performed (in shares)			17,539
Shares issued for services performed			$ 166,000

Equity - Treasury Stock (Details) - USD ($)	9 Months Ended
Equity - Treasury Stock (Details) - USD ($)	Sep. 30, 2017	Oct. 26, 2017	May 12, 2014
Equity, Class of Treasury Stock [Line Items]
Authorized share amount for repurchase (up to)			$ 10,000,000
Shares repurchased, value	$ 43,923,000
Brokerage commissions	109,000
Remaining authorizations under the repurchase program	$ 13,000
Shares reissued from the treasury (in shares)	2,684,270
Shares reissued from the treasury, value	$ 24,801,000
Treasury Stock
Equity, Class of Treasury Stock [Line Items]
Share repurchase (in shares)	3,644,327
Shares repurchased for tax withholding (in shares)	358,861
Subsequent Event
Equity, Class of Treasury Stock [Line Items]
Authorized share amount for repurchase (up to)		$ 120,000,000

Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended		12 Months Ended
Income Taxes (Details) - USD ($) $ in Thousands	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016	Dec. 31, 2017
Income Tax Contingency [Line Items]
Effective tax rate	(33.50%)		(14.00%)
Effective income tax rate reconciliation, excess tax benefit	$ 1,702	$ 1,510	$ 5,618	$ 4,205
Forecast
Income Tax Contingency [Line Items]
Effective tax rate					35.10%
Stability Biologics, LLC
Income Tax Contingency [Line Items]
Effective income tax rate reconciliation, discrete items related to divestiture	$ 5,737		$ 5,737
Effective tax rate, related to divestiture	15.40%	28.10%	9.40%	31.50%

Supplemental Disclosure of Cash Flow and Non-Cash Investing and Financing Activities (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016
Supplemental disclosure of cash flow and non-cash investing and financing activities [Abstract]
Cash paid for interest	$ 119	$ 118
Income taxes paid	8,289	637
Share issuance of 441,009 shares in connection with acquisition	0	3,346
Share issuances of 17,539 and 43,344 shares in exchange for services performed, respectively	$ 166	$ 346
Shares issued in connection with business combination (in shares)		441,009
Shares issued for services performed (in shares)	17,539	43,344

Contractual Commitments and Contingencies - Narrative (Details) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017 USD ($)	Sep. 30, 2016 USD ($)	Sep. 30, 2017 USD ($)	Sep. 30, 2016 USD ($)	Jun. 30, 2017 claim	Aug. 18, 2015 claim	Jul. 10, 2015 claim	Jun. 29, 2015 claim
Loss Contingencies [Line Items]
Lease expiration period			6 years
Rent expense \| $	$ 403	$ 453	$ 1,244	$ 1,311
Pending Litigation
Loss Contingencies [Line Items]
Number of patent challenged grounds (claim)					4
Pending Litigation \| Bone Bank Action
Loss Contingencies [Line Items]
Number of patent challenged grounds (claim)							5	7
Opinion allowing a review of patent (claim)							2
Pending Litigation \| Liventa Action, 701 Patent
Loss Contingencies [Line Items]
Number of patent challenged grounds (claim)						6
Pending Litigation \| Liventa Action, 437 Patent
Loss Contingencies [Line Items]
Number of patent challenged grounds (claim)						7
Opinion allowing a review of patent (claim)						1
Standby Letters of Credit
Loss Contingencies [Line Items]
Standby letters of credit \| $	$ 52		$ 52

Contractual Commitments and Contingencies - Estimated Annual Lease Payments (Details) $ in Thousands	Sep. 30, 2017 USD ($)
Estimated annual lease, royalty, and employment agreement expenses [Abstract]
2018	$ 2,634
2019	2,826
2020	1,707
2021	1,428
2022	1,470
Thereafter	495
Total Contractual commitments	$ 10,560

Schedule II - Valuation and Qualifying Accounts (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Allowance for doubtful accounts
Movement in Valuation Allowances and Reserves [Roll Forward]
Balance at Beginning of Period	$ 7,219	$ 4,086	$ 4,842	$ 3,270
Additions charged to Expense or Revenue	150	800	2,600	1,635
Deductions and write-offs	(409)	(536)	(482)	(555)
Balance at End of Period	6,960	4,350	6,960	4,350
Allowance for sales returns, discounts and allowances
Movement in Valuation Allowances and Reserves [Roll Forward]
Balance at Beginning of Period	3,461	2,191	4,894	1,262
Additions charged to Expense or Revenue	1,288	2,591	5,794	5,917
Deductions and write-offs	(1,270)	(2,520)	(7,209)	(4,917)
Balance at End of Period	3,479	2,262	3,479	2,262
Allowance for obsolescence
Movement in Valuation Allowances and Reserves [Roll Forward]
Balance at Beginning of Period	1,113	1,780	828	397
Additions charged to Expense or Revenue	212	339	953	1,910
Deductions and write-offs	(336)	(1,411)	(792)	(1,599)
Balance at End of Period	$ 989	$ 708	$ 989	$ 708