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Revenue
 9 Months Ended
Sep. 30, 2021
Segment Reporting [Abstract]  
Revenue Revenue
Disaggregation of Revenue by Product
MiMedx has two primary classes of products: (1) Advanced Wound Care, or Section 361, products, consisting of its tissue and cord sheet allograft products, and (2) Section 351 products, consisting of the Company’s micronized and particulate products, which, prior to the end of Enforcement Discretion were used to treat a variety of patient needs, including both advanced wound care and musculoskeletal applications. Advanced Wound Care is further disaggregated between the Company’s Tissue/Other and Cord products.
Below is a summary of net sales by each class of product (in thousands):
Three Months Ended September 30,Nine Months Ended September 30,
2021202020212020
Advanced Wound Care
     Tissue/Other$56,035 $50,842 $156,012 $137,975 
     Cord6,247 4,227 17,093 11,387 
Total Advanced Wound Care62,282 55,069 173,105 149,362 
Section 351489 8,195 17,187 23,084 
Other(1)
303 1,039 914 7,240 
Total$63,074 $64,303 $191,206 $179,686 
(1) “Other” represents cash collections on the Remaining Contracts. Remaining Contracts are those contracts for which performance obligations have been satisfied as of September 30, 2019, but for which the criteria required for revenue recognition had not been met and would not be met until the ultimate collection of cash. For all practicable purposes, the Company is not able to allocate these revenues to different product groups.
Disaggregation of Revenue by Customer
MiMedx has two primary distribution channels: (1) direct to customers (healthcare professionals and/or facilities) (“Direct Customers”), and (2) sales through distributors (“Distributors”).
Below is a summary of net sales by each customer type (in thousands):
Three Months Ended September 30,Nine Months Ended September 30,
2021202020212020
Direct Customers$61,087 $62,409 $184,706 $175,060 
Distributors1,987 1,894 6,500 4,626 
Total$63,074 $64,303 $191,206 $179,686 
The Company did not have significant foreign operations or a single external customer from which 10% or more of revenues were derived during the three or nine months ended September 30, 2021 or 2020.
Collections on the Remaining Contracts
The Company recognizes revenue from customers with balances outstanding as of September 30, 2019 for which all of the criteria necessary for revenue recognition were not met at the time of shipment and that such criteria would not be met until collection of such sales (the “Remaining Contracts”). This was in accordance with the change in the Company’s revenue recognition pattern beginning September 30, 2019 (the “Transition”).
The Company defers the recognition of cost of sales associated with the Remaining Contracts until revenue is recognized and cash is collected.
A summary of the effects of cash collections on the Remaining Contracts on the unaudited condensed consolidated statements of operations for each of the three and nine months ended September 30, 2021 and 2020 are as follows (amounts in thousands):
Three Months Ended September 30,Nine Months Ended September 30,
2021202020212020
Net sales$303 $1,039 $914 $7,240 
Cost of sales42 146 128 1,014 
Gross profit$261 $893 $786 $6,226