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Segment Information | 9 Months Ended
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Sep. 30, 2022
Segment Reporting [Abstract] |
Segment Information | Segment InformationThe Company has two reportable segments: Wound & Surgical and Regenerative Medicine. Wound & Surgical focuses on the Advanced Wound Care and Surgical Recovery markets, the Company’s existing product portfolio, and near-term product development. Its platform technologies include tissue allografts derived from human placental membrane (EPIFIX®, AMNIOFIX®, and AMNIOEFFECT™), tissue allografts derived from human umbilical cord (EPICORD® and AMNIOCORD®), and a particulate extracellular matrix derived from human placental disc (AXIOFILL™). This segment is also responsible for the international sales of the Company’s Section 351 products. The Regenerative Medicine business focuses solely on Regenerative Medicine technologies, specifically progressing the Company’s placental biologics platform towards registration as a FDA-approved biological drug. Micronized dehydrated human amnion chorion membrane is the lead product candidate in its late-stage pipeline targeted at achieving FDA approval for specific clinical indications, including degenerative musculoskeletal conditions, beginning with KOA. The Company’s corporate function includes expenses incurred by executive, finance, human resource, information systems, legal, other functions which are generally shared and whose activities are not specifically identifiable solely to either of the other segments. It also includes amortization of intangible assets. The Company has another operating segment related to an expiring dental sales contract. All net sales and cost of sales presented in the Corporate & Other columns below relate to this operating segment. Wound & Surgical net sales reflects sales of the Company’s Advanced Wound Care products (as discussed in Note 14, Revenue), except for sales of the Company’s dental product. Sales of the Company’s dental product are included in the Corporate & Other columns in the tables below. In addition, Wound & Surgical reflects international sales of the Company’s Section 351 products, which represent all Section 351 sales not reflected in Regenerative Medicine. The accounting policies of the segments are the same as the Company’s accounting policies. See Note 2, Significant Accounting Policies, included in the 2021 Form 10-K for significant accounting policies. The Company evaluates the performance of its segments and allocates resources based on segment contribution, defined as net sales less (i) cost of sales, (ii) selling, general and administrative expense, (iii) research and development expense, and (iv) amortization of intangible assets. Prior period results were recast on the basis of new operating segments. The only components which comprise loss before income tax provision that are not included in operating loss are interest expense, net and other expense, net. Net sales and segment contribution for each reportable segment for the three months ended September 30, 2022 were as follows (in thousands):
| Wound & Surgical |  | Regenerative Medicine |  | Corporate & Other |  | Consolidated
Net sales | $ | 66,873 |  |  | $ | — |  |  | $ | 816 |  |  | $ | 67,689 |
Cost of sales | 11,159 |  |  | — |  |  | 1,029 |  |  | 12,188 |
Selling, general and administrative expense | 35,531 |  |  | — |  |  | 17,944 |  |  | 53,475 |
Research and development expense | 1,680 |  |  | 4,273 |  |  | — |  |  | 5,953 |
Amortization of intangible assets | — |  |  | — |  |  | 175 |  |  | 175 |
Segment contribution | $ | 18,503 |  |  | $ | (4,273) |  |  |  |  |
Investigation, restatement and related expense |  |  |  |  |  |  | 3,001 |
Operating loss |  |  |  |  |  |  | $ | (7,103) |
Supplemental information |  |  |  |  |  |  |
Depreciation expense | $ | 451 |  |  | $ | 36 |  |  | $ | 344 |  |  | $ | 831 |
Share-based compensation | $ | 1,945 |  |  | $ | 347 |  |  | $ | 80 |  |  | $ | 2,372 |
Net sales and segment contribution by each reportable segment for the three months ended September 30, 2021 were as follows (in thousands):
| Wound & Surgical |  | Regenerative Medicine |  | Corporate & Other |  | Consolidated
Net sales | $ | 62,138 |  |  | $ | 76 |  |  | $ | 860 |  |  | $ | 63,074 |
Cost of sales | 8,924 |  |  | 16 |  |  | 1,189 |  |  | 10,129 |
Selling, general and administrative expense | 32,104 |  |  | 1,285 |  |  | 12,900 |  |  | 46,289 |
Research and development expense | 1,423 |  |  | 2,945 |  |  | — |  |  | 4,368 |
Amortization of intangible assets | — |  |  | — |  |  | 193 |  |  | 193 |
Segment contribution | $ | 19,687 |  |  | $ | (4,170) |  |  |  |  |
Investigation, restatement and related expense |  |  |  |  |  |  | 3,170 |
Operating loss |  |  |  |  |  |  | $ | (1,075) |
Supplemental information |  |  |  |  |  |  |
Depreciation expense | $ | 511 |  |  | $ | 34 |  |  | $ | 378 |  |  | $ | 923 |
Share-based compensation | $ | 1,435 |  |  | $ | 322 |  |  | $ | 2,054 |  |  | $ | 3,811 |
Net sales and segment contribution by each reportable segment for the nine months ended September 30, 2022 were as follows (in thousands):
| Wound & Surgical |  | Regenerative Medicine |  | Corporate & Other |  | Consolidated
Net sales | $ | 191,297 |  |  | $ | — |  |  | $ | 2,169 |  |  | $ | 193,466 |
Cost of sales | 31,126 |  |  | — |  |  | 2,821 |  |  | 33,947 |
Selling, general and administrative expense | 108,256 |  |  | — |  |  | 50,582 |  |  | 158,838 |
Research and development expense | 6,068 |  |  | 11,361 |  |  | — |  |  | 17,429 |
Amortization of intangible assets | — |  |  | — |  |  | 519 |  |  | 519 |
Segment contribution | $ | 45,847 |  |  | $ | (11,361) |  |  |  |  |
Investigation, restatement and related expense |  |  |  |  |  |  | 8,771 |
Operating loss |  |  |  |  |  |  | $ | (26,038) |
Supplemental information |  |  |  |  |  |  |
Depreciation expense | $ | 1,364 |  |  | $ | 120 |  |  | $ | 1,065 |  |  | $ | 2,549 |
Share-based compensation | $ | 5,609 |  |  | $ | 910 |  |  | $ | 4,279 |  |  | $ | 10,798 |
Net sales and segment contribution by each reportable segment for the nine months ended September 30, 2021 were as follows (in thousands):
| Wound & Surgical |  | Regenerative Medicine |  | Corporate & Other |  | Consolidated
Net sales | $ | 172,401 |  |  | $ | 16,584 |  |  | $ | 2,221 |  |  | $ | 191,206 |
Cost of sales | 25,646 |  |  | 3,652 |  |  | 3,232 |  |  | 32,530 |
Selling, general and administrative expense | 87,392 |  |  | 11,127 |  |  | 46,772 |  |  | 145,291 |
Research and development expense | 4,080 |  |  | 8,690 |  |  | — |  |  | 12,770 |
Amortization of intangible assets | — |  |  | — |  |  | 647 |  |  | 647 |
Segment contribution | $ | 55,283 |  |  | $ | (6,885) |  |  |  |  |
Investigation, restatement and related expense |  |  |  |  |  |  | 8,304 |
Operating loss |  |  |  |  |  |  | $ | (8,336) |
Supplemental information |  |  |  |  |  |  |
Depreciation expense | $ | 1,172 |  |  | $ | 213 |  |  | $ | 2,005 |  |  | $ | 3,390 |
Share-based compensation | $ | 3,827 |  |  | $ | 1,147 |  |  | $ | 6,141 |  |  | $ | 11,115 |
The Company does not allocate any assets to the reportable segments. No asset information is reported or disclosed to the chief operating decision maker in the financial information for each segment.

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 31 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8924-108599 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 34 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8981-108599 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (a) -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8721-108599 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 40 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e9031-108599 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (f) -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8933-108599 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (e) -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8933-108599 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 26 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8844-108599 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 41 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e9038-108599 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (d) -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8933-108599 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 22 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8736-108599 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 42 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e9054-108599 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 15 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8657-108599 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (b) -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8721-108599 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI https://asc.fasb.org/topic&trid=2134510 + Details
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