Company: MDXG
Filing Date: 2025-02-26
Form Type: 10-K
Source: 0001376339-25-000009
Chunk: 3

Company: MIMEDX GROUP, INC.
Filing Date: 2025-02-26
Form: 10-K
Item: Item 8
Chunk 3
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 involved in evaluating that the performance obligations are fulfilled. This required a higher degree of audit effort and auditor judgment when performing audit procedures and evaluating the results of these procedures.

How the Critical Audit Matter Was Addressed in the Audit

Our audit procedures related to the timing of revenue recognition transactions included the following, among others: 

•We tested the effectiveness of controls over the recognition of ship and bill and consignment sales at or near year end.

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•We created data visualizations using a detail of all revenue transactions and evaluated trends in the transactional revenue data with emphasis on activity at or near year end.

•We evaluated and tested corollary relationships between revenue and related accounts.  

•We evaluated the appropriateness and consistency of the methods and assumptions utilized by management to estimate consignment revenue. 

•We tested a sample of consignment revenue transactions accrued as of year-end and evaluated whether the transactions were recorded in the correct period.   

•We tested a sample of ship and bill revenue transactions close to period end by agreeing the amounts recognized to source documents and evaluating whether the transaction was recorded in the correct period.

•We tested a sample of sale refunds issued after year end by agreeing to documents supporting the authorization for the issuance of the refund and evaluating if the refund was recorded in the correct period.  

/s/ Deloitte & Touche LLPAtlanta, GeorgiaFebruary 26, 2025 

We have served as the Company's auditor since 2021.

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MIMEDX GROUP, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(in thousands, except share data)

 December 31, 20242023ASSETSCurrent assets:  Cash and cash equivalents$104,416 $82,000 Accounts receivable, net55,828 53,871 Inventory23,807 21,021 Prepaid expenses 5,018 5,624 Other current assets2,817 1,745 Total current assets191,886 164,261 Property and equipment, net 5,944 6,974 Right of use assets5,606 2,132 Deferred tax assets28,306 40,777 Goodwill19,441 19,441 Intangible assets, net 11,626 5,257 Other assets1,106 205 Total assets$263,915 $239,047 LIABILITIES AND STOCKHOLDERS’ E