through tissue procurement firms engaged by us. We primarily ship our Core Products from our facilities directly to hospital customers.

Components of Our Results of Operations

Our cost of goods sold relate to purchased raw materials and the processing and conversion costs of such raw materials consisting primarily of salaries and benefits, supplies, quality control testing and the manufacturing overhead incurred at our processing facilities in Richmond, California and Roswell, Georgia. Both facilities have additional capacity, which if utilized, would further leverage our fixed overhead. Cost of goods sold also includes the amortization of intangibles generated from the CorMatrix Acquisition in 2017.

Sales and marketing expenses are primarily related to our direct sales force, consisting of salaries, commission compensation, fringe benefits, meals and other expenses. Auto and travel costs have also historically contributed to sales

Comparison of the Three Months Ended June 30, 2022 and 2021

Comparison of the Six Months Ended June 30, 2022 and 2021

Cash Flows for the Six Months Ended June 30, 2022 and 2021

Net Cash Used in Operating Activities

Net Cash Used in Investing Activities

Net Cash Used in Financing Activities

On July 15, 2019, the Borrowers also entered into an amended and restated revolving credit agreement (the "Revolving Credit Agreement"), with Midcap Funding IV Trust, as agent and lender, and the other lenders party thereto, which provided for an $8.0 million asset-based revolving credit facility (the "Revolving Credit Facility").

In addition to paying interest on the principal amounts outstanding under the Revolving Credit Facility, we are required to pay an unused line fee to the lenders under the Revolving Credit Facility in respect of the unutilized commitments thereunder equal to 0.50% multiplied by the lesser of (1) the unutilized commitments and (2) $8,000,000 minus 40% of the Borrowing Base.

Outstanding borrowings under the Revolving Credit Facility do not amortize and are due and payable on July 15, 2024.

? pay dividends or make other distributions on equity interests;

? enter into agreements restricting their subsidiaries' ability to pay dividends;

? redeem, repurchase or refinance subordinated indebtedness;

? consolidate, merge or sell or otherwise dispose of their assets;

? make investments, loans, advances, guarantees and acquisitions;

? enter into transactions with affiliates;

? amend or modify their governing documents;

? amend or modify certain material agreements;

? alter the business conducted by them and their subsidiaries; and

? enter into sale and leaseback transactions.

All of the SWK Loan Facility borrowings take the form of Secured Overnight Financing Rate ("SOFR") loans and will bear interest at a rate per annum equal to the sum of an applicable margin of (i) 8.75% and the "Term SOFR

We also used $1.4 million of the proceeds to repay the remaining balance on the promissory note with a tissue supplier.

? continued patient, physician and market acceptance of our products;

? the cost of our research and development activities and the cost and timing of

commercializing new products or technologies;

? the cost and timing of expanding our sales and marketing capabilities;

? the cost of filing and prosecuting patent applications and maintaining,

defending and enforcing our patent or other intellectual property rights;

the cost of defending, in litigation or otherwise, any claims that we infringe,

? misappropriate or otherwise violate third-party patents or other intellectual

the costs of defending against or the damages payable (to the extent above the

? applicable insurance coverage), for example, in connection with claims

involving the recall of FiberCel;

? the cost and timing of additional regulatory approvals;

? costs associated with any product recall that may occur;

? the effect of competing technological and market developments;

? the expenses we incur in manufacturing and selling our products;

the extent to which we acquire or invest in products, technologies and

? businesses, although we currently have no commitments or agreements relating to

any of these types of transactions;

? the costs of operating as a public company;

? unanticipated general, legal and administrative expenses; and

? the effects on any of the above of the current COVID-19 pandemic or any other

pandemic, epidemic or outbreak of infectious disease.

Critical Accounting Policies and Estimates

Refer to Note 3, "Recently Issued Accounting Standards," to our condensed consolidated financial statements included elsewhere in this Quarterly Report for information regarding recently issued accounting pronouncements.

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