v3.25.2
Note 12 - Segment and Geographic Information
 6 Months Ended
Jun. 30, 2025
Notes to Financial Statements  
Segment Reporting Disclosure [Text Block]

12. Segment and Geographic Information

 

The Company regularly reviews its segment financial information and the approach used by the chief operating decision maker (“CODM”), the Chief Executive Officer, to evaluate performance and allocate resources. The Company considers the business to be a single operating segment engaged in the development, manufacturing, and marketing of medical devices and implants, as well as the processing and cryopreservation of human tissues for implantation in patients, all used primarily in the field of vascular surgery.

 

The CODM assesses performance for its single operating segment and decides how to allocate resources based on net income that also is reported on the consolidated statements of operations. The measure of segment assets is reported on the consolidated balance sheets as total consolidated assets.

 

The CODM uses net income to evaluate income generated from segment assets (return on assets) in deciding whether to reinvest profits into the single operating segment or into other parts of the entity, such as for acquisitions, dividend payments, and/or short-term marketable security investments. Net income is also used to monitor budget versus actual results, which is used in assessing performance of the segment and in establishing management’s compensation.

 

In addition to total segment net income, the CODM’s quarterly reporting package includes several highlighted expense categories that the CODM considers key strategic drivers of the Company’s long-term profitability. The following is the Company’s operating segment reconciliation of net income, including significant segment expenses:

 

   

Three months ended June 30,

    

Six months ended June 30,

  
   

2025

    

2024

    

2025

    

2024

  
   

(in thousands)

    

(in thousands)

  
                                 

Net sales

   $ 64,232     $ 55,849     $ 124,103     $ 109,327  

Cost of sales

     19,258       17,381       37,709       34,194  

Gross profit

     44,974       38,468       86,394       75,133  
                                 

Less:

                                

Selling expense

     13,579       9,796       26,403       20,348  

Marketing expense

     1,316       1,188       2,704       2,322  

Administrative expense

     7,177       5,972       14,000       11,868  

Finance expense

     2,481       2,276       5,449       4,814  

Management information systems expense

     738       572       1,434       1,151  

Research and development expense

     1,113       830       2,214       1,662  

Process engineering expense

     543       735       1,282       1,540  

Regulatory and clinical expense

     1,885       2,719       4,140       5,174  

Other (income) expense, net*

     2,363       2,554       3,978       4,541  

Net income

   $ 13,779     $ 11,826     $ 24,790     $ 21,713  

 

*Refer to the consolidated statement of operations for the components of other income and expense and related amounts.

 

Most of the Company’s revenues are generated in the United States, Germany, the United Kingdom, other European countries, and Canada. Substantially all of the Company’s assets are located in the United States and Germany. Net sales to unaffiliated customers based on customer location by country were as follows:

 

   

Three months ended June 30,

    

Six months ended June 30,

  
   

2025

    

2024

    

2025

    

2024

  
   

(in thousands)

    

(in thousands)

  
                                 

United States

   $ 36,656     $ 32,798     $ 71,284     $ 63,923  

Germany

     4,458       3,509       8,435       7,027  

Canada

     3,955       3,618       7,676       7,230  

United Kingdom

     3,296       2,718       6,445       5,246  

Other countries

     15,867       13,206       30,263       25,901  
                                 

Net sales

   $ 64,232     $ 55,849     $ 124,103     $ 109,327