v3.26.1
Segment and Geographic Information
 3 Months Ended
Mar. 31, 2026
Segment Reporting [Abstract]  
Segment and Geographic Information

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 March 31,

 

 

2026

 

 

2025

 

 

(in thousands)

 

Net sales

 

$

66,551

 

 

$

59,871

 

Cost of sales

 

 

18,155

 

 

 

18,451

 

Gross profit

 

 

48,396

 

 

 

41,420

 

 

 

 

 

 

 

Less:

 

 

 

 

 

 

Selling expense

 

 

12,800

 

 

 

12,824

 

Marketing expense

 

 

1,715

 

 

 

1,388

 

Administrative expense

 

 

7,963

 

 

 

6,823

 

Finance expense

 

 

3,184

 

 

 

2,968

 

Management information systems expense

 

 

899

 

 

 

696

 

Research and development expense

 

 

1,423

 

 

 

1,101

 

Process engineering expense

 

 

1,002

 

 

 

739

 

Regulatory and clinical expense

 

 

1,635

 

 

 

2,255

 

Other (income) expense, net*

 

 

2,096

 

 

 

1,615

 

Net income

 

$

15,679

 

 

$

11,011

 

 

*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 March 31,

 

 

2026

 

 

2025

 

 

(in thousands)

 

United States

 

$

37,186

 

 

$

34,628

 

Germany

 

 

5,538

 

 

 

3,977

 

Canada

 

 

4,053

 

 

 

3,721

 

United Kingdom

 

 

3,126

 

 

 

3,149

 

Other countries

 

 

16,648

 

 

 

14,396

 

 

 

 

 

 

 

Net sales

 

$

66,551

 

 

$

59,871