Related party transactions |
3 Months Ended |
|---|---|
Mar. 31, 2026 | |
| Related Party Transactions [Abstract] | |
| Related party transactions | Related party transactions Alcon has been and continues to be the Company's largest customer, comprising 39% and 54% of its revenues for the three months ended March 31, 2026 and February 23, 2025, respectively. On May 22, 2023, Alcon entered into the Term Loan Credit Facility with the Company as described in note 9. This relationship as the Company's largest creditor, combined with its position as the Company's largest customer, caused management to conclude that Alcon has the ability to exert significant influence over the Company and therefore meets the definition of a related party beginning in May 2023 through the present. Alcon’s transactions with the Company are as follows: •Customary current financial positions for a customer of Alcon's size, including accounts receivable, contract assets and liabilities, and revenue, each as presented in the consolidated balance sheets and statements of operations and the notes thereto. Alcon has provided the Company guaranteed contractual minimum purchasing commitments through 2031, and the Company is required to maintain certain manufacturing capacity levels through 2033; •A significant individual prepayment that Alcon made to the Company in May 2024 of $5,500. The prepayment was accounted for as a contract liability and initially discounted to present value due to the existence of a significant financing component. The discount is being amortized over the life of the contract liability via charges to interest expense, related party. This contract liability is being derecognized beginning January 2026 by delivering goods to Alcon at a discount equal to twelve monthly credit memos totaling $5,500. As of March 31, 2026, the entire contract liability balance of $3,999 which is net of the unamortized discount, is included in accrued expenses and other current liabilities on the consolidated balance sheet; •Proceeds of $142,270 from term loans issued in May 2023 that were used to repay prior borrowings. The term loan principal plus accrued interest has grown to $188,627 through March 31, 2026 as a result of 10% interest paid-in-kind, which will decrease to 7% beginning in May 2026. See note 9 for additional information; •Alcon purchased equipment in May 2023 for $7,730 that it is leasing back to the Company in exchange for quarterly payments over a ten-year period. Payments to Alcon under the lease were $280 and $295 for the three months ended March 31, 2026 and February 23, 2025, respectively. See note 9 for additional information; •Interest expense incurred from the Alcon instruments noted above, net of capitalized interest, was $6,894 and $4,840 for the three months ended March 31, 2026 and February 23, 2025, respectively. Included in those amounts was non-cash interest expense of $6,807 and $4,632 for the three months ended March 31, 2026 and February 23, 2025, respectively; and •A contract asset of $850 as of December 31, 2025 for the recognition of revenue as the result of performance obligations satisfied.
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