100% of the Company’s sales are generated from the ophthalmic surgical product segment and the CODM makes operating decisions and allocates resources based upon the consolidated operating results, and therefore the Company operates as one operating segment for financial reporting purposes. The Company’s principal products are implantable Collamer Lenses (“ICLs”) used in refractive surgery. The composition of the Company’s net sales is primarily related to ICL sales. Net sales include sales of delivery systems and normal recurring sales adjustments such as sales return allowances. In the following tables, sales are disaggregated by category and sales by geographic market data.

The Company maintains finished goods inventory at different sites in the United States, Switzerland and Japan, and from time to time, consigns or ships finished goods inventory to surgeons, hospitals, and distributors in advance of anticipated demand. The Company maintains title and risk of loss on consigned inventory and generally does not recognize revenue for consignment inventory until the Company is notified that the lenses have been implanted. The following table disaggregates the Company’s consignment sales (in thousands):


	Three Months Ended
	April 3, 2026		March 28, 2025
Non-consignment sales	$	75,488	$	37,851
Consignment sales		18,034		4,738
Total net sales	$	93,522	$	42,589

In April 2025, in order to mitigate potential financial exposure from tariffs imposed by China, the Company negotiated and implemented consignment agreements with its two distributors in China and delivered consigned inventory to its distributors in advance of the implementation of tariffs and delivered additional consignment inventory throughout fiscal 2025. As this consigned inventory in China is purchased by the Company’s distributors, revenue associated with such consigned inventory will be recorded as consignment sales. China consignment sales for the three months ended April 3, 2026 were $12,634,000.

The Company’s product is marketed and sold in more than 85 countries and its product is manufacturing in the United States and Switzerland. Sales are attributed to countries based on locations of customers. During 2025, the presentation of immaterial amounts related to normal recurring sales adjustments previously presented in foreign other sales are presented in the countries these normal recurring sales adjustments are attributable to. The composition of the Company’s net sales to unaffiliated customers was as follows (in thousands):


	Three Months Ended
	April 3, 2026		March 28, 2025
Domestic	$	6,667	$	5,459
Foreign:
China(1)		47,442		(877	)
Japan		12,266		11,395
Korea		7,975		7,522
Other(2)		19,172		19,090
Total foreign sales		86,855		37,130
Total net sales	$	93,522	$	42,589

(1)

The China region includes sales into China and Hong Kong.

(2)

No other location individually exceeds 10% of the total net sales.

The Company’s China distributors accounted for 51% of net sales for the three months ended April 3, 2026, and the Company’s Korea distributor accounted for 18% of net sales for the three months ended March 28, 2025. As of April 3, 2026, the Company’s China distributors accounted for 57% of consolidated trade receivables, and as of January 2, 2026, the Company’s China distributors accounted for 33% of consolidated trade receivables.