v3.26.1
Segment and Geographic Information
 6 Months Ended
Jun. 30, 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 June 30,

 

 

Six months ended June 30,

 

 

2026

 

 

2025

 

 

2026

 

 

2025

 

 

(in thousands)

 

 

(in thousands)

 

Net sales

 

$

70,382

 

 

$

64,232

 

 

$

136,933

 

 

$

124,103

 

Cost of sales

 

 

19,618

 

 

 

19,258

 

 

 

37,773

 

 

 

37,709

 

Gross profit

 

 

50,764

 

 

 

44,974

 

 

 

99,160

 

 

 

86,394

 

 

 

 

 

 

 

 

 

 

 

 

 

Less:

 

 

 

 

 

 

 

 

 

 

 

 

Selling expense

 

 

12,845

 

 

 

13,579

 

 

 

25,645

 

 

 

26,403

 

Marketing expense

 

 

1,563

 

 

 

1,316

 

 

 

3,278

 

 

 

2,704

 

Administrative expense

 

 

7,526

 

 

 

7,177

 

 

 

15,489

 

 

 

14,000

 

Finance expense

 

 

2,647

 

 

 

2,481

 

 

 

5,831

 

 

 

5,449

 

Management information systems expense

 

 

937

 

 

 

738

 

 

 

1,836

 

 

 

1,434

 

Research and development expense

 

 

1,472

 

 

 

1,113

 

 

 

2,895

 

 

 

2,214

 

Process engineering expense

 

 

1,338

 

 

 

543

 

 

 

2,340

 

 

 

1,282

 

Regulatory and clinical expense

 

 

2,037

 

 

 

1,885

 

 

 

3,672

 

 

 

4,140

 

Other (income) expense, net*

 

 

3,349

 

 

 

2,363

 

 

 

5,445

 

 

 

3,978

 

Net income

 

$

17,050

 

 

$

13,779

 

 

$

32,729

 

 

$

24,790

 

 

*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,

 

 

2026

 

 

2025

 

 

2026

 

 

2025

 

 

(in thousands)

 

 

(in thousands)

 

United States

 

$

38,250

 

 

$

36,656

 

 

$

75,436

 

 

$

71,284

 

Germany

 

 

5,341

 

 

 

4,458

 

 

 

10,879

 

 

 

8,435

 

Canada

 

 

4,551

 

 

 

3,955

 

 

 

8,604

 

 

 

7,676

 

United Kingdom

 

 

3,725

 

 

 

3,296

 

 

 

6,851

 

 

 

6,445

 

Other countries

 

 

18,515

 

 

 

15,867

 

 

 

35,163

 

 

 

30,263

 

 

 

 

 

 

 

 

 

 

 

 

 

Net sales

 

$

70,382

 

 

$

64,232

 

 

$

136,933

 

 

$

124,103