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				Six Months Ended
	July 3, 2026		June 27, 2025		July 3, 2026		June 27, 2025
Non-consignment sales	$	80,924	$	37,525	$	156,412	$	75,376
Consignment sales		12,611		6,795		30,645		11,533
Total net sales	$	93,535	$	44,320	$	187,057	$	86,909

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 and six months ended July 3, 2026 were $9,520,000 and $22,154,000, respectively. China consignment sales were $2,785,000 for the three and six months ended June 27, 2025.

The Company’s product is marketed and sold in more than 85 countries and its product is manufactured in the United States and Switzerland. Sales are attributed to countries based on locations of customers. The composition of the Company’s net sales to unaffiliated customers was as follows (in thousands):


	Three Months Ended				Six Months Ended
	July 3, 2026		June 27, 2025		July 3, 2026		June 27, 2025
Domestic	$	6,055	$	5,635	$	12,722	$	11,094
Foreign:
China(1)		52,341		5,299		99,783		4,422
Japan		11,140		10,915		23,406		22,310
Korea		4,297		4,293		12,272		11,815
Other(2)		19,702		18,178		38,874		37,268
Total foreign sales		87,480		38,685		174,335		75,815
Total net sales	$	93,535	$	44,320	$	187,057	$	86,909

(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 56% and 53% of net sales for the three and six months ended July 3, 2026, respectively. The Company’s China distributors accounted for 12% of net sales for the three months ended June 27, 2025, and the Company’s Korea distributor accounted for 14% of net sales for the six months ended June 27, 2025. As of July 3, 2026, the Company’s China distributors accounted for 65% of consolidated trade receivables, and as of January 2, 2026, the Company’s China distributors accounted for 33% of consolidated trade receivables.