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				Nine Months Ended
	October 2, 2026		September 26, 2025		October 2, 2026		September 26, 2025
Non-consignment sales	$	75,498	$	62,995	$	231,910	$	138,371
Consignment sales		7,913		31,737		38,558		43,270
Total net sales	$	83,411	$	94,732	$	270,468	$	181,641

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 are recorded as consignment sales. China consignment sales for the three and nine months ended October 2, 2026 were $5,547,000 and $27,701,000, respectively. China consignment sales were $27,969,000 and $30,754,000 for the three and nine months ended September 26, 2025, respectively.

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				Nine Months Ended
	October 2, 2026		September 26, 2025		October 2, 2026		September 26, 2025
Domestic	$	6,462	$	5,632	$	19,184	$	16,726
Foreign:
China(1)		39,301		55,833		139,084		60,255
Japan		10,376		11,226		33,782		33,536
Other(2)		27,272		22,041		78,418		71,124
Total foreign sales		76,949		89,100		251,284		164,915
Total net sales	$	83,411	$	94,732	$	270,468	$	181,641

(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 47% and 51% of net sales for the three and nine months ended October 2, 2026, respectively. The Company’s China distributors accounted for 59% and 33% of net sales for the three and nine months ended September 26, 2025. As of October 2, 2026, the Company’s China distributors accounted for 61% of consolidated trade receivables, and as of January 2, 2026, the Company’s China distributors accounted for 33% of consolidated trade receivables.