Form 10-Q - Quarterly report [Sections 13 or 15(d)]

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form 10-Q

(Mark One)

☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended: March 29, 2024

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

Commission file number: 0-11634

STAAR Surgical Company

(Exact Name of Registrant as Specified in its Charter)


Delaware	95-3797439
(State or Other Jurisdiction of Incorporation or Organization)	(I.R.S. Employer Identification No.)
25651 Atlantic Ocean Drive Lake Forest, California	92630
(Address of Principal Executive Offices)	(Zip Code)

(626) 303-7902

(Registrant’s Telephone Number, Including Area Code)

Securities registered pursuant to Section 12(b) of the Act:


Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common	STAA	NASDAQ

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☑ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☑ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.


Large accelerated filer	☑	Accelerated filer	☐
Non-accelerated filer	☐	Smaller reporting company	☐
Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☑

The registrant has 49,131,110 shares of common stock, par value $0.01 per share, issued and outstanding as of May 2, 2024.

STAAR SURGICAL COMPANY

INDEX


		PAGE NUMBER

PART I – FINANCIAL INFORMATION		1

ITEM 1	FINANCIAL STATEMENTS	1

ITEM 2.	MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS	16

ITEM 3.	QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK	21

ITEM 4.	CONTROLS AND PROCEDURES	21

PART II – OTHER INFORMATION		21

ITEM 1.	LEGAL PROCEEDINGS	21

ITEM 1A.	RISK FACTORS	21

ITEM 4.	MINE SAFETY DISCLOSURES	22

ITEM 5.	OTHER INFORMATION	22

ITEM 6.	EXHIBITS	22

PART I – FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

STAAR SURGICAL COMPANY

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands, except par value amounts)

(Unaudited)


	March 29, 2024			December 29, 2023
ASSETS
Current assets:
Cash and cash equivalents	$	224,024		$	183,038
Investments available for sale		21,125			37,688
Accounts receivable trade, net of allowance for credit losses of $187 and $191, respectively		64,604			94,704
Inventories, net		38,581			35,130
Prepayments, deposits and other current assets		17,381			14,709
Total current assets		365,715			365,269
Investments available for sale		6,963			11,703
Property, plant and equipment, net		72,337			66,835
Finance lease right-of-use assets, net		146			183
Operating lease right-of-use assets, net		34,600			34,387
Goodwill		1,786			1,786
Deferred income taxes		5,125			5,190
Other assets		5,863			3,339
Total assets	$	492,535		$	488,692
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	16,560		$	13,557
Obligations under finance leases		166			165
Obligations under operating leases		4,403			4,202
Allowance for sales returns		6,284			6,174
Other current liabilities		35,261			40,938
Total current liabilities		62,674			65,036
Obligations under finance leases		—			42
Obligations under operating leases		31,126			31,425
Deferred income taxes		1,074			1,077
Asset retirement obligations		96			103
Pension liability		4,777			5,055
Total liabilities		99,747			102,738
Commitments and contingencies
Stockholders’ equity:
Common stock, $0.01 par value; 60,000 shares authorized: 49,120 and 48,839 shares issued and outstanding at March 29, 2024 and December 29, 2023, respectively		491			488
Additional paid-in capital		447,716			436,947
Accumulated other comprehensive income (loss)		(4,712	)		(4,113	)
Accumulated deficit		(50,707	)		(47,368	)
Total stockholders’ equity		392,788			385,954
Total liabilities and stockholders’ equity	$	492,535		$	488,692

See accompanying notes to the condensed consolidated financial statements.

STAAR SURGICAL COMPANY

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands, except per share amounts)

(Unaudited)


	Three Months Ended
	March 29, 2024			March 31, 2023
Net sales	$	77,356		$	73,528
Cost of sales		16,321			15,966
Gross profit		61,035			57,562
Selling, general and administrative expenses:
General and administrative		23,228			18,098
Selling and marketing		26,708			26,354
Research and development		13,380			10,310
Total selling, general and administrative expenses		63,316			54,762
Operating income (loss)		(2,281	)		2,800
Other income (expense), net:
Interest income, net		1,529			1,822
Gain (loss) on foreign currency transactions		(2,297	)		34
Royalty income		508			—
Other income, net		330			63
Total other income, net		70			1,919
Income (loss) before income taxes		(2,211	)		4,719
Provision for income taxes		1,128			2,009
Net income (loss)	$	(3,339	)	$	2,710
Net income (loss) per share:
Basic	$	(0.07	)	$	0.06
Diluted	$	(0.07	)	$	0.05
Weighted average shares outstanding:
Basic		48,907			48,247
Diluted		48,907			49,500

See accompanying notes to the condensed consolidated financial statements.

STAAR SURGICAL COMPANY

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

(In thousands)

(Unaudited)


	Three Months Ended
	March 29, 2024			March 31, 2023
Net income (loss)	$	(3,339	)	$	2,710
Other comprehensive income (loss):
Defined benefit plans:
Net change in plan assets		232			(1,177	)
Reclassification into other income (expense), net		(17	)		(52	)
Investments available for sale:
Change in unrealized gain (loss)		(36	)		116
Reclassification into other income (expense), net		3			(2	)
Foreign currency translation loss		(1,100	)		(129	)
Tax effect		319			151
Other comprehensive loss, net of tax		(599	)		(1,093	)
Comprehensive income (loss)	$	(3,938	)	$	1,617

See accompanying notes to the condensed consolidated financial statements.

STAAR SURGICAL COMPANY

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY

(In thousands)

(Unaudited)


	Three Months Ended
	Common Stock Shares			Common Stock Par Value		Additional Paid-In Capital			Accumulated Other Compre- hensive Income (Loss)			Accumulated Deficit			Total
Balance, at December 29, 2023		48,839		$	488	$	436,947		$	(4,113	)	$	(47,368	)	$	385,954
Net loss		—			—		—			—			(3,339	)		(3,339	)
Other comprehensive loss		—			—		—			(599	)		—			(599	)
Common stock issued upon exercise of options		187			2		5,322			—			—			5,324
Stock-based compensation		—			—		6,676			—			—			6,676
Repurchase of employee common stock for taxes withheld		(36	)		—		(1,229	)		—			—			(1,229	)
Forfeited restricted stock		(4	)		—		—			—			—			—
Vested restricted and performance stock units		134			1		—			—			—			1
Balance, at March 29, 2024		49,120		$	491	$	447,716		$	(4,712	)	$	(50,707	)	$	392,788

Balance, at December 30, 2022		48,212		$	482	$	404,189		$	156		$	(68,715	)	$	336,112
Net income		—			—		—			—			2,710			2,710
Other comprehensive loss		—			—		—			(1,093	)		—			(1,093	)
Common stock issued upon exercise of options		40			—		529			—			—			529
Stock-based compensation		—			—		6,434			—			—			6,434
Repurchase of employee common stock for taxes withheld		(31	)		—		(1,849	)		—			—			(1,849	)
Vested restricted and performance stock units		110			1		—			—			—			1
Balance at March 31, 2023		48,331		$	483	$	409,303		$	(937	)	$	(66,005	)	$	342,844

See accompanying notes to the condensed consolidated financial statements.

STAAR SURGICAL COMPANY

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

(Unaudited)


	Three Months Ended
	March 29, 2024			March 31, 2023
Cash flows from operating activities:
Net income (loss)	$	(3,339	)	$	2,710
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Depreciation of property, plant, and equipment		1,237			1,113
Amortization of intangibles		—			7
Accretion/Amortization of investments available for sale		(120	)		(983	)
Deferred income taxes		61			57
Change in net pension liability		(93	)		(13	)
Stock-based compensation expense		6,339			6,065
Provision for sales returns and bad debts		128			(377	)
Inventory provision		646			614
Changes in working capital:
Accounts receivable		29,837			(1,110	)
Inventories		(4,002	)		(3,920	)
Prepayments, deposits, and other assets		(5,485	)		(4,249	)
Accounts payable		1,519			(3,168	)
Other current liabilities		(5,048	)		(1,840	)
Net cash provided by (used in) operating activities		21,680			(5,094	)
Cash flows from investing activities:
Acquisition of property and equipment		(5,202	)		(2,901	)
Purchase of investments available for sale		—			(27,445	)
Proceeds from sale or maturity of investments available for sale		21,389			40,279
Net cash provided by investing activities		16,187			9,933
Cash flows from financing activities:
Repayment of finance lease obligations		(40	)		(42	)
Repurchase of employee common stock for taxes withheld		(1,229	)		(1,849	)
Proceeds from the exercise of stock options		5,324			529
Proceeds from vested restricted and performance stock units		1			1
Net cash provided by (used in) financing activities		4,056			(1,361	)
Effect of exchange rate changes on cash and cash equivalents		(937	)		10
Increase in cash and cash equivalents		40,986			3,488
Cash and cash equivalents, at beginning of the period		183,038			86,480
Cash and cash equivalents, at end of the period	$	224,024		$	89,968

See accompanying notes to the condensed consolidated financial statements.

STAAR SURGICAL COMPANY

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)

Note 1 — Basis of Presentation and Significant Accounting Policies

STAAR Surgical Company, a Delaware corporation, was first incorporated in 1982, and together with its subsidiaries designs, develops, manufactures, and sells implantable lenses for the eye and accessory delivery systems used to deliver the lenses into the eye. The accompanying Condensed Consolidated Financial Statements present the financial position, results of operations, and cash flows of STAAR Surgical Company and its wholly owned subsidiaries (the “Company”). All significant intercompany accounts and transactions have been eliminated. The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X of the Securities Exchange Commission. In accordance with those rules and regulations certain information and footnote disclosures normally included in the Comprehensive Financial Statements have been condensed or omitted pursuant to such rules and regulations. The Consolidated Balance Sheet as of December 29, 2023 was derived from the audited financial statements at that date, but does not include all the information and footnotes required by GAAP. These financial statements should be read in conjunction with the audited financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 29, 2023.

The Condensed Consolidated Financial Statements for the three months ended March 29, 2024 and March 31, 2023, in the opinion of management, include all adjustments, consisting only of normal recurring adjustments, necessary for a fair presentation of the Company’s financial condition and results of operations. The results of operations for the three months ended March 29, 2024 and March 31, 2023, are not necessarily indicative of the results to be expected for any other interim period or for the entire year.

Each of the Company’s fiscal reporting periods ends on the Friday nearest to the quarter ending date and generally consists of 13 weeks. Unless the context indicates otherwise “we,” “us,” the “Company,” and “STAAR” refer to STAAR Surgical Company and its consolidated subsidiaries.

Cloud-Based Software

As of March 29, 2024 and December 29, 2023, the Company recognized $4,947,000 and $2,406,000, respectively, of net capitalized cloud-based software implementation costs recorded within Other assets on the Condensed Consolidated Balance Sheets. As of March 29, 2024, these assets are not currently placed into service. No amortization of capitalized cloud-based software implementation costs were recognized during the three months ended March 29, 2024 and March 31, 2023.

Vendor Concentration

There was one vendor that accounted for over 12% of the Company’s consolidated accounts payable as of March 29, 2024.

Recent Accounting Pronouncements Not Yet Adopted

In November 2023, the Financial Accounting Standards Board (“FASB”) issued ASU 2023-07, “Segment Reporting (Topic 280).” ASU 2023-07 improves reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses. The amendments (a) disclose significant segment expenses regularly provided to the chief operating decision maker (“CODM”), (b) disclose an amount for other segment items by reportable segment and description of its composition, (c) extend certain annual disclosures to interim periods, (d) clarify single reportable segment entities must apply Topic 280 in its entirety, (e) permit more than one measure of segment profit or loss to be reported under certain conditions and (f) require disclosure of the title and position of the CODM. ASU 2023-07 is effective for fiscal years beginning after December 15, 2023 and interim periods within fiscal years beginning after December 15, 2024. Early adoption is permitted. The Company will adopt the annual disclosure requirements of ASU 2023-07 as of beginning of fiscal year 2024 and will adopt the interim disclosure requirements beginning fiscal year 2025. The Company is currently evaluating the disclosure requirements and its effect on the Condensed Consolidated Financial Statements.

In December 2023, the FASB issued ASU 2023-09, “Income Taxes (Topic 740).” ASU 2023-09 improves the transparency about income tax information through improvements to income tax disclosures primarily related to the rate reconciliation and income taxes paid information. It also includes certain other amendments to improve the effectiveness of income tax disclosures regarding (a) income or loss from continuing operations disaggregated between domestic and foreign and (b) income tax expense or benefit from continuing operations disaggregated by federal, state and foreign. ASU 2023-09 is effective for annual periods beginning after December 15, 2024. The Company will adopt ASU 2023-09 at the beginning of fiscal year 2025. The Company is currently evaluating the disclosure requirements and its effect on the Condensed Consolidated Financial Statements.

STAAR SURGICAL COMPANY

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)

Note 2 — Investments Available for Sale

Investments available for sale (“AFS”) and the related fair value measurement consisted of the following (dollars in thousands):


	March 29, 2024
										Fair Value Measurements
	Amortized Cost		Unrealized Gains		Unrealized Losses			Estimated Fair Value		Level 1		Level 2
Commercial paper	$	4,522	$	3	$	(1	)	$	4,524	$	—	$	4,524
Certificates of deposit		2,017		2		—			2,019		—		2,019
U.S. Treasury securities		15,432		—		(78	)		15,354		15,354		—
U.S. agency securities		1,732		—		(3	)		1,729		—		1,729
Corporate debt securities		4,462		4		(4	)		4,462		—		4,462
Total investments AFS	$	28,165	$	9	$	(86	)	$	28,088	$	15,354	$	12,734

	December 29, 2023
										Fair Value Measurements
	Amortized Cost		Unrealized Gains		Unrealized Losses			Estimated Fair Value		Level 1		Level 2
Commercial paper	$	7,720	$	9	$	—		$	7,729	$	—	$	7,729
Certificates of deposit		3,716		4		—			3,720		—		3,720
U.S. Treasury securities		23,036		3		(56	)		22,983		22,983		—
U.S. agency securities		3,423		—		(4	)		3,419		—		3,419
Corporate debt securities		11,538		12		(10	)		11,540		—		11,540
Total investments AFS	$	49,433	$	28	$	(70	)	$	49,391	$	22,983	$	26,408

The Company obtains the fair value from third-party pricing services. The pricing services utilize industry standard valuation models, including both income and market-based approaches and observable market inputs to determine value. These observable market inputs include reportable trades, benchmark yields, credit spreads, broker/dealer quotes, bids, offers and other industry and economic events.

The Company assessed each debt security with gross unrealized losses for impairment. As part of that assessment, the Company concluded that it does not intend to sell and it is more-likely-than-not that the Company will not be required to sell, prior to the recovery of the amortized cost basis. The Company did not recognize impairment for the three months ended March 29, 2024.

The following table shows the fair value of investments AFS by contractual maturity (dollars in thousands):


	As of March 29, 2024
	Within one year		After one year through five years		Total
Commercial paper	$	4,524	$	—	$	4,524
Certificates of deposit		2,019		—		2,019
U.S. Treasury securities		9,816		5,538		15,354
U.S. agency securities		1,729		—		1,729
Corporate debt securities		3,037		1,425		4,462
Total investments AFS	$	21,125	$	6,963	$	28,088

STAAR SURGICAL COMPANY

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)

Note 2 — Investments Available for Sale (Continued)

During the three months ended March 31, 2023, one of the Company’s investments AFS was the subject of a downgraded credit rating. The Company sold its investments of $600,000 following the downgrade. The Company recognized a realized gain upon sale of $2,000 during the three months ended March 31, 2023.

Note 3 — Inventories

Inventories, net are stated at the lower of cost and net realizable value, determined on a first-in, first-out basis and consisted of the following (in thousands):


	March 29, 2024			December 29, 2023
Raw materials and purchased parts	$	9,591		$	9,766
Work in process		6,097			5,722
Finished goods		25,642			23,150
Total inventories, gross		41,330			38,638
Less inventory reserves		(2,749	)		(3,508	)
Total inventories, net	$	38,581		$	35,130

Note 4 — Prepayments, Deposits, and Other Current Assets

Prepayments, deposits, and other current assets consisted of the following (in thousands):


	March 29, 2024		December 29, 2023
Prepayments and deposits	$	7,817	$	6,216
Prepaid insurance		1,968		2,314
Prepaid marketing costs		2,647		2,141
Consumption tax receivable		766		820
Value added tax (VAT) receivable		2,323		2,456
BVG (Swiss Pension) prepayment		1,416		23
Other(1)		444		739
Total prepayments, deposits and other current assets	$	17,381	$	14,709

(1)

No individual category in “other current assets” exceeds 5% of the total prepayments, deposits and other current assets.

Note 5 — Property, Plant and Equipment

Property, plant and equipment, net consisted of the following (in thousands):


	March 29, 2024			December 29, 2023
Machinery and equipment	$	32,547		$	30,874
Computer equipment and software		8,511			8,495
Furniture and fixtures		4,703			4,122
Leasehold improvements		11,736			10,780
Construction in process		45,149			40,364
Total property, plant and equipment, gross		102,646			94,635
Less accumulated depreciation		(30,309	)		(27,800	)
Total property, plant and equipment, net	$	72,337		$	66,835

STAAR SURGICAL COMPANY

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)

Note 6 – Other Current Liabilities

Other current liabilities consisted of the following (in thousands):


	March 29, 2024		December 29, 2023
Accrued salaries and wages	$	10,440	$	12,519
Accrued bonuses		2,325		3,456
Accrued insurance		1,460		2,315
Income taxes payable		9,708		10,848
Marketing obligations		2,097		1,874
Other(1)		9,231		9,926
Total other current liabilities	$	35,261	$	40,938

(1)

No individual category in “Other” exceeds 5% of the other current liabilities.

Note 7 – Leases

Finance Leases

The Company entered into finance leases primarily related to purchases of equipment used for manufacturing, computer-related equipment or furniture and fixtures. These finance leases are two to five years in length and have fixed payment amounts for the term of the contract and have options to purchase the assets at the end of the lease term. Supplemental balance sheet information related to finance leases consisted of the following (dollars in thousands):


	March 29, 2024			December 29, 2023
Computer equipment and software	$	6		$	6
Furniture and fixtures		475			475
Finance lease right-of-use assets, gross		481			481
Less accumulated depreciation		(335	)		(298	)
Finance lease right-of-use assets, net	$	146		$	183

Current finance lease obligations	$	166		$	165
Long-term finance lease obligations		—			42
Total finance lease liability	$	166		$	207
Weighted-average remaining lease term (in years)		1.0			1.3
Weighted-average discount rate		4.25	%		4.24	%

Supplemental cash flow information related to finance leases consisted of the following (dollars in thousands):


	Three Months Ended
	March 29, 2024		March 31, 2023
Amortization of finance lease right-of-use asset	$	37	$	39
Interest on finance lease liabilities		2		4
Cash paid for amounts included in the measurement of finance lease liabilities:
Operating cash flows		2		4
Financing cash flows		40		42

STAAR SURGICAL COMPANY

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)

Note 7 – Leases (Continued)

Operating Leases

The Company entered into operating leases primarily related to real property (office, manufacturing and warehouse facilities), automobiles and copiers. These operating leases are two to ten years in length with options to extend. The Company does not include any lease extensions in the initial valuation unless the Company was reasonably certain to extend the lease. Depending on the lease, there are those with fixed payment amounts for the entire length of the contract or payments which increase periodically as noted in the contract or increased at an inflation rate indicator. For operating leases that increase using an inflation rate indicator, the Company used the inflation rate at the time the lease was entered into for the length of the lease term. Supplemental balance sheet information related to operating leases consisted of the following (dollars in thousands):


	March 29, 2024			December 29, 2023
Machinery and equipment	$	701		$	735
Computer equipment and software		445			446
Real property		42,291			40,869
Operating lease right-of-use assets, gross		43,437			42,050
Less accumulated depreciation		(8,837	)		(7,663	)
Operating lease right-of-use assets, net	$	34,600		$	34,387

Current operating lease obligations	$	4,403		$	4,202
Long-term operating lease obligations		31,126			31,425
Total operating lease liability	$	35,529		$	35,627
Weighted-average remaining lease term (in years)		7.2			7.3
Weighted-average discount rate		5.51	%		5.48	%

Supplemental cash flow information related to operating leases was as follows (dollars in thousands):


	Three Months Ended
	March 29, 2024		March 31, 2023
Operating lease cost	$	2,223	$	1,107
Cash paid for amounts included in the measurement of operating lease liabilities:
Operating cash flows		1,384		1,173
Right-of-use assets obtained in exchange for new operating lease liabilities		1,495		1,909

Future Maturities of Lease Liabilities

Estimated future maturities of lease liabilities under operating and finance leases having initial or remaining non-cancelable lease terms more than one year as of March 29, 2024 is as follows (in thousands):


As of March 29, 2024 12 Months Ended	Operating Leases			Finance Leases
March 2025	$	6,433		$	170
March 2026		5,379			—
March 2027		5,508			—
March 2028		5,633			—
March 2029		5,743			—
Thereafter		16,733			—
Total future minimum lease payments	$	45,429		$	170
Less amounts representing interest		(9,900	)		(4	)
Total lease liability	$	35,529		$	166

STAAR SURGICAL COMPANY

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)

Note 8 — Income Taxes

The Company recorded an income tax provision as follows (in thousands):


	Three Months Ended
	March 29, 2024		March 31, 2023
Provision for income taxes	$	1,128	$	2,009

The effective tax rates for the three months ended March 29, 2024 and March 31, 2023 were (51.0)% and 42.6%, respectively. The Company’s effective tax rates differ from the U.S. federal statutory rate of 21% for the three months ended March 29, 2024 and March 31, 2023, respectively, primarily due to the income tax expense generated in foreign jurisdictions.

Note 9 – Defined Benefit Pension Plans

The Company has defined benefit plans covering employees of its Switzerland and Japan operations. The following table summarizes the components of net periodic pension cost recorded for the Company’s defined benefit pension plans (in thousands):


	Three Months Ended
	March 29, 2024			March 31, 2023
Service cost(1)	$	325		$	249
Interest cost(2)		84			87
Expected return on plan assets(2)		(132	)		(87	)
Prior service credit(2),(3)		(45	)		(45	)
Actuarial loss recognized in current period(2),(3)		28			(7	)
Net periodic pension cost	$	260		$	197

(1)

Recognized in selling general and administrative expenses on the Condensed Consolidated Statements of Income.

(2)

Recognized in other expense, net on the Condensed Consolidated Statements of Income.

(3)

Amounts reclassified from accumulated other comprehensive income (loss).

The Company currently is not required to and does not make contributions to its Japan pension plan. The Company’s contributions to its Swiss pension plan are as follows (in thousands):


	Three Months Ended
	March 29, 2024		March 31, 2023
Employer contribution	$	267	$	217

STAAR SURGICAL COMPANY

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)

Note 10 — Stockholders’ Equity

Incentive Plan

The Company maintains an Amended and Restated Omnibus Equity Incentive Plan (the “Equity Plan”). The Equity Plan allows for awards of stock options, stock appreciation rights, restricted stock, restricted stock units (“RSUs”) and performance stock units (“PSUs”) and other stock- and cash-based awards, including awards that are subject to service-based and performance-based vesting conditions. As of March 29, 2024, the Company had outstanding grants of stock options, restricted stock awards, RSUs and PSUs.

Stock option granted under the Equity Plan are granted at fair market value on the date of grant, become exercisable generally over a three-year period, or as determined by the Board of Directors, and expire over periods not exceeding 10 years from the date of grant. Certain stock options and stock-based awards provide for accelerated vesting if there is a change in control and pre-established financial metrics are met (as defined in the Equity Plan). Grants of restricted stock outstanding under the Equity Plan generally vest over periods of one to three years. Grants of RSUs and PSUs outstanding under the Equity Plan generally vest based on service, performance, or a combination of both. On June 15, 2023, stockholders approved a proposal to increase the number of shares under the plan by 2,170,000 shares, for a total of 20,205,000 shares. As of March 29, 2024, there were 962,029 shares available for grant under the Equity Plan.

Stock-Based Compensation

The cost that has been charged against income for stock-based compensation is set forth below (in thousands):


	Three Months Ended
	March 29, 2024		March 31, 2023
Employee stock options	$	3,173	$	2,977
Restricted stock		28		67
RSUs		2,312		1,601
PSUs		685		1,106
Nonemployee stock options		141		314
Total stock-based compensation expense	$	6,339	$	6,065

The Company recorded stock-based compensation costs in the following categories (in thousands):


	Three Months Ended
	March 29, 2024		March 31, 2023
Cost of sales	$	298	$	149
General and administrative		3,075		3,363
Selling and marketing		1,210		857
Research and development		1,756		1,696
Total stock-based compensation expense, net		6,339		6,065
Amounts capitalized as part of inventory		337		369
Total stock-based compensation expense, gross	$	6,676	$	6,434

As of March 29, 2024, total unrecognized compensation cost related to non-vested stock-based compensation arrangements were as follows (in thousands):


	March 29, 2024
Stock options	$	28,392
Restricted stock, RSUs and PSUs		43,614
Total unrecognized stock-based compensation cost	$	72,006

The cost is expected to be recognized over a weighted-average period of approximately two years.

STAAR SURGICAL COMPANY

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)

Note 10 — Stockholders’ Equity (Continued)

Assumptions

The fair value of each stock option award is estimated on the date of grant using a Black-Scholes option valuation model applying the weighted-average assumptions noted in the following table. Expected volatilities are based on historical volatility of the Company’s stock. The expected term of stock options granted is derived from the historical exercises and post-vesting cancellations and represents the period of time that stock options granted are expected to be outstanding. The Company has calculated a 8% estimated forfeiture rate based on historical forfeiture experience. The risk-free rate is based on the U.S. Treasury yield curve corresponding to the expected term at the time of the grant.


	Three Months Ended
	March 29, 2024			March 31, 2023
Expected dividend yield		0	%		0	%
Expected volatility		59	%		60	%
Risk-free interest rate		4.16	%		3.96	%
Expected term (in years)		5.29			5.05

Stock Options

A summary of stock option activity under the Equity Plan for three months ended March 29, 2024 is presented below:


	Stock Options (in 000’s)			Weighted- Average Exercise Price		Weighted- Average Remaining Contractual Term (years)		Aggregate Intrinsic Value (in 000’s)
Outstanding at December 29, 2023		2,630		$	46.38
Granted		523			37.21
Exercised		(187	)		28.50
Forfeited or expired		(83	)		76.05
Outstanding at March 29, 2024		2,883		$	45.01		6.98	$	16,386
Exercisable at March 29, 2024		1,668		$	42.93		5.41	$	15,090

Restricted Stock, Restricted Stock Units and Performance Stock Units

A summary of restricted stock, RSU and PSU activity under the Equity Plan for the three months ended March 29, 2024 is presented below (shares in thousands):


	Restricted Stock			RSUs			PSUs
Unvested at December 29, 2023		14			401			56
Granted		—			415			390
Vested		—			(110	)		(24	)
Forfeited or expired		(4	)		(1	)		(4	)
Unvested at March 29, 2024		10			705			418

STAAR SURGICAL COMPANY

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)

Note 11 - Commitments and Contingencies

Litigation and Claims

From time to time, the Company is involved in various legal proceedings and other matters arising in the normal course of business. These legal proceedings and other matters may relate to, among other things, contractual rights and obligations, employment matters, or claims of product liability. The Company maintains insurance coverage for various matters, including product liability and certain securities claims. While the Company does not believe that any of the claims known is likely to have a material adverse effect on the Company’s financial condition or results of operations, new claims or unexpected results of existing claims could lead to significant financial harm.

Note 12 — Basic and Diluted Net Income (Loss) Per Share

The following table sets forth the computation of basic and diluted net income per share (in thousands except per share amounts):


	Three Months Ended
	March 29, 2024			March 31, 2023
Numerator:
Net income (loss)	$	(3,339	)	$	2,710
Denominator:
Weighted average common shares:
Common shares outstanding		48,907			48,251
Less: Unvested restricted stock		—			(4	)
Denominator for basic calculation		48,907			48,247
Weighted average effects of potentially diluted common stock:
Stock options		—			1,116
Unvested restricted stock		—			3
RSUs		—			81
PSUs		—			53
Denominator for diluted calculation		48,907			49,500
Net income (loss) per share:
Basic	$	(0.07	)	$	0.06
Diluted	$	(0.07	)	$	0.05

Because the Company had a net loss for the three months ended March 29, 2024, the number of diluted shares is equal to the number of basic shares. The following table sets forth (in thousands) the weighted average number of options to purchase shares of common stock, restricted stock, RSUs and PSUs with either exercise prices or unrecognized compensation cost per share greater than the average market price per share of the Company’s common stock, which were not included in the calculation of diluted per share amounts because the effects would be anti-dilutive.


	Three Months Ended
	March 29, 2024		March 31, 2023
Stock options		4,316		1,392
Restricted stock, RSUs and PSUs		495		15
Total		4,811		1,407

STAAR SURGICAL COMPANY

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)

Note 13 — Disaggregation of Sales, Geographic Sales and Product Sales

In the following tables, sales are disaggregated by category, sales by geographic market and sales by product data. The following breaks down sales into the following categories (in thousands):


	Three Months Ended
	March 29, 2024		March 31, 2023
Non-consignment sales	$	71,764	$	67,163
Consignment sales		5,592		6,365
Total net sales	$	77,356	$	73,528

The Company markets and sells its products in over 75 countries and conducts its manufacturing in the United States. Other than China and Japan, the Company does not conduct business in any country in which its sales exceed 10% of worldwide consolidated net sales. Sales are attributed to countries based on location of customers. The composition of the Company’s net sales to unaffiliated customers was as follows (in thousands):


	Three Months Ended
	March 29, 2024		March 31, 2023
Domestic	$	4,935	$	4,551
Foreign:
China		38,549		35,090
Japan		10,456		10,936
Other(1)		23,416		22,951
Total foreign sales		72,421		68,977
Total net sales	$	77,356	$	73,528

(1)

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

100% of the Company’s sales are generated from the ophthalmic surgical product segment and the chief operating decision maker 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. Historically the Company marketed and sold cataract intraocular lenses (“IOLs”) and related injectors and injector parts. The Company phased out sales of such products in fiscal 2023, and does not expect to sell any such products in fiscal 2024 or thereafter. The composition of the Company’s net sales by product line was as follows (in thousands):


	Three Months Ended
	March 29, 2024		March 31, 2023
ICLs	$	77,151	$	70,625
Other product sales:
Cataract IOLs		—		1,476
Other surgical products(1)		205		1,427
Total other product sales		205		2,903
Total net sales	$	77,356	$	73,528

(1) Other surgical products include delivery systems and normal recurring sales adjustments such as sales return allowances.

The Company’s China distributors accounted for 49% and 48% of net sales for the three months ended March 29, 2024 and March 31, 2023, respectively. As of March 29, 2024 and December 29, 2023, the Company’s China distributors accounted for 54% and 70%, respectively, of consolidated trade receivables.

ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

The matters addressed in this Item 2 that are not historical information constitute “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended (“Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended (“Exchange Act”), and the Private Securities Litigation Reform Act of 1995, and is subject to the safe harbor created therein. In some cases readers can recognize forward-looking statements by the use of words like “anticipate,” “estimate,” “expect,” “project,” “intend,” “may,” “plan,” “believe,” “will,” “should,” “could,” “forecast,” “potential,” “continue,” “ongoing” (or the negative of those words and similar words or expressions), although not all forward-looking statements contain these words. In particular, these include statements regarding the intent, belief or current expectations of the Company and its management regarding any of the following: any projections of or guidance as to future earnings, revenue, sales, profit margins, expense rate, cash, effective tax rate, product mix, capital expense or any other financial items; the expected impact of the COVID-19 pandemic and related public health measures (including but not limited to their impact on sales, operations or clinical trials globally); the plans, strategies, and objectives of management for future operations or prospects for achieving such plans; statements regarding new, existing, or improved products, including but not limited to, expectations for success of new, existing, and improved products in the U.S. or international markets or government approval of a new or improved products; commercialization of new or improved products; future economic conditions or size of market opportunities; expected costs of operations; statements of belief, including as to achieving business plans for 2024 and beyond; expected regulatory activities and approvals, product launches, and any statements of assumptions underlying any of the foregoing.

Although we believe that the expectations reflected in these forward-looking statements are reasonable, we caution investors and prospective investors that any such forward-looking statements are not guarantees of future performance and involve risks, uncertainties, assumptions and other factors, which if they do not materialize or prove correct, could cause actual results to differ materially from those expressed or implied by such forward-looking statements. We caution you not to place undue reliance on these forward-looking statements and to note they speak only as of the date hereof. Factors that could cause actual results to differ materially from those set forth in the forward-looking statements include, without limitation, those described in our Annual Report on Form 10-K in “Item 1A. Risk Factors” filed on February 27, 2024. We disclaim any intention or obligation to update or review these financial projections or forward-looking statements due to new information or other events except as required by law.

The following discussion should be read in conjunction with the Company’s unaudited Condensed Consolidated Financial Statements, including the related notes, provided in this report.

We intend to use our website as a means of disclosing material non-public information and for complying with our disclosure obligations under Regulation FD. Such disclosures will be included on our website in the ‘Investor Relations’ sections. Accordingly, investors should monitor such portions of our website, in addition to following our press releases, SEC filings and public conference calls and webcasts.

Overview

STAAR Surgical Company designs, develops, manufactures, and sells implantable lenses for the eye and accessory delivery systems used to deliver the lenses into the eye. We are the leading manufacturer of phakic implantable lenses used worldwide in corrective or “refractive” surgery. We have been dedicated solely to ophthalmic surgery for over 40 years. Our goal is to position our refractive lenses throughout the world as primary and premium solutions for patients seeking visual freedom from wearing eyeglasses or contact lenses while achieving excellent visual acuity through refractive vision correction. We generate worldwide revenue almost exclusively from sales of our implantable Collamer® lenses, or “ICLs.” Our ICLs are made from Collamer, which is a proprietary collagen copolymer material created and exclusively used by STAAR to make our lenses soft, flexible and biocompatible with the eye. Our ICLs are phakic lenses, meaning that they are implanted into the eye without removing the eye’s natural crystalline lens. This distinguishes an ICL procedure from other refractive procedures, as it does not involve the removal of corneal eye tissue. All of our ICLs are foldable, which allows the surgeon to insert them into the eye through a small incision during minimally invasive surgery. Further, while ICLs are intended to be permanent, our ICLs are reversible lens implants, meaning they can be removed by a doctor if desired.

STAAR employs a commercialization strategy that strives for sustainable profitable growth. Our growth strategy includes making our complete ICL product line available in our existing geographic markets and expanding into attractive markets where we do not sell our products today. In addition, we are focused on driving awareness of the ICL procedure and the clinical benefits of our ICLs, and providing surgeon training, support and education, particularly in our newer markets.

Critical Accounting Estimates

This Management’s Discussion and Analysis of Financial Condition and Results of Operations discusses and analyzes data in our unaudited Condensed Consolidated Financial Statements provided in this report, which we have prepared in accordance with U.S. generally accepted accounting principles. Preparation of these financial statements requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenue and expenses, and related disclosure of contingent assets and liabilities. Management bases its estimates on historical experience and on various other assumptions that it believes to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Senior management has discussed the development, selection and disclosure of these estimates with the Audit Committee of our Board of Directors. Actual conditions may differ from our assumptions and actual results may differ from our estimates.

Management believes that there have been no significant changes during the three months ended March 29, 2024 to the items that we disclosed as our critical accounting estimates in Management’s Discussion and Analysis of Financial Condition and Results of Operations in our Annual Report on Form 10-K for the fiscal year ended December 29, 2023.

Results of Operations

The following table shows the percentage of our total sales represented by certain items reflected in our Condensed Consolidated Statements of Income for the periods indicated.


	Percentage of Net Sales for Three Months
	March 29, 2024			March 31, 2023
Net sales		100.0	%		100.0	%
Cost of sales		21.1	%		21.7	%
Gross profit		78.9	%		78.3	%
General and administrative		30.0	%		24.7	%
Selling and marketing		34.5	%		35.8	%
Research and development		17.3	%		14.0	%
Total selling, general and administrative		81.8	%		74.5	%
Operating income (loss)		(2.9	)%		3.8	%
Total other income, net		0.1	%		2.6	%
Income (loss) before income taxes		(2.8	)%		6.4	%
Provision for income taxes		1.5	%		2.7	%
Net income (loss)		(4.3	)%		3.7	%

Net Sales

The following table presents our net sales, by product (dollars in thousands):


	Three Months Ended				Percentage Change
	March 29, 2024		March 31, 2023		2024 vs. 2023
ICLs	$	77,151	$	70,625		9.2	%
Other product sales:
Cataract IOLs		—		1,476		(100.0	)%
Other surgical products		205		1,427		(85.6	)%
Total other product sales		205		2,903		(92.9	)%
Net sales	$	77,356	$	73,528		5.2	%

Net sales for the three months ended March 29, 2024 increased 5% from the same period of 2023. The increase in net sales was primarily due to increased ICL sales of $6.5 million, slightly offset by decreased other product sales of $2.7 million. Changes in foreign currency unfavorably impacted net sales by $1.0 million.

Total ICL sales for the three months ended March 29, 2024 increased 9% from the same period of 2023, with unit increase of 2%. The APAC region sales increased by 9%, with unit decrease of 1%, due to sales growth in India up 10%, Japan up 11% and China up 10%. The EMEA region sales increased 11% with unit growth up 22%, due to sales increases in our distributor markets up 35%, partially offset by direct markets down 5%. The Americas region sales increased 12%, with unit growth up

11%, primarily due to sales growth in the U.S. up 15% and Canada up 11%. Changes in foreign currency unfavorably impacted ICL sales by $1.0 million for the three months ended March 29, 2024. ICL sales represented 99.7% and 96.1% of our total sales for the three months ended March 29, 2024 and March 31, 2023, respectively.

Other product sales, includes cataract intraocular lenses (“IOLs”), delivery systems and normal recurring sales adjustments such as sales return allowances. As a result of third-party materials and supply chain challenges that affected our cataract IOLs and associated delivery devices, we have phased out sales of our cataract IOLs as we focus on growing our ICL business. During 2023, we stopped manufacturing cataract IOLs, and we do not plan to sell cataract IOLs in 2024. We do not expect this decision to have a significant impact to revenue growth in future years. Other product sales for the three months ended March 29, 2024, decreased 93% from the same period of 2023, due primarily to a reduction in cataract IOL sales and decreased sales of cataract IOL injector parts. Other product sales represented 0.3% and 3.9% of our total sales for the three months ended March 29, 2024 and March 31, 2023, respectively.

Gross Profit

The following table presents our gross profit and gross profit margin (dollars in thousands):


	Three Months Ended						Percentage Change
	March 29, 2024			March 31, 2023			2024 vs. 2023
Gross profit	$	61,035		$	57,562			6.0	%
Gross margin		78.9	%		78.3	%

Gross profit for the three months ended March 29, 2024 increased 6.0%, from the same period of 2023. Gross profit margin increased to 78.9% of revenue for the three months ended March 29, 2024 compared to 78.3% of revenue for the three months ended March 31, 2023, due primarily to product and country mix of ICL sales.

General and Administrative Expense

The following table presents our general and administrative expenses (dollars in thousands):


	Three Months Ended						Percentage Change
	March 29, 2024			March 31, 2023			2024 vs. 2023
General and administrative expense	$	23,228		$	18,098			28.3	%
Percentage of sales		30.0	%		24.7	%

General and administrative expenses for the three months ended March 29, 2024 increased 28.3% from the same period of 2023 due to increased outside services, facility costs and salary-related and payroll tax expenses.

Selling and Marketing Expense

The following table presents our selling and marketing expenses (dollars in thousands):


	Three Months Ended						Percentage Change
	March 29, 2024			March 31, 2023			2024 vs. 2023
Selling and marketing expense	$	26,708		$	26,354			1.3	%
Percentage of sales		34.5	%		35.8	%

Selling and marketing expenses for the three months ended March 29, 2024 increased 1.3% from the same period of 2023 due to increased salary-related and payroll tax expenses, trade shows and sales meetings expenses and bonus and stock-based compensation expenses, offset by decreased advertising and promotional activities and commission expenses.

Research and Development Expense

The following table presents our research and development expenses (dollars in thousands):


	Three Months Ended						Percentage Change
	March 29, 2024			March 31, 2023			2024 vs. 2023
Research and development expense	$	13,380		$	10,310			29.8	%
Percentage of sales		17.3	%		14.0	%

Research and development expenses for the three months ended March 29, 2024 increased 29.8% from the same period of 2023, due mainly to increased salary-related and payroll tax expenses and bonus and stock-based compensation expenses.

Other Expense, Net

The following table presents our other expenses, net (dollars in thousands):


	Three Months Ended						Percentage Change
	March 29, 2024			March 31, 2023			2024 vs. 2023
Other income, net	$	70		$	1,919			(96.4	)%
Percentage of sales		0.1	%		2.6	%

The decrease in other income, net for the three months ended March 29, 2024 and March 31, 2023, respectively, was due mainly to higher foreign exchange losses.

Income Taxes

The following table presents our income tax provision (dollars in thousands):


	Three Months Ended				Percentage Change
	March 29, 2024		March 31, 2023		2024 vs. 2023
Income tax provision	$	1,128	$	2,009		(43.9	)%

The effective tax rates for the three months ended March 29, 2024 and March 31, 2023 were (51.0)% and 42.6%, respectively. Our effective tax rates differ from the U.S. federal statutory rate of 21%, primarily due to the income tax expense generated in foreign jurisdictions.

Our future effective income tax rate depends on various factors, such as changes in tax laws, regulations, accounting principles, or interpretations thereof, and the geographic composition of our pre-tax income. We carefully monitor these factors and adjust our effective income tax rate accordingly.

Liquidity and Capital Resources

Our principal sources of liquidity are cash, cash equivalents, investments available for sale (“AFS”) and cash flow from operating activities. We believe these sources of liquidity will be sufficient to meet our anticipated cash needs, including working capital needs, capital expenditures and contractual obligations for at least 12 months from the issuance date of the financial statements. We expect that cash flow from operating activities may fluctuate in future periods as a result of a number of factors, including fluctuations in our operating results, working capital needs, capital expenditures, and capital deployment decisions. In addition, future capital requirements will depend on many factors including our growth rate in net sales, the timing and extent of spending to support our growth strategy, the expansion of selling and marketing activities, the timing of introductions of new products, as well as global macroeconomic factors. Our financial condition at March 29, 2024 and December 29, 2023 included the following (in thousands):


	March 29, 2024		December 29, 2023		2024 vs. 2023
Cash and cash equivalents	$	224,024	$	183,038	$	40,986
Investments available for sale		28,088		49,391		(21,303	)
Total	$	252,112	$	232,429	$	19,683

Current assets	$	365,715	$	365,269	$	446
Current liabilities		62,674		65,036		(2,362	)
Working capital	$	303,041	$	300,233	$	2,808

Cash and cash equivalents include cash and balances in deposits and money market accounts held at banks and financial institutions. Our investment policy primary objective is capital preservation while maximizing our return on investment. Investments available for sale may include U.S. government and corporate debt securities, commercial paper, certain certificates deposit and related security types, that are rated by two nationally recognized statistical rating organizations with minimum investment grade ratings of AAA to A-/A-1+ to A-2, or the equivalent. The maturity of individual investments may not extend 24 months from the date of purchase. There are also limits to the amount of credit exposure in any given security type. We do not have any off-balance sheet arrangements.

A summary of cash flows for the three months ended March 29, 2024 and March 31, 2023 was as follows (in thousands):


	Three Months Ended
	March 29, 2024			March 31, 2023
Cash flows from:
Operating activities	$	21,680		$	(5,094	)
Investing activities		16,187			9,933
Financing activities		4,056			(1,361	)
Effect of exchange rate changes		(937	)		10
Net increase in cash and cash equivalents		40,986			3,488
Cash and cash equivalents, at beginning of year		183,038			86,480
Cash and cash equivalents, at end of year	$	224,024		$	89,968

For the three months ended March 29, 2024 net cash provided by operating activities consisted of $16.8 million in working-capital changes and $8.2 million in non-cash items, partially offset by the net loss of $3.3 million. For the three months ended March 31, 2023 net cash used in operating activities consisted of $14.3 million in working-capital changes, partially offset by $6.5 million in non-cash items and net income of $2.7 million.

For the three months ended March 29, 2024, net cash provided by investment activities was $16.2 million which consisted of $21.4 million of proceeds from the sale or maturity of investments AFS, partially offset by $5.2 million in purchases of property, plant and equipment. For the three months ended March 31, 2023, net cash provided by investment activity was $9.9 million which consisted of $40.3 million of proceeds from the sale or maturity of investments AFS, partially offset by $27.4 million in purchases of investments AFS and $2.9 million in purchases of property, plant and equipment.

Net cash provided by financing activities for the three months ended March 29, 2024 was $4.1 million which consisted of $5.3 million of proceeds from the exercise of stock options, partially offset by $1.2 million to repurchase of employee common stock for taxes withheld. For the three months ended March 31, 2023, net cash used in financing activities was $1.4 million which consisted of $1.8 million to repurchase of employee common stock for taxes withheld.

Commitments

Employment Agreements

The Company’s Chief Executive Officer entered into an employment agreement with the Company, effective January 1, 2023. He and certain officers have as provisions of their agreements certain rights, including continuance of cash compensation and benefits, upon a “change in control,” which may include an acquisition of substantially all of its assets, or termination “without cause or for good reason” as defined in the employment agreements.

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

During the three months ended March 29, 2024, there have been no material changes in the Company’s qualitative and quantitative market risk since the disclosure in the Company’s Annual Report on Form 10-K for the year ended December 29, 2023.

ITEM 4. CONTROLS AND PROCEDURES

Disclosure Controls and Procedures

As of the end of the period covered by this report, we carried out an evaluation, under the supervision and with the participation of our management, including our CEO and CFO, of the effectiveness of the design and operation of the disclosure controls and procedures of the Company. Based on that evaluation, our CEO and CFO concluded, as of the end of the period covered by this quarterly report on Form 10-Q, that our disclosure controls and procedures were effective. For purposes of this statement, the term “disclosure controls and procedures” means controls and other procedures of the Company that are designed to ensure that information required to be disclosed by the Company in the reports that it files or submits under the Securities Exchange Act (15 U.S.C. 78a et seq.) is recorded, processed, summarized and reported, within the time periods specified in the Securities and Exchange Commission’s rules and forms. Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed by the Company in the reports that it files or submits under the Act is accumulated and communicated to the Company’s management, including its principal executive and principal financial officers, or persons performing similar functions, as appropriate to allow timely decisions regarding required disclosure.

Our management, including the CEO and the CFO, do not expect that our disclosure controls and procedures or our internal control over financial reporting will necessarily prevent all fraud or material errors. An internal control system, no matter how well conceived and operated, can provide only reasonable, not absolute, assurance that the objectives of the control system are met. Further, the design of a control system must reflect the fact that there are resource constraints, and the benefits of controls must be considered relative to their costs. Because of the inherent limitations on all internal control systems, our internal control system can provide only reasonable assurance of achieving its objectives and no evaluation of controls can provide absolute assurance that all control issues and instances of fraud, if any, within our Company have been detected. These inherent limitations include the realities that judgments in decision-making can be faulty, and that breakdowns can occur because of simple error or mistake. Additionally, controls can be circumvented by the individual acts of some persons, by collusion of two or more people, or by management override of the control. The design of any system of internal control is also based in part upon certain assumptions about the likelihood of future events, and can provide only reasonable, not absolute, assurance that any design will succeed in achieving its stated goals under all potential future conditions. Over time, controls may become inadequate because of changes in circumstances, or the degree of compliance with the policies and procedures may deteriorate.

Changes in Internal Control over Financial Reporting

There were no changes in our internal control over financial reporting during the quarter ended March 29, 2024 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

PART II – OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

ITEM 1A. RISK FACTORS

Our short and long-term success is subject to many factors that are beyond our control. Investors and prospective investors should consider carefully information contained in this report and the risks and uncertainties described in “Part I—Item 1A—Risk Factors” of the Company’s Form 10-K for the fiscal year ended December 29, 2023. Such risks and uncertainties could materially adversely affect our business, financial condition or operating results.

ITEM 4. MINE SAFETY DISCLOSURES

Not Applicable.

ITEM 5. OTHER INFORMATION

(c)

Trading Plans

During the quarter ended March 29, 2024, no director or officer adopted or terminated:

(i)

Any contract, instruction or written plan for the purchase or sale of securities of the Company intended to satisfy the affirmative defense conditions of Rule 10b5-1(c); and

(ii)

Any “non-Rule 10b5-1 trading arrangement” as defined in paragraph (c) of item 408(a) of Regulation S-K.

ITEM 6. EXHIBITS


Exhibit Number		Description

3.1		Amended and Restated Certificate of Incorporation (incorporated by reference to Appendix 2 of the Company’s Proxy Statement on Form DEF 14A as filed with the Commission on April 26, 2018).

3.2		Amended and Restated Bylaws (incorporated by reference to Exhibit 3.1 to the Company’s Current Report on Form 8-K as filed with the Commission on February 1, 2023).

4.1		Form of Certificate for Common Stock, par value $0.01 per share (incorporated by reference to Exhibit 4.1 to Amendment No. 1 to the Company’s Registration Statement on Form 8 A/A as filed with the Commission on April 18, 2003).

31.1	*	Certifications Pursuant to Rule 13a-14(a) of the Securities Exchange Act of 1934, Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

31.2	*	Certifications Pursuant to Rule 13a-14(a) of the Securities Exchange Act of 1934, Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

32.1	**	Certification Pursuant to 18 U.S.C. Section 1350, Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. **

101	*	Financial statements from the quarterly report on Form 10-Q of STAAR Surgical Company for the quarter ended March 29, 2024 formatted in Inline Extensible Business Reporting Language (iXBRL), are filed herewith and include: (i) the Condensed Consolidated Balance Sheets, (ii) the Condensed Consolidated Statements of Income, (iii) the Condensed Consolidated Statements of Comprehensive Income, (iv) the Condensed Consolidated Statements of Stockholders’ Equity, (v) the Condensed Consolidated Statements of Cash Flows, and (vi) the Notes to Condensed Consolidated Financial Statements tagged as blocks of text.

104		The cover page from the Company’s Quarterly Report on Form 10-Q for the quarter ended March 29, 2024, has been formatted in Inline XBRL with applicable taxonomy extension information contained in Exhibit 101.


*			Filed herewith.

**			Certification furnished herewith solely to accompany this annual report pursuant to 18 U.S.C. Section 1350. Certification is not deemed “filed” for purposes of Section 18 of the Exchange Act or otherwise subject to the liability of that section. Such certification is not deemed to be incorporated by reference into any filing under the Securities Act or the Exchange Act except to the extent that the registrant specifically incorporates it by reference.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.


		STAAR SURGICAL COMPANY

Dated:	May 7, 2024	By:	/s/ PATRICK F. WILLIAMS
			Patrick F. Williams
			Chief Financial Officer
			(on behalf of the Registrant and as its principal financial officer)

Exhibit 31.1

Certifications

I, Thomas G. Frinzi, certify that:

1. I have reviewed this quarterly report on Form 10-Q of STAAR Surgical Company;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of registrant’s board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.


Dated:	May 7, 2024	/s/ THOMAS G. FRINZI
		Thomas G. Frinzi
		President, Chief Executive Officer, and Chair
		of the Board (principal executive officer)

Exhibit 31.2

Certifications

I, Patrick F. Williams, certify that:

1. I have reviewed this quarterly report on Form 10-Q of STAAR Surgical Company;

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.


Dated:	May 7, 2024	/s/ PATRICK F. WILLIAMS
		Patrick F. Williams
		Chief Financial Officer
		(principal financial officer)

Exhibit 32.1

Certification pursuant to 18 U.S.C. Section 1350,

As adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

In connection with the filing of the Quarterly Report on Form 10-Q for the period ended March 29, 2024 (the “Report”) by STAAR Surgical Company (“Registrant”), each of the undersigned hereby certifies that:

1. The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended, and

2. The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of Registrant as of and for the periods presented in the Report.


Dated:	May 7, 2024	/s/ THOMAS G. FRINZI
		Thomas G. Frinzi
		President, Chief Executive Officer, Chair
		of the Board (principal executive officer)


Dated:	May 7, 2024	/s/ PATRICK F. WILLIAMS
		Patrick F. Williams
		Chief Financial Officer
		(principal financial officer)

A signed original of this written statement required by 18 U.S.C. Section 1350 has been provided to STAAR Surgical Company and will be furnished to the Securities and Exchange Commission or its staff upon request.

Document And Entity Information - shares	3 Months Ended
Document And Entity Information - shares	Mar. 29, 2024	May 02, 2024
Cover [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Mar. 29, 2024
Document Fiscal Year Focus	2024
Document Fiscal Period Focus	Q1
Entity Registrant Name	STAAR Surgical Co
Entity Central Index Key	0000718937
Current Fiscal Year End Date	--12-27
Entity Filer Category	Large Accelerated Filer
Trading Symbol	STAA
Entity Common Stock, Shares Outstanding		49,131,110
Entity Emerging Growth Company	false
Entity Small Business	false
Entity Current Reporting Status	Yes
Entity Shell Company	false
Entity Interactive Data Current	Yes
Entity File Number	0-11634
Title of 12(b) Security	Common
Security Exchange Name	NASDAQ
Entity Tax Identification Number	95-3797439
Entity Address, Address Line One	25651 Atlantic Ocean Drive
Entity Address, City or Town	Lake Forest
Entity Address, State or Province	CA
Entity Address, Postal Zip Code	92630
City Area Code	626
Local Phone Number	303-7902
Entity Incorporation, State or Country Code	DE
Document Quarterly Report	true
Document Transition Report	false

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Mar. 29, 2024	Dec. 29, 2023
Current assets:
Cash and cash equivalents	$ 224,024	$ 183,038
Investments available for sale	21,125	37,688
Accounts receivable trade, net of allowance for credit losses of $187 and $191, respectively	64,604	94,704
Inventories, net	38,581	35,130
Prepayments, deposits and other current assets	17,381	14,709
Total current assets	365,715	365,269
Investments available for sale	6,963	11,703
Property, plant and equipment, net	72,337	66,835
Finance lease right-of-use assets, net	146	183
Operating lease right-of-use assets, net	34,600	34,387
Goodwill	1,786	1,786
Deferred income taxes	5,125	5,190
Other assets	5,863	3,339
Total assets	492,535	488,692
Current liabilities:
Accounts payable	16,560	13,557
Obligations under finance leases	166	165
Obligations under operating leases	4,403	4,202
Allowance for sales returns	6,284	6,174
Other current liabilities	35,261	40,938
Total current liabilities	62,674	65,036
Obligations under finance leases		42
Obligations under operating leases	31,126	31,425
Deferred income taxes	1,074	1,077
Asset retirement obligations	96	103
Pension liability	4,777	5,055
Total liabilities	99,747	102,738
Commitments and contingencies
Stockholders’ equity:
Common stock, $0.01 par value; 60,000 shares authorized: 49,120 and 48,839 shares issued and outstanding at March 29, 2024 and December 29, 2023, respectively	491	488
Additional paid-in capital	447,716	436,947
Accumulated other comprehensive income (loss)	(4,712)	(4,113)
Accumulated deficit	(50,707)	(47,368)
Total stockholders’ equity	392,788	385,954
Total liabilities and stockholders’ equity	$ 492,535	$ 488,692

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Mar. 29, 2024	Dec. 29, 2023
Statement of Financial Position [Abstract]
Allowance for credit losses, current	$ 187	$ 191
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized	60,000,000	60,000,000
Common stock, shares issued	49,120,000	48,839,000
Common stock, shares outstanding	49,120,000	48,839,000

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 29, 2024	Mar. 31, 2023
Income Statement [Abstract]
Net sales	$ 77,356	$ 73,528
Cost of sales	16,321	15,966
Gross profit	61,035	57,562
Selling, general and administrative expenses:
General and administrative	23,228	18,098
Selling and marketing	26,708	26,354
Research and development	13,380	10,310
Total selling, general and administrative expenses	63,316	54,762
Operating income (loss)	(2,281)	2,800
Other income (expense), net:
Interest income, net	1,529	1,822
Gain (loss) on foreign currency transactions	(2,297)	34
Royalty income	508
Other income, net	330	63
Total other income, net	70	1,919
Income (loss) before income taxes	(2,211)	4,719
Provision for income taxes	1,128	2,009
Net income (loss)	$ (3,339)	$ 2,710
Net income (loss) per share:
Basic	$ (0.07)	$ 0.06
Diluted	$ (0.07)	$ 0.05
Weighted average shares outstanding:
Basic	48,907	48,247
Diluted	48,907	49,500

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands	3 Months Ended
	Mar. 29, 2024	Mar. 31, 2023
Statement of Comprehensive Income [Abstract]
Net income (loss)	$ (3,339)	$ 2,710
Defined benefit plans:
Net change in plan assets	232	(1,177)
Reclassification into other income (expense), net	(17)	(52)
Investments available for sale:
Change in unrealized gain (loss)	(36)	116
Reclassification into other income (expense), net	3	(2)
Foreign currency translation loss	(1,100)	(129)
Tax effect	319	151
Other comprehensive loss, net of tax	(599)	(1,093)
Comprehensive income (loss)	$ (3,938)	$ 1,617

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) shares in Thousands, $ in Thousands	Total	Common Stock	Additional Paid-in Capital	Accumulated Other Comprehensive Income (Loss)	Accumulated Deficit
Balance at Dec. 30, 2022	$ 336,112	$ 482	$ 404,189	$ 156	$ (68,715)
Balance (in shares) at Dec. 30, 2022		48,212
Net income (loss)	2,710				2,710
Other comprehensive loss	(1,093)			(1,093)
Common stock issued upon exercise of options	529		529
Common stock issued upon exercise of options (in shares)		40
Stock-based compensation	6,434		6,434
Repurchase of employee common stock for taxes withheld	(1,849)		(1,849)
Repurchase of employee common stock for taxes withheld (in shares)		(31)
Vested restricted and performance stock units	1	$ 1
Vested restricted and performance stock units (in shares)		110
Balance at Mar. 31, 2023	342,844	$ 483	409,303	(937)	(66,005)
Balance (in shares) at Mar. 31, 2023		48,331
Balance at Dec. 29, 2023	385,954	$ 488	436,947	(4,113)	(47,368)
Balance (in shares) at Dec. 29, 2023		48,839
Net income (loss)	(3,339)				(3,339)
Other comprehensive loss	(599)			(599)
Common stock issued upon exercise of options	$ 5,324	$ 2	5,322
Common stock issued upon exercise of options (in shares)	187	187
Stock-based compensation	$ 6,676		6,676
Repurchase of employee common stock for taxes withheld	(1,229)		(1,229)
Repurchase of employee common stock for taxes withheld (in shares)		(36)
Forfeited restricted stock (in shares)		(4)
Vested restricted and performance stock units	1	$ 1
Vested restricted and performance stock units (in shares)		134
Balance at Mar. 29, 2024	$ 392,788	$ 491	$ 447,716	$ (4,712)	$ (50,707)
Balance (in shares) at Mar. 29, 2024		49,120

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	3 Months Ended
	Mar. 29, 2024	Mar. 31, 2023
Cash flows from operating activities:
Net income (loss)	$ (3,339)	$ 2,710
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Depreciation of property, plant, and equipment	1,237	1,113
Amortization of intangibles		7
Accretion/Amortization of investments available for sale	(120)	(983)
Deferred income taxes	61	57
Change in net pension liability	(93)	(13)
Stock-based compensation expense	6,339	6,065
Provision for sales returns and bad debts	128	(377)
Inventory provision	646	614
Changes in working capital:
Accounts receivable	29,837	(1,110)
Inventories	(4,002)	(3,920)
Prepayments, deposits, and other assets	(5,485)	(4,249)
Accounts payable	1,519	(3,168)
Other current liabilities	(5,048)	(1,840)
Net cash provided by (used in) operating activities	21,680	(5,094)
Cash flows from investing activities:
Acquisition of property and equipment	(5,202)	(2,901)
Purchase of investments available for sale		(27,445)
Proceeds from sale or maturity of investments available for sale	21,389	40,279
Net cash provided by investing activities	16,187	9,933
Cash flows from financing activities:
Repayment of finance lease obligations	(40)	(42)
Repurchase of employee common stock for taxes withheld	(1,229)	(1,849)
Proceeds from the exercise of stock options	5,324	529
Proceeds from vested restricted and performance stock units	1	1
Net cash provided by (used in) financing activities	4,056	(1,361)
Effect of exchange rate changes on cash and cash equivalents	(937)	10
Increase in cash and cash equivalents	40,986	3,488
Cash and cash equivalents, at beginning of the period	183,038	86,480
Cash and cash equivalents, at end of the period	$ 224,024	$ 89,968

Pay vs Performance Disclosure - USD ($) $ in Thousands	3 Months Ended
Pay vs Performance Disclosure - USD ($) $ in Thousands	Mar. 29, 2024	Mar. 31, 2023
Pay vs Performance Disclosure
Net Income (Loss)	$ (3,339)	$ 2,710

Insider Trading Arrangements	3 Months Ended
Insider Trading Arrangements	Mar. 29, 2024
Trading Arrangements, by Individual
Rule 10b5-1 Arrangement Adopted	false
Non-Rule 10b5-1 Arrangement Adopted	false
Rule 10b5-1 Arrangement Terminated	false
Non-Rule 10b5-1 Arrangement Terminated	false

Basis of Presentation and Significant Accounting Policies

3 Months Ended

Mar. 29, 2024

Accounting Policies [Abstract]

Basis of Presentation and Significant Accounting Policies

Note 1 — Basis of Presentation and Significant Accounting Policies

Cloud-Based Software

Vendor Concentration

There was one vendor that accounted for over 12% of the Company’s consolidated accounts payable as of March 29, 2024.

Recent Accounting Pronouncements Not Yet Adopted

Investments Available for Sale

3 Months Ended

Mar. 29, 2024

Investments, Debt and Equity Securities [Abstract]

Investments Available for Sale

Note 2 — Investments Available for Sale

Investments available for sale (“AFS”) and the related fair value measurement consisted of the following (dollars in thousands):


	March 29, 2024
										Fair Value Measurements
	Amortized Cost		Unrealized Gains		Unrealized Losses			Estimated Fair Value		Level 1		Level 2
Commercial paper	$	4,522	$	3	$	(1	)	$	4,524	$	—	$	4,524
Certificates of deposit		2,017		2		—			2,019		—		2,019
U.S. Treasury securities		15,432		—		(78	)		15,354		15,354		—
U.S. agency securities		1,732		—		(3	)		1,729		—		1,729
Corporate debt securities		4,462		4		(4	)		4,462		—		4,462
Total investments AFS	$	28,165	$	9	$	(86	)	$	28,088	$	15,354	$	12,734

	December 29, 2023
										Fair Value Measurements
	Amortized Cost		Unrealized Gains		Unrealized Losses			Estimated Fair Value		Level 1		Level 2
Commercial paper	$	7,720	$	9	$	—		$	7,729	$	—	$	7,729
Certificates of deposit		3,716		4		—			3,720		—		3,720
U.S. Treasury securities		23,036		3		(56	)		22,983		22,983		—
U.S. agency securities		3,423		—		(4	)		3,419		—		3,419
Corporate debt securities		11,538		12		(10	)		11,540		—		11,540
Total investments AFS	$	49,433	$	28	$	(70	)	$	49,391	$	22,983	$	26,408

The following table shows the fair value of investments AFS by contractual maturity (dollars in thousands):


	As of March 29, 2024
	Within one year		After one year through five years		Total
Commercial paper	$	4,524	$	—	$	4,524
Certificates of deposit		2,019		—		2,019
U.S. Treasury securities		9,816		5,538		15,354
U.S. agency securities		1,729		—		1,729
Corporate debt securities		3,037		1,425		4,462
Total investments AFS	$	21,125	$	6,963	$	28,088

Note 2 — Investments Available for Sale (Continued)

Inventories

3 Months Ended

Mar. 29, 2024

Inventory Disclosure [Abstract]

Inventories

Note 3 — Inventories

Inventories, net are stated at the lower of cost and net realizable value, determined on a first-in, first-out basis and consisted of the following (in thousands):


	March 29, 2024			December 29, 2023
Raw materials and purchased parts	$	9,591		$	9,766
Work in process		6,097			5,722
Finished goods		25,642			23,150
Total inventories, gross		41,330			38,638
Less inventory reserves		(2,749	)		(3,508	)
Total inventories, net	$	38,581		$	35,130

Prepayments, Deposits, and Other Current Assets

3 Months Ended

Mar. 29, 2024

Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]

Prepayments, Deposits, and Other Current Assets

Note 4 — Prepayments, Deposits, and Other Current Assets

Prepayments, deposits, and other current assets consisted of the following (in thousands):


	March 29, 2024		December 29, 2023
Prepayments and deposits	$	7,817	$	6,216
Prepaid insurance		1,968		2,314
Prepaid marketing costs		2,647		2,141
Consumption tax receivable		766		820
Value added tax (VAT) receivable		2,323		2,456
BVG (Swiss Pension) prepayment		1,416		23
Other(1)		444		739
Total prepayments, deposits and other current assets	$	17,381	$	14,709

(1)

No individual category in “other current assets” exceeds 5% of the total prepayments, deposits and other current assets.

Property, Plant and Equipment

3 Months Ended

Mar. 29, 2024

Property, Plant and Equipment [Abstract]

Property, Plant and Equipment

Note 5 — Property, Plant and Equipment

Property, plant and equipment, net consisted of the following (in thousands):


	March 29, 2024			December 29, 2023
Machinery and equipment	$	32,547		$	30,874
Computer equipment and software		8,511			8,495
Furniture and fixtures		4,703			4,122
Leasehold improvements		11,736			10,780
Construction in process		45,149			40,364
Total property, plant and equipment, gross		102,646			94,635
Less accumulated depreciation		(30,309	)		(27,800	)
Total property, plant and equipment, net	$	72,337		$	66,835

Other Current Liabilities

3 Months Ended

Mar. 29, 2024

Other Liabilities Disclosure [Abstract]

Other Current Liabilities

Note 6 – Other Current Liabilities

Other current liabilities consisted of the following (in thousands):


	March 29, 2024		December 29, 2023
Accrued salaries and wages	$	10,440	$	12,519
Accrued bonuses		2,325		3,456
Accrued insurance		1,460		2,315
Income taxes payable		9,708		10,848
Marketing obligations		2,097		1,874
Other(1)		9,231		9,926
Total other current liabilities	$	35,261	$	40,938

(1)

No individual category in “Other” exceeds 5% of the other current liabilities.

Leases

3 Months Ended

Mar. 29, 2024

Leases [Abstract]

Leases

Note 7 – Leases

Finance Leases


	March 29, 2024			December 29, 2023
Computer equipment and software	$	6		$	6
Furniture and fixtures		475			475
Finance lease right-of-use assets, gross		481			481
Less accumulated depreciation		(335	)		(298	)
Finance lease right-of-use assets, net	$	146		$	183

Current finance lease obligations	$	166		$	165
Long-term finance lease obligations		—			42
Total finance lease liability	$	166		$	207
Weighted-average remaining lease term (in years)		1.0			1.3
Weighted-average discount rate		4.25	%		4.24	%

Supplemental cash flow information related to finance leases consisted of the following (dollars in thousands):


	Three Months Ended
	March 29, 2024		March 31, 2023
Amortization of finance lease right-of-use asset	$	37	$	39
Interest on finance lease liabilities		2		4
Cash paid for amounts included in the measurement of finance lease liabilities:
Operating cash flows		2		4
Financing cash flows		40		42

Note 7 – Leases (Continued)

Operating Leases


	March 29, 2024			December 29, 2023
Machinery and equipment	$	701		$	735
Computer equipment and software		445			446
Real property		42,291			40,869
Operating lease right-of-use assets, gross		43,437			42,050
Less accumulated depreciation		(8,837	)		(7,663	)
Operating lease right-of-use assets, net	$	34,600		$	34,387

Current operating lease obligations	$	4,403		$	4,202
Long-term operating lease obligations		31,126			31,425
Total operating lease liability	$	35,529		$	35,627
Weighted-average remaining lease term (in years)		7.2			7.3
Weighted-average discount rate		5.51	%		5.48	%

Supplemental cash flow information related to operating leases was as follows (dollars in thousands):


	Three Months Ended
	March 29, 2024		March 31, 2023
Operating lease cost	$	2,223	$	1,107
Cash paid for amounts included in the measurement of operating lease liabilities:
Operating cash flows		1,384		1,173
Right-of-use assets obtained in exchange for new operating lease liabilities		1,495		1,909

Future Maturities of Lease Liabilities


As of March 29, 2024 12 Months Ended	Operating Leases			Finance Leases
March 2025	$	6,433		$	170
March 2026		5,379			—
March 2027		5,508			—
March 2028		5,633			—
March 2029		5,743			—
Thereafter		16,733			—
Total future minimum lease payments	$	45,429		$	170
Less amounts representing interest		(9,900	)		(4	)
Total lease liability	$	35,529		$	166

Income Taxes

3 Months Ended

Mar. 29, 2024

Income Tax Disclosure [Abstract]

Income Taxes

Note 8 — Income Taxes

The Company recorded an income tax provision as follows (in thousands):


	Three Months Ended
	March 29, 2024		March 31, 2023
Provision for income taxes	$	1,128	$	2,009

Defined Benefit Pension Plans

3 Months Ended

Mar. 29, 2024

Retirement Benefits [Abstract]

Defined Benefit Pension Plans

Note 9 – Defined Benefit Pension Plans


	Three Months Ended
	March 29, 2024			March 31, 2023
Service cost(1)	$	325		$	249
Interest cost(2)		84			87
Expected return on plan assets(2)		(132	)		(87	)
Prior service credit(2),(3)		(45	)		(45	)
Actuarial loss recognized in current period(2),(3)		28			(7	)
Net periodic pension cost	$	260		$	197

(1)

Recognized in selling general and administrative expenses on the Condensed Consolidated Statements of Income.

(2)

Recognized in other expense, net on the Condensed Consolidated Statements of Income.

(3)

Amounts reclassified from accumulated other comprehensive income (loss).

The Company currently is not required to and does not make contributions to its Japan pension plan. The Company’s contributions to its Swiss pension plan are as follows (in thousands):


	Three Months Ended
	March 29, 2024		March 31, 2023
Employer contribution	$	267	$	217

Stockholders' Equity

3 Months Ended

Mar. 29, 2024

Stockholders' Equity Note [Abstract]

Stockholders' Equity

Note 10 — Stockholders’ Equity

Incentive Plan

Stock-Based Compensation

The cost that has been charged against income for stock-based compensation is set forth below (in thousands):


	Three Months Ended
	March 29, 2024		March 31, 2023
Employee stock options	$	3,173	$	2,977
Restricted stock		28		67
RSUs		2,312		1,601
PSUs		685		1,106
Nonemployee stock options		141		314
Total stock-based compensation expense	$	6,339	$	6,065

The Company recorded stock-based compensation costs in the following categories (in thousands):


	Three Months Ended
	March 29, 2024		March 31, 2023
Cost of sales	$	298	$	149
General and administrative		3,075		3,363
Selling and marketing		1,210		857
Research and development		1,756		1,696
Total stock-based compensation expense, net		6,339		6,065
Amounts capitalized as part of inventory		337		369
Total stock-based compensation expense, gross	$	6,676	$	6,434

As of March 29, 2024, total unrecognized compensation cost related to non-vested stock-based compensation arrangements were as follows (in thousands):


	March 29, 2024
Stock options	$	28,392
Restricted stock, RSUs and PSUs		43,614
Total unrecognized stock-based compensation cost	$	72,006

The cost is expected to be recognized over a weighted-average period of approximately two years.

Note 10 — Stockholders’ Equity (Continued)

Assumptions


	Three Months Ended
	March 29, 2024			March 31, 2023
Expected dividend yield		0	%		0	%
Expected volatility		59	%		60	%
Risk-free interest rate		4.16	%		3.96	%
Expected term (in years)		5.29			5.05

Stock Options

A summary of stock option activity under the Equity Plan for three months ended March 29, 2024 is presented below:


	Stock Options (in 000’s)			Weighted- Average Exercise Price		Weighted- Average Remaining Contractual Term (years)		Aggregate Intrinsic Value (in 000’s)
Outstanding at December 29, 2023		2,630		$	46.38
Granted		523			37.21
Exercised		(187	)		28.50
Forfeited or expired		(83	)		76.05
Outstanding at March 29, 2024		2,883		$	45.01		6.98	$	16,386
Exercisable at March 29, 2024		1,668		$	42.93		5.41	$	15,090

Restricted Stock, Restricted Stock Units and Performance Stock Units

A summary of restricted stock, RSU and PSU activity under the Equity Plan for the three months ended March 29, 2024 is presented below (shares in thousands):


	Restricted Stock			RSUs			PSUs
Unvested at December 29, 2023		14			401			56
Granted		—			415			390
Vested		—			(110	)		(24	)
Forfeited or expired		(4	)		(1	)		(4	)
Unvested at March 29, 2024		10			705			418

Commitments and Contingencies

3 Months Ended

Mar. 29, 2024

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

Note 11 - Commitments and Contingencies

Litigation and Claims

Basic and Diluted Net Income (Loss) Per Share

3 Months Ended

Mar. 29, 2024

Earnings Per Share [Abstract]

Basic and Diluted Net Income (Loss) Per Share

Note 12 — Basic and Diluted Net Income (Loss) Per Share

The following table sets forth the computation of basic and diluted net income per share (in thousands except per share amounts):


	Three Months Ended
	March 29, 2024			March 31, 2023
Numerator:
Net income (loss)	$	(3,339	)	$	2,710
Denominator:
Weighted average common shares:
Common shares outstanding		48,907			48,251
Less: Unvested restricted stock		—			(4	)
Denominator for basic calculation		48,907			48,247
Weighted average effects of potentially diluted common stock:
Stock options		—			1,116
Unvested restricted stock		—			3
RSUs		—			81
PSUs		—			53
Denominator for diluted calculation		48,907			49,500
Net income (loss) per share:
Basic	$	(0.07	)	$	0.06
Diluted	$	(0.07	)	$	0.05


	Three Months Ended
	March 29, 2024		March 31, 2023
Stock options		4,316		1,392
Restricted stock, RSUs and PSUs		495		15
Total		4,811		1,407

Disaggregation of Sales, Geographic Sales and Product Sales

3 Months Ended

Mar. 29, 2024

Segment Reporting [Abstract]

Disaggregation of Sales, Geographic Sales and Product Sales

Note 13 — Disaggregation of Sales, Geographic Sales and Product Sales

In the following tables, sales are disaggregated by category, sales by geographic market and sales by product data. The following breaks down sales into the following categories (in thousands):


	Three Months Ended
	March 29, 2024		March 31, 2023
Non-consignment sales	$	71,764	$	67,163
Consignment sales		5,592		6,365
Total net sales	$	77,356	$	73,528


	Three Months Ended
	March 29, 2024		March 31, 2023
Domestic	$	4,935	$	4,551
Foreign:
China		38,549		35,090
Japan		10,456		10,936
Other(1)		23,416		22,951
Total foreign sales		72,421		68,977
Total net sales	$	77,356	$	73,528

(1)

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


	Three Months Ended
	March 29, 2024		March 31, 2023
ICLs	$	77,151	$	70,625
Other product sales:
Cataract IOLs		—		1,476
Other surgical products(1)		205		1,427
Total other product sales		205		2,903
Total net sales	$	77,356	$	73,528

(1) Other surgical products include delivery systems and normal recurring sales adjustments such as sales return allowances.

Basis of Presentation and Significant Accounting Policies (Policies)	3 Months Ended
	Mar. 29, 2024
Accounting Policies [Abstract]
Basis of Presentation	The accompanying Condensed Consolidated Financial Statements present the financial position, results of operations, and cash flows of STAAR Surgical Company and its wholly owned subsidiaries (the “Company”). All significant intercompany accounts and transactions have been eliminated. The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X of the Securities Exchange Commission. In accordance with those rules and regulations certain information and footnote disclosures normally included in the Comprehensive Financial Statements have been condensed or omitted pursuant to such rules and regulations. The Consolidated Balance Sheet as of December 29, 2023 was derived from the audited financial statements at that date, but does not include all the information and footnotes required by GAAP. These financial statements should be read in conjunction with the audited financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 29, 2023. The Condensed Consolidated Financial Statements for the three months ended March 29, 2024 and March 31, 2023, in the opinion of management, include all adjustments, consisting only of normal recurring adjustments, necessary for a fair presentation of the Company’s financial condition and results of operations. The results of operations for the three months ended March 29, 2024 and March 31, 2023, are not necessarily indicative of the results to be expected for any other interim period or for the entire year. Each of the Company’s fiscal reporting periods ends on the Friday nearest to the quarter ending date and generally consists of 13 weeks. Unless the context indicates otherwise “we,” “us,” the “Company,” and “STAAR” refer to STAAR Surgical Company and its consolidated subsidiaries.
Cloud-Based Software Implementation Costs	Cloud-Based Software As of March 29, 2024 and December 29, 2023, the Company recognized $4,947,000 and $2,406,000, respectively, of net capitalized cloud-based software implementation costs recorded within Other assets on the Condensed Consolidated Balance Sheets. As of March 29, 2024, these assets are not currently placed into service. No amortization of capitalized cloud-based software implementation costs were recognized during the three months ended March 29, 2024 and March 31, 2023. Vendor Concentration There was one vendor that accounted for over 12% of the Company’s consolidated accounts payable as of March 29, 2024.
Recent Accounting Pronouncements Not Yet Adopted	Recent Accounting Pronouncements Not Yet Adopted In November 2023, the Financial Accounting Standards Board (“FASB”) issued ASU 2023-07, “Segment Reporting (Topic 280).” ASU 2023-07 improves reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses. The amendments (a) disclose significant segment expenses regularly provided to the chief operating decision maker (“CODM”), (b) disclose an amount for other segment items by reportable segment and description of its composition, (c) extend certain annual disclosures to interim periods, (d) clarify single reportable segment entities must apply Topic 280 in its entirety, (e) permit more than one measure of segment profit or loss to be reported under certain conditions and (f) require disclosure of the title and position of the CODM. ASU 2023-07 is effective for fiscal years beginning after December 15, 2023 and interim periods within fiscal years beginning after December 15, 2024. Early adoption is permitted. The Company will adopt the annual disclosure requirements of ASU 2023-07 as of beginning of fiscal year 2024 and will adopt the interim disclosure requirements beginning fiscal year 2025. The Company is currently evaluating the disclosure requirements and its effect on the Condensed Consolidated Financial Statements. In December 2023, the FASB issued ASU 2023-09, “Income Taxes (Topic 740).” ASU 2023-09 improves the transparency about income tax information through improvements to income tax disclosures primarily related to the rate reconciliation and income taxes paid information. It also includes certain other amendments to improve the effectiveness of income tax disclosures regarding (a) income or loss from continuing operations disaggregated between domestic and foreign and (b) income tax expense or benefit from continuing operations disaggregated by federal, state and foreign. ASU 2023-09 is effective for annual periods beginning after December 15, 2024. The Company will adopt ASU 2023-09 at the beginning of fiscal year 2025. The Company is currently evaluating the disclosure requirements and its effect on the Condensed Consolidated Financial Statements.

Investments Available for Sale (Tables)

3 Months Ended

Mar. 29, 2024

Investments, Debt and Equity Securities [Abstract]

Summary of Investments Available for Sale and Related Fair Value Measurement

Investments available for sale (“AFS”) and the related fair value measurement consisted of the following (dollars in thousands):


	March 29, 2024
										Fair Value Measurements
	Amortized Cost		Unrealized Gains		Unrealized Losses			Estimated Fair Value		Level 1		Level 2
Commercial paper	$	4,522	$	3	$	(1	)	$	4,524	$	—	$	4,524
Certificates of deposit		2,017		2		—			2,019		—		2,019
U.S. Treasury securities		15,432		—		(78	)		15,354		15,354		—
U.S. agency securities		1,732		—		(3	)		1,729		—		1,729
Corporate debt securities		4,462		4		(4	)		4,462		—		4,462
Total investments AFS	$	28,165	$	9	$	(86	)	$	28,088	$	15,354	$	12,734

	December 29, 2023
										Fair Value Measurements
	Amortized Cost		Unrealized Gains		Unrealized Losses			Estimated Fair Value		Level 1		Level 2
Commercial paper	$	7,720	$	9	$	—		$	7,729	$	—	$	7,729
Certificates of deposit		3,716		4		—			3,720		—		3,720
U.S. Treasury securities		23,036		3		(56	)		22,983		22,983		—
U.S. agency securities		3,423		—		(4	)		3,419		—		3,419
Corporate debt securities		11,538		12		(10	)		11,540		—		11,540
Total investments AFS	$	49,433	$	28	$	(70	)	$	49,391	$	22,983	$	26,408

Summary of Fair Value of Investments Available for Sale by Contractual Maturity

The following table shows the fair value of investments AFS by contractual maturity (dollars in thousands):


	As of March 29, 2024
	Within one year		After one year through five years		Total
Commercial paper	$	4,524	$	—	$	4,524
Certificates of deposit		2,019		—		2,019
U.S. Treasury securities		9,816		5,538		15,354
U.S. agency securities		1,729		—		1,729
Corporate debt securities		3,037		1,425		4,462
Total investments AFS	$	21,125	$	6,963	$	28,088

Inventories (Tables)

3 Months Ended

Mar. 29, 2024

Inventory Disclosure [Abstract]

Schedule of Inventory, Current

Inventories, net are stated at the lower of cost and net realizable value, determined on a first-in, first-out basis and consisted of the following (in thousands):


	March 29, 2024			December 29, 2023
Raw materials and purchased parts	$	9,591		$	9,766
Work in process		6,097			5,722
Finished goods		25,642			23,150
Total inventories, gross		41,330			38,638
Less inventory reserves		(2,749	)		(3,508	)
Total inventories, net	$	38,581		$	35,130

Prepayments, Deposits, and Other Current Assets (Tables)

3 Months Ended

Mar. 29, 2024

Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]

Schedule Of Prepayments, Deposits, and Other Current Assets

Prepayments, deposits, and other current assets consisted of the following (in thousands):


	March 29, 2024		December 29, 2023
Prepayments and deposits	$	7,817	$	6,216
Prepaid insurance		1,968		2,314
Prepaid marketing costs		2,647		2,141
Consumption tax receivable		766		820
Value added tax (VAT) receivable		2,323		2,456
BVG (Swiss Pension) prepayment		1,416		23
Other(1)		444		739
Total prepayments, deposits and other current assets	$	17,381	$	14,709

(1)

No individual category in “other current assets” exceeds 5% of the total prepayments, deposits and other current assets.

Property, Plant and Equipment (Tables)

3 Months Ended

Mar. 29, 2024

Property, Plant and Equipment [Abstract]

Property, Plant and Equipment, Net

Property, plant and equipment, net consisted of the following (in thousands):


	March 29, 2024			December 29, 2023
Machinery and equipment	$	32,547		$	30,874
Computer equipment and software		8,511			8,495
Furniture and fixtures		4,703			4,122
Leasehold improvements		11,736			10,780
Construction in process		45,149			40,364
Total property, plant and equipment, gross		102,646			94,635
Less accumulated depreciation		(30,309	)		(27,800	)
Total property, plant and equipment, net	$	72,337		$	66,835

Other Current Liabilities (Tables)

3 Months Ended

Mar. 29, 2024

Other Liabilities Disclosure [Abstract]

Schedule of Other Current Liabilities

Other current liabilities consisted of the following (in thousands):


	March 29, 2024		December 29, 2023
Accrued salaries and wages	$	10,440	$	12,519
Accrued bonuses		2,325		3,456
Accrued insurance		1,460		2,315
Income taxes payable		9,708		10,848
Marketing obligations		2,097		1,874
Other(1)		9,231		9,926
Total other current liabilities	$	35,261	$	40,938

(1)

No individual category in “Other” exceeds 5% of the other current liabilities.

Leases (Tables)

3 Months Ended

Mar. 29, 2024

Leases [Abstract]

Supplemental Balance Sheet Information Related to Finance Leases

Supplemental balance sheet information related to finance leases consisted of the following (dollars in thousands):


	March 29, 2024			December 29, 2023
Computer equipment and software	$	6		$	6
Furniture and fixtures		475			475
Finance lease right-of-use assets, gross		481			481
Less accumulated depreciation		(335	)		(298	)
Finance lease right-of-use assets, net	$	146		$	183

Current finance lease obligations	$	166		$	165
Long-term finance lease obligations		—			42
Total finance lease liability	$	166		$	207
Weighted-average remaining lease term (in years)		1.0			1.3
Weighted-average discount rate		4.25	%		4.24	%

Supplemental Cash Flow Information Related to Finance Leases

Supplemental cash flow information related to finance leases consisted of the following (dollars in thousands):


	Three Months Ended
	March 29, 2024		March 31, 2023
Amortization of finance lease right-of-use asset	$	37	$	39
Interest on finance lease liabilities		2		4
Cash paid for amounts included in the measurement of finance lease liabilities:
Operating cash flows		2		4
Financing cash flows		40		42

Note 7 – Leases (Continued)

Supplemental Balance Sheet Information Related to Operating Leases

Supplemental balance sheet information related to operating leases consisted of the following (dollars in thousands):


	March 29, 2024			December 29, 2023
Machinery and equipment	$	701		$	735
Computer equipment and software		445			446
Real property		42,291			40,869
Operating lease right-of-use assets, gross		43,437			42,050
Less accumulated depreciation		(8,837	)		(7,663	)
Operating lease right-of-use assets, net	$	34,600		$	34,387

Current operating lease obligations	$	4,403		$	4,202
Long-term operating lease obligations		31,126			31,425
Total operating lease liability	$	35,529		$	35,627
Weighted-average remaining lease term (in years)		7.2			7.3
Weighted-average discount rate		5.51	%		5.48	%

Supplemental Cash Flow Information Related to Operating Leases

Supplemental cash flow information related to operating leases was as follows (dollars in thousands):


	Three Months Ended
	March 29, 2024		March 31, 2023
Operating lease cost	$	2,223	$	1,107
Cash paid for amounts included in the measurement of operating lease liabilities:
Operating cash flows		1,384		1,173
Right-of-use assets obtained in exchange for new operating lease liabilities		1,495		1,909

Schedule of Estimated Future Maturities of Lease Liabilities under Operating and Finance Leases Having Initial or Remaining Non-Cancelable Lease Terms More Than One Year


As of March 29, 2024 12 Months Ended	Operating Leases			Finance Leases
March 2025	$	6,433		$	170
March 2026		5,379			—
March 2027		5,508			—
March 2028		5,633			—
March 2029		5,743			—
Thereafter		16,733			—
Total future minimum lease payments	$	45,429		$	170
Less amounts representing interest		(9,900	)		(4	)
Total lease liability	$	35,529		$	166

Income Taxes (Tables)

3 Months Ended

Mar. 29, 2024

Income Tax Disclosure [Abstract]

Schedule of Income Tax Provision

The Company recorded an income tax provision as follows (in thousands):


	Three Months Ended
	March 29, 2024		March 31, 2023
Provision for income taxes	$	1,128	$	2,009

Defined Benefit Pension Plans (Tables)

3 Months Ended

Mar. 29, 2024

Retirement Benefits [Abstract]

Schedule of Net Benefit Costs


	Three Months Ended
	March 29, 2024			March 31, 2023
Service cost(1)	$	325		$	249
Interest cost(2)		84			87
Expected return on plan assets(2)		(132	)		(87	)
Prior service credit(2),(3)		(45	)		(45	)
Actuarial loss recognized in current period(2),(3)		28			(7	)
Net periodic pension cost	$	260		$	197

(1)

Recognized in selling general and administrative expenses on the Condensed Consolidated Statements of Income.

(2)

Recognized in other expense, net on the Condensed Consolidated Statements of Income.

(3)

Amounts reclassified from accumulated other comprehensive income (loss).

Schedule of Defined Benefit Plans Disclosures

The Company currently is not required to and does not make contributions to its Japan pension plan. The Company’s contributions to its Swiss pension plan are as follows (in thousands):


	Three Months Ended
	March 29, 2024		March 31, 2023
Employer contribution	$	267	$	217

Stockholders' Equity (Tables)

3 Months Ended

Mar. 29, 2024

Stockholders' Equity Note [Abstract]

Schedule of Compensation Cost

The cost that has been charged against income for stock-based compensation is set forth below (in thousands):


	Three Months Ended
	March 29, 2024		March 31, 2023
Employee stock options	$	3,173	$	2,977
Restricted stock		28		67
RSUs		2,312		1,601
PSUs		685		1,106
Nonemployee stock options		141		314
Total stock-based compensation expense	$	6,339	$	6,065

Schedule of Employee Service Share-based Compensation, Allocation of Recognized Period Costs

The Company recorded stock-based compensation costs in the following categories (in thousands):


	Three Months Ended
	March 29, 2024		March 31, 2023
Cost of sales	$	298	$	149
General and administrative		3,075		3,363
Selling and marketing		1,210		857
Research and development		1,756		1,696
Total stock-based compensation expense, net		6,339		6,065
Amounts capitalized as part of inventory		337		369
Total stock-based compensation expense, gross	$	6,676	$	6,434

Schedule of Unrecognized Compensation Cost, Non-Vested Stock-Based Compensation Arrangements

As of March 29, 2024, total unrecognized compensation cost related to non-vested stock-based compensation arrangements were as follows (in thousands):


	March 29, 2024
Stock options	$	28,392
Restricted stock, RSUs and PSUs		43,614
Total unrecognized stock-based compensation cost	$	72,006

Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions

The risk-free rate is based on the U.S. Treasury yield curve corresponding to the expected term at the time of the grant.


	Three Months Ended
	March 29, 2024			March 31, 2023
Expected dividend yield		0	%		0	%
Expected volatility		59	%		60	%
Risk-free interest rate		4.16	%		3.96	%
Expected term (in years)		5.29			5.05

Schedule of Share-based Compensation, Stock Options, Activity

A summary of stock option activity under the Equity Plan for three months ended March 29, 2024 is presented below:


	Stock Options (in 000’s)			Weighted- Average Exercise Price		Weighted- Average Remaining Contractual Term (years)		Aggregate Intrinsic Value (in 000’s)
Outstanding at December 29, 2023		2,630		$	46.38
Granted		523			37.21
Exercised		(187	)		28.50
Forfeited or expired		(83	)		76.05
Outstanding at March 29, 2024		2,883		$	45.01		6.98	$	16,386
Exercisable at March 29, 2024		1,668		$	42.93		5.41	$	15,090

Schedule of Share-based Compensation, Restricted Stock, RSU and PSU Activity

A summary of restricted stock, RSU and PSU activity under the Equity Plan for the three months ended March 29, 2024 is presented below (shares in thousands):


	Restricted Stock			RSUs			PSUs
Unvested at December 29, 2023		14			401			56
Granted		—			415			390
Vested		—			(110	)		(24	)
Forfeited or expired		(4	)		(1	)		(4	)
Unvested at March 29, 2024		10			705			418

Basic and Diluted Net Income (Loss) Per Share (Tables)

3 Months Ended

Mar. 29, 2024

Earnings Per Share [Abstract]

Summary of Computation of Basic and Diluted Net Income Per Share

The following table sets forth the computation of basic and diluted net income per share (in thousands except per share amounts):


	Three Months Ended
	March 29, 2024			March 31, 2023
Numerator:
Net income (loss)	$	(3,339	)	$	2,710
Denominator:
Weighted average common shares:
Common shares outstanding		48,907			48,251
Less: Unvested restricted stock		—			(4	)
Denominator for basic calculation		48,907			48,247
Weighted average effects of potentially diluted common stock:
Stock options		—			1,116
Unvested restricted stock		—			3
RSUs		—			81
PSUs		—			53
Denominator for diluted calculation		48,907			49,500
Net income (loss) per share:
Basic	$	(0.07	)	$	0.06
Diluted	$	(0.07	)	$	0.05

Schedule of Anti-dilutive Securities Excluded from Computation of Earnings Per Share


	Three Months Ended
	March 29, 2024		March 31, 2023
Stock options		4,316		1,392
Restricted stock, RSUs and PSUs		495		15
Total		4,811		1,407

Disaggregation of Sales, Geographic Sales and Product Sales (Tables)

3 Months Ended

Mar. 29, 2024

Segment Reporting [Abstract]

Disaggregation of Sales

In the following tables, sales are disaggregated by category, sales by geographic market and sales by product data. The following breaks down sales into the following categories (in thousands):


	Three Months Ended
	March 29, 2024		March 31, 2023
Non-consignment sales	$	71,764	$	67,163
Consignment sales		5,592		6,365
Total net sales	$	77,356	$	73,528

Net Sales by Geographic Areas

The composition of the Company’s net sales to unaffiliated customers was as follows (in thousands):


	Three Months Ended
	March 29, 2024		March 31, 2023
Domestic	$	4,935	$	4,551
Foreign:
China		38,549		35,090
Japan		10,456		10,936
Other(1)		23,416		22,951
Total foreign sales		72,421		68,977
Total net sales	$	77,356	$	73,528

(1)

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

Net Sales by Products and Services

The composition of the Company’s net sales by product line was as follows (in thousands):


	Three Months Ended
	March 29, 2024		March 31, 2023
ICLs	$	77,151	$	70,625
Other product sales:
Cataract IOLs		—		1,476
Other surgical products(1)		205		1,427
Total other product sales		205		2,903
Total net sales	$	77,356	$	73,528

(1) Other surgical products include delivery systems and normal recurring sales adjustments such as sales return allowances.

Basis of Presentation and Significant Accounting Policies - Additional Information (Details) - USD ($)	3 Months Ended
	Mar. 29, 2024	Mar. 31, 2023	Dec. 29, 2023
Organization And Description Of Business And Accounting Policies [Line Items]
Capitalized cloud-based software implementation costs	$ 4,947,000		$ 2,406,000
Capitalized Computer Software, Amortization	$ 0	$ 0
Maximum \| Consolidated Accounts Payable \| Vendor Concentration Risk
Organization And Description Of Business And Accounting Policies [Line Items]
Concentration risk, percentage	12.00%

Investments Available for Sale - Summary of Investments Available for Sale and Related Fair Value Measurement (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 29, 2024	Dec. 29, 2023
Schedule Of Available For Sale Securities [Line Items]
Amortized Cost	$ 28,165	$ 49,433
Unrealized Gains	9	28
Unrealized Losses	(86)	(70)
Estimated Fair Value	28,088	49,391
Fair Value, Inputs, Level 1
Schedule Of Available For Sale Securities [Line Items]
Fair Value Measurements	15,354	22,983
Fair Value, Inputs, Level 2
Schedule Of Available For Sale Securities [Line Items]
Fair Value Measurements	12,734	26,408
Commercial Paper
Schedule Of Available For Sale Securities [Line Items]
Amortized Cost	4,522	7,720
Unrealized Gains	3	9
Unrealized Losses	(1)
Estimated Fair Value	4,524	7,729
Commercial Paper \| Fair Value, Inputs, Level 2
Schedule Of Available For Sale Securities [Line Items]
Fair Value Measurements	4,524	7,729
Certificates of Deposit
Schedule Of Available For Sale Securities [Line Items]
Amortized Cost	2,017	3,716
Unrealized Gains	2	4
Estimated Fair Value	2,019	3,720
Certificates of Deposit \| Fair Value, Inputs, Level 2
Schedule Of Available For Sale Securities [Line Items]
Fair Value Measurements	2,019	3,720
U.S. Treasury Securities
Schedule Of Available For Sale Securities [Line Items]
Amortized Cost	15,432	23,036
Unrealized Gains		3
Unrealized Losses	(78)	(56)
Estimated Fair Value	15,354	22,983
U.S. Treasury Securities \| Fair Value, Inputs, Level 1
Schedule Of Available For Sale Securities [Line Items]
Fair Value Measurements	15,354	22,983
U.S. Agency Securities
Schedule Of Available For Sale Securities [Line Items]
Amortized Cost	1,732	3,423
Unrealized Losses	(3)	(4)
Estimated Fair Value	1,729	3,419
U.S. Agency Securities \| Fair Value, Inputs, Level 2
Schedule Of Available For Sale Securities [Line Items]
Fair Value Measurements	1,729	3,419
Corporate Debt Securities
Schedule Of Available For Sale Securities [Line Items]
Amortized Cost	4,462	11,538
Unrealized Gains	4	12
Unrealized Losses	(4)	(10)
Estimated Fair Value	4,462	11,540
Corporate Debt Securities \| Fair Value, Inputs, Level 2
Schedule Of Available For Sale Securities [Line Items]
Fair Value Measurements	$ 4,462	$ 11,540

Investments Available for Sale - Additional Information (Details) - USD ($)	3 Months Ended
	Mar. 29, 2024	Mar. 31, 2023
Investments, Debt and Equity Securities [Abstract]
Impairment recognized	$ 0
Sale of securities		$ 600,000
Realized gain on debt securities available for sale		$ 2,000

Investments Available for Sale - Summary of Fair Value of Investments Available for Sale by Contractual Maturity (Details) - USD ($) $ in Thousands	Mar. 29, 2024	Dec. 29, 2023
Schedule Of Available For Sale Securities [Line Items]
Within one year	$ 21,125
After one year through five years	6,963
Total	28,088	$ 49,391
Commercial Paper
Schedule Of Available For Sale Securities [Line Items]
Within one year	4,524
Total	4,524	7,729
Certificates of Deposit
Schedule Of Available For Sale Securities [Line Items]
Within one year	2,019
Total	2,019	3,720
U.S. Treasury Securities
Schedule Of Available For Sale Securities [Line Items]
Within one year	9,816
After one year through five years	5,538
Total	15,354	22,983
U.S. Agency Securities
Schedule Of Available For Sale Securities [Line Items]
Within one year	1,729
Total	1,729	3,419
Corporate Debt Securities
Schedule Of Available For Sale Securities [Line Items]
Within one year	3,037
After one year through five years	1,425
Total	$ 4,462	$ 11,540

Inventories - Schedule of Inventory, Current (Details) - USD ($) $ in Thousands	Mar. 29, 2024	Dec. 29, 2023
Inventory Disclosure [Abstract]
Raw materials and purchased parts	$ 9,591	$ 9,766
Work in process	6,097	5,722
Finished goods	25,642	23,150
Total inventories, gross	41,330	38,638
Less inventory reserves	(2,749)	(3,508)
Total inventories, net	$ 38,581	$ 35,130

Prepayments, Deposits, and Other Current Assets - Schedule Of Prepayments, Deposits, and Other Current Assets (Details) - USD ($)
$ in Thousands

Mar. 29, 2024

Dec. 29, 2023

Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]

Prepayments and deposits

$ 7,817

$ 6,216

Prepaid insurance

1,968

2,314

Prepaid marketing costs

2,647

2,141

Consumption tax receivable

766

820

Value added tax (VAT) receivable

2,323

2,456

BVG (Swiss Pension) prepayment

1,416

Other

^[1]

444

739

Total prepayments, deposits and other current assets

$ 17,381

$ 14,709

[1]	No individual category in “other current assets” exceeds 5% of the total prepayments, deposits and other current assets.

Prepayments, Deposits, and Other Current Assets - Schedule Of Prepayments, Deposits, and Other Current Assets (Parenthetical) (Details)	Mar. 29, 2024	Dec. 29, 2023
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Percent of prepayments deposits and other current assets included in other current assets	5.00%	5.00%

Property, Plant and Equipment - Property, Plant and Equipment, Net (Details) - USD ($) $ in Thousands	Mar. 29, 2024	Dec. 29, 2023
Property, Plant and Equipment [Abstract]
Machinery and equipment	$ 32,547	$ 30,874
Computer equipment and software	8,511	8,495
Furniture and fixtures	4,703	4,122
Leasehold improvements	11,736	10,780
Construction in process	45,149	40,364
Total property, plant and equipment, gross	102,646	94,635
Less accumulated depreciation	(30,309)	(27,800)
Total property, plant and equipment, net	$ 72,337	$ 66,835

Other Current Liabilities - Schedule of Other Current Liabilities (Details) - USD ($)
$ in Thousands

Mar. 29, 2024

Dec. 29, 2023

Other Liabilities Disclosure [Abstract]

Accrued salaries and wages

$ 10,440

$ 12,519

Accrued bonuses

2,325

3,456

Accrued insurance

1,460

2,315

Income taxes payable

9,708

10,848

Marketing obligations

2,097

1,874

Other

^[1]

9,231

9,926

Total other current liabilities

$ 35,261

$ 40,938

[1]	No individual category in “Other” exceeds 5% of the other current liabilities.

Other Current Liabilities - Schedule of Other Current Liabilities (Parenthetical) (Details)	Mar. 29, 2024	Dec. 29, 2023
Other Liabilities Disclosure [Abstract]
Percent of Other Current Liabilities Included in Other	5.00%	5.00%

Leases - Additional Information (Details)	Mar. 29, 2024
Minimum
Lessee Lease Description [Line Items]
Finance lease, term of contract	2 years
Operating lease, term of contract	2 years
Maximum
Lessee Lease Description [Line Items]
Finance lease, term of contract	5 years
Operating lease, term of contract	10 years

Leases - Supplemental Balance Sheet Information Related to Finance Leases (Details) - USD ($) $ in Thousands	Mar. 29, 2024	Dec. 29, 2023
Lessee Lease Description [Line Items]
Finance lease right-of-use assets, gross	$ 481	$ 481
Less accumulated depreciation	(335)	(298)
Finance lease right-of-use assets, net	146	183
Current finance lease obligations	166	165
Long-term finance lease obligations		42
Total finance lease liability	$ 166	$ 207
Weighted-average remaining lease term (in years)	1 year	1 year 3 months 18 days
Weighted-average discount rate	4.25%	4.24%
Computer Equipment and Software
Lessee Lease Description [Line Items]
Finance lease right-of-use assets, gross	$ 6	$ 6
Furniture and Fixtures
Lessee Lease Description [Line Items]
Finance lease right-of-use assets, gross	$ 475	$ 475

Leases - Supplemental Cash Flow Information Related to Finance Leases (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 29, 2024	Mar. 31, 2023
Leases [Abstract]
Amortization of finance lease right-of-use asset	$ 37	$ 39
Interest on finance lease liabilities	2	4
Cash paid for amounts included in the measurement of finance lease liabilities:
Operating cash flows	2	4
Financing cash flows	$ 40	$ 42

Leases - Supplemental Balance Sheet Information Related to Operating Leases (Details) - USD ($) $ in Thousands	Mar. 29, 2024	Dec. 29, 2023
Lessee Lease Description [Line Items]
Operating lease right-of-use assets, gross	$ 43,437	$ 42,050
Less accumulated depreciation	(8,837)	(7,663)
Operating lease right-of-use assets, net	34,600	34,387
Current operating lease obligations	4,403	4,202
Long-term operating lease obligations	31,126	31,425
Total operating lease liability	$ 35,529	$ 35,627
Weighted-average remaining lease term (in years)	7 years 2 months 12 days	7 years 3 months 18 days
Weighted-average discount rate	5.51%	5.48%
Machinery and Equipment
Lessee Lease Description [Line Items]
Operating lease right-of-use assets, gross	$ 701	$ 735
Computer Equipment and Software
Lessee Lease Description [Line Items]
Operating lease right-of-use assets, gross	445	446
Real Property
Lessee Lease Description [Line Items]
Operating lease right-of-use assets, gross	$ 42,291	$ 40,869

Leases - Supplemental Cash Flow Information Related to Operating Leases (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 29, 2024	Mar. 31, 2023
Leases [Abstract]
Operating lease cost	$ 2,223	$ 1,107
Cash paid for amounts included in the measurement of operating lease liabilities:
Operating cash flows	1,384	1,173
Right-of-use assets obtained in exchange for new operating lease liabilities	$ 1,495	$ 1,909

Leases - Schedule of Estimated Future Maturities of Lease Liabilities under Operating and Finance Leases Having Initial or Remaining Non-Cancelable Lease Terms More Than One Year (Details) - USD ($) $ in Thousands	Mar. 29, 2024	Dec. 29, 2023
Operating Lease Liabilities, Payments, Due, Rolling Maturity [Abstract]
March 2025	$ 6,433
March 2026	5,379
March 2027	5,508
March 2028	5,633
March 2029	5,743
Thereafter	16,733
Total future minimum lease payments	45,429
Less amounts representing interest	(9,900)
Total lease liability	35,529	$ 35,627
Finance Lease Liabilities, Payments, Rolling Maturity [Abstract]
March 2025	170
Total future minimum lease payments	170
Less amounts representing interest	(4)
Total lease liability	$ 166	$ 207

Income Taxes - Schedule of Income Tax Provision (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 29, 2024	Mar. 31, 2023
Income Tax Disclosure [Abstract]
Provision for income taxes	$ 1,128	$ 2,009

Income Taxes - Additional Information (Details)	3 Months Ended
Income Taxes - Additional Information (Details)	Mar. 29, 2024	Mar. 31, 2023
Income Tax Disclosure [Abstract]
Effective tax rate	(51.00%)	42.60%
Effective tax rates differ from U.S. federal statutory rate	21.00%	21.00%

Defined Benefit Pension Plans - Schedule of Net Benefit Costs (Details) - USD ($)
$ in Thousands

3 Months Ended

Mar. 29, 2024

Mar. 31, 2023

Retirement Benefits [Abstract]

Service cost

^[1]

$ 325

$ 249

Interest cost

^[2]

Expected return on plan assets

^[2]

(132)

(87)

Prior service credit

^[2],[3]

(45)

Actuarial loss recognized in current period

^[2],[3]

(7)

Net periodic pension cost

$ 260

$ 197

[1]	Recognized in selling general and administrative expenses on the Condensed Consolidated Statements of Income.
[2]	Recognized in other expense, net on the Condensed Consolidated Statements of Income.
[3]	Amounts reclassified from accumulated other comprehensive income (loss).

Defined Benefit Pension Plans - Schedule of Defined Benefit Plans Disclosures (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 29, 2024	Mar. 31, 2023
Swiss pension plan
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Employer contribution	$ 267	$ 217

Stockholders' Equity - Additional Information (Details) - shares		3 Months Ended
	Jun. 15, 2023	Mar. 29, 2024
Stockholders Equity Note [Line Items]
Weighted-average period of cost expected to recognize		2 years
Estimated forfeiture rate		8.00%
Omnibus Plan
Stockholders Equity Note [Line Items]
Share-based compensation arrangement by share-based payment award, expiration period		10 years
Share-based compensation arrangement by share-based payment award, number of additional shares authorized	2,170,000
Share-based compensation arrangement by share-based payment award, number of shares authorized	20,205,000
Omnibus Plan \| Employee Stock Option
Stockholders Equity Note [Line Items]
Share-based compensation arrangement by share-based payment award, vesting period		3 years
Omnibus Plan \| Restricted Stock
Stockholders Equity Note [Line Items]
Share-based compensation arrangement by share-based payment award, number of shares available for grant		962,029
Omnibus Plan \| Restricted Stock \| Minimum
Stockholders Equity Note [Line Items]
Share-based compensation arrangement by share-based payment award, vesting period		1 year
Omnibus Plan \| Restricted Stock \| Maximum
Stockholders Equity Note [Line Items]
Share-based compensation arrangement by share-based payment award, vesting period		3 years

Stockholders' Equity - Schedule of Compensation Cost (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 29, 2024	Mar. 31, 2023
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Share-Based Payment Arrangement, Expense	$ 6,339	$ 6,065
Employee Stock Options
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Share-Based Payment Arrangement, Expense	3,173	2,977
Restricted Stock
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Share-Based Payment Arrangement, Expense	28	67
RSUs
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Share-Based Payment Arrangement, Expense	2,312	1,601
PSUs
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Share-Based Payment Arrangement, Expense	685	1,106
Non Employee Stock Options
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Share-Based Payment Arrangement, Expense	$ 141	$ 314

Stockholders' Equity - Schedule of Employee Service Share-based Compensation, Allocation of Recognized Period Costs (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 29, 2024	Mar. 31, 2023
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Total stock-based compensation expense, net	$ 6,339	$ 6,065
Amounts capitalized as part of inventory	337	369
Total stock-based compensation expense, gross	6,676	6,434
Cost of Sales
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Total stock-based compensation expense, net	298	149
General and Administrative
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Total stock-based compensation expense, net	3,075	3,363
Selling and Marketing
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Total stock-based compensation expense, net	1,210	857
Research and Development Expense
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Total stock-based compensation expense, net	$ 1,756	$ 1,696

Stockholders' Equity - Schedule of Unrecognized Compensation Cost Related to Non-Vested Stock-Based Compensation Arrangements (Details) $ in Thousands	Mar. 29, 2024 USD ($)
Share-Based Payment Arrangement [Abstract]
Stock options	$ 28,392
Restricted stock, RSUs and PSUs	43,614
Total unrecognized stock-based compensation cost	$ 72,006

Stockholders' Equity - Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions (Details)	3 Months Ended
	Mar. 29, 2024	Mar. 31, 2023
Stockholders' Equity Note [Abstract]
Expected dividend yield	0.00%	0.00%
Expected volatility	59.00%	60.00%
Risk-free interest rate	4.16%	3.96%
Expected term (in years)	5 years 3 months 14 days	5 years 18 days

Stockholders' Equity - Schedule of Share-based Compensation, Stock Options, Activity (Details) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 29, 2024 USD ($) $ / shares shares
Stockholders' Equity Note [Abstract]
Options, Outstanding at December 29, 2023 \| shares	2,630
Options, Granted, Shares \| shares	523
Options, Exercised, Shares \| shares	(187)
Options, Forfeited or expired, Shares \| shares	(83)
Options, Outstanding at March 29, 2024 \| shares	2,883
Options, Exercisable at March 29, 2024 \| shares	1,668
Weighted Average Exercise Price, Options Outstanding at December 29, 2023 \| $ / shares	$ 46.38
Weighted Average Exercise Price, Options, Granted \| $ / shares	37.21
Weighted Average Exercise Price,Options, Exercised \| $ / shares	28.5
Weighted Average Exercise Price, Options, Forfeited or Expired \| $ / shares	76.05
Weighted Average Exercise Price, Options Outstanding at March 29, 2024 \| $ / shares	45.01
Weighted Average Exercise Price, Options Exercisable at March 29, 2024 \| $ / shares	$ 42.93
Weighted Average Remaining Contractual Term, Options, Outstanding at March 29, 2024	6 years 11 months 23 days
Weighted Average Remaining Contractual Term, Options, Exercisable at March 29, 2024	5 years 4 months 28 days
Aggregate Intrinsic Value, Options, Outstanding at March 29, 2024 \| $	$ 16,386
Aggregate Intrinsic Value, Options, Outstanding at March 29, 2024 \| $	$ 15,090

Stockholders' Equity - Schedule of Share-based Compensation, Restricted Stock, RSU and PSU Activity (Details) shares in Thousands	3 Months Ended
	Mar. 29, 2024 shares
Restricted Stock
Schedule of Restricted Stock Restricted Stock Units and Performance Stock Units [Line Items]
Unvested at December 29, 2023	14
Forfeited or expired	(4)
Unvested at March 29, 2024	10
RSUs
Schedule of Restricted Stock Restricted Stock Units and Performance Stock Units [Line Items]
Unvested at December 29, 2023	401
Granted	415
Vested	(110)
Forfeited or expired	(1)
Unvested at March 29, 2024	705
PSUs
Schedule of Restricted Stock Restricted Stock Units and Performance Stock Units [Line Items]
Unvested at December 29, 2023	56
Granted	390
Vested	(24)
Forfeited or expired	(4)
Unvested at March 29, 2024	418

Basic and Diluted Net Income (Loss) Per Share - Summary of Computation of Basic and Diluted Net Income Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 29, 2024	Mar. 31, 2023
Numerator:
Net income (loss)	$ (3,339)	$ 2,710
Weighted average common shares:
Common shares outstanding	48,907	48,251
Less: Unvested restricted stock		(4)
Denominator for basic calculation	48,907	48,247
Weighted average effects of potentially diluted common stock:
Diluted	48,907	49,500
Net income (loss) per share:
Basic	$ (0.07)	$ 0.06
Diluted	$ (0.07)	$ 0.05
Employee Stock Options
Weighted average effects of potentially diluted common stock:
Diluted		1,116
Unvested Restricted Stock
Weighted average effects of potentially diluted common stock:
Diluted		3
RSUs
Weighted average effects of potentially diluted common stock:
Diluted		81
PSUs
Weighted average effects of potentially diluted common stock:
Diluted		53

Basic and Diluted Net Income (Loss) Per Share - Schedule of Anti-dilutive Securities Excluded from Computation of Earnings Per Share (Details) - shares shares in Thousands	3 Months Ended
	Mar. 29, 2024	Mar. 31, 2023
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Anti-dilutive securities excluded from computation of earnings per share, Amount	4,811	1,407
Employee Stock Option
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Anti-dilutive securities excluded from computation of earnings per share, Amount	4,316	1,392
Restricted stock, RSUs and PSUs
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Anti-dilutive securities excluded from computation of earnings per share, Amount	495	15

Disaggregation of Sales, Geographic Sales and Product Sales - Disaggregation of Sales (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 29, 2024	Mar. 31, 2023
Total net sales	$ 77,356	$ 73,528
Non Consignment Sales [Member]
Total net sales	71,764	67,163
Consignment Sales [Member]
Total net sales	$ 5,592	$ 6,365

Disaggregation of Sales, Geographic Sales and Product Sales - Additional Information (Details)	3 Months Ended		12 Months Ended
	Mar. 29, 2024 Segment Country	Mar. 31, 2023	Dec. 29, 2023
Geographic and Product Data [Line Items]
Number of countries in which Company operates \| Country	75
Number of operating segments \| Segment	1
Sales Revenue, Net \| Geographic Concentration Risk [Member] \| Other than China and Japan [Member] \| Maximum
Geographic and Product Data [Line Items]
Concentration risk, percentage	10.00%
Sales Revenue, Net \| Geographic Concentration Risk [Member] \| China [Member]
Geographic and Product Data [Line Items]
Concentration risk, percentage	49.00%	48.00%
Sales Revenue, Net \| Product Concentration Risk [Member] \| Ophthalmic Surgical Product [Member]
Geographic and Product Data [Line Items]
Concentration risk, percentage	100.00%
Accounts Receivable [Member] \| Geographic Concentration Risk [Member] \| China [Member]
Geographic and Product Data [Line Items]
Concentration risk, percentage	54.00%		70.00%