Staar Surgical Company

Company Overview

Business Model: STAAR Surgical Company designs, develops, manufactures, and sells implantable lenses for the eye and accessory delivery systems. The Company generates worldwide revenue almost exclusively from sales of its Implantable Collamer Lenses (ICLs), which are phakic lenses implanted without removing the eye’s natural crystalline lens. These ICLs are foldable for minimally invasive surgery and are reversible. STAAR markets its ICLs for refractive surgery to treat myopia as the “EVO” family of lenses (EVO ICL, EVO+ ICL, EVO Visian ICL). Its newest offering, EVO Viva, features an extended depth of focus (EDoF) optic for myopia with presbyopia. The Company also sells the Visian ICL for hyperopia. ICLs are available in multiple models, powers, and lengths, including toric versions for astigmatism. STAAR has phased out its historical cataract intraocular lens (IOL) product line, with ICL sales accounting for approximately 100% of net sales in fiscal year 2025.

Market Position: STAAR Surgical Company is the leading manufacturer of phakic implantable lenses globally, dedicated solely to ophthalmic surgery for over 40 years. Its EVO ICL is the only posterior chamber phakic IOL approved by the U.S. Food and Drug Administration (FDA) for marketing and sale in the U.S., and is believed to be the world’s largest selling phakic IOL. The Company has sold over 4,000,000 ICLs worldwide. Key competitive advantages include its proprietary Collamer lens material, which is soft, flexible, and biocompatible, as well as a strong track record of safety, effectiveness, and high patient satisfaction compared to laser surgical procedures and other implantable lenses. The global incidence of myopia is growing, with high myopia becoming more common, which STAAR believes will drive increased demand for refractive procedures, particularly alternatives to laser-based options like LASIK.

Recent Strategic Developments:

• Alcon Merger Termination: On January 6, 2026, the Merger Agreement with Alcon Research, LLC was terminated after STAAR Surgical Company stockholders voted against the merger. STAAR Surgical Company incurred $17.1 million in professional fees and expenses related to the merger in fiscal 2025.
• Cooperation Agreement and Leadership Realignment: Following the merger termination, STAAR Surgical Company entered into a Cooperation Agreement with Broadwood Partners, L.P., its largest stockholder, leading to governance and leadership changes. This included an increase in the Board of Directors size from six to seven, the resignation of two existing directors, and the appointment of three new directors designated by Broadwood Partners, L.P. The Company also reimbursed Broadwood Partners, L.P. and other stockholders approximately $7.0 million in expenses (expected in Q1 2026).
• Executive Leadership Transition: In 2025, STAAR Surgical Company initiated leadership changes, including the appointment of a new Chief Executive Officer and Chief Financial Officer. Effective February 1, 2026, Warren Foust and Deborah Andrews were appointed interim Co-Chief Executive Officers, and a global search for a permanent Chief Executive Officer is underway.
• Manufacturing Expansion: STAAR Surgical Company is expanding its ICL manufacturing capabilities at its Nidau, Switzerland facility to supplement U.S. capacity, aiming to provide optionality under multiple tariff scenarios and support future demand.
• Product Milestones & Launches: In February 2026, STAAR Surgical Company announced it had sold over 4,000,000 ICLs worldwide. The Company plans a full launch of EVO+ in China in 2026 and intends to expand its product offering with additional lens sizes.
• Cost Reduction Initiatives: In the first half of 2025, STAAR Surgical Company implemented measures to reduce costs and discretionary spending, including a leadership realignment and workforce reduction, resulting in $28.6 million in restructuring, impairment, and related charges.

Geographic Footprint: For the fiscal year ended January 2, 2026, STAAR Surgical Company generated 91% of its worldwide revenue from product sales outside the United States. Its products are sold in over 85 countries.

• Direct Distribution: Japan, U.S., Germany, Spain, Singapore, Canada, and the U.K.
• Combined Direct and Independent Distribution: China, Korea, India, France, Benelux, and Italy.
• Independent Distribution: The remaining countries.
• Operational & Administrative Facilities: U.S. (Monrovia, Aliso Viejo, Tustin, Lake Forest, California), Switzerland (Brügg, Nidau), and Japan (Tokyo, Osaka, Musashino City).
• Commercial Offices: China, Germany, Spain, India, Singapore, and the U.K.

Financial Performance

Revenue Analysis

Profitability Metrics:

• Gross Margin: 76.2%
• Operating Margin: (38.3)%
• Net Margin: (33.6)%

Investment in Growth:

• R&D Expenditure: $40.1 million (16.7% of revenue)
• Capital Expenditures: $5.8 million
• Strategic Investments: STAAR Surgical Company is investing in new enterprise resource planning (ERP) and other technology platforms and systems, with capitalized cloud-based software assets totaling $30.7 million as of January 2, 2026.

Business Segment Analysis

Ophthalmic Surgical Product Segment

Financial Performance:

• Revenue: $239.4 million (-23.7% YoY)
• Operating Margin: (38.3)%
• Key Growth Drivers: STAAR Surgical Company's growth strategy focuses on expanding its complete ICL product line into existing and new geographic markets, increasing awareness of the ICL procedure and its clinical benefits, and providing comprehensive surgeon training and education. Strategic imperatives for 2026 include focused growth in key markets, prioritizing investments that support long-term value creation, and accelerating innovation with a clear focus on clinical and commercial impact.

Product Portfolio:

• Major product lines and services within segment: Implantable Collamer Lenses (ICLs), including the EVO family (EVO ICL, EVO+ ICL, EVO Visian ICL) for myopia, EVO Viva with an extended depth of focus (EDoF) optic for myopia with presbyopia, and Visian ICL for hyperopia. Toric ICL (TICL) versions are available for astigmatism correction.
• New product launches or major updates: EVO Viva received CE Mark in July 2020. U.S. FDA approval for EVO ICL, EVO+ ICL, and EVO Visian ICL was granted in March 2022. A full launch of EVO+ in China is planned for 2026, alongside the introduction of additional lens sizes.

Market Dynamics:

• Competitive positioning within segment: STAAR Surgical Company is the leading manufacturer of phakic implantable lenses globally, with its EVO ICL being the world's largest selling phakic IOL and the only foldable, minimally invasive posterior chamber phakic IOL approved in the U.S. Its proprietary Collamer material and strong safety/effectiveness record are key differentiators.
• Key customer types and market trends: Customers include ophthalmic surgeons, vision centers, surgical centers, hospitals, government facilities, and distributors. The market is characterized by intense competition driven by technological innovation. The global incidence of myopia, including high myopia, is increasing, leading to a growing patient population seeking refractive procedures, particularly alternatives to laser-based options like LASIK.

Capital Allocation Strategy

Shareholder Returns:

• Share Repurchases: During fiscal 2025, STAAR Surgical Company repurchased 375,630 shares for an aggregate of $6.5 million under its share repurchase program.
• Dividend Payments: STAAR Surgical Company has not paid cash dividends since its inception and expects to retain future earnings for business development.
• Dividend Yield: Not applicable.
• Future Capital Return Commitments: As of January 2, 2026, $23.5 million remained available for repurchases under the $30 million share repurchase program authorized by the Board of Directors in May 2025.

Balance Sheet Position (as of January 2, 2026):

• Cash and Equivalents: $153.2 million
• Total Debt: STAAR Surgical Company has no material finance lease obligations.
• Net Cash Position: $153.2 million
• Credit Rating: Not disclosed in the filing.
• Debt Maturity Profile: Operating lease obligations total $48.7 million, with $8.2 million due in 2026, $7.6 million in 2027, $7.0 million in 2028, $7.2 million in 2029, $6.2 million in 2030, and $12.6 million thereafter. Pension liabilities total $6.4 million.

Cash Flow Generation:

• Operating Cash Flow: $(34.2) million
• Free Cash Flow: $(40.0) million
• Cash Conversion Metrics: Days’ Sales Outstanding (DSO) was 85 days in 2025 (down from 145 days in 2024). Days’ Inventory on Hand (DOH) for finished goods (including consignment inventory) was 219 days in 2025 (down from 367 days in 2024).

Operational Excellence

Production & Service Model: STAAR Surgical Company manufactures hundreds of different types of ICLs, requiring significant inventory to meet rapid delivery demands. The Company is investing in manufacturing and operations capabilities to meet forecasted demand and shorten lead times. Its ICLs are designed for minimally invasive surgery, with the EVO Experience Center in Lake Forest, California, serving as a hub for comprehensive, hands-on surgeon training and education. STAAR University provides surgeons with access to publications and clinical data to support confidence.

Supply Chain Architecture: STAAR Surgical Company purchases most raw materials and components from external suppliers, with some being single-sourced due to regulatory constraints, cost-effectiveness, availability, quality, and vendor reliability. The Company manufactures the proprietary collagen-containing raw material for its Collamer lenses at its facility in Aliso Viejo, California.

Key Suppliers & Partners:

• Raw Material Suppliers: Specific company names are not disclosed, but some raw materials are single-sourced.
• Manufacturing: Internal manufacturing is key, with facilities in Monrovia, California (principal ICL manufacturing) and Nidau, Switzerland (expanding ICL manufacturing).
• Technology Partners: Not explicitly disclosed.

Facility Network:

• Manufacturing: Principal ICL manufacturing, warehouse, and distribution facilities are in Monrovia, California. Raw material for Collamer lenses is manufactured in Aliso Viejo, California. ICL manufacturing capabilities are being expanded in Nidau, Switzerland.
• Research & Development: A technology center housing the R&D team and labs is located in Tustin, California.
• Distribution: Facilities are maintained in Monrovia, California; Musashino City, Japan; and Brügg, Switzerland.

Operational Metrics:

• Days’ Inventory on Hand (DOH): 219 days (2025) for finished goods, including consignment inventory.
• STAAR Surgical Company expects increased costs and pressure on gross margins in the near-term due to operating two manufacturing sites (U.S. and Switzerland) and lower site utilization impacts cost absorption.

Market Access & Customer Relationships

Go-to-Market Strategy: STAAR Surgical Company employs a commercialization strategy focused on sustainable, profitable growth. This involves driving awareness of the ICL procedure and its clinical benefits, providing extensive surgeon training and support, and positioning ICL products as a premium and primary option for patients seeking visual freedom. Marketing efforts include participation in major ophthalmic conventions, market development, practice support, healthcare professional training, and patient outreach via digital and social media.

Distribution Channels:

• Direct Sales: STAAR Surgical Company utilizes its own sales representatives in Japan, the U.S., Germany, Spain, Singapore, Canada, and the U.K.
• Channel Partners: A combination of STAAR Surgical Company representatives and independent distributors is used in China, Korea, India, France, Benelux, and Italy. Independent distributors cover other international markets.
• Digital Platforms: Digital and social media are leveraged for marketing and patient outreach.

Customer Portfolio:

• Enterprise Customers: STAAR Surgical Company markets its products to ophthalmic surgeons, vision centers, surgical centers, hospitals, government facilities, and distributors.
• Strategic Partnerships: The Company engages in strategic cooperation agreements with customers, including minimum purchase commitments, in exchange for shared marketing, educational training, and general support expenses.
• Customer Concentration: Two China distributors (selling into China and Hong Kong) accounted for approximately 32% of consolidated net sales in fiscal 2025 (down from 51% in 2024 and 57.2% in 2023). These distributors also represented 33% of consolidated trade receivables as of January 2, 2026 (down from 58% in 2024).

Geographic Revenue Distribution:

• Outside U.S.: 91% of total revenue in 2025.
• China (including Hong Kong): 32% of total revenue in 2025 ($77.8 million).
• Japan: $45.3 million in 2025.
• Other Foreign: $93.8 million in 2025.
• Domestic (U.S.): $22.6 million in 2025.
• Growth Markets: The Company reported sales growth in Japan and Korea in 2025.

Competitive Intelligence

Market Structure & Dynamics

Industry Characteristics: The ophthalmic surgical product market is highly competitive, driven by continuous technological innovation and the need for regulatory approval. The market for refractive procedures was estimated at 4.9 million procedures worldwide in 2025, primarily laser vision correction. The global incidence of myopia is increasing, with projections of nearly 5 billion people affected by 2050, creating a growing demand for refractive solutions. Negative publicity surrounding LASIK has reduced patient interest in laser-based procedures, driving demand for alternatives like ICLs.

Competitive Positioning Matrix:

Direct Competitors

Primary Competitors:

• Laser Surgical Procedures: Alcon Research, LLC, Johnson & Johnson, Bausch Health Companies, and Carl Zeiss Meditec AG. These companies possess greater financial, technical, marketing, and distribution resources.
• Phakic Implants: Biotech Vision Care, Care Group, Eyebright, and Ophtec.
• Emerging Competitive Threats: New entrants, particularly from Asia, are introducing low-cost versions of posterior chamber implantable contact lenses. Other companies are also developing competitive products not yet on the market.

Competitive Response Strategy: STAAR Surgical Company's strategy includes continuous development and launch of innovative products, significant investment in market development, practice support, healthcare professional training, and patient outreach. The Company aims to position its ICL products as a premium and primary option. Furthermore, the expansion of manufacturing capabilities in Switzerland is intended to provide strategic optionality in response to competitive and geopolitical dynamics.

Risk Assessment Framework

Strategic & Market Risks

Market Dynamics: The Company faces risks from economic stagnation, lack of consumer confidence, or recession, particularly in key markets like China, where a sluggish economy and weak consumer consumption negatively impacted financial results in 2024 and 2025, and are expected to continue impacting demand in 2026. Negative publicity regarding refractive surgery, especially laser-based procedures, could also reduce patient interest in ICLs. Technology Disruption: The ophthalmic industry is characterized by rapid technological innovation. New or improved competitor products could render existing STAAR Surgical Company products less attractive or obsolete. A failure to develop and launch new, effective products could harm sales and results. Customer Concentration: Two China distributors accounted for approximately 32% of consolidated net sales in fiscal 2025. A cessation of business or significant underperformance by these distributors could lead to a substantial reduction in sales.

Operational & Execution Risks

Supply Chain Vulnerabilities: STAAR Surgical Company relies on external suppliers for most raw materials and components, with some being single-sourced. Disruptions in supply, non-compliance by suppliers, or issues with the Company's internal manufacturing of proprietary collagen-containing raw materials could lead to production delays and lost sales. Geographic Concentration: The principal ICL manufacturing facility is in Monrovia, California, making operations vulnerable to disruptions from natural disasters (e.g., earthquakes, fires) or man-made events. Ramping up production at the new Switzerland facility is subject to risks and uncertainties, including delays in regulatory approvals and manufacturing challenges. Capacity Constraints: Failure to adequately forecast demand or maintain sufficient raw material and finished product supply could interrupt product availability. Slower-than-planned manufacturing output or significant manufacturing challenges could delay meeting customer demand. The operation of two manufacturing sites is expected to increase costs and inventory levels in the near-term.

Financial & Regulatory Risks

Market & Financial Risks: Fluctuations in foreign currency exchange rates (primarily Japanese yen, euro, Swiss franc) can impact revenue and profitability, as 91% of 2025 sales were outside the U.S. The Company does not actively hedge currency exposure. Inflation could increase product costs and credit risks. STAAR Surgical Company's defined benefit pension plans are underfunded, potentially requiring significant future cash payments. Regulatory & Compliance Risks: Extensive government regulations worldwide increase costs and can impede product sales. Obtaining and maintaining premarket clearances or approvals is a complex, costly, and time-consuming process, with no guarantee of success or timely approval. The transition to new regulations, such as the EU Medical Device Regulation (MDR) and the U.S. FDA's Quality Management System Regulation (QMSR), is expected to incur additional costs. Non-compliance with healthcare fraud and abuse laws, product recalls, or required modifications to products could lead to penalties, reputational damage, and operational disruptions. Data Privacy: STAAR Surgical Company is subject to various data protection and privacy regulations (e.g., GDPR, CCPA). Non-compliance or data breaches could result in significant penalties, operational disruptions, and reputational harm.

Geopolitical & External Risks

Geopolitical Exposure: Global operations, with 91% of sales outside the U.S., expose STAAR Surgical Company to economic, social, and political uncertainties, particularly in emerging markets. Macroeconomic conditions in China, which accounted for 32% of 2025 sales, significantly impact the Company's financial results. Trade Relations: Deteriorating trade relations, such as those between the U.S. and China, could lead to new or increased tariffs, quotas, or other restrictions, adversely impacting sales and costs. For example, U.S. tariffs on Chinese goods and retaliatory Chinese tariffs on U.S.-origin goods pose a significant risk, although consignment agreements have been implemented to mitigate near-term tariff exposure in China. Public Health Crises: Natural disasters, public health crises (e.g., pandemics), or political crises (e.g., war, terrorism) could adversely impact business operations, customer spending, and supply chains globally.

Innovation & Technology Leadership

Research & Development Focus: STAAR Surgical Company is committed to advancing ophthalmic products through innovative lenses, accessory delivery systems, materials, and designs.

• Core Technology Areas: Focus on its proprietary Collamer lens material and advanced optic designs, such as the extended depth of focus (EDoF) optic in EVO Viva.
• Innovation Pipeline: Key R&D areas include the development of new presbyopia-correcting phakic IOLs that simultaneously correct sphere and cylinder (astigmatism), preloaded injector systems for ophthalmic medical devices, and a new generation of ophthalmic medical devices and materials.

Intellectual Property Portfolio: STAAR Surgical Company protects its investments through patents, trademarks, licenses, trade secrets, and copyrights.

• Patent Strategy: As of January 2, 2026, the Company owned approximately 87 U.S. and foreign patents and had 30 patent applications pending. Its IP primarily covers the design, production, and manufacture of Collamer lens material, ICLs, and related delivery systems. The Company relies more on trade secrets than patents.
• Licensing Programs: Not explicitly detailed for revenue generation.
• IP Litigation: The Company may engage in litigation to enforce its IP rights or defend against infringement claims, which can be costly and divert resources.

Technology Partnerships: Not explicitly disclosed in the filing.

Leadership & Governance

Executive Leadership Team

Leadership Continuity: Following the termination of the Alcon Research, LLC merger and a Cooperation Agreement with Broadwood Partners, L.P., STAAR Surgical Company underwent significant leadership changes. The former Chief Executive Officer's employment was terminated effective January 31, 2026. Interim Co-Chief Executive Officers were appointed, and a global search for a permanent Chief Executive Officer is underway.

Board Composition: The Board of Directors was expanded from six to seven directors. Two existing directors resigned, and three new directors (Neal C. Bradsher, Richard T. LeBuhn, and Christopher Min Fang Wang) designated by Broadwood Partners, L.P. were appointed. Neal C. Bradsher was elected as Board Chair. The Board's Audit Committee oversees cybersecurity risk management.

Human Capital Strategy

Workforce Composition (as of January 2, 2026):

• Total Employees: Approximately 957 employees.
• Geographic Distribution: 406 employees are located outside the U.S.
• Skill Mix: 921 regular full-time employees and 36 temporary employees.

Talent Management:

• Acquisition & Retention: STAAR Surgical Company actively seeks to attract, develop, and retain talented individuals, offering competitive compensation and benefits.
• Retention Metrics: The global overall turnover rate in fiscal year 2025 was approximately 32.2% (excluding temporary employees), which is higher than the medical device industry average of 19.7%.
• Employee Value Proposition: Compensation and benefits programs vary by country but include cash bonuses, stock awards, a 401(k) plan, health insurance, health savings and flexible spending accounts, paid time off, family leave, and employee assistance programs.

Diversity & Development: STAAR Surgical Company strives to foster a diverse, inclusive, and safe workplace, providing employees with opportunities for career growth and development through various training programs, including new skill acquisition, leadership development, and ethics training.

Environmental & Social Impact

Environmental Commitments: STAAR Surgical Company aims to achieve its corporate goals in an environmentally sustainable manner.

• Climate Strategy: A cross-functional climate risk committee identifies climate change risks and opportunities to reduce environmental impact. Initiatives include investment in solar photovoltaic panels at several California locations, including the principal manufacturing facility in Monrovia, CA.
• Emissions Targets: Not explicitly disclosed in the filing.
• Carbon Neutrality: Not explicitly disclosed in the filing.
• Renewable Energy: Investment in solar photovoltaic panels.

Supply Chain Sustainability: Not explicitly detailed in the filing beyond general mentions in risk factors.

Social Impact Initiatives: Not explicitly detailed in the filing beyond general mentions in risk factors.

Business Cyclicality & Seasonality

Demand Patterns:

• Seasonal Trends: While individual markets may experience seasonal trends quarterly, overall seasonality does not materially affect STAAR Surgical Company's aggregate sales. However, distributors in China historically increased purchases in anticipation of a summer "high season," which can create volatility.
• Economic Sensitivity: Refractive surgery is an elective procedure, typically paid for or financed by patients, making it sensitive to economic conditions. Economic stagnation, lack of consumer confidence, or recession in major markets can slow or decline ICL sales. The sluggish economy and weak consumer consumption in China negatively impacted results in 2024 and 2025 and are expected to continue in 2026.
• Industry Cycles: Not explicitly detailed beyond general economic sensitivity.

Planning & Forecasting: Distributor agreements in China include minimum inventory requirements based on forecasted demand. STAAR Surgical Company plans to adjust production output and optimize inventory levels (both Company-held and distributor-held) in fiscal 2026 based on forecasted demand.

Regulatory Environment & Compliance

Regulatory Framework: STAAR Surgical Company operates under extensive medical device regulations in nearly all countries where it sells products, including premarket clearance/approval, design, manufacturing, labeling, marketing, and post-market surveillance.

• Industry-Specific Regulations:
  • U.S. FDA: ICLs are Class III devices requiring Premarket Approval (PMA), while lens injector systems are Class I devices subject to 510(k) premarket review. Compliance with Quality System Regulation (QSR) and Bioresearch Monitoring Program (BIMO) is mandatory.
  • European Economic Area (EEA): Products must comply with the EU Medical Devices Directive (93/42/EEC) and the new Medical Device Regulation (MDR), requiring a CE Mark. Transition periods for MDR compliance extend to May 2026 for Class III custom-made implantable devices, December 31, 2027 for Class III and implantable Class IIb devices, and December 31, 2028 for other classes requiring Notified Body involvement.
  • Japan: Regulated by the Ministry of Health, Labor, and Welfare (MHLW) and Pharmaceuticals and Medical Devices Agency (PMDA), requiring shonin (premarket device approval) or ninsho (premarket certification) and compliance with GQP and GVP.
  • China: Regulated by the National Medical Products Administration (NMPA), with ICLs classified as Class II and Class III devices requiring a mandatory registration regime and Product Technical Requirements (PTR).
  • Korea: Regulated by the Ministry of Food and Drug Safety (MFDS), requiring registration/approval and compliance with Korean Good Manufacturing Practice (KGMP) quality system standards.
• International Compliance: Regulatory requirements vary significantly by country, increasing costs and complexity. Trade & Export Controls: STAAR Surgical Company is exposed to risks from trade restrictions, tariffs, and geopolitical conflicts, particularly between the U.S. and China. In 2025, the U.S. announced tariffs on Chinese goods, prompting retaliatory tariffs from China. While a one-year agreement (expiring November 10, 2026) suspended heightened reciprocal tariffs, the situation remains uncertain. Consignment agreements were implemented in China to mitigate tariff risk. Legal Proceedings: The Company is involved in various legal proceedings in the normal course of business but does not believe any known claims are likely to have a material adverse effect on its financial condition or results of operations.

Tax Strategy & Considerations

Tax Profile:

• Effective Tax Rate: The effective tax rate was 2.2% in 2025, (123.2)% in 2024, and 36.6% in 2023, differing from the U.S. federal statutory rate of 21% primarily due to foreign jurisdictions and deferred tax asset realizability.
• Geographic Tax Planning: STAAR Surgical Company operates under a tax holiday in Switzerland from 2020 through 2029, conditional on meeting specific activity and investment requirements. The tax impact related to this holiday was a benefit of $(1.9) million in 2025, and expenses of $4.5 million in 2024 and $8.7 million in 2023.
• Tax Reform Impact: The One Big Beautiful Bill Act (OBBBA), enacted July 4, 2025, introduced changes to U.S. tax law (e.g., immediate expensing of domestic R&D, accelerated deductions), which had an immaterial impact on the effective tax rate in 2025. The Company is also monitoring the OECD/G20 two-pillar plan on global tax reform, including a global minimum corporate tax rate of 15% for companies with revenue above €750 million.
• Deferred Tax Assets/Liabilities: As of January 2, 2026, STAAR Surgical Company maintained a full valuation allowance against its U.S. deferred tax assets due to cumulative losses in its U.S. operations over the most recent three-year period. Deferred tax assets of foreign subsidiaries are expected to be realized.
• NOL & Credit Carryforwards (as of January 2, 2026):
  • Pre-2018 federal NOL carryforwards: $42.0 million (expire starting 2027).
  • Post-2018 federal NOL carryforwards: $124.9 million (indefinite).
  • State NOL carryforwards: $56.3 million (expire starting 2026).
  • Federal credit carryforwards: $2.0 million (expire starting 2030).
  • State research tax credit carryforwards: $1.0 million (indefinite).
  • Federal foreign tax credit carryforwards: $2.0 million (expire starting 2028).

Insurance & Risk Transfer

Risk Management Framework: STAAR Surgical Company manages risks based on management's judgment of appropriate trade-offs between risks, opportunity, and costs. The Company maintains insurance coverage for various matters, including product liability and certain securities claims. However, it does not carry insurance or reserve funds for interruptions or potential losses arising from earthquakes or terrorism. Cyber insurance is maintained but may be insufficient for all potential losses.

Insurance Coverage:

• Key Policy Types: Product liability insurance, certain securities claims insurance.
• Coverage Limits: Not explicitly disclosed.
• Self-Insurance Retention: Not explicitly disclosed.

Risk Transfer Mechanisms:

• Hedging Strategies: STAAR Surgical Company does not actively hedge its exposure to currency rate fluctuations.
• Contractual Risk Allocation: The Company enters into indemnification agreements with its directors and officers and agrees to indemnify customers against third-party claims for intellectual property infringement and negligence.