12. Segment and Geographic Information

The Company regularly reviews its segment financial information and the approach used by the chief operating decision maker (“CODM”), the Chief Executive Officer, to evaluate performance and allocate resources. The Company considers the business to be a single operating segment engaged in the development, manufacturing, and marketing of medical devices and implants, as well as the processing and cryopreservation of human tissues for implantation in patients, all used primarily in the field of vascular surgery.

The CODM assesses performance for its single operating segment and decides how to allocate resources based on net income that also is reported on the consolidated statements of operations. The measure of segment assets is reported on the consolidated balance sheets as total consolidated assets. The accounting policies of the segment are the same as those described in "Description of Business and Summary of Significant Accounting Policies" (see Note 1).

The CODM uses net income to evaluate income generated from segment assets (return on assets) in deciding whether to reinvest profits into the single operating segment or into other parts of the entity, such as for acquisitions, dividend payments, and/or short-term marketable security investments. Net income is also used to monitor budget versus actual results, which is used in assessing performance of the segment and in establishing management’s compensation.

In addition to total segment net income, the CODM’s quarterly reporting package includes several highlighted expense categories that the CODM considers key strategic drivers of the Company’s long-term profitability. The following is the Company’s operating segment reconciliation of net income, including significant segment expenses:

 

Year ended December 31,

 

 

2025

 

 

2024

 

 

2023

 

 

(in thousands)

 

Net sales

 

$

249,602

 

 

$

219,863

 

 

$

193,484

 

Cost of sales

 

 

71,063

 

 

 

68,962

 

 

 

66,435

 

Gross profit

 

 

178,539

 

 

 

150,901

 

 

 

127,049

 

Less:

 

 

 

 

 

 

 

 

 

Selling expense

 

 

49,434

 

 

 

42,109

 

 

 

37,166

 

Marketing expense

 

 

5,030

 

 

 

4,628

 

 

 

3,888

 

Administrative expense

 

 

28,243

 

 

 

23,934

 

 

 

21,563

 

Finance expense

 

 

11,040

 

 

 

9,896

 

 

 

8,227

 

Management information systems expense

 

 

2,741

 

 

 

2,428

 

 

 

2,042

 

Research and development expense

 

 

4,039

 

 

 

3,431

 

 

 

2,738

 

Process engineering expense

 

 

2,630

 

 

 

2,938

 

 

 

3,632

 

Regulatory and clinical expense

 

 

7,470

 

 

 

9,281

 

 

 

10,596

 

Restructuring expense

 

 

-

 

 

 

-

 

 

 

485

 

Other expense (income), net*

 

 

10,178

 

 

 

8,218

 

 

 

6,607

 

Net income

 

$

57,734

 

 

$

44,038

 

 

$

30,105

 

 

* Refer to the consolidated statements of operations for the components of other income and expense and related amounts.

Most of the Company’s revenues are generated in the United States, Germany, the United Kingdom, other European countries, and Canada. Substantially all of the Company’s assets are located in the United States and Germany. Net sales to unaffiliated customers based on customer location by country were as follows:

 

Year ended December 31,

 

 

2025

 

 

2024

 

 

2023

 

 

(in thousands)

 

United States

 

$

141,566

 

 

$

128,743

 

 

$

117,811

 

Germany

 

 

17,897

 

 

 

14,420

 

 

 

13,420

 

Canada

 

 

15,251

 

 

 

13,669

 

 

 

10,786

 

United Kingdom

 

 

13,216

 

 

 

10,960

 

 

 

8,561

 

Other countries

 

 

61,672

 

 

 

52,071

 

 

 

42,906

 

Net sales

 

$

249,602

 

 

$

219,863

 

 

$

193,484

 

 

Long-term assets by country, including property and equipment, net and right-of-use leased assets were as follows:

 

As of December 31,

 

 

2025

 

 

2024

 

 

2023

 

 

(in thousands)

 

United States

 

$

36,874

 

 

$

36,291

 

 

$

34,729

 

Germany

 

 

2,159

 

 

 

2,163

 

 

 

2,350

 

Other countries

 

 

3,726

 

 

 

3,114

 

 

 

2,702

 

Total long-term assets

 

$

42,759

 

 

$

41,568

 

 

$

39,781

 

Historical Timeline

Fiscal YearFiled
2025Feb 26, 2026Showing above
2024Feb 28, 2025
2023Feb 29, 2024
2022Mar 1, 2023
2021Feb 28, 2022
2020Mar 12, 2021
2019Mar 12, 2020
2018Mar 11, 2019
2017Mar 9, 2018
2016Mar 9, 2017
2015Mar 10, 2016

About Segments Disclosures

Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.

Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.