STAAR Surgical Company

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
e
Form 10-K
c
(Mark One)
܇
ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the fiscal year ended January 2, 2026
Or
ն
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from          to
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.)
25510 Commercentre 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
Securities registered pursuant to Section 12(g) of the Act: None
Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.  Yes ܇
No ն
Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act.  Yes ն
No ܇
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 ն
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 ն
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a 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
ն
Non-accelerated filer
ն
Smaller reporting company
ն
Emerging growth company
ն
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.  ն
Indicate by check mark whether the registrant has filed a report on and attestation to its management’s assessment of the effectiveness of its
internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262(b)) by the registered public accounting firm
that prepared or issued its audit report.  ܇
If securities are registered pursuant to Section 12(b) of the Act, indicate by check mark whether the financial statements of the registrant
included in the filing reflect the correction of an error to previously issued financial statements. ն
Indicate by check mark whether any of those error corrections are restatements that required a recovery analysis of incentive-based
compensation received by any of the registrant’s executive officers during the relevant recovery period pursuant to §240.10D-1(b). ն
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).  Yes ն
No ܇
The aggregate market value of the voting and non-voting common equity held by non-affiliates of the registrant as of June 27, 2025, the last
business day of the registrant’s most recently completed second fiscal quarter, was approximately $883,907,564 based on the closing price per share
of $16.92 of the registrant’s Common Stock on that date.
The registrant has 49,888,379 and 49,512,749 shares of common stock, par value $0.01 per share, issued and outstanding, respectively, as of
February 27, 2026.
DOCUMENTS INCORPORATED BY REFERENCE
Portions of the registrant’s definitive proxy statement relating to its 2026 annual meeting of stockholders, which will be filed with the Securities
and Exchange Commission pursuant to Regulation 14A within 120 days of the close of the registrant’s last fiscal year, are incorporated by reference
into Part III of this report.


1
STAAR SURGICAL COMPANY
TABLE OF CONTENTS
PAGE
NUMBER
PART I
................................................................................................................................................2
ITEM 1.
..................................................................................................................................
Business
2
ITEM 1A.
...........................................................................................................................
Risk Factors
18
ITEM 1B.
................................................................................................
Unresolved Staff Comments
33
ITEM 1C.
........................................................................................................................
Cybersecurity
33
ITEM 2.
..............................................................................................................................
Properties
34
ITEM 3.
.................................................................................................................
Legal Proceedings
35
ITEM 4.
.......................................................................................................
Mine Safety Disclosures
35
PART II
................................................................................................................................................35
ITEM 5.
............................................................................................
Market for Registrant’s Common Equity, Related Stockholder Matters, and Issuer
Purchases of Equity Securities
35
ITEM 6.
..............................................................................................................................
[Reserved]
37
ITEM 7.
.............................................................................................................................
Management’s Discussion and Analysis of Financial Condition and Results of
Operations
38
ITEM 7A.
........................................
Quantitative and Qualitative Disclosures About Market Risk
48
ITEM 8.
................................................................
Financial Statements and Supplementary Data
49
ITEM 9.
..............................................................................................................................
Changes in and Disagreements with Accountants on Accounting and Financial
Disclosure
49
ITEM 9A.
......................................................................................................
Controls and Procedures
49
ITEM 9B.
................................................................................................................
Other Information
51
ITEM 9C.
............................
Disclosure Regarding Foreign Jurisdictions that Prevent Inspections
51
PART III
................................................................................................................................................51
ITEM 10.
..............................................
Directors, Executive Officers, and Corporate Governance
51
ITEM 11.
......................................................................................................
Executive Compensation
51
ITEM 12.
.............................................................................................................
Security Ownership of Certain Beneficial Owners and Management and Related
Stockholder Matters
52
ITEM 13.
..............
Certain Relationships and Related Transactions, and Director Independence
52
ITEM 14.
.............................................................................
Principal Accounting Fees and Services
52
PART IV
................................................................................................................................................52
ITEM 15.
.....................................................................
Exhibits and Financial Statement Schedules
52
ITEM 16.
...........................................................................................................
Form 10-K Summary
55
SIGNATURES................................................................................................................................................56

2
PART I
SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS AND INDUSTRY DATA
This Annual Report on Form 10-K (Annual Report) contains statements that 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. All statements other than statements
of historical or current facts in this report or referred to or incorporated by reference into this report are forward-
looking statements. These statements include comments regarding the intent, belief or current expectations of the
Company and its management. 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. Forward-looking statements
contained in this Annual Report include, without limitation, statements regarding the intent, belief or current
expectations of the Company and its management regarding any of the following:  demand for our Implantable
Collamer® Lenses (ICLs); the benefits of our leadership realignment and related efforts; China macroeconomic
conditions, procedure volumes, demand, and inventory levels; 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 plans, strategies, and objectives of management for future operations or prospects for achieving
such plans, including statements under the caption “Strategic Imperatives for 2026” in Part II. Item 7.
“Management’s Discussion and Analysis of Financial Condition and Results of Operations”; 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 new or improved products;
commercialization of new or improved products; future economic conditions or size of market opportunities
globally; expected costs of operations; statements of belief, including as to achieving business plans for 2026 and
beyond; expected regulatory activities and approvals, product launches, and any statements of assumptions
underlying any of the foregoing. 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 are included in the risk factors set forth in
Item 1A, “Risk Factors.” We disclaim any intention or obligation to update or revise any financial projections or
forward-looking statements due to new information or other events, except as required by law.
This Annual Report contains estimates, projections and other information concerning the ophthalmic industry,
our business, and the markets for certain medical conditions, procedures, and products. Information that is based
on estimates, forecasts, projections, market research or similar methodologies is inherently subject to uncertainties
and actual events or circumstances may differ materially from the estimates and forecasts reflected in this
information. Unless otherwise expressly stated, we obtained this industry, business, market, and other data from
reports, research surveys, studies, and similar data prepared by market research firms and other third parties,
industry, medical and general publications, government data, and similar sources.
In order to assist investors and prospective investors with an understanding of the ophthalmic industry, our
business, certain medical conditions, procedures and products, we have included in this Annual Report a discussion
of the structure and function of the human eye, commencing on page 8, and a glossary explaining many of the
technical terms used in this Annual Report, commencing on page 17.
ITEM 1.
Business
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. Unless the context indicates otherwise, “we,”
“us,” the “Company,” and “STAAR” refer to STAAR Surgical Company and its consolidated subsidiaries.

3
STAAR generates 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.
We market and sell our ICLs for refractive surgery to treat myopia (nearsightedness) as our “EVO” family of
lenses. We believe our EVO lenses are an “Evolution in Visual Freedom” designed to provide premium refractive
outcomes while optimizing patient comfort. Our EVO family of lenses includes our EVO ICL, EVO+ ICL, and
EVO Visian ICL. Our newest offering, EVO Viva, has an extended depth of focus (EDoF) optic, which is designed
to treat myopia with presbyopia (age-related loss of ability to focus). We also market and sell an ICL lens to treat
hyperopia (farsightedness), which we call our Visian ICL. We make our ICL product offerings available in multiple
models, powers and lengths, including some with toric ICL (TICL) versions to correct for astigmatism (blurred
vision). Not all of our products are currently available in all markets where we sell ICLs today.
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. Historically, the Company also manufactured and sold intraocular lenses (or
“IOLs”) for use in surgery to treat cataracts. As the Company has focused its business and strategy on its ICL
product offerings, we have phased out our cataract IOL product line. For the fiscal year ended January 2, 2026,
approximately 100% of our net sales were generated from sales of ICLs.
Operations
STAAR has significant operations globally. For the fiscal year ended January 2, 2026, the Company generated
91% of its reported worldwide revenue from product sales outside the United States. STAAR products have been
sold in more than 85 countries, with direct distribution (i.e., via STAAR representatives) in Japan, the U.S.,
Germany, Spain, Singapore, Canada, and the U.K., with a combination of direct distribution and independent
distribution (i.e., via distributors and STAAR representatives) in China, Korea, India, France, Benelux, and Italy,
and with independent distribution in the remainder of the countries where we sell.
STAAR maintains operational and administrative facilities in the U.S., Switzerland, and Japan. An overview of
STAAR’s current global operations and key facilities is as follows:
•
United States. STAAR’s global administrative offices, principal manufacturing, warehouse, and
distribution facilities are located in Monrovia, California. We manufacture the raw material for Collamer
lenses in our facility in Aliso Viejo, California. STAAR also operates a technology center housing its
research and development (R&D) team and labs in Tustin, California. Our corporate headquarters,
including our executive offices, our EVO Experience Center, and additional operational facilities, are
located in Lake Forest, California.
•
Switzerland. STAAR operates administrative, distribution, operational and manufacturing facilities in
Brügg and Nidau, Switzerland under its wholly owned subsidiary, STAAR Surgical AG. We are in the
process of expanding our manufacturing capabilities for STAAR’s ICL products in our Nidau, Switzerland
facility.
•
Japan. STAAR operates administrative and distribution facilities in Japan under its wholly owned
subsidiary, STAAR Japan Inc. (STAAR Japan). STAAR Japan’s administrative facilities are in Tokyo and
Osaka, and its distribution facility is in Musashino City, in greater Tokyo.
We also maintain commercial offices in China, Germany, Spain, India, Singapore, and the U.K.
Termination of Alcon Merger Agreement
As previously disclosed, on August 4, 2025, STAAR entered into an Agreement and Plan of Merger (the
“Merger Agreement”) with Alcon Research, LLC, a Delaware limited liability company (“Alcon”), and Rascasse
Merger Sub, Inc., a Delaware corporation and a wholly owned direct subsidiary of Alcon (“Merger Sub”). The
Merger Agreement provided, among other things, that subject to the satisfaction or waiver of the conditions set forth

4
therein, Merger Sub will merge with and into the Company (the “Merger”), with the Company surviving the Merger
as a wholly owned subsidiary of Alcon. The Company and Alcon entered into two amendments to the Merger
Agreement, on November 7, 2025 and December 9, 2025, and the Company held a special meeting of stockholders
(the “Special Meeting”) to vote on the Merger on January 6, 2026. At the Special Meeting, the Company’s
stockholders voted against the Merger, and the Merger Agreement was terminated in accordance with its terms
effective January 6, 2026. None of the Company, Alcon or Merger Sub was required to pay any termination fee as a
result of the termination of the Merger Agreement, and the parties are responsible for their respective costs and
expenses related to the Merger Agreement and the transactions contemplated thereby. During fiscal 2025, we
incurred $17.1 million in professional fees and expenses related to the Merger, which are recorded as Merger
transaction and related costs on the Consolidated Statement of Operations. Following the termination of the Merger
Agreement, on January 14, 2026, STAAR entered into a letter agreement (the “Cooperation Agreement”) with
Broadwood Partners, L.P. and its affiliates (“Broadwood”), the Company’s largest stockholder. The Cooperation
Agreement provided for certain governance and leadership changes, as well as reimbursement by the Company of
expenses incurred by Broadwood and other stockholders in connection with their engagement with the Company,
including the Special Meeting. See Note 1 – Organization and Description of Business and Accounting Policies –
Termination of Alcon Merger Agreement and Note 19 – Subsequent Events to the Consolidated Financial
Statements for information about the Merger Agreement and the Cooperation Agreement.
Financial Information about Segments and Geographic Areas
100% of the Company’s sales are generated from the ophthalmic surgical product segment and, therefore, the
Company operates as one operating segment for financial reporting purposes. The Company’s principal products are
ICLs used in refractive surgery. See Note 17 – Disaggregation of Revenues, Geographic Sales and Product Sales to
the Consolidated Financial Statements for financial information about product lines and operations in geographic
areas.
Principal Products
STAAR’s principal products are ICLs used in refractive surgery, including our EVO family of lenses. In
designing our ICL product offerings, we seek to delight patients and surgeons by:
•
Improving patient outcomes;
•
Minimizing patient risk; and
•
Simplifying ophthalmic procedures and post-operative care for the surgeon and the patient.
Refractive surgery corrects visual disorders that have traditionally been treated by eyeglasses or contact lenses.
The field of refractive surgery includes both lens-based procedures, using products like our ICLs, and laser-based
procedures that involve the removal or modification of corneal eye tissue, like LASIK and SMILE. Our ICL
products are designed to treat a wide range of refractive conditions within commonly known vision disorders such as
myopia (nearsightedness), hyperopia (farsightedness), astigmatism (blurred vision) and presbyopia (age-related loss
of ability to focus).
All of our ICLs fold for minimally invasive implantation. During a quick surgical procedure, the ICL will be
implanted behind the iris and in front of the natural crystalline lens, using techniques similar to those used to implant
an IOL during cataract surgery, except that the natural lens remains intact in the eye. Lenses of this type are
generically called “phakic IOLs” or “phakic implants” because they work along with the patient’s natural lens, or
phakos, rather than replacing it. The surgeon typically implants the ICL using topical anesthesia on an outpatient
basis. The patient usually experiences immediate vision improvement within a day. Typically, ICL surgery is an
elective procedure paid for or financed by the patient.
Our 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 we believe it is the world’s largest selling phakic IOL. Our
biocompatible Collamer material belongs to a family of materials known as collagen copolymers. Collagen
copolymers are compounds formed by joining molecules of collagen derived from biological sources with synthetic
monomer molecules. The proprietary Collamer material is exclusive to us. We believe that the biocompatibility of
the Collamer material used for our ICL product line is a significant factor in the ability to place this lens safely in the
posterior chamber of the eye.
STAAR began selling the ICL for myopia for use outside the U.S. in 1997. U.S. sales commenced in 2006. In
September 2011, STAAR launched the ICL with CentraFLOW technology, commonly known as EVO ICL, which

5
uses a port in the center of the ICL optic in markets outside the U.S. The port is of a size intended to optimize the
flow of fluid within the eye without affecting the quality of vision. The central port also eliminates the need for the
surgeon to perform a YAG peripheral iridotomy procedure days before the ICL implant. The CentraFLOW
technology makes the visual outcomes of the ICL available through a relatively quick and comfortable surgical
implantation experience. We are authorized to sell the EVO ICL in all countries where we sell our ICL family of
lenses. In December 2015, we received the CE Mark for EVO+, an ICL with CentraFLOW technology and an
expanded optical zone of up to 20%. We believe the expanded optical zone may further improve certain patients’
visual experience, thus making the ICL increasingly desirable for both patients and ophthalmic surgeons. We are
authorized to sell the EVO+ in the following regions: the approximately 31 countries that require the European
Union CE Mark, China, Korea, Japan, India, Canada, the U.S., Hong Kong, Turkey, and several countries in the
Middle East. In March 2022, the U.S. FDA granted approval of the EVO ICL, EVO+ ICL, and the EVO Visian ICL
(for the correction of myopia and myopia with astigmatism). The Visian ICL for hyperopia, which treats
farsightedness, is sold primarily in countries that require the European Union CE Mark. In July 2020, we received
the CE Mark for EVO Viva, a presbyopia-correcting ICL with an aspheric EDoF optic. The launch of EVO ICL and
EVO+ ICL have helped drive our growth, and in February 2026, STAAR announced the achievement of a
significant milestone for the Company, having sold an aggregate of more than 4,000,000 ICLs worldwide.
We make our ICL product offerings available in multiple models, powers and lengths, including some with toric
ICL (TICL) versions to correct for astigmatism. As a result, we manufacture hundreds of different types of lenses.
This requires us to carry a significant amount of inventory to meet customer preference for rapid delivery. We are
investing in our manufacturing and operations capabilities to be able to meet forecasted demand and further shorten
lead times.
According to Market Scope, LLC, a publisher of ophthalmic industry data, approximately 4.9 million refractive
procedures, primarily laser vision procedures, were expected to be performed worldwide in 2025. The incidence of
myopia is growing globally, with high myopia becoming more common according to recently published articles,
with myopia and high myopia affecting nearly 5 billion and 1 billion people, respectively, by 2050 (Global
Prevalence of Myopia and High Myopia and Temporal Trends from 2000 through 2050, Ophthalmology, Vol. 123,
No. 5, May 2016; Global trends in myopia management attitudes and strategies in clinical practice, Contact Lens
and anterior Eye, Vol. 39, 2016). We believe this will result in a significantly increased number of patients seeking
refractive procedures. We believe that over the past decade negative publicity regarding LASIK has reduced patient
interest in the LASIK procedure. The ICL is a lens-based refractive procedure (unlike LASIK), and STAAR has sold
more than 4,000,000 ICLs to date. Surgeons have published hundreds of peer-reviewed articles with clinical data
regarding the safety, effectiveness, and visual quality of the ICL. We believe the ICL provides a safe and effective
solution for the growing number of patients with refractive conditions who will seek visual freedom from eyeglasses
and contact lenses. Further, we believe there is a growing number of patients with refractive conditions who will
seek visual freedom from eyeglasses and contact lenses, many of whom are looking for alternatives to laser-based
refractive procedures.
We plan to continue to develop and launch innovative products to support clinical needs and to address the
increasing demands of our customers. As part of our sales and marketing efforts, we attend and participate in major
ophthalmic conventions around the world and invest in market development, practice support, healthcare
professional training and patient outreach. We have started working more closely with leading refractive clinics to
drive awareness of the ICL procedure and the clinical benefits of our ICLs and to enhance education and practice
development. Our marketing programs seek to position our ICL products as a premium and primary option for
appropriate patients at the clinic and via digital and social media. We believe that surgeon education and training is
critical to the continued adoption of the ICL procedure. STAAR offers surgeons access to publications, key clinical
outcomes data, and other resources to support clinical confidence through STAAR University. In addition, our EVO
Experience Center at our headquarters in Lake Forest, California, serves as a hub for comprehensive, hands-on
training and education in lens-based vision correction. STAAR offers a comprehensive range of professional
education programs to support ophthalmic professionals including wet labs, peer mentorship, and proctorship.
Sales of ICLs accounted for approximately 100% of our total sales in fiscal 2025, approximately 100% of our
total sales in fiscal 2024, and approximately 99% of our total sales in fiscal 2023.
Other Products
STAAR generates worldwide revenue almost exclusively from sales of our ICLs. In prior years, we also
recorded Other Products revenue, which included sales of IOLs, delivery systems and normal recurring sales
adjustments such as sales return allowances. Historically, the Company manufactured and sold IOLs for use in

6
surgery to treat cataracts, as well as injectors for use in cataract surgery and injector parts. Sales from these cataract
IOLs and other surgical products were recorded as Other Products revenue. As the Company has focused its
business and strategy on its ICL product offerings, we have phased out sales of our cataract IOLs and other surgical
products. We did not record revenue from cataract IOL sales in fiscal 2025, and we do not expect such sales in the
future. Other Products revenue accounted for less than 1% of our total sales in fiscal 2024, and approximately 1% of
our total sales in fiscal 2023.
Sources and Availability of Raw Materials
STAAR uses a wide range of raw materials in the production of our ICLs. STAAR purchases most of the raw
materials and components from external suppliers. Some of our raw materials are single-sourced due to regulatory
constraints, cost effectiveness, availability, quality, and vendor reliability issues. Many of our components are
standard parts or materials and are available from a variety of sources. We do not typically pursue regulatory and
quality certification of multiple sources of supply.
Patents, Trademarks, and Licenses
We strive to protect our investment in the research, development, manufacturing, and marketing of our products
through the use of patents, trademarks, licenses, trade secrets, and copyrights. We own or have rights to a number of
patents, licenses, trademarks, copyrights, trade secrets, know-how and other intellectual property related and
important to our business. As of January 2, 2026, we owned approximately 87 United States and foreign patents and
had 30 patent applications pending. We rely more on trade secrets than patents and believe that no particular patent
is so important that its loss or expiration would materially adversely affect our operations as a whole.
Our intellectual property generally relates to the design, production, and manufacture of the Collamer lens
material and related materials, ICLs and related lenses, and lens delivery systems for folding intraocular lenses
(injectors and cartridges, both stand-alone and preloaded) used with ICLs. We believe it would require extensive
time and effort for a competitor to duplicate our intellectual property and processes to develop a product with
comparable capabilities to our ICL family of products.
Worldwide, we sell all of our major products under trademarks we consider to be important to our business.
STAAR®, STAAR Surgical™, EVO ICL™, EVO+ ICL™, EVO Visian® ICL™, EVO Viva™, Evolution in Visual
Freedom®, Visian®, Collamer®, CentraFLOW®, and AquaPORT®, are trademarks or registered trademarks of
STAAR in the U.S., the European Union, or other countries. The scope and duration of trademark protection varies
widely throughout the world. In some countries, trademark protection continues only as long as the mark is used.
Other countries require registration of trademarks and the payment of registration fees. Trademark registrations are
generally for fixed but renewable terms. This Annual Report may refer to these and other trademarks and
tradenames. Solely for convenience, our trademarks and tradenames referred to in this Annual Report may appear
without the ® or ™symbols, but such references are not intended to indicate in any way that we will not assert, to
the fullest extent under applicable law, our rights to these trademarks and tradenames. This Annual Report may also
include trademarks owned by other parties, and all other such trademarks mentioned in this Annual Report are the
property of their respective owners.
We protect our proprietary technology, in part, through confidentiality and nondisclosure agreements with
employees, consultants, and other parties. Our confidentiality agreements with employees and consultants generally
contain standard provisions requiring those individuals to assign to STAAR, without additional consideration,
inventions conceived or reduced to practice by them while employed or retained by STAAR, subject to customary
exceptions. We cannot provide any assurance that employees and consultants will abide by the confidentiality or
other terms of their agreements. Despite measures taken to protect our intellectual property, unauthorized parties
may copy aspects of our products or obtain and use information that we regard as proprietary.
Seasonality
While certain individual markets may be impacted by seasonal trends on a quarterly basis, in the aggregate,
seasonality does not materially affect our sales.
Working Capital Requirements
There are no special inventory requirements or credit terms extended to customers that have a material adverse
effect on our working capital.

7
Distribution and Customers
We market our products to a variety of health-care providers, including ophthalmic surgeons, vision centers,
surgical centers, hospitals, government facilities, and distributors. Ophthalmologists are the primary users of our
products.
We sell our products directly through our own sales representatives in Japan, the U.S., Germany, Spain,
Singapore, Canada, and the U.K. We sell through a combination of our own representatives and independent
distributors in China, Korea, India, France, Benelux, and Italy. We sell through independent distributors in other
countries. Our products have been sold in more than 85 countries worldwide. We maintain a global marketing team,
as well as regional marketing personnel to support the promotion and sale of our products. The global marketing
department supports selling efforts by developing and providing promotional materials, speakers’ programs, digital
and social media sites, participation in trade shows and technical presentations. Where we distribute products
directly, we rely on local sales representatives to help generate sales by promoting and demonstrating our products
with physicians. Our clinical affairs personnel provide training and educational courses globally.
Two customers, our China distributors who sell into China and Hong Kong, accounted for approximately 32%
of our consolidated net sales during fiscal 2025. Net sales to our China distributors during each of the last three
fiscal years were as follows:
Net Sales to China Distributors
Fiscal Year
Net Sales
($, in thousands)
Net Sales as Percentage of
Consolidated Net Sales
...............................
2025
$
77,781
32.5%
...............................
2024
$
162,287
51.7%
...............................
2023
$
184,569
57.2%
Our agreements with our distributors in China provide for minimum inventory requirements based on forecasted
demand. These requirements are intended to establish minimum levels of inventory in-country to mitigate potential
delays associated with importation and logistics, as well as to establish a sufficient supply of lenses to support quick
and efficient delivery and fulfillment for surgical procedures. Our distributors often purchase lenses above the
minimums required by their agreements. During fiscal 2024, our distributors purchased lenses above such
minimums in anticipation of higher procedural volumes during what is typically a summer “high season” in China.
Due to dynamic macroeconomic conditions and other factors, the number of ICL procedures performed during the
high season and the second half of 2024 overall was lower than expected. Accordingly, our distributors in China
held, as of December 27, 2024, elevated levels of ICL product inventory. The level of inventory owned by our
distributors in China has decreased substantially since December 27, 2024, and has returned to contractual levels. As
anticipated, we reported lower China ICL sales in fiscal 2025 compared to fiscal 2024.
In April 2025, in response to the announcement of tariffs by the United States on Chinese goods, China
announced retaliatory tariffs on U.S.-origin goods. In order to mitigate potential financial exposure from such tariffs,
we negotiated and implemented consignment agreements with our two distributors in China, and we delivered
consigned inventory to China in advance of the implementation of tariffs and delivered additional consignment
inventory throughout fiscal 2025. While the tariff situation is evolving, we believe that these efforts to increase the
amount of ICLs in China reduce the Company’s tariff risk in China in the near-term. In addition, we are rapidly
ramping up our production capabilities in Switzerland to supplement our manufacturing capacity in the United
States to provide optionality under multiple tariff scenarios.
Given that we maintained consigned inventory in China in 2025, purchases by our distributors were satisfied in
part from our consigned inventory, rather than through bulk purchases. As our China distributor inventory levels
have normalized, we intend to reduce our consigned inventory levels in China going forward. We reduced our China
inventory levels in 2025, and we have taken steps to mitigate the risk of elevated inventory buildup by our
distributors, while at the same time maintaining sufficient ICL inventory in China to support quick and efficient
delivery and fulfillment for surgical procedures.
Given the size of the Company’s business in China relative to its net sales in the rest of the world,
macroeconomic conditions in China have a significant impact on the Company’s business, operations, and financial
results. The sluggish economy and weak consumer consumption in China negatively impacted the Company’s
financial results for fiscal 2025 and 2024, and as discussed further in “Management’s Discussion and Analysis of

8
Financial Condition and Results of Operations,” is expected to continue to impact demand for our ICLs in China in
fiscal 2026.
Backlog
We generally keep sufficient inventory on hand to ship product immediately or shortly after receipt of an order.
As we offer different types of ICLs to treat different refractive conditions, and our ICLs are manufactured to address
refractive prescriptions across a broad range of correction, we maintain a large number of Stock Keeping Units
(SKUs). The challenge of maintaining inventory in all models can result in a backlog in customer orders. During
fiscal 2024, we continued to increase our inventory levels to meet the significant level of anticipated demand for our
ICL lenses and to support quick and efficient delivery and fulfillment for surgical procedures. Increasing our
inventory levels also helps mitigate risks associated with potential disruptions to our manufacturing and production
process. Our principal ICL manufacturing facility is located in Monrovia, California, and in 2025, we expanded our
manufacturing capabilities for ICL products in our Nidau, Switzerland facility. To mitigate the risk of fire, flood,
earthquake, terrorism or other natural or man-made disasters, including manufacturing challenges such as equipment
or information technology (IT) failure, we have increased our inventory levels. We maintain this inventory at
different sites in the United States, Switzerland, and Japan. As of January 2, 2026, finished goods inventory, net,
which includes consignment inventory, was $39.7 million, or 219 Days’ Inventory on Hand (DOH).  DOH is
calculated using the first quarter 2026 projected cost of sales.
Government Contracts
No material portion of our business is subject to renegotiation of profits or termination of any particular contract
or subcontract at the election of the U.S. Government.
Competition
Competition in the ophthalmic surgical product market is intense and is primarily driven by technological
innovation and the regulatory approval required to commercialize products in the key markets around the world. The
development of new or improved products may make existing products less attractive, reduce them to commodity
status or even make them obsolete. To remain competitive, companies such as STAAR must devote continued
efforts and significant financial resources to enhance their existing products and to develop new products.
Our ICL technology competes with other elective surgical procedures such as laser vision correction (e.g.,
LASIK and SMILE) for those consumers who are looking for an alternative to eyeglasses or contact lenses to
correct their vision, and to a lesser extent phakic lens implants, including refractive lens exchange (RLE)
procedures, where a patient’s natural crystalline lens is removed and replaced with an artificial lens.
We believe our primary competition in selling the ICL to patients seeking surgery to correct refractive
conditions lies not in similar products to the ICL, but in laser surgical procedures. Alcon (formerly a part of
Novartis), Johnson & Johnson (formerly Advanced Medical Optics or AMO), Bausch Health Companies (formerly
Valeant, Bausch & Lomb or B+L), and Carl Zeiss Meditec AG, all market lasers for corneal refractive surgery and
promote their sales worldwide.
Phakic implants that compete with the ICL are also available in the marketplace. The two principal types of
phakic implantable lenses are (1) posterior chamber designs like the ICL, including lenses made by Biotech Vision
Care, Care Group, and Eyebright and (2) iris clip anterior chamber designs, including lenses made by Ophtec. While
most competing lenses are made from types of silicone or acrylic, we believe our ICLs offer compelling clinical
advantages due to our proprietary Collamer lens material, as well as their design and features. We also believe our
track record of safety and effectiveness, and high levels of patient satisfaction, are competitive advantages relative to
laser surgical procedures and other implantable lenses. Notably, our EVO ICL is the only foldable, minimally
invasive posterior chamber phakic intraocular lens approved for sale in the U.S. In addition, competitors from Asia
are beginning to appear in the market with their low-cost version of a posterior chamber implantable contact lens,
increasing the level of competition, and we are aware that other companies are developing competitive products that
have not yet been brought to market.
The Human Eye
The following discussion provides background information on the structure, function, and some of the disorders
of the human eye to enhance the reader’s understanding of our products described in this Annual Report. The human
eye is a specialized sensory organ capable of receiving visual images and transmitting them to the visual center in
the brain. The eye has an anterior segment and a posterior segment that are separated by the natural crystalline lens.

9
The anterior segment consists of the cornea, the iris and ciliary body and the trabecular meshwork. It is filled
with a water-based fluid called aqueous humor and is divided, by the iris, into an anterior chamber and a posterior
chamber. The cornea is a clear lens at the front of the eye through which light first passes and is focused toward the
back of the eye. The interior surface of the cornea is lined with a single layer of flat, tile-like endothelial cells,
whose function is to maintain the transparency of the cornea. The iris is a pigmented muscular curtain located
behind the cornea which opens and closes to regulate the amount of light entering the eye through the pupil, an
opening at the center of the iris. The crystalline lens, located behind the iris, completes the focusing of light and can
change shape to focus objects at different distances onto the retina, located in the back of the eye. The trabecular
meshwork, a drainage channel located between the iris and the surrounding white portion of the eye, maintains a
normal pressure in the anterior chamber of the eye by draining excess aqueous humor.
The posterior segment of the eye that is behind the natural lens is filled with a jelly-like material called the
vitreous humor. The retina is a layer of nerve tissue in the back of the eye consisting of millions of light receptors
called rods and cones, which receive the light image and transmit it to the brain via the optic nerve.
Common visual disorders, disease or trauma can affect the eye. One of the most prevalent ocular disorders is
cataracts. Cataract formation is generally an age-related disorder that involves the hardening and loss of
transparency of the natural crystalline lens, impairing visual acuity.
Refractive disorders, which generally are not age-related, include myopia, hyperopia, and astigmatism. A
normal, well-functioning eye receives images of objects at varying distances from the eye and focuses the images on
the retina. Refractive errors occur when the eye’s natural optical system does not properly focus an image on the
retina. Myopia, also known as nearsightedness, occurs when the eye’s lens focuses images in front of the retina.
Hyperopia, or farsightedness, occurs when the eye’s lens focuses images behind the plane of the retina. Individuals
with myopia or hyperopia may also have astigmatism. Astigmatism is due to an irregular curvature of the cornea or
defects in the natural lens that causes light to not focus at a single depth in the eye resulting in blurred vision.
Presbyopia is an age-related refractive disorder that limits a person’s ability to see in the near and middle-distance
range as the natural crystalline lens loses its elasticity, reducing the eye’s ability to accommodate or adjust its focus
for varying distances.
Regulatory Matters
Nearly all countries where we sell our products have regulations requiring premarket clearance or approval of
medical devices by governmental or regulatory authorities. Various federal, state, local and foreign laws also apply
to our operations, including, among other things, working conditions, laboratory, clinical, advertising and
promotions, and design and manufacturing practices, and the use and disposal of hazardous or potentially hazardous
substances.
The requirements for clearance or approval to market medical products vary widely by country. The
requirements range from minimal requirements to rigorous requirements comparable to those established by the U.S.
FDA. Obtaining clearance or approval to distribute medical products is complex, costly, and time-consuming in
virtually all the major markets where we sell medical devices. We cannot give any assurance that any new medical
devices we develop will be cleared or approved in any country where we propose to sell our medical devices or, if
approved, whether such approvals will be granted in a timely or cost-effective manner, be as broad in scope as we
seek, or be conditioned on post-market study requirements or restrictive labeling. We also cannot give any assurance
that if our medical devices are approved for sale in a country, subsequent action will not be taken by the responsible
regulatory authorities in the country with respect to our medical devices that might affect our ability to maintain the
required approvals in the country or to continue to sell our medical devices in the country. The regulatory
requirements in our most important current markets, China, Europe, Japan, Korea and the U.S., are discussed below.
Medical Device Regulations in the United States.
Under the United States Federal Food, Drug & Cosmetic Act, as amended (the Act), the FDA has the authority
to regulate, among other things, the design, development, manufacturing, preclinical and clinical testing, labeling,
product safety, marketing, sales, distribution, premarket clearance and approval, recordkeeping, reporting,
advertising, promotion, post-market surveillance, and import and export of medical devices.
Most of our products are classified as medical devices intended for human use within the meaning of the Act
and, therefore, are subject to FDA regulation.
Each medical device we seek to commercially distribute in the United States must first receive clearance to
market under a notification submitted pursuant to Section 510(k) of the Act, known as the 510(k) premarket

10
notification, or premarket approval (PMA) from the FDA, unless specifically exempted by the agency or subject to
another form of FDA premarket review. The FDA classifies all medical devices into one of three classes. The FDA
establishes procedures for compliance based upon the device’s classification as Class I (general controls, such as
establishment registration and device listing with FDA, labeling and record-keeping requirements), Class II
(performance standards in addition to general controls) or Class III (PMA required before commercial marketing).
Devices deemed to pose lower risk are categorized as either Class I (low risk) or II (moderate risk). Manufacturers
of Class II devices are generally required to submit to the FDA a 510(k) premarket notification requesting clearance
of the device for commercial distribution in the United States. Most low risk (Class I) devices and some Class II
devices are exempt from this requirement. The FDA deems Class III devices to pose the greatest risk and are the
most extensively regulated. These devices include life-supporting, life sustaining, or implantable devices, or devices
deemed not substantially equivalent to a previously 510(k) cleared device. The effect of assigning a device to Class
III is to require each manufacturer to submit to the FDA a PMA that includes information on the safety and
effectiveness of the device. The FDA reviews device applications and notifications through its Center for Devices
and Radiological Health (CDRH).
510(k) Clearance. Our lens injector systems are Class I devices subject to the 510(k) premarket review and
clearance process. A medical device that is substantially equivalent to either a previously-cleared medical device or
a device that was in commercial distribution before May 28, 1976 for which the FDA has not yet called for the
submission of a PMA, or is a device that has been reclassified from Class III to either Class II or I may be eligible
for the FDA’s 510(k) premarket notification process. FDA clearance under Section 510(k) of the Act does not imply
that the safety, reliability, and effectiveness of the medical device has been approved or validated by the FDA. The
review period and FDA determination as to substantial equivalence generally takes from three to twelve months
from the date the application is submitted and filed. However, the process may take significantly longer, and
clearance is never assured. Although many 510(k) premarket notifications are cleared without clinical data, in some
cases, the FDA requires significant clinical data to support substantial equivalence. In reviewing a premarket
notification, the FDA may request additional information including clinical data, which may significantly prolong
the review process.
After a device receives 510(k) clearance, any modification that could significantly affect its safety or
effectiveness, or that would constitute a major change in its intended use, will require a new 510(k) clearance or
could require premarket approval. The FDA requires each manufacturer to make its own initial determination as to
whether a change meets this threshold. However, the FDA can review any such decision and can disagree with a
manufacturer’s determination. If the FDA disagrees with a manufacturer’s determination, the FDA can require the
manufacturer to cease marketing or recall the modified device until 510(k) clearance or a PMA is obtained.
Premarket Approval. Our ICL products are Class III devices subject to the PMA approval process and not
510(k) clearance.  The more rigorous PMA process requires us to demonstrate that a new medical device is safe and
effective for its intended use. The FDA may require that a PMA be supported by, among other things, extensive
technical, pre-clinical, clinical testing, manufacturing, and labeling data to demonstrate to the FDA’s satisfaction,
the safety and effectiveness of the device.
After a PMA application is submitted and filed, the FDA begins an in-depth review of the submitted
information, which typically takes between six and twelve months, but may take significantly longer depending on
the questions received from the FDA regarding the application. During the review period, the FDA may request
additional information or clarification of information already provided. In addition to its own review, the FDA may
organize an independent advisory panel of experts to review the PMA whenever a device is the first of its kind or the
FDA otherwise determines panel review is warranted. The FDA holds panels on a regular basis, but the need to
schedule panel review usually adds some weeks or months to the review process. In addition, the FDA will conduct
a pre-approval inspection of the manufacturing facility to ensure compliance with Quality System Regulation (QSR)
which imposes elaborate design, development, testing, control, validation, documentation, complaint handling,
supplier control, and other quality assurance procedures in the design and manufacturing process. The FDA may
approve a PMA application with post-approval conditions intended to ensure the safety and effectiveness of the
device including, among other things, restrictions on labeling, promotion, sale and distribution and conduct of
additional post-approval clinical studies or collection of long-term follow-up from patients in the clinical study that
supported approval. Failure to comply with the conditions of approval can result in materially adverse enforcement
action, including the loss or withdrawal of the approval.
If a manufacturer plans to make significant modifications to the manufacturing process, labeling, or design of an
approved PMA device, the manufacturer must submit an application called a “PMA Supplement” regarding the
change. The FDA generally reviews PMA Supplements on a 180-day agency timetable, which may be extended if

11
significant questions arise in review of the supplement. A manufacturer may implement limited changes prior to the
FDA’s review of a PMA Supplement. The FDA designates some PMA Supplements as “panel-track” supplements,
which means that the agency believes review by an advisory panel may be warranted. Designation as a panel-track
supplement does not necessarily mean that panel review will occur.
Clinical or Market Trials. A clinical trial is typically required to support a PMA application and is sometimes
required for a 510(k) premarket notification. Clinical trials conducted to support premarket clearance or approval
generally require submission of an application for an Investigational Device Exemption (IDE) to the FDA.
Appropriate data must support the IDE application, such as animal and laboratory testing results, showing that it is
safe to test the device in humans and that the investigational protocol is scientifically sound. The IDE application
must be approved by the FDA for a specified number of patients, unless the product is deemed eligible for more
abbreviated IDE requirements. Clinical trials for a significant risk device may begin once the FDA approves the IDE
application. All FDA-regulated clinical studies, whether significant or non-significant risk, must be approved and
overseen by the appropriate institutional review boards (IRBs) for each clinical trial, and informed consent of the
patients participating in the clinical trial must be obtained. After a trial begins, the FDA may place it on hold or
terminate it, if, among other reasons, it concludes that the clinical subjects are exposed to an unacceptable health
risk. Any trials we conduct in the United States must be conducted in accordance with FDA regulations as well as
other federal regulations and state laws concerning human subject protection and privacy. Moreover, the results of a
clinical trial may not be sufficient to obtain clearance or approval of the product.
Oversight of compliance with quality, medical device reporting, clinical study, and other regulations. Both
before and after we receive premarket clearance or approval and release a product commercially, we have ongoing
responsibilities under FDA regulations. The FDA reviews design and manufacturing practices, labeling and record
keeping, product complaints and manufacturer’s required reports of adverse experiences, product corrections and
removals, and other information to identify potential problems with marketed medical devices. We are also subject
to periodic inspection by the FDA for compliance with the FDA’s QSR and other requirements, such as
requirements for advertising and promotion. The Good Manufacturing Practice (GMP) regulations for medical
devices embodied in the QSR govern the methods used in, and the facilities and controls used for, the design,
manufacture, packaging, labeling, and servicing of all finished medical devices intended for human use. The FDA
has issued a final rule to implement the Quality Management System Regulation (QMSR), which is intended to
harmonize U.S. quality system requirements more closely with ISO 13485, and the transition to QMSR could
require updates to our quality system documentation and processes.
The FDA’s Bioresearch Monitoring Program (BIMO), reviews our activities as a sponsor of clinical research.
BIMO conducts facilities inspections as part of a program designed to ensure that data and information contained in
requests for IDEs, PMA applications and 510(k) submissions are scientifically valid, reliable, and accurate. Another
objective of the program is to ensure that human subjects are protected from undue hazard or risk during scientific
investigations.
If the FDA were to conclude that we are not in compliance with applicable laws or regulations, or that any of
our medical devices are ineffective or pose an unreasonable health risk, the FDA could require us to notify health
professionals and others that the devices present unreasonable risk or substantial harm to public health, order a
recall, repair, replacement, or refund of the devices, detain, or seize adulterated or misbranded medical devices, or
ban the medical devices. The FDA may also issue warning letters or untitled letters, refuse our request for 510(k)
clearance or PMA approval, revoke existing 510(k) clearances or PMA approvals previously granted, impose
operating restrictions, enjoin, and restrain certain violations of applicable law pertaining to medical devices and
assess civil or criminal penalties against our officers, employees, or us. The FDA may also recommend prosecution
to the Department of Justice. In the case of devices subject to pending premarket clearance or approval applications,
FDA has broad authority to halt the review of applications and require significant additional data analyses, audits,
and other corrective actions where clinical data contained in an application are deemed to be actually or potentially
unreliable, inaccurate, or not in compliance with clinical study or good clinical practice requirements.
Healthcare Fraud and Abuse Laws and Regulations in the United States.
Even though we do not control referrals of healthcare services or bill directly to Medicare, Medicaid or other
third-party payers, certain federal, state and international healthcare laws and regulations pertaining to fraud and
abuse and patients’ rights may be applicable to our business. We may be subject to healthcare fraud and abuse and

12
patient privacy regulation by the federal government, the states and the international jurisdictions in which we
conduct our business. The regulations that may affect our ability to operate include, without limitation:
•
the federal Anti-Kickback Statute, which prohibits, among other things, any person from knowingly and
willfully offering, soliciting, receiving, or providing remuneration, directly or indirectly, to induce either
the referral of an individual, for an item or service or the purchasing or ordering of a good or service, for
which payment may be made under federal healthcare programs such as the Medicare and Medicaid
programs;
•
the federal False Claims Act, which prohibits, among other things, individuals, or entities from knowingly
presenting, or causing to be presented, false claims, or knowingly using false statements, to obtain payment
from the federal government, and which may apply to entities that provide coding and billing advice to
customers;
•
federal criminal laws that prohibit executing a scheme to defraud any healthcare benefit program or making
false statements relating to healthcare matters;
•
the federal physician sunshine requirements under the Patient Protection and Affordable Care Act of 2010,
which requires manufacturers of drugs, devices, biologics, and medical supplies to report annually to the
Centers for Medicare & Medicaid Services information related to payments and other transfers of value
relating to certain drugs, devices, biologics, and medical supplies to physicians, other healthcare providers,
and teaching hospitals, and ownership and investment interests held by physicians and other healthcare
providers and their immediate family members;
•
the federal Health Insurance Portability and Accountability Act of 1996, as amended by the Health
Information Technology for Economic and Clinical Health Act of 2009, which governs the conduct of
certain electronic healthcare transactions and protects the security and privacy of protected health
information; and
•
state and international law equivalents of each of the above federal laws, such as anti-kickback and false
claims laws which may apply to items or services reimbursed by any third-party payer, including
commercial insurers; state laws that require device companies to comply with the industry’s voluntary
compliance guidelines and the applicable compliance guidance promulgated by the federal government, or
otherwise restrict payments that may be made to healthcare providers and other potential referral sources;
state and international laws that require device manufacturers to report information related to payments and
other transfers of value to physicians and other healthcare providers or marketing expenditures; and state
and international laws governing the privacy and security of health information in certain circumstances,
which may differ from each other and may not have the same effect, thus complicating compliance efforts.
Because of the breadth of these laws and the narrowness of the statutory exceptions and safe harbors available,
it is possible that some of our business activities could be subject to challenge under one or more of such laws. In
addition, recent health care reform legislation has strengthened these laws. For example, the Health Care Reform
Law, among other things, amends the intent requirement of the Federal Anti-Kickback Statute and criminal
healthcare fraud statutes. A person or entity no longer needs to have actual knowledge of the statute or specific
intent to violate it. In addition, the Patient Protection and Affordable Care Act provides that the government may
assert that a claim including items or services resulting from a violation of the Federal Anti-Kickback Statute
constitutes a false or fraudulent claim for purposes of the False Claims Act.
Medical Device Regulations Outside the United States.
CE Marking. In the European Economic Area (EEA), which is comprised of the 27 Member States of the
European Union plus Norway, Iceland, and Liechtenstein, legacy medical devices must comply with the essential
requirements of the EU Medical Devices Directive (Council Directive 93/42/EEC). Compliance with the essential
requirements of the EU Medical Device Directive is a prerequisite to be able to affix a Conformité Européenne
Mark (CE Mark), without which medical devices cannot be marketed or sold in the EEA. To demonstrate
compliance with the essential requirements, medical device manufacturers must undergo a conformity assessment
procedure, which varies according to the type of medical device and its classification.
The method of assessing conformity varies depending on the class of the product, but normally involves a
combination of self-assessment by the manufacturer and a third-party assessment by a “Notified Body.” Notified
Bodies are a group of private conformity assessment organizations that are accredited to review medical devices and

13
to audit quality systems and assess manufacturers’ post-market surveillance and vigilance processes. The
independent Notified Bodies perform, on a privatized basis, functions that assess adherence to regulations, which is
similar to the FDA in the U.S. and the Pharmaceuticals and Medical Devices Agency (PMDA) in Japan. Our
facilities in the United States and Switzerland are subject to regular inspection by a designated Notified Body. Other
countries, such as Switzerland and the United Kingdom, have voluntarily adopted laws and regulations that largely
mirror those of the European Union with respect to medical devices, and a number of countries outside of Europe
permit importation of devices bearing the CE Mark.
The European Union finalized a new Medical Device Regulation (MDR) in 2017, which replaced the existing
Directives and established a transition period for devices previously certified under the Directives. The MDR will
change several aspects of the existing regulatory framework, such as updating clinical data requirements and
introducing new ones, such as Unique Device Identification (UDI). We and the Notified Bodies who will oversee
compliance to the new MDR face uncertainties and increased costs as the MDR is rolled out and enforced by the
European Commission and EEA Competent Authorities, creating risks in several areas, including the CE Marking
process and data transparency, in the upcoming years. In March 2023, the European Union extended the EU MDR
transition periods for devices transitioning to the EU MDR from May 2024 to May 2026 for class III custom-made
implantable devices, and December 31, 2027 for class III and implantable class IIb devices. Class IIb (non-
implantable), Class IIa and Class I devices requiring Notified Body involvement may continue to be placed on the
market until December 31, 2028, provided specified conditions are met. The exit of the UK from the European
Union (BREXIT) in 2020 resulted in the requirement to re-certify our preloaded acrylic cataract IOL under a non-
UK Notified Body, and to separately register our CE Marked products for sale in the UK. In 2023, the UK extended
to June 2028 the allowance of medical devices with a valid declaration and CE marking to be placed on the Great
Britain market (subject to the terms of the UK transitional regime and, in general, until the earlier of the applicable
deadline or the expiration of the CE certificate). The failure of Switzerland and the EU to enter into a Mutual
Recognition Agreement resulted in a change of our European Union Authorized Representative, the appointment of
a Swiss Authorized Representative, discontinuance of the pre-loaded acrylic cataract IOL for the Swiss market, and
registration of our remaining products under Swiss law. We have since stopped manufacturing our preloaded acrylic
cataract IOL and have phased out sales of our cataract IOLs as we focus on growing our ICL business.
We have affixed the CE Mark to all our principal products sold in CE Mark jurisdictions including ICLs and
delivery systems. In July 2022, our Notified Body in the European Union, DEKRA, certified the CE Marking for
our currently certified and commercially available ICLs, delivery systems, and calculation software under the new
MDR. During the fourth quarter of 2021 and the first quarter of 2022, DEKRA performed audits of our US and
Swiss facilities certifying them to the MDR requirements, EN ISO 13485:2016 as well as to the “Medical Device
Single Audit Program” (MDSAP). MDSAP provides for a single audit recognized by Australia, Brazil, Canada,
Japan and the United States demonstrating routine compliance with quality management system requirements.
Medical Device Regulation in Japan. The Japanese Ministry of Health, Labor, and Welfare (MHLW) regulates
the sale of medical devices under Japan’s Pharmaceuticals and Medical Devices Act (PMD Act). The
Pharmaceuticals and Medical Devices Agency (PMDA), a quasi-governmental organization, performs many of the
medical device review functions for MHLW. Medical devices generally must undergo thorough safety examinations
and demonstrate medical effectiveness before the MHLW grants shonin (premarket device approval) or ninsho
(premarket certification). Manufacturers and resellers (referred to as Marketing Authorization Holders or MAHs)
must also satisfy certain requirements before the MHLW grants a business license, or kyoka. Requirements for
manufacturers and MAHs include compliance with Japanese regulations covering GQP (good quality practice) and
GVP (good vigilance practice), which largely include conformity to the ISO 13485 standard and are similar to
quality management system and post-market surveillance requirements in the United States, as well as the
assignment of internal supervisors over marketing, quality assurance, and safety control.
Approval for a new medical device that lacks a substantial equivalent in the Japanese market will generally
require the submission of clinical trial data. Only a licensed MAH can apply for premarket device approval in Japan,
and in most cases, the clinical trial data must include data gathered from Japanese subjects. For example, STAAR
Japan conducted a separate clinical trial in Japan for the shonin application for the ICL. Also, approval for a new
medical device will require the manufacturer to undertake to reexamine the safety and effectiveness of the device
with a review of post-market data gathered within a certain period - normally four years - after approval. The
specific post-market reexamination requirement for a medical device is announced at the time of approval.
STAAR Japan currently holds shonin approval for the ICL products, preloaded injectors, and their associated
lenses, and kyoka licensing as a manufacturer and MAH of medical devices. The sponsor of a clinical trial submitted
to the PMDA must strictly follow Good Clinical Practice (GCP) standards and must follow the trial with standard

14
Good Post-Market Study Practice (GPSP) reporting and a follow-up program. MHLW and PMDA also assess the
quality management systems of manufacturers and the conformity of products to the requirements of the PMD Act.
STAAR is subject to inspection for compliance by these agencies. A company’s failure to comply with the PMD Act
can result in severe penalties, including revocation or suspension of a company’s business license and possible
criminal sanctions. If the PMDA were to conclude that we are not in compliance with applicable laws or regulations,
or that any of our medical devices are ineffective or pose an unreasonable health risk, they could take a variety of
regulatory or legal actions, similar to the U.S. FDA, which could have a material and negative impact on the
Company.
Medical Device Regulation in China and Korea. Sales of our products in China and Korea, as in other
countries, are also subject to regulatory requirements.
In China, medical devices such as our ICLs are mainly regulated by Regulations for the Supervision and
Administration of Medical Device (Decree No. 739) promulgated by the State Council. National Medical Products
Administration (NMPA) is the governmental authority principally responsible for the supervision and administration
of medical devices in China.
Each medical device intended for commercial distribution in China is subject to a mandatory filing or
registration regime regulated by the NMPA. The classification of such devices mainly determines the filing
pathways. China has a three-class classification system, from Class I (lowest risk) to Class III (highest risk). Most of
STAAR’s medical devices are Class II and Class III devices and are subject to a restricted registration pathway.
Applicants are required to submit a Product Technical Requirements (PTR) document, which shall mainly include
the performance indicators and testing methods of the medical device. Also, applicants must have samples of the
device tested in a government-recognized lab or submit in-house or qualified third-party testing results. The PTR,
test reports, quality system documents, labeling information, together with other registration documents, are
submitted to the Center for Medical Device Evaluation (CMDE) division of the NMPA for technical evaluation.
If approved, NMPA issues the medical device a registration license valid for five years. The manufacturer
submits a renewal application before the license expiration date to renew a medical device’s registration.
After approval, in case of substantial changes to the design, raw materials, manufacturing process, and
indications, among other things, that may affect the medical device's safety and effectiveness, the manufacturer
applies to NMPA for approval of such registration changes. In case of minor changes that do not affect the medical
device's safety and effectiveness, the manufacturer submits a change notification to NMPA.
While STAAR Surgical AG and STAAR Surgical Company hold the licenses, STAAR China serves as a local
agent. The local agent is authorized to submit the registration application materials to NMPA, provides maintenance
support and technical service, and oversees the registration and clinical trial process. Under the Measures for
Adverse Event Monitoring and Reevaluation of Medical Devices (Decree No. 1), Medical Device Adverse Event
Reporting and Reevaluation, the license holder bears the primary responsibility for monitoring medical device
adverse events (AEs) and establishing an AE monitoring system. The local agent helps manage AEs in case of
device malfunction.
The license holder and local agent are responsible for carrying out self-inspection of the quality management
system periodically. They are also responsible for identifying, monitoring, and trending adverse events related to the
medical device.
In Korea, a registration of medical devices such as our ICLs is overseen by the Ministry of Food and Drug
Safety (MFDS) pursuant to the Medical Device Act. The Medical Device Safety Bureau of the MFDS holds primary
responsibility for medical device regulations, while departments within the National Institute of Food and Drug
Safety Evaluation (NIFDS) oversee the evaluation and research of medical devices. Medical devices require
registration and/or approval prior to commercialization. In Korea, medical device classification closely follows the
Global Harmonization Task Force (GHTF) Classification guidelines, with Class I, II, III and IV designations being
ranked from low- to high-risk categorization. The registration review route depends on the risk classification of the
device. Typically, the MFDS requires similar documentation as required to obtain a CE Mark. Our distributor in
Korea is contractually required to obtain, with our assistance, the necessary health registrations, governmental
approvals, or clearances to import, market and sell our products. In Korea, we provide our distributor with
information and data to obtain appropriate registrations and approvals, and the distributor obtains such registrations.
In addition to the device registration, MFDS requires all devices Class II and above to comply with Korean Good
Manufacturing Practice (KGMP) quality system standards in order to be marketed in Korea. KGMP standards are
based on, but not identical to, ISO 13485 quality system standards. Therefore, ISO 13485 certificates issued by a

15
notified body in the EU will not be sufficient. To obtain KGMP certification, documents that pertain to all areas of
compliance, including design, risk assessment, technical requirements and any other quality system requirements,
need to be submitted to an MFDS-authorized conformity assessment body. Our distributor in Korea submits the
application on behalf of STAAR. After the application is submitted, the manufacturing site undergoes either a paper
audit or an onsite inspection/audit by an authorized third party and MFDS. Medical device registration licenses do
not expire, but the KGMP certificate must be renewed every three years.
If the NMPA or MFDS were to conclude that we are not in compliance with applicable laws or regulations, or
that any of our medical devices are ineffective or pose an unreasonable health risk, they could take a variety of
regulatory or legal actions in their respective countries, similar to the U.S. FDA, which could have a material and
negative impact on the Company.
Third-Party Coverage and Reimbursement.
Health-care providers generally rely on third-party payers, including governmental payers such as Medicare and
Medicaid, private insurance plans and workers’ compensation plans, to cover and reimburse the cost of medical
devices and related services. These third-party payers may deny coverage or reimbursement for a medical device if
they determine that the product or procedure using the product was not medically appropriate or necessary, and they
are increasingly challenging the price of medical devices and services.
Our ICL products generally are not covered by third-party payers, and patients incur out-of-pocket costs for
these products and related procedures using our products. Our cataract IOL products used in cataract procedures
generally are covered by third-party payers in whole or in part depending upon a variety of factors, including the
specific product used and geographic location where the procedure using the covered product is performed. The
market for some of our IOL products therefore is influenced by third-party payers’ policies.
Other Regulations.
Our business and our ICL products are subject to extensive regulation by numerous other governmental
agencies, both within the U.S. and internationally. In the U.S., apart from the agencies discussed above, our
facilities, operations, employees, and products are regulated by the Environmental Protection Agency, the
Occupational Safety and Health Administration (OSHA), the Department of Labor, the Department of Commerce,
the Department of the Treasury, the Department of Justice and others. State agencies also regulate our facilities,
operations, employees, and products within their respective states. Government agencies internationally also
regulate public health, product registration, manufacturing, environmental conditions, labor, exports, imports,
bribery and corruption and other aspects of our global operations. Any failure to comply with applicable legal and
regulatory obligations could result in fines and penalties, restrictions on certain business activities, and other
remedial measures, which if significant, could disrupt our operations, distract management, and harm our business.
The advertising and promotion of our ICL products is also subject to extensive regulation, which can vary
significantly from country to country. In the U.S., the FDA and the Federal Trade Commission regulate the
advertising and promotion of our products and require that the claims we make are consistent with our regulatory
clearances and approvals, that there is adequate and reasonable data to substantiate the claims and that our
promotional labeling and advertising is neither false nor misleading. Many international regulators impose similar
requirements, but some jurisdictions impose significant restrictions on the ability of medical device companies to
engage in advertising and promotion activities. Because a key element of our growth strategy is to drive awareness
of the ICL procedure and the clinical benefits of our ICLs, limitations on our ability to advertise and promote our
ICL products could harm our business.
In addition, we are subject to U.S. federal and state and foreign data privacy, security and data breach
notification laws governing the collection, use, disclosure and protection of health-related and other personal
information. In the U.S., numerous federal and state laws and regulations, including data breach notification laws,
health information privacy and security laws and consumer protection laws and regulations govern the collection,
use, disclosure, and protection of health-related and other personal information. In addition, certain foreign laws
govern the privacy and security of personal data, including health-related data. Privacy and security laws,
regulations, and other obligations are constantly evolving, may conflict with each other to complicate compliance
efforts, and can result in investigations, proceedings, or actions that lead to significant civil and/or criminal penalties
and restrictions on data processing.

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Research and Development
We focus on furthering technological advancements in the ophthalmic products industry through the
development of innovative premium ophthalmic products (lenses and accessory delivery systems), materials and
designs. We maintain active internal research and development programs. To achieve our business objectives, we
will continue our investment in research and development.
During 2026, we intend to continue our focus on research and development in the following areas:
•
Development of new presbyopia-correcting phakic intraocular lenses that simultaneously correct sphere
and cylinder (i.e., astigmatism);
•
Development of preloaded injector systems for ophthalmic medical devices; and
•
Development of a new generation of ophthalmic medical devices and materials.
Environmental Matters
We are subject to federal, state, local and foreign environmental laws, and regulations. We believe that our
operations comply in all material respects with applicable environmental laws and regulations in each country where
we do business. We do not expect compliance with these laws to affect materially our capital expenditures, earnings,
or competitive position. We have no plans to invest in material capital expenditures for environmental control
facilities for the remainder of our current fiscal year. We are not aware of any pending actions, litigation or
significant financial obligations arising from current or past environmental practices that are likely to have a
material adverse impact on our financial position. However, environmental problems relating to our properties could
develop in the future, and such problems could require significant expenditures. In addition, we cannot predict
changes in environmental legislation or regulations that may be adopted or enacted in the future and that may
adversely affect us.
We seek to achieve our corporate goals in an environmentally sustainable manner. Our most recent
Sustainability Report, which includes information about our approach to environmental, social and governance (or
“ESG”) at STAAR, is available in the Investors section of our website, www.staar.com, under the Sustainability tab.
We established a cross-functional climate risk committee to identify the risks presented by climate change and
opportunities to reduce our environmental impact. STAAR has undertaken projects designed to reduce energy and
waste, such as our investment in solar photovoltaic panels at several locations in California, including our principal
manufacturing facility in Monrovia, CA.
Human Capital
Our goal is to develop, manufacture and sell ophthalmic products 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. To achieve our goal, we continually seek to attract, develop and
retain talented people. We strive to make STAAR a diverse, inclusive, safe workplace, with opportunities for
employees to grow and develop their careers. We offer competitive compensation and benefits.
As of January 2, 2026, we had approximately 957 employees, of which 406 were employed outside the U.S. Of
the 957 employees, 921 were regular full-time, and 36 were temporary. In fiscal year 2025, we took a number of
steps to change our leadership team, realign our leadership structure to better address market needs, reduce costs and
discretionary spending, and better position the Company to return to sustainable growth. As a result, our global
overall turnover rate in fiscal year 2025 was approximately 32.2% (excluding temporary employees), which is
higher than the overall turnover rate of approximately 19.7% in the medical device industry. Management
periodically provides human capital management updates and data to our Board of Directors.
The health and safety of our employees is a top priority. We created and we follow various safety policies and
procedures, and we offer health insurance and wellness programs. We invest in our employees by offering numerous
training opportunities, such as to teach new skills, provide career development opportunities and communicate
expectations regarding business conduct and ethics. In addition to salaries, we provide additional compensation and
benefits programs (which vary by country) such as cash bonuses, stock awards, a 401(k) plan, health insurance
benefits, health savings and flexible spending accounts, paid time off, family leave, and employee assistance
programs, among others.

17
Additional Information
We make available free of charge through our website, www.staar.com, our Annual Report on Form 10-K,
Quarterly Reports on Form 10-Q, Current Reports on Form 8-K and amendments to any reports filed or furnished
pursuant to Section 13(a) of the Securities Exchange Act of 1934, as soon as reasonably practicable, after those
reports are filed with or furnished to the Securities and Exchange Commission (SEC).
The SEC maintains an Internet site that contains reports, proxy and information statements, and other
information regarding STAAR and other issuers that file electronically with the SEC at http://www.sec.gov.
Websites referenced herein, and the information contained on or connected to such websites, are not incorporated
into this Annual Report on Form 10-K.
Glossary
The following glossary is intended to help the reader understand some of the terms used in this Annual Report.
acrylic – a broadly used family of plastics. Acrylic materials used in IOLs have been both water repelling
(hydrophobic) and water-absorbing (hydrophilic).
aspheric – aspheric lenses are lenses that are designed in a shape that creates a more clearly focused image than
traditional spheric lenses. By reducing spherical aberrations, IOLs that feature aspheric optics generally deliver
better night vision and contrast sensitivity than spheric IOLs.
collagen copolymer - compounds formed by joining molecules of collagen derived from biological sources with
synthetic monomer molecules. STAAR’s proprietary Collamer material is a collagen copolymer engineered
specifically for use in implantable lenses.
contrast sensitivity - the ability to visually distinguish an object from its background.
crystalline lens – the natural lens that is present in the eye at birth, which is a clear structure, located behind the
iris that changes shape to focus light onto the retina.
excimer laser – a specialized ultraviolet laser used in ophthalmology to cut or shape eye tissue. The excimer
laser is used during LASIK and PRK surgery.
foldable IOL – an intraocular lens made of flexible material, which can be inserted with an injector system
through a small incision in minimally invasive eye surgery.
hyperopia – the refractive disorder commonly known as farsightedness, which occurs when the eye’s lens
focuses images behind the plane of the retina rather than on the retinal surface. An adult with moderate to high
hyperopia cannot see close objects without eyeglasses or contact lenses. Because presbyopia often results in the need
for reading glasses, it is sometimes confused with farsightedness.
injector or injector system – a device in the form of a syringe that is used to deliver a foldable IOL into the eye
through a slender nozzle in minimally invasive eye surgery.
intraocular – within the eye.
iridotomy – a small hole created in the iris, usually made with a YAG laser. Prior to implantation of some ICL
models a YAG peripheral iridotomy is made in an unobtrusive area at the periphery of the iris to ensure continued
fluid flow in the eye after implantation. The ICL with CentraFLOW technology, marketed with the brand names
EVO and EVO+, have a central port for fluid flow, which eliminates the need for an iridotomy or iridectomy.
LASIK – an acronym for laser-assisted in-situ keratomileusis, a surgical operation that reshapes the cornea to
correct nearsightedness, farsightedness, or astigmatism. LASIK involves first the cutting of a hinged flap to separate
the surface layer of the cornea, using a microkeratome (a special blade) or a laser. An excimer laser is then used to
ablate tissue and reshape the inner cornea, after which the flap is returned to position.
myopia – the refractive disorder also known as nearsightedness, which occurs when the eye’s lens focuses
images in front of the retina rather than on the retinal surface. A person with myopia cannot clearly see distant
objects without eyeglasses or contact lenses.
ophthalmic – of or related to the eye.

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ophthalmologist – a surgeon who specializes in the diseases and disorders of the eye and the related visual
pathway.
optic – the central part of an IOL or ICL, the part that functions as a lens and focuses images on the retina.
preloaded injector - an IOL packaged and shipped in a pre-sterilized, disposable injector. This differs from the
conventional method of packaging IOLs, which requires the surgeon or an assistant to manually load each lens into
an injector before surgery.
PRK – an acronym for photorefractive keratectomy, the first type of laser surgical operation to correct
nearsightedness, farsightedness, or astigmatism.
presbyopia – an age-related condition in which the crystalline lens loses its ability to focus on both near and far
objects. People who have had normal vision will typically begin to need eyeglasses for reading or other close tasks
at some point after age 40 due to presbyopia.
QSR - the U.S. FDA’s Quality System Regulation, or current Good Manufacturing Practice (cGMP) regulation,
includes requirements related to the methods used in, and the facilities and controls used for, designing,
manufacturing, packaging, labeling, storing, installing, and servicing of medical devices intended for human use.
The regulation sets forth the framework for medical device manufacturers to follow in achieving quality
requirements, including requirements related to complaint handling and control of purchased or supplied services,
components, and materials bearing on the quality of medical devices.
refractive market – as used in this report “refractive market” means the overall market volume for refractive
surgical procedures of all kinds, including LASIK, PRK, SMILE, RLE, the ICL product family and other phakic
IOLs. As used in this Annual Report, the term does not include sales of non-surgical products like eyeglasses and
contact lenses.
RLE – refractive lens exchange, a refractive surgical procedure in which the natural crystalline lens is removed
and replaced with an IOL (essentially the same as cataract surgery but performed primarily to address refractive
issues not to remove a cataract).
silicone – a type of plastic often used in implantable devices that is inert, generally flexible and water-repelling.
SMILE – an acronym for small incision lenticule extraction, a surgical operation that reshapes the cornea for
refractive vision correction. SMILE involves using a laser to create a small lenticule of tissue within the cornea,
which is then removed through a tiny incision. In contrast to LASIK, the SMILE procedure does not require creating
a corneal flap.
spheric lenses – a spheric lens has surfaces that are shaped like sections of a sphere.
toric – refers to the shape of a lens designed to correct astigmatism, which has greater refractive power in some
sections of the lens than others.
YAG – an acronym for yttrium-aluminum-garnet, a mineral crystal. Lasers using neodymium-doped yttrium
aluminum garnet crystals (Nd:YAG) generate a high-energy beam that can be used in a number of ophthalmic
procedures, including creating iridotomies before implantation of some models of the ICL.
ITEM 1A.
Risk Factors
Investment in our securities involves a high degree of risk. Investors should carefully consider the following risk
factors, in addition to other information contained in this Annual Report and other filings that we make from time to
time with the SEC, before making a decision to invest in our common stock. Any of the following risks, as well as
other risks that we cannot foresee at this time or that we currently view to be immaterial, could materially and
adversely affect our business, financial condition, results of operations or cash flows. The trading price of our
common stock could decline due to any of these risks, and investors may lose all or part of their investment. This
Annual Report contains forward-looking statements that involve risks and uncertainties. Actual results could differ
materially from those anticipated or implied in these forward-looking statements because of factors beyond our
control, including the risks faced by us described below. Moreover, except where the risk factors below specifically
describe factors, events, or contingencies as having occurred, these risk factors are not representations of whether
the factors, events, or contingencies mentioned have or have not occurred. Instead, they reflect our beliefs and
opinions as to the factors, events, or contingencies that could adversely affect us in the future.

19
Risks Related to Our Business
We reported a decrease in revenue and a net loss in fiscal 2025 and 2024, and we may not be able to return to
our growth and profitability trajectory.
For the fiscal year ended January 2, 2026, we reported $239.4 million of net sales, a decrease of 23.7%
compared to $313.9 million in fiscal 2024, and we incurred a net loss of $80.4 million compared to a net loss of
$20.2 million in fiscal 2024. For the fiscal year ended December 27, 2024, we reported $313.9 million of net sales, a
decrease of 2.6% compared to $322.4 million in fiscal 2023, and we incurred a net loss of $20.2 million compared to
net income of $21.3 million in fiscal 2023. Prior to fiscal 2024, we had reported over ten years of annual net sales
growth, and we had delivered net income profitability since 2018. Our results in fiscal 2024 were negatively
impacted by a significant decline in ICL sales in China in the fourth quarter ended December 27, 2024. We believe
the sluggish economy and weak consumer consumption that contributed to fluctuating demand for ICL procedures
in China in fiscal 2024 and 2025 will continue in fiscal 2026, and we cannot predict when the macroeconomic
conditions will improve in China or whether the demand for ICL procedures in China will return to historical levels
in the foreseeable future. In the first half of fiscal 2025, we took a number of steps to change our leadership team,
realign our leadership structure to better address market needs, reduce costs and discretionary spending, and better
position the Company to return to sustainable growth. As we seek to align our cost structure with our sales forecasts,
additional changes and further cuts may be required. While we intend to return to sales growth and profitability in
the future, there can be no guarantee that we will achieve our growth and profitability plans. Further, our growth and
profitability are challenged by the competitive nature of our industry and the other risks to our business detailed
herein.
Our reliance on independent distributors in international markets exposes us to commercial and other risks.
Outside the U.S., except for our direct commercial operations in Japan, Germany, Spain, Canada, the U.K. and
Singapore, we sell our products through independent distributors who generally control the importation and
marketing of our products within their territories. We generally grant exclusive rights to these distributors and rely
on them to understand local market conditions, to diligently sell our products, and to comply with local laws and
regulations. Our agreements with distributors and local laws can make it difficult for us to quickly change from a
distributor who we feel is underperforming. When we do terminate an independent distributor, which occurs from
time to time, we may lose customers who have been dealing with that distributor and may be required to compensate
the distributor for termination. Because these distributors are independent, it may be difficult for us to detect failures
in our distributors’ performance or compliance. Actions by independent distributors could result in declining sales in
that territory, harm to the reputation of our company or our products, or legal liability. For example, if our China
distributors, which accounted for approximately 32% of our fiscal 2025 consolidated net sales, ceased to serve as
our distributors, or significantly underperformed our expectations, we may experience a substantial reduction in
sales.
In addition, our distributors buy products from us in bulk shipments in advance of anticipated demand, which
they use to satisfy orders from hospital customers based on scheduled surgeries. The timing of these bulk purchases
can create volatility in our revenue and profitability. Further, if orders from hospital customers fall short of
anticipated demand, our distributors may have elevated inventories, which could cause them to reduce their future
purchases from us until surgical volumes improve. If orders from hospital customers exceed anticipated demand, our
distributors may not have sufficient inventory and may be unable to satisfy orders from hospital customers for
surgical procedures, which could lead to lost sales opportunities.
A slowdown or disruption to the Chinese economy or worsening trade relations between the U.S. and China
could materially impact our business and results of operations.
China accounted for approximately 32% of our fiscal 2025 consolidated net sales. After a robust start to fiscal
2024, China experienced slowing growth in 2024, which continued into 2025. The sluggish economy and weak
consumer consumption in China negatively impacted the Company’s financial results for fiscal 2024 and 2025. A
significant or prolonged slowdown in the Chinese economy could materially impact our business and results of
operations in the future. In addition, if social or political unrest were to disrupt business in China, or if other events
in China significantly reduced or disrupted business activities in China, that may materially and adversely harm our
business.
Further, changes in trade restrictions or new or increased tariffs or quotas, embargoes, sanctions,
countersanctions, customs restrictions, or other interventions or geopolitical conflicts resulting from deteriorating
relations between China and the U.S. would adversely impact our sales and operations in the region. As an example,

20
on February 1, 2025, the U.S. government announced a 10% tariff on product imports from certain countries,
including China. In response, China announced that they would impose counter tariffs on select goods imported
from the U.S., to which the U.S. responded with heightened reciprocal tariffs. The U.S. and China have reached a
one-year agreement with an expiration of November 10, 2026, which includes the continued suspension of the
heightened reciprocal tariffs on China and delayed enforcement of new U.S. export rules targeting affiliates of
blacklisted firms. If maintained, the newly announced tariffs and the potential escalation of trade disputes could pose
a significant risk to our business and would affect our sales in China. See the risk factor below captioned “Because
our business is global, our sales and profits may fluctuate or decline in response to changes in foreign currency
exchange rates and/or other international risks, including tariffs” for a further discussion of the risks from changes
to the trade policies and tariffs between the U.S. and China.
Unfavorable economic conditions or negative publicity concerning complications of laser eye surgery, or
medical devices in general, could hurt sales of our refractive products.
For the year ended January 2, 2026, approximately 100% of our revenue was generated from sales of ICL lenses
used in refractive procedures. Refractive surgery is an elective procedure generally not covered by health insurance.
Patients must pay for the procedure, frequently through installment financing arrangements with third parties. They
can defer the choice to have refractive surgery if they lack the disposable income to pay for it or do not feel their
income is secure. Economic stagnation, lack of consumer confidence or a recession in any of our larger markets or
on a global basis could slow ICL sales growth or, if severe, cause declines in sales, which could materially harm our
business.
We believe that negative publicity in the past regarding the potential complications of refractive surgery and
potential patient dissatisfaction, in particular because of LASIK and other corneal laser-based procedures, decreased
patient interest in LASIK as well as all other refractive procedures. Depending on the nature and severity of any
future negative publicity about refractive surgery, the growth of ICL sales could be limited or could decline due to
decreased patient interest in all refractive surgery, including our ICL.
Disruptions in our supply chain or failure to adequately forecast product demand could result in significant
delays or lost sales.
The loss of a material supplier could significantly disrupt our business. In some cases, we obtain components
used in certain of our products from single sources. If we experience difficulties acquiring sufficient quantities of
required materials or products from our existing suppliers, or if our suppliers are found to be non-compliant with the
U.S. FDA’s QSR, other applicable laws, or STAAR’s requirements, then qualifying and obtaining the required
regulatory approvals to use alternative suppliers may be a lengthy and uncertain process during which production
could be delayed and we could lose sales.
Our sources of supply for raw materials may be threatened by shortages and other market forces, by natural
disasters, climate impacts, or public health crises or other disruptive events, or by the supplier’s failure to maintain
adequate quality or a recall initiated by the supplier. Even when substitute suppliers are available, the need to verify
the substitute supplier’s regulatory compliance and the quality standards of the replacement material could
significantly delay production and materially reduce our sales. In particular, we manufacture the proprietary
collagen-containing raw material used in our ICLs. If the supply of these collagen-containing raw materials is
disrupted, it could result in our inability to manufacture our ICL products and would have a material adverse effect
on STAAR.
While our net sales decreased in fiscal 2025 compared to fiscal 2024, we intend to return to sales growth, and
we will be dependent on our suppliers to help support such growth. Any failure by us to forecast demand for or to
maintain an adequate supply of, raw material and finished product could result in an interruption in the supply of
certain products, which could impact sales of that product. If our suppliers or we are unable or our suppliers are
unwilling to meet our increased manufacturing requirements, we may not be able to produce enough materials or
products in a timely manner, which could impact our sales.
Because our business is global, our sales and profits may fluctuate or decline in response to changes in
foreign currency exchange rates and/or other international risks, including tariffs.
Activities outside the U.S. accounted for approximately 91% of our total sales during 2025. Foreign currency
fluctuations could result in volatility of our revenue. The results of operations and the financial position of our
Japanese subsidiary are reported in Japanese yen and then translated into U.S. dollars at the applicable exchange
rates for inclusion in our consolidated financial statements, exposing us to translation risk. In addition, we are

21
exposed to transaction risk because we incur some of our sales and expenses in currencies other than the U.S. dollar.
Our most significant currency exposures are to the Japanese yen, the euro, and the Swiss franc, and the exchange
rates between these currencies and the U.S. dollar may fluctuate substantially. We do not actively hedge our
exposure to currency rate fluctuations. Any strengthening of the U.S. dollar would likely negatively impact our
results. We price some of our products in U.S. dollars, and thus changes in exchange rates can make our products
more expensive in some offshore markets and reduce our sales. Inflation could also make our products more
expensive and increase the credit risks to which we are exposed. Future foreign currency fluctuations could
favorably or unfavorably impact and increase the volatility of our revenue, profitability, and stock price.
Economic, social, and political conditions, laws, practices, and local customs vary widely among the countries
in which we sell our products. Our operations outside of the U.S. face a number of risks and potential costs,
including, enjoying less stringent protection of intellectual property, and facing economic, political, and social
uncertainty in some countries, especially in emerging markets. For example, sales in certain Asian and developing
markets may result in lower margins and higher exposure to intellectual property infringement or counterfeits. Given
the size of the Company’s business in China relative to its net sales in the rest of the world, macroeconomic
conditions in China have a significant impact on the Company’s business, operations, and financial results. Our
results in fiscal 2024 were negatively impacted by a significant decline in ICL sales in China in the fourth quarter
ended December 27, 2024, where the sluggish economy and weak consumer consumption contributed to fluctuating
demand for ICL procedures. As expected, our sales in China declined in 2025, due to elevated levels of inventory
held at our China distributors at the end of December 27, 2024. If China experiences a significant or prolonged
slowdown or disruption to its economy, or social or political unrest, we may experience a significant reduction in
sales in the future.
Further, trade disputes or tensions between the United States and its significant trading partners may adversely
affect our sales, including as a result of the imposition of tariffs or other barriers or restrictions on trade, or increase
our costs. The institution of trade tariffs both globally and between the U.S. and China specifically could negatively
impact the overall economic condition in our markets, including China, which could have a negative effect on our
sales. As an example, on February 1, 2025, the U.S. government announced a 25% tariff on product imports from
certain countries, including Mexico and Canada, and 10% tariffs on product imports from certain countries,
including China. In response, China announced that they would impose counter tariffs on select goods imported
from the U.S., to which the U.S. responded with heightened reciprocal tariffs. The U.S. and China have reached a
one-year agreement with an expiration of November 10, 2026, which includes the continued suspension of the
heightened reciprocal tariffs on China and delayed enforcement of new U.S. export rules targeting affiliates of
blacklisted firms. If maintained, the newly announced tariffs and the potential escalation of trade disputes could pose
a significant risk to our business and would affect our revenue and cost of goods sold. The extent, focus and duration
of any such tariffs and the resulting impact on general economic conditions and on our business are uncertain and
depend on various factors, such as negotiations between the U.S. and affected countries, the responses of other
countries or regions, exemptions or exclusions that may be granted, availability and cost of alternative sources of
supply, and demand for our products in affected markets. Further, actions we take to adapt to new tariffs or trade
restrictions may cause us to modify our operations or forgo business opportunities.
In addition, new laws, regulations and policies in China or elsewhere applicable to foreign medical device
companies could negatively impact our business. The medical device landscape in China is rapidly evolving, and
local preference policies and cost control measures, including programs like volume-based procurement, have the
potential to disrupt our business. Also, we are exposed to credit and collectability risk on our trade receivables with
customers in certain international markets. There can be no assurance we can effectively limit our credit risk and
avoid losses and our ability to transfer foreign earnings to the U.S. may be subject to taxes or restricted or result in
incurring substantial costs. Our continued success as a global company depends, in part, on our ability to develop
and implement policies and strategies that are effective in anticipating and managing these and other risks in the
countries where we do business. These and other risks may have a material adverse effect on our operations in any
particular country and on our business, financial condition and results of operations as a whole.
Changes in our effective tax rate or additional tax liabilities could adversely impact our net income.
We are subject to income taxes as well as non-income-based taxes in Switzerland, the U.S. and various other
jurisdictions in which we operate. The laws and regulations in these jurisdictions are inherently complex and we will
be obliged to make judgments and interpretations about the application of these laws and regulations to us, including
our subsidiaries and our operations and businesses. Those laws and regulations include those related to any
restructuring of intercompany operations, holdings or financings, the valuation of intercompany services; cross-
border payments between affiliated companies; and the related effects on income tax, VAT and transfer tax. Further,

22
our tax liabilities could be adversely affected by numerous other factors, including income before taxes being lower
than anticipated in countries with lower statutory tax rates and higher than anticipated in countries with higher
statutory tax rates, changes in the valuation of deferred income tax assets and liabilities, and changes in tax laws and
regulations. Although we believe our tax estimates are reasonable, any changes in our judgments and interpretation
of tax laws or any material differences as a result of any audits could result in unfavorable tax adjustments that may
have an adverse effect on our overall tax liability.
Changes in tax laws could result in additional tax liabilities.
Changes in tax laws can and do occur. For example, in 2017, the U.S. government enacted the Tax Cuts and
Jobs Act, which is complex and continues to be further clarified with supplemental guidance. Changes to tax laws
may require us to make significant judgment in determining the appropriate provision and related accruals for these
taxes. Thus, as a result, such changes could result in substantially higher taxes and a significant adverse effect on our
results of operations, financial conditions and liquidity. In addition, the Organization for Economic Co-operation
and Development (OECD), has published proposals covering a number of issues, including country-by-country
reporting, permanent establishment rules, transfer pricing rules, tax treaties and taxation of the digital economy. On
October 8, 2021, the OECD/G20 inclusive framework on Base Erosion and Profit Shifting (the Inclusive
Framework) published a statement updating and finalizing the key components of a two-pillar plan on global tax
reform originally agreed on July 1, 2021, and a timetable for implementation by 2023. The timetable for
implementation has since been extended to 2024 and, with respect to certain components of the plan, to 2025. Under
pillar one, a portion of the residual profits of multinational businesses with global turnover above €20 billion and a
profit margin above 10% will be allocated to market jurisdictions where such allocated profits would be taxed.
Under pillar two, the Inclusive Framework has agreed on a global minimum corporate tax rate of 15% for companies
with revenue above €750 million, calculated on a jurisdictional basis. On February 1, 2023, the U.S. Financial
Accounting Standards Board indicated that they believe the minimum tax imposed under pillar two is an alternative
minimum tax, and, accordingly, deferred tax assets and liabilities associated with the minimum tax would not be
recognized or adjusted for the estimated future effects of the minimum tax but would be recognized in the period
incurred. On January 5, 2026, the OECD issued administrative guidance outlining a framework under which U.S.-
parented groups may be excluded from the application of the OECD’s global minimum tax rules. Each member
jurisdiction will need to adopt this guidance into local law, and the timing and manner of adoption may vary. We are
continuing to monitor developments related to this guidance and will evaluate the impact on our financial statements
as additional information becomes available.
We are vulnerable to any loss of use of our principal manufacturing facility.
Our principal ICL manufacturing facility is located in Monrovia, California. If our Monrovia manufacturing
facility suffered a disruption, shutdown or catastrophic loss due to fire, flood, earthquake, terrorism or other natural
or man-made disasters, including manufacturing challenges such as equipment or IT failure, it could have a material
adverse effect on our operations. Our Monrovia manufacturing facility has been, and may in the future be, adversely
impacted by weather and fire events, and it is located in a region where earthquakes could cause catastrophic loss.
Developing additional manufacturing sites may require significant expense for personnel and equipment and a long
period to obtain regulatory approvals. We are in the process of expanding our manufacturing capabilities for
STAAR’s ICL products in our Nidau, Switzerland facility.
While we have received the required regulatory approvals and have started manufacturing ICLs at our Nidau
facility, ramping up production is subject to numerous risks and uncertainties. To satisfy our own quality standards
as well as regulations, we must follow strict protocols to confirm that products and materials made at the Nidau
facility, and any new facility in the future, are equivalent to those made at our Monrovia facility. Even minor
changes in equipment, supplies or processes require validation. Unanticipated delays with a transferred process or
difficulties in manufacturing a transferred material could interrupt our supply of products. Any sustained
interruption in supply could cause us to lose market share and harm our business, financial condition and results of
operations.
If any or a portion of our facilities were to experience a catastrophic loss, or if one of our facilities is found not
to be in compliance with regulatory requirements, it could disrupt our operations, delay production and shipments,
delay or reduce sales and revenue and result in large expenses to repair or replace the facility, as well as lost
customers or sales. Our insurance for property damage and business interruption may not cover any particular loss,
or, if covered, be sufficient. We do not carry insurance or reserve funds for interruptions or potential losses arising
from earthquakes or terrorism.

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Public health crises, political crises, and other catastrophic events or other events outside of our control may
impact our business.
In 2025, we generated approximately 91% of our total sales outside the U.S. A natural disaster (such as a
climate-related event or otherwise), public health crisis (such as a pandemic or epidemic), political crisis (such as
terrorism, war, political instability or other conflict), or other events outside of our control that may occur anywhere
around the world, may adversely impact our business and operating results. Moreover, these types of events could
negatively impact surgeon or patient spending in the impacted region(s) or depending upon the severity, globally,
which could adversely impact our operating results.
The extent to which a pandemic, public health or political crisis in the future impacts our business, operations,
and financial results, including the duration and magnitude of such effects, will depend on numerous evolving
factors that are uncertain and cannot be predicted, including the following: the duration and scope of the pandemic,
public health or political crisis; the impact it has on global and regional economies and economic activity, including
the duration and magnitude of its impact on consumer spending; how quickly and to what extent more customary
economic and operating conditions can resume; its impact on our customers’ facilities; levels of consumer
confidence; whether our preventative measures such as remote working arrangements, changes to manufacturing
work areas, such as adherence to social distancing guidelines, and other workforce changes will impact operational
efficiency or inventory levels; our ability to obtain supplies from vendors or transport products to customers; or
adverse impacts to any other element of our supply chain; the impact on regulatory agencies, including the review
and approval process; the impact on clinical studies; the ability of our customers to successfully navigate the impacts
of the pandemic, public health or political crisis, such as resuming activities and growing patient interest in our
lenses; and actions governments, businesses and individuals take in response to the pandemic, public health or
political crisis.
In addition, a prolonged pandemic, public health or political crisis could adversely impact our ability to recruit
and/or retain employees and the continued service and availability of skilled personnel necessary to run our complex
production operations, as well as members of our management team, third-party suppliers, distributors and vendors.
To the extent our management or other personnel are impacted in significant numbers and are not available to
perform their job duties (for example, for health and safety reasons), we could experience delays in, or the
suspension of, our manufacturing operations, research and product development activities, regulatory work streams,
and other important commercial and operational functions.
The loss of key employees, or our inability to recruit, hire and retain skilled and experienced personnel,
could negatively impact our ability to effectively manage and expand our business.
Our success depends on the skills, experience and performance of our senior management and other key
employees. The loss or incapacity of existing members of our executive management team could negatively impact
our operations, particularly if we experience difficulties in hiring qualified successors. In 2025, we announced a
number of leadership changes, including the appointment of a new Chief Executive Officer and new Chief Financial
Officer. In 2026, in accordance with the Cooperation Agreement, our Chief Executive Officer agreed to step down,
and the Board appointed interim Co-Chief Executive Officers. We are currently conducting a search for a permanent
Chief Executive Officer. Such changes, and any changes in the future, can be disruptive to the business. In addition,
it could be particularly detrimental if any key employee or employees went to work for a competitor. Also, our
future success depends on our ability to identify, attract, train, motivate and retain other highly skilled personnel.
Failure to do so may adversely affect our results. We do not maintain insurance policies to cover the cost of
replacing the services of any of our key employees who may unexpectedly die or become disabled.
We compete with much larger companies and low-cost Asian manufacturers.
We believe our primary competition in selling the ICL to patients seeking surgery to correct refractive
conditions lies not in similar products to the ICL, but in laser surgical procedures. Alcon (formerly a part of
Novartis), Johnson & Johnson (formerly Advanced Medical Optics or AMO), Bausch Health Companies (formerly
Valeant, Bausch & Lomb or B+L), and Carl Zeiss Meditec AG, all market lasers for corneal refractive surgery and
promote their sales worldwide. Each of these companies has much greater financial, technical, marketing and
distribution resources and brand name recognition than we do, and some of them have large international markets
for a full suite of ophthalmic products. Their greater resources for research, development and marketing, and their
greater capacity to offer comprehensive products and equipment to providers, makes for intense competition. We
also face competition from other phakic implantable lenses, including lenses made by Biotech Vision Care, Care
Group, Eyebright, and Ophtec. Increasingly, competitors from Asia are beginning to appear in some markets with

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their low-cost version of an implantable contact lens, which competes with our ICL. With our commercial success
with the ICL, additional companies may seek to enter the refractive phakic intraocular lens market.
We could experience losses due to product liability claims.
We have been subject to product liability claims in the past and may experience such claims in the future.
Product liability claims against us may not be covered, may exceed the coverage limits of our insurance policies or
cause us to record a loss in excess of our deductible. A product liability claim that exceeds our insurance coverage
could materially harm our business, financial condition, and results of operations. Even if an insurance policy covers
a product liability loss, we must generally pay for losses until they reach the level of the policy’s stated deductible or
retention amount after which the insurer begins paying. The payment of retentions or deductibles for a significant
number of claims could have a material adverse effect on our business, financial condition, and results of operations.
Any product liability claim would divert managerial and financial resources and could harm our reputation with
customers. We cannot assure investors that we will not have product liability claims in the future or that such claims
would not have a material adverse effect on our business.
Our defined benefit pension plans are currently underfunded and we may be subject to significant increases
in pension benefit obligations under those pension plans.
We sponsor two defined benefit pension plans through our wholly owned Swiss and Japanese subsidiaries,
which we refer to as the “Swiss Plan” and the “Japan Plan”, respectively. Both plans are underfunded and may
require significant cash payments. We determine our pension benefit obligations and funding status using many
assumptions. If the investment performance does not meet our expectations, or if other actuarial assumptions are
modified, or not realized, we may be required to contribute more than we currently expect and increase our future
pension benefit obligations to be funded from our operations. Our pension plans taken together are underfunded by
approximately $6.4 million ($0.4 million for the Japan Plan and $6.0 million for the Swiss Plan) as of January 2,
2026. If our cash flow from operations is insufficient to fund our worldwide pension obligations, as well as other
cash requirements, we may have to seek additional capital.
Our activities involve hazardous materials, emissions, and use of an irradiator and may subject us to
environmental liability.
Our manufacturing, research and development activities involve the use of hazardous materials and equipment
and use of an irradiator. Federal, state and local laws and regulations govern the use, manufacturing, storage,
handling and disposal of these materials and certain waste products in the places where we have operations. We
cannot eliminate the risk of accidental contamination or injury from these materials and equipment. Remedial
environmental actions could require us to incur substantial unexpected costs, which could materially and adversely
affect our financial condition and results of operations. If we were involved in an environmental accident or found to
be in substantial non-compliance with applicable environmental laws, it could harm our reputation, and we could be
held liable for damages or penalized with fines.
Data corruption, cyber-based attacks or network security breaches and/or noncompliance with data
protection and privacy regulations could negatively impact our operations.
We depend on information technology networks and our information technology infrastructure for electronic
communications among our locations around the world and between our personnel and our subsidiaries, customers,
and suppliers. The integrity and protection of our customer, vendor, supplier, employee, and other Company data
that we collect, use and store, including personal information, is an important part of our business. Addressing
applicable and evolving security and privacy regulations may increase our operating costs or adversely affect our
business operations.
Certain of our employees, contractors and vendors have access to and use personal information in the ordinary
course of our business. The secure processing, maintenance and transmission of this information is critical to our
operations. Despite our security measures and business controls, our information technology and infrastructure have
in the past and may in the future be subject to attacks by hackers, breaches due to employee, contractor or vendor
error, or malfeasance, systems error (whether as a result of an intentional breach, a natural disaster or human error)
or other disruptions or subject to the inadvertent or intentional unauthorized release of information. Any such
occurrence could compromise our networks and the information stored thereon could be accessed, publicly
disclosed, lost or stolen. Any such access, disclosure or other loss of information could result in legal claims or
proceedings, and liability under laws that protect the privacy of personal information and regulatory penalties,
disrupt our operations and the supply of products we provide to our clients, compromise our intellectual property or

25
other confidential business information, or damage our reputation, any of which could adversely affect our
profitability, revenue and competitive position. Many of our employees currently work remotely, which may make
us more vulnerable to cyberattacks. While we have not experienced a material system failure, accident or security
breach to date, we cannot assure you that our data protection efforts and our investment in information technology
will prevent significant breakdowns, data leakages, breaches in our systems or other cyber incidents that could have
a material adverse effect upon our reputation, business, operations or financial condition. We continue to invest in
our cybersecurity program to enhance current capabilities and also implement new capabilities in our effort to keep
pace with the changing threat landscape. Also, certain of our information technology systems are not redundant, and
our disaster recovery planning is not sufficient for every eventuality. Despite any precautions we may take, such
events could materially harm our reputation and financial results. Moreover, while we maintain cyber insurance, it
may be insufficient to address any potential loss incurred. We also rely on third parties to host or otherwise process
some of this data (such as cloud-based computing). Elements of our information technology systems that we
outsource to third parties may also be vulnerable to various types of attacks or disruptions. Any failure by a third
party to prevent security breaches could have adverse consequences for us.
We are subject to various data protection and privacy regulations in different jurisdictions, including the
General Data Protection Regulation (Regulation (EU) 2016/679) (GDPR) and the California Consumer Privacy Act.
We have made and continue to engage in compliance efforts to satisfy these and other regulations, however, we may
be unsuccessful in complying with applicable requirements, and may be at risk of enforcement actions and/or
subject to fines, including those imposed by a data protection authority. As a result, we may incur substantial
expense in complying with data protection and privacy regulations, exposure resulting from a data breach,
ransomware or non-compliance and may be distracted from other aspects of our business.
The increased use of social media platforms and mobile technologies presents additional risks and
challenges.
Social media platforms and mobile technologies are increasingly being used to communicate about our products
and the health conditions they are intended to treat. Their use poses risks to our business and requires specific
attention and monitoring. For example, patients, surgeons, competitors, or others may use these channels to
comment on our products, including the safety or effectiveness of a product and to report an alleged adverse event.
Negative posts or comments about us or our business on any social networking web site could harm our reputation.
In addition, our employees may use social media tools and mobile technologies inappropriately, which may give rise
to liability, or which could lead to the exposure of sensitive information. In either case, such uses of social media
and mobile technologies could have a material adverse effect on our business, financial condition, and results of
operations.
Acquisitions of technologies, products, and businesses could disrupt our operations, involve increased
expenses and present risks not contemplated at the time of the transactions.
We may consider and, as appropriate, make acquisitions of technologies, products, and businesses that we
believe are complementary to our business. Acquisitions typically entail many risks and could result in difficulties in
integrating the operations, personnel, technologies, and products acquired, and mitigating the risk of unknown
liabilities some of which may result in significant payments or charges to earnings.
If we are unable to successfully integrate our acquisitions with our existing business, we may not obtain the
advantages that the acquisitions were intended to create, which may materially adversely affect our business, and
our ability to develop and introduce new products. Actual costs and sales synergies, if achieved at all, may be lower
than we expect and may take longer to achieve than we anticipate. Acquisitions may also divert management’s
attention from our core business. Furthermore, the products of companies we acquire may overlap with our products
or those of our customers, creating conflicts with existing relationships or with other commitments that are
detrimental to the integrated businesses.
If we are not able to manage growth successfully, it could adversely affect our business, financial condition,
and results of operations.
While our net sales decreased in fiscal 2025 compared to fiscal 2024, we intend to return to sales growth.
Growth can place a significant strain on our financial, operational, and managerial resources. In order to support our
growth, we must continue to implement and enhance our managerial, operational and financial systems, expand our
operations, and continue to recruit and train qualified personnel. There can be no assurance that our strategic and
operational planning will allow us to adequately manage anticipated growth. Factors such as a failure to follow
specific internal practices and procedures, equipment malfunction, environmental factors or damage to one or more

26
of our facilities could adversely affect our ability to manufacture our products. For example, in the second half of
2021, as we increased production to meet increased demand, we experienced a decline in product yield. In the event
of a slower-than-planned manufacturing output, we may be unable to quickly meet customer demand. In the event of
a significant manufacturing challenge, we may experience delays in meeting product demand which could adversely
affect our results of operations and financial condition.
In addition, the expense associated with increased manufacturing, sales and marketing to meet increased
demand may exceed our expectations. Further, our principal ICL manufacturing facility is in the U.S., and
inflationary pressures could result in increased costs in our supply chain, which may be difficult to pass along to our
customers. In addition, as we ramp up ICL manufacturing in Nidau, Switzerland, our costs are expected to increase
given the expense of operating two sites and lower site utilization impacts cost absorption. We expect the on-going
operation of two manufacturing sites will create pressure on gross margins and will lead to higher inventory levels in
the near-term. As our ICLs have a shelf life of three years, if we are unable to align our manufacturing with
forecasted demand, higher inventory levels could require write-downs for excess, slow moving, expiring and
obsolete inventory.
Further, we are investing in new enterprise resource planning (ERP) and other technology platforms and
systems to help support our future growth plans. Implementing a new ERP system is not only costly, but it is
complex and exposes us to potential risks. ERP implementations can negatively affect financial accounting and
reporting processes, as well as external commercial activities, such as ICL ordering and delivery. We cannot be
assured that we will successfully implement our new ERP system or that we will avoid these and other negative
impacts from our implementation efforts.  If we do not effectively implement the ERP system as planned, or it does
not operate as intended, the effectiveness of our internal control over financial reporting could also be adversely
affected.  In addition, we cannot assure that our new ERP system, and other technology platforms and systems that
we use now or implement in the future, will meet our business needs and support our growth as intended. We also
cannot assure that there will not be associated excessive costs or disruptions in portions of our business in the course
of our maintenance, support and/or upgrade of these systems. Any inability to successfully manage growth could
materially and adversely affect our business, financial condition, and results of operation.
Corporate responsibility, specifically related to environmental, social and governance (ESG) matters, may
impose additional costs, expose us to reputational and emerging areas of risks, and could negatively affect our
business.
In order to comply with global ESG regulations and reporting requirements, we have been investing in our ESG
resources and capabilities. Further, some investors, stockholders, customers, suppliers and other third parties have
been increasingly focusing on ESG and corporate responsibility practices and reporting. Companies that do not
adapt to or comply with the evolving regulations, requirements, expectations and standards, or which are perceived
to have not responded appropriately, may suffer from reputational damage and result in the business, financial
condition and/or stock price of a company being materially and adversely affected. This may result in a significant
increase in additional expenses (e.g., direct or indirect cost of energy, materials, manufacturing, distribution,
packaging and other operating costs) to comply with evolving regulations and/or third-party requirements that could
adversely impact our business or profitability.
In response to certain stakeholder expectations, we have commenced reporting of our sustainability endeavors
and future plans. These disclosures reflect our current aspirations and are not guarantees that we will be able to
achieve them. Our efforts to accomplish and accurately report on these plans present numerous risks, any of which
could have a material negative impact on us. Our pursuit of certain practices, as well as our ability to achieve any
goal, including with respect to ESG-related initiatives, is subject to numerous risks, many of which are outside of
our control. Certain shareholders may reduce or eliminate their holdings of our stock based on ESG issues. At the
same time, certain stakeholders and regulators have increasingly expressed or pursued opposing views, legislation
and investment expectations with respect to sustainability initiatives, including the enactment or proposal of “Anti-
ESG” legislation or policies. If our sustainability practices do not meet evolving investor or other stakeholder
expectations and standards or if we are unable to satisfy all stakeholders, our reputation, our ability to attract or
retain employees, our sales and our attractiveness as an investment or business partner could be negatively impacted.
Similarly, our failure or perceived failure to pursue or fulfill certain targets or goals, or to satisfy various reporting
standards could also have negative impacts and expose us to government enforcement actions and private litigation.
Finally, we expect to incur additional costs and require additional resources to monitor, report, and comply with
our various ESG practices, as well as new and anticipated global regulations focused on ESG. If we fail to adopt
ESG standards or practices as quickly as some stakeholders desire, report on our efforts or practices accurately, or

27
satisfy the expectations of our various stakeholders who have varied perspectives on sustainability practices and
global regulators, our reputation, business, financial performance and growth may be adversely impacted.
Climate changes and extreme weather conditions could negatively affect our business.
Climate changes and extreme weather conditions could create financial risk to our business. Global physical
climate changes, including unseasonable weather conditions and earthquakes, could disrupt our operations by
impacting the availability and cost of water, energy, or materials within our supply chain, and could also increase
insurance and other operating costs. This could in turn put pressure on our manufacturing costs and result in reduced
profit margins associated with certain of our products. In the U.S., we have several offices and facilities located in
Southern California, which has experienced weather events and fires and is a region where earthquakes could cause
catastrophic loss. Climate changes and extreme weather conditions could impact our facilities and employees in
Southern California and around the world. Climate-related transitional risks, such as changing regulations, could
also increase our costs and adversely impact our operations or financial performance.
Risks Related to the Ophthalmic Products Industry
Unless we keep pace with advances in our industry and persuade physicians to adopt our new products, our
sales will not grow and may decline.
Our future growth depends, in part, on our ability to timely develop products to treat diseases and disorders of
the eye that are more effective, safer, or incorporate emerging technologies better than our competitors’ products,
and are accepted by physicians and patients. Physicians and patients initially adopted our EVO ICL for the treatment
of high myopia, and in order to continue growing, we need to increase adoption for the treatment of low and
moderate myopia. Persuading physicians to adopt and grow their use of a new product or technology is challenging,
and if we are unsuccessful, our sales will not grow and may decline.
In addition, sales of our existing products may decline rapidly if one of our competitors introduces a superior
product, or if we announce a new product of our own. If we focus on research and development or technologies that
do not lead to better products, more effective or advanced products could surpass our current and planned products.
In addition, such product development efforts could require a significant investment of resources. If we are able to
develop new products, we must manufacture these products economically and market them successfully by
demonstrating to enough eye-care professionals the overall benefits of using them. If we do not timely develop new
products that meet market demand or if there is insufficient demand for our new products, our sales and results of
operations could be harmed. For example, it is uncertain whether physicians in countries that recognize the CE Mark
will adopt the EVO Viva lens for use in presbyopic eyes, which our Notified Body approved for marketing and sale
in July 2020.
Resources devoted to research and development may not yield new ophthalmic products that achieve
regulatory approval or commercial success.
STAAR has limited product offerings, with nearly all of our net sales from EVO and EVO+ ICLs, which creates
a heightened risk profile for the Company. In order to be successful, we will need to continue to launch new
products or replace our existing products. Development of new implantable technology, from discovery through
testing and registration to initial product launch, is expensive and time-consuming. Because of the complexities and
uncertainties of ophthalmic research and development, products we are developing, including those currently in
development, may not complete the development process or obtain the regulatory approvals required for us to
successfully market the products. Our new products, including those currently under development, may fail to
become commercially successful.
We may be required to conduct extensive clinical trials to demonstrate safety and effectiveness of new or
enhanced ophthalmic products, such clinical trials are expensive, complex, can take years to complete, and have
highly uncertain outcomes.
In order to further advance the development of, and ultimately receive regulatory approval to manufacture and
sell, our new ophthalmic products or product enhancements, we may be required to conduct extensive clinical trials
to demonstrate their safety and effectiveness to the satisfaction of the U.S. FDA or regulatory authorities in other
countries. Clinical trials are expensive, complex, can take many years to complete, and have highly uncertain
outcomes. Delays, setbacks, or failures can occur at any time, or in any phase of the clinical trials, and can result

28
from concerns about safety, a lack of demonstrated effectiveness, or poor study or trial design. The commencement
and completion of clinical trials may be delayed or prevented by many factors, including, but not limited to:
•
an inability to reach agreement with regulatory authorities regarding the scope or extent of a proposed
clinical trial;
•
an inability to timely identify and reach agreement on acceptable terms with prospective clinical trial sites
and entities involved in the conduct of our clinical trials;
•
failure by third-party clinical trial managers to comply with applicable regulations or protocols;
•
flaws in the design of the clinical trials;
•
slower than expected rates of patient recruitment and enrollment;
•
periodic amendments to clinical trial protocols to address certain variables which arise during the course of
a trial;
•
lack of effectiveness of our products; or
•
unforeseen safety issues.
Complying with government regulation substantially increases the cost of developing, manufacturing and
selling our ophthalmic products.
Competing in the ophthalmic products industry requires us to introduce new or improved products and
processes continuously, and to submit these to the U.S. FDA and other regulatory bodies for clearance or approval.
Obtaining clearance or approval can be a long and expensive process, and clearance or approval is never certain. For
example, the U.S. FDA or another country’s regulatory agency, could require us to conduct an additional clinical
trial prior to granting clearance or approval of a product and such clinical trial could take a long time and have
substantial expense. Furthermore, there is no assurance that clearance or approval will be granted.
If a regulatory authority delays or does not grant approval of a potentially significant product, the potential sales
of the product and its value to us can be substantially reduced. Even if the U.S. FDA or another regulatory agency
clears or approves a product, the clearance or approval may limit the indicated patient populations or uses of the
product, or may otherwise limit our ability to promote, sell and distribute the product, or may require expensive
post-marketing studies or surveillance. If we cannot obtain timely regulatory clearance or approval of our new
products, or if the clearance or approval is too narrow, we will not be able to successfully market these products,
which would eliminate or reduce our potential sales and earnings.
In addition, the U.S. FDA and other regulatory authorities may change their clearance and approval policies,
adopt additional regulations, or revise existing regulations, or take other actions which may prevent or delay
approval or clearance of our products under development, cause the loss of previously received approvals or
clearances or impact our ability to modify our currently cleared products on a timely basis. Also, we expect to incur
additional costs complying with the European Union’s new Medical Device Regulation.
We depend on proprietary technology, but our intellectual property protections may be limited.
While we rely on various intellectual property laws, contractual provisions and confidentiality procedures and
copyright laws to protect the proprietary aspects of our technology, we rely more on trade secrets and know-how,
which may not prevent third parties from using publicly available information to access our technology. The
ophthalmic industry is competitive, and new products and technologies are regularly being brought to market. With
respect to our patents, any of them may be challenged, invalidated, circumvented or rendered unenforceable. Any of
our pending patent applications may fail to result in an issued patent or fail to provide meaningful protection against
competitors or competitive technology. Litigation may be necessary to enforce our intellectual property rights, and
to protect or determine the validity and scope of our proprietary rights. We also challenge others’ patents or patent
applications from time to time. Any litigation could result in substantial expense, may reduce our profits, and may
not adequately protect our intellectual property rights. In addition, we may be exposed to future litigation by third
parties based on claims that our products infringe their intellectual property rights. This risk is exacerbated by the
fact that the validity and breadth of claims covered by patents in our industry may involve complex legal issues that
are open to dispute. Any litigation or claims against or instituted by us, whether or not successful, could result in
substantial costs, divert resources and the efforts of our personnel away from daily operations, harm our reputation,
result in the impairment of our intellectual property rights, limit our ability to pursue future products and/or
otherwise materially adversely impact our business.

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We may not successfully replace our existing products, including those that lose or have lost patent
protection.
As our existing patents expire, many of which already expired over the past several years, our competitors may
introduce products using the same technology. Because of this possible increase in competition, we may lose sales
and/or may need to reduce our prices to maintain sales of our products, which would make them less profitable. If
we fail to develop and successfully launch new products and/or obtain new patents, our sales and profits with respect
to our products could decline significantly. We may not be able to develop and successfully launch more advanced
replacement products.
While we will continue developing intellectual property protections for our future products, third parties may
pursue blocking patents that limit our ability to manufacture such products.
We plan to continue relying on our intellectual property rights to protect products and technology that we may
develop or employ in the future, but third parties may develop and obtain patents covering such products or
technology. In such event, we may need to obtain licenses for such patents. However, we may not be able to obtain
licenses on reasonable terms, if at all, which could limit our ability to manufacture our future products and operate
our business.
Risks Related to Regulatory and Compliance
We are subject to extensive government regulation worldwide, which increases our costs and could prevent
us from selling our products.
We are regulated by regional, national, state and local agencies in the U.S. as well as governmental authorities
in those countries in which we manufacture or distribute products. These regulations may govern the research,
development, manufacturing, and commercial activities relating to medical devices, including their design, pre-
clinical and clinical testing, clearance or approval, production, labeling, sale, distribution, import, export, post-
market surveillance, advertising, dissemination of information and promotion. Failure to receive necessary approvals
in international jurisdictions on a timely basis, or at all, could harm our business and operating results. In addition,
regulations and requirements for approvals vary by country, which can significantly increase the costs to sell our
products in these international jurisdictions. Any failure to comply with applicable legal and regulatory obligations
could result in fines and penalties, restrictions on certain business activities, and other remedial measures, which if
significant, could disrupt our operations, distract management, and harm our business.
Regulatory issues may adversely impact our operations.
If we cannot maintain compliance with a particular jurisdiction’s regulatory requirements, it could adversely
impact our financial performance and have a material adverse effect on our ongoing business and operations. We
plan to remain in compliance with regulatory requirements established by applicable global regulatory agencies,
however, there can be no guarantee that we will do so. We expect to continue to devote resources and attention to
our quality systems and compliance and other regulatory requirements as part of the ordinary course of business. We
cannot ensure that our efforts will be successful and failure to achieve or maintain compliance may materially and
adversely impact our business and operations.
Laws pertaining to healthcare fraud and abuse could materially adversely affect our business, financial
condition, and results of operations.
Our relationships with physicians, and other healthcare providers are subject to scrutiny under various U.S. and
international bribery, fraud and abuse, anti-kickback, false claims, privacy, and similar laws, collectively referred to
as “healthcare compliance laws.” Healthcare compliance laws are broad, sometimes ambiguous, complex, and
subject to change and changing interpretations, which could restrict our sales or marketing practices. Possible
sanctions for violation of these healthcare compliance laws include fines, civil and criminal penalties, exclusion
from government healthcare programs, and despite our compliance efforts, we face the risk of an enforcement
activity or a finding of a violation of these laws. For example, in 2022 a Japanese trade association (Japan Fair Trade
Council of the Medical Devices Industry) ruled that our subsidiary in Japan improperly implemented a program with
surgeons and hospitals to obtain videos of cataract surgeries where our cataract intraocular lenses were used.
We have entered into a variety of agreements with healthcare professionals. We have also adopted a Code of
Business Conduct and Ethics as well as a Compliance Program for Interactions with Healthcare Professionals which
govern our relationships with healthcare professionals to bolster our compliance with healthcare compliance laws.
While our relationships with healthcare professionals are structured to comply with applicable laws and we provide

30
training on these laws and our Code and Program, it is possible that enforcement authorities may view our
relationships as prohibited arrangements that must be restructured or for which we would be subject to other
significant civil or criminal penalties or debarment. In any event, any enforcement review of or action against us as a
result of such review, regardless of outcome, could be costly and time consuming. Additionally, we cannot predict
the impact of any changes in or interpretations of these laws. If our operations are found to be in violation of any of
the laws described above or any other governmental regulations that apply to us now or in the future, we may be
subject to penalties, including civil and criminal penalties, damages, fines, and disgorgement, any of which could
adversely affect our ability to operate our business and our financial results.
If we recall a product, the cost and damage to our reputation could harm our business.
We have voluntarily recalled our products in the past and recalls could take place again. We may also be subject
to recalls initiated by manufacturers of products we distribute. We cannot eliminate the risk of a material recall in
the future. Recalls can result in lost sales of the recalled products themselves and can result in further lost sales
while replacement products are manufactured, especially if the replacements must be redesigned or approved by
regulatory authorities prior to distribution. If recalled products have already been implanted, we may bear some or
all of the cost of corrective surgery. Recalls may also damage our professional reputation and the reputation of our
products. The inconvenience caused by recalls and related interruptions in supply, the underlying causal issues, and
the damage to our reputation, could cause professionals to discontinue using our products.
Companies are required to maintain certain records of actions, even if they determine such actions are not
reportable to the U.S. FDA or other regulatory bodies. If we determine that certain actions do not require notification
of the FDA or others, the FDA or other regulatory bodies may disagree with our determinations and require us to
report those actions as recalls. In addition, the FDA or other regulatory bodies could take enforcement action for
failing to report the recalls when they were conducted or failing to timely report or initiate a reportable product
action. Moreover, depending on the corrective action we take to redress a product’s deficiencies or defects, the FDA
or other regulatory bodies may require, or we may decide, that we will need to obtain new approvals or clearances
for the device before we may market or distribute the corrected device. Seeking such approvals or clearances may
delay our ability to replace the recalled devices in a timely manner.
Changes in U.S. FDA or international regulations related to product approval, including those that apply
retroactively, could make us less competitive and harm our business.
U.S. FDA and foreign regulations depend heavily on administrative interpretation, and we cannot assure
investors that future interpretations made by the FDA or other regulatory bodies, with possible retroactive effect,
will not adversely affect us. Additionally, any changes, whether in interpretation or substance, in existing regulations
or policies, or any future adoption of new regulations or policies by relevant regulatory bodies, could rescind,
prevent or delay approval of our products, which could materially impact our competitive position, business, and
financial results. Further, we or our distributors have obtained regulatory approvals outside the United States for
many of our products. We or our distributors may be unable to maintain regulatory qualifications, clearances or
approvals in these countries or obtain qualifications, clearances, or approvals in other countries. If we are not
successful in doing so, our business and financial condition will be harmed.
If our products cause or contribute to a death or a serious injury, we may face voluntary corrective actions,
agency enforcement actions and harm to our results.
Under the U.S. FDA regulations, we are required to provide the FDA with a Medical Device Report (MDR) for
any incident in which our product may have caused or contributed to a death or serious injury or in which our
product malfunctioned and, if the malfunction were to recur, would likely cause or contribute to death or serious
injury. In addition, all manufacturers placing medical devices in international markets, such as the European Union
and Asian markets, are legally bound to report any serious or potentially serious incidents involving devices they
produce or sell to the relevant authority in the jurisdiction where the incident occurred. Any adverse event involving
our products, including those requiring an MDR, could result in future voluntary corrective actions, such as product
actions or customer notifications, or agency actions, such as inspection, mandatory recall, or other enforcement
action. Any corrective action, whether voluntary or involuntary, as well as defending ourselves in a lawsuit, will
require the dedication of our time and capital, distract management from operating our business, and may harm our
reputation and financial results.
The decision to file an MDR involves a judgment by us as the manufacturer. We have made decisions that
certain types of events are not reportable to the FDA or other regulatory bodies; however, there can be no assurance
that the FDA or other regulatory bodies will agree with our decisions. If we fail to report adverse events to the FDA

31
or other regulatory bodies within the required timeframes, or at all, or if the FDA or other regulatory bodies disagree
with any of our determinations regarding the reportability of certain events, the FDA or other regulatory bodies
could take enforcement actions against us, which could have an adverse impact on our reputation and financial
results.
If we modify our products, we may have to obtain new marketing clearances or approvals or may have to
cease marketing or recall the modified products until clearances or approvals are obtained.
Our ICL products are Class III devices subject to the PMA approval process in the United States. Any
significant modification to a PMA approved device, including modifications to the manufacturing process, labeling
or design, requires a PMA Supplement. U.S. FDA guidelines establish different types of PMA Supplements
depending on the type of modification, with different data and information requirements and different timelines for
FDA review and approval. If we modify our ICL products in a way that requires a PMA Supplement, it could
require a lengthy and expensive review process with the FDA. Further, the FDA may not agree with our decisions
regarding whether a new approval is necessary, or what type of PMA Supplement may be required. In the past, we
have modified some of our 510(k) cleared and PMA approved products and have determined based on our review of
the applicable FDA guidance that in certain instances new clearances or approvals were not required. If the FDA
were to disagree with our determination and require us to submit new clearances or approvals, we could be required
to cease marketing and/or to recall the modified product until we obtain clearance or approval, and we may be
subject to significant regulatory fines or penalties.
Regulatory agencies in other countries similarly require approval or clearance prior to our marketing or selling
products in those countries. We rely on our distributors to obtain regulatory clearances or approvals of our products
in certain countries outside of the United States. If we or our distributors are unable to obtain additional clearances
or approvals needed to market existing products, new products or modified products in the United States or
elsewhere or obtain these clearances or approvals in a timely fashion or at all, or if our existing clearances or
approvals are revoked or restricted, our revenues and profitability may decline.
Non-compliance with anti-corruption laws could lead to penalties or harm our reputation.
We are subject to anti-corruption laws in the jurisdictions in which we operate, including the U.S. Foreign
Corrupt Practices Act (FCPA). Any failure to comply with these laws, even if inadvertent, could result in significant
penalties or otherwise harm our reputation, business, financial condition and results of operations. Our reliance on
foreign subsidiaries and independent distributors requires vigilance in maintaining our policy against participation in
corrupt or non-compliant activity, including, for example, with respect to our 2022 internal review of compliance
with certain regulations in the Japanese market related to sales of pre-loaded aphakic intraocular lenses for use in
cataract surgery (IOLs, not ICLs). In many of our markets outside the U.S., doctors and hospital administrators may
be deemed government officials. Despite precautions we may take, non-compliance may occur that could harm our
reputation and financial results. Other U.S. companies in the medical device and pharmaceutical field have faced
criminal penalties under the FCPA for allowing their employees or agents to deviate from appropriate practices in
doing business with such individuals.
Investigations and allegations, whether or not they lead to enforcement action or litigation, can materially
harm our business and our reputation.
Our failure to comply with the requirements of the U.S. FDA or other regulators can result in civil and criminal
fines, the recall of products, the total or partial suspension of manufacturing or distribution, seizure of products,
injunctions, lawsuits, failure to obtain approval of pending product applications, withdrawal of existing product
approvals, exclusion from participation in government healthcare programs and other sanctions. Any threatened or
actual government enforcement action can also generate adverse publicity and require us to divert substantial
resources from more productive uses in our business. Enforcement actions could affect our ability to distribute our
products commercially and could materially harm our business.
In addition, negative publicity about investigations or allegations of misconduct, even without a finding of
misconduct, could harm our reputation with healthcare professionals and also with the market for our common
stock. Responding to investigations or conducting internal investigations can be costly, time-consuming, and
disruptive to our business.

32
Risks Related to Ownership of Our Common Stock
The market price of our common stock has been and will likely continue to be volatile.
The market price for our common stock has fluctuated widely. The closing price of our common stock ranged
from $15.09 to $28.57 per share during the year ended January 2, 2026. Our stock price could continue to
experience significant fluctuations in response to factors such as market perceptions, quarterly variations in
operating results, operating results that vary from the expectations of securities analysts and investors, changes in
financial estimates, changes in the business and market valuations of competitors, announcements by us or our
competitors of a material nature, additions or departures of key personnel, future sales of our common stock and
stock volume fluctuations. Also, general political and economic conditions such as a recession or interest rate
fluctuations, public health crises, geopolitical tensions or conflicts, may adversely affect the stock market in general,
and, in turn, the market price of our common stock.
Because we do not intend to pay dividends, stockholders will benefit from an investment in our common
stock only if it appreciates in value.
We have not paid any cash dividends on our common stock since our inception. We currently expect to retain
any earnings for use to further develop our business, and do not expect to declare cash dividends on our common
stock in the foreseeable future. The declaration and payment of any such dividends in the future depends upon our
earnings, financial condition, capital needs, and other factors deemed relevant by our Board of Directors, and may
be restricted by future agreements with lenders. As a result, the success of an investment in our common stock will
depend entirely upon any future appreciation. There is no guarantee that our common stock will appreciate in value
or even maintain the price at which stockholders purchase their shares.
Our Certificate of Incorporation and Bylaws, anti-takeover provisions of Delaware law, and contractual
provisions could delay or prevent an acquisition or sale of our Company. Our Certificate of Incorporation empowers
our Board to issue one or more series of preferred stock, and to determine the rights of each such series as provided
in our Certificate of Incorporation. These provisions give our Board the ability to deter, discourage or make more
difficult a change in control of our Company, even if such a change in control could be deemed in the interest of our
stockholders or if such a change in control would provide our stockholders with a substantial premium for their
shares over the then-prevailing market price for our common stock. Our Certificate of Incorporation and Bylaws
contain other provisions that could have an anti-takeover effect, including the following:
•
stockholders cannot act by consent;
•
stockholders cannot fill vacancies on our Board;
•
certain provisions, including those related to changing the number of directors, limiting our stockholders’
ability to fill vacancies on our Board, prohibiting stockholder action by written consent, and amending such
provisions, cannot be altered, amended or repealed, and provisions inconsistent therewith cannot be
adopted, without the affirmative vote of holders of at least two-thirds in voting power of our outstanding
shares of common stock entitled to vote thereon; and
•
stockholders must give advance notice to nominate directors or propose other business.
In addition, we are generally subject to the anti-takeover provisions of Section 203 of the Delaware General
Corporation Law, which regulates corporate acquisitions. These provisions could discourage potential acquisition
proposals and could delay or prevent a change in control transaction. They could also have the effect of discouraging
tender offers for our common stock or prevent changes in our management.

33
Ownership of our common stock is concentrated among a few investors, which may affect the ability of a
third party to acquire control of us. Substantial sales by such investors could cause our common stock price to
decline.
Our largest stockholder, Broadwood, beneficially owns approximately 31% of our outstanding common stock,
and our largest five investors beneficially own in the aggregate approximately 66% of our outstanding common
stock. Following the termination of our Merger Agreement with Alcon, on January 14, 2026, STAAR entered into
the Cooperation Agreement with Broadwood, which provided for, among other things, certain governance and
leadership changes. In accordance with the Cooperation Agreement, two existing directors resigned from the Board
and three new directors designated by Broadwood were elected to the Board. Further, STAAR agreed to nominate
each of the three new directors for election to the Board at the Company’s 2026 annual meeting of stockholders.
The sale of a substantial number of shares of our common stock by Broadwood or any of our other largest
investors within a short period of time could cause our common stock price to decline, make it more difficult for us
to raise funds through future offerings of our common stock or acquire other businesses using our common stock as
consideration. In addition, having such a concentration of ownership may have the effect of making it more difficult
for a third party to acquire, or of discouraging a third party from seeking to acquire, a majority of our outstanding
common stock or control of our Board, including through a proxy solicitation. For example, Broadwood publicly
opposed the Company’s Merger with Alcon, and at the January 6, 2026, Special Meeting, the Company’s
stockholders voted against the Merger. The Merger Agreement was terminated in accordance with its terms effective
January 6, 2026.
Future sales of our common stock could reduce our stock price.
We could issue additional shares of common or preferred stock to raise additional capital or for other corporate
purposes without stockholder approval. In addition, we could designate and sell a class of preferred stock with
preferential rights over our common stock with respect to dividends or other distributions. Also, we have filed in the
past, and may file in the future, a universal shelf registration statement with the Securities and Exchange
Commission to cover the public offering and sale of our equity or debt securities. Sales of our common or preferred
stock under the shelf registration or in other transactions could dilute the interest of existing stockholders and reduce
the market price of our common stock. Even in the absence of such sales, the perception among investors that
additional sales of equity securities may take place could reduce the market price of our common stock.
ITEM 1B.
Unresolved Staff Comments
None.
ITEM 1C.
Cybersecurity
Risk Management and Strategy
We have established policies and processes for assessing, identifying, and managing material risk from
cybersecurity threats, and we have integrated these processes into our overall risk management program. We assess
material risks from cybersecurity threats, including any potential unauthorized occurrence on or conducted through
our information systems that may result in adverse effects on the confidentiality, integrity, or availability of our
information systems or any information residing therein.
We have adopted as the governance framework for our cybersecurity program the National Institute of
Standards and Technology (NIST) Cybersecurity Framework (CSF). We use this framework as a guide to help us
identify, assess, respond to, and manage cybersecurity risks relevant to our business. Our cybersecurity risk
management program includes:
•
periodic risk assessments designed to help identify material cybersecurity risks to our critical systems,
information, and our broader enterprise information technology (IT) environment;
•
skilled internal information security (IS) and data privacy personnel, who support our cybersecurity risk
assessment processes, our security controls, and our response to cybersecurity incidents;
•
external service providers, where appropriate, to monitor, assess, test, or otherwise assist with aspects of
our security controls, and to support risk mitigation efforts;
•
training for our employees on cybersecurity awareness and the importance of protecting information
assets, including “phishing” tests;

34
•
periodic reviews of key cybersecurity policies, and updating as needed;
•
information governance policy and a cybersecurity incident response plan that includes procedures for
monitoring data use and responding to cybersecurity incidents; and
•
a third-party risk management process for service providers, suppliers, and vendors.
Based on the information available to us as of the date of this Annual Report, we believe that risks from
cybersecurity threats, including as a result of any prior cybersecurity incidents, have not materially affected us,
including our business strategy, results of operations, or financial condition, and as of the date of this Annual
Report, we are not aware of any material risks from cybersecurity threats that are reasonably likely to do so.
However, we cannot eliminate all risks from cybersecurity threats or provide assurances that the Company will not
be materially affected by such risks in the future. Additional information on cybersecurity risks we face can be
found in Item 1A, Risk Factors, which should be read in conjunction with the foregoing information.
Governance
Our Board considers cybersecurity risk as part of its risk oversight function and has delegated oversight of
cybersecurity, including data security risk mitigation efforts, to the Audit Committee. Under the Audit Committee
charter, the Audit Committee has responsibility for discussing with management the Company’s policies with
respect to risk assessment and risk management, including guidelines and policies to govern the process by which
the Company’s exposure to risk is handled.
The Audit Committee receives reports from management on the Company’s cybersecurity risks and the
Company’s cybersecurity program. In addition, management updates the Audit Committee, as necessary, regarding
any material cybersecurity incidents. The Audit Committee regularly updates the Board on such matters ,and the
Board also periodically receives presentations from management directly on our cybersecurity risk management.
Our management team is responsible for assessing and managing our material risks from cybersecurity threats
and reporting on such risks to the Audit Committee. Our management team oversees efforts to prevent, detect,
mitigate, and remediate cybersecurity risks and incidents through various means, which may include threat briefings
from internal personnel and external service providers, as well as alerts and reports produced by security tools
deployed in the information technology environment.
STAAR utilizes internal personnel and external service providers to support the Company’s cybersecurity
efforts. Our Chief Information Officer (CIO) leads a team of IS professionals who have primary responsibility for
our overall cybersecurity risk management program and supervises both our internal personnel and our retained
external cybersecurity consultants. Our CIO has over two decades of experience, including experience building IT
and IS functions and teams, as well as cybersecurity programs. Our CIO holds an M.B.A. in management, has an
audit and accounting background, and serves on the SoCalCIO Board, a Southern California organization
developing and supporting local CIOs. The CIO and IS team collaborate closely with STAAR’s legal, privacy, and
internal audit functions to address cybersecurity and data privacy risks. The Company’s internal IS and data privacy
specialists have certifications from various organizations, including ISC2 (Certified Information Security Systems
Professional or CISSP), Global Information Assurance (GIAC), the Computing Technology Industry Association
(CompTIA) and International Association of Privacy Professionals (IAPP).
ITEM 2.
Properties
Our operations are conducted in leased facilities throughout the world. STAAR maintains operational and
administrative facilities in the U.S., Switzerland, and Japan. Our global administrative offices, principal
manufacturing, warehouse, and distribution facilities are located in Monrovia, California. We manufacture the raw
material for Collamer lenses in our facility in Aliso Viejo, California. STAAR also operates a technology center
housing its research and development (R&D) team and labs in Tustin, California. Our corporate headquarters,
including our executive offices, our EVO Experience Center, and additional operational facilities, are located in
Lake Forest, California. STAAR Surgical AG maintains administrative offices, warehouse and distribution facilities
in Nidau and Brügg, Switzerland. We are in the process of expanding our manufacturing capabilities for STAAR’s
ICL products in our Nidau, Switzerland facility. STAAR Japan maintains administrative offices in Tokyo and
Osaka, Japan and a distribution facility in Musashino City, in greater Tokyo, Japan. We also maintain commercial
offices in China, Germany, Spain, India, Singapore, and the U.K.
We believe our existing properties are well maintained, in good operating condition and are adequate to support
our present level of operations. We also believe that we could increase capacity as needed.

35
ITEM 3.
Legal Proceedings
See Note 13 – Commitments and Contingencies – Litigation and Claims to the Consolidated Financial
Statements in this Annual Report on Form 10-K for information about Litigation and Claims, which is hereby
incorporated by reference.
ITEM 4.
Mine Safety Disclosures
None.
PART II
ITEM 5.
Market for Registrant’s Common Equity, Related Stockholder Matters, and Issuer Purchases of
Equity Securities
Market Information
Our common stock is traded on the Nasdaq Global Market (NASDAQ) under the symbol “STAA.”
Holders
As of February 27, 2026, there were approximately 233 holders of record of our common stock. The number of
beneficial owners of our common stock is substantially greater than the number of record holders, because a large
portion of our common stock is held in street name by brokers and other nominees.
Dividends
We have not paid any cash dividends on our common stock since our inception. We currently expect to retain
any earnings for use to further develop our business and not to declare cash dividends in the foreseeable future. The
declaration and payment of any such dividends depends upon the Company’s earnings, financial condition, capital
needs, and other factors deemed relevant by the Board and may be restricted by future agreements with lenders.
Stock Performance Graph
This performance graph shall not be deemed “filed” for purposes of Section 18 of the Exchange Act or
incorporated by reference into any filing of STAAR Surgical Company under the Securities Act or the Exchange Act,
except as shall be expressly set forth by specific reference in such filing.
The following graph and table show the cumulative total stockholder return during the last five years in (i) our
common stock, (ii) the NASDAQ Composite Index and (iii) the S&P 400 Health Care Index. The graph assumes
that $100 was invested at the closing price of our common stock on the last trading day of fiscal year 2020 and all
dividends (if any) were reinvested. We have never paid dividends on our common stock and have no present plans
to do so. Stockholder returns over the indicated period should not be considered indicative of future performance.

36
Prepared by Zacks Investment Research, Inc. Used with Permission. All rights reserved.
Total Returns Index for Fiscal Years:
2020
2021
2022
2023
2024
2025
.....................
STAAR Surgical Company
$ 100.00
$ 115.25
$
61.26
$
39.39
$
30.55
$
29.78
..................
The Nasdaq Composite Index
100.00
122.18
82.43
119.22
157.76
187.09
....................
S&P 400 Health Care Index
100.00
111.35
89.02
89.48
95.30
99.76

37
Unregistered Sales of Equity Securities and Use of Proceeds
The following table summarizes the Company’s share repurchase activity for the three months ended January 2,
2026, on a monthly basis:
Period
Total Number of
Shares (or Units)
Purchased
Average Price
Paid per Share
(or Unit)
Total Number of
Shares Purchased
as Part of Publicly
Announced Plans
or Programs
Maximum
Number (or
Approximate
Dollar Value) of
Shares that may
yet to be
Purchased Under
the Plans or
Programs (in
thousands)(1)
.............
September 27 - October 24, 2025
—
$
—
—
$
23,539
.............
October 25 - November 21, 2025
—
—
—
23,539
...............
November 22 - January 2, 2026
—
—
—
23,539
.......................................................
Total
—
—
(1)
On May 16, 2025, the Company announced that its Board of Directors authorized a share repurchase program
under which the Company may repurchase up to $30 million of its outstanding common stock. During the three
months ended January 2, 2026 the Company did not purchase shares. As of January 2, 2026, approximately
$23.5 million remained available for repurchases pursuant to our share repurchase program. Under the share
repurchase program, the Company may repurchase shares in the open market, through privately negotiated
transactions, by entering into structured repurchase agreements with third parties, by making block purchases,
and/or pursuant to Rule 10b5-1 trading plans. The timing, manner, price, and amount of any repurchases under
the program will be determined by the Company in its discretion, subject to market conditions, legal
requirements, and other considerations. The Company is not obligated to repurchase any specific number of
shares, and the program may be modified, suspended, or discontinued at any time, without prior notice.
ITEM 6.
[Reserved]

38
ITEM 7.
Management’s Discussion and Analysis of Financial Condition and Results of Operations
The following Management’s Discussion and Analysis of Financial Condition and Results of Operations is
intended to promote understanding of our financial condition and results of operations. You should read the
following discussion and analysis of our financial condition and results of operations in conjunction with the
Consolidated Financial Statements and the Notes to those statements included in this Annual Report. This
discussion includes forward-looking statements that involve risks and uncertainties. Our actual results may differ
materially from those anticipated in these forward-looking statements as a result of numerous factors, including
those described in this Annual Report in Item 1A. “Risk Factors.”
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.
STAAR generates 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.
We market and sell our ICLs for refractive surgery to treat myopia (nearsightedness) as our “EVO” family of
lenses. We believe our EVO lenses are an “Evolution in Visual Freedom” designed to provide premium refractive
outcomes while optimizing patient comfort. Our EVO family of lenses includes our EVO ICL, EVO+ ICL, and
EVO Visian ICL. Our newest offering, EVO Viva, has an extended depth of focus (EDoF) optic, which is designed
to treat myopia with presbyopia (age-related loss of ability to focus). We also market and sell an ICL lens to treat
hyperopia (farsightedness), which we call our Visian ICL. We make our ICL product offerings available in multiple
models, powers and lengths, including some with toric ICL (TICL) versions to correct for astigmatism (blurred
vision). Not all of our products are currently available in all markets where we sell ICLs today.
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. Historically, the Company also manufactured and sold intraocular lenses (or
IOLs) for use in surgery to treat cataracts. As the Company has focused its business and strategy on its ICL product
offerings, we have phased out our cataract IOL product line. For the fiscal year ended January 2, 2026,
approximately 100% our net sales were generated from sales of ICLs. 
Termination of Alcon Merger Agreement
As previously disclosed, on August 4, 2025, STAAR entered into an Agreement and Plan of Merger (the
“Merger Agreement”) with Alcon Research, LLC, a Delaware limited liability company (“Alcon”), and Rascasse
Merger Sub, Inc., a Delaware corporation and a wholly owned direct subsidiary of Alcon (“Merger Sub”). The
Merger Agreement provided, among other things, that subject to the satisfaction or waiver of the conditions set forth
therein, Merger Sub will merge with and into the Company (the “Merger”), with the Company surviving the Merger
as a wholly owned subsidiary of Alcon. The Company and Alcon entered into two amendments to the Merger
Agreement, on November 7, 2025 and December 9, 2025, and the Company held a special meeting of stockholders
(the “Special Meeting”) to vote on the Merger on January 6, 2026. At the Special Meeting, the Company’s
stockholders voted against the Merger, and the Merger Agreement was terminated in accordance with its terms
effective January 6, 2026. None of the Company, Alcon or Merger Sub was required to pay any termination fee as a
result of the termination of the Merger Agreement, and the parties are responsible for their respective costs and
expenses related to the Merger Agreement and the transactions contemplated thereby. During fiscal 2025, we
incurred $17.1 million in professional fees and expenses related to the Merger, which are recorded as Merger

39
transaction and related costs on the Consolidated Statement of Operations. Following the termination of the Merger
Agreement, on January 14, 2026, STAAR entered into a letter agreement (the “Cooperation Agreement”) with
Broadwood Partners, L.P. and its affiliates (“Broadwood”), the Company’s largest stockholder. The Cooperation
Agreement provided for certain governance and leadership changes, as well as reimbursement by the Company of
approximately $7.0 million in expenses incurred by Broadwood and other stockholders in connection with their
engagement with the Company, including the Special Meeting. See Note 1 – Organization and Description of
Business and Accounting Policies – Termination of Alcon Merger Agreement and Note 19 – Subsequent Events to
the Consolidated Financial Statements for information about the Merger Agreement and the Cooperation
Agreement.
Business Environment and Factors Affecting Comparability
Given the size of the Company’s business in China relative to its net sales in the rest of the world,
macroeconomic conditions in China have a significant impact on the Company’s business, operations, and financial
results. We reported net sales of $239.4 million, $313.9 million, and $322.4 million for fiscal years 2025, 2024, and
2023, respectively. The significant decreases in net sales were primarily due to the dynamics within our business in
China where the continued sluggish economy and weak consumer consumption contributed to fluctuating demand
for ICL procedures. We incurred net losses of $80.4 million and $20.2 million for fiscal years 2025 and 2024,
respectively. Prior to fiscal 2024, we had reported over ten years of annual net sales growth, and we had delivered
net income profitability since 2018.
Aggregate net sales to our two distributors in China were $77.8 million for fiscal year 2025, compared to
$162.3 million for fiscal year 2024. China net sales for fiscal year 2025 included $27.5 million related to the
previously disclosed December 2024 ICL shipment that was subject to extended payment terms, and which was paid
in full in fiscal 2025 pursuant to such payment terms (the “December China Shipment”). As previously disclosed,
we shipped $27.5 million of ICLs in December 2024 to one of our distributors in China for which the distributor
requested extended payment terms through September 2025. Given the extended payment terms, net sales for the
shipment were not recognized by us until payments were received. As the cost of sales associated with the
December China Shipment was recognized in December 2024, the payments, when made, were recognized at 100%
gross margin in the applicable quarter.
During fiscal 2025, our distributors in China purchased fewer ICLs, as they were able to satisfy procedural
demand largely from their existing inventory. Our distributors in China have historically purchased products from us
in bulk shipments in advance of anticipated demand, which they use to satisfy orders from hospital customers based
on scheduled surgeries. During fiscal 2024, our distributors in China purchased lenses above contracted minimums
in anticipation of higher procedural volumes during what is typically a summer “high season” in China. Due to
dynamic macroeconomic conditions and other factors, the number of ICL procedures performed during the high
season and the second half of 2024 overall was lower than expected. Accordingly, our distributors in China held, as
of December 27, 2024, elevated levels of ICL product inventory. The level of inventory owned by our distributors in
China has decreased substantially since December 27, 2024, and has returned to contractual levels. As anticipated,
we reported lower China ICL sales in fiscal 2025 compared to fiscal 2024.
In April 2025, in response to the announcement of tariffs by the United States on Chinese goods, China
announced retaliatory tariffs on U.S.-origin goods. In order to mitigate potential financial exposure from such tariffs,
we negotiated and implemented consignment agreements with our two distributors in China, and we delivered
consigned inventory to China in advance of the implementation of tariffs and delivered additional consignment
inventory throughout fiscal 2025. While the tariff situation is evolving, we believe that these efforts to increase the
amount of ICLs in China reduce the Company’s tariff risk in China in the near-term. In addition, we are rapidly
ramping up our production capabilities in Switzerland to supplement our manufacturing capacity in the United
States to provide optionality under multiple tariff scenarios.
Given that we maintained consigned inventory in China in 2025, purchases by our distributors were satisfied in
part from our consigned inventory, rather than through bulk purchases. As our China distributor inventory levels
have normalized, we intend to reduce our consigned inventory levels in China going forward. We reduced our China
inventory levels in 2025, and we have taken steps to mitigate the risk of elevated inventory buildup by our
distributors, while at the same time maintaining sufficient ICL inventory in China to support quick and efficient
delivery and fulfillment for surgical procedures.
In 2025, we expanded our manufacturing capabilities for our ICL products in our Nidau, Switzerland facility.
As we ramp up ICL manufacturing in Nidau, Switzerland, our costs are expected to increase given the expense of

40
operating two sites and lower site utilization impacts cost absorption. The on-going operation of two manufacturing
sites will create pressure on gross margins. Over the longer term, as we grow revenue and align sales with
manufacturing production, we would expect our gross margin to improve. We also expect the operation of two
manufacturing sites will lead to higher inventory levels in the near-term.
During fiscal 2026, we will continue to assess appropriate inventory levels, both inventory held by us and
inventory held by our distributors. We generally keep sufficient inventory on hand to ship product immediately or
shortly after receipt of an order. In addition, our distributors hold their own inventory in-country based on forecasted
demand. During fiscal 2026, we expect to adjust our production output based on forecasted demand and optimize the
level of inventory held by us and held by our distributors.
See Item 1. “Business,” for a discussion of:
•
Operations
•
Principal Products
•
Distribution and Customers
•
Competition
•
Regulatory Matters
•
Research and Development
Strategic Imperatives for 2026
We believe we have a significant opportunity to fundamentally transform how myopia and other refractive
conditions are treated. We want to be the first choice for doctors and for patients seeking visual freedom from
wearing eyeglasses or contact lenses.
The Company is navigating market headwinds, geopolitical factors and a dynamic environment in key regions,
including China. In 2026, we are aligned around three focused priorities to allow us to advance around this goal.
Focused growth – we are focused on revenue growth in our key markets, with a strong emphasis on execution.
This includes sharpening commercial focus, prioritizing where we can win, and improving consistency across
markets. Across markets, we intend to maximize the impact of our strategic customer agreements and develop
relationships with customers that position EVO ICLs to treat refractive error more broadly.
Focused investment – we believe growth must be sustainable. In 2026, we will continue to prioritize
investments that support long-term value creation, with a clear focus on what drives results and expands profits by
investing wisely in key markets. Across our markets, we recognize the need to further educate and train ophthalmic
surgeons about our ICLs and our ICL procedure. We also plan to leverage the EVO Experience Center at our
headquarters in Lake Forest, California, to conduct additional hands-on training and education in lens-based vision
correction. In addition, we are continuing to invest in enhanced systems and tools to make ordering and fulfillment
faster and easier. In 2026, we will also continue to drive awareness of the ICL procedure to reach even more
potential patients and effectively communicate the clinical benefits of our ICLs.
Focused innovation – innovation remains central to the Company’s future. We are focused on accelerating our
innovation pipeline with rigor, prioritizing programs that deliver meaningful clinical and commercial impact. We are
driving innovation through focused development, execution with key milestones, and innovative thinking around
market needs. Our innovation pipeline footprint will be expanded in 2026 with the full launch of EVO+ in China to
allow more patients to have access to this premium, larger optic lens. We also intend to expand our product offering
with the launch of additional lens sizes to allow for greater surgeon flexibility.

41
Results of Operations
The following table sets forth the percentage of total sales represented by certain items reflected in the
Company’s Consolidated Statement of Operations for the period indicated.
Percentage of Net Sales
2025
2024
2023
......................................................................................
Net sales(1)
100.0%
100.0%
100.0%
.................................................................................
Cost of sales(1)
23.8%
23.7%
21.6%
..................................................................................
Gross profit(1)
76.2%
76.3%
78.4%
...............................................................
General and administrative
35.8%
28.6%
22.4%
.......................................................................
Selling and marketing
42.8%
37.3%
34.7%
................................................................
Research and development
16.7%
14.4%
12.5%
..................................................
Merger transaction and related costs
7.2%
0.0%
0.0%
....................................
Restructuring, impairment and related charges
12.0%
0.0%
0.0%
............................................
Total selling, general and administrative
114.5%
80.3%
69.6%
....................................................................
Operating income (loss)
(38.3)%
(4.0)%
8.8%
.....................................................................
Total other income, net
3.9%
1.0%
1.7%
.....................................................
Income (loss) before income taxes
(34.4)%
(3.0)%
10.5%
..................................................
Provision (benefit) for income taxes
(0.8)%
3.6%
3.8%
.............................................................................
Net income (loss)
(33.6)%
(6.6)%
6.7%
(1)
For fiscal 2025, amounts include $27.5 million of net sales related to December China Shipment. As the
associated cost of sales was recognized upon shipment in December 2024, these amounts were recognized at
100% gross margin for fiscal 2025.
Net Sales
The following table presents our net sales (dollars in thousands):
Percentage Change
2025
2024
2023
2025 vs.
2024
2024 vs.
2023
.................................................................
Net sales
$
239,442
$
313,901
$
322,415
(23.7)%
(2.6)%
Net sales for 2025 decreased 23.7% from 2024. Net sales for 2025 included $27.5 million of sales related to the
previously disclosed December China Shipment, of which payment was received during 2025. The composition of
our net sales is primarily related to ICL sales. Net sales also include sales of delivery system sales and normal
recurring sales adjustments such as sales return allowances, and for fiscal 2023, IOL sales. The sales decrease was
driven by decreased sales in China. The Asia Pacific (“APAC”) region, decreased 32% with ICL units down 35%.
The decrease in the APAC region was driven by decreased sales in China, partially offset by sales growth in Japan
and Korea. The Europe, Middle East and Africa (“EMEA”) region sales increased 3% with ICL unit growth up 10%,
due primarily to sales increases in our distributor markets partially offset by an increase in sales return allowances in
our distributor markets. The Americas region sales increased 14%, with ICL unit increase of 10%, due primarily to
sales growth in the U.S. Changes in foreign currency favorably impacted net sales by $2.0 million, which impacted
our Japan and EMEA markets.
Net sales for 2024 decreased 2.6% from 2023. The sales decrease was driven by the APAC region, which
decreased 6%, with ICL units down 9%. This decrease was driven by decreased sales in China, primarily related to
the $27.5 million December China Shipment, partially offset by sales growth in India, Japan and Korea. The EMEA
region sales increased 9% with ICL unit growth of 17%, due to sales growth in our distributor markets. The
Americas region sales increased 13%, with ICL unit increase of 17%, due primarily to sales growth in the U.S.
Changes in foreign currency unfavorably impacted net sales by $2.8 million, which impacted our Japan and EMEA
markets.

42
Gross Profit
The following table presents our gross profit and gross profit margin for the fiscal years presented (dollars in
thousands):
Percentage Change
2025
2024
2023
2025 vs.
2024
2024 vs.
2023
................................................
Gross profit
$
182,420
$ 239,582
$ 252,651
(23.9)%
(5.2)%
....................................
Gross profit margin
76.2%
76.3%
78.4%
Gross profit for 2025 decreased 23.9% from 2024. Gross profit margin decreased to 76.2% of revenue for 2025
compared to 76.3% of revenue for 2024, due to higher manufacturing costs per unit due to lower production volume
and increased excess and obsolete inventory reserves, offset by decreased period costs as a result of our cost
reductions implemented in the quarter ended March 28, 2025 and timing and recognition of the cost of sales
associated with the December China Shipment.
Gross profit for 2024 decreased 5.2% from 2023. Gross profit margin decreased to 76.3% of revenue for 2024
compared to 78.4% of revenue for 2023. The decrease in gross profit margin was primarily due to the recognition of
$3.9 million of cost of sales associated with our shipment of $27.5 million of ICLs to one of our distributors in
China in the quarter ended December 27, 2024, for which we did not recognize revenue due to extended payment
terms with the distributor. Gross profit margin for fiscal 2024 were also negatively impacted by period costs
associated with the expansion of the Company’s manufacturing capabilities in its Nidau, Switzerland facility, as well
as the temporary idling of its U.S. manufacturing facility during the holiday season and for facility upgrades.
General and Administrative Expense
The following table presents our general and administrative expense for the fiscal years presented (dollars in
thousands):
Percentage Change
2025
2024
2023
2025 vs.
2024
2024 vs.
2023
.....................
General and administrative expense
$ 85,783
$ 89,898
$ 72,319
(4.6)%
24.3%
................................................
Percentage of sales
35.8%
28.6%
22.4%
General and administrative expenses for 2025 decreased 4.6% from 2024, due to decreased outside services
partially offset by increased bonus and stock-based compensation expenses, salary-related and payroll tax expenses
and facilities costs.
General and administrative expenses for 2024 increased 24.3% from 2023, due to increased outside services,
facilities costs, salary-related and payroll tax expenses and bonus and stock-based compensation expenses.
Selling and Marketing Expense
The following table presents our selling and marketing expense for the fiscal years presented (dollars in
thousands):
Percentage Change
2025
2024
2023
2025 vs.
2024
2024 vs.
2023
............................
Selling and marketing expense
$
102,528
$ 116,978
$ 111,757
(12.4)%
4.7%
.............................................
Percentage of sales
42.8%
37.3%
34.7%
Selling and marketing expenses for 2025 decreased 12.4% from 2024, due to decreased advertising and
promotional activities, travel expenses and trade shows and sales meetings and as a result of costs and charges in the
prior year period associated with the opening of our new experience center, partially offset by increased bonus and
stock-based compensation expenses.
Selling and marketing expenses for 2024 increased 4.7% from 2023, due to increased salary-related payroll tax
expenses, trade shows and sales meeting expenses, travel expenses, costs and charges associated with the opening of
our new experience enter and sales commission expenses, offset by decreased advertising and promotional activities.

43
Research and Development Expense
The following table presents our research and development expense for the fiscal years presented (dollars in
thousands):
Percentage Change
2025
2024
2023
2025 vs.
2024
2024 vs.
2023
.....................
Research and development expense
$ 40,055
$ 45,317
$ 40,478
(11.6)%
12.0%
................................................
Percentage of sales
16.7%
14.4%
12.5%
Research and development expenses for 2025 decreased 11.6% from 2024 due to purchases of in-process
research and development in the prior year period related to external AI tools for measurement and lens size
selection and decreased clinical expenses associated with our U.S. post-approval clinical trials and outside services
related to regulatory and medical affairs, partially offset by increased bonus and stock-based compensation
expenses.
Research and development expenses for 2024 increased 12.0% from 2023 due to increased salary-related and
payroll tax expenses, purchases of in-process research and development related to external AI tools for measurement
and lens size selection and outside services related to medical affairs, partially offset by decreased clinical expenses
associated with our U.S. post-approval clinical trials.
Research and development expenses consist primarily of compensation and related costs for personnel
responsible for the research and development of new and existing products, quality assurance and post-market
surveillance activities, the regulatory and clinical activities required to acquire and maintain product approvals
globally and medical affairs expenses. Research and development expenses associated with the development of new
and existing products were $9.6 million, $12.8 million and $8.9 million for fiscal 2025, 2024 and 2023, respectively.
All research and development costs are expensed as incurred.
Merger Transaction and Related Costs
The following table presents professional service expenses we incurred in connection with our proposed Merger
with Alcon for the fiscal years presented (dollars in thousands):
Percentage Change
2025
2024
2023
2025 vs.
2024
2024 vs.
2023
.....................
Merger transaction and related costs
$ 17,135
$
—
$
—
—*
—*
.................................................
Percentage of sales
7.2%
0.0%
0.0%
*
Denotes change is greater than +100%.
During fiscal year 2025, we incurred costs related to our proposed Merger with Alcon, including fees and
expenses for legal, financial, communications and proxy advisory services. At the Special Meeting, the Company’s
stockholders voted against the Merger, and the Merger Agreement was terminated in accordance with its terms
effective January 6, 2026. We did not incur any merger transaction and related costs in fiscal years 2024 or 2023.
Restructuring, Impairment and Related Charges
The following table presents our restructuring, impairment and related charges for the fiscal years presented
(dollars in thousands):
Percentage Change
2025
2024
2023
2025 vs.
2024
2024 vs.
2023
.....
Restructuring, impairment and related charges
$ 28,632
$
—
$
—
—*
—*
.................................................
Percentage of sales
12.0%
0.0%
0.0%
*
Denotes change is greater than +100%.
In the first half of 2025, we took a number of steps to change our leadership team, realign our leadership
structure to better address market needs, reduce costs and discretionary spending, and better position the Company

44
to return to sustainable growth. As part of this leadership realignment and related efforts, during fiscal 2025, we
recognized costs related to severance and reduction in workforce of $12.4 million; consulting expenses of $0.9
million; impairment expenses on leasehold improvements and machinery and equipment of $7.7 million, as we will
no longer be using these assets; and impairment on real property right-of-use assets of $4.9 million, as we are
actively pursuing subleasing opportunities for two of our leased properties. In addition, we also recognized
impairment of $2.7 million during fiscal 2025, for internally developed software that we will no longer be using as
we will transition to a cloud-based software solution. The restructuring effort was substantially completed as of June
27, 2025.
Other Income, Net
The following table presents our other income, net for the fiscal years presented (dollars in thousands):
Percentage Change
2025
2024
2023
2025 vs.
2024
2024 vs.
2023
..................................................
Other income, net
$
9,450
$ 3,559
$
5,599
—*
(36.4)%
................................................
Percentage of sales
3.9%
1.0%
1.7%
*
Denotes change is greater than +100%.
Other income, net, increased for 2025 due to foreign exchange gains (primarily euro and Japanese Yen) and a
recovery of a previously impaired deposit of $1.5 million, partially offset by decreased interest income as a result of
lower balances of investments available for sale and overall lower interest rates. The change in other income, net for
2024 was due to increased foreign exchange losses (primarily Japanese Yen and euro) and lower interest income as
a result of lower balances of investments available for sale.
Other income, net generally relates to interest income earned on cash, cash equivalents and investments
available for sale, interest expense on finance lease obligations, gains or losses on foreign currency transactions, and
royalty income. The table below summarizes the year over year changes in other income, net (dollars in thousands):
Favorable (Unfavorable)
2025 vs. 2024
2024 vs. 2023
............................................................................................
Interest income, net
$
(1,317)
$
(1,075)
...............................................................................................
Foreign exchange
6,278
(1,766)
..................................................................................................
Royalty income
(508)
434
..................................................................................................................
Other
1,438
367
....................................................................
Net change in other income, net
$
5,891
$
(2,040)
Provision (Benefit) for Income Taxes
The following table presents our provision for income taxes for the fiscal years presented (in thousands):
Percentage Change
2025
2024
2023
2025 vs.
2024
2024 vs.
2023
....................
Provision (benefit) for income taxes
$ (1,815)
$ 11,156
$ 12,349
—*
(9.7)%
..................................................
Effective tax rate
2.2%
(123.2)%
36.6%
*
Denotes change is greater than +100%.
Our effective tax rates differ from the U.S. federal statutory rate of 21% for 2025, 2024 and 2023 respectively,
primarily due to the income taxes generated in foreign jurisdictions and realizability of deferred tax assets. Tax
benefits of $1.8 million generated in 2025 is mainly due to the loss recognized in the Company’s operation at
Switzerland and a favorable uncertain tax position adjustment. The Company’s operation in Switzerland was
profitable in 2024 and 2023 contributing to the majority of tax expense of $11.2 million and $12.3 million,
respectively. The Company has maintained a full valuation allowance position on its U.S. operation as of fiscal year
2025.
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

45
needs, including working capital needs, capital expenditures and contractual obligations for at least 12 months from
the issuance date of the financial statements included in this Annual Report. 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. If our anticipated future cash flow from
operating activities is insufficient to satisfy our future capital requirements in the long-term, we may need to seek
additional capital. Our financial condition at January 2, 2026, December 27, 2024 and December 29, 2023 included
the following (in thousands):
2025
2024
2023
2025 vs.
2024
2024 vs.
2023
......................................
Cash and cash equivalents
$ 153,150
$ 144,159
$ 183,038
$
8,991
$
(38,879)
................................
Investments available for sale
34,386
86,335
49,391
(51,949)
36,944
.......................................................................
Total
$ 187,536
$ 230,494
$ 232,429
$ (42,958) $
(1,935)
.........................................................
Current assets
$ 311,545
$ 367,940
$ 365,269
$ (56,395) $
2,671
....................................................
Current liabilities
$
68,504
$
70,306
$
65,039
$
(1,802) $
5,267
......................................................
Working capital
$ 243,041
$ 297,634
$ 300,230
$ (54,593) $
(2,596)
Cash and cash equivalents include cash and balances in deposits and money market accounts held at banks and
financial institutions. Our investment policy’s 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.
Our current liquidity and capital resources, as discussed above, will enable us to meet our known contractual
obligations as of January 2, 2026 (in thousands):
Payments Due by Period
Contractual Obligations
Total
1 Year
2 – 3 Years
4 – 5 Years
More than
5 Years
...................
Operating lease obligations (Note 9)*
$
48,707
$
8,194
$
14,557
$
13,323
$
12,633
....................
Pension benefit payments (Note 11)*
6,375
148
4,213
1,118
896
.................
Asset retirement obligation (Note 13)*
45
—
27
18
—
..........................
Open purchase orders (Note 13)*
18,069
17,049
1,020
—
—
.......................................................................
Total
$
73,196
$
25,391
$
19,817
$
14,459
$
13,529
*
Refer to the Notes to the Consolidated Financial Statements in this Annual Report on Form 10-K.
Overview of changes in cash and cash equivalents and other working capital accounts
The following table presents a summary of cash flows for the fiscal years presented (in thousands):
2025
2024
2023
Cash flows from:
.........................................................................
Operating activities
$
(34,230)
$
15,725
$
14,594
..........................................................................
Investing activities
46,339
(59,217)
74,347
.........................................................................
Financing activities
(4,555)
5,724
7,415
......................................................
Effect of exchange rate changes
1,437
(1,111)
202
........................................
Net change in cash and cash equivalents
8,991
(38,879)
96,558
.............................
Cash and cash equivalents, at beginning of year
144,159
183,038
86,480
.......................................
Cash and cash equivalents, at end of year
$
153,150
$
144,159
$
183,038
For 2025, cash provided by operating activities consisted of a net loss of $80.4 million and $16.3 million in
working-capital charges primarily related to the capitalization of cloud-based software and changes in inventories
and accounts receivable; partially offset by $62.5 million in non-cash items primarily related to stock-based
compensation expenses and impairment of fixed assets and operating lease right-of-use assets. For 2024, cash

46
provided by operating activities consisted of $44.9 million in non-cash items primarily related to stock-based
compensation expenses, partially offset by a $20.2 million net loss and $9.0 million in working-capital changes
primarily related to the capitalization of cloud-based software and changes in inventories, partially offset by changes
in accounts receivable. For 2023, cash provided by operating activities consisted of $37.3 million in non-cash items
primarily related to stock-based compensation expenses and $21.3 million in net income, offset by $44.0 million in
working-capital changes primarily related to changes in accounts receivable and inventories.
For 2025, cash provided by investing activities resulted from $124.1 million in proceeds from the maturity of
investments available for sale used to supplement working capital, partially offset by $75.4 million in purchases of
investments available for sale and $5.8 million in purchases of property, plant and equipment. For 2024, cash used
in investing activities resulted from $80.2 million in purchases of investments available for sale and $23.4 million in
purchases of property, plant and equipment, partially offset from proceeds from the sale or maturity of investments
available for sale of $43.1 million that was used to supplement working-capital. For 2023, cash provided by
investment activities resulted from proceeds from the sale or maturity of investments available for sale of $143.5
million that was used to supplement working-capital, partially offset by $52.3 million in purchases of investments
available for sale and $18.2 million in purchases of property, plant and equipment. Our investment in property, plant
and equipment during 2025, 2024 and 2023, was primarily due to investments in manufacturing facilities.
For 2025, cash used in financing activities of $4.6 million consisted of $6.5 million of repurchases of common
stock pursuant to our share repurchase program and $1.5 million to repurchase employee common stock for taxes
withheld, partially offset by proceeds from the exercise of stock options of $3.5 million. For 2024, cash provided by
financing activities of $5.7 million consisted primarily from the exercise of stock options of $7.4 million, partially
offset by $1.5 million to repurchase employee common stock for taxes withheld. For 2023, cash provided by
financing activities of $7.4 million consisted primarily from the exercise of stock options of $9.7 million, partially
offset by $2.1 million to repurchase employee common stock for taxes withheld.
Accounts receivable, net was $50.1 million and $77.9 million at January 2, 2026 and December 27, 2024,
respectively. Days’ Sales Outstanding (DSO) was 85 and 145 days for 2025 and 2024, respectively. As of January 2,
2026 and December 27, 2024, the Company’s China distributors accounted for 33% and 58%, respectively, of the
Company’s consolidated trade receivables. Our DSO is at a normalized level for 2025. During fiscal 2024, the
Company’s China distributors increased their purchases in anticipation of higher procedural volumes during what is
typically a summer “high season” in China. Due to dynamic macroeconomic conditions and other factors, the
number of ICL procedures performed during the high season and the second half of 2024 overall was lower than
expected. Accordingly, our distributors in China held, as of December 27, 2024, elevated levels of ICL product
inventory. Our distributor agreements typically provide for payment terms between 30 and 90 days. Our DSO was
higher in 2024, in part, due to the higher levels of purchases by our China distributors during the year and the lower
than anticipated procedural volumes.
Inventories, net was $55.5 million and $43.3 million at January 2, 2026 and December 27, 2024, respectively.
Effective in the fourth quarter of 2025, we changed our methodology for calculating Days’ Inventory on Hand
(DOH), from using actual cost of sales for the quarter to using the next quarter’s projected cost of sales. DOH was
219 and 367 days for 2025 and 2024, respectively, for finished goods, including consignment inventory. In fiscal
2023 and fiscal 2024, we increased our production and inventory to support anticipated sales growth of ICL
products and to support quick and efficient delivery and fulfillment for surgical procedures. In fiscal 2024, due to
the macroeconomic and other conditions in China, our distributors in China held, as of December 27, 2024, elevated
levels of ICL product inventory, and accordingly, we reported minimal China ICL sales in the first half of fiscal
2025. In fiscal 2025, we expanded our manufacturing capabilities for our ICL products in our Nidau, Switzerland
facility, which contributed to an increase in inventory. We also increased inventory in fiscal 2025 to supply
consignment inventory in China, to reduce the Company’s tariff risk in China in the near-term. Increasing our
inventory levels also helps mitigate risks associated with potential disruptions to our manufacturing and production
process. We intend to continue to assess appropriate inventory levels, and during fiscal 2026, we expect to adjust our
production output based on forecasted demand and optimize the level of inventory held by us and held by our
distributors.
Critical Accounting Estimates
Our accounting policies are more fully described in Note 1– Organization and Description of Business and
Accounting Policies of the Consolidated Financial Statements. As disclosed in Note 1 – Organization and
Description of Business and Accounting Policies, the preparation of financial statements in accordance with
accounting principles generally accepted in the United States of America requires management to make significant
estimates and assumptions about future events that affect the amounts reported in the financial statements and

47
accompanying notes. Actual results may differ, significantly at times, from these estimates if actual conditions differ
from our assumptions.
We believe the following discussion represents our most critical accounting estimates, which are those that are
most important to the portrayal of our financial condition and results of operations and require management’s most
difficult, subjective and complex judgments.
Sales Return Reserves
We provide allowances for sales returns such that returns are matched against the sales from which they
originated. While such allowances have historically been within our expectations, we cannot guarantee that we will
continue to experience the same return rates that we have in the past. Measurement of such returns is based on an
expected loss model which requires consideration of, among other factors, historical returns experience and
current/anticipated trends, including the need to adjust for current conditions and product lines, the entry of a
competitor, and judgments about the probable effects of relevant observable data. We consider all available
information in our quarterly assessments of the adequacy of the allowance for sales returns.
Stock-Based Compensation
We account for the issuance of stock options by estimating the fair value using the Black-Scholes pricing
model. This model’s calculations include the exercise price, the market price of shares on grant date, risk-free
interest rates, expected term of the award, expected volatility of our stock and expected dividend yield. Stock-based
compensation expense for other stock-based awards is measured at the date of grant based on the fair value of the
award, which is the closing price of our common stock on the date of grant. For those awards which contain a
performance condition, stock-based compensation expense will be recognized when it is probable that the
performance condition will be achieved, net of an estimate of pre-vesting forfeitures, over the requisite service
period based on the grant-date fair value of the stock. We reassess the probability of vesting at each reporting period
and adjust stock-based compensation expense based on our probability assessment.
Income Taxes
In evaluating our ability to recover the deferred tax assets within a jurisdiction from which they arise, we
consider all available positive and negative evidence, including scheduled reversals of deferred tax liabilities,
projected future taxable income, tax-planning strategies, and results of recent operations. In projecting future taxable
income, we begin with historical results and incorporate assumptions including overall current and projected
business and industry conditions, projected sales growth, margins, costs and income by jurisdiction, the amount of
future federal, state, and foreign pretax operating income, the reversal of temporary differences and the successful
implementation of feasible and prudent tax-planning strategies. These assumptions require significant judgment
about the forecasts of future taxable income and are consistent with the plans and estimates management uses to
manage its businesses. In evaluating the objective evidence that historical results provide, we also consider three
years of cumulative operating results. Valuation allowances, or reductions to deferred tax assets, are recognized if,
based on the weight of all the available evidence, it is more likely than not that some portion or all of the deferred
tax asset may not be realized.
Inventories
We provide estimated inventory allowances for excess, slow moving, expiring and obsolete inventory as well as
inventory whose carrying value is more than net realizable value. These reserves are based on current assessments
about future demands, market conditions and related management initiatives. If market conditions and actual
demands are less favorable than those projected by management, additional inventory write-downs may be required.
We regularly review inventory quantities on hand and record a provision for excess and obsolete inventory based
primarily on the expiration of products with a shelf life of less than four months, estimated forecasts of product
demand and production requirements for the next twelve months. Several factors may influence the realizability of
our inventories, including significant changes in demand, decisions to exit a product line, technological change, and
new product development. While such inventory losses have historically been within our expectations and the
provisions established, we cannot guarantee that we will continue to experience the same loss rates that we have in
the past.
Employee Defined Benefit Plans - Pension
The liabilities and annual income or expense of our pension plans are determined using methodologies that
involve several actuarial assumptions, the most significant of which are the discount rate, expected years of service,

48
salary increases and the expected long-term rate of asset return. The fair values of plan assets are determined based
on prevailing market prices.
Foreign Exchange Rate Impact
Management does not believe that the fluctuation in the value of the dollar in relation to the currencies of its
suppliers or customers in the last three fiscal years has materially adversely affected our ability to purchase or sell
products at agreed upon prices. However, currency exchange fluctuations do impact our net sales and results of
operations as discussed under Item 7A. Quantitative and Qualitative Disclosures About Market Risk. No assurance
can be given that adverse currency exchange rate fluctuations will not occur in the future, which could significantly
affect our operating results. We do not currently hedge transactions to offset changes in foreign currency.
Inflation
Management believes inflation has not had a significant impact on our net sales and revenues and on income
from continuing operations during the past three years.
Recent Accounting Pronouncements
See “Part II. Item 8. “Financial Statements and Supplementary Data – Note 1 – Organization and Description
of Business and Accounting Policies – Recent Accounting Pronouncements Not Yet Adopted” of this Annual Report
on Form 10-K.
ITEM 7A.
Quantitative and Qualitative Disclosures About Market Risk
In the normal course of business, our operations are exposed to risks associated with fluctuations in interest
rates and foreign currency exchange rates. The Company manages its risks based on management’s judgment of the
appropriate trade-off between risks, opportunity, and costs and does not generally enter into interest rate or foreign
exchange rate hedge instruments.
Foreign Currency Exchange Risk
Fluctuations in the rate of exchange between the U.S. dollar and foreign currencies in which we transact
business could adversely affect our financial results. Activities outside the U.S. accounted for approximately 91% of
our total sales during fiscal 2025. The results of operations and the financial position of our Japanese subsidiary are
reported in Japanese yen and then translated into U.S. dollars at the applicable exchange rates for inclusion in our
Consolidated Financial Statements, exposing us to translation risk. In addition, we are exposed to transaction risk
because we incur some of our sales and expenses in currencies other than the U.S. dollar. Our most significant
currency exposures are to the Japanese yen, the euro, and the Swiss franc, and the exchange rates between these
currencies and the U.S. dollar may fluctuate substantially. We do not actively hedge our exposure to currency rate
fluctuations.
As our international subsidiaries operate in and are net recipients of currencies other than the U.S. dollar, our
sales benefit from a weaker dollar and are reduced by a stronger dollar relative to major currencies worldwide
(primarily, the euro and the Japanese yen). Accordingly, changes in exchange rates, and particularly the
strengthening of the U.S. dollar, may negatively affect our consolidated sales and gross profit as expressed in U.S.
dollars. Fluctuations during any given reporting period result in the re-measurement of our foreign currency
denominated cash, receivables, and payables, generating currency transaction gains or losses and are reported in
total other income, net in our Consolidated Statements of Operations. In the normal course of business, we also face
risks that are either non-financial or non-quantifiable. Such risks include those set forth in Item 1A. “Risk Factors.”
We price some of our products in U.S. dollars, and thus changes in exchange rates can make our products more
expensive in some offshore markets and reduce our sales. Our sales in China, for example, are denominated in U.S.
dollars. Our China distributors, who sell into China and Hong Kong, collectively accounted for approximately 32%
of our consolidated net sales during fiscal 2025. If the U.S. dollar strengthens relative to the Chinese yuan, it
becomes more expensive for our China distributor to purchase ICLs and to pay prior accounts receivable balances.
In the event of significant foreign exchange volatility in the future, the Company may extend or modify payment or
other terms with its customers to mitigate the potential impact on our sales.

49
ITEM 8.
Financial Statements and Supplementary Data
Financial Statements and the Report of Independent Registered Public Accounting Firm are filed with this
Annual Report on Form 10-K in a separate section following Part IV, as shown on the index under Item 15 of this
Annual Report.
ITEM 9.
Changes in and Disagreements with Accountants on Accounting and Financial Disclosure
None.
ITEM 9A.
Controls and Procedures
Attached as exhibits to this Annual Report on Form 10-K are certifications of STAAR’s Interim Co-Chief
Executive Officers, our principal executive officers (PEOs), and Chief Financial Officer, our principal financial
officer (PFO), which are required to be made by Rule 13a-14 or Rule 15d-14 of the Securities Exchange Act of
1934, as amended (the Exchange Act). This item includes information concerning the controls and controls
evaluation referred to in the certifications. This item should be read in conjunction with the certifications for a more
complete understanding of the certifications.
Evaluation of Disclosure Controls and Procedures
We maintain disclosure controls and procedures that are designed to ensure that information required to be
disclosed in our reports filed or submitted under the Exchange Act is recorded, processed, summarized and reported
within the time periods specified in the SEC’s rules and forms, and that such information is accumulated and
communicated to our management, including our PEOs and PFO, as appropriate, to allow timely decisions regarding
required disclosure. In designing and evaluating the disclosure controls and procedures, management recognizes that
any controls and procedures, no matter how well designed and operated, can only provide reasonable assurance of
achieving the desired control objectives, and in reaching a reasonable level of assurance, management necessarily is
required to apply its judgment in evaluating the cost-benefit relationship of possible controls and procedures.
As of the end of the period covered by this Annual Report, our management carried out an evaluation, with the
participation of our PEOs and PFO, of the effectiveness of the disclosure controls and procedures of the Company.
Based on that evaluation, our PEOs and PFO concluded, as of January 2, 2026, that our disclosure controls and
procedures were effective at the reasonable assurance level.
Changes in Internal Control over Financial Reporting
There was no change during the fiscal quarter ended January 2, 2026 that has materially affected, or is
reasonably likely to materially affect, our internal control over financial reporting.
Management’s Annual Report on Internal Control over Financial Reporting
The Company’s management, including our PEOs and PFO, is responsible for establishing and maintaining
adequate internal control over financial reporting (as such term is defined in Exchange Act Rule 13a-15(f) and 15d-
15(f)) for the Company. The Company’s internal control over financial reporting is designed to provide reasonable
assurance regarding the reliability of financial reporting and the preparation of consolidated financial statements in
accordance with generally accepted accounting principles in the United States of America.
Because of its inherent limitations, a system of internal control over financial reporting may not prevent or
detect misstatements and can provide only reasonable, not absolute assurance, that its objectives will be achieved.
Further, because of changing conditions, effectiveness of internal control over financial reporting may vary over
time. The Company’s processes contain self-monitoring mechanisms, and actions are taken to correct deficiencies as
they are identified.
Management has assessed the effectiveness of the Company’s internal control over financial reporting as of
January 2, 2026, based on the criteria for effective internal control described in Internal Control — Integrated
Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission. Based on
its assessment, management concluded that the Company’s internal control over financial reporting was effective as
of January 2, 2026.
The report of BDO USA, P.C., our independent registered public accounting firm, regarding its audit of the
Company’s internal control over financial reporting follows below.

50
Report of Independent Registered Public Accounting Firm
Shareholders and Board of Directors
STAAR Surgical Company
Lake Forest, California
Opinion on Internal Control over Financial Reporting
We have audited STAAR Surgical Company’s (the “Company’s”) internal control over financial reporting as of
January 2, 2026, based on criteria established in Internal Control – Integrated Framework (2013) issued by the
Committee of Sponsoring Organizations of the Treadway Commission (the “COSO criteria”). In our opinion, the
Company maintained, in all material respects, effective internal control over financial reporting as of January 2,
2026, based on the COSO criteria.
We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board
(United States) (“PCAOB”), the consolidated balance sheets of the Company as of January 2, 2026 and
December 27, 2024, the related consolidated statements of operations, comprehensive income (loss), stockholders’
equity, and cash flows for each of the three fiscal years in the period ended January 2, 2026, and the related notes
and financial statement schedule listed in the accompanying index and our report dated March 3, 2026 expressed an
unqualified opinion thereon.
Basis for Opinion
The Company’s management is responsible for maintaining effective internal control over financial reporting
and for its assessment of the effectiveness of internal control over financial reporting, included in the accompanying
Item 9A, Management’s Annual Report on Internal Control over Financial Reporting. Our responsibility is to
express an opinion on the Company’s internal control over financial reporting based on our audit. We are a public
accounting firm registered with the PCAOB and are required to be independent with respect to the Company in
accordance with U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange
Commission and the PCAOB.
We conducted our audit of internal control over financial reporting in accordance with the standards of the
PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether
effective internal control over financial reporting was maintained in all material respects. Our audit included
obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness
exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed
risk. Our audit also included performing such other procedures as we considered necessary in the circumstances. We
believe that our audit provides a reasonable basis for our opinion.
Definition and Limitations of Internal Control over Financial Reporting
A company’s internal control over financial reporting is a process designed 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. A company’s internal control over financial reporting
includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail,
accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable
assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance
with generally accepted accounting principles, and that receipts and expenditures of the company are being made
only in accordance with authorizations of management and directors of the company; and (3) provide reasonable
assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s
assets that could have a material effect on the financial statements.
Because of its inherent limitations, internal control over financial reporting may not prevent or detect
misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that
controls may become inadequate because of changes in conditions, or that the degree of compliance with the
policies or procedures may deteriorate.
/s/ BDO USA, P.C.
Los Angeles, California
March 3, 2026

51
ITEM 9B.
Other Information
(c) Trading Plans
During the quarter ended January 2, 2026, no director or officer (as defined in Rule 16a-1(f) under the
Exchange Act) 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 9C.
Disclosure Regarding Foreign Jurisdictions that Prevent Inspections
None.
PART III
Certain information required by Part III is omitted from this Annual Report because the Company will file a
definitive proxy statement within 120 days after the close of its fiscal year ended January 2, 2026, pursuant to
Regulation 14A (the “Proxy Statement”) for its 2026 annual meeting of stockholders, and certain information
included in the Proxy Statement is incorporated herein by reference.
ITEM 10.
Directors, Executive Officers and Corporate Governance
Information regarding our executive officers will be set forth in the Proxy Statement under the caption
“Information Regarding Executive Officers,” which is incorporated herein by reference and made a part hereof in
response to the information required by Item 10.
Information regarding our directors and certain corporate governance and other matters will be set forth in the
Proxy Statement under the captions “Proposal No. 1: Election of Directors,” “Information Regarding Director
Nominees,” and “Corporate Governance,” which is incorporated herein by reference and made a part hereof in
response to the information required by Item 10.
The Corporate Governance Guidelines adopted by our Board of Directors, as well as the charters of the Audit
Committee, the Nominating and Governance Committee and the Compensation Committee of the Board are each
posted in the Investors section of our website, www.staar.com, under the Investor Resources & FAQs tab, as a
Corporate Governance Document.
We have adopted a Code of Business Conduct and Ethics that applies to all our directors, officers, and
employees, including our Principal Executive Officers, Principal Financial Officer, Principal Accounting Officer, or
Controller, or persons performing similar functions. The Code of Business Conduct and Ethics is posted in the
Investors section of our website, www.staar.com, under the Investor Resources & FAQs tab, as a Corporate
Governance Document. We intend to disclose any future amendments to certain provisions of the Code of Business
Conduct and Ethics, or waivers thereunder granted to executive officers and directors, on our website within four
business days of such amendment or waiver.
We have adopted an Insider Trading Policy that governs the purchase, sale, and other dispositions of our
securities by directors, officers and employees, as well as by the Company itself. We believe our policies and
procedures are reasonably designed to promote compliance with insider trading laws, rules and regulations and
applicable listing standards applicable to us. The Insider Trading Policy is posted in the Investors section of our
website, www.staar.com, under the Investor Resources & FAQs tab, as a Corporate Governance Document, and a
copy is filed with the Company’s 2025 Annual Report on Form 10-K as Exhibit 19.1.
ITEM 11.
Executive Compensation
Information regarding compensation of our executives and directors will be set forth in the Proxy Statement
under the captions “Compensation Discussion and Analysis,” “Compensation Tables,” and “Compensation of
Directors,” which is incorporated herein by reference and made a part hereof in response to the information required
by Item 11.

52
ITEM 12.
Security Ownership of Certain Beneficial Owners and Management and Related Stockholder
Matters
Information regarding security ownership of certain beneficial owners and management will be set forth in the
Proxy Statement under the caption “Security Ownership of Principal Shareholders and Management,” which is
incorporated herein by reference and made a part hereof in response to the information required by Item 12.
Information regarding securities authorized for issuance under equity compensation plans will be set forth in the
Proxy Statement under the caption “Equity Compensation Plan Information,” which is incorporated herein by
reference and made a part hereof in response to the information required by Item 12.
ITEM 13.
Certain Relationships and Related Transactions, and Director Independence
Information regarding certain relationships and related transactions and director independence will be set forth
in the Proxy Statement under the captions “Review of Related Person Transactions,” and “Corporate Governance,”
which is incorporated herein by reference and made a part hereof in response to the information required by Item 13.
ITEM 14.
Principal Accounting Fees and Services
Information regarding principal accounting fees and services will be set forth in the Proxy Statement under the
caption “Proposal No. 2: Ratification of Independent Registered Public Accounting Firm - Principal Accountant
Fees and Services,” which is incorporated herein by reference and made a part hereof in response to the information
required by Item 14.
PART IV
ITEM 15.
Exhibits and Financial Statement Schedules
We have filed the following documents as part of this Annual Report on Form 10-K:
Page
(1)
Consolidated Financial Statements
......................................................................
Report of Independent Registered Public Accounting Firm
F-2
......................................................................................................................
Consolidated Balance Sheets
F-4
......................................................................................................
Consolidated Statements of Operations
F-5
......................................................................
Consolidated Statements of Comprehensive Income (Loss)
F-6
.....................................................................................
Consolidated Statements of Stockholders’ Equity
F-7
....................................................................................................
Consolidated Statements of Cash Flows
F-8
..............................................................................................
Notes to Consolidated Financial Statements
F-9
(2)
Schedules required by Regulation S-X are filed as an exhibit to this report
........................................................
II. Schedule II — Valuation and Qualifying Accounts and Reserves
F-43
All other schedules have been omitted because they are not required, not applicable, or the required information
is otherwise included.
(3)
Index to Exhibits
Exhibit
Number
Description
2.1
Agreement and Plan of Merger, dated as of August 4, 2025, by and among STAAR Surgical
Company, Alcon Research, LLC and Rascasse Merger Sub, Inc. (incorporated by reference to
Exhibit 2.1 of the Company’s Current Report on Form 8-K as filed with the Commission on August
5, 2025).
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).

53
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).
4.2
Description of the Registrant’s Securities (incorporated by reference to Exhibit 4.3 to the
Company’s Annual Report on Form 10-K, for the year ended January 3, 2020, as filed with the
Commission on February 26, 2020).
10.1#
Form of Indemnity Agreement between the Company and certain officers and directors
(incorporated by reference to Exhibit 10.38 to the Company’s Quarterly Report on Form 10-Q, for
the period ended June 29, 2018, as filed with the Commission on August 1, 2018).
10.2#
Form of Severance Agreement between the Company and certain executives (incorporated by
reference to Exhibit 10.31 to the Company’s Quarterly Report on Form 10-Q, for the period ended
March 31, 2023, as filed with the Commission on May 3, 2023).
10.3#
Form of Executive Change in Control Agreement between the Company and certain officers
(incorporated by Reference to Exhibit 10.3 to the Company’s Annual Report on Form 10-K, for the
year ended December 29, 2023, as filed with the Commission on February 27, 2024).
10.4#
Letter of the Company dated September 11, 2017 to Scott Barnes, Chief Medical Officer, regarding
compensation (incorporated by reference to Exhibit 10.36 to the Company’s Annual Report on
Form 10-K, for the year ended January 3, 2020, as filed with the Commission on February 26,
2020).
10.5#
Letter of the Company dated March 24, 2023 to Magda Michna, Chief Clinical, Regulatory and
Medical Affairs Officer, regarding compensation (incorporated by reference to Exhibit 10.30 to the
Company’s Quarterly Report on Form 10-Q, for the period ended March 31, 2023, as filed with the
Commission on May 3, 2023).
10.6#
Letter of the Company dated March 24, 2023 to Warren Foust, Chief Operating Officer, regarding
compensation (incorporated by reference to Exhibit 10.1 to the Company’s Current Report on Form
8-K as filed with the Commission on March 29, 2023).
10.7#
Letter of the Company, dated October 24, 2023 to Nathaniel Sisitsky, General Counsel, regarding
compensation (incorporated by Reference to Exhibit 10.13 to the Company’s Annual Report on
Form 10-K, for the year ended December 29, 2023, as filed with the Commission on February 27,
2024).
10.8#
Employment Agreement, effective February 26, 2025, by and between the Company and Stephen C.
Farrell (incorporated by reference to Exhibit 10.1 to the Company’s Current Report on Form 8-K as
filed with the Commission on February 26, 2025).
10.9#
Consulting Agreement, effective February 26, 2025, by and between the Company and Thomas G.
Frinzi (incorporated by reference to Exhibit 10.2 to the Company’s Current Report on Form 8-K as
filed with the Commission on February 26, 2025).
10.10#
Letter of the Company dated June 25, 2025 to Deborah Andrews, Chief Financial Officer, regarding
employment and compensation (incorporated by reference to Exhibit 10.1 to the Company’s
Quarterly Report on Form 10-Q, for the period ended June 27, 2025, as filed with the Commission
on August 6, 2025).
10.11#
Consulting Agreement dated April 24, 2025 between the Company and Wei Jiang (incorporated by
reference to Exhibit 10.1 to the Company’s Quarterly Report on Form 10-Q, for the period ended
June 27, 2025, as filed with the Commission on August 6, 2025).
10.12
Form of Distributorship Agreement (incorporated by reference to Exhibit 10.37 to the Company’s
Quarterly Report on Form 10-Q, for the period ended June 29, 2018, as filed with the Commission
on August 1, 2018).
10.13
Standard Industrial/Commercial Multi-Tenant Lease-Gross dated April 5, 2000 entered into
between the Company and Kilroy Realty, L.P. (incorporated by reference to Exhibit 10.46 to the
Company’s Annual Report on Form 10-K, for the year ended December 29, 2000, as filed with the
Commission on March 29, 2001).

54
10.14
Tenth Amendment of Lease dated May 13, 2022, by and between the Company and Oxford
Spectrum Wilson LLC (incorporated by Reference to Exhibit 10.20 to the Company’s Annual
Report on Form 10-K, for the year ended December 29, 2023, as filed with the Commission on
February 27, 2024).
10.15
Tenancy Agreement dated June 13, 2019 between Einfache Gesellschaft Calderari & Schwab. and
STAAR Surgical AG (incorporated by reference to Exhibit 10.37 to the Company’s Quarterly
Report on Form 10-Q, for the period ended June 28, 2019, as filed with the Commission on July 31,
2019).
10.16
Lease Agreement entered into on September 14, 2020 between Calderari & Schwab and STAAR
Surgical AG (incorporated by reference to Exhibit 10.39 to the Company’s Current Report on Form
8-K as filed with the Commission on September 14, 2020).
10.17
Lease Agreement dated August 10, 2017 by and between the Company and 2000 Gold L.P.
(incorporated by reference to Exhibit 10.46 to the Company’s Quarterly Report on Form 10-Q, for
the period ended September 29, 2017, as filed with the Commission on November 8, 2017).
10.18
First Amendment to Lease Agreement dated March 23, 2023 between the Company and 2000 Gold
L.P. (incorporated by Reference to Exhibit 10.24 to the Company’s Annual Report on Form 10-K,
for the year ended December 29, 2023, as filed with the Commission on February 27, 2024).
10.19
Lease Agreement commencing dated March 19, 2018 between the Company and Bukewihge
Properties, LLC (incorporated by reference to Exhibit 10.36 to the Company’s Quarterly Report on
Form 10-Q, for the period ended March 30, 2018, as filed with the Commission on May 2, 2018).
10.20
First Amendment to Lease Agreement dated August 11, 2022 between the Company and
Bukewihge Properties, LLC (incorporated by reference to Exhibit 10.27 to the Company’s Annual
Report on Form 10-K, for the year ended December 30, 2022, as filed with the Commission on
February 23, 2023).
10.21
Second Amendment to Lease Agreement dated November 15, 2023 between the Company and
Bukewihge Properties, LLC (incorporated by Reference to Exhibit 10.27 to the Company’s Annual
Report on Form 10-K, for the year ended December 29, 2023, as filed with the Commission on
February 27, 2024).
10.22#
STAAR Surgical Company Amended and Restated Omnibus Equity Incentive Plan (incorporated by
reference to Exhibit 10.1 to the Company’s Current Report on Form 8-K as filed with the
Commission on June 21, 2024).
10.23#
Amendment No. 1 to the STAAR Surgical Company Amended and Restated Omnibus Equity
Incentive Plan (incorporated by reference to Exhibit 10.2 to the Company’s Current Report on Form
8-K as filed with the Commission on June 21, 2024).
10.24#
Form of Option Grant and Stock Option Agreement for employees (incorporated by reference to
Exhibit 10.35 to the Company’s Annual Report on Form 10-K, for the year ended December 30,
2016, as filed with the Commission on March 2, 2017).
10.25#
Form of Option Grant and Stock Option Agreement for Non-Employee Directors (incorporated by
reference to Exhibit 10.36 to the Company’s Annual Report on Form 10-K, for the year ended
December 30, 2016, as filed with the Commission on March 2, 2017).
10.26#
Form of Restricted Stock Unit Grant and Agreement (incorporated by reference to Exhibit 10.37 to
the Company’s Annual Report on Form 10-K, for the year ended December 30, 2016, as filed with
the Commission on March 2, 2017).
10.27#
Form of Restricted Stock Award Grant and Restricted Stock Award Agreement (incorporated by
reference to Exhibit 10.38 to the Company’s Annual Report on Form 10-K, for the year ended
December 30, 2016, as filed with the Commission on March 2, 2017).
10.28#
Form of Performance Stock Unit Grant and Agreement (incorporated by reference to Exhibit 10.3 to
the Company’s Quarterly Report on Form 10-Q, for the period ended March 28, 2025, as filed with
the Commission on May 7, 2025).

55
10.29
Cooperation Agreement dated January 14, 2026 between the Company and Broadwood Partners,
L.P. (incorporated by reference to Exhibit 10.1 to the Company’s Current Report on Form 8-K as
filed with the Commission on January 15, 2026).
10.30*#
Separation and Consulting Agreement dated January 14, 2026 between the Company and Stephen
C. Farrell.
10.31*#
Interim Co-CEO Letter Agreement dated February 1, 2026 between the Company and Warren
Foust.
10.32*#
Separation Agreement dated February 4, 2026 between the Company and Nathaniel Sisitsky.
10.33*#
Consulting Agreement dated February 4, 2026 between the Company and Nathaniel Sisitsky.
19.1
Insider Trading Policy (incorporated by reference to Exhibit 19.1 to the Company’s Annual Report
on Form 10-K, for the year ended December 27, 2024, as filed with the Commission on February
21, 2025).
21.1*
List of Subsidiaries.
23.1*
Consent of BDO USA, P.C.
31.1*
Certification 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*
Certification 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.
97.1
Compensation Recoupment (Clawback) Policy (incorporated by Reference to Exhibit 97.1 to the
Company’s Annual Report on Form 10-K, for the year ended December 29, 2023, as filed with the
Commission on February 27, 2024).
101.INS*
Inline XBRL Instance Document – the instance document does not appear in the Interactive Data
File because its XBRL tags are embedded within the Inline XBRL document.
101.SCH*
Inline XBRL Taxonomy Extension Schema With Embedded Linked Documents.
104
The cover page from the Company’s Annual Report on Form 10-K for the fiscal year ended
January 2, 2026, has been formatted in Inline XBRL with applicable taxonomy extension
information contained in Exhibit 101.
#
Management contract or compensatory plan, contract or arrangement.
*
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.
ITEM 16.
Form 10-K Summary
None.

56
SIGNATURES
Pursuant to the requirements of Section 13 or 15(d) 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
Date:  March 3, 2026
By: /s/  WARREN FOUST
Warren Foust
Interim Co-Chief Executive Officer,
President and Chief Operating Officer
(principal executive officer)
Date:  March 3, 2026
/s/  DEBORAH ANDREWS
Deborah Andrews
Interim Co-Chief Executive Officer and Chief
Financial Officer
(principal executive officer and principal
financial officer)
Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on the dates indicated.
Name
Title
Date
/s/  WARREN FOUST
Interim Co-Chief Executive Officer, President
and Chief Operating Officer
March 3, 2026
Warren Foust
(principal executive officer)
/s/  DEBORAH ANDREWS
Interim Co-Chief Executive Officer and Chief
Financial Officer
March 3, 2026
Deborah Andrews
(principal executive officer, principal
accounting officer and principal financial
officer)
/s/  NEAL C. BRADSHER
Director
March 3, 2026
Neal C. Bradsher
/s/  ARTHER C. BUTCHER
Director
March 3, 2026
Arthur C. Butcher
/s/  WEI JIANG
Director
March 3, 2026
Wei Jiang
/s/  RICHARD T. LEBUHN
Director
March 3, 2026
Richard T. LeBuhn
/s/  LOUIS E. SILVERMAN
Director
March 3, 2026
Louis E. Silverman
/s/  CHRISTOPHER MIN FANG
WANG
Director
March 3, 2026
Christopher Min Fang Wang
/s/  LILIAN ZHOU
Director
March 3, 2026
Lilian Zhou

F-1
STAAR SURGICAL COMPANY AND SUBSIDIARIES
CONSOLIDATED FINANCIAL STATEMENTS
Years Ended January 2, 2026, December 27, 2024 and December 29, 2023
TABLE OF CONTENTS
....................................................................................................................
Report of Independent Registered Public Accounting Firm (BDO USA, P.C.; Los Angeles,
California; PCAOB ID#243)
F-2
..................................................
Consolidated Balance Sheets at January 2, 2026 and December 27, 2024
F-4
............................................................................................................................
Consolidated Statements of Operations for the years ended January 2, 2026, December 27, 2024
and December 29, 2023
F-5
............................................................................................
Consolidated Statements of Comprehensive Income (Loss) for the years ended January 2, 2026,
December 27, 2024 and December 29, 2023
F-6
............................................................................................
Consolidated Statements of Stockholders’ Equity for the years ended January 2, 2026,
December 27, 2024 and December 29, 2023
F-7
............................................................................................................................
Consolidated Statements of Cash Flows for the years ended January 2, 2026, December 27, 2024
and December 29, 2023
F-8
................................................................................................
Notes to Consolidated Financial Statements
F-9
....................................................................
Schedule II Valuation and Qualifying Accounts and Reserves
F-43

F-2
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
Shareholders and Board of Directors
STAAR Surgical Company
Lake Forest, California
Opinion on the Consolidated Financial Statements
We have audited the accompanying consolidated balance sheets of STAAR Surgical Company (the
“Company”) as of January 2, 2026 and December 27, 2024, the related consolidated statements of operations,
comprehensive income (loss), stockholders’ equity, and cash flows for each of the three fiscal years in the period
ended January 2, 2026, and the related notes and financial statement schedule listed in the accompanying index
(collectively referred to as the “consolidated financial statements”). In our opinion, the consolidated financial
statements present fairly, in all material respects, the financial position of the Company at January 2, 2026 and
December 27, 2024, and the results of its operations and its cash flows for each of the three fiscal years in the period
ended January 2, 2026, in conformity with accounting principles generally accepted in the United States of America.
We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board
(United States) (“PCAOB”), the Company’s internal control over financial reporting as of January 2, 2026, based on
criteria established in Internal Control – Integrated Framework (2013) issued by the Committee of Sponsoring
Organizations of the Treadway Commission (“COSO”) and our report dated March 3, 2026 expressed an
unqualified opinion thereon.
Basis for Opinion
These consolidated financial statements are the responsibility of the Company’s management. Our
responsibility is to express an opinion on the Company’s consolidated financial statements based on our audits. We
are a public accounting firm registered with the PCAOB and are required to be independent with respect to the
Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the
Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan
and perform the audit to obtain reasonable assurance about whether the consolidated financial statements are free of
material misstatement, whether due to error or fraud.
Our audits included performing procedures to assess the risks of material misstatement of the consolidated
financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such
procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the consolidated
financial statements. Our audits also included evaluating the accounting principles used and significant estimates
made by management, as well as evaluating the overall presentation of the consolidated financial statements. We
believe that our audits provide a reasonable basis for our opinion.
Critical Audit Matter
The critical audit matter communicated below is a matter arising from the current period audit of the
consolidated financial statements that was communicated or required to be communicated to the audit committee
and that: (1) relates to accounts or disclosures that are material to the consolidated financial statements and (2)
involved our especially challenging, subjective, or complex judgments. The communication of the critical audit
matter does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are
not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on
the accounts or disclosures to which it relates.
Income Tax Provision
As described in Notes 1 and 10 to the consolidated financial statements, the Company operates in multiple
international markets and is subject to income taxes in the U.S. and numerous foreign jurisdictions. The tax
provision is based on management’s understanding of current enacted tax laws and tax rates of each tax jurisdiction
with consideration of intercompany transactions across multiple tax jurisdictions.

F-3
We identified the accounting for the Company’s income tax provision as a critical audit matter due to the
complexity involved in:  (i) the application of relevant tax laws and regulations in calculating domestic taxable
income and domestic deferred tax balances and (ii) the application of transfer pricing guidelines to various
intercompany transactions. Auditing these elements required challenging auditor judgment and an increased extent
of audit effort, including the use of income tax professionals and professionals with knowledge and skills in transfer
pricing.
The primary procedures we performed to address this critical audit matter included:
•
Testing the completeness and accuracy of the underlying data used to determine domestic taxable
income, domestic deferred tax balances and transfer pricing adjustments.
•
Utilizing income tax professionals to assist in evaluating management’s application of relevant
domestic tax laws, enacted tax rates and regulations in calculating domestic taxable income and
domestic deferred tax balances.
•
Utilizing professionals with knowledge and skills in transfer pricing to assist in evaluating
management’s application of the transfer pricing guidelines to various intercompany transactions.
/s/ BDO USA, P.C.
We have served as the Company's auditor since 1993.
Los Angeles, California
March 3, 2026

F-4
STAAR SURGICAL COMPANY AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
January 2, 2026 and December 27, 2024
(In thousands, except par value amounts)
2025
2024
ASSETS
Current assets:
............................................................................
Cash and cash equivalents
$
153,150
$
144,159
.............
Investments available for sale (amortized cost basis of $34,385 and
$86,346 at January 2, 2026 and December 27, 2024, respectively)
34,386
86,335
......................
Accounts receivable trade, net of allowance for credit losses of $83 and
$32 at January 2, 2026 and December 27, 2024, respectively
50,064
77,897
..............................................................................................
Inventories, net
55,496
43,305
............................................
Prepayments, deposits and other current assets
18,449
16,244
...................................................................................
Total current assets
311,545
367,940
...................................................................
Property, plant and equipment, net
73,323
84,889
................................................................
Finance lease right-of-use assets, net
—
37
............................................................
Operating lease right-of-use assets, net
29,609
36,850
........................................................................................
Cloud-based software
30,700
15,763
...........................................................................................................
Goodwill
1,786
1,786
......................................................................................
Deferred income taxes
3,365
788
.......................................................................................................
Other assets
1,350
1,471
................................................................................................
Total assets
$
451,678
$
509,524
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
..........................................................................................
Accounts payable
$
11,574
$
16,704
..................................................................
Obligations under finance leases
—
42
...............................................................
Obligations under operating leases
5,872
3,894
...........................................................................
Allowance for sales returns
10,199
6,579
.................................................................................
Other current liabilities
40,859
43,087
..............................................................................
Total current liabilities
68,504
70,306
...................................................................
Obligations under operating leases
32,481
34,807
......................................................................................
Deferred income taxes
—
297
.............................................................................
Asset retirement obligations
45
42
.....................................................................................................
Deferred rent
89
—
................................................................................................
Pension liability
6,375
6,737
..........................................................................................
Total liabilities
107,494
112,189
Commitments and contingencies (Note 13)
Stockholders’ equity:
............................
Common stock, $0.01 par value; 60,000 shares authorized: 49,779 shares
issued and 49,403 shares outstanding at January 2, 2026 and 49,294 shares
issued and outstanding at December 27, 2024, respectively
498
493
.................................................................................
Additional paid-in capital
504,682
471,449
.......................................................................................................
Treasury stock, 376 and 0 shares at January 2, 2026 and December 27, 2024,
respectively
(6,461)
—
............................................................
Accumulated other comprehensive loss
(6,511)
(7,031)
..........................................................................................
Accumulated deficit
(148,024)
(67,576)
.............................................................................
Total stockholders’ equity
344,184
397,335
..................................................
Total liabilities and stockholders’ equity
$
451,678
$
509,524
The accompanying notes are an integral part of these consolidated financial statements.

F-5
STAAR SURGICAL COMPANY AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
Years Ended January 2, 2026, December 27, 2024 and December 29, 2023
(In thousands, except per share amounts)
2025
2024
2023
..........................................................................................
Net sales
$
239,442
$
313,901
$
322,415
....................................................................................
Cost of sales
57,022
74,319
69,764
.....................................................................................
Gross profit
182,420
239,582
252,651
Selling, general and administrative expenses:
.........................................................
General and administrative
85,783
89,898
72,319
.................................................................
Selling and marketing
102,528
116,978
111,757
.........................................................
Research and development
40,055
45,317
40,478
..........................................
Merger transaction and related costs
17,135
—
—
..........................
Restructuring, impairment and related charges
28,632
—
—
................
Total selling, general and administrative expenses
274,133
252,193
224,554
..........................................................
Operating income (loss)
(91,713)
(12,611)
28,097
Other income, net:
.....................................................................
Interest income, net
4,594
5,911
6,986
..............................
Gain (loss) on foreign currency transactions
2,603
(3,675)
(1,909)
...........................................................................
Royalty income
—
508
74
........................................................................
Other income, net
2,253
815
448
...........................................................
Total other income, net
9,450
3,559
5,599
.................................................
Income (loss) before income taxes
(82,263)
(9,052)
33,696
...............................................
Provision (benefit) for income taxes
(1,815)
11,156
12,349
............................................................................
Net income (loss)
$
(80,448)
$
(20,208)
$
21,347
Net income (loss) per share:
...........................................................................................
Basic
$
(1.62)
$
(0.41)
$
0.44
........................................................................................
Diluted
$
(1.62)
$
(0.41)
$
0.43
Weighted average shares outstanding:
...........................................................................................
Basic
49,568
49,125
48,523
........................................................................................
Diluted
49,568
49,125
49,427
The accompanying notes are an integral part of these consolidated financial statements.

F-6
STAAR SURGICAL COMPANY AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
Years Ended January 2, 2026, December 27, 2024 and December 29, 2023
(In thousands)
2025
2024
2023
............................................................................
Net income (loss)
$
(80,448)
$
(20,208)
$
21,347
Other comprehensive income (loss):
Defined benefit plans:
........................................................
Net change in plan assets
460
(1,830)
(3,946)
..................
Reclassification into other income (expense), net
78
(77)
(357)
Investments available for sale:
.......................................................
Change in unrealized gain
11
28
363
..................
Reclassification into other income (expense), net
2
3
—
.....................................
Foreign currency translation gain (loss)
22
(1,775)
(1,095)
....................................................................................
Tax effect
(53)
733
766
..............................
Other comprehensive income (loss), net of tax
520
(2,918)
(4,269)
.........................................................
Comprehensive income (loss)
$
(79,928)
$
(23,126)
$
17,078
The accompanying notes are an integral part of these consolidated financial statements.

F-7
STAAR SURGICAL COMPANY AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY
Years Ended January 2, 2026, December 27, 2024 and December 29, 2023
(In thousands)
Common
Stock
Shares
Common
Stock Par
Value
Addi-
tional
Paid-In
Capital
Treasury
Stock
Shares
Treasury
Stock
Accum-
ulated
Other
Compre-
hensive
Income
(Loss)
Accum-
ulated
Deficit
Total
......................
Balance, at December 30, 2022
48,212
$
482
$ 404,189
—
$
—
$
156
$ (68,715)
$ 336,112
...........................................
Net income
—
—
—
—
—
—
21,347
21,347
...........................
Other comprehensive loss
—
—
—
—
—
(4,269)
—
(4,269)
...
Common stock issued upon exercise of options
518
5
9,667
—
—
—
—
9,672
..........................
Stock-based compensation
—
—
25,188
—
—
—
—
25,188
..............................................
Repurchase of employee common stock for taxes
withheld
(35)
—
(2,097)
—
—
—
—
(2,097)
...........................
Unvested restricted stock
14
—
—
—
—
—
—
—
.....
Vested restricted and performance stock units
130
1
—
—
—
—
—
1
......................
Balance, at December 29, 2023
48,839
488
436,947
—
—
(4,113)
(47,368)
385,954
...............................................
Net loss
—
—
—
—
—
—
(20,208)
(20,208)
...........................
Other comprehensive loss
—
—
—
—
—
(2,918)
—
(2,918)
...
Common stock issued upon exercise of options
315
3
7,389
—
—
—
—
7,392
..........................
Stock-based compensation
—
—
28,618
—
—
—
—
28,618
..............................................
Repurchase of employee common stock for taxes
withheld
(44)
—
(1,505)
—
—
—
—
(1,505)
...........................
Unvested restricted stock
16
—
—
—
—
—
—
—
............................
Forfeited restricted stock
(5)
—
—
—
—
—
—
—
.....
Vested restricted and performance stock units
173
2
—
—
—
—
—
2
......................
Balance, at December 27, 2024
49,294
493
471,449
—
—
(7,031)
(67,576)
397,335
...............................................
Net loss
—
—
—
—
—
—
(80,448)
(80,448)
.......................
Other comprehensive income
—
—
—
—
—
520
—
520
...
Common stock issued upon exercise of options
221
2
3,463
—
—
—
—
3,465
..........................
Stock-based compensation
—
—
31,290
—
—
—
—
31,290
.......................
Repurchase of common stock
—
—
—
(376)
(6,461)
—
—
(6,461)
..............................................
Repurchase of employee common stock for taxes
withheld
(77)
—
(1,520)
—
—
—
—
(1,520)
.....
Vested restricted and performance stock units
341
3
—
—
—
—
—
3
..........................
Balance, at January 2, 2026
49,779
$
498
$ 504,682
(376)
$
(6,461)
$
(6,511)
$ (148,024)
$ 344,184
The accompanying notes are an integral part of these consolidated financial statements.

F-8
STAAR SURGICAL COMPANY AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
Years Ended January 2, 2026, December 27, 2024 and December 29, 2023
(In thousands)
2025
2024
2023
Cash flows from operating activities:
............................................................................
Net income (loss)
$
(80,448)
$
(20,208)
$
21,347
Adjustments to reconcile net income (loss) to net cash provided
by (used in) operating activities:
.........................
Depreciation of property, plant, and equipment
8,319
6,891
5,111
........................................
Amortization of cloud-based software
409
—
—
..............................................
Non-cash operating lease expense
3,570
3,562
3,256
...........................................................................................
Impairment of fixed assets and operating lease right-of-use
assets
15,404
—
—
.......................................................
Gain on fixed asset recovery
(1,458)
—
—
........................................................
Amortization of intangibles
—
—
13
...........................................................
Impairment of intangibles
—
—
154
..........
Accretion/amortization of investments available for sale
(198)
(1,091)
(2,501)
................................................................
Deferred income taxes
(2,916)
3,590
3,264
...................................................
Change in net pension liability
(249)
26
(956)
..............................
Loss on disposal of property and equipment
74
1,694
73
............................................
Stock-based compensation expense
30,588
27,210
23,516
.........................................
Change in asset retirement obligation
4
(53)
(102)
...............................
Provision for sales returns and credit losses
3,664
286
663
.....................................................................
Inventory provision
5,334
2,782
4,851
Changes in working capital:
....................................................................
Accounts receivable
27,834
16,493
(32,760)
..................................................................................
Inventories
(16,981)
(10,000)
(14,361)
.....................................
Prepayments, deposits, and other assets
(1,352)
(2,006)
(1,007)
.................................................................
Cloud-based software
(15,764)
(13,357)
(2,406)
........................................................................
Accounts payable
(5,507)
75
(701)
.....................
Other current liabilities and non-current liabilities
(4,557)
(169)
7,140
................
Net cash provided by (used in) operating activities
(34,230)
15,725
14,594
Cash flows from investing activities:
......................................
Acquisition of property and equipment
(5,820)
(23,394)
(18,188)
.................................
Purchase of investments available for sale
(75,363)
(80,240)
(52,313)
..........
Proceeds from maturity of investments available for sale
124,145
43,103
143,548
.................
Proceeds from sale of investments available for sale
3,377
1,314
1,300
................
Net cash provided by (used in) investing activities
46,339
(59,217)
74,347
Cash flows from financing activities:
.....................................
Repayment of finance lease obligations
(42)
(165)
(161)
.....................................................
Repurchase of common stock
(6,461)
—
—
......
Repurchase of employee common stock for taxes withheld
(1,520)
(1,505)
(2,097)
...............................
Proceeds from the exercise of stock options
3,465
7,392
9,672
....
Proceeds from vested restricted and performance stock units
3
2
1
................
Net cash provided by (used in) financing activities
(4,555)
5,724
7,415
......
Effect of exchange rate changes on cash and cash equivalents
1,437
(1,111)
202
...........................
Increase (decrease) in cash and cash equivalents
8,991
(38,879)
96,558
............................
Cash and cash equivalents, at beginning of year
144,159
183,038
86,480
......................................
Cash and cash equivalents, at end of year
$
153,150
$
144,159
$
183,038
The accompanying notes are an integral part of these consolidated financial statements.

F-9
STAAR SURGICAL COMPANY AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Note 1 — Organization and Description of Business and Accounting Policies
Organization and Description of Business
STAAR Surgical Company, a Delaware corporation, was first incorporated in 1982, and together with its
subsidiaries (the “Company”) designs, develops, manufactures, and sells implantable lenses for the eye and
accessory delivery systems used to deliver the lenses into the eye. The Company generates worldwide revenue
almost exclusively from sales of its Implantable Collamer Lenses (“ICLs”), which are used in corrective or
“refractive” surgery. Historically, the Company also manufactured and sold intraocular lenses (“IOLs”), for use in
surgery to treat cataracts. As the Company has focused its business and strategy on its ICL product offerings, it has
phased out its cataract IOL product line.
The Company markets and sells ICLs for refractive surgery to treat myopia (nearsightedness) as its “EVO”
family of lenses. The Company’s EVO family of lenses includes its EVO ICL, EVO+ ICL, and EVO Visian ICL.
The Company’s newest offering, EVO Viva, has an extended depth of focus (EDoF) optic, which is designed to treat
myopia with presbyopia (age-related loss of ability to focus). The Company also markets and sells an ICL lens to
treat hyperopia (farsightedness), which is called Visian ICL. The Company makes its ICL product offerings
available in multiple models, powers and lengths, including some with toric ICL (TICL) versions to correct for
astigmatism (blurred vision). Not all of the Company’s products are currently available in all markets where it sells
ICLs today.
As of January 2, 2026, the Company’s significant subsidiaries consisted of:
•
STAAR Surgical AG, a wholly owned subsidiary organized under the laws of Switzerland (“STAAR AG”)
•
STAAR Japan, Inc., a wholly owned subsidiary organized under the laws of Japan (“STAAR Japan”)
Principles of Consolidation
The accompanying consolidated financial statements include the accounts of STAAR Surgical Company and its
wholly-owned subsidiaries and have been prepared in accordance with accounting principles generally accepted in
the United States of America (“GAAP”). All significant intercompany balances and transactions have been
eliminated.
Fiscal Year and Interim Reporting Periods
The Company’s fiscal year ends on the Friday nearest December 31 and each of the Company’s quarterly
reporting periods generally consists of 13 weeks. Fiscal year 2025 is based on a 53-week period and fiscal years
2024 and 2023 are based on a 52-week period.
Termination of Alcon Merger Agreement
As previously disclosed, on August 4, 2025, the Company entered into an Agreement and Plan of Merger (the
“Merger Agreement”) with Alcon Research, LLC, a Delaware limited liability company (“Alcon”), and Rascasse
Merger Sub, Inc., a Delaware corporation and a wholly owned direct subsidiary of Alcon (“Merger Sub”). The
Merger Agreement provided, among other things, that subject to the satisfaction or waiver of the conditions set forth
therein, Merger Sub will merge with and into the Company (the “Merger”), with the Company surviving the Merger
as a wholly owned subsidiary of Alcon. The Company and Alcon entered into two amendments to the Merger
Agreement, on November 7, 2025 and December 9, 2025, and the Company held a special meeting of stockholders
(the “Special Meeting”) to vote on the Merger on January 6, 2026. At the Special Meeting, the Company’s
stockholders voted against the Merger, and the Merger Agreement was terminated in accordance with its terms
effective January 6, 2026. None of the Company, Alcon or Merger Sub was required to pay any termination fee as a
result of the termination of the Merger Agreement, and the parties are responsible for their respective costs and
expenses related to the Merger Agreement and the transactions contemplated thereby. During fiscal 2025, the
Company incurred $17,135,000 in professional fees and expenses related to the Merger, which are recorded as
Merger transaction and related costs on the Consolidated Statement of Operations. Following the termination of the
Merger Agreement, on January 14, 2026, the Company entered into a letter agreement (the “Cooperation
Agreement”) with Broadwood Partners, L.P. and its affiliates (“Broadwood”), the Company’s largest stockholder.
The Cooperation Agreement provided for certain governance and leadership changes, as well as reimbursement by
the Company of expenses incurred by Broadwood and other stockholders in connection with their engagement with
the Company, including the Special Meeting. See Note 19 – Subsequent Events to the Consolidated Financial
Statements for information about the Merger Agreement and the Cooperation Agreement.

STAAR SURGICAL COMPANY AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
F-10
Note 1 — Organization and Description of Business and Accounting Policies (Continued)
Reclassifications
The Company reclassified certain personnel costs including salary-related and payroll tax expenses, bonus and
stock-based compensation related expenses and travel related expenses previously included in research and
development to sales and marketing. These costs support internal and external training and education with respect to
the Company’s existing products, and as such, the Company determined that classification of these costs in sales and
marketing better reflects the nature of the costs and financial performance of the Company as it operates. The
Company has made certain reclassification adjustments to conform prior period amounts to current presentation,
which include reclassification adjustments between Research and development expenses and Sales and marketing
expenses on its Consolidated Statements of Operations as follows (in thousands):
2024
2023
Prior
Presentation
Reclassi-
fication
New
Presentation
Prior
Presentation
Reclassi-
fication
New
Presentation
....................................
Sales and marketing
$ 108,322
$
8,656
$ 116,978
$ 107,834
$
3,923
$ 111,757
..........................
Research and development
53,973
(8,656)
45,317
44,401
(3,923)
40,478
The reclassification adjustments did not have a material impact on previously recorded amounts and had no
impact on the Company’s Total selling, general and administrative expenses, Operating income (loss), Net income
(loss) or Net earnings (loss) per share. The Consolidated Balance Sheets, Consolidated Statements of Operations,
Comprehensive Income (Loss), Stockholders’ Equity and Cash Flows were not affected by changes in the
presentation of these costs.
Additionally, non-cash lease expense is now presented on its own line in the Company’s Consolidated
Statements of Cash Flows instead of combined with the changes in other current and non-current liabilities as
follows (in thousands):
2024
2023
Prior
Presentation
Reclassi-
fication
New
Presentation
Prior
Presentation
Reclassi-
fication
New
Presentation
................
Non-cash operating lease expense
$
—
$
3,562
$
3,562
$
—
$
3,256
$
3,256
........
Other current and non-current liabilities
3,393
(3,562)
(169)
10,396
(3,256)
7,140
Net cash provided by (used in) operating activities presented in the Consolidated Statements of Cash Flows was
not affected by this change in presentation.
Segment Reporting
The Company operates in one reportable segment, ophthalmic surgical product segment, as all of the
Company’s sales are generated from ophthalmic surgical products. The accounting policies for the ophthalmic
surgical product segment are the same as those described in Note 1 – Organization and Description of Business and
Accounting Policies of the Consolidated Financial Statements.
The Company’s chief operating decision maker (“CODM”) has been identified as the Chief Executive Officer.
The Company’s CODM manages and allocates resources to the operations of the Company on a consolidated basis.
The CODM assesses performance comparing actual results to forecasts and decides how to allocate resources, i.e.,
headcount and compensation, based on net income or on operating results, if a net loss. Significant segment
expenses are consistent with those presented on the Consolidated Statements of Operations.
The measure of segment assets is reported on the balance sheet as total consolidated assets and the expenditures
for additions to long-lived assets, and depreciation and amortization expense is consistent with those presented on
the Consolidated Statement of Cash Flows.
See Note 1 – Organization and Description of Business and Accounting Policies – Concentration of Credit Risk
and Sales, Note 17 – Disaggregation of Revenues, Geographic Sales and Product Sales and Note 18 – Geographic
Assets for specific information regarding the Company’s sales and long-lived assets.

STAAR SURGICAL COMPANY AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
F-11
Note 1 — Organization and Description of Business and Accounting Policies (Continued)
Foreign Currency
The functional currency of STAAR Japan is the Japanese yen. The functional currency of STAAR AG is the
U.S. dollar.
Assets and liabilities of STAAR Japan are translated at rates of exchange in effect at the close of the period.
Sales and expenses are translated at the weighted average of exchange rates in effect during the period. Net foreign
translation gain (loss) was as follows (in thousands):
Years Ended
2025
2024
2023
.......................................
Foreign currency translation gain (loss)(1)
$
22
$
(1,775)
$
(1,095)
................................
Gain (loss) on foreign currency transactions(2)
2,603
(3,675)
(1,909)
(1)
Shown as a separate line item on the Consolidated Statements of Comprehensive Income (Loss).
(2)
Shown as a separate line item on the Consolidated Statements of Operations.
Cash and Cash Equivalents
Cash and cash equivalents include cash and balances in deposits and money market accounts held at banks and
financial institutions with original maturities of three months or less. Such balances generally exceed the federal
insurance limits; however, the Company periodically assesses the financial condition of the institutions and believes
that the risk of any loss is minimal. The book value of money market accounts approximates fair value and are
classified as Level 1.
Use of Estimates
The consolidated financial statements have been prepared in conformity with GAAP and, as such, include
amounts based on significant estimates and judgments of management with consideration given to materiality.
Estimates used include determining valuation allowances for uncollectible trade receivables, sales returns reserves,
obsolete and excess inventory reserves, deferred income taxes, and tax reserves, including valuation allowances for
deferred tax assets, pension liabilities, evaluation of asset impairment, in determining the useful life of depreciable
and definite-lived intangible assets, and in the variables and assumptions used to calculate and record stock-based
compensation. Actual results could differ materially from those estimates.
Significant estimates used include determining valuation allowances for sales returns reserves, obsolete and
excess inventory reserves, deferred income taxes, and tax reserves, including valuation allowances for deferred tax
assets, pension liabilities, and in the variables and assumptions used to calculate and record stock-based
compensation. Other estimates made by management not considered to be significant include determining valuation
allowances for uncollectible trade receivables, evaluation of asset impairment, and in determining the useful life of
depreciable and definite-lived intangible assets.
Revenue Recognition
The Company recognizes revenue when its contractual performance obligations with customers are satisfied
and collectability is reasonably assured. The Company’s performance obligations are generally limited to single
sales orders with product shipping to the customer within a month of receipt of the sales order. Substantially all of
the Company’s revenues are recognized at a point-in-time when control of its products transfers to the customer,
which is typically upon shipment (as discussed below). Payment for product sales is typically collected within a
short period following transfer of control of product. The Company presents sales tax and similar taxes it collects
from its customers on a net basis (excluded from revenues).
From time to time, the Company consigns or ships inventory to third parties outside the United States in
advance of anticipated demand. While the Company does not recognize revenue on shipment of consigned
inventory, the Company believes it can help address challenges and delays associated with importation and logistics.
Further, the Company believes that increasing the amount of product in-country can mitigate potential impacts from
geopolitical risk and tariff changes.

STAAR SURGICAL COMPANY AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
F-12
Note 1 — Organization and Description of Business and Accounting Policies (Continued)
Revenue Recognition (Continued)
Historically, the Company marketed and sold cataract IOLs and related injectors and injector parts. The
Company phased out sales of such products in fiscal 2023, and it did not sell any such products in fiscal 2024 or
2025. Sales of such products involved sales by the Company of injector parts to an unrelated customer and supplier
(collectively referred to as “supplier”) whereby these injector part sales were either made as a final sale to the
supplier or, were sold to be combined with an acrylic cataract IOL by the supplier into finished goods inventory (a
preloaded acrylic cataract IOL). These finished goods were then sold back to the Company at an agreed upon,
contractual price. The Company made a profit margin on either type of sale with the supplier and each type of sale
was made under separate purchase and sales orders between the two parties resulting in cash settlement for the
orders sold or repurchased. For parts that were sold as a final sale, the Company recognized a sale, and those sales
were classified as other product sales in total net sales. For the injector parts that were sold to be combined with an
acrylic cataract IOL into finished goods, the Company recorded the transaction at its carrying value deferring any
profit margin as contra-inventory, until the finished goods inventory was sold to an end-customer (not the supplier)
at which point the Company recognized revenues.
For all sales, the Company is considered the principal in the transaction as the Company is the party providing
specified goods it has control over prior to when control is transferred to the customer. Cost of sales includes cost of
production, freight and distribution, and inventory provisions, net of any purchase discounts. Shipping and handling
activities that occur after the customer obtains control of the goods are recognized as fulfillment costs.
The Company disaggregates its revenue into the following categories:  non-consignment sales and consignment
sales.
•
Non-consignment Sales – The Company recognizes revenue from non-consignment product sales at a
point-in-time when control has been transferred, which is typically at shipping point, except for certain
customers and for STAAR Japan, which is typically recognized when the customer receives the product.
The Company does not have significant deferred revenues as of January 2, 2026, December 27, 2024 and
December 29, 2023, as delivery to the customer is generally made within the same or the next day of
shipment. In December 2024, the Company shipped a $27.5 million order of ICLs to one of its distributors
in China. The distributor requested extended payment terms, and the Company agreed. As these payment
terms were significantly longer than the terms included in the Company’s distributor agreement,
management determined that collectability was not probable, and the Company did not recognize the
revenue associated with the shipment in the quarter ended December 27, 2024. However, as the shipment
was received by the distributor, and control of the product passed to the distributor, the cost of the
inventory was charged to cost of sales in the quarter ended December 27, 2024. Revenue for this order was
recognized in 2025 when payments were received from the distributor, at which point the collectability
concern is alleviated.
•
Consignment Sales – The Company’s products are marketed to ophthalmic surgeons, hospitals, ambulatory
surgery centers or vision centers, and distributors. ICLs may be offered to surgeons and hospitals on a
consignment basis, and historically, cataract IOLs were also offered on a consignment basis. The Company
maintains title and risk of loss on consigned inventory and recognizes revenue for consignment inventory at
a point-in-time when the Company is notified that the lenses have been implanted, thus completing the
performance obligation.
See Note 17 – Disaggregation of Revenues, Geographic Sales and Product Sales to the Consolidated Financial
Statements for additional information.

STAAR SURGICAL COMPANY AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
F-13
Note 1 — Organization and Description of Business and Accounting Policies (Continued)
Revenue Recognition (Continued)
The Company also enters into certain strategic cooperation agreements with customers in which, as
consideration for certain commitments made by the customer, including minimum purchase commitments, the
Company agrees, among other things, to share the expense for marketing, educational training and general support
of the Company’s products. The provisions in these arrangements allow for these payments to be made directly to
the customer or payments can be made directly to a third party for distinct marketing, educational training and
general support services provided to or on behalf of the customer by the third party. For payments the Company
makes to another party or reimburses the customer for distinct marketing and support services, the Company
recognizes these payments as sales and marketing expense as incurred. These strategic cooperation agreements are
generally for periods of 12 months or more with quarterly minimum purchase commitments. The Company
recognizes sales and marketing expenses in the period in which it expects the customer will achieve its minimum
purchase commitment, generally quarterly, and any unpaid amounts are recorded in other current liabilities on the
Consolidated Balance Sheets, see Note 8 – Other Current Liabilities to the Consolidated Financial Statements.
Reimbursements made directly to the customer for general marketing incentives are treated as a reduction in
revenues. The Company’s performance obligations generally occur in the same quarter as the shipment of product.
Sales and marketing expenses for distinct services were as follows (in thousands):
Years Ended
2025
2024
2023
.......................................................................................
Marketing and support services related to strategic cooperation
agreements
$
3,428
$
3,342
$
1,891
Since the payments for distinct or non-distinct services occur within the quarter corresponding with the
purchases made by the customer and the shipments made by the Company to that customer, there is no remaining
performance obligation by the Company to the customer. Accordingly, there are no deferred revenues associated
with these types of arrangements as of January 2, 2026, December 27, 2024 and December 29, 2023.
Allowance for Credit Losses
The Company performs ongoing credit evaluations of its customers and adjusts credit limits based on customer
payment history and credit worthiness, as determined by the Company’s review of its customers’ current credit
information. The Company continuously monitors collections and payments from customers and maintains a
provision for estimated credit losses and uncollectible accounts based upon an expected loss model which considers
its historical experience, any specific customer collection issues that have been identified and other relevant
observable data, including current economic conditions. Amounts determined to be uncollectible are written off
against the allowance for credit losses.
Concentration of Credit Risk and Sales
Financial instruments that potentially subject the Company to credit risk principally consist of trade receivables.
This risk is limited due to the large number of customers comprising the Company’s customer base, and their
geographic dispersion. As of January 2, 2026 and December 27, 2024, the Company’s China distributors accounted
for 33% and 58%, respectively, of the Company’s consolidated trade receivables. Ongoing credit evaluations of
customers’ financial condition are performed and, generally, no collateral is required. The Company maintains
reserves for potential credit losses and such losses, taken together, have not exceeded management’s expectations.
The Company’s China distributors accounted for 32%, 51% and 58% of the Company’s consolidated net sales
for the years ended 2025, 2024 and 2023, respectively.

STAAR SURGICAL COMPANY AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
F-14
Note 1 — Organization and Description of Business and Accounting Policies (Continued)
Sales Return Reserve
The Company generally may permit returns of product if the product, upon issuance of a Return Goods
Authorization, is returned within the time allowed by its return policies and records an allowance for estimated
returns at the time revenue is recognized. The Company’s allowance for estimated returns is based on an expected
loss model which considers historical and current/anticipated trends and experience, the impact of new product
launches, the entry of a competitor, availability of timely and pertinent information and the various terms and
arrangements offered, including sales with extended credit terms. For estimated returns, sales are reported net of
estimated returns and cost of sales are reported net of estimated returns that can be resold.  On the Consolidated
Balance Sheets, the balances associated for estimated sales returns were as follows (in thousands):
2025
2024
.........................................................................
Estimated returns - inventory(1)
$
1,860
$
853
...............................................................................
Allowance for sales returns
10,199
6,579
(1)
Recognized in inventories, net on the Consolidated Balance Sheets
Investments Available for Sale
Investments available for sale (“AFS”) are investments in debt securities for which the Company does not have
the positive intent and ability to hold to maturity. The Company’s investment policy primary objective is capital
preservation while maximizing its return on investment. Investments may include U.S. government and corporate
debt securities, commercial paper, certain certificates of 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. Investments AFS with maturities of
twelve months or less, are classified as short-term, otherwise, they are classified as long-term. Accrued interest
receivable is recognized in current investments AFS on the Consolidated Balance Sheets.
Investments AFS are measured at fair value and its unrealized gains and losses reported net of the allowance for
credit losses and applicable income taxes, are recognized in accumulated other comprehensive income (loss) on the
Consolidated Balance Sheets. The cost of investments AFS is adjusted for amortization of premiums and accretion
of discounts to maturity. Interest earned, including amortization of premiums and accretion of discounts recognized,
is included in interest income (expense) on the Consolidated Statements of Operations. The cost of investments for
purposes of computing realized and unrealized gains and losses is based on the specific identification method.
The Company recognizes impairment of a debt security for which there has been a decline in fair value below
amortized cost if management intends to sell the security, or it is more-likely-than-not that the Company will be
required to sell the security before recovery of its amortized cost basis. Impairment related to credit losses is
recognized in other income (expense) on the Consolidated Statements of Operations. Any portion of impairment not
related to credit losses is recognized in accumulated other comprehensive income (loss) on the Consolidated Balance
Sheets. The measurement of the credit loss component is equal to the difference between the debt security’s
amortized cost basis and the present value of its expected future cash flows discounted at the security’s effective
yield.

STAAR SURGICAL COMPANY AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
F-15
Note 1 — Organization and Description of Business and Accounting Policies (Continued)
Fair Value of Financial Instruments
Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an
orderly transaction between market participants at the measurement date. To increase the comparability of fair value
measures, the following hierarchy prioritizes the inputs to valuation methodologies used to measure fair value:
•
Level 1 – Inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or
liabilities in active markets.
•
Level 2 – Inputs to the valuation methodology include quoted prices for similar assets or liabilities in active
markets, and inputs that are observable for the assets or liability, either directly or indirectly, for
substantially the full term of the financial instruments.
•
Level 3 – Inputs to the valuation methodology are unobservable; that reflect management’s own
assumptions about the assumptions market participants would make and significant to the fair value.
The carrying values reflected on the Consolidated Balance Sheets for cash and cash equivalents, trade accounts
receivable, net, prepayments, deposits and other current assets, accounts payable and other current liabilities
approximate their fair values because of the short maturity of these instruments.
Inventories, Net
Inventories, net are valued at the lower of cost, determined on a first-in, first-out basis, or net realizable value.
Inventories include the costs of raw material, labor, and manufacturing overhead, work in process and finished
goods. Inventories also include as a contra item, deferred margins for certain injector parts described under the
revenue recognition policy. The Company provides estimated inventory allowances for excess, expiring, slow
moving and obsolete inventory as well as inventory whose carrying value is in excess of net realizable value to
properly reflect inventory at the lower of cost or market.
Property, Plant, and Equipment
Property, plant, and equipment are recorded at cost. Depreciation on property, plant, and equipment is computed
using the straight-line method over the estimated useful lives of the assets as noted below. Leasehold improvements
are amortized over the lesser of the estimated useful lives of the assets or the related expected lease term. Major
improvements are capitalized, and minor replacements, maintenance and repairs are charged to expense as incurred.
Also included in property, plant and equipment is construction in process. Construction in process includes the
cost of design plans and build out of facilities and the cost of equipment, as well as the direct costs incurred in the
testing and validation of machinery and equipment and facilities before they are ready for productive use. Upon
placement in service, costs are reclassified into the appropriate asset category and depreciation commences.
The estimated useful lives of assets are as follows:
............................
Machinery and equipment
5-10 years
...............
Computer equipment and software
2-5 years
...............................
Furniture and equipment
3-7 years
..............................
Leasehold improvements
The shorter of the useful life of the asset or the expected term of the
associated lease
Goodwill
Goodwill, which has an indefinite life, is not amortized but instead is tested for impairment on an annual basis
or between annual tests if an event occurs or circumstances change that would indicate the carrying amount may be
impaired. Impairment testing for goodwill is done at the reporting unit level. Reporting units can be one level below
the operating segment level and can be combined when reporting units within the same operating segment have
similar economic characteristics. The Company has determined that its reporting units have similar economic
characteristics, and therefore, can be combined into one reporting unit for the purposes of goodwill impairment
testing. The Company performed its annual impairment test and determined that its goodwill was not impaired.  As
of January 2, 2026 and December 27, 2024, the carrying value of goodwill was $1,786,000.

STAAR SURGICAL COMPANY AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
F-16
Note 1 — Organization and Description of Business and Accounting Policies (Continued)
Long-Lived Assets
The Company reviews property, plant, and equipment and intangible assets, excluding goodwill, for impairment
whenever events or changes in circumstances indicate the carrying amount of an asset may not be recoverable. The
Company measures recoverability of these assets by comparing the carrying value of such assets to the estimated
undiscounted future cash flows the assets are expected to generate. When the estimated undiscounted future cash
flows are less than their carrying amount, an impairment loss is recognized equal to the difference between the
assets’ fair value and their carrying value. A review of long-lived assets was conducted as of December 27, 2024
and no impairment was identified (see also Note 1 – Organization and Description of Business and Accounting
Policies – Restructuring, Impairment and Related Charges.)
Amortization is computed on the straight-line basis, which is the Company’s best estimate of the economic
benefits realized over the estimated useful lives of the assets which range from 3 to 20 years for patents, certain
acquired rights and licenses, 10 years for customer relationships, and 3 to 10 years for developed technology.
During 2023, the Company recognized impairment of $154,000 for the remaining unamortized Japan patent and
licenses related to cataract IOLs. Amortization expense for intangible assets were as follows (in thousands):
Years Ended
2025
2024
2023
.....................................................................
Amortization expense
$
—
$
—
$
13
Cloud-Based Software
The Company has entered into cloud-based software hosting arrangements for which it incurs implementation
costs. Certain costs incurred during the application development stage are capitalized and included within
Prepayments, deposits and other current assets or Cloud-based software on the Consolidated Balance Sheet,
depending on the short- or long-term nature of such costs, in line with the Company’s policy on the accounting for
prepaid software hosting arrangements. Costs incurred during the preliminary project stage and post-implementation
stage are expensed as incurred. Capitalized cloud-based software implementation costs are amortized, beginning on
the date the related software or module is ready for its intended use, on a straight-line basis over the remaining term
of the hosting arrangement, which is approximately 5 to 10 years. Amortization is recognized as a component of
selling, general, and administrative expenses, in the same line item as the expense for the associated hosting
arrangement.
Lease Accounting
The Company recognizes right-of-use (“ROU”) assets and lease liabilities for leases with terms greater than
twelve months on the Consolidated Balance Sheets. Leases are classified as either finance or operating, with
classification affecting the pattern of expense recognition in the Consolidated Statements of Operations.
A contract contains a lease if the contract conveys the right to control an identified asset for a period of time in
exchange for consideration. An asset is either explicitly identified or implicitly identified and must be physically
distinct. In addition, the Company must have both the right to obtain substantially all of the economic benefits from
use of the identified asset and has the right to direct the use of the identified asset.
Certain leases may have non-lease components such as common area maintenance expense for building leases
and maintenance expenses for automobile leases. In general, the Company separates common area maintenance
expense component from the value of the ROU asset and lease liability when evaluating rental properties, whereas
the Company includes the maintenance and service components in the value of the ROU asset and lease liability
while evaluating automobile leases.
When determining whether a lease is a finance lease or operating lease, the Company uses (i) greater than or
equal to 75% to determine whether the lease term is a major part of the remaining economic life of the underlying
asset and (ii) greater than or equal to 90% to determine whether the present value of the sum of lease payments is
substantially all of the fair value of the underlying asset.

STAAR SURGICAL COMPANY AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
F-17
Note 1 — Organization and Description of Business and Accounting Policies (Continued)
Lease Accounting (Continued)
The Company uses either the rate implicit in the lease or its incremental borrowing rate as the discount rate in
lease accounting. The Company also elected not to capitalize leases that have terms of twelve months or less.
The Company reviews ROU assets, for impairment whenever events or changes in circumstances indicate the
carrying amount of an asset may not be recoverable. The Company measures recoverability of these assets by
comparing the carrying value of such assets to the estimated undiscounted future cash flows the assets are expected
to generate. When the estimated undiscounted future cash flows are less than their carrying amount, an impairment
loss is recognized equal to the difference between the assets’ fair value and their carrying value.
Vendor Concentration
There were two vendors that accounted for over 30% of the Company’s consolidated accounts payable as of
January 2, 2026. There was one vendor that accounted for over 10% of the Company’s consolidated accounts
payable as of December 27, 2024.
Research and Development Costs
Expenditures for research activities relating to product development and improvement are charged to expense as
incurred.
Advertising Costs
Advertising costs, which are included in selling and marketing expenses, are expensed as incurred, and were as
follows (in thousands):
Years Ended
2025
2024
2023
.............................................................................
Advertising costs
$
19,631
$
34,084
$
46,680
Merger Transaction and Related Costs
In connection with the proposed merger with Alcon, the Company incurred professional service expenses of
$17,135,000 during fiscal year 2025, which are included in Merger transaction and related costs on the Consolidated
Statements of Operations. In accordance with the Cooperation Agreement with Broadwood Partners L.P., the
Company expects to incur approximately $7,000,000 in additional expenses in the quarter ended April 3, 2026. See
Note 19 – Subsequent Events to the Consolidated Financial Statements for further information.
Restructuring, Impairment and Related Charges
In the first half of 2025, the Company took a number of steps to change its leadership team, realign its
leadership structure to better address market needs, reduce costs and discretionary spending, and better position the
Company to return to sustainable growth. As part of this leadership realignment and related efforts, during the fiscal
year 2025, the Company recognized costs related to severance and reduction in workforce of $12,354,000;
consulting expenses of $874,000; impairment expenses on leasehold improvements and machinery and equipment of
$7,759,000, as the Company will no longer be using these assets; and impairment on real property right-of-use
assets of $4,894,000, as the Company is actively pursuing subleasing opportunities. In addition, the Company also
recognized impairment of $2,751,000 during fiscal year 2025 for internally developed software that it will no longer
be using as it will transition to a cloud-based software solution. An aggregate of $28,632,000 for such costs,
expenses and charges is included in Restructuring, impairment and related charges on the Consolidated Statements
of Operations for fiscal year 2025. The restructuring effort was substantially completed as of June 27, 2025. For
more detail, see Notes 6 – Property, Plant and Equipment, Net, 8 – Other Current Liabilities and 9 – Operating
Leases to the Consolidated Financial Statements.

STAAR SURGICAL COMPANY AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
F-18
Note 1 — Organization and Description of Business and Accounting Policies (Continued)
Income Taxes
The Company adopted the annual disclosure requirements of the Financial Accounting Standards Board
(“FASB”) issued ASU 2023-09, “Income Taxes (Topic 740)” in fiscal 2025. 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. The Company’s income tax disclosure requirements have been enhanced on a prospective
basis in these Consolidated Financial Statements as a result of the ASU 2023-09 adoption.
On July 4, 2025, the One Big Beautiful Bill Act (“OBBBA”) was enacted into law. The OBBBA introduces
changes in U.S. tax law, with certain provisions applicable to the Company beginning in 2025. These changes
include the immediate expensing of domestic research and experimental expenditures, accelerated tax deductions for
qualified property, and modifications to certain international tax frameworks. The Company has incorporated
OBBBA into the income tax provision during fiscal year 2025 resulting in an immaterial impact to the effective tax
rate. The Company continues to evaluate the impact the new legislation will have on its Consolidated Financial
Statements.
The Company recognizes deferred tax assets and liabilities for temporary differences between the financial
reporting basis and the tax basis of the Company’s assets and liabilities, net operating loss and credit carryforwards,
and uncertainty in income taxes, on a jurisdiction-by-jurisdiction basis. For each tax entity and tax jurisdiction, the
Company presents deferred tax liabilities and assets, as well as any related valuation allowance, as a single non-
current amount. The Company does not offset deferred tax liabilities and assets attributable to different tax entities
or to different tax jurisdictions.
In evaluating the Company’s ability to recover the deferred tax assets within a jurisdiction from which they
arise, management considers all available positive and negative evidence, including scheduled reversals of deferred
tax liabilities, projected future taxable income, tax-planning strategies, and results of recent operations. In projecting
future taxable income, the Company begins with historical results and incorporates assumptions including overall
current and projected business and industry conditions, projected sales growth, margins, costs and income by
jurisdiction, the amount of future federal, state, and foreign pretax operating income, the reversal of temporary
differences and the successful implementation of feasible and prudent tax-planning strategies. These assumptions
require significant judgment about the forecasts of future taxable income and are consistent with the plans and
estimates the Company uses to manage the underlying businesses. In evaluating the objective evidence that
historical results provide, the Company also considers three years of cumulative operating results. It is the
Company’s policy to not rely on future taxable profit as source of income to evaluate deferred tax asset realizability,
if the Company is under three years of cumulative losses. Valuation allowances, or reductions to deferred tax assets,
are recognized if, based on the weight of all the available evidence, it is more likely than not that some portion or all
the deferred tax asset may not be realized. The impact on deferred taxes of changes in tax rates and laws, if any, are
applied to the years during which temporary differences are expected to be settled and reflected in the financial
statements in the period of enactment.
The Company has made a policy election to apply the incremental cash tax savings approach when analyzing
the impact Global Intangible Low Tax Income (“GILTI”) could have on its U.S. valuation allowance. As a result of
future expected GILTI inclusions, and because of the 2017 Tax Cuts and Jobs Act’s ordering rules, U.S. companies
may now expect to utilize tax attribute carryforwards (e.g., net operating losses and deferred tax assets) for which a
valuation allowance has historically been recorded (this is referred to as the “tax law ordering approach”). However,
due to the mechanics of the GILTI rules, companies that have a GILTI inclusion may realize a reduced (or no) cash
tax savings from utilizing such tax attribute carryforwards (this view is referred to as the “incremental cash tax
savings approach”).

STAAR SURGICAL COMPANY AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
F-19
Note 1 — Organization and Description of Business and Accounting Policies (Continued)
Income Taxes (Continued)
The Company and its foreign subsidiaries operate in multiple tax jurisdictions, and have entered into certain
intercompany service arrangements that are priced under transfer pricing policies intended to reflect arm’s-length
terms under applicable tax laws and regulations. Transfer pricing requires management judgment and is supported
by economic analyses, including benchmarking to comparable companies and/or transactions. The Company
monitors the nature of its intercompany service arrangements for changes in its operations as well as economic
conditions, and periodically refreshes its transfer pricing analyses, including updates to the comparable set and
related results, as appropriate. Although these intercompany transactions reflect arm’s-length terms and the proper
transfer pricing documentation is in place, transfer pricing terms and conditions may be scrutinized by local tax
authorities during an audit and any resulting changes may impact the Company’s effective tax rate and taxes due. 
The Company recognizes the income tax benefit from an uncertain tax position when it is more likely than not
that, based on technical merits, the position will be sustained upon examination, including resolutions of any related
appeals or litigation processes. The amount of tax benefit recorded, if any, is limited to the extent it is not greater
than 50 percent likely to be realized upon settlement with the taxing authority (that has full knowledge of all relevant
information). Accrued interest, if any, related to uncertain tax positions is included as a component of income tax
expense, and penalties, if incurred, are recognized as a component of operating income or loss.
Basic and Diluted Net Income (Loss) Per Share
The Company has only one class of common stock and no participating securities which would require the two-
class method of calculating basic earnings per share. Basic per share information is calculated by dividing net
income (loss) by the weighted average number of shares outstanding during the period. Diluted per share
information is calculated by dividing net income (loss) by the weighted average number of shares outstanding
during the period, adjusted for the effects of potentially dilutive securities using the treasury stock method. When the
Company incurs a net loss, the number of diluted shares is equal to the number of basic shares. Potentially dilutive
securities include the Company’s outstanding stock-based awards. As of January 2, 2026, the Company had
outstanding grants of stock options, restricted stock units (“RSUs”), and performance stock units (“PSUs”). Stock
options that are anti-dilutive, where their exercise price exceeds the average market price of the common stock, are
not included in the treasury stock method calculation for diluted net income (loss) per share.
Employee Defined Benefit Plans
The Company maintains a passive pension plan (the “Swiss Plan”) covering employees of STAAR AG. The
Swiss Plan conforms to the features of a defined benefit plan. The Company also maintains a noncontributory
defined benefit pension plan which covers substantially all the employees of STAAR Japan.
The Company recognizes the funded status, or difference between the fair value of plan assets and the projected
benefit obligations of the pension plan on the Consolidated Balance Sheets, with a corresponding adjustment to
accumulated other comprehensive income (loss). If the projected benefit obligation exceeds the fair value of plan
assets, then that difference or unfunded status represents the pension liability. The Company records a net periodic
pension cost in the Consolidated Statements of Operations. The liabilities and annual income or expense of both
plans are determined using methodologies that involve several actuarial assumptions, the most significant of which
are the discount rate and the expected long-term rate of asset return (asset returns and fair-value of plan assets are
applicable for the Swiss Plan only). The fair values of plan assets are determined based on prevailing market prices.
Stock-Based Compensation
The Company maintains an Amended and Restated Omnibus Equity Incentive Plan, as amended (the “Equity
Plan”). The Equity Plan provides the Company with the ability to grant various types of stock-based awards to
executive officers, employees, consultants and members of its Board of Directors (the “Board”). The Equity Plan
allows for awards of stock options, stock appreciation rights, restricted stock, RSUs, and other stock- and cash-based
awards, including awards that are subject to service-based and performance-based vesting conditions. As of
January 2, 2026, the Company had outstanding grants of stock options, RSUs and PSUs.

STAAR SURGICAL COMPANY AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
F-20
Note 1 — Organization and Description of Business and Accounting Policies (Continued)
Stock-Based Compensation (Continued)
Stock-based compensation expense for all stock-based awards granted is based on the grant-date fair value of
the award. The Company recognizes this compensation expense on a straight-line basis over the requisite service
period of the award, which is generally the vesting term of three to four years for executive officers, employees and
consultants, and one year for Board members.
For performance-based awards, vesting is contingent upon the Company meeting certain internally established
performance conditions and is subject to the grantee’s continued service with the Company. The Company
recognizes compensation expense for performance-based awards when the Company concludes that it is probable
that the performance condition will be achieved, net of an estimate of pre-vesting forfeitures, over the requisite
service period based on the grant-date fair value of the award. The Company reassesses the probability of vesting at
each reporting period and adjusts compensation cost based on its probability assessment.
While the majority of the Company’s outstanding stock-based awards are stock options, RSUs and PSUs, the
Company also, at times, grants awards in the form of restricted stock. Restricted stock awards provide for the
issuance of common stock upon grant, subject to restrictions that lapse over the requisite service period of the
award. For restricted stock awards granted to the Board, the restrictions lapse over a one-year service period and for
executive officers and employees, it is typically a three-year service period. In each case the awards are subject to
forfeiture (or acceleration, depending upon the circumstances) until the service period is completed. Restricted stock
compensation expense is recognized on a straight-line basis over the requisite service period of one to three years,
based on the grant-date fair value of the award.
Restricted stock awards are included in the Company’s shares of common stock issued and outstanding on the
grant date. Shares subject to RSU and PSU awards are not issuable until the requisite service and applicable
performance conditions are satisfied, so they are not included in the Company’s shares of common stock issued and
outstanding until the vesting of such awards.
Share Repurchases
Repurchased shares are held in treasury stock. Treasury stock purchases are accounted for under the cost
method whereby the cost of the acquired stock is recorded as treasury stock.
Comprehensive Income (Loss)
The Company presents comprehensive income (loss) on the Consolidated Balance Sheets and the Consolidated
Statements of Comprehensive Income (Loss). Total comprehensive income (loss) includes, in addition to the net
income (loss), changes in equity that are excluded from the Consolidated Statements of Operations and are recorded
directly into a separate section of stockholders’ equity on the Consolidated Balance Sheets. The following table
summarizes the changes in the accumulated balances for each component of accumulated other comprehensive
income (loss) attributable to the Company for the years ended January 2, 2026, December 27, 2024 and
December 29, 2023 (in thousands):
Foreign
Currency
Translation
Investments
Available for
Sale
Defined
Benefit
Pension
Plan – 
Japan
Defined
Benefit
Pension
Plan –
Switzerland
Accumulated
Other Com-
prehensive
Income (Loss)
.............................
Balance, at December 30, 2022
$
(1,547) $
(336) $
184
$
1,855
$
156
....................
Other comprehensive income (loss)
(1,095)
363
(182)
(4,121)
(5,035)
.............................................................
Tax effect
345
(64)
54
431
766
.............................
Balance, at December 29, 2023
(2,297)
(37)
56
(1,835)
(4,113)
....................
Other comprehensive income (loss)
(1,775)
31
16
(1,923)
(3,651)
.............................................................
Tax effect
542
(5)
(5)
201
733
.............................
Balance, at December 27, 2024
(3,530)
(11)
67
(3,557)
(7,031)
....................
Other comprehensive income (loss)
22
13
(20)
558
573
.............................................................
Tax effect
(6)
(1)
6
(52)
(53)
..................................
Balance, at January 2, 2026
$
(3,514) $
1
$
53
$
(3,051) $
(6,511)

STAAR SURGICAL COMPANY AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
F-21
Note 1 — Organization and Description of Business and Accounting Policies (Continued)
Recent Accounting Pronouncements Not Yet Adopted
In November 2024, the FASB issued ASU 2024-03, “Income Statement - Reporting Comprehensive Income -
Expense Disaggregation Disclosures (Subtopic 220-40).” ASU 2024-03 does not change the expense captions an
entity presents on the face of the income statement; rather it requires disaggregation of certain expense captions into
specified categories in disclosures within the footnotes to the financial statements. ASU 2024-03 requires footnote
disclosure about specific expenses to disaggregate, in a tabular presentation, each relevant expense caption on the
face of the income statement that includes any of the following natural expenses: (1) purchases of inventory, (2)
employee compensation, (3) depreciation, (4) intangible asset amortization and (5) depreciation, depletion and
amortization recognized as part of oil- and gas-production activities or other types of depletion expenses. The
tabular disclosure would also include certain other expenses, when applicable. ASU 2024-03 does not change or
remove existing expense disclosure requirements; however, it may affect where that information appears in the
footnotes to the financial statements. ASU 2024-03 is effective for annual periods beginning after December 15,
2026, and interim reporting periods beginning after December 15, 2027. The requirements will be applied
prospectively with the option for retrospective application. Early adoption is permitted. The Company will adopt
ASU 2024-03 at the beginning of fiscal year 2026. The Company is currently evaluating the annual disclosure
requirements and its effect on the Consolidated Financial Statements.
Note 2 — Investments Available for Sale
Investments AFS and the related fair value measurement consisted of the following (in thousands):
2025
Fair Value
Measurements
Amortized
Cost
Unrealized
Gains
Unrealized
Losses
Estimated
Fair Value
Level 1
Level 2
...........................
Commercial paper
$
14,682
$
1
$
(1) $
14,682
$
—
$
14,682
......................
Certificates of deposit
816
—
—
816
—
816
..................
U.S. Treasury securities
990
—
—
990
990
—
.................
Corporate debt securities
17,897
3
(2)
17,898
—
17,898
................
Total investments AFS
$
34,385
$
4
$
(3) $
34,386
$
990
$
33,396
2024
Fair Value
Measurements
Amortized
Cost
Unrealized
Gains
Unrealized
Losses
Estimated
Fair Value
Level 1
Level 2
...........................
Commercial paper
$
21,466
$
4
$
(2) $
21,468
$
—
$
21,468
......................
Certificates of deposit
1,997
—
—
1,997
—
1,997
..................
U.S. Treasury securities
11,356
3
(4)
11,355
11,355
—
.................
Corporate debt securities
51,527
14
(26)
51,515
—
51,515
................
Total investments AFS
$
86,346
$
21
$
(32) $
86,335
$
11,355
$
74,980
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.

STAAR SURGICAL COMPANY AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
F-22
Note 2 — Investments Available for Sale (Continued)
The Company assessed each debt security (see Note 1 – Organization and Description of Business and
Accounting Policies – Investments Available for Sale – for information on composition of the portfolio) in a gross
unrealized loss position to determine whether the decline in fair value below amortized cost was a result of credit
losses or other factors, whether the Company expects to recover the amortized cost of the debt security, the
Company’s intent to sell and whether it is more-likely-than-not that the Company will not be required to sell the
debt security before the recovery of the amortized cost basis. There has been no allowance for expected credit losses
recorded for the fiscal years ended 2025, 2024 and 2023.
The following table shows the fair value of investments AFS by contractual maturity (in thousands):
2025
Within one
year
After one
year through
five years
Total
...........................................................................
Commercial paper
$
14,682
$
—
$
14,682
.....................................................................
Certificates of deposit
816
—
816
..................................................................
U.S. Treasury securities
990
—
990
................................................................
Corporate debt securities
17,898
—
17,898
................................................................
Total investments AFS
$
34,386
$
—
$
34,386
During 2025, several of the Company’s investments AFS with an aggregate fair value of $3,377,000 were
subject to early redemption. The Company recognized a gain upon redemption of $2,000 for the fiscal year ended
2025. During 2024, several of the Company’s investments AFS with an aggregate fair value of $1,314,000 were
subject to early redemption. The Company recognized a gain upon redemption of $3,000 for the fiscal year ended
2024. During 2023, two of the Company’s investments AFS were the subject of a downgraded credit rating. The
Company sold its investments of $1,300,000 during 2023 following the downgrade. The Company recognized a
realized loss upon sale of less than $1,000 for the fiscal year ended 2023.
Note 3 — Accounts Receivable Trade, Net
Accounts receivable trade, net consisted of the following (in thousands):
2025
2024
............................................................................................................
Domestic
$
2,846
$
2,661
...............................................................................................................
Foreign
47,301
75,268
...........................................................
Total accounts receivable trade, gross
50,147
77,929
........................................................................
Less allowance for credit losses
(83)
(32)
...............................................................
Total accounts receivable trade, net
$
50,064
$
77,897
Note 4 — Inventories, Net
Inventories, net consisted of the following (in thousands):
2025
2024
....................................................................
Raw materials and purchased parts
$
10,238
$
9,705
.................................................................................................
Work in process
8,514
8,168
................................................................................................
Finished goods(1)
39,673
26,710
..................................................................................
Total inventories, gross
58,425
44,583
......................................................................................
Less inventory reserves
(2,929)
(1,278)
.....................................................................................
Total inventories, net
$
55,496
$
43,305
(1)
Finished goods inventory includes consigned inventory of $9,619,000 and $1,484,000 for 2025 and 2024,
respectively. See also Note 17 – Disaggregation of Revenues, Geographic Sales and Product Sales to the
Consolidated Financial Statements for further details.

STAAR SURGICAL COMPANY AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
F-23
Note 5 — Prepayments, Deposits and Other Current Assets
Prepayments, deposits and other current assets consisted of the following (in thousands):
2025
2024
.................................................................................
Prepayments and deposits
$
7,965
$
7,887
.......................................................................................................
Prepaid rent
682
2,910
..............................................................................................
Prepaid insurance
3,269
2,432
........................................................................................
Prepaid income taxes
1,917
658
...................................................................
Value added tax (VAT) receivable
4,242
1,359
..............................................................................................................
Other(1)
374
998
...................................
Total prepayments, deposits and other current assets
$
18,449
$
16,244
(1)
No individual category in “other” exceeds 5% of the total prepayments, deposits and other current assets.
Note 6 — Property, Plant and Equipment, Net
Property, plant and equipment, net consisted of the following (in thousands):
2025
2024
.................................................................................
Machinery and equipment
$
45,137
$
46,113
....................................................................
Computer equipment and software
10,525
12,976
........................................................................................
Furniture and fixtures
7,483
7,627
...................................................................................
Leasehold improvements
19,403
19,766
......................................................................................
Construction in process
30,340
32,014
...................................................
Total property, plant and equipment, gross
112,888
118,496
..........................................................................
Less accumulated depreciation
(39,565)
(33,607)
.......................................................
Total property, plant and equipment, net
$
73,323
$
84,889
As discussed in Note 1 – Organization and Description of Business and Accounting Policies – Restructuring,
Impairment and Related Charges, during fiscal 2025, the Company recognized fixed asset impairment expense of
$7,759,000 primarily on leasehold improvements and machinery and equipment as the Company will no longer be
using these assets. The Company also recognized impairment of $2,751,000 for internally developed software that
the Company will no longer be using as it will transition to a cloud-based software solution. These amounts are
recorded in Restructuring, impairment and related charges on the Consolidated Statement of Operations.
Construction in process primarily consists of the build out and validation of machinery and equipment.
The Company recorded depreciation expense in the following categories as follows (in thousands):
Years Ended
2025
2024
2023
...................................................................................
Cost of sales
$
3,168
$
2,518
$
1,405
.............................................................
General and administrative
3,633
2,917
1,912
.....................................................................
Selling and marketing
709
626
1,095
.............................................................
Research and development
772
683
548
.........................................................
Total depreciation expense
$
8,282
$
6,744
$
4,960
Loss on disposal of property, plant and equipment was as follows (in thousands):
Years Ended
2025
2024
2023
......................
Loss on disposal of property, plant and equipment
$
74
$
1,694
$
73
The loss recognized for the fiscal year ended 2024 consisted primarily of an asset that is no longer in use and
was recorded in selling and marketing expense on the Consolidated Statements of Operations.

STAAR SURGICAL COMPANY AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
F-24
Note 7 — Cloud-Based Software
The Company capitalized cloud-based software implementation costs related to several systems, including
enterprise resource planning and customer relationship management systems. Assets are expected to be placed into
service throughout 2026.
Capitalized cloud-based software costs, net consisted of the following (in thousands):
2025
2024
........................................................................................
Cloud-based software
$
31,527
$
15,763
.........................................................................
Less accumulated amortization
(409)
—
.....................................................................
Total cloud-based software, net
$
31,118
$
15,763
..................................................................................................................
Cloud-based software included in prepayments, deposits and other current
assets
$
418
$
—
........................................................................................
Cloud-based software
$
30,700
$
15,763
Activity related to cloud-based software was as follows (in thousands):
Years Ended
2025
2024
2023
.................................................
Additions to cloud-based software
$
15,764
$
13,357
$
2,406
............................................
Amortization of cloud-based software
409
—
—
Note 8 — Other Current Liabilities
Other current liabilities consisted of the following (in thousands):
2025
2024
..............................................................................
Accrued salaries and wages
$
12,891
$
16,140
...............................................................................................
Accrued bonuses
9,424
1,300
.........................................................................................
Severance payable(1)
894
356
............................................................................................
Accrued insurance
1,773
2,701
........................................................................................
Income taxes payable
1,304
6,547
.......................................................................................
Marketing obligations
3,397
2,699
..............................................................................................................
Other(2)
11,176
13,344
........................................................................
Total other current liabilities
$
40,859
$
43,087
(1)
As discussed in Note 1 – Organization and Description of Business and Accounting Policies – Restructuring,
Impairment and Related Charges, during fiscal year 2025, the Company recognized costs in connection with its
leadership realignment and related efforts. Of these costs, a total of $12,354,000 was recognized for severance
costs related to leadership realignment and reduction in workforce. This amount is recorded in Restructuring,
impairment and related charges on the Consolidated Statement of Operations. A majority of these severance
payments were paid during the second quarter of 2025.
(2)
No individual category in “Other” exceeds 5% of the other current liabilities.
Note 9 — 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):

STAAR SURGICAL COMPANY AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
F-25
Note 9 — Operating Leases (Continued)
2025
2024
.................................................................................
Machinery and equipment
$
773
$
758
...................................................................
Computer equipment and software
413
446
.....................................................................................................
Real property
39,824
47,648
...............................................................
Operating lease ROU assets, gross
41,010
48,852
.........................................................................
Less accumulated depreciation
(11,401)
(12,002)
...................................................................
Operating lease ROU assets, net
$
29,609
$
36,850
..................................................................
Current operating lease obligations
$
5,872
$
3,894
..............................................................
Long-term operation lease obligations
32,481
34,807
........................................................................
Total operating lease liability
$
38,353
$
38,701
...........................................
Weighted-average remaining lease term (in years)
6.7
7.1
........................................................................
Weighted-average discount rate
6.33%
5.98%
As discussed in Note 1 – Organization and Description of Business and Accounting Policies – Restructuring,
Impairment and Related Charges, during the fiscal year 2025, the Company recognized impairment on real property
right-of-use assets of $4,894,000. The impairment relates to the Company’s decision to exit three of its leased
properties, for which the Company has obtained a subtenant for one of its properties and is actively pursuing
subleasing for the other two properties. The impairment was determined based on market comparables of similar
subleased properties. The impairment is recorded in Restructuring, impairment and related charges on the
Consolidated Statements of Operations.
Supplemental cash flow information related to operating leases was as follows (in thousands):
Years Ended
2025
2024
2023
........................................................................
Operating lease cost
$
7,805
$
8,574
$
5,239
Cash paid for amounts included in the measurement of operating
lease liabilities:
...................................................................
Operating cash flows
6,891
6,016
4,875
.................................................................................
ROU assets obtained in exchange for new and amended operating
lease liabilities
3,873
8,385
8,498
Future Maturities of Lease Liabilities
Estimated future maturities of lease liabilities for operating leases having initial or remaining non-cancelable
lease terms more than one year are as follows (in thousands):
Year Ended
Operating
Leases
...................................................................................................................................................
2026
$
8,194
...................................................................................................................................................
2027
7,603
...................................................................................................................................................
2028
6,954
...................................................................................................................................................
2029
7,150
...................................................................................................................................................
2030
6,173
...........................................................................................................................................
Thereafter
12,633
.......................................................................
Total minimum lease payments, including interest
$
48,707
................................................................................................
Less amounts representing interest
(10,354)
........................................................................................................................
Total lease liability
$
38,353

STAAR SURGICAL COMPANY AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
F-26
Note 10 — Income Taxes
Provision (benefit) for Income Taxes
Income (loss) from continuing operations before provision (benefit) for income taxes was as follows (in
thousands):
Years Ended
2025
2024
2023
..........................................................................................
Domestic
$
(63,737)
$
(52,859)
$
(46,388)
.............................................................................................
Foreign
(18,526)
43,807
80,084
..............................................
Income (loss) before income taxes
$
(82,263)
$
(9,052)
$
33,696
The provision (benefit) for income taxes consisted of the following (in thousands):
Years Ended
2025
2024
2023
Current tax provision:
.................................................................................
U.S. federal
$
—
$
—
$
—
............................................................................................
State
22
27
21
........................................................................................
Foreign
1,079
7,539
9,064
...........................................................
Total current provision
1,101
7,566
9,085
Deferred tax provision (benefit):
.................................................................................
U.S. federal
—
3,738
3,306
............................................................................................
State
—
137
12
........................................................................................
Foreign
(2,916)
(285)
(54)
...........................................
Total deferred provision (benefit)
(2,916)
3,590
3,264
...................................
Provision (benefit) for income taxes
$
(1,815)
$
11,156
$
12,349
A reconciliation of the statutory U.S. federal tax rate to the Company’s effective tax rate after the adoption of
ASU 2023-09 was as follows (dollars in thousands):
Year Ended
2025
Amount
Percent
.............................................................................
US federal statutory tax rate
$
(17,275)
21.0%
.....................
State and local income taxes, net of federal income tax effect(1)
22
0.0%
Foreign tax effects
Switzerland
.....
Statutory tax rate difference between Switzerland and United States
1,898
(2.3)%
.........................................................................................................
Other
331
(0.4)%
...........................................................................
Other foreign jurisdictions
460
(0.6)%
................
Effect of changes in tax laws or rates enacted in the current period
—
0.0%
........................................................................
Effect of cross-border tax laws
587
(0.7)%
........................................................................................................
Tax credits
62
(0.1)%
.....................................................................
Changes in valuation allowances
7,334
(8.9)%
Nontaxable or nondeductible items
....................................................................................
Equity compensation
5,259
(6.4)%
.............................................................................................................
Other
153
(0.2)%
..............................................................
Changes in unrecognized tax benefits
(633)
0.8%
............................................................................................
Other adjustments
(13)
0.0%
..............................................................................................
Effective tax rate
$
(1,815)
2.2%
(1)
State taxes in California and Illinois made up the majority (greater than 50 percent) of the tax effect in this
category.

STAAR SURGICAL COMPANY AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
F-27
Note 10 — Income Taxes (Continued)
Provision for Income Taxes (Continued)
A reconciliation of the statutory U.S. federal tax rate to the Company’s effective tax rate before the adoption of
ASU 2023-09 was as follows (dollars in thousands):
Years Ended
2024
2023
Amount
Per-
cent
Amount
Per-
cent
...................................................
US federal statutory tax rate
$
(1,901)
21.0%
$
7,076
21.0%
.......................................................................................
State and local income taxes, net of federal income tax
effect
(330)
3.6%
440
1.3%
..............................................................
Equity compensation
2,237
(24.7)%
1,035
3.1%
..........................................................
Foreign rate differential
(3,902)
43.1%
(7,611)
(22.6)%
.......................................................
Foreign income inclusion
9,659
(106.7)%
16,922
50.2%
.............................................
Changes in valuation allowance
4,060
(44.9)%
(4,233)
(12.6)%
..............................................................................
Tax credits
(277)
3.1%
(930)
(2.8)%
...............................................
Return to provision adjustment
100
(1.1)%
(284)
(0.8)%
....................................
Changes in unrecognized tax benefits
1,450
(16.0)%
—
0.0%
........................................................
Non-deductible expenses
163
(1.8)%
134
0.4%
.......................................................................................
Other
(103)
1.2%
(200)
(0.6)%
...................................................
Total income tax expense
$
11,156
(123.2)%
$
12,349
36.6%
The Company has elected to recognize U.S. taxes on GILTI as a period expense in the year the tax is incurred.
Deferred Tax Assets and Liabilities
Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of
assets and liabilities for financial reporting purposes and the amounts used for income tax purposes.  Significant
components of the Company’s deferred tax assets (liabilities) were as follows (in thousands):
2025
2024
Deferred tax assets:
..........................................................................................
Accrued expenses
$
3,185
$
1,230
............................................................................
Stock-based compensation
5,271
6,103
................................................................................
Operating lease liability
6,439
6,466
........................................
Net operating loss and other credit carryforwards
50,662
44,083
...............................................................................
Other deferred tax assets
2,305
2,776
...........................................................................
Gross deferred tax assets
67,862
60,658
..................................................................................
Valuation allowance
(54,556)
(46,804)
............................................................................
Total deferred tax assets
$
13,306
$
13,854
Deferred tax liabilities:
...................................................
Property, plant, equipment and intangibles
$
(4,666)
$
(5,976)
..........................................................................
Operating lease ROU assets
(4,706)
(6,066)
.................................................................................................
Foreign taxes
(569)
(1,321)
......................................................................
Total deferred tax liabilities
(9,941)
(13,363)
......................................................................
Total net deferred tax assets
$
3,365
$
491

STAAR SURGICAL COMPANY AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
F-28
Note 10 — Income Taxes (Continued)
Deferred Tax Assets and Liabilities (Continued)
The ultimate realization of deferred tax assets is dependent upon future generation of income during the periods
in which temporary differences representing net future deductible amounts become deductible. Management
considers projected future income and tax planning strategies in making this assessment. In addition, management
considers all other available positive and negative evidence in its analysis, including existing profits in foreign
jurisdictions as well as projected future foreign profits. As of January 2, 2026, the Company determined that it is
more likely than not that the deferred tax assets of its foreign subsidiaries will be realized based on projected future
taxable income and cumulative income over the most recent three-year period. As of January 2, 2026, the Company
has incurred cumulative losses in its U.S. operation over the most recent three-year period. Based on the weight of
available positive and negative evidence, management concluded that it is more likely than not that the deferred tax
assets related to its U.S. operation will not be realized. Accordingly, the Company has maintained a full valuation
allowance against its U.S. deferred tax assets.
The deferred tax asset valuation allowance activity was as follows (in thousands):
Years Ended
2025
2024
2023
........................................................
Balance at beginning of period
$
(46,804)
$
(42,744)
$
(46,977)
................
Release (recapture) due to incremental cash tax savings
—
(4,456)
(3,318)
...............
Current year change due to deferred tax asset realization
(7,752)
396
7,551
..................................................................
Balance at end of period
$
(54,556)
$
(46,804)
$
(42,744)
As of January 2, 2026, the Company had U.S. net operating loss (“NOL”) carryforwards consisting of the
following (in thousands):
2025
Expiration Date
................
Pre-2018 federal NOL carryforwards
$
41,996
will begin to expire in 2027
..............
Post-2018 federal NOL carryforwards
124,895
indefinite
...................................
State NOL carryforwards
56,265
will begin to expire in 2026
As of January 2, 2026, the Company had U.S. tax credit carryforwards consisting of the following (in
thousands):
2025
Expiration Date
..................................
Federal credit carryforwards
$
1,994
will begin to expire in 2030
..................
State research tax credit carryforwards
1,012
indefinite
................
Federal foreign tax credit carryforwards
2,013
will begin to expire in 2028
The Company files income tax returns in the U.S. federal, various states and foreign jurisdictions. In the normal
course of business, the Company is subject to examination by taxing authorities throughout the world. The following
tax years remain subject to examination:
Significant jurisdictions
Open Years
.................................................................................................................................
U.S. Federal
2022 – 2024
...................................................................................................................................
U.S. States
2021 – 2024
........................................................................................................................................
Foreign
2021 – 2024
In various jurisdictions, years prior to 2021 remain open solely for the purposes of examination of the
Company’s NOL and credit carryforwards.

STAAR SURGICAL COMPANY AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
F-29
Note 10 — Income Taxes (Continued)
Income Taxes Paid
The income taxes paid, net of refunds received, was as follows (in thousands):
Year Ended
2025
.................................................................................................................................
U.S. federal
$
—
.............................................................................................................................
State and local
25
Foreign
.............................................................................................................................
Switzerland
5,104
.......................................................................................................................................
Japan
1,036
.......................................................................................................................................
China
1,344
.......................................................................................................................................
Other
321
........................................................................................................
Net income taxes paid
$
7,830
The amount of income taxes paid, net of refunds received, for fiscal years ended 2024 and 2023 were
$10,945,000 and $2,759,000, respectively.
Tax Holiday
The Company operates under a tax holiday in Switzerland from 2020 through 2029, which consists of two
consecutive five year periods:  2020 – 2024 and 2025 – 2029. The tax holiday is conditional upon the Company
meeting specific activity and investment requirements as outlined by the Swiss Tax Authorities. The impact of this
tax holiday is as follows (in thousands, except per share amounts):
Years Ended
2025
2024
2023
...................................................
Tax impact related to tax holidays
$
(1,894)
$
4,466
$
8,683
............
Impact of tax holidays on diluted earnings (loss) per share
$
(0.04)
$
0.09
$
0.17
Uncertain Tax Benefits
A reconciliation of the beginning and ending amount of unrecognized tax benefits, exclusive of interest, are
included in other current liabilities as income taxes payable, is as follows (in thousands):
Years Ended
2025
2024
.........................................................................
Balance at beginning of period
$
910
$
—
.......................................
Increases (decreases) - tax positions in prior period
(220)
910
...................................
Increases (decreases) - tax positions in current period
—
—
...............................................................................................
Cash settlement
(690)
—
...................................................................................
Balance at end of period
$
—
$
910
Interest expense, included in other current liabilities on the Consolidated Balance Sheet, was $0 and $540,000
for January 2, 2026 and December 27, 2024, respectively.  There were no uncertain tax positions in 2023.

STAAR SURGICAL COMPANY AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
F-30
Note 11 — Employee Benefit Plans
Defined Benefit Plan – Switzerland
The Company maintains a passive pension plan (the “Swiss Plan”) covering employees of STAAR AG, which
is accounted for as a defined benefit plan.
In Switzerland employers are required to provide a minimum pension plan for their staff. Contributions of both
the employees and employer finance the Swiss Plan. The amount of the contributions is defined by the plan
regulations and cannot be decreased without amending the plan regulations. It is required that the employer
contribute an amount equal to or greater than the employee contribution.
The following table shows the changes in the benefit obligation and plan assets and the Swiss Plan’s funded
status (in thousands):
2025
2024
Change in Projected Benefit Obligation:
.........................................
Projected benefit obligation, beginning of period
$
24,045
$
21,965
...................................................................................................
Service cost
1,689
1,233
...................................................................................................
Interest cost
247
340
...............................................................................
Participant contributions
1,155
979
..............................................................................
Benefits deposited (paid)
(1,474)
(851)
......................................................................................
Actuarial (gain) loss
1,866
692
........................................................................................
Prior service credit
(118)
(313)
...............................................
Projected benefit obligation, end of period
$
27,410
$
24,045
Change in Plan Assets:
...............................................
Plan assets at fair value, beginning of period
$
17,690
$
17,381
................
Actual return on plan assets (including foreign currency impact)
2,762
(942)
.................................................................................
Employer contributions
1,320
1,123
...............................................................................
Participant contributions
1,155
979
..............................................................................
Benefits deposited (paid)
(1,474)
(851)
......................................................
Plan assets at fair value, end of period
$
21,453
$
17,690
........................................
Funded status (pension liability), end of year(1)
$
(5,957)
$
(6,355)
Amount Recognized in Accumulated Other Comprehensive Income
(Loss), net of tax:
.........................................................................
Actuarial loss on plan assets
$
618
$
(1,364)
..............................................................
Actuarial loss on benefit obligation
(7,650)
(5,997)
.....................................................
Actuarial gain recognized in current year
2,217
1,952
........................................................................................
Prior service credit
1,155
1,242
....................................................................................
Effect of curtailments
609
610
....................................................
Accumulated other comprehensive loss
$
(3,051)
$
(3,557)
.................................................
Accumulated benefit obligation at year end
$
(25,771)
$
(22,540)
(1)
The underfunded balance was included in pension liability on the Consolidated Balance Sheets.

STAAR SURGICAL COMPANY AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
F-31
Note 11 — Employee Benefit Plans (Continued)
Defined Benefit Plan – Switzerland (Continued)
Net periodic pension cost associated with the Swiss Plan included the following components (in thousands):
Years Ended
2025
2024
2023
...................................................................................
Service cost(1)
$
1,689
$
1,233
$
916
...................................................................................
Interest cost(2)
247
340
413
......................................................
Expected return on plan assets(2)
(546)
(540)
(452)
....................................................................
Prior service credit(2),(3)
(211)
(179)
(179)
..............................
Actuarial loss recognized in current period(2),(3)
302
117
—
............................................................
Net periodic pension cost
$
1,481
$
971
$
698
(1)
Recognized in selling general and administrative expenses on the Consolidated Statements of Operations.
(2)
Recognized in other income, net, on the Consolidated Statements of Operations.
(3)
Amounts reclassified from accumulated other comprehensive income (loss).
Changes in other comprehensive income (loss), net of tax, associated with the Swiss Plan included the
following components (in thousands):
Years Ended
2025
2024
2023
............................
Current year actuarial gain (loss) on plan assets
$
1,982
$
(1,326)
$
1,316
.................
Current year actuarial gain (loss) on benefit obligation
(1,653)
(619)
(4,847)
..........................................
Actuarial gain recorded in current year
265
103
2
..........................................................................
Prior service credit
(87)
120
(161)
.....................................................................
Effect of curtailments
(1)
—
—
................................
Change in other comprehensive gain (loss)
$
506
$
(1,722)
$
(3,690)
Net periodic pension cost and projected and accumulated pension obligation for the Company’s Swiss Plan
were calculated using the following assumptions:
2025
2024
....................................................................................................
Discount rate
1.3%
1.0%
...............................................................................................
Salary increases
2.5%
2.5%
........................................................................
Expected return on plan assets
3.0%
3.0%
.......................................
Expected average remaining working lives in years
9.7
9.8
The discount rates are based on an assumed duration of the pension obligations and estimated using the rates of
returns for AAA and AA-rated Swiss and foreign CHF-denominated corporate bonds listed on the SIX Swiss
Exchange. The salary increase rate was based on the Company’s best estimate of future increases over time. The
expected long-term rate of return on plan assets is based on the expected asset allocation and assumptions
concerning long-term interest rates, inflation rates, and risk premiums for equities above the risk-free rates of return.
These assumptions take into consideration historical long-term rates of return for relevant asset categories.
Under Swiss law, pension funds are legally independent from the employer and all the contributions are
invested with regulated entities. The Company has a contract with Allianz Suisse Life Insurance Company’s BVG
Collective Foundation (the “Foundation”) to manage its Swiss pension fund. Multiple employers contract with the
Foundation to manage the employers’ respective pension plans. The Foundation manages the pension plans of its
contracted employers as a collective entity. The investment strategy is determined by the Foundation and applies to
all members of the collective Foundation. There are no separate financial statements for each employer contract. The
pension plan assets of all the employers that contract with the Foundation are comingled. They are considered
multiple-employer plans and therefore accounted for as single-employer plans.

STAAR SURGICAL COMPANY AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
F-32
Note 11 — Employee Benefit Plans (Continued)
Defined Benefit Plan – Switzerland (Continued)
As there are no separate financial statements for each employer contract, there are no individual investments
that can be directly attributed to the Company’s pension plan assets. However, the funds contributed by an employer
are specifically earmarked for its employees and the total assets of the plan allocable to Company’s employees are
separately tracked by the Foundation. The lack of visibility into the specific investments of the plan assets and how
they are valued is a significant unobservable input, therefore, the Company considers the plan assets collectively to
be Level 3 assets under the fair value hierarchy.
The table below sets forth the fair value of Plan assets at January 2, 2026 and December 27, 2024, and the
related activity in years ended 2025 and 2024 (in thousands):
Insurance
Contracts
(Level 3)
....................................................................................
Ending balance at December 29, 2023
$
17,381
....................................................................................................
Actual return on plan assets
(942)
..............................................................................................
Purchases, sales, and settlement
1,251
....................................................................................
Ending balance at December 27, 2024
$
17,690
....................................................................................................
Actual return on plan assets
2,762
..............................................................................................
Purchases, sales, and settlement
1,001
.........................................................................................
Ending balance at January 2, 2026
$
21,453
During fiscal year 2026, the Company expects to make cash contributions totaling approximately $1,387,000 to
the Swiss Plan.
The estimated future benefit payments for the Swiss Plan are as follows (in thousands):
Year Ended
Amount
.............................................................................................................................................
2026
$
93
.............................................................................................................................................
2027
122
.............................................................................................................................................
2028
3,976
.............................................................................................................................................
2029
641
.............................................................................................................................................
2030
316
....................................................................................................................................
Thereafter
809
............................................................................................................................................
Total
$
5,957
Defined Benefit Plan – Japan
STAAR Japan maintains a noncontributory defined benefit pension plan (“Japan Plan”) substantially covering
all the employees of STAAR Japan. Benefits under the Japan Plan are earned, vested, and accumulated based on a
point-system, primarily based on the combination of years of service, actual and expected future grades
(management or non-management) and actual and future zone (performance) levels of the employees. Each point
earned is worth a fixed monetary value, 1,000 Yen per point, regardless of the level grade or zone of the employee.
Gross benefits are calculated based on the cumulative number of points earned over the service period multiplied by
1,000 Yen. The mandatory retirement age limit is 60 years old.
STAAR Japan administers the pension plan and funds the obligations of the Japan Plan from STAAR Japan’s
operating cash flows. STAAR Japan is not required, and does not intend, to provide contributions to the Plan to meet
benefit obligations and therefore does not have any plan assets. Benefit payments are made to beneficiaries as they
become due.

STAAR SURGICAL COMPANY AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
F-33
Note 11 — Employee Benefit Plans (Continued)
Defined Benefit Plan – Japan (Continued)
The funded status of the benefit plan was as follows (in thousands):
2025
2024
Change in Projected Benefit Obligation:
.........................................
Projected benefit obligation, beginning of period
$
382
$
471
...................................................................................................
Service cost
56
56
...................................................................................................
Interest cost
4
3
......................................................................................
Actuarial (gain) loss
8
(40)
..................................................................................................
Benefits paid
(33)
(60)
........................................................................
Foreign exchange adjustment
1
(48)
...............................................
Projected benefit obligation, end of period
$
418
$
382
Change in Plan Assets:
................................................
Plan assets at fair value, beginning of period
$
—
$
—
..........................................................................
Actual return on plan assets
—
—
.................................................................................
Employer contributions
—
—
..................................................................................................
Benefits paid
—
—
.............................................................................
Distribution of plan assets
—
—
........................................................................
Foreign exchange adjustment
—
—
......................................................
Plan assets at fair value, end of period
$
—
$
—
........................................
Funded status (pension liability), end of year(1)
$
(418)
$
(382)
Amount Recognized in Accumulated Other Comprehensive Income
(Loss), net of tax:
.................................................................................................
Actuarial loss
$
(25)
$
(25)
...........................................................................................
Prior service cost
3
3
......................................................................................................
Settlement
(103)
(102)
....................................................................................................
Curtailment
(2)
(2)
.........................................................................................................
Net gain
180
193
..............................................
Accumulated other comprehensive income
$
53
$
67
.................................................
Accumulated benefit obligation at year end
$
(403)
$
(368)
(1)
The underfunded balance was included in pension liability on the Consolidated Balance Sheets.
Net periodic pension cost associated with the Japan Plan included the following components (in thousands):
Years Ended
2025
2024
2023
..................................................................................
Service cost(1)
$
56
$
56
$
60
..................................................................................
Interest cost(2)
4
3
3
...................................................................
Prior service credit(2),(3)
(13)
(5)
(14)
.........................................................................
Settlement gain(2),(3)
—
(10)
(160)
.......................................................................
Curtailment gain(2),(3)
—
—
(4)
............................................................
Net periodic pension cost
$
47
$
44
$
(115)
(1)
Recognized in selling general and administrative expenses on the Consolidated Statements of Operations.
(2)
Recognized in other income, net, on the Consolidated Statements of Operations.
(3)
Amounts reclassified from accumulated other comprehensive income (loss).

STAAR SURGICAL COMPANY AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
F-34
Note 11 — Employee Benefit Plans (Continued)
Defined Benefit Plan – Japan (Continued)
Changes in other comprehensive income (loss), net of tax, associated with the Japan Plan include the following
components (in thousands):
Years Ended
2025
2024
2023
.........................................................
Amortization of actuarial loss
$
—
$
3
$
2
.............................................................................
Prior service cost
—
—
(1)
............................
Actuarial income (loss) recorded in current year
(13)
4
(21)
.......................................................................................
Settlement
(1)
4
(106)
..............................................................................
Curtailment loss
—
—
(2)
...........................
Change in other comprehensive income (loss)
$
(14)
$
11
$
(128)
Net periodic pension cost and projected and accumulated pension obligation for the Company’s Japan Plan
were calculated using the following assumptions:
2025
2024
....................................................................................................
Discount rate
1.6%
0.9%
...............................................................................................
Salary increases
5.0%
5.0%
........................................................................
Expected return on plan assets
N/A
N/A
.......................................
Expected average remaining working lives in years
4.4
4.9
The discount rates are based on the yield curve of corporate bonds rated AA or higher. The salary increase
average rate was based on the Company’s best estimate of future increases over time.
The estimated future benefit payments for the Japan Plan are as follows (in thousands):
Year Ended
Amount
.............................................................................................................................................
2026
$
55
.............................................................................................................................................
2027
52
.............................................................................................................................................
2028
63
.............................................................................................................................................
2029
113
.............................................................................................................................................
2030
48
....................................................................................................................................
Thereafter
87
............................................................................................................................................
Total
$
418
Defined Contribution Plan
The Company has a 401(k) profit sharing plan (“401(k) Plan”) for the benefit of qualified employees in the U.S.
During the year ended January 2, 2026, employees who participate may elect to make salary deferral contributions
to the 401(k) Plan up to $23,500 of the employees’ eligible payroll subject to annual Internal Revenue Code
maximum limitations (with a $7,500 annual catch-up contribution permitted for those over 50 years old). The
Company’s contribution percentage is 80% of the employee’s contribution up to the first 6% of the employee’s
compensation. In addition, STAAR may make a discretionary contribution to qualified employees, in accordance
with the 401(k) Plan. The Company’s contributions, net of forfeitures, to the 401(k) Plan were as follows (in
thousands):
Years Ended
2025
2024
2023
......................................
Employer contributions, net of forfeitures
$
2,770
$
3,379
$
2,720

STAAR SURGICAL COMPANY AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
F-35
Note 12 — Stockholders’ Equity
Incentive Plan
The Company maintains an Amended and Restated Omnibus Equity Incentive Plan, as amended (the “Equity
Plan”). The Equity Plan allows for awards of stock options, stock appreciation rights, restricted stock, RSUs, PSUs
and other stock- and cash-based awards, including awards that are subject to service-based and performance-based
vesting conditions. As of January 2, 2026, the Company had outstanding grants of stock options, RSUs and PSUs.
Stock options 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, 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, the Company’s stockholders approved a proposal to increase the number of shares that may be
issued pursuant to stock-based awards granted under the Equity Plan, which increased the share pool by 2,170,000
shares. On June 19, 2024, the Company’s stockholders approved a proposal to increase the number of shares that
may be issued pursuant to stock-based awards granted under the Equity Plan, which increased the share pool by
2,600,000 shares. As a result of such increases, a total of 22,805,000 shares may be issued pursuant to stock-based
awards granted under the Equity Plan. As of January 2, 2026, there were 1,310,727 shares available for grants of
stock-based awards under the Equity Plan.
Stock-Based Compensation
The following table represents the fair value of stock-based compensation granted during the year ended 2025
(in thousands):
Fair Value
..............................................................................................................................
Stock options
$
1,214
...........................................................................................................................................
RSUs
22,560
...........................................................................................................................................
PSUs
14,463
...............................................................................
Total stock-based compensation expense
$
38,237
The Company recorded stock-based compensation expense by award as follows (in thousands):
Years Ended
2025
2024
2023
..................................................................
Employee stock options
$
7,190
$
13,824
$
12,842
..............................................................................
Restricted stock
302
512
548
...............................................................................................
RSUs
13,382
11,623
7,213
...............................................................................................
PSUs
7,645
568
1,270
...........................................................
Nonemployee stock options
553
567
869
.......................................................................
Nonemployee RSUs
1,516
116
774
...................................
Total stock-based compensation expense
$
30,588
$
27,210
$
23,516
The Company recorded stock-based compensation expense in the following categories (in thousands):
Years Ended
2025
2024
2023
.....................................................................................
Cost of sales
$
665
$
1,192
$
716
..............................................................
General and administrative
17,615
14,122
12,125
......................................................................
Selling and marketing
5,306
4,583
4,083
..............................................................
Research and development
7,002
7,313
6,592
.............................
Total stock-based compensation expense, net
30,588
27,210
23,516
........................................
Amounts capitalized as part of inventory
702
1,408
1,672
.........................
Total stock-based compensation expense, gross
$
31,290
$
28,618
$
25,188

STAAR SURGICAL COMPANY AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
F-36
Note 12 — Stockholders’ Equity (Continued)
Stock-Based Compensation (Continued)
As of January 2, 2026, total unrecognized compensation cost related to non-vested stock-based compensation
arrangements granted under the Equity Plan were as follows (in thousands):
2025
...............................................................................................................................
Stock options
$
5,068
...............................................................................................
Restricted stock, RSUs and PSUs
26,848
.................................................................
Total unrecognized stock-based compensation cost
$
31,916
This cost is expected to be recognized over a weighted-average period of approximately two years.
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.
Years Ended
2025
2024
2023
................................................................
Expected dividend yield
0%
0%
0%
........................................................................
Expected volatility
60%
59%
60%
....................................................................
Risk-free interest rate
4.07%
4.17%
3.98%
...............................................................
Expected term (in years)
5.05
5.29
5.05
Stock Options
A summary of stock option activity under the Equity Plan for the year ended January 2, 2026 was as follows:
Shares
(in 000’s)
Weighted-
Average
Exercise
Price
Weighted-
Average
Remaining
Contractual
Term
(years)
Aggregate
Intrinsic
Value
(in 000’s)
..................................
Outstanding at December 27, 2024
2,808
$
45.72
.............................................................................
Granted
121
18.22
...........................................................................
Exercised
(221)
15.66
..........................................................
Forfeited or expired
(992)
50.48
........................................
Outstanding at January 2, 2026
1,716
$
44.85
6.13
$
2,263
.........................................
Exercisable at January 2, 2026
1,370
$
48.02
5.53
$
1,604
A summary of unvested stock options activity under the Equity Plan for the year ended January 2, 2026 was as
follows:

STAAR SURGICAL COMPANY AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
F-37
Note 12 — Stockholders’ Equity (Continued)
Stock Options (Continued)
Shares
(in 000’s)
Weighted-
Average
Grant-Date
Fair Value
........................................................................
Unvested at December 27, 2024
982
$
23.62
...............................................................................................................
Granted
121
10.04
............................................................................................
Forfeited or expired
(370)
24.42
.................................................................................................................
Vested
(387)
24.13
..............................................................................
Unvested at January 2, 2026
346
$
17.90
The weighted average grant date fair value of stock options granted under the Equity Plan and the total intrinsic
value of stock options exercised were as follows:
Years Ended
2025
2024
2023
..........................................
Weighted-average grant-date fair value
$
10.04
$
21.12
$
28.36
.........................
Intrinsic value of options exercised (in thousands)
$
2,027
$
4,150
$
17,041
Restricted Stock, Restricted Stock Units and Performance Stock Units
A summary of restricted stock, RSU and PSU activity under the Equity Plan for the year ended January 2, 2026
was as follows:
Restricted Stock
Restricted Stock Units
Performance Stock Units
Units
(in 000’s)
Weighted-
Average
Grant-
Date Fair
Value
Units
(in 000’s)
Weighted-
Average
Grant-
Date Fair
Value
Units
(in 000’s)
Weighted-
Average
Grant-
Date Fair
Value
...............
Outstanding at December 27, 2024
16
$
40.11
695
$
43.33
406
$
39.99
..........................................................
Granted
—
—
1,281
17.61
849
17.04
............................................................
Vested
(16)
40.11
(321)
42.41
(20)
74.80
........................................................
Forfeited
—
—
(196)
33.48
(433)
35.93
.....................
Outstanding at January 2, 2026
—
$
—
1,459
$
22.29
802
$
17.04
The weighted average grant date fair value of restricted stock, RSU and PSU awards granted under the Equity
Plan and the total fair value of awards vested were as follows:
Years Ended
2025
2024
2023
..........................................
Weighted-average grant-date fair value
$
17.38
$
37.73
$
52.98
.....................................
Fair value of awards vested (in thousands)
$
7,280
$
6,283
$
7,715
Share Repurchase Program
In May 2025, the Company’s Board of Directors authorized a share repurchase program under which the
Company may repurchase up to $30 million of its outstanding common stock. Under the program, the Company
may repurchase shares in the open market, through privately negotiated transactions, by entering into structured
repurchase agreements with third parties, by making block purchases, and/or pursuant to Rule 10b5-1 trading plans.
The timing, manner, price, and amount of any repurchases under the program will be determined by the Company in
its discretion, subject to market conditions, legal requirements, and other considerations. The Company is not
obligated to repurchase any specific number of shares, and the program may be modified, suspended, or
discontinued at any time, without prior notice. During fiscal 2025 the Company purchased 375,630 shares, for an
aggregate of $6,461,000, pursuant to its share repurchase program. As of January 2, 2026, $23,539,000 remained
available for repurchases pursuant to the program.

STAAR SURGICAL COMPANY AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
F-38
Note 13 — Commitments and Contingencies
Asset Retirement Obligation
The Company recorded certain Asset Retirement Obligations (“ARO”), in connection with the Company’s
obligation to return its Japan facility to its “original condition,” as defined in the lease agreements. The Company
has recorded approximately $45,000 and $42,000, representing the fair value of the ARO liability obligations in
noncurrent liabilities at January 2, 2026 and December 27, 2024, respectively. These leases expire in 2027 and 2029.
Open Purchase Orders
As of January 2, 2026, there were open purchase orders of $18,069,000.
Severance Paid
For fiscal year 2025, see Notes 1 – Organization and Description of Business and Accounting Policies –
Restructuring, Impairment and Related Charges and 8 – Other Current Liabilities to the Consolidated Financial
Statements. For fiscal year 2023, the Company recognized expense of $1,392,000 for one-time employee benefits
paid to certain employees in STAAR Japan who worked primarily in cataract IOL sales. These one-time employee
benefits were recognized in general and administrative expense on the Consolidated Statements of Operations.
Indemnification Agreements
The Company has entered into indemnification agreements with its directors and officers that may require the
Company: (a) to indemnify them against liabilities that may arise by reason of their status or service as directors or
officers, except as prohibited by applicable law; (b) to advance their expenses incurred as a result of any proceeding
against them as to which they could be indemnified; and (c) to make a good faith determination whether or not it is
practicable for the Company to obtain directors’ and officers’ insurance. The Company currently has directors’ and
officers’ liability insurance through a third-party carrier. Also, in connection with the sale of products and entering
into business relationships in the ordinary course of business, the Company may make representations affirming,
among other things, that its products do not infringe on the intellectual property rights of others and agrees to
indemnify customers against third-party claims for such infringement as well as its negligence. The Company has
not been required to make material payments under such provisions.
Tax Filings
The Company’s tax filings are subject to audit by taxing authorities in jurisdictions where it conducts business.
These audits may result in assessments of additional taxes that are subsequently resolved with the authorities or
potentially through the courts. Management believes the Company has adequately provided for taxes; however, final
assessments, if any, could be significantly different than the amounts recorded in the Consolidated Financial
Statements.
Executive Agreements
The Company has entered into agreements with certain of its executives that provide for severance payments
and benefits upon termination of employment by the Company without “cause” or by the executive for “good
reason” as defined in the applicable agreements. Certain executives are also party to agreements that provide for
enhanced payments and benefits in connection with a termination of employment upon a “change in control.”
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. STAAR 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.

STAAR SURGICAL COMPANY AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
F-39
Note 14 — Related Party Transactions
The Company has made various advances to certain non-executive employees. Amounts due from employees
are included in prepayments, deposits, and other current assets were as follows (in thousands):
2025
2024
..........................................................................................
Due from employees
$
301
$
3
Note 15 — Supplemental Disclosure of Cash Flow Information
The Company’s non-cash investing and financing activities, and cash paid were as follows (in thousands):
Years Ended
2025
2024
2023
Non-cash investing and financing activities:
........................................................................................
Purchase of property and equipment included in accounts
payable
$
369
$
3,118
$
2,768
Cash paid:
........................................................................................
Interest
$
122
$
87
$
75
See Note 10 – Income Taxes, for cash paid for income taxes.
Note 16 — Basic and Diluted Net Income (Loss) Per Share
The following table sets forth the computation of basic and diluted net income (loss) per share (in thousands
except per share amounts):
Years Ended
2025
2024
2023
Numerator:
........................................................................
Net income (loss)
$
(80,448)
$
(20,208)
$
21,347
Denominator:
..........................
Weighted average common shares outstanding
49,568
49,125
48,523
...........
Weighted average common shares outstanding for basic
49,568
49,125
48,523
Dilutive potential common stock outstanding:
..........................................................................
Stock options
—
—
813
........................................................
Unvested restricted stock
—
—
3
.......................................................................................
RSUs
—
—
56
.......................................................................................
PSUs
—
—
32
........
Weighted average common shares outstanding for diluted
49,568
49,125
49,427
Net income (loss) per share:
...........................................................................................
Basic
$
(1.62)
$
(0.41)
$
0.44
........................................................................................
Diluted
$
(1.62)
$
(0.41)
$
0.43
Because the Company had a net loss for 2025 and 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.
Years Ended
2025
2024
2023
.....................................................................................
Stock options
5,253
4,166
2,073
.....................................................
Restricted stock, RSUs and PSUs
778
212
32
..............................................................................................
Total
6,031
4,378
2,105

STAAR SURGICAL COMPANY AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
F-40
Note 17 — Disaggregation of Revenues, Geographic Sales and Product 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 no longer intends to sell any such products. The
composition of the Company’s net sales is primarily related to ICL sales. Net sales include sales of delivery systems
and normal recurring sales adjustments such as sales return allowances, and for fiscal year 2023, IOL sales. In the
following tables, sales are disaggregated by category and sales by geographic market data.
The Company maintains finished goods inventory at different sites in the United States, Switzerland and Japan,
and from time to time, consigns or ships finished goods inventory to surgeons, hospitals, and distributors in advance
of anticipated demand. The Company maintains title and risk of loss on consigned inventory and generally does not
recognize revenue for consignment inventory until the Company is notified that the lenses have been implanted. The
following table disaggregates the Company’s consignment sales (in thousands):
Years Ended
2025
2024
2023
...................................................................
Non-consignment sales
$
178,992
$
293,573
$
301,163
..........................................................................
Consignment sales
60,450
20,328
21,252
.............................................................................
Total net sales
$
239,442
$
313,901
$
322,415
In April 2025, in order to mitigate potential financial exposure from tariffs imposed by China, the Company
negotiated and implemented consignment agreements with its two distributors in China and delivered consigned
inventory to its distributors in advance of the implementation of tariffs and delivered additional consignment
inventory throughout fiscal 2025. As consigned inventory in China is purchased by the Company’s distributors,
revenue associated with such consigned inventory will be recorded as consignment sales. China consignment sales
for fiscal 2025 were $43,534,000.
The Company’s product is marketed and sold in more than 85 countries and its product is manufactured in the
United States and Switzerland. Sales are attributed to countries based on location of customers. During 2025, the
presentation of immaterial amounts related to normal recurring sales adjustments previously presented in foreign
other sales are presented in the countries these normal recurring sales adjustments are attributable to. Prior period
amounts have been conformed to current presentation in the following table. The composition of the Company’s net
sales to unaffiliated customers was as follows (in thousands):
Years Ended
2025
2024
2023
.........................................................................................
Domestic
$
22,558
$
19,896
$
17,221
Foreign:
........................................................................................
China(1)
77,781
162,287
184,569
...........................................................................................
Japan
45,265
41,814
38,468
........................................................................................
Other(2)
93,838
89,904
82,157
..................................................................
Total foreign sales
216,884
294,005
305,194
.....................................................................
Total net sales
$
239,442
$
313,901
$
322,415
(1)
The China region includes sales into China and Hong Kong.
(2)
No other location individually exceeds 10% of the total net sales.
The Company sells its products internationally, which subjects the Company to several potential risks, including
fluctuating exchange rates (to the extent the Company’s transactions are not in U.S. dollars), regulation of fund
transfers by foreign governments, U.S. and foreign export and import duties and tariffs, and political instability.

STAAR SURGICAL COMPANY AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
F-41
Note 18 — Geographic Assets
The Company’s long-lived assets are located in the following geographical locations in which the Company
operates. Other than the U.S. and Switzerland, no other geographic location exceeds 10% of each category of long-
lived assets. The composition of the Company’s long-lived assets was as follows (in thousands):
2025
U.S.
Switzerland
Other(1)
Total
...................................
Property, plant and equipment, net
$
55,621
$
17,311
$
391
$
73,323
......................................
Operating lease ROU assets, net
21,454
5,346
2,809
29,609
.......................................................
Cloud-based software
30,700
—
—
30,700
..............................................................................
Total
$
107,775
$
22,657
$
3,200
$
133,632
2024
U.S.
Switzerland
Other(1)
Total
...................................
Property, plant and equipment, net
$
68,318
$
16,084
$
487
$
84,889
..........................................
Finance lease ROU assets, net
37
—
—
37
......................................
Operating lease ROU assets, net
27,754
6,414
2,682
36,850
.......................................................
Cloud-based software
15,763
—
—
15,763
..............................................................................
Total
$
111,872
$
22,498
$
3,169
$
137,539
(1)
No other location individually exceeds 10% of each category of long-lived assets.
Note 19 — Subsequent Events
On January 6, 2026, the Company held a special meeting of stockholders (the “Special Meeting”) to vote on the
Merger with Alcon. At the Special Meeting, the Company’s stockholders voted against the Merger, and the Merger
Agreement was terminated in accordance with its terms effective January 6, 2026. None of the Company, Alcon or
Merger Sub was required to pay any termination fee as a result of the termination of the Merger Agreement, and the
parties are responsible for their respective costs and expenses related to the Merger Agreement and the transactions
contemplated thereby.
Following the termination of the Merger Agreement, on January 14, 2026, the Company entered into a letter
agreement (the “Cooperation Agreement”) with Broadwood Partners, L.P. and its affiliates (“Broadwood”), the
Company’s largest stockholder. Pursuant to the Cooperation Agreement, the Company increased the size of the
Board of Directors of the Company (the “Board”) from six to seven directors, accepted the resignations of Stephen
C. Farrell and Elizabeth Yeu, M.D. from the Board, and appointed each of Neal C. Bradsher, Richard T. LeBuhn
and Christopher Min Fang Wang (each a “New Director”) to the Board. Additionally, the Company agreed that the
Board will nominate each of the New Directors as a candidate for election as a director at the 2026 annual meeting
of stockholders of the Company and that the size of the Board until the conclusion of the 2027 annual meeting of
stockholders of the Company will not exceed seven directors.
In connection with the Company’s entry into the Cooperation Agreement, Mr. Farrell entered into a letter
agreement with the Company, dated as of January 14, 2026 (the “Letter Agreement”), that provided for Mr. Farrell’s
resignation from the Board and the termination of Mr. Farrell’s employment as Chief Executive Officer.
Mr. Farrell’s termination of employment was effective as of January 31, 2026, and was treated as a termination by
the Company without cause for all purposes. Mr. Farrell has agreed to provide consulting services to the Company
for a period of one year, for which Mr. Farrell will receive consulting fees of $45,000 per month. The Letter
Agreement provides that, in accordance with Mr. Farrell’s Employment Agreement with the Company, dated as of
February 26, 2025 (the “Employment Agreement”), Mr. Farrell will be eligible to receive certain Accrued Benefits
and Severance Benefits (as each such term is defined in the Employment Agreement), and that Mr. Farrell’s
unvested RSUs and PSUs will continue to be earned, vest and be settled during the one-year consulting period.

STAAR SURGICAL COMPANY AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
F-42
Note 19 — Subsequent Events (Continued)
The Cooperation Agreement also provided for the reimbursement to Broadwood, Yunqi Capital and Defender
Capital of certain reasonable and documented out-of-pocket fees and expenses they have incurred of approximately
$7,000,000. The Company expects to pay such amounts in the first quarter of fiscal 2026.
On January 15, 2026, Mr. Bradsher was elected as Board Chair, to serve in accordance with the Company’s
amended and restated bylaws.
On February 1, 2026, the Company appointed Warren Foust and Deborah Andrews as interim Co-Chief
Executive Officers, effective February 1, 2026. The Company has established a Search Committee of the Board,
which has initiated a global search for the Company’s next Chief Executive Officer, including both internal and
external candidates.

F-43
STAAR SURGICAL COMPANY AND SUBSIDIARIES
SCHEDULE II — VALUATION AND QUALIFYING ACCOUNTS AND RESERVES
Column A
Column B
Column C - Additions
Column D
Column E
Description
Balance at
Beginning
of Year
Charged to
costs and
expenses
Charged to
other
accounts
Deductions
Balance at
End of
Year
(in thousands)
2025
................................
Allowance for credit losses
$
32
$
71
$
—
$
20
$
83
............................................
Sales return reserve
6,579
24,644
—
21,024
10,199
..............
Deferred tax asset valuation allowance
46,804
—
—
(7,752)
54,556
$
53,415
$
24,715
$
—
$
13,292
$
64,838
2024
................................
Allowance for credit losses
$
191
$
9
$
—
$
168
$
32
............................................
Sales return reserve
6,174
17,754
—
17,349
6,579
..............
Deferred tax asset valuation allowance
42,744
4,456
—
396
46,804
$
49,109
$
22,219
$
—
$
17,913
$
53,415
2023
................................
Allowance for credit losses
$
20
$
171
$
—
$
—
$
191
............................................
Sales return reserve
5,706
15,967
—
15,499
6,174
..............
Deferred tax asset valuation allowance
46,977
3,318
—
7,551
42,744
$
52,703
$
19,456
$
—
$
23,050
$
49,109

F-44
STAAR Surgical Company
Corporate Information
BOARD OF DIRECTORS
Neal C. Bradsher
Founder and President,
Broadwood Capital, Inc.
Arthur Butcher
Executive Vice President and Group President,
MedSurg and Asia Pacific, Boston Scientific
Wei Jiang
Former Executive Vice President and President,
Bayer Pharmaceuticals Region China & APAC,
and President, Bayer Group Greater China Region
Richard T. LeBuhn
Executive Vice President,
Broadwood Capital, Inc.
Louis E. Silverman
Chairman and Chief Executive Officer,
Hicuity Health
Christopher M. Wang
Founder and Chief Investment Officer,
Yunqi Capital
Lilian Y. Zhou
Founder and Former Chief Investment Officer,
Yulan Capital Management
EXECUTIVE OFFICERS
Warren Foust
Interim Co-Chief Executive Officer,
President and Chief Operating Officer
Deborah Andrews
Interim Co-Chief Executive Officer and
Chief Financial Officer
Magda Michna, Ph.D.
Chief Development Officer
_____________________________
CORPORATE
HEADQUARTERS
STAAR Surgical Company
25510 Commercentre Drive
Lake Forest, California 92630
STOCKHOLDER INFORMATION
STAAR Investor
Relations
investorrelations@staar.com
Independent Registered
Public Accounting Firm
BDO USA, P.C.
Stock Transfer
Agent
Equiniti Trust Company LLC
About STAAR Surgical
STAAR Surgical (NASDAQ: STAA) is the global leader in implantable phakic intraocular lenses, a vision
correction solution that reduces or eliminates the need for glasses or contact lenses. Since 1982, STAAR has been
dedicated solely to ophthalmic surgery, and for 30 years, STAAR has been designing, developing, manufacturing,
and marketing advanced Implantable Collamer® Lenses (ICLs), using its proprietary biocompatible Collamer
material. STAAR ICL’s are clinically-proven to deliver safe long-term vision correction without removing corneal
tissue or the eye’s natural crystalline lens. Its EVO ICL™product line provides visual freedom through a quick,
minimally invasive procedure. STAAR has sold more than 4 million ICLs in over 85 countries. Headquartered in
Lake Forest, California, the company operates research, development, manufacturing, and packaging facilities in
California and Switzerland.