# EDGAR Filing Document

**Accession Number:** 0000718937
**File Stem:** 0001564590-23-002118
**Filing Date:** 2023-2
**Character Count:** 32917
**Document Hash:** 03472d7ea738a6ace3c5b5daa10beeb0
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001564590-23-002118.hdr.sgml**: 20230221

**ACCESSION NUMBER**: 0001564590-23-002118

**CONFORMED SUBMISSION TYPE**: 8-K

**PUBLIC DOCUMENT COUNT**: 14

**CONFORMED PERIOD OF REPORT**: 20230221

**ITEM INFORMATION**: Results of Operations and Financial Condition

**ITEM INFORMATION**: Financial Statements and Exhibits

**FILED AS OF DATE**: 20230221

**DATE AS OF CHANGE**: 20230221

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** STAAR SURGICAL CO
- **CENTRAL INDEX KEY:** 0000718937
- **STANDARD INDUSTRIAL CLASSIFICATION:** OPHTHALMIC GOODS [3851]
- **IRS NUMBER:** 953797439
- **STATE OF INCORPORATION:** DE
- **FISCAL YEAR END:** 1230

**FILING VALUES:**
- **FORM TYPE:** 8-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 000-11634
- **FILM NUMBER:** 23648103

**BUSINESS ADDRESS:**
- **STREET 1:** 1911 WALKER AVE
- **CITY:** MONROVIA
- **STATE:** CA
- **ZIP:** 91016
- **BUSINESS PHONE:** 6263037902

**MAIL ADDRESS:**
- **STREET 1:** 1911 WALKER AVE
- **CITY:** MONROVIA
- **STATE:** CA
- **ZIP:** 91016

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** STAAR SURGICAL COMPANY
- **DATE OF NAME CHANGE:** 19920703

?xml version="1.0" encoding="utf-8"? staa-8k_20230221.htm

### U N IT E D S T A T ES

### S E C U R IT I E S A N D E X CHA N GE CO M MISSION

#### WAS H IN G TON, DC 2 0549

------

### FORM 8-K

------

#### CURRENT REPORT

#### P u r s u a n t t o S e c tion 13 or 15(d) of t h e S ec u r ities Excha n ge A c t of 1934

#### Da t e of re p o r t (D a t e of e a r l i e st e v e n t r e p o r t e d) : February 21, 2023

------

### STAAR Surgical Company

#### (Ex act N a m e of Re g i s trant a s S p ecified i n Charter)

------

---

| | | |
|:---|:---|:---|
| Delaware | 0-11634 | 95-3797439 |
| **(State or Other Jurisdiction**<br> **of Incorporation)** | **(Commission File Number)** | **(IRS Employer**<br> **Identification No.)** |
| 25651 Atlantic Ocean Drive<br> Lake Forest, California |  | 92630 |
| **(Address of Principal Executive Offices)** |  | **(Zip Code)** |

---

#### Registrant's Telephone Number, Including Area Code: 626 -303-7902
Not Applicable

#### (Former Name or Former Address, if Changed Since Last Report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (*see* General Instruction A.2. below):

☐ Written communication pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communication pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communication pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

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

---

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

---

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1 933 (17 CFR §230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR §240.12b-2).

Emerging growth company ☐

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

------

#### Item 2.02 Results of Operations and Financial Condition.
On February 21, 2023, STAAR Surgical Company (the "Company") published a press release reporting its financial results for the quarter and full year ended December 30, 2022, a copy of which is furnished as Exhibit 99.1 to this report and is incorporated herein by this reference.

This information and the information contained in the press release shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that section. The information in Item 2.02 of this Current Report, and Exhibit 99.1 are not incorporated by reference into any filings of STAAR made under the Securities Act of 1933, as amended, whether made before or after the date of this Current Report, regardless of any general incorporation language in the filing unless specifically stated so therein.

#### Item 9.01 Financial Statements and Exhibits

---

| | |
|:---|:---|
| Exhibit No. | Description |
| 99.1 | [<u>Press release of the Company dated February 21, 2023</u>](staa-ex991_31.htm). |
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document). |

---

------

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

---

| | | |
|:---|:---|:---|
| STAAR Surgical Company  | STAAR Surgical Company  | STAAR Surgical Company  |
| February 21, 2023 | By: | <u>/s/ Tom Frinzi</u> |
|  |  | Thomas G. Frinzi |
|  |  | President and Chief Executive Officer |

---

## Exhibit 99.1

Exhibit 99.1

![](govk1d5lezuh000001.jpg)

#### STAAR Surgical Reports Fourth Quarter and Fiscal Year 2022 Results
*ICL Unit Growth Up 33% Y/Y in Fiscal 2022*

*STAAR Reaffirms Outlook for Strong Trajectory of Growth in 2023*

**LAKE FOREST, CA, February 21, 2023 --- STAAR Surgical Company (NASDAQ: STAA), a leading developer, manufacturer and marketer of implantable lenses for the eye, today reported financial results for the fourth quarter and fiscal year ended December 30, 2022.**

#### Fourth Quarter 2022 Overview
• Net Sales of $64.0 Million Up 9% and Constant Currency Net Sales of $67.9 Million Up 15% from Prior Year Quarter

• ICL Sales of $61.2 Million Up 15% and Constant Currency ICL Sales of $64.3 Million Up 21% from Prior Year Quarter

• ICL Units Up 20% from the Prior Year Quarter

• Gross Margin at 77.7% vs. 76.3% in the Prior Year Quarter

• Net Income of $0.12 per Share vs. $0.10 per Share in the Prior Year Quarter

• Cash, Cash Equivalents and Investments Available for Sale Ended the Quarter at $225.5 Million

#### Fiscal Year 2022 Overview
• Net Sales of $284.4 Million Up 23% and Constant Currency Net Sales of $297.3 Million Up 29% from Prior Year

• ICL Sales of $269.7 Million Up 27% and Constant Currency Net Sales of $280.0 Million Up 32% from Prior Year

• ICL Units Up 33% from the Prior Year

• Gross Margin at 78.5% of Sales from 77.5% of Sales in the Prior Year

• Full Year Net Income of $0.78 per Share vs. Prior Year Net Income of $0.50 per Share

"Our fourth quarter and fiscal 2022 results continue STAAR's multi-quarter track record of industry leading growth with fiscal 2022 global ICL sales up 27% and in constant currency up 32% and units up 33% year over year. These levels of ICL growth exceed the ambitious goals we previously announced for 2022. Moreover, our growth significantly outpaced the roughly flat growth for refractive industry procedures over the same period<sup>1</sup>," said Tom Frinzi, President and CEO of STAAR Surgical. "For the fourth quarter ICL unit growth was up 20% year over year, including U.S. units up 109% and China units up 18%. In China, transient COVID-related headwinds that impacted our results in the fourth quarter are subsiding as we move through the first quarter of 2023. Our outlook for fiscal 2023 total ICL sales is approximately $340 million, which represents 26% year over year growth. STAAR will move forward in 2023 with purpose and increased investment to further accelerate consumer awareness, surgeon confidence and adoption of our EVO ICL family of lenses, all while continuing our industry leading position as a high growth and profitable ophthalmic medical device company."

#### Financial Overview – Q4 2022
Net sales were $64.0 million for the fourth quarter of 2022, up 9% compared to $59.0 million reported in the prior year quarter. Changes in currency, primarily the Japanese Yen as well as the Euro, negatively impacted reported net sales by $3.8 million for the fourth quarter of 2022. The sales increase in the fourth quarter was driven by ICL sales and unit growth of 15% and 20%, respectively, as compared to the prior year period. Other Product sales decreased 52% compared to the prior year quarter. ICL sales were 96% of total net sales for the fourth quarter of 2022.

<sup>1</sup> STAAR Market Share Refractive Procedures and ICL Trends proprietary model as of January 12, 2023 estimates 4,322,688 global refractive procedures in 2022 and 4,345,812 refractive procedures in 2021, a 0.53% decline Y/Y.

------

Gross profit margin for the fourth quarter of 2022 was 77.7% compared to the prior year quarter of 76.3%. Factors impacting the favorability in gross margin in the fourth quarter of 2022, as compared to the prior year quarter, include product and geographic mix, partially offset by increased period costs associated with manufacturing projects.

Operating expenses for the fourth quarter of 2022 were $48.8 million compared to the prior year quarter of $37.6 million. General and administrative expenses were $14.8 million compared to the prior year quarter of $11.5 million. The increase in general and administrative expenses was due to increased compensation related expenses, facilities costs and outside services. Selling and marketing expenses were $24.2 million compared to the prior year quarter of $17.1 million. The increase in selling and marketing expenses is due to increased advertising and promotional activities, trade shows and sales meetings, travel expenses and compensation related expenses. Research and development expenses were $9.8 million compared to the prior year quarter of $9.1 million. The increase in research and development expenses is due to increased clinical trial expenses related to U.S. post-approval studies.

Net income for the fourth quarter of 2022 was $5.9 million or $0.12 per diluted share compared with net income of $4.9 million or $0.10 per diluted share for the prior year quarter. The year over year increase in net income is attributable to higher other income, gross profit and a lower provision for income taxes, offset by increased SG&A expenses. Adjusted Net Income for the fourth quarter of 2022 was $6.8 million or $0.14 per diluted share compared to $9.5 million or $0.19 per diluted share for the prior year quarter. The reconciliation between GAAP and non-GAAP financial information is provided in the financial tables included with this release.

#### Financial Overview – Fiscal Year 2022
Net sales were $284.4 million for fiscal year 2022, up 23% compared to $230.5 million reported in the prior year. The increase in Net sales was driven by ICL sales and unit growth of 27% and 33%, respectively. Other Products Sales decreased 16% compared to the prior year. ICL sales were 95% of total Net sales for fiscal 2022 and 92% of total Net sales for fiscal 2021. Changes in currency, primarily in the Japanese Yen as well as the Euro, negatively impacted reported total net sales by $12.9 million for fiscal year 2022.

Gross profit margin for fiscal year 2022 increased to 78.5% of total net sales compared to 77.5% of total net sales for fiscal year 2021. The increase in gross margin for the year is due to geographic sales mix and an increased mix of ICL sales which carry a higher margin, partially offset by increased period costs associated with the manufacturing expansion projects.

Operating expenses for fiscal year 2022 were $179.6 million compared to $145.3 million in the prior year. The 24% increase in operating expense is primarily due to higher marketing, promotion and advertising, compensation-related expenses, tradeshows and sales meetings and facilities costs.

Net income for fiscal year 2022 was $38.8 million or $0.78 per diluted share compared with net income of $24.5 million or $0.50 per diluted share for the prior year. The year over year increase in net income is due to higher gross profit and other income, primarily from changes in interest income and foreign currency transactions, partially offset by increased SG&A expenses. Adjusted Net Income for fiscal year 2022 was $60.0 million or $1.22 per diluted share, compared with an Adjusted Net Income of $42.9 million or $0.87 per diluted share for fiscal year 2021. The reconciliation between GAAP and non-GAAP financial information is provided in the financial tables included with this release.

Cash, cash equivalents, short-term and long-term investments available for sale at December 30, 2022 totaled $225.5 million, compared to $199.7 million at end of the fourth quarter of 2021. The Company generated $35.7 million in cash from operations for fiscal year 2022 and invested $18.1 million in property and equipment.

#### Conference Call
The Company will host a conference call and webcast today, Tuesday, February 21 at 4:30 p.m. Eastern / 1:30 p.m. Pacific to discuss its financial results and operational progress. To access the conference call (Access Code 268065), please dial 844-200-6205 for domestic participants and 929-526-1599 for international participants. The live webcast can be accessed from the investor relations section of the STAAR website at <u>www.staar.com</u>.

------

A taped replay of the conference call (Replay Code 120085) will be available beginning approximately one hour after the call's conclusion for seven days. This replay can be accessed by dialing 866-813-9403 for domestic callers and 929-458-6194 for international callers. An archived webcast will also be available at <u>www.staar.com</u>.

#### Use of Non-GAAP Financial Measures
This press release includes supplemental non-GAAP financial information, which STAAR believes investors will find helpful in understanding its operating performance. "Adjusted Net Income" excludes the following items that are included in "Net Income" as calculated in accordance with U.S. generally accepted accounting principles ("GAAP"): gain or loss on foreign currency transactions, stock-based compensation expenses, and valuation allowance adjustments. Management believes that "Adjusted Net Income" is useful to investors in gauging the outcome of the key drivers of the business performance: the ability to increase sales revenue and our ability to increase profit margin by improving the mix of high value products while reducing the costs over which management has control.

Management has excluded gains and losses on foreign currency transactions because of the significant fluctuations that can result from period to period as a result of market driven factors. Stock-based compensation expenses consist of expenses for stock options and restricted stock under the Financial Accounting Standards Board's Accounting Standards Codification (ASC) 718. Valuation allowance adjustments can occur from time to time based on forecasted changes in operating results until all net operating loss carryforwards are fully utilized. In calculating Adjusted Net Income, STAAR excludes stock-based compensation expenses and valuation allowance adjustments because they are non-cash expenses and because of the considerable judgment involved in calculating their values. In addition, these expenses tend to be driven by fluctuations in the price of our stock and not by the same factors that generally affect our other business expenses.

The Company also uses Constant Currency as a Non-GAAP financial measure to exclude the effects of currency fluctuations on net sales. The Company conducts a significant part of its activities outside the U.S. It receives sales revenue and pays expenses principally in U.S. dollars, Swiss francs, Japanese yen and euros. The exchange rates between dollars and non-U.S. currencies can fluctuate greatly and can have a significant effect on the Company's results when reported in U.S. dollars. In order to compare the Company's performance from period to period without the effect of currency, the Company will apply the same average exchange rate applicable in the prior period, or the "constant currency" rate to sales or expenses in the current period as well. Because changes in currency are outside of the control of the Company and its managers, management finds this non-GAAP measure useful in determining the long-term progress of its initiatives and determining whether its managers are achieving their performance goals. The Company believes that the non-GAAP constant-currency sales results measures provided in this press release are similarly useful to investors to give insight on long term trends in the Company's performance without the external effect of changes in relative currency values. The table provided in this press release shows sales results calculated in accordance with GAAP, the effect of currency, and the resulting non-GAAP measure expressed in constant currency.

#### About STAAR Surgical
STAAR, which has been dedicated solely to ophthalmic surgery for over 40 years, designs, develops, manufactures and markets implantable lenses for the eye. These lenses are intended to provide visual freedom for patients, lessening or eliminating the reliance on glasses or contact lenses. All of these lenses are foldable, which permits the surgeon to insert them through a small incision. STAAR's lens used in refractive surgery is called an Implantable Collamer® Lens or "ICL," which includes the EVO ICL™ product line. More than 2,000,000 ICLs have been sold to date and STAAR markets these lenses in over 75 countries. To learn more about the ICL go to: <u>EVOICL.com</u>. Headquartered in Lake Forest, CA, the company operates manufacturing and packaging facilities in Aliso Viejo, CA, Monrovia, CA and Nidau, Switzerland. For more information, please visit the Company's website at <u>www.staar.com</u>.

#### Safe Harbor
All statements that are not statements of historical fact are forward-looking statements, including statements about any of the following: any financial projections (including sales), plans, strategies, and objectives of management for 2023 or prospects for achieving such plans, expectations for sales, revenue, margin, expenses or earnings, and any statements of assumptions underlying any of the foregoing, including those relating to financial performance in the

------

first quarter and fiscal year 2023. Important factors that could cause actual results to differ materially from those indicated by such forward-looking statements include risks and uncertainties related to the COVID-19 pandemic and related public health measures, as well as the factors set forth in the Company's Annual Report on Form 10-K for the year ended December 31, 2021 under the caption "Risk Factors," which is on file with the Securities and Exchange Commission and available in the "Investor Information" section of the company's website under the heading "SEC Filings." We disclaim any intention or obligation to update or revise any financial projections or forward-looking statement due to new information or events. These statements are based on expectations and assumptions as of the date of this press release and are subject to numerous risks and uncertainties, which could cause actual results to differ materially from those described in the forward-looking statements. The risks and uncertainties include the following: global economic conditions; the impact of the COVID-19 pandemic on markets; the discretion of regulatory agencies to approve or reject existing, new or improved products, or to require additional actions before approval, or to take enforcement action; international trade disputes; and the willingness of surgeons and patients to adopt a new or improved product and procedure.

CONTACT:**Investors**

Brian Moore

Vice President, Investor, Media Relations and Corporate Development

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(626) 303-7902, Ext. 3023

<u>bmoore@staar.com</u>

------

#### Consolidated Balance Sheets

#### (in 000's)

#### Unaudited

---

| | | |
|:---|:---|:---|
| **ASSETS** | **December 30, 2022** | **December 31, 2021** |
| Current assets: |  |  |
| Cash and cash equivalents | $86480 | $199706 |
| Investments available for sale | 125159 | - |
| Accounts receivable trade, net | 62447 | 43531 |
| Inventories, net | 24161 | 17274 |
| Prepayments, deposits, and other current assets | 13726 | 10900 |
| &nbsp;&nbsp; Total current assets | 311973 | 271411 |
| Investments available for sale | 13902 | - |
| Property, plant, and equipment, net | 50921 | 35912 |
| Finance lease right-of-use assets, net | 342 | 506 |
| Operating lease right-of-use assets, net | 30270 | 31310 |
| Intangible assets, net | 173 | 218 |
| Goodwill | 1786 | 1786 |
| Deferred income taxes | 4824 | 3813 |
| Other assets | 957 | 822 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total assets | $415148 | $345778 |
| **LIABILITIES AND STOCKHOLDERS' EQUITY** |  |  |
| Current liabilities: |  |  |
| Accounts payable | $11576 | $8699 |
| Obligations under finance leases | 169 | 127 |
| Obligations under operating leases | 3524 | 3283 |
| Allowance for sales returns | 5706 | 4816 |
| Other current liabilities | 30741 | 31877 |
| &nbsp;&nbsp; Total current liabilities | 51716 | 48802 |
| Obligations under finance leases | 210 | 382 |
| Obligations under operating leases | 27136 | 28269 |
| Deferred income taxes | 1489 | 811 |
| Asset retirement obligations | 220 | 198 |
| Pension liability | 1935 | 8758 |
| &nbsp;&nbsp; Total liabilities | 82706 | 87220 |
| Stockholders' equity: |  |  |
| Common stock | 482 | 477 |
| Additional paid-in capital | 404189 | 373519 |
| Accumulated other comprehensive loss | 156 | (4048) |
| Accumulated deficit | (72385) | (111390) |
| &nbsp;&nbsp; Total stockholders' equity | 332442 | 258558 |
| &nbsp;&nbsp; Total liabilities and stockholders' equity | $415148 | $345778 |

---

------

#### Consolidated Statements of Income

#### (In 000's except for per share data)

#### Unaudited

---

| | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** | **Twelve Months Ended** | **Twelve Months Ended** | **Twelve Months Ended** | **Twelve Months Ended** | **Twelve Months Ended** | **Twelve Months Ended** |
|  | **% of** | **December 30,** | **% of** | **December 31,** | **Fav (Unfav)** | **Fav (Unfav)** | **% of** | **December 30,** | **% of** | **December 31,** | **Fav (Unfav)** | **Fav (Unfav)** |
|  | **Sales** | **2022** | **Sales** | **2021** | **Amount** | **%** | **Sales** | **2022** | **Sales** | **2021** | **Amount** | **%** |
| Net sales | 100.0% | $64044 | 100.0% | $59001 | $5043 | 8.5% | 100.0% | $284391 | 100.0% | $230472 | $53919 | 23.4% |
| Cost of sales | 22.3% | 14259 | 23.7% | 14010 | (249) | -1.8% | 21.5% | 61008 | 22.5% | 51835 | (9173) | -17.7% |
| Gross profit | 77.7% | 49785 | 76.3% | 44991 | 4794 | 10.7% | 78.5% | 223383 | 77.5% | 178637 | 44746 | 25.0% |
| Selling, general and administrative expenses: |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; General and administrative | 23.1% | 14808 | 19.5% | 11471 | (3337) | -29.1% | 19.2% | 54742 | 19.1% | 44142 | (10600) | -24.0% |
| &nbsp;&nbsp;&nbsp;&nbsp; Selling and marketing | 37.8% | 24223 | 28.9% | 17065 | (7158) | -41.9% | 31.2% | 88856 | 29.2% | 67294 | (21562) | -32.0% |
| &nbsp;&nbsp;&nbsp;&nbsp; Research and development | 15.3% | 9790 | 15.4% | 9072 | (718) | -7.9% | 12.7% | 35983 | 14.7% | 33862 | (2121) | -6.3% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total selling, general, and administrative expenses | 76.2% | 48821 | 63.8% | 37608 | (11213) | -29.8% | 63.1% | 179581 | 63.0% | 145298 | (34283) | -23.6% |
| Operating income | 1.5% | 964 | 12.5% | 7383 | (6419) | -86.9% | 15.4% | 43802 | 14.5% | 33339 | 10463 | 31.4% |
| Other expense, net: |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Interest income (expense), net | 2.4% | 1514 | 0.0% | (3) | 1517 | 50566.7% | 0.9% | 2448 | 0.0% | (38) | 2486 | 6542.1% |
| &nbsp;&nbsp;&nbsp;&nbsp; Loss on foreign currency transactions | 5.0% | 3197 | -1.6% | (924) | 4121 | 446.0% | -0.6% | (1707) | -1.3% | (2964) | 1257 | 42.4% |
| &nbsp;&nbsp;&nbsp;&nbsp; Royalty income | 0.8% | 527 | 0.9% | 519 | 8 | 1.5% | 0.4% | 1054 | 0.4% | 1015 | 39 | 3.8% |
| &nbsp;&nbsp;&nbsp;&nbsp; Other income (expense), net | 0.0% | 27 | 0.0% | (1) | 28 | 2800.0% | 0.0% | 205 | 0.0% | (48) | 253 | 527.1% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total other expense, net | 8.2% | 5265 | -0.7% | (409) | 5674 | 1387.3% | 0.7% | 2000 | -0.9% | (2035) | 4035 | 198.3% |
| Income before provision for income taxes | 9.7% | 6229 | 11.8% | 6974 | (745) | -10.7% | 16.1% | 45802 | 13.6% | 31304 | 14498 | 46.3% |
| Provision for income taxes | 0.2% | 126 | 3.5% | 2052 | 1926 | 93.9% | 2.4% | 6797 | 3.0% | 6803 | 6 | 0.1% |
| Net income | 9.5% | $6103 | 8.3% | $4922 | $1181 | 24.0% | 13.7% | $39005 | 10.6% | $24501 | $14504 | 59.2% |
| Net income per share - basic |  | $0.13 |  | $0.10 |  |  |  | $0.81 |  | $0.52 |  |  |
| Net income per share - diluted |  | $0.12 |  | $0.10 |  |  |  | $0.79 |  | $0.50 |  |  |
| Weighted average shares outstanding - basic |  | 48203 |  | 47652 |  |  |  | 47987 |  | 47210 |  |  |
| Weighted average shares outstanding - diluted |  | 49389 |  | 49478 |  |  |  | 49380 |  | 49456 |  |  |

---

------

#### Consolidated Statements of Cash Flows

#### (in 000's)

#### Unaudited

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three Months Ended** | **Three Months Ended** | **Twelve Months Ended** | **Twelve Months Ended** |
|  | **December 30,**<br> **2022** | **December 31,**<br> **2021** | **December 30,**<br> **2022** | **December 31,**<br> **2021** |
| Cash flows from operating activities: |  |  |  |  |
| &nbsp;&nbsp;&nbsp; Net income | $6103 | $4922 | $39005 | $24501 |
| &nbsp;&nbsp;&nbsp; Adjustments to reconcile net income to net cash provided by operating activities: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Depreciation of property and equipment | 1380 | 937 | 4481 | 3608 |
| &nbsp;&nbsp;&nbsp;&nbsp; Amortization of long-lived intangibles | 6 | 8 | 28 | 34 |
| &nbsp;&nbsp;&nbsp;&nbsp; Accretion/Amortization of investments available for sale | (891) | - | (1198) | - |
| &nbsp;&nbsp;&nbsp;&nbsp; Deferred income taxes | (1367) | 650 | (1344) | 1495 |
| &nbsp;&nbsp;&nbsp;&nbsp; Change in net pension liability | 13 | 46 | 53 | 137 |
| &nbsp;&nbsp;&nbsp;&nbsp; Stock-based compensation expense | 4995 | 3620 | 20370 | 14605 |
| &nbsp;&nbsp;&nbsp;&nbsp; Accretion of asset retirement obligation | 47 | - | 47 | - |
| &nbsp;&nbsp;&nbsp;&nbsp; Loss on disposal of property and equipment | 65 | - | 65 | 2 |
| &nbsp;&nbsp;&nbsp;&nbsp; Provision for sales returns and bad debts | 552 | (751) | 913 | 318 |
| &nbsp;&nbsp;&nbsp;&nbsp; Inventory provision | 403 | 557 | 2423 | 1654 |
| &nbsp;&nbsp;&nbsp; Changes in working capital: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Accounts receivable | (6493) | (1796) | (19601) | (8868) |
| &nbsp;&nbsp;&nbsp;&nbsp; Inventories | (3820) | (1235) | (7943) | 66 |
| &nbsp;&nbsp;&nbsp;&nbsp; Prepayments, deposits and other current assets | (3325) | (1999) | (2799) | (711) |
| &nbsp;&nbsp;&nbsp;&nbsp; Accounts payable | 3639 | 148 | 1805 | 108 |
| &nbsp;&nbsp;&nbsp;&nbsp; Other current liabilities | 1663 | 3391 | (590) | 7013 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net cash provided by operating activities | 2970 | 8498 | 35715 | 43962 |
| Cash flows from investing activities: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Acquisition of property and equipment | (4025) | (4689) | (18108) | (13645) |
| &nbsp;&nbsp;&nbsp;&nbsp; Purchase of investments available for sale | (60172) | - | (155748) | - |
| &nbsp;&nbsp;&nbsp;&nbsp; Proceeds from sale or maturity of investments available for sale | 17480 | - | 17480 | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net cash used in investing activities | (46717) | (4689) | (156376) | (13645) |
| Cash flows from financing activities: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Repayment of finance lease obligations | (41) | (34) | (126) | (348) |
| &nbsp;&nbsp;&nbsp;&nbsp; Proceeds from vested restricted stock and exercise of stock options | 243 | 1115 | 8423 | 19438 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net cash provided by financing activities | 202 | (216) | 8297 | 17793 |
| Effect of exchange rate changes on cash and cash equivalents | 783 | (133) | (862) | (857) |
| Increase (decrease) in cash and cash equivalents | (42762) | 3460 | (113226) | 47253 |
| Cash and cash equivalents, at beginning of the period | 129242 | 196246 | 199706 | 152453 |
| Cash and cash equivalents, at end of the period | $86480 | $199706 | $86480 | $199706 |

---

------

#### Reconciliation of Non-GAAP Financial Measure

#### Adjusted Net Income and Net Income Per Share

#### (in 000's)

#### Unaudited

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three Months Ended** | **Three Months Ended** | **Twelve Months Ended** | **Twelve Months Ended** |
|  | **December 30,** | **December 31,** | **December 30,** | **December 31,** |
|  | **2022** | **2021** | **2022** | **2021** |
| Net income (as reported) | $6103 | $4922 | $39005 | $24501 |
| Less: |  |  |  |  |
| &nbsp;&nbsp; Foreign currency impact | (3197) | 924 | 1707 | 2964 |
| &nbsp;&nbsp; Stock-based compensation expense | 4995 | 3620 | 20370 | 14605 |
| &nbsp;&nbsp; Valuation allowance adjustment | (829) | - | (829) | 845 |
| Net income (adjusted) | $7072 | $9466 | $60253 | $42915 |
| Net income per share, basic (as reported) | $0.13 | $0.10 | $0.81 | $0.52 |
| &nbsp;&nbsp; Foreign currency impact | (0.06) | 0.02 | 0.05 | 0.06 |
| &nbsp;&nbsp; Stock-based compensation expense | 0.10 | 0.08 | 0.42 | 0.31 |
| &nbsp;&nbsp; Valuation allowance adjustment | (0.02) | - | (0.02) | 0.02 |
| Net income per share, basic (adjusted) | $0.15 | $0.20 | $1.26 | $0.91 |
| Net income per share, diluted (as reported) | $0.12 | $0.10 | $0.79 | $0.50 |
| &nbsp;&nbsp; Foreign currency impact | (0.06) | 0.02 | 0.03 | 0.06 |
| &nbsp;&nbsp; Stock-based compensation expense | 0.10 | 0.07 | 0.42 | 0.29 |
| &nbsp;&nbsp; Valuation allowance adjustment | (0.02) | - | (0.02) | 0.02 |
| Net income per share, diluted (adjusted) | $0.14 | $0.19 | $1.22 | $0.87 |
| Weighted average shares outstanding - Basic | 48203 | 47652 | 47987 | 47210 |
| Weighted average shares outstanding - Diluted | 49389 | 49478 | 49380 | 49456 |

---

Note: Net income per share (adjusted), basic and diluted, may not add due to rounding

------

#### STAAR Surgical Company

#### Reconciliation of Non-GAAP Financial Measure

#### Constant Currency Sales

#### (in 000's)

#### Unaudited

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** |  |  |  |  |  |
|  | **December 30,** | **Effect of** | **Constant** | **December 31,** | **As Reported** | **As Reported** | **Constant Currency** | **Constant Currency** |
| **Sales** | **2022** | **Currency** | **Currency** | **2021** | **$ Change** | **% Change** | **$ Change** | **% Change** |
| ICL | $61162 | $3141 | $64303 | $53016 | $8146 | 15.4% | $11287 | 21.3% |
| Cataract IOL | 1998 | 409 | 2407 | 3195 | (1197) | -37.5% | (788) | -24.7% |
| Other | 884 | 298 | 1182 | 2790 | (1906) | -68.3% | (1608) | -57.6% |
| &nbsp;&nbsp;&nbsp; Other Products | 2882 | 707 | 3589 | 5985 | (3103) | -51.8% | (2396) | -40.0% |
| Total Sales | $64044 | $3848 | $67892 | $59001 | $5043 | 8.5% | $8891 | 15.1% |
|  | **Twelve Months Ended** | **Twelve Months Ended** | **Twelve Months Ended** |  |  |  |  |  |
|  | **December 30,** | **Effect of** | **Constant** | **December 31,** | **As Reported** | **As Reported** | **Constant Currency** | **Constant Currency** |
| **Sales** | **2022** | **Currency** | **Currency** | **2021** | **$ Change** | **% Change** | **$ Change** | **% Change** |
| ICL | $269712 | $10307 | $280019 | $212905 | $56807 | 26.7% | $67114 | 31.5% |
| Cataract IOL | 9638 | 1546 | 11184 | 12519 | (2881) | -23.0% | (1335) | -10.7% |
| Other | 5041 | 1019 | 6060 | 5048 | (7) | -0.1% | 1012 | 20.0% |
| &nbsp;&nbsp;&nbsp; Other Products | 14679 | 2565 | 17244 | 17567 | (2888) | -16.4% | (323) | -1.8% |
| Total Sales | $284391 | $12872 | $297263 | $230472 | $53919 | 23.4% | $66791 | 29.0% |

---