# EDGAR Filing Document

**Accession Number:** 0000718937
**File Stem:** 0000718937-26-000023
**Filing Date:** 2026-5
**Character Count:** 106808
**Document Hash:** 81458ab8ec10ba155dcc71b10eaf7f23
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0000718937-26-000023.hdr.sgml**: 20260513

**ACCESSION NUMBER**: 0000718937-26-000023

**CONFORMED SUBMISSION TYPE**: 10-Q

**PUBLIC DOCUMENT COUNT**: 91

**CONFORMED PERIOD OF REPORT**: 20260403

**FILED AS OF DATE**: 20260513

**DATE AS OF CHANGE**: 20260513

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** STAAR SURGICAL CO
- **CENTRAL INDEX KEY:** 0000718937
- **STANDARD INDUSTRIAL CLASSIFICATION:** OPHTHALMIC GOODS [3851]
- **ORGANIZATION NAME:** 08 Industrial Applications and Services
- **EIN:** 953797439
- **STATE OF INCORPORATION:** DE
- **FISCAL YEAR END:** 0102

**FILING VALUES:**
- **FORM TYPE:** 10-Q
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 000-11634
- **FILM NUMBER:** 26973227

**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='ASCII'? 10-Q

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**UNITED STATES** 

**SECURITIES AND EXCHANGE COMMISSION**

**Washington, D.C. 20549**

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**Form** 10-Q

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**(Mark One)**

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

**For the quarterly period ended:** **April 3,** 2026

**Or**

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

**Commission file number:** 0-11634

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STAAR Surgical Co**mpany**

*(Exact Name of Registrant as Specified in its Charter)*

---

| | |
|:---|:---|
| Delaware | 95-3797439 |
| *(State or Other Jurisdiction of*<br>*Incorporation or Organization)* | *(I.R.S. Employer*<br>*Identification No.)* |
| 25510 Commercentre DriveLake Forest**,** California | <br>92630 |
| *(Address of Principal Executive Offices)* | *(Zip Code)* |

---

**(**626**)** 303-7902

*(Registrant's Telephone Number, Including Area Code)*

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

---

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

---

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

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

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, 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 | ☐ |
| Non-accelerated filer | ☐ | Smaller reporting company | ☐ |
| Emerging growth company | ☐ |  |  |

---

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

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

The registrant has 49,788,495 shares of common stock, par value $0.01 per share, outstanding as of May 8, 2026.

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**STAAR SURGICAL COMPANY**

**INDEX**

---

| | | |
|:---|:---|:---|
|  |  | PAGE<br>NUMBER |
| [**<u>PART I – FINANCIAL INFORMATION</u>**](#part_i_financial_information) | [**<u>PART I – FINANCIAL INFORMATION</u>**](#part_i_financial_information) | 1 |
| &nbsp;&nbsp;&nbsp;&nbsp;ITEM 1 | [<u>FINANCIAL STATEMENTS</u>](#item_1_financial_statements) | 1 |
| &nbsp;&nbsp;&nbsp;&nbsp;ITEM 2. | [<u>MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS</u>](#item_2_managements_discussion_analysis_f) | 18 |
| &nbsp;&nbsp;&nbsp;&nbsp;ITEM 3. | [<u>QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK</u>](#item_3_quantitative_qualitative_disclosu) | 24 |
| &nbsp;&nbsp;&nbsp;&nbsp;ITEM 4. | [<u>CONTROLS AND PROCEDURES</u>](#item_4_controls_procedures) | 24 |
| [**<u>PART II – OTHER INFORMATION</u>**](#part_ii_or_information) | [**<u>PART II – OTHER INFORMATION</u>**](#part_ii_or_information) | 24 |
| &nbsp;&nbsp;&nbsp;&nbsp;ITEM 1. | [<u>LEGAL PROCEEDINGS</u>](#item_1_legal_proceedings) | 24 |
| &nbsp;&nbsp;&nbsp;&nbsp;ITEM 1A. | [<u>RISK FACTORS</u>](#item_1a_risk_factors) | 25 |
| &nbsp;&nbsp;&nbsp;&nbsp;ITEM 5. | [<u>OTHER INFORMATION</u>](#item_5_or_information) | 25 |
| &nbsp;&nbsp;&nbsp;&nbsp;ITEM 6. | [<u>EXHIBITS</u>](#item_6_exhibits) | 26 |

---

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# PART I – FINANCI AL INFORMATION

## ITEM 1. FINANCI AL STATEMENTS
**STAAR SURGICAL COMPANY** 

**CONDENSED CONSOLIDATED BALANCE SHEETS**

**(In thousands, except par value amounts)**

**(Unaudited)**

---

| | | |
|:---|:---|:---|
|  | **April 3, 2026** | **January 2, 2026** |
| **ASSETS** |  |  |
| Current assets: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Cash and cash equivalents | $131864 | $153150 |
| &nbsp;&nbsp;&nbsp;&nbsp;Investments available for sale (amortized cost basis of $32,028 and $34,385 at April 3, 2026 and January 2, 2026, respectively) | 32025 | 34386 |
| &nbsp;&nbsp;&nbsp;&nbsp;Accounts receivable trade, net of allowance for credit losses of $799 and $83 at April 3, 2026 and January 2, 2026, respectively | 81172 | 50064 |
| &nbsp;&nbsp;&nbsp;&nbsp;Inventories, net | 49784 | 55496 |
| &nbsp;&nbsp;&nbsp;&nbsp;Prepayments, deposits and other current assets | 17553 | 18449 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total current assets | 312398 | 311545 |
| Property, plant and equipment, net | 71738 | 73323 |
| Operating lease right-of-use assets, net | 28572 | 29609 |
| Cloud-based software | 34265 | 30700 |
| Goodwill | 1786 | 1786 |
| Deferred income taxes | 1088 | 3365 |
| Other assets | 1271 | 1350 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total assets | $451118 | $451678 |
| **LIABILITIES AND STOCKHOLDERS' EQUITY** |  |  |
| Current liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Accounts payable | $8696 | $11574 |
| &nbsp;&nbsp;&nbsp;&nbsp;Obligations under operating leases | 6102 | 5872 |
| &nbsp;&nbsp;&nbsp;&nbsp;Allowance for sales returns | 13190 | 10199 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other current liabilities | 33006 | 40859 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total current liabilities | 60994 | 68504 |
| Obligations under operating leases | 31189 | 32481 |
| Asset retirement obligations | 44 | 45 |
| Deferred rent | 89 | 89 |
| Pension liability | 6436 | 6375 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total liabilities | 98752 | 107494 |
| &nbsp;&nbsp;&nbsp;&nbsp;Commitments and contingencies (Note 12) |  |  |
| Stockholders' equity: |  |  |
| Common stock, $0.01 par value; 60,000 shares authorized: 50,156 shares issued and 49,780 shares outstanding at April 3, 2026 and 49,779 shares issued and 49,403 outstanding at January 2, 2026 | 502 | 498 |
| Additional paid-in capital | 507921 | 504682 |
| Treasury stock, 376 and 376 shares at April 3, 2026 and January 2, 2026, respectively | (6461) | (6461) |
| Accumulated other comprehensive loss | (6778) | (6511) |
| Accumulated deficit | (142818) | (148024) |
| &nbsp;&nbsp;&nbsp;&nbsp;Total stockholders' equity | 352366 | 344184 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total liabilities and stockholders' equity | $451118 | $451678 |

---

*See accompanying notes to the condensed consolidated financial statements.*

------

**STAAR SURGICAL COMPANY**

**CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS**

**(In thousands, except per share amounts)**

**(Unaudited)**

---

| | | |
|:---|:---|:---|
|  | **Three Months Ended** | **Three Months Ended** |
|  | **April 3, 2026** | **March 28, 2025** |
| Net sales | $93522 | $42589 |
| Cost of sales | 24663 | 14584 |
| &nbsp;&nbsp;&nbsp;&nbsp;Gross profit | 68859 | 28005 |
| Selling, general and administrative expenses: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;General and administrative | 17022 | 24458 |
| &nbsp;&nbsp;&nbsp;&nbsp;Selling and marketing | 24509 | 26945 |
| &nbsp;&nbsp;&nbsp;&nbsp;Research and development | 9925 | 11339 |
| &nbsp;&nbsp;&nbsp;&nbsp;Merger transaction and related costs | 6743 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Restructuring, impairment and related charges | 2681 | 22664 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total selling, general and administrative expenses | 60880 | 85406 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Operating income (loss) | 7979 | (57401) |
| Other income (expense), net: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest income, net | 907 | 1366 |
| &nbsp;&nbsp;&nbsp;&nbsp;Gain (loss) on foreign currency transactions | (1111) | 1418 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other income, net | 443 | 131 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total other income, net | 239 | 2915 |
| Income (loss) before income taxes | 8218 | (54486) |
| Provision (benefit) for income taxes | 3012 | (275) |
| Net income (loss) | $5206 | $(54211) |
| Net income (loss) per share: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Basic | $0.10 | $(1.10) |
| &nbsp;&nbsp;&nbsp;&nbsp;Diluted | $0.10 | $(1.10) |
| Weighted average shares outstanding: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Basic | 49908 | 49344 |
| &nbsp;&nbsp;&nbsp;&nbsp;Diluted | 50900 | 49344 |

---

*See accompanying notes to the condensed consolidated financial statements.*

------

**STAAR SURGICAL COMPANY** 

**CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)**

**(In thousands)**

**(Unaudited)**

---

| | | |
|:---|:---|:---|
|  | **Three Months Ended** | **Three Months Ended** |
|  | **April 3, 2026** | **March 28, 2025** |
| Net income (loss) | $5206 | $(54211) |
| Other comprehensive income (loss): |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Defined benefit plans: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net change in plan assets | (43) | 950 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Reclassification into other income (expense), net | (6) | 16 |
| &nbsp;&nbsp;&nbsp;&nbsp;Investments available for sale: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Change in unrealized gain (loss) | (5) | (1) |
| &nbsp;&nbsp;&nbsp;&nbsp;Foreign currency translation gain (loss) | (321) | 801 |
| &nbsp;&nbsp;&nbsp;&nbsp;Tax effect | 108 | (339) |
| Other comprehensive income (loss), net of tax | (267) | 1427 |
| Comprehensive income (loss) | $4939 | $(52784) |

---

*See accompanying notes to the condensed consolidated financial statements.*

------

**STAAR SURGICAL COMPANY** 

**CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY** 

**(In thousands)**

**(Unaudited)**

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** |
|  | **Common<br>Stock Shares** | **Common<br>Stock Par<br>Value** | **Additional<br>Paid-In<br>Capital** | **Treasury Stock Shares** | **Treasury Stock** | **Accumulated<br>Other<br>Comprehen-<br>sive Income<br>(Loss)** | **Accumulated<br>Deficit** | **Total** |
| **Balance, at January 2, 2026** | 49779 | $498 | $504682 | (376) | $(6461) | $(6511) | $(148024) | $344184 |
| &nbsp;&nbsp;&nbsp;&nbsp;Net income |  |  |  |  |  |  | 5206 | 5206 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other comprehensive loss |  |  |  |  |  | (267) |  | (267) |
| &nbsp;&nbsp;&nbsp;&nbsp;Common stock issued upon exercise of options | 20 |  | 170 |  |  |  |  | 170 |
| &nbsp;&nbsp;&nbsp;&nbsp;Stock-based compensation |  |  | 4936 |  |  |  |  | 4936 |
| &nbsp;&nbsp;&nbsp;&nbsp;Repurchase of employee common stock for taxes withheld | (96) |  | (1867) |  |  |  |  | (1867) |
| &nbsp;&nbsp;&nbsp;&nbsp;Vested restricted and performance stock units | 453 | 4 |  |  |  |  |  | 4 |
| **Balance, at April 3, 2026** | 50156 | $502 | $507921 | (376) | $(6461) | $(6778) | $(142818) | $352366 |
| **Balance, at December 27, 2024** | 49294 | $493 | $471449 |  | $— | $(7031) | $(67576) | $397335 |
| &nbsp;&nbsp;&nbsp;&nbsp;Net loss |  |  |  |  |  |  | (54211) | (54211) |
| &nbsp;&nbsp;&nbsp;&nbsp;Other comprehensive income |  |  |  |  |  | 1427 |  | 1427 |
| &nbsp;&nbsp;&nbsp;&nbsp;Common stock issued upon exercise of options | 52 | 1 | 375 |  |  |  |  | 376 |
| &nbsp;&nbsp;&nbsp;&nbsp;Stock-based compensation |  |  | 6327 |  |  |  |  | 6327 |
| &nbsp;&nbsp;&nbsp;&nbsp;Repurchase of employee common stock for taxes withheld | (66) |  | (1283) |  |  |  |  | (1283) |
| &nbsp;&nbsp;&nbsp;&nbsp;Vested restricted and performance stock units | 243 | 1 |  |  |  |  |  | 1 |
| **Balance, at March 28, 2025** | 49523 | $495 | $476868 |  | $— | $(5604) | $(121787) | $349972 |

---

*See accompanying notes to the condensed consolidated financial statements.*

------

**STAAR SURGICAL COMPANY** 

**CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS**

**(In thousands)**

**(Unaudited)**

---

| | | |
|:---|:---|:---|
|  | **Three Months Ended** | **Three Months Ended** |
|  | **April 3, 2026** | **March 28, 2025** |
| Cash flows from operating activities: |  |  |
| Net income (loss) | $5206 | $(54211) |
| Adjustments to reconcile net income (loss) to net cash used in operating activities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Depreciation of property, plant, and equipment | 2107 | 2337 |
| &nbsp;&nbsp;&nbsp;&nbsp;Amortization of cloud-based software | 104 | 53 |
| &nbsp;&nbsp;&nbsp;&nbsp;Non-cash operating lease expense | 857 | 1028 |
| &nbsp;&nbsp;&nbsp;&nbsp;Impairment of fixed assets and operating lease right-of-use assets |  | 13216 |
| &nbsp;&nbsp;&nbsp;&nbsp;Accretion/Amortization of investments available for sale | (232) | (129) |
| &nbsp;&nbsp;&nbsp;&nbsp;Deferred income taxes | 2810 | (1029) |
| &nbsp;&nbsp;&nbsp;&nbsp;Change in net pension liability | 31 | (2457) |
| &nbsp;&nbsp;&nbsp;&nbsp;Stock-based compensation expense | 4823 | 6015 |
| &nbsp;&nbsp;&nbsp;&nbsp;Provision for sales returns and credit losses | 3712 | (910) |
| &nbsp;&nbsp;&nbsp;&nbsp;Inventory provision | 1575 | 2031 |
| Changes in working capital: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Accounts receivable | (31921) | 38170 |
| &nbsp;&nbsp;&nbsp;&nbsp;Inventories | 4088 | (6304) |
| &nbsp;&nbsp;&nbsp;&nbsp;Prepayments, deposits, and other assets | 353 | 305 |
| &nbsp;&nbsp;&nbsp;&nbsp;Cloud-based software | (3668) | (2167) |
| &nbsp;&nbsp;&nbsp;&nbsp;Accounts payable | (2957) | (5961) |
| &nbsp;&nbsp;&nbsp;&nbsp;Other current and non-current liabilities | (8583) | 4279 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash used in operating activities | (21695) | (5734) |
| Cash flows from investing activities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Acquisition of property and equipment | (443) | (1468) |
| &nbsp;&nbsp;&nbsp;&nbsp;Purchase of investments available for sale | (4519) | (14691) |
| &nbsp;&nbsp;&nbsp;&nbsp;Proceeds from maturity of investments available for sale | 5459 | 51148 |
| &nbsp;&nbsp;&nbsp;&nbsp;Proceeds from sale of investments available for sale | 1650 | 362 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash provided by investing activities | 2147 | 35351 |
| Cash flows from financing activities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Repayment of finance lease obligations |  | (42) |
| &nbsp;&nbsp;&nbsp;&nbsp;Repurchase of employee common stock for taxes withheld | (1867) | (1283) |
| &nbsp;&nbsp;&nbsp;&nbsp;Proceeds from the exercise of stock options | 170 | 376 |
| &nbsp;&nbsp;&nbsp;&nbsp;Proceeds from vested restricted and performance stock units | 4 | 1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash used in financing activities | (1693) | (948) |
| Effect of exchange rate changes on cash and cash equivalents | (45) | 286 |
| Increase (decrease) in cash and cash equivalents | (21286) | 28955 |
| Cash and cash equivalents, at beginning of the year | 153150 | 144159 |
| Cash and cash equivalents, at end of the period | $131864 | $173114 |

---

*See accompanying notes to the condensed consolidated financial statements.*

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**STAAR SURGICAL COMPANY**

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

**Note 1 — Basis of Presentation and Significant Accounting Policies**

STAAR Surgical Company, a Delaware corporation, was first incorporated in 1982, and together with its subsidiaries designs, develops, manufactures, and sells implantable lenses for the eye and accessory delivery systems used to deliver the lenses into the eye. The accompanying Condensed Consolidated Financial Statements present the financial position, results of operations, and cash flows of STAAR Surgical Company and its wholly owned subsidiaries (the "Company"). All significant intercompany accounts and transactions have been eliminated. The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States ("GAAP") for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X of the Securities Exchange Commission. In accordance with those rules and regulations, certain information and footnote disclosures normally included in the Comprehensive Financial Statements have been condensed or omitted pursuant to such rules and regulations. The Consolidated Balance Sheet as of January 2, 2026 was derived from the audited financial statements at that date, but does not include all the information and footnotes required by GAAP. These financial statements should be read in conjunction with the audited financial statements and notes thereto included in the Company's Annual Report on Form 10-K for the year ended January 2, 2026.

The Condensed Consolidated Financial Statements for the three months ended April 3, 2026 and March 28, 2025, in the opinion of management, include all adjustments, consisting only of normal recurring adjustments, necessary for a fair presentation of the Company's financial condition and results of operations. The results of operations for the three months ended April 3, 2026 and March 28, 2025, are not necessarily indicative of the results to be expected for any other interim period or for the entire year.

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

***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 selling and marketing. These costs support internal and external training and education of the Company's existing products, and as such, the Company determined that classification of these costs in selling 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 Selling and marketing expenses on its Condensed Consolidated Statements of Operations as follows (in thousands):

---

| | | | |
|:---|:---|:---|:---|
|  | **Three Months Ended March 28, 2025** | **Three Months Ended March 28, 2025** | **Three Months Ended March 28, 2025** |
|  | **Prior Presentation** | **Reclassification** | **New Presentation** |
| Selling and marketing | $24621 | $2324 | $26945 |
| Research and development | 13663 | (2324) | 11339 |

---

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 Condensed Consolidated Balance Sheets, Condensed 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 Condensed Consolidated Statements of Cash Flows instead of combined with the changes in other current and non-current liabilities as follows (in thousands):

---

| | | | |
|:---|:---|:---|:---|
|  | **Three Months Ended March 28, 2025** | **Three Months Ended March 28, 2025** | **Three Months Ended March 28, 2025** |
|  | **Prior Presentation** | **Reclassification** | **New Presentation** |
| Non-cash operating lease expense | $— | $1028 | $1028 |
| Other current and non-current liabilities | 5307 | (1028) | 4279 |

---

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**STAAR SURGICAL COMPANY**

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

Net cash used in operating activities presented in the Condensed Consolidated Statements of Cash Flows was not affected by this change in presentation.

**Note 1 — Basis of Presentation and Significant Accounting Policies (Continued)**

***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. In addition, as a result of the termination of the Agreement and Plan of Merger (the "Merger Agreement" with Alcon Research, LLC, a Delaware limited liability company ("Alcon") in January 2026 and the entry into a letter agreement (the "Cooperation Agreement") with Broadwood Partners, L.P. and its affiliates ("Broadwood"), the Company incurred additional restructuring related charges due to leadership realignment. Restructuring, impairment and related charges were as follows (in thousands):

---

| | | |
|:---|:---|:---|
|  | **Three Months Ended** | **Three Months Ended** |
|  | **April 3, 2026** | **March 28, 2025** |
| Severance and reduction in workforce<sup>(1)</sup> | $1614 | $8808 |
| Consulting expenses | 1067 | 639 |
| Impairment on leasehold improvements and machinery and equipment<sup>(2)</sup> |  | 7059 |
| Impairment on real property right-of-use assets<sup>(3)</sup> |  | 3407 |
| Impairment on internally developed software<sup>(2)</sup> |  | 2751 |
|  | $2681 | $22664 |

---

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<sup>(1)</sup> See also Note 7 – Other Current Liabilities

<sup>(2)</sup> The Company will no longer be using these assets, see Note 5 – Property, Plant and Equipment.

<sup>(3)</sup> The Company is actively pursuing subleasing opportunities, see Note 8 – Operating Leases.

***Merger Transactions and Related Costs***

In connection with the proposed merger with Alcon and the Cooperation Agreement, the Company incurred professional service expenses of $6,743,000 for the three months ended April 3, 2026. The Cooperation Agreement provided for the reimbursement of certain reasonable out-of-pocket fees and expenses to Broadwood, Yunqi Capital and Defender Capital related to the merger with Alcon. See Note 16 – Related Party Transactions.

***Vendor Concentration***

There were three vendors and two vendors that accounted for over 60% and 30%, respectively, of the Company's consolidated accounts payable as of April 3, 2026 and January 2, 2026, respectively.

***Segment Reporting***

The Company's chief operating decision maker ("CODM") has been identified as the Co-Chief Executive Officers. The Company's CODM manages and allocates resources to the operations of the Company on a consolidated basis. The CODM assesses performance by 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 Condensed 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 Condensed Statement of Cash Flows.

See Note 14 – Disaggregation of Sales, Geographic Sales and Product Sales and Note 15 – Geographic Assets for specific information regarding the Company's sales and long-lived assets.

------

**STAAR SURGICAL COMPANY**

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

**Note 1 — Basis of Presentation and Significant Accounting Policies (Continued)**

***Recent Accounting Pronouncements 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 also would 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 adopted the annual disclosure requirements of ASU 2024-03 at the beginning of fiscal year 2026 and will adopt the interim disclosure requirement beginning in fiscal year 2027. The Company is currently evaluating the annual disclosure requirements and its effect on its annual report for fiscal year 2026.

**Note 2 — Investments Available for Sale**

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

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **April 3, 2026** | **April 3, 2026** | **April 3, 2026** | **April 3, 2026** | **April 3, 2026** | **April 3, 2026** |
|  |  |  |  |  | **Fair Value Measurements** | **Fair Value Measurements** |
|  | **Amortized Cost** | **Unrealized Gains** | **Unrealized Losses** | **Estimated Fair Value** | **Level 1** | **Level 2** |
| Commercial paper | $11525 | $— | $(2) | $11523 | $— | $11523 |
| Certificates of deposit | 1549 | 1 |  | 1550 |  | 1550 |
| U.S. Treasury securities | 999 |  |  | 999 | 999 |  |
| Corporate debt securities | 17955 | 2 | (4) | 17953 |  | 17953 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total investments AFS | $32028 | $3 | $(6) | $32025 | $999 | $31026 |
|  | **January 2, 2026** | **January 2, 2026** | **January 2, 2026** | **January 2, 2026** | **January 2, 2026** | **January 2, 2026** |
|  |  |  |  |  | **Fair Value Measurements** | **Fair Value Measurements** |
|  | **Amortized Cost** | **Unrealized Gains** | **Unrealized Losses** | **Estimated Fair Value** | **Level 1** | **Level 2** |
| Commercial paper | $14682 | $1 | $(1) | $14682 | $— | $14682 |
| Certificates of deposit | 816 |  |  | 816 |  | 816 |
| U.S. Treasury securities | 990 |  |  | 990 | 990 |  |
| Corporate debt securities | 17897 | 3 | (2) | 17898 |  | 17898 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total investments AFS | $34385 | $4 | $(3) | $34386 | $990 | $33396 |

---

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**

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

**Note 2 — Investments Available for Sale (Continued)**

The Company assessed each debt security 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 three months ended April 3, 2026 and March 28, 2025.

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

---

| | | | |
|:---|:---|:---|:---|
|  | **As of April 3, 2026** | **As of April 3, 2026** | **As of April 3, 2026** |
|  | **Within one year** | **After one year through five years** | **Total** |
| Commercial paper | $11523 | $— | $11523 |
| Certificates of deposit | 1550 |  | 1550 |
| U.S. Treasury securities | 999 |  | 999 |
| Corporate debt securities | 17953 |  | 17953 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total investments AFS | $32025 | $— | $32025 |

---

During the three months ended April 3, 2026, several of the Company's investments AFS with an aggregate fair value of $1,650,000 was subject to early redemption. The Company recognized a gain of less than $1,000 for the three months ended April 3, 2026. During the three months ended March 28, 2025, one of the Company's investments AFS with an aggregate fair value of $362,000 was subject to early redemption. The Company recognized a gain of less than $1,000 for the three months ended March 28, 2025.

**Note 3 — Inventories**

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

---

| | | |
|:---|:---|:---|
|  | **April 3, 2026** | **January 2, 2026** |
| Raw materials and purchased parts | $10718 | $10238 |
| Work in process | 6959 | 8514 |
| Finished goods<sup>(1)</sup> | 34979 | 39673 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total inventories, gross | 52656 | 58425 |
| Less inventory reserves | (2872) | (2929) |
| &nbsp;&nbsp;&nbsp;&nbsp;Total inventories, net | $49784 | $55496 |

---

------

<sup>(1)</sup> Finished goods inventory includes consigned inventory of $7,146,000 and $9,619,000 for April 3, 2026 and January 2, 2026, respectively. See also Note 14 – Disaggregation of Sales, Geographic Sales and Product Sales to the Condensed Consolidated Financial Statements for further details.

**Note 4 — Prepayments, Deposits, and Other Current Assets**

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

---

| | | |
|:---|:---|:---|
|  | **April 3, 2026** | **January 2, 2026** |
| Prepayments and deposits | $6968 | $7965 |
| Prepaid insurance | 2575 | 3269 |
| Prepaid income taxes | 785 | 1917 |
| Value added tax (VAT) receivable | 4522 | 4242 |
| BVG (Swiss Pension) prepayment | 1852 |  |
| Other<sup>(1)</sup> | 851 | 1056 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total prepayments, deposits and other current assets | $17553 | $18449 |

---

------

<sup>(1)</sup> No individual category in "Other" exceeds 5% of the total prepayments, deposits and other current assets.

------

**STAAR SURGICAL COMPANY**

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

**Note 5 — Property, Plant and Equipment**

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

---

| | | |
|:---|:---|:---|
|  | **April 3, 2026** | **January 2, 2026** |
| Machinery and equipment | $49014 | $45137 |
| Computer equipment and software | 10485 | 10525 |
| Furniture and fixtures | 7462 | 7483 |
| Leasehold improvements | 24475 | 19403 |
| Construction in process | 21872 | 30340 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total property, plant and equipment, gross | 113308 | 112888 |
| Less accumulated depreciation | (41570) | (39565) |
| &nbsp;&nbsp;&nbsp;&nbsp;Total property, plant and equipment, net | $71738 | $73323 |

---

As discussed in Note 1 – Basis of Presentation and Significant Accounting Policies, during the three months ended March 28, 2025, the Company recognized fixed asset impairment expense of $7,059,000 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 Condensed Consolidated Statements 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):

---

| | | |
|:---|:---|:---|
|  | **Three Months Ended** | **Three Months Ended** |
|  | **April 3, 2026** | **March 28, 2025** |
| Cost of sales | $875 | $868 |
| General and administrative | 841 | 1075 |
| Selling and marketing | 182 | 175 |
| Research and development | 209 | 182 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total depreciation expense | $2107 | $2300 |

---

**Note 6 — Cloud-Based Software**

The Company capitalized cloud-based software implementation costs related to several systems, including enterprise resource planning and customer relationship management systems, which were placed into service at the beginning of the second quarter of 2026. Capitalized cloud-based software costs, net consisted of the following (in thousands):

---

| | | |
|:---|:---|:---|
|  | **April 3, 2026** | **January 2, 2026** |
| Capitalized cloud-based software | $35196 | $31527 |
| Less accumulated amortization | (513) | (409) |
| &nbsp;&nbsp;&nbsp;&nbsp;Total capitalized cloud-based software, net | $34683 | $31118 |
| Capitalized cloud-based software included in prepayments, deposits and other current assets | $418 | $418 |
| Capitalized cloud-based software included in other assets | $34265 | $30700 |

---

Activity related to cloud-based software was as follows (in thousands):

---

| | | |
|:---|:---|:---|
|  | **Three Months Ended** | **Three Months Ended** |
|  | **April 3, 2026** | **March 28, 2025** |
| Additions to cloud-based software | $3668 | $2167 |
| Amortization of cloud-based software | 104 | 53 |
| Capitalized software placed into service |  | 1256 |

---

------

**STAAR SURGICAL COMPANY**

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

**Note 7 — Other Current Liabilities**

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

---

| | | |
|:---|:---|:---|
|  | **April 3, 2026** | **January 2, 2026** |
| Accrued salaries and wages | $11508 | $12891 |
| Accrued bonuses | 3912 | 9424 |
| Severance payable<sup>(1)</sup> | 1728 | 894 |
| Marketing obligations | 3158 | 3397 |
| Other<sup>(2)</sup> | 12700 | 14253 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total other current liabilities | $33006 | $40859 |

---

------

<sup>(1)</sup> As discussed in Note 1, during the three months ended April 3, 2026, the Company recognized costs in connection with its leadership realignment and related efforts. Of these costs, a total of $1,614,000 was recognized for severance costs related to leadership realignment. This amount is recorded in Restructuring, impairment and related charges on the Condensed Consolidated Statements of Operations. A majority of these severance payments will be paid monthly through mid-2027.

<sup>(2)</sup> No individual category in "Other" exceeds 5% of the other current liabilities.

**Note 8 — 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):

---

| | | |
|:---|:---|:---|
|  | **April 3, 2026** | **January 2, 2026** |
| Machinery and equipment | $813 | $773 |
| Computer equipment and software | 373 | 413 |
| Real property | 39095 | 39824 |
| &nbsp;&nbsp;&nbsp;&nbsp;Operating lease right-of-use assets, gross | 40281 | 41010 |
| Less accumulated depreciation | (11709) | (11401) |
| &nbsp;&nbsp;&nbsp;&nbsp;Operating lease right-of-use assets, net | $28572 | $29609 |
| Current operating lease obligations | $6102 | $5872 |
| Long-term operating lease obligations | 31189 | 32481 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total operating lease liability | $37291 | $38353 |
| Weighted-average remaining lease term (in years) | 6.5 | 6.7 |
| Weighted-average discount rate | 6.41% | 6.33% |

---

As discussed in Note 1, during the three months ended March 28, 2025, the Company recognized impairment on real property right-of-use assets of $3,407,000. The impairment relates to the Company's decision to exit several of its leased properties, for which the Company has obtained a subtenant for one of its properties and is actively pursuing subleasing the remaining 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 Condensed Consolidated Statements of Operations.

------

**STAAR SURGICAL COMPANY**

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

**Note 8 — Operating Leases (Continued)**

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

---

| | | |
|:---|:---|:---|
|  | **Three Months Ended** | **Three Months Ended** |
|  | **April 3, 2026** | **March 28, 2025** |
| Operating lease cost | $2124 | $2149 |
| Cash paid for amounts included in the measurement of operating lease liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Operating cash flows | 1982 | 1652 |
| Right-of-use assets obtained in exchange for new operating lease liabilities | 449 | 304 |

---

***Future Maturities of Lease Liabilities***

Estimated future maturities of lease liabilities under operating leases having initial or remaining non-cancelable lease terms more than one year as of April 3, 2026 is as follows (in thousands):

---

| | |
|:---|:---|
| **As of April 3, 2026<br>12 Months Ended** | **Operating Leases** |
| March 2027 | $8380 |
| March 2028 | 7388 |
| March 2029 | 7114 |
| March 2030 | 7021 |
| March 2031 | 5922 |
| Thereafter | 11261 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total future minimum lease payments | 47086 |
| &nbsp;&nbsp;&nbsp;&nbsp;Less amounts representing interest | (9795) |
| &nbsp;&nbsp;&nbsp;&nbsp;Total lease liability | $37291 |

---

**Note 9 — Income Taxes**

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

---

| | | |
|:---|:---|:---|
|  | **Three Months Ended** | **Three Months Ended** |
|  | **April 3, 2026** | **March 28, 2025** |
| Provision (benefit) for income taxes | $3012 | $(275) |

---

The effective tax rates for the three months ended April 3, 2026 and March 28, 2025 were 36.7% and 0.5%, respectively. The Company's effective tax rates differ from the U.S. federal statutory rate of 21% for the three months ended April 3, 2026 and March 28, 2025, respectively, primarily due to the income tax expense generated in foreign jurisdictions.

**Note 10 — Defined Benefit Pension Plans**

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

---

| | | |
|:---|:---|:---|
|  | **Three Months Ended** | **Three Months Ended** |
|  | **April 3, 2026** | **March 28, 2025** |
| Service cost<sup>(1)</sup> | $456 | $404 |
| Interest cost<sup>(2)</sup> | 92 | 62 |
| Expected return on plan assets<sup>(2)</sup> | (163) | (135) |
| Prior service credit<sup>(2),(3)</sup> | (55) | (53) |
| Settlement gain<sup>(2),(3)</sup> |  | (4) |
| Actuarial loss recognized in current period<sup>(2),(3)</sup> | 49 | 73 |
| &nbsp;&nbsp;&nbsp;&nbsp;Net periodic pension cost | $379 | $347 |

---

------

<sup>(1)</sup> Recognized in selling general and administrative expenses on the Condensed Consolidated Statements of Operations.

<sup>(2)</sup> Recognized in other income, net on the Condensed Consolidated Statements of Operations.

<sup>(3)</sup> Amounts reclassified from accumulated other comprehensive income (loss).

------

**STAAR SURGICAL COMPANY**

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

**Note 10 — Defined Benefit Pension Plans (Continued)**

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

---

| | | |
|:---|:---|:---|
|  | **Three Months Ended** | **Three Months Ended** |
|  | **April 3, 2026** | **March 28, 2025** |
| Employer contribution | $353 | $265 |

---

**Note 11 — 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, restricted stock units ("RSUs") and performance stock units ("PSUs") and other stock- and cash-based awards, including awards that are subject to service-based and performance-based vesting conditions. As of April 3, 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 of Directors (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 19, 2024, stockholders approved a proposal to increase the number of shares under the Equity Plan by 2,600,000 shares, for a total of 22,805,000 shares. As of April 3, 2026, there were 344,635 shares available for grant under the Equity Plan.

***Stock-Based Compensation***

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

---

| | | |
|:---|:---|:---|
|  | **Three Months Ended** | **Three Months Ended** |
|  | **April 3, 2026** | **March 28, 2025** |
| Employee stock options | $1134 | $2362 |
| Restricted stock |  | 157 |
| RSUs | 2278 | 2963 |
| PSUs | 1193 | 396 |
| Nonemployee stock options | 103 | 137 |
| Nonemployee RSUs | 115 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Total stock-based compensation expense | $4823 | $6015 |

---

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

---

| | | |
|:---|:---|:---|
|  | **Three Months Ended** | **Three Months Ended** |
|  | **April 3, 2026** | **March 28, 2025** |
| Cost of sales | $224 | $290 |
| General and administrative | 1653 | 2683 |
| Selling and marketing | 1236 | 1277 |
| Research and development | 1710 | 1765 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total stock-based compensation expense, net | 4823 | 6015 |
| Amounts capitalized as part of inventory | 113 | 312 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total stock-based compensation expense, gross | $4936 | $6327 |

---

------

**STAAR SURGICAL COMPANY**

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

**Note 11 — Stockholders' Equity (Continued)**

***Stock-Based Compensation (Continued)***

As of April 3, 2026, total unrecognized compensation cost related to non-vested stock-based compensation arrangements were as follows (in thousands):

---

| | |
|:---|:---|
|  | **April 3, 2026** |
| Stock options | $3499 |
| RSUs and PSUs | 32214 |
| &nbsp;&nbsp;Total unrecognized stock-based compensation cost | $35713 |

---

The 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 15% estimated forfeiture rate based on historical forfeiture experience. The risk-free rate is based on the U.S. Treasury yield curve corresponding to the expected term at the time of the grant.

---

| | | |
|:---|:---|:---|
|  | **Three Months Ended** | **Three Months Ended** |
|  | **April 3, 2026** | **March 28, 2025** |
| Expected dividend yield | 0% | 0% |
| Expected volatility | 62% | 60% |
| Risk-free interest rate | 3.72% | 4.33% |
| Expected term (in years) | 4.86 | 5.05 |

---

***Stock Options***

A summary of stock option activity under the Equity Plan for three months ended April 3, 2026 is presented below:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Stock<br>Options<br>(in 000's)** | **Weighted-<br>Average<br>Exercise<br>Price** | **Weighted-<br>Average<br>Remaining<br>Contractual<br>Term (years)** | **Aggregate<br>Intrinsic<br>Value<br>(in 000's)** |
| Outstanding at January 2, 2026 | 1716 | $44.85 |  |  |
| Granted | 23 | 18.46 |  |  |
| Exercised | (20) | 8.51 |  |  |
| Forfeited or expired | (85) | 34.50 |  |  |
| Outstanding at April 3, 2026 | 1634 | $45.47 | 5.79 | $1158 |
| Exercisable at April 3, 2026 | 1363 | $48.66 | 5.26 | $898 |

---

***Restricted Stock, Restricted Stock Units and Performance Stock Units***

A summary of RSU and PSU activity under the Equity Plan for the three months ended April 3, 2026 is presented below (shares in thousands):

---

| | | |
|:---|:---|:---|
|  | **RSUs** | **PSUs** |
| Unvested at January 2, 2026 | 1459 | 802 |
| Granted | 456 | 414 |
| Vested | (453) |  |
| Forfeited or expired | (243) | (178) |
| Unvested at April 3, 2026 | 1219 | 1038 |

---

------

**STAAR SURGICAL COMPANY**

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

**Note 12 - Commitments and Contingencies**

***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. The Company maintains insurance coverage for various matters, including product liability and certain securities claims. While the Company does not believe that any of the claims known is likely to have a material adverse effect on the Company's financial condition or results of operations, new claims or unexpected results of existing claims could lead to significant financial harm.

**Note 13 — 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):

---

| | | |
|:---|:---|:---|
|  | **Three Months Ended** | **Three Months Ended** |
|  | **April 3, 2026** | **March 28, 2025** |
| Numerator: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Net income (loss) | $5206 | $(54211) |
| Denominator: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Weighted average common shares: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Common shares outstanding | 49908 | 49344 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Denominator for basic calculation | 49908 | 49344 |
| &nbsp;&nbsp;&nbsp;&nbsp;Weighted average effects of potentially diluted common stock: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Stock options | 48 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;RSUs | 373 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;PSUs | 571 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Denominator for diluted calculation | 50900 | 49344 |
| Net income (loss) per share: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Basic | $0.10 | $(1.10) |
| &nbsp;&nbsp;&nbsp;&nbsp;Diluted | $0.10 | $(1.10) |

---

Because the Company had a net loss for the three months ended March 28, 2025, the number of diluted shares is equal to the number of basic shares. The following table sets forth (in thousands) the weighted average number of options to purchase shares of common stock, restricted stock, RSUs and PSUs with either exercise prices or unrecognized compensation cost per share greater than the average market price per share of the Company's common stock, which were not included in the calculation of diluted per share amounts because the effects would be anti-dilutive.

---

| | | |
|:---|:---|:---|
|  | **Three Months Ended** | **Three Months Ended** |
|  | **April 3, 2026** | **March 28, 2025** |
| Stock options | 4105 | 7004 |
| Restricted stock, RSUs and PSUs | 244 | 914 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total | 4349 | 7918 |

---

------

**STAAR SURGICAL COMPANY**

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

**Note 14 — Disaggregation of Sales, Geographic Sales and Product Sales**

100% of the Company's sales are generated from the ophthalmic surgical product segment and the CODM 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. 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. 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):

---

| | | |
|:---|:---|:---|
|  | **Three Months Ended** | **Three Months Ended** |
|  | **April 3, 2026** | **March 28, 2025** |
| Non-consignment sales | $75488 | $37851 |
| Consignment sales | 18034 | 4738 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total net sales | $93522 | $42589 |

---

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 this 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 the three months ended April 3, 2026 were $12,634,000.

The Company's product is marketed and sold in more than 85 countries and its product is manufacturing in the United States and Switzerland. Sales are attributed to countries based on locations 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. The composition of the Company's net sales to unaffiliated customers was as follows (in thousands):

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| | | |
|:---|:---|:---|
|  | **Three Months Ended** | **Three Months Ended** |
|  | **April 3, 2026** | **March 28, 2025** |
| Domestic | $6667 | $5459 |
| Foreign: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;China<sup>(1)</sup> | 47442 | (877) |
| &nbsp;&nbsp;&nbsp;&nbsp;Japan | 12266 | 11395 |
| &nbsp;&nbsp;&nbsp;&nbsp;Korea | 7975 | 7522 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other<sup>(2)</sup> | 19172 | 19090 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total foreign sales | 86855 | 37130 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total net sales | $93522 | $42589 |

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<sup>(1)</sup> The China region includes sales into China and Hong Kong.

<sup>(2)</sup> No other location individually exceeds 10% of the total net sales.

The Company's China distributors accounted for 51% of net sales for the three months ended April 3, 2026, and the Company's Korea distributor accounted for 18% of net sales for the three months ended March 28, 2025. As of April 3, 2026, the Company's China distributors accounted for 57% of consolidated trade receivables, and as of January 2, 2026, the Company's China distributors accounted for 33% of consolidated trade receivables.

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**STAAR SURGICAL COMPANY**

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

**Note 15 — 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. The composition of the Company's long-lived assets was as follows (in thousands):

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **April 3, 2026** | **April 3, 2026** | **April 3, 2026** | **April 3, 2026** |
|  | **U.S.** | **Switzerland** | **Other**<sup>(1)</sup> | **Total** |
| Property, plant and equipment, net | $54174 | $17183 | $381 | $71738 |
| Operating lease ROU assets, net | 20943 | 5058 | 2571 | 28572 |
| Cloud-based software | 34683 |  |  | 34683 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total | $109800 | $22241 | $2952 | $134993 |
|  | **January 2, 2026** | **January 2, 2026** | **January 2, 2026** | **January 2, 2026** |
|  | **U.S.** | **Switzerland** | **Other**<sup>(1)</sup> | **Total** |
| Property, plant and equipment, net | $55621 | $17311 | $391 | $73323 |
| Operating lease ROU assets, net | 21454 | 5346 | 2809 | 29609 |
| Cloud-based software | 31118 |  |  | 31118 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total | $108193 | $22657 | $3200 | $134050 |

---

------

<sup>(1)</sup> No other location individually exceeds 10% of each category of long-lived assets.

**Note 16 — Related Party Transactions**

On January 14, 2026, following the termination of the Merger Agreement, STAAR entered into the Cooperation Agreement with Broadwood, and agreed, among other things, to increase the size of the Board from six to seven directors, accept the resignations of Mr. Farrell and Dr. Yeu from the Board, and appoint each of Messrs. Bradsher, LeBuhn and Wang (each a "New Director") to the Board. Additionally, the Company agreed that the Board would nominate each New Director as a candidate for election as a director at the 2026 annual meeting of shareholders and that the size of the Board, until the conclusion of the 2027 annual meeting of shareholders, will not exceed seven directors. The Company also agreed to reimburse Broadwood, Yunqi Capital and Defender Capital for certain reasonable and documented out-of-pocket fees and expenses they have incurred. Each of Broadwood and Yunqi Capital were holders of more than 5% of the Company's outstanding stock at the time the Company entered into the Cooperation Agreement. The Cooperation Agreement was reviewed and approved by the Company's Board, and it reviewed and approved the payment of the fees and expenses incurred by Broadwood and Yunqi Capital. The Company paid $5,036,000 to Broadwood and $962,000 to Yunqi Capital, in accordance with the Cooperation Agreement.

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## ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
*The matters addressed in this Item 2 that are not historical information constitute "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended ("Securities Act"), and Section 21E of the Securities Exchange Act of 1934, as amended ("Exchange Act"), and the Private Securities Litigation Reform Act of 1995, and is subject to the safe harbor created therein. In some cases readers can recognize forward-looking statements by the use of words like "anticipate," "estimate," "expect," "project," "intend," "may," "plan," "believe," "will," "should," "could," "forecast," "potential," "continue," "ongoing" (or the negative of those words and similar words or expressions), although not all forward-looking statements contain these words. Forward-looking statements 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; 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; 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.*

*Although we believe that the expectations reflected in these forward-looking statements are reasonable, we caution investors and prospective investors that any such forward-looking statements are not guarantees of future performance and involve risks, uncertainties, assumptions and other factors, which if they do not materialize or prove correct, could cause actual results to differ materially from those expressed or implied by such forward-looking statements. We caution you not to place undue reliance on these forward-looking statements and to note they speak only as of the date hereof. Factors that could cause actual results to differ materially from those set forth in the forward-looking statements include, without limitation, our ability to grow and generate profit; our reliance on independent distributors in international markets; a slowdown or disruption to the Chinese economy; global economic conditions; disruptions in our supply chain; fluctuations in foreign currency exchange rates; international trade disputes (including involving tariffs) and substantial dependence on demand from Asia; changes in effective tax rate or tax laws; any loss of use of our principal manufacturing facility; competition; potential losses due to product liability claims; our exposure to environmental liability; data corruption, cyber-based attacks or network security breaches and/or noncompliance with data protection and privacy regulations; acquisitions of new technologies; climate changes; the willingness of surgeons and patients to adopt a new or improved product and procedure; extensive clinical trials and resources devoted to research and development; compliance with government regulations; the discretion of regulatory agencies to approve or reject existing, new or improved products, or to require additional actions before or after approval, or to take enforcement action; laws pertaining to healthcare fraud and abuse; changes in FDA or international regulations related to product approval; product recalls or failures; and other important factors; and those described in our Annual Report on Form 10-K in "Item 1A. Risk Factors" filed on March 3, 2026.* 

*We disclaim any intention or obligation to update or review these financial projections or forward-looking statements due to new information or other events except as required by law.*

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

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

***Overview***

STAAR Surgical Company designs, develops, manufactures, and sells implantable lenses for the eye and accessory delivery systems used to deliver the lenses into the eye. We are the leading manufacturer of phakic implantable lenses used worldwide in corrective or "refractive" surgery. We have been dedicated solely to ophthalmic surgery for over 40 years. Our goal is to position our refractive lenses throughout the world as primary and premium solutions for patients seeking visual freedom from wearing eyeglasses or contact lenses while achieving excellent visual acuity through refractive vision correction. We generate worldwide revenue almost exclusively from sales of our Implantable Collamer® Lenses, or "ICLs." Our ICLs are made from Collamer, which is a proprietary collagen copolymer material created and exclusively used by STAAR to make our lenses soft, flexible and biocompatible with the eye. Our ICLs are phakic lenses, meaning that they are implanted into the eye

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without removing the eye's natural crystalline lens. This distinguishes an ICL procedure from other refractive procedures, as it does not involve the removal of corneal eye tissue. All of our ICLs are foldable, which allows the surgeon to insert them into the eye through a small incision during minimally invasive surgery. Further, while ICLs are intended to be permanent, our ICLs are reversible lens implants, meaning they can be removed by a doctor if desired.

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

**Business Environment and Factors Affecting Comparability**

For the three months ended April 3, 2026, net sales were $93.5 million, up 119.6% from $42.6 million for the three months ended March 28, 2025. The increase was primarily driven by strong sales performance in China, while distributor inventory was maintained at or below contractual levels. Net sales to our two distributors in China were $47.4 million for the three months ended April 3, 2026, compared to net returns of $0.9 million in the prior-year period.

During the first quarter of 2026, we completed the launch of EVO+ ICL in China, which was met with strong market acceptance. EVO+ ICL carries a premium selling price, supporting potential margin expansion as production volumes increase over time. As previously disclosed, shipments to the two distributors in China were largely suspended during the first half of 2025 due to elevated inventory levels following a market slowdown in 2024, with procedure demand primarily fulfilled from existing inventory.

Gross margin increased year-over-year to 73.6% from 65.8%, reflecting cost reduction initiatives implemented in the first quarter of 2025. This improvement was partially offset by higher per-unit manufacturing costs associated with low production volumes at the new Swiss facility during 2025. As production in Switzerland has scaled in 2026, unit costs have begun to improve. By the end of fiscal 2026, we expect to manufacture and supply 100% of EVO and EVO+ ICL lenses for China from Switzerland without exposure to tariffs.

As a result of significantly increased sales, higher gross profit, and reduced operating expenses, GAAP net income for the first quarter of 2026 was $5.2 million or $0.10 per diluted share, up from a net loss of $(54.2) million or $(1.10) per share for the prior year quarter. Although cash and investments available for sale decreased to $163.9 million at April 3, 2026 from $187.5 million due to front-loaded payments for seasonal bonuses and other employee incentives, global sales meetings, severance, and costs associated with our Cooperation Agreement with Broadwood Partners, we expect to generate cash during the remainder of the year.

***Critical Accounting Estimates***

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

Management believes that there have been no significant changes during the three months ended April 3, 2026 to the items that we disclosed as our critical accounting estimates in Management's Discussion and Analysis of Financial Condition and Results of Operations in our Annual Report on Form 10-K for the fiscal year ended January 2, 2026.

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***Results of Operations***

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

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| | | |
|:---|:---|:---|
|  | **Percentage of Net Sales for** | **Percentage of Net Sales for** |
|  | **Three Months Ended** | **Three Months Ended** |
|  | **April 3, 2026** | **March 28, 2025** |
| Net sales | 100.0% | 100.0% |
| Cost of sales | 26.4% | 34.2% |
| &nbsp;&nbsp;Gross profit | 73.6% | 65.8% |
| General and administrative | 18.2% | 57.4% |
| Selling and marketing | 26.2% | 63.3% |
| Research and development | 10.6% | 26.6% |
| Merger transaction and related costs | 7.2% | 0.0% |
| Restructuring, impairment and related charges | 2.9% | 53.2% |
| &nbsp;&nbsp;Total selling, general and administrative | 65.1% | 200.5% |
| &nbsp;&nbsp;Operating income (loss) | 8.5% | (134.7)% |
| Total other income, net | 0.3% | 6.8% |
| Income (loss) before income taxes | 8.8% | (127.9)% |
| Provision (benefit) for income taxes | 3.2% | (0.6)% |
| Net income (loss) | 5.6% | (127.3)% |

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***Net Sales***

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

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| | | | |
|:---|:---|:---|:---|
|  | **Three Months Ended** | **Three Months Ended** | **Percentage<br>Change** |
|  | **April 3, 2026** | **March 28, 2025** | **2026 vs. 2025** |
| Net sales | $93522 | $42589 | —<br> \* |

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\* Denotes change is greater than <u>+</u>100%.

Net sales for the three months ended April 3, 2026 increased 119.6% from the same period of 2025, primarily due to increased sales in China. 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. The sales increase was driven by the Asia Pacific ("APAC") region, which increased by 218%, with ICL unit increase of 227%. The increase in the APAC region was driven by increased sales in China, Japan and Korea. The Europe, Middle East and Africa region sales decreased 3%, with ICL units down 11%, due to decreased sales in our distributor markets, partially offset by increased sales in our direct markets. The Americas region sales increased 26%, with ICL unit growth up 28%, primarily due to sales growth in the U.S. Changes in foreign currency favorably impacted net sales by $1.2 million.

***Gross Profit***

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

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| | | | |
|:---|:---|:---|:---|
|  | **Three Months Ended** | **Three Months Ended** | **Percentage<br>Change** |
|  | **April 3, 2026** | **March 28, 2025** | **2026 vs. 2025** |
| Gross profit | $68859 | $28005 | —<br> \* |
| Gross profit margin | 73.6% | 65.8% |  |

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\* Denotes change is greater than <u>+</u>100%.

Gross profit for the three months ended April 3, 2026 increased 145.9%, from the same period of 2025. Gross profit margin increased to 73.6% of revenue for the three months ended April 3, 2026 compared to 65.8% of revenue for the three months ended March 28, 2025, due to the elimination of period costs related to the ramp-up of manufacturing in Switzerland, a reduction in Advanced Manufacturing expenses as a result of our cost reductions implemented during the three months ended

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March 28, 2025, lower inventory provisions, and decreased freight and other cost of sales as a percentage of sales. This was partially offset by higher per unit manufacturing costs resulting from lower production volume in 2025.

***General and Administrative Expense***

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

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| | | | |
|:---|:---|:---|:---|
|  | **Three Months Ended** | **Three Months Ended** | **Percentage<br>Change** |
|  | **April 3, 2026** | **March 28, 2025** | **2026 vs. 2025** |
| General and administrative expense | $17022 | $24458 | (30.4)% |
| Percentage of sales | 18.2% | 57.4% |  |

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General and administrative expenses for the three months ended April 3, 2026 decreased 30.4% from the same period of 2025 due to decreased outside services, bonus and stock-based compensation expenses and salary-related and payroll tax expenses.

***Selling and Marketing Expense***

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

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| | | | |
|:---|:---|:---|:---|
|  | **Three Months Ended** | **Three Months Ended** | **Percentage<br>Change** |
|  | **April 3, 2026** | **March 28, 2025** | **2026 vs. 2025** |
| Selling and marketing expense | $24509 | $26945 | (9.0)% |
| Percentage of sales | 26.2% | 63.3% |  |

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Selling and marketing expenses for the three months ended April 3, 2026 decreased 9.0% from the same period of 2025 due to decreased advertising and promotional activities and trade shows and sales meeting expenses, partially offset by bad debt expense and bonus and stock-based compensation expenses.

***Research and Development Expense***

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

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| | | | |
|:---|:---|:---|:---|
|  | **Three Months Ended** | **Three Months Ended** | **Percentage<br>Change** |
|  | **April 3, 2026** | **March 28, 2025** | **2026 vs. 2025** |
| Research and development expense | $9925 | $11339 | (12.5)% |
| Percentage of sales | 10.6% | 26.6% |  |

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Research and development expenses for the three months ended April 3, 2026 decreased 12.5% from the same period of 2025, due mainly to decreased salary-related and payroll tax expenses and bonus and stock-based compensation expenses.

***Merger Transaction and Related Costs***

At the special meeting of shareholders held on January 6, 2026, the Company's shareholders voted against the merger with Alcon. Following the termination of the Merger Agreement, the Company entered into the Cooperation Agreement with Broadwood, which provided for the reimbursement of certain reasonable out-of-pocket fees and expenses to Broadwood, Yunqi Capital and Defender Capital related to the merger with Alcon. The following table presents our professional services expenses we incurred in connection with the proposed merger with Alcon and the Cooperation Agreement (dollars in thousands):

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| | | | |
|:---|:---|:---|:---|
|  | **Three Months Ended** | **Three Months Ended** | **Percentage<br>Change** |
|  | **April 3, 2026** | **March 28, 2025** | **2026 vs. 2025** |
| Merger transaction and related costs | $6743 | $— | —<br> \* |
| Percentage of sales | 7.2% | 0.0% |  |

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\* Denotes change is greater than <u>+</u>100%.

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***Restructuring, Impairment and Related Charges***

The following table presents our restructuring, impairment and related charges (dollars in thousands):

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| | | | |
|:---|:---|:---|:---|
|  | **Three Months Ended** | **Three Months Ended** | **Percentage<br>Change** |
|  | **April 3, 2026** | **March 28, 2025** | **2026 vs. 2025** |
| Restructuring, impairment and related charges | $2681 | $22664 | (88.2)% |
| Percentage of sales | 2.9% | 53.2% |  |

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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. In addition, in 2026, as a result of the Cooperation Agreement with Broadwood, the Company incurred additional restructuring related charges related to leadership realignment as follows (in thousands):

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| | | |
|:---|:---|:---|
|  | **Three Months Ended** | **Three Months Ended** |
|  | **April 3, 2026** | **March 28, 2025** |
| Severance and reduction in workforce | $1614 | $8808 |
| Consulting expenses | 1067 | 639 |
| Impairment on leasehold improvements and machinery and equipment<sup>(1)</sup> |  | 7059 |
| Impairment on real property right-of-use assets<sup>(2)</sup> |  | 3407 |
| Impairment on internally developed software<sup>(1)</sup> |  | 2751 |
|  | $2681 | $22664 |

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<sup>(1)</sup> The Company will no longer be using these assets.

<sup>(2)</sup> The Company is actively pursuing subleasing opportunities.

***Other Income, Net*** 

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

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| | | | |
|:---|:---|:---|:---|
|  | **Three Months Ended** | **Three Months Ended** | **Percentage<br>Change** |
|  | **April 3, 2026** | **March 28, 2025** | **2026 vs. 2025** |
| Other income, net | $239 | $2915 | (91.8)% |
| Percentage of sales | 0.3% | 6.8% |  |

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The decrease in other income, net for the three months ended April 3, 2026, was due mainly to higher foreign exchange losses for the three months ended April 3, 2026.

***Provision (Benefit) for Income Taxes*** 

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

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| | | | |
|:---|:---|:---|:---|
|  | **Three Months Ended** | **Three Months Ended** | **Percentage<br>Change** |
|  | **April 3, 2026** | **March 28, 2025** | **2026 vs. 2025** |
| Provision (benefit) for income taxes | $3012 | $(275) | —<br> \* |

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\* Denotes change is greater than <u>+</u>100%.

The effective tax rates for the three months ended April 3, 2026 and March 28, 2025 were 36.7% and 0.5%, respectively. Our effective tax rates differ from the U.S. federal statutory rate of 21%, primarily due to the income tax expense generated in foreign jurisdictions.

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

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***Liquidity and Capital Resources***

Our principal sources of liquidity are cash, cash equivalents, investments available for sale ("AFS") and cash flow from operating activities. We believe these sources of liquidity will be sufficient to meet our anticipated cash needs, including working capital needs, capital expenditures and contractual obligations for at least 12 months from the issuance date of the financial statements. We expect that cash flow from operating activities may fluctuate in future periods as a result of a number of factors, including fluctuations in our operating results, working capital needs, capital expenditures, and capital deployment decisions. In addition, future capital requirements will depend on many factors including our growth rate in net sales, the timing and extent of spending to support our growth strategy, the expansion of selling and marketing activities, the timing of introductions of new products, as well as global macroeconomic factors. 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 April 3, 2026 and January 2, 2026 included the following (in thousands):

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| | | | |
|:---|:---|:---|:---|
|  | **April 3, 2026** | **January 2, 2026** | **2026 vs. 2025** |
| Cash and cash equivalents | $131864 | $153150 | $(21286) |
| Investments available for sale | 32025 | 34386 | (2361) |
| Total | $163889 | $187536 | $(23647) |
| Current assets | $312398 | $311545 | $853 |
| Current liabilities | 60994 | 68504 | (7510) |
| Working capital | $251404 | $243041 | $8363 |

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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 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. We do not have any off-balance sheet arrangements.

A summary of cash flows for the three months ended April 3, 2026 and March 28, 2025 was as follows (in thousands):

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| | | |
|:---|:---|:---|
|  | **Three Months Ended** | **Three Months Ended** |
|  | **April 3, 2026** | **March 28, 2025** |
| Cash flows from: |  |  |
| Operating activities | $(21695) | $(5734) |
| Investing activities | 2147 | 35351 |
| Financing activities | (1693) | (948) |
| Effect of exchange rate changes | (45) | 286 |
| Net increase (decrease) in cash and cash equivalents | (21286) | 28955 |
| Cash and cash equivalents, at beginning of year | 153150 | 144159 |
| Cash and cash equivalents, at end of period | $131864 | $173114 |

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For the three months ended April 3, 2026, net cash used in operating activities consisted of $42.7 million in working-capital changes primarily related to increases in accounts receivable due to higher sales in the first quarter of 2026, partially offset by $15.8 million in non-cash items primarily related to stock-based compensation, provision for sales returns and credit losses and depreciation of property, plant and equipment and $5.2 million in net income. For the three months ended March 28, 2025, net cash used in operating activities consisted of $54.2 million in net loss; partially offset by $28.3 million in working-capital changes primarily related to changes in accounts receivable, partially offset by changes in inventory, and $20.2 million in non-cash items primarily related to impairment on fixed assets and operating leases and stock-based compensation.

For the three months ended April 3, 2026, net cash provided by investment activities was $2.1 million which consisted of $7.1 million of proceeds from the maturity and sale of investments AFS, partially offset by $4.5 million of purchases of investments AFS. For the three months ended March 28, 2025, net cash provided by investment activities was $35.4 million which consisted of $51.1 million of proceeds from the maturity of investments AFS, partially offset by $14.7 million in purchases of investments AFS.

For the three months ended April 3, 2026, net cash used in financing activities was $1.7 million which primarily consisted of $1.9 million to repurchase employee common stock for taxes withheld. For the three months ended March 28, 2025, net cash used in financing activities was $0.9 million which primarily consisted of $1.3 million to repurchase employee common stock for taxes withheld.

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***Commitments***

*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."

## ITEM 3. QUANTITATIVE AND QUALITATI VE DISCLOSURES ABOUT MARKET RISK
During the three months ended April 3, 2026, there have been no material changes in the Company's qualitative and quantitative market risk since the disclosure in the Company's Annual Report on Form 10-K for the year ended January 2, 2026.

## ITEM 4. CONTROLS AND PROCEDURES
**Disclosure Controls and Procedures**

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

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

**Changes in Internal Control over Financial Reporting**

There were no changes in our internal control over financial reporting during the quarter ended April 3, 2026 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

# PART II – OTHE R INFORMATION

## ITEM 1. LEGAL PROCEEDINGS
From time to time, the Company is involved in various legal proceedings and other matters arising in the normal course of business. These legal proceedings and other matters may relate to, among other things, contractual rights and obligations, employment matters, or claims of product liability. The Company maintains insurance coverage for various matters, including product liability and certain securities claims. While the Company does not believe that any of the claims known is likely to have a material adverse effect on the Company's financial condition or results of operations, new claims or unexpected results of existing claims could lead to significant financial harm.

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## ITEM 1A. RIS K FACTORS
Our short and long-term success is subject to many factors that are beyond our control. Investors and prospective investors should consider carefully information contained in this report and the risks and uncertainties described in "Part I—Item 1A—Risk Factors" of the Company's Form 10-K for the fiscal year ended January 2, 2026. Such risks and uncertainties could materially adversely affect our business, financial condition or operating results.

## ITEM 5. OTHER INFORMATION
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)Trading Plans

During the quarter ended April 3, 2026, no director or officer (as defined in Rule 16a-1(f) under the Exchange Act) adopted or terminated:

&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;(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

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

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## ITEM 6. EXHIBITS

---

| | | |
|:---|:---|:---|
| **Exhibit Number** |  | **Description** |
| 3.1 |  | [<u>Amended and Restated Certificate of Incorporation</u>](https://www.sec.gov/Archives/edgar/data/718937/000114420418022487/tv491294_def14a.htm) (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 |  | [<u>Amended and Restated Bylaws</u>](https://www.sec.gov/Archives/edgar/data/718937/000095017025040620/staa-ex3_1.htm) (incorporated by reference to Exhibit 3.1 to the Company's Current Report on Form 8-K as filed with the Commission on March 17, 2025). |
| 4.1 |  | [<u>Form of Certificate for Common Stock, par value $0.01 per share</u>](https://www.sec.gov/Archives/edgar/data/718937/000114121803000057/staar8a1ex41.txt) (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). |
| 10.1 |  | [<u>Cooperation Agreement dated January 14, 2026 between the Company and Broadwood Partners, L.P.</u> (i](https://www.sec.gov/Archives/edgar/data/718937/000119312526013622/d831960dex101.htm)ncorporated 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). |
| 10.2 |  | [<u>Separation and Consulting Agreement dated January 14, 2026 between the Company and Stephen C. Farrell</u>](https://www.sec.gov/Archives/edgar/data/718937/000071893726000004/staa-ex10_30.htm) (incorporated by reference to Exhibit 10.30 to the Company's Annual Report on Form 10-K as filed with the Commission on March 3, 2026). |
| 10.3 |  | [<u>Interim Co-CEO Letter Agreement dated February 1, 2026 between the Company and Warren Foust</u>](https://www.sec.gov/Archives/edgar/data/718937/000071893726000004/staa-ex10_31.htm) (incorporated by reference to Exhibit 10.31 to the Company's Annual Report on Form 10-K as filed with the Commission on March 3, 2026). |
| 10.4 |  | [<u>Separation Agreement dated February 4, 2026 between the Company and Nathaniel Sisitsky</u>](https://www.sec.gov/Archives/edgar/data/718937/000071893726000004/staa-ex10_32.htm)(incorporated by reference to Exhibit 10.32 to the Company's Annual Report on Form 10-K as filed with the Commission on March 3, 2026). |
| 10.5 |  | [<u>Consulting Agreement dated February 4, 2026 between the Company and Nathaniel Sisitsky</u>](https://www.sec.gov/Archives/edgar/data/718937/000071893726000004/staa-ex10_33.htm)(incorporated by reference to Exhibit 10.33 to the Company's Annual Report on Form 10-K as filed with the Commission on March 3, 2026). |
| 31.1 | \* | [<u>Certifications Pursuant to Rule 13a-14(a) of the Securities Exchange Act of 1934, Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.</u>](staa-ex31_1.htm) |
| 31.2 | \* | [<u>Certifications Pursuant to Rule 13a-14(a) of the Securities Exchange Act of 1934, Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.</u>](staa-ex31_2.htm) |
| 32.1 | \*\* | [<u>Certification Pursuant to 18 U.S.C. Section 1350, Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.</u>](staa-ex32_1.htm) |
| 101 | \* | Financial statements from the quarterly report on Form 10-Q of STAAR Surgical Company for the quarter ended April 3, 2026 formatted in Inline Extensible Business Reporting Language (iXBRL), are filed herewith and include: (i) the Condensed Consolidated Balance Sheets, (ii) the Condensed Consolidated Statements of Income, (iii) the Condensed Consolidated Statements of Comprehensive Income, (iv) the Condensed Consolidated Statements of Stockholders' Equity, (v) the Condensed Consolidated Statements of Cash Flows, and (vi) the Notes to Condensed Consolidated Financial Statements tagged as blocks of text. |
| 104 |  | The cover page from the Company's Quarterly Report on Form 10-Q for the quarter ended April 3, 2026, has been formatted in Inline XBRL with applicable taxonomy extension information contained in Exhibit 101. |

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\* Filed herewith.

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

------

**SIGNATURES**

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

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| | | | |
|:---|:---|:---|:---|
|  |  | **STAAR SURGICAL COMPANY** | **STAAR SURGICAL COMPANY** |
| Dated: | May 13, 2026 | By: | /s/ DEBORAH ANDREWS |
|  |  |  | **Deborah Andrews** |
|  |  |  | ***Interim Co-Chief Executive Officer and Chief Financial Officer*** |
|  |  |  | ***(on behalf of the Registrant and as its principal executive officer and principal financial officer)*** |

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## Exhibit 31.1

**Exhibit 31.1**

**Certification pursuant to Exchange Act Rule 13a-14(a)/15d-14(a),**

 **As adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002**

I, Warren Foust, certify that:

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

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

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

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

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

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

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

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

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

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

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

---

| | | |
|:---|:---|:---|
| Dated: | May 13, 2026 | /s/ WARREN FOUST |
|  |  | **Warren Foust** |
|  |  | ***Interim Co-Chief Executive Officer, President and Chief Operating Officer*** |
|  |  | ***(principal executive officer)*** |

---

------

## Exhibit 31.2

**Exhibit 31.2**

**Certification pursuant to Exchange Act Rule 13a-14(a)/15d-14(a),**

 **As adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002**

I, Deborah Andrews, certify that:

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

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

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

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

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

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

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

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

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

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

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

---

| | | |
|:---|:---|:---|
| Dated: | May 13, 2026 | /s/ DEBORAH ANDREWS |
|  |  | **Deborah Andrews** |
|  |  | ***Interim Co-Chief Executive Officer and Chief Financial Officer*** |
|  |  | ***(principal executive officer and principal financial officer)*** |

---

------

## Exhibit 32.1

**Exhibit 32.1**

**Certification pursuant to 18 U.S.C. Section 1350, As adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002**

In connection with the filing of the Quarterly Report on Form 10-Q for the period ended April 3, 2026 (the "Report") by STAAR Surgical Company ("Registrant"), each of the undersigned hereby certifies that:

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

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

---

| | | |
|:---|:---|:---|
| Dated: | May 13, 2026 | /s/ WARREN FOUST |
|  |  | **Warren Foust** |
|  |  | ***Interim Co-Chief Executive Officer, President and Chief Operating Officer*** |
|  |  | ***(principal executive officer)*** |

---

---

| | | |
|:---|:---|:---|
| Dated: | May 13, 2026 | /s/ DEBORAH ANDREWS |
|  |  | **Deborah Andrews** |
|  |  | ***Interim Co-Chief Executive Officer and Chief Financial Officer*** |
|  |  | ***(principal executive officer and principal financial officer)*** |

---

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

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