Note 12 - Segment and Geographic Information

12 Months Ended

Dec. 31, 2024

Notes to Financial Statements

Segment Reporting Disclosure [Text Block]

12. Segment and Geographic Information

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

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

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

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

	Year ended December 31,
	2024		2023		2022
	(in thousands)
Net sales	$	219,863	$	193,484	$	161,651
Cost of sales		68,962		66,435		56,755
Gross profit		150,901		127,049		104,896
Less:
Selling expense		42,109		37,166		29,420
Marketing expense		4,628		3,888		3,501
Administrative expense		23,934		21,563		19,285
Finance expense		9,896		8,227		7,691
Management information systems expense		2,428		2,042		1,769
Research and development expense		3,431		2,738		1,895
Process engineering expense		2,938		3,632		3,051
Regulatory and clinical expense		9,281		10,596		8,348
Restructuring expense		-		485		3,107
Other income (expense), net*		8,218		6,607		6,193
Net income	$	44,038	$	30,105	$	20,636

*Refer to the consolidated statements of operations for a listing of other income and expense.

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

	Year ended December 31,
	2024		2023		2022
	(in thousands)
United States	$	128,743	$	117,811	$	99,463
Germany		14,420		13,420		11,223
Canada		13,669		10,786		8,336
United Kingdom		10,960		8,561		5,841
Other countries		52,071		42,906		36,788
Net sales	$	219,863	$	193,484	$	161,651

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

	As of December 31,
	2024		2023		2022
	(in thousands)
United States	$	36,291	$	34,729	$	29,042
Germany		2,163		2,350		2,462
Other countries		3,114		2,702		2,031
Total long-term assets	$	41,568	$	39,781	$	33,535