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, 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.

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 ~~48,038,340~~48,206,299 shares of common stock, par value $0.01 per share, issued and outstanding as of ~~August 5,~~October 28, 2022.

	July 1, 2022			December 31, 2021			September 30, 2022			December 31, 2021
ASSETS
Current assets:
Cash and cash equivalents	$	202,490		$	199,706		$	129,242		$	199,706
Accounts receivable trade, net of allowance for credit losses of $55 and $43, respectively		62,811			43,531
Investments available for sale								82,091			—
Accounts receivable trade, net of allowance for credit losses of $103 and $43, respectively								55,429			43,531
Inventories, net		18,089			17,274			19,930			17,274
Prepayments, deposits and other current assets		13,066			10,900			10,218			10,900
Total current assets		296,456			271,411			296,910			271,411
Investments available for sale								13,360			—
Property, plant and equipment, net		42,813			35,912			48,048			35,912
Finance lease right-of-use assets, net		420			506			380			506
Operating lease right-of-use assets, net		30,363			31,310			29,503			31,310
Intangible assets, net		184			218			171			218
Goodwill		1,786			1,786			1,786			1,786
Deferred income taxes		3,217			3,813			3,710			3,813
Other assets		786			822			808			822
Total assets	$	376,025		$	345,778		$	394,676		$	345,778
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	12,716		$	8,699		$	7,567		$	8,699
Obligations under finance leases		166			127			167			127
Obligations under operating leases		3,708			3,283			3,474			3,283
Allowance for sales returns		5,550			4,816			5,040			4,816
Other current liabilities		24,374			31,877			29,072			31,877
Total current liabilities		46,514			48,802			45,320			48,802
Obligations under finance leases		295			382			252			382
Obligations under operating leases		26,880			28,269			26,032			28,269
Deferred income taxes		1,037			811			1,554			811
Asset retirement obligations		169			198			158			198
Pension liability		1,823			8,758			1,228			8,758
Total liabilities		76,718			87,220			74,544			87,220
Commitments and contingencies
Stockholders’ equity:
Common stock, $0.01 par value; 60,000 shares authorized: 48,024 and 47,716 shares issued and outstanding at July 1, 2022 and December 31, 2021, respectively		480			477
Common stock, $0.01 par value; 60,000 shares authorized: 48,202 and 47,716 shares issued and outstanding at September 30, 2022 and December 31, 2021, respectively								482			477
Additional paid-in capital		387,328			373,519			398,448			373,519
Accumulated other comprehensive loss		249			(4,048	)		(310	)		(4,048	)
Accumulated deficit		(88,750	)		(111,390	)		(78,488	)		(111,390	)
Total stockholders’ equity		299,307			258,558			320,132			258,558
Total liabilities and stockholders’ equity	$	376,025		$	345,778		$	394,676		$	345,778

	Three Months Ended						Six Months Ended						Three Months Ended						Nine Months Ended
	July 1, 2022			July 2, 2021			July 1, 2022			July 2, 2021			September 30, 2022			October 1, 2021			September 30, 2022			October 1, 2021
Net sales	$	81,101		$	62,367		$	144,301		$	113,119		$	76,046		$	58,352		$	220,347		$	171,471
Cost of sales		17,229			13,164			31,165			24,774			15,584			13,051			46,749			37,825
Gross profit		63,872			49,203			113,136			88,345			60,462			45,301			173,598			133,646
Selling, general and administrative expenses:
General and administrative		13,983			11,441			25,923			21,653			14,011			11,018			39,934			32,671
Selling and marketing		24,233			18,853			41,503			32,054			23,130			18,175			64,633			50,229
Research and development		8,636			8,260			16,577			16,519			9,616			8,271			26,193			24,790
Total selling, general and administrative expenses		46,852			38,554			84,003			70,226			46,757			37,464			130,760			107,690
Operating income		17,020			10,649			29,133			18,119			13,705			7,837			42,838			25,956
Other expense, net:
Interest income (expense), net		43			(5	)		37			(12	)		897			(23	)		934			(35	)
Loss on foreign currency transactions		(1,860	)		(131	)		(2,775	)		(1,430	)		(2,129	)		(610	)		(4,904	)		(2,040	)
Royalty income		177			151			450			311			77			185			527			496
Other income (expense), net		89			51			151			(34	)		27			(13	)		178			(47	)
Total other income (expense), net		(1,551	)		66			(2,137	)		(1,165	)
Total other expense, net														(1,128	)		(461	)		(3,265	)		(1,626	)
Income before income taxes		15,469			10,715			26,996			16,954			12,577			7,376			39,573			24,330
Provision for income taxes		2,431			2,148			4,356			3,395			2,315			1,356			6,671			4,751
Net income	$	13,038		$	8,567		$	22,640		$	13,559		$	10,262		$	6,020		$	32,902		$	19,579
Net income per share:
Basic	$	0.27		$	0.18		$	0.47		$	0.29		$	0.21		$	0.13		$	0.69		$	0.42
Diluted	$	0.26		$	0.17		$	0.46		$	0.27		$	0.21		$	0.12		$	0.67		$	0.40
Weighted average shares outstanding:
Basic		47,889			47,099			47,822			46,858			48,102			47,483			47,915			47,064
Diluted		49,223			49,491			49,264			49,373			49,549			49,592			49,371			49,448

	Three Months Ended						Six Months Ended						Three Months Ended						Nine Months Ended
	July 1, 2022			July 2, 2021			July 1, 2022			July 2, 2021			September 30, 2022			October 1, 2021			September 30, 2022			October 1, 2021
Net income	$	13,038		$	8,567		$	22,640		$	13,559		$	10,262		$	6,020		$	32,902		$	19,579
Other comprehensive income:
Other comprehensive income (loss):
Defined benefit plans:
Net change in plan assets		2,593			(457	)		6,661			2,627			465			90			7,126			2,717
Reclassification into other income (expense), net		33			120			85			240			54			121			139			361
Foreign currency translation loss		(1,502	)		(111	)		(2,516	)		(1,227	)
Investments available for sale unrealized loss														(432	)		—			(432	)		—
Foreign currency translation gain (loss)														(958	)		29			(3,474	)		(1,198	)
Tax effect		188			69			67			69			312			(32	)		379			37
Other comprehensive income (loss), net of tax		1,312			(379	)		4,297			1,709			(559	)		208			3,738			1,917
Comprehensive income	$	14,350		$	8,188		$	26,937		$	15,268		$	9,703		$	6,228		$	36,640		$	21,496

	Three Months Ended															Three Months Ended
	Common Stock Shares		Common Stock Par Value		Additional Paid-In Capital		Accumulated Other Compre- hensive Income (Loss)			Accumulated Deficit			Total			Common Stock Shares		Common Stock Par Value		Additional Paid-In Capital		Accumulated Other Compre- hensive Income (Loss)			Accumulated Deficit			Total
Balance, at April 1, 2022		47,810	$	478	$	378,690	$	(1,063	)	$	(101,788	)	$	276,317
Balance, at July 1, 2022																	48,024	$	480	$	387,328	$	249		$	(88,750	)	$	299,307
Net income																	—		—		—		—			10,262			10,262
Other comprehensive loss																	—		—		—		(559	)		—			(559	)
Common stock issued upon exercise of options																	166		2		5,032		—			—			5,034
Stock-based compensation																	—		—		6,088		—			—			6,088
Vested restricted and performance stock																	12		—		—		—			—			—
Balance, at September 30, 2022																	48,202	$	482	$	398,448	$	(310	)	$	(78,488	)	$	320,132

Balance, at July 2, 2021																	47,391	$	474	$	360,316	$	(3,836	)	$	(122,332	)	$	234,622
Net income		—		—		—		—			13,038			13,038			—		—		—		—			6,020			6,020
Other comprehensive income		—		—		—		1,312			—			1,312			—		—		—		208			—			208
Common stock issued upon exercise of options		202		2		2,232		—			—			2,234			183		2		4,210		—			—			4,212
Stock-based compensation		—		—		6,406		—			—			6,406			—		—		4,046		—			—			4,046
Unvested restricted stock		7		—		—		—			—			—
Vested restricted and performance stock		5		—		—		—			—			—			25		—		—		—			—			—
Balance, at July 1, 2022		48,024	$	480	$	387,328	$	249		$	(88,750	)	$	299,307

Balance, at April 2, 2021		46,857	$	469	$	348,063	$	(3,457	)	$	(130,899	)	$	214,176
Net income		—		—		—		—			8,567			8,567
Other comprehensive loss		—		—		—		(379	)		—			(379	)
Common stock issued upon exercise of options		530		5		7,871		—			—			7,876
Stock-based compensation		—		—		4,382		—			—			4,382
Unvested restricted stock		3		—		—		—			—			—
Vested restricted stock		1		—		—		—			—			—
Balance, at July 2, 2021		47,391	$	474	$	360,316	$	(3,836	)	$	(122,332	)	$	234,622
Balance, at October 1, 2021																	47,599	$	476	$	368,572	$	(3,628	)	$	(116,312	)	$	249,108

	Six Months Ended														Nine Months Ended
	Common Stock Shares		Common Stock Par Value		Additional Paid-In Capital		Accumulated Other Compre- hensive Income (Loss)			Accumulated Deficit			Total		Common Stock Shares		Common Stock Par Value		Additional Paid-In Capital		Accumulated Other Compre- hensive Income (Loss)			Accumulated Deficit			Total
Balance, at December 31, 2021		47,716	$	477	$	373,519	$	(4,048	)	$	(111,390	)	$	258,558		47,716	$	477	$	373,519	$	(4,048	)	$	(111,390	)	$	258,558
Net income		—		—		—		—			22,640			22,640		—		—		—		—			32,902			32,902
Other comprehensive income		—		—		—		4,297			—			4,297		—		—		—		3,738			—			3,738
Common stock issued upon exercise of options		251		3		3,143		—			—			3,146		417		4		8,175		—			—			8,179
Stock-based compensation		—		—		10,666		—			—			10,666		—		—		16,754		—			—			16,754
Unvested restricted stock		7		—		—		—			—			—		7		—		—		—			—			—
Vested restricted and performance stock		50		—		—		—			—			—		62		1		—		—			—			1
Balance, at July 1, 2022		48,024	$	480	$	387,328	$	249		$	(88,750	)	$	299,307
Balance, at September 30, 2022																48,202	$	482	$	398,448	$	(310	)	$	(78,488	)	$	320,132

Balance, at January 1, 2021		46,448	$	464	$	338,194	$	(5,545	)	$	(135,891	)	$	197,222		46,448	$	464	$	338,194	$	(5,545	)	$	(135,891	)	$	197,222
Net income		—		—		—		—			13,559			13,559		—		—		—		—			19,579			19,579
Other comprehensive income		—		—		—		1,709			—			1,709		—		—		—		1,917			—			1,917
Common stock issued upon exercise of options		906		9		14,101		—			—			14,110		1,089		11		18,311		—			—			18,322
Stock-based compensation		—		—		8,021		—			—			8,021		—		—		12,067		—			—			12,067
Unvested restricted stock		3		—		—		—			—			—		3		—		—		—			—			—
Vested restricted stock		34		1		—		—			—			1
Balance, at July 2, 2021		47,391	$	474	$	360,316	$	(3,836	)	$	(122,332	)	$	234,622
Vested restricted and performance stock																59		1		—		—			—			1
Balance, at October 1, 2021																47,599	$	476	$	368,572	$	(3,628	)	$	(116,312	)	$	249,108

	Six Months Ended						Nine Months Ended
	July 1, 2022			July 2, 2021			September 30, 2022			October 1, 2021
Cash flows from operating activities:
Net income	$	22,640		$	13,559		$	32,902		$	19,579
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation of property, plant, and equipment		2,024			1,754			3,101			2,671
Amortization of intangibles		15			17			22			26
Accretion/Amortization of investments available for sale								(307	)		—
Deferred income taxes		—			845			23			845
Change in net pension liability		52			(27	)		40			91
Loss on disposal of property and equipment		—			2			—			2
Stock-based compensation expense		9,648			7,322			15,375			10,985
Provision for sales returns and bad debts		800			932			361			1,069
Inventory provision		1,428			697			2,020			1,097
Changes in working capital:
Accounts receivable		(20,137	)		(13,797	)		(13,108	)		(7,072	)
Inventories		(1,825	)		2,238			(4,123	)		1,301
Prepayments, deposits, and other current assets		(2,260	)		(307	)		526			1,288
Accounts payable		3,243			(268	)		(1,834	)		(40	)
Other current liabilities		(6,992	)		181			(2,253	)		3,622
Net cash provided by operating activities		8,636			13,148			32,745			35,464
Cash flows from investing activities:
Acquisition of property and equipment		(7,810	)		(5,683	)		(14,083	)		(8,956	)
Purchase of investments available for sale								(95,576	)		—
Net cash used in investing activities		(7,810	)		(5,683	)		(109,659	)		(8,956	)
Cash flows from financing activities:
Repayment of finance lease obligations		(45	)		(278	)		(85	)		(314	)
Proceeds from the exercise of stock options		3,146			14,110			8,179			18,322
Proceeds from vested restricted stock		—			1			1			1
Net cash provided by financing activities		3,101			13,833			8,095			18,009
Effect of exchange rate changes on cash and cash equivalents		(1,143	)		(668	)		(1,645	)		(724	)
Increase in cash and cash equivalents		2,784			20,630
Increase (decrease) in cash and cash equivalents								(70,464	)		43,793
Cash and cash equivalents, at beginning of the period		199,706			152,453			199,706			152,453
Cash and cash equivalents, at end of the period	$	202,490		$	173,083		$	129,242		$	196,246

The Condensed Consolidated Financial Statements of the Company present the financial position, results of operations, and cash flows of STAAR Surgical Company and its wholly owned subsidiaries. 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 December 31, 2021 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 December 31, 2021.

The Condensed Consolidated Financial Statements for the three and ~~six~~nine months ended ~~July 1,~~September 30, 2022 and ~~July 2~~October 1, 2021, 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 and ~~six~~nine months ended ~~July 1,~~September 30, 2022 and ~~July 2,~~October 1, 2021, 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.

Cash and cash equivalents include cash and balances in deposits and money market accounts held at banks and financial institutions. Such balances generally exceed the federal insurance limits; however, the Company periodically assesses the financial condition of the institutions and believes that the risk of any loss is minimal.

Investments available for sale (“AFS”) are investments in debt securities for which the Company does not have the positive intent and ability to hold to maturity. The Company’s investment policy primary objective is capital preservation while maximizing its return on investment. Investments may include U.S. government and corporate debt securities, commercial paper, certain certificates of deposit and related security types, that are rated by two nationally recognized statistical rating organizations with minimum investment grade ratings of AAA to A-/A-1+ to A-2, or the equivalent. There are also limits to the amount of credit exposure in any given security type.

Investments AFS are measured at fair value and its unrealized gains and losses reported net of the allowance for credit losses and applicable income taxes, are recognized in accumulated other comprehensive income (loss) on the Consolidated Balance Sheets. The cost of investments AFS is adjusted for amortization of premiums and accretion of discounts to maturity. Interest earned, including amortization of premiums and accretion of discounts recognized, is included in interest income (expense) on the Consolidated Statements of Income. The cost of investments for purposes of computing realized and unrealized gains and losses is based on the specific identification method.

The Company recognizes other-than-temporary impairment (“OTTI”) of a debt security for which there has been a decline in fair value below amortized cost if (i) management intends to sell the security, (ii) it is more-likely-than-not that the Company will be required to sell the security before recovery of its amortized cost basis, or (iii) the Company does not expect to recover the entire amortized cost basis of the security. The amount by which amortized cost exceeds the fair value of a debt security that is considered to have OTTI is separated into a component representing the credit loss, which is recognized in other income (expense) on the Consolidated Statements of Income, and a component related to all other factors, which is recognized in accumulated other comprehensive income (loss) on the Consolidated Balance Sheets. The measurement of the credit loss component is equal to the difference between the debt security’s amortized cost basis and the present value of its expected future cash flows discounted at the security’s effective yield.

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

There were no vendors that accounted for over 10% of the Company’s consolidated accounts payable as of ~~July 1,~~September 30, 2022 and December 31, 2021. There were no vendors that accounted for over 10% of the Company’s consolidated purchases for the three and ~~six~~nine months ended ~~July 1,~~September 30, 2022 and ~~July 2,~~October 1, 2021, respectively.

In the three months ended September 30, 2022, the Company started to invest its cash in slightly higher yielding securities. Investments AFS and the related fair value measurement consisted of the following (dollars in thousands):

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.

The Company assessed each debt security with gross unrealized losses for credit impairment. As part of that assessment, the Company concluded that it is more-likely-than-not that the Company will not be required to sell, prior to the recovery of the amortized cost basis. The Company did not recognize impairment for the three and nine months ended September 30, 2022.

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

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):

	July 1, 2022			December 31, 2021			September 30, 2022			December 31, 2021
Raw materials and purchased parts	$	5,119		$	3,971		$	5,607		$	3,971
Work in process		3,446			4,031			4,038			4,031
Finished goods		11,222			10,429			12,109			10,429
Total inventories, gross		19,787			18,431			21,754			18,431
Less inventory reserves		(1,698	)		(1,157	)		(1,824	)		(1,157	)
Total inventories, net	$	18,089		$	17,274		$	19,930		$	17,274

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

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

	July 1, 2022		December 31, 2021		September 30, 2022		December 31, 2021
Prepayments and deposits	$	4,397	$	4,047	$	3,716	$	4,047
Prepaid insurance		1,351		2,647		517		2,647
Prepaid marketing		2,244		543		2,590		543
Consumption tax receivable		519		830		694		830
Value added tax (VAT) receivable		2,208		2,197		1,555		2,197
BVG (Swiss Pension) prepayment		1,021		15		722		15
Swiss social insurance prepayment		945		—
Other⁽¹⁾		381		621		424		621
Total prepayments, deposits and other current assets	$	13,066	$	10,900	$	10,218	$	10,900

	July 1, 2022			December 31, 2021			September 30, 2022			December 31, 2021
Machinery and equipment	$	26,611		$	24,127		$	27,860		$	24,127
Computer equipment and software		8,977			8,807			9,243			8,807
Furniture and fixtures		4,478			3,658			4,453			3,658
Leasehold improvements		12,081			11,821			12,212			11,821
Construction in process		26,828			21,827			31,398			21,827
Total property, plant and equipment, gross		78,975			70,240			85,166			70,240
Less accumulated depreciation		(36,162	)		(34,328	)		(37,118	)		(34,328	)
Total property, plant and equipment, net	$	42,813		$	35,912		$	48,048		$	35,912

July 1, 2022

December 31, 2021

September 30, 2022

December 31, 2021

Long-lived amortized intangible assets

Gross

Carrying

Amount

Accumulated

Amortization

Net

Gross

Carrying

Amount

Accumulated

Amortization

Net

Gross

Carrying

Amount

Accumulated

Amortization

Net

Gross

Carrying

Amount

Accumulated

Amortization

Net

Patents and licenses

9,227

(9,043

)

184

9,315

(9,097

)

218

9,194

(9,023

)

171

9,315

(9,097

)

218

	July 1, 2022		December 31, 2021		September 30, 2022		December 31, 2021
Accrued salaries and wages	$	9,305	$	12,030	$	9,174	$	12,030
Accrued bonuses		2,754		8,091		5,356		8,091
Income taxes payable		4,074		2,248		5,232		2,248
Marketing obligations		2,481		2,243		2,418		2,243
Other⁽¹⁾		5,760		7,265		6,892		7,265
Total other current liabilities	$	24,374	$	31,877	$	29,072	$	31,877

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

The Company entered into finance leases primarily related to purchases of equipment used for manufacturing, computer-related equipment or furniture and fixtures. These finance leases are two to five years in length and have fixed payment amounts for the term of the contract and have options to purchase the assets at the end of the lease term. Supplemental balance sheet information related to finance leases consisted of the following (dollars in thousands):

	July 1, 2022			December 31, 2021			September 30, 2022			December 31, 2021
Machinery and equipment	$	30		$	35		$	28		$	35
Computer equipment and software		17			506			16			506
Furniture and fixtures		475			475			475			475
Finance lease right-of-use assets, gross		522			1,016			519			1,016
Less accumulated depreciation		(102	)		(510	)		(139	)		(510	)
Finance lease right-of-use assets, net	$	420		$	506		$	380		$	506

Current finance lease obligations							$	167		$	127
Long-term finance lease obligations								252			382
Total finance lease liability	$	461		$	509		$	419		$	509
Weighted-average remaining lease term (in years)		2.7			3.2			2.5			3.2
Weighted-average discount rate		4.09	%		4.02	%		4.11	%		4.02	%

Supplemental cash flow information related to finance leases consisted of the following (dollars in thousands):

	Three Months Ended				Six Months Ended				Three Months Ended				Nine Months Ended
	July 1, 2022		July 2, 2021		July 1, 2022		July 2, 2021		September 30, 2022		October 1, 2021		September 30, 2022		October 1, 2021
Amortization of finance lease right-of-use asset	$	39	$	20	$	82	$	56	$	39	$	15	$	121	$	71
Interest on finance lease liabilities		5		1		8		5		5		1		13		6
Cash paid for amounts included in the measurement of finance lease liabilities:
Operating cash flows		5		1		8		5		5		1		13		6
Financing cash flows		27		43		45		278		40		36		85		314

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):

	July 1, 2022			December 31, 2021			September 30, 2022			December 31, 2021
Machinery and equipment	$	782		$	760		$	762		$	760
Computer equipment and software		446			472			446			472
Real property		34,108			34,426			33,751			34,426
Operating lease right-of-use assets, gross		35,336			35,658			34,959			35,658
Less accumulated depreciation		(4,973	)		(4,348	)		(5,456	)		(4,348	)
Operating lease right-of-use assets, net	$	30,363		$	31,310		$	29,503		$	31,310

Current operating lease obligations							$	3,474		$	3,283
Long-term operating lease obligations								26,032			28,269
Total operating lease liability	$	30,588		$	31,552		$	29,506		$	31,552
Weighted-average remaining lease term (in years)		7.4			7.8			7.6			7.8
Weighted-average discount rate		3.66	%		3.56	%		4.04	%		3.56	%

9Supplemental cash flow information related to operating leases was as follows (dollars in thousands):

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

Maturities of lease liabilities under operating and finance leases having initial or remaining non-cancelable lease terms more than one year as of ~~July 1,~~September 30, 2022 is as follows (in thousands):

As of July 1, 2022
12 Months Ended

Operating Leases

Finance Leases

June 2023

$
5,340

$
181

June 2024

5,392

179

June 2025

4,624

128

June 2026

3,700

—

June 2027

3,655

—

Thereafter

12,613

—

Total future minimum lease payments

$
35,324

$
488

Less amounts representing interest

(4,736
)

(27
)
Present value of future minimum lease payments

$
30,588

$
461

Current lease obligations

(3,708
)

(166
)
Long-term lease obligations

$
26,880

$
295

As of September 30, 2022 12 Months Ended	Operating Leases			Finance Leases
September 2023	$	5,179		$	181
September 2024		5,152			176
September 2025		4,224			85
September 2026		3,659			—
September 2027		3,671			—
Thereafter		13,099			—
Total future minimum lease payments	$	34,984		$	442
Less amounts representing interest		(5,478	)		(23	)
Present value of future minimum lease payments	$	29,506		$	419

The effective tax rates for the three months ended ~~July 1,~~September 30, 2022 and ~~July 2,~~October 1, 2021 was ~~15.7%~~18.4% and ~~20.0%~~18.4%, respectively, and was ~~16.1%~~16.9% and ~~20.0%~~19.5%, for the ~~six~~nine months ended ~~July 1,~~September 30, 2022 and ~~July 2,~~October 1, 2021, respectively. The Company’s effective tax rates differ from the U.S. federal statutory rate of 21% for the three and ~~six~~nine months ended ~~July 1,~~September 30, 2022 and ~~July 2,~~October 1, 2021, respectively, primarily due to the income taxes generated in foreign jurisdictions. The differences in the effective tax rate for the three and ~~six~~nine months ended ~~July 1,~~September 30, 2022 ~~was lower than~~compared to the same period in 2021 was primarily due to jurisdictions in which the income is earned.

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

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						Six Months Ended						Three Months Ended						Nine Months Ended
	July 1, 2022			July 2, 2021			July 1, 2022			July 2, 2021			September 30, 2022			October 1, 2021			September 30, 2022			October 1, 2021
Service cost⁽¹⁾	$	309		$	329		$	635		$	677		$	306		$	326		$	941		$	1,003
Interest cost⁽²⁾		21			14			41			28			22			14			63			42
Expected return on plan assets⁽²⁾		(123	)		(101	)		(241	)		(200	)		(125	)		(99	)		(366	)		(299	)
Prior service credit⁽^2),(3)		(46	)		(11	)		(91	)		(22	)		(44	)		(10	)		(135	)		(32	)
Actuarial loss recognized in current period⁽^2),(3)		79			131			176			262			98			131			274			393
Net periodic pension cost	$	240		$	362		$	520		$	745		$	257		$	362		$	777		$	1,107

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):

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

	Three Months Ended				Six Months Ended				Three Months Ended				Nine Months Ended
	July 1, 2022		July 2, 2021		July 1, 2022		July 2, 2021		September 30, 2022		October 1, 2021		September 30, 2022		October 1, 2021
Employee stock options	$	2,457	$	2,784	$	4,784	$	5,256	$	2,865	$	2,594	$	7,649	$	7,850
Restricted stock		442		232		551		398		67		109		618		507
Restricted stock units		1,231		811		1,993		1,348		1,249		700		3,242		2,048
Performance stock units		1,310		108		1,692		201		1,240		124		2,932		325
Nonemployee stock options		314		57		628		119		306		136		934		255
Total stock-based compensation expense	$	5,754	$	3,992	$	9,648	$	7,322	$	5,727	$	3,663	$	15,375	$	10,985

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

	Three Months Ended				Six Months Ended				Three Months Ended				Nine Months Ended
	July 1, 2022		July 2, 2021		July 1, 2022		July 2, 2021		September 30, 2022		October 1, 2021		September 30, 2022		October 1, 2021
Cost of sales	$	106	$	54	$	176	$	89	$	233	$	61	$	409	$	150
General and administrative		2,806		1,815		4,587		3,254		2,584		1,671		7,171		4,925
Selling and marketing		1,324		953		2,213		1,786		1,335		851		3,548		2,637
Research and development		1,518		1,170		2,672		2,193		1,575		1,080		4,247		3,273
Total stock-based compensation expense, net		5,754		3,992		9,648		7,322		5,727		3,663		15,375		10,985
Amounts capitalized as part of inventory		652		390		1,018		699		361		383		1,379		1,082
Total stock-based compensation expense, gross	$	6,406	$	4,382	$	10,666	$	8,021	$	6,088	$	4,046	$	16,754	$	12,067

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

The Amended and Restated Omnibus Equity Incentive Plan (“the Plan”) provides for various forms of stock-based incentives. To date, of the available forms of awards under the Plan, the Company has granted only stock options, restricted stock, unrestricted share grants, restricted stock units (“RSUs”) and performance stock units (“PSUs”). Options under the 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, and expire over periods not exceeding 10 years from the date of grant. Certain option and share awards provide for accelerated vesting if there is a change in control and pre-established financial metrics are met (as defined in the Plan). Grants of restricted stock outstanding under the Plan generally vest over periods of one to three years. Grants of RSUs and PSUs outstanding under the Plan generally vest based on service, performance, or a combination of both. As of ~~July 1,~~September 30, 2022, there were ~~2,156,185~~2,133,765 shares available for grant under the Plan.

The fair value of each 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 options granted is derived from the historical exercises and post-vesting cancellations and represents the period of time that options granted are expected to be outstanding. The Company has calculated a 5% 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						Six Months Ended						Three Months Ended						Nine Months Ended
	July 1, 2022			July 2, 2021			July 1, 2022			July 2, 2021			September 30, 2022			October 1, 2021			September 30, 2022			October 1, 2021
Expected dividend yield		0	%		0	%		0	%		0	%		0	%		0	%		0	%		0	%
Expected volatility		54	%		53	%		54	%		53	%		54	%		53	%		54	%		53	%
Risk-free interest rate		3.27	%		0.83	%		1.83	%		0.84	%		2.91	%		0.79	%		1.88	%		0.84	%
Expected term (in years)		5.10			5.38			5.10			5.38			5.10			5.38			5.10			5.38

A summary of stock option activity under the Plan for ~~six~~nine months ended ~~July 1,~~September 30, 2022 is presented below:

	Stock Options (in 000’s)			Minimum Exercise Price		Maximum Exercise Price		Stock Options (in 000’s)			Minimum Exercise Price		Maximum Exercise Price
Outstanding at December 31, 2021		2,435							2,435
Granted		421							443
Exercised		(251	)						(417	)
Forfeited or expired		(16	)						(23	)
Outstanding at July 1, 2022		2,589		$	5.34	$	154.96
Exercisable at July 1, 2022		1,873
Outstanding at September 30, 2022									2,438		$	5.34	$	154.96
Exercisable at September 30, 2022									1,778

A summary of restricted stock, RSUs and PSUs activity under the Plan for the ~~six~~nine months ended ~~July 1,~~September 30, 2022 is presented below (shares in thousands):

	Restricted Stock			RSUs			PSUs			Restricted Stock			RSUs			PSUs
Unvested at December 31, 2021		3			131			10			3			131			10
Granted		6			113			113			6			116			113
Vested		(5	)		(45	)		(5	)		(5	)		(57	)		(5	)
Unvested at July 1, 2022		4			199			118
Unvested at September 30, 2022											4			190			118

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

The Company’s Chief Executive Officer entered into an employment agreement with the Company, effective March 1, 2015. She and certain officers have as provisions of their agreements certain rights, including continuance of cash compensation and benefits, upon a “change in control,” which may include an acquisition of substantially all its assets, or termination “without cause or for good reason” as defined in the employment agreements.

The following table sets forth the computation of basic and diluted net income per share (in thousands except per share amounts):

	Three Months Ended						Six Months Ended						Three Months Ended						Nine Months Ended
	July 1, 2022			July 2, 2021			July 1, 2022			July 2, 2021			September 30, 2022			October 1, 2021			September 30, 2022			October 1, 2021
Numerator:
Net income	$	13,038		$	8,567		$	22,640		$	13,559		$	10,262		$	6,020		$	32,902		$	19,579
Denominator:
Weighted average common shares:
Common shares outstanding		47,893			47,102			47,826			46,861			48,106			47,486			47,919			47,067
Less: Unvested restricted stock		(4	)		(3	)		(4	)		(3	)		(4	)		(3	)		(4	)		(3	)
Denominator for basic calculation		47,889			47,099			47,822			46,858			48,102			47,483			47,915			47,064
Weighted average effects of potentially diluted common stock:
Stock options		1,299			2,283			1,386			2,405			1,336			2,013			1,378			2,277
Unvested restricted stock		3			9			2			9			2			—			2			6
RSUs		24			88			45			90			64			86			55			90
PSUs		8			12			9			11			45			10			21			11
Denominator for diluted calculation		49,223			49,491			49,264			49,373			49,549			49,592			49,371			49,448
Net income per share:
Basic	$	0.27		$	0.18		$	0.47		$	0.29		$	0.21		$	0.13		$	0.69		$	0.42
Diluted	$	0.26		$	0.17		$	0.46		$	0.27		$	0.21		$	0.12		$	0.67		$	0.40

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				Six Months Ended				Three Months Ended				Nine Months Ended
	July 1, 2022		July 2, 2021		July 1, 2022		July 2, 2021		September 30, 2022		October 1, 2021		September 30, 2022		October 1, 2021
Stock options		1,153		14		862		173		864		33		865		201
Restricted stock, RSUs and PSUs		267		—		122		—		2		6		20		3
Total		1,420		14		984		173		866		39		885		204

In the following tables, sales are disaggregated by category, sales by geographic market and sales by product data. The following breaks down sales into the following categories (in thousands):

	Three Months Ended				Six Months Ended				Three Months Ended				Nine Months Ended
	July 1, 2022		July 2, 2021		July 1, 2022		July 2, 2021		September 30, 2022		October 1, 2021		September 30, 2022		October 1, 2021
Non-consignment sales	$	76,444	$	57,368	$	134,013	$	102,785	$	71,223	$	53,819	$	205,236	$	156,604
Consignment sales		4,657		4,999		10,288		10,334		4,823		4,533		15,111		14,867
Total net sales	$	81,101	$	62,367	$	144,301	$	113,119	$	76,046	$	58,352	$	220,347	$	171,471

The Company markets and sells its products in over 75 countries and conducts its manufacturing in the United States. Other than China and Japan, the Company does not conduct business in any country in which its sales exceed 10% of worldwide consolidated net sales. Sales are attributed to countries based on location of customers. The composition of the Company’s net sales to unaffiliated customers was as follows (in thousands):

	Three Months Ended				Six Months Ended				Three Months Ended				Nine Months Ended
	July 1, 2022		July 2, 2021		July 1, 2022		July 2, 2021		September 30, 2022		October 1, 2021		September 30, 2022		October 1, 2021
Domestic	$	3,872	$	2,704	$	6,502	$	5,044	$	3,873	$	2,385	$	10,375	$	7,429
Foreign:
China		46,150		32,930		74,389		52,573		42,246		28,411		116,635		80,984
Japan		10,302		9,283		21,935		18,886		10,546		10,488		32,481		29,374
Other⁽¹⁾		20,777		17,450		41,475		36,616		19,381		17,068		60,856		53,684
Total foreign sales		77,229		59,663		137,799		108,075		72,173		55,967		209,972		164,042
Total net sales	$	81,101	$	62,367	$	144,301	$	113,119	$	76,046	$	58,352	$	220,347	$	171,471

100% of the Company’s sales are generated from the ophthalmic surgical product segment and the chief operating decision maker makes operating decisions and allocates resources based upon the consolidated operating results, and therefore the Company operates as 1one operating segment for financial reporting purposes. The Company’s principal products are implantable Collamer lenses (“ICLs”) used in refractive surgery and intraocular lenses (“IOLs”) used in cataract surgery. The composition of the Company’s net sales by product line was as follows (in thousands):

	Three Months Ended				Six Months Ended				Three Months Ended				Nine Months Ended
	July 1, 2022		July 2, 2021		July 1, 2022		July 2, 2021		September 30, 2022		October 1, 2021		September 30, 2022		October 1, 2021
ICLs	$	77,922	$	59,235	$	136,597	$	105,736	$	71,953	$	54,153	$	208,550	$	159,889
Other product sales:
Cataract IOLs		2,547		3,074		5,449		6,799		2,191		2,525		7,640		9,324
Other surgical products		632		58		2,255		584		1,902		1,674		4,157		2,258
Total other product sales		3,179		3,132		7,704		7,383		4,093		4,199		11,797		11,582
Total net sales	$	81,101	$	62,367	$	144,301	$	113,119	$	76,046	$	58,352	$	220,347	$	171,471

One customer, the Company’s distributor in China, accounted for ~~57%~~56% and ~~53%~~49% of net sales for the three months ended ~~July 1,~~September 30, 2022 and ~~July 2,~~October 1, 2021, respectively, and the same customer accounted for ~~52%~~53% and ~~46%~~47% for the ~~six~~nine months ended ~~July 1,~~September 30, 2022 and ~~July 2,~~October 1, 2021, respectively. As of ~~July 1,~~September 30, 2022 and December 31, 2021, respectively, one customer, the Company’s distributor in China, accounted for ~~60%~~57% and 47% of consolidated trade receivables.

In December 2019, COVID-19 surfaced and in March 2020, the World Health Organization declared a pandemic related to the rapid spread of COVID-19 around the world. The impact of the COVID-19 outbreak on the businesses and the economy in the U.S. and the rest of the world is, and is expected to continue to be, uncertain and may continue to be significant as COVID-19 variant strains emerge. The Company’s revenues have been adversely impacted, and the Company experienced a substantial slowdown in sales beginning March 20, 2020 in global geographies characterized as “hot spots” for the COVID-19 virus, including parts of Europe, North America, Asia, the Middle East and India. In certain of these markets, sales have paused as elective surgeries are discouraged to support COVID-19 related needs. The Company continues to monitor the commercial and operational impact of new variants of COVID-19.

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, and Section 21E of the Securities Exchange Act of 1934, as amended. Readers can recognize forward-looking statements by the use of words like “anticipate,” “estimate,” “expect,” “intend,” “plan,” “believe,” “will,” “should,” “forecast” and similar expressions in connection with any discussion of future operating or financial performance. In particular, these include statements about any of the following: any projections of or guidance as to earnings, revenue, sales, profit margins, expense rate, cash, effective tax rate, product mix, capital expense or any other financial items; the expected impact of the COVID-19 pandemic and related public health measures (including but not limited to their impact on sales, operations or clinical trials globally), 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 a new or improved products; commercialization of new or improved products; future economic conditions or size of market opportunities; expected costs of operations; statements of belief, including as to achieving 2022 and 2023 business plans; 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, such statements are inherently subject to risks and we can give no assurance that our expectations will prove to be correct. Actual results could differ from those described in this report because of numerous factors, many of which are beyond our control. These factors include, without limitation, those described in in our Annual Report on Form 10-K in “Item 1A. Risk Factors” filed on February 23, 2022. We undertake no obligation to update these forward-looking statements after the date of this report to reflect future events or circumstances or to reflect actual outcomes.

The following discussion should be read in conjunction with the audited consolidated financial statements of STAAR, including the related notes, provided in this report.

STAAR Surgical Company designs, develops, manufactures, and sells implantable lenses for the eye and companion delivery systems used to deliver the lenses into the eye. We are the world’s leading manufacturer of intraocular lenses for patients seeking refractive vision correction, and we also make lenses for use in surgery to treat cataracts. All the lenses we make are foldable, which allows the surgeon to insert them into the eye through a small incision during minimally invasive surgery. Refractive surgery is performed to treat the type of visual disorders that have traditionally been corrected using eyeglasses or contact lenses. We refer to our lenses used in refractive surgery as “implantable Collamer® lenses” or “ICLs.” The field of refractive surgery includes both lens-based procedures, using products like our ICL family of products, and laser-based procedures like LASIK. Successful refractive surgery can correct common vision disorders such as myopia, hyperopia, and astigmatism. Cataract surgery is a common outpatient procedure where the eye’s natural lens that has become cloudy with age is removed and replaced with an artificial lens called an intraocular lens (“IOL”) to restore the patient’s vision. STAAR employs a commercialization strategy that strives for sustainable profitable growth. 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 position our cataract IOL lenses used in surgery that treats cataracts based on quality and value.

~~During the second quarter,~~STAAR achieved 30% net sales ~~grew 30%~~growth in the third quarter despite constant currency challenges and, in Europe, macroeconomic headwinds. In the third quarter global ICL ~~units grew 42% compared to the prior~~unit growth was up 40% year ~~quarter. Highlights included~~over year, highlighted by unit growth in China up ~~45%~~52%, the U.S. up ~~36%~~63%, Japan up ~~41%~~40%, ~~India~~South Korea up ~~181%,~~49% and ~~Other~~ Asia Pacific distributor markets up ~~66%, all as compared~~47%. We advanced our patient awareness, engagement and market building initiatives for EVO in the U.S. during and subsequent to the ~~prior year quarter. The U.S. commercial launch~~third quarter, and introduced our presbyopia lens, EVO Viva™, to surgeons at our Experts Meeting preceding the annual congress of the ~~EVO Visian ICL family~~European Society of ~~myopia lenses (EVO) continued with the announced partnership with Joe Jonas, who earlier~~Cataract and Refractive Surgeons. In China, we expect to exceed a 25% share of refractive surgery market units by year end. Due to tighter COVID restrictions in China resulting in expected delayed demand in the ~~month received EVO lenses to correct his distance vision. In~~fourth quarter, ongoing headwinds in Europe, weakness in the ~~next several weeks, Joe Jonas~~Yen and ~~other paid EVO ambassador influencers~~Euro, and lower Other Products sales, we now anticipate total net sales will ~~share their journey to Visual Freedom via a global advertising, marketing and social media campaigns funded by STAAR regarding the EVO Visian ICL lens. We reaffirm our previously provided outlook~~be approximately $285 million for fiscal 2022. Our fiscal 2022 ~~net~~outlook includes ICL sales of approximately ~~$295~~$272 million, representing 28% year over year growth, and Other Products sales of approximately $13 million.”

Our low margin Other Products business, which ~~takes into account currency headwinds,~~represents approximately 5% of sales and consists of cataract IOLs, IOL injectors and injector parts, has faced increasing supply chain challenges. As a ~~continuation~~result of third-party materials and supply chain

challenges that only affect our Other Products business, we will no longer be able to support Other Products as we have historically. We will continue to support customers of Other Products through the ~~current level~~end of ~~COVID-19 related challenges~~2023. As we look to fiscal 2023, we expect to achieve approximately 30% ICL sales growth, year over year, to approximately $355 million in ~~China and elsewhere, offset by stronger than expected global demand~~total company net sales which contemplates limited sales from Other Products. We do not expect contribution from Other Products thereafter. We continue to see significant growth potential for our EVO ~~lenses. We continue to monitor the commercial and operational impact~~family of new variants of COVID-19 in our markets, which remains uncertain at this time and may adversely affect our financial results. We are also monitoring inflation globally, which may adversely affect our financial results in the future if it persists.lenses globally.

This Management’s Discussion and Analysis of Financial Condition and Results of Income 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 of Directors. Actual conditions may differ from our assumptions and actual results may differ from our estimates.

Management believes that there have been no significant changes during the ~~six~~nine months ended ~~July~~September 30 1,, 2022 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 December 31, 2021.

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.

	Percentage of Net Sales for Three Months						Percentage of Net Sales for Three Months						Percentage of Net Sales for Three Months						Percentage of Net Sales for Nine Months
	July 1, 2022			July 2, 2021			July 1, 2022			July 2, 2021			September 30, 2022			October 1, 2021			September 30, 2022			October 1, 2021
Net sales		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%
Cost of sales		21.2	%		21.1	%		21.6	%		21.9	%		20.5	%		22.4	%		21.2	%		22.1	%
Gross profit		78.8	%		78.9	%		78.4	%		78.1	%		79.5	%		77.6	%		78.8	%		77.9	%
General and administrative		17.2	%		18.4	%		18.0	%		19.1	%		18.4	%		18.9	%		18.1	%		19.0	%
Selling and marketing		29.9	%		30.2	%		28.8	%		28.4	%		30.4	%		31.1	%		29.3	%		29.3	%
Research and development		10.7	%		13.2	%		11.4	%		14.6	%		12.7	%		14.2	%		12.0	%		14.5	%
Total selling, general and administrative		57.8	%		61.8	%		58.2	%		62.1	%		61.5	%		64.2	%		59.4	%		62.8	%
Operating income		21.0	%		17.1	%		20.2	%		16.0	%		18.0	%		13.4	%		19.4	%		15.1	%
Total other income (expense), net		(1.9	)%		0.1	%		(1.5	)%		(1.0	)%
Total other expense, net														(1.5	)%		(0.8	)%		(1.5	)%		(0.9	)%
Income before income taxes		19.1	%		17.2	%		18.7	%		15.0	%		16.5	%		12.6	%		17.9	%		14.2	%
Provision for income taxes		3.0	%		3.5	%		3.0	%		3.0	%		3.0	%		2.3	%		3.0	%		2.8	%
Net income		16.1	%		13.7	%		15.7	%		12.0	%		13.5	%		10.3	%		14.9	%		11.4	%

	Three Months Ended				Percentage Change			Six Months Ended				Percentage Change			Three Months Ended				Percentage Change			Nine Months Ended				Percentage Change
	July 1, 2022		July 2, 2021		2022 vs. 2021			July 1, 2022		July 2, 2021		2022 vs. 2021			September 30, 2022		October 1, 2021		2022 vs. 2021			September 30, 2022		October 1, 2021		2022 vs. 2021
ICLs	$	77,922	$	59,235		31.5	%	$	136,597	$	105,736		29.2	%	$	71,953	$	54,153		32.9	%	$	208,550	$	159,889		30.4	%
Other product sales:
Cataract IOLs		2,547		3,074		(17.1	)%		5,449		6,799		(19.9	)%		2,191		2,525		(13.2	)%		7,640		9,324		(18.1	)%
Other surgical products		632		58		—*			2,255		584		—*			1,902		1,674		13.6	%		4,157		2,258		84.1	%
Total other product sales		3,179		3,132		1.5	%		7,704		7,383		4.3	%		4,093		4,199		(2.5	)%		11,797		11,582		1.9	%
Net sales	$	81,101	$	62,367		30.0	%	$	144,301	$	113,119		27.6	%	$	76,046	$	58,352		30.3	%	$	220,347	$	171,471		28.5	%

Net sales for the three months ended ~~July 1,~~September 30, 2022 increased 30% from the same period of 2021. The increase in net sales was due to increased ICL sales of ~~$18.7~~$17.8 million. Changes in foreign currency unfavorably impacted net sales by ~~$3.1~~$4.0 million.

Net sales for the ~~six~~nine months ended ~~July 1,~~September 30, 2022 increased ~~28%~~29% from same period of 2021. The increase in net sales was due to increased ICL sales of ~~$30.9~~$48.7 million. Changes in foreign currency unfavorably impacted net sales by ~~$5.0~~$9.0 million.

Total ICL sales for the three months ended ~~July 1,~~September 30, 2022 increased ~~32%~~33% from the same period of 2021, with unit increase of ~~42%~~40%. The APAC region sales increased by ~~37%~~40%, with unit growth up ~~45%~~47%, due to sales growth in ~~India~~Korea up ~~192%~~50%, China up 49%, other APAC regions up ~~65%, China up 39%,~~49% and Japan up ~~16% and Korea up 16%~~12%. The Europe, Middle East, Africa and Latin America region sales decreased 9% with unit decrease of 2%, due to sales decreases in in our direct markets down 12% and distributor markets down 4%. The North America region sales increased 6%66%, with unit growth up 56%, primarily due to sales growth in the U.S. up 75%. In late March 2022, the U.S. started to sell EVO ICLs. Changes in foreign currency unfavorably impacted ICL sales by $3.2 million for the three months ended September 30, 2022, which impacted our Japan and Europe, Middle East and Africa markets. ICL sales represented 94.6% and 92.8% of our total sales for the three months ended September 30, 2022 and October 1, 2021, respectively.

Total ICL sales for the nine months ended September 30, 2022 increased 30% from the same period of 2021, with unit increase of ~~30%~~38%. The APAC region sales increased by 38%, with unit growth up 43%, due to sales growth in ~~in distributor markets~~other APAC regions up ~~24%~~59%, ~~partially offset by~~India up 44%,China up 44%, Korea up 25% and Japan up 16%. The Europe, Middle East, Africa and Latin America region sales decreased 1% with unit growth up 12%, due to sales decreases in our direct markets down 7%8%, offset by sales growth in distributor markets up 8%. The North America region sales increased ~~42%~~43%, with unit ~~increase of 32%~~growth up 35%, primarily due to sales growth in the U.S. up 47%. In late March 2022, the U.S. started to sell EVO ICLs. Changes in foreign currency unfavorably impacted ICL sales by ~~$2.6~~$7.2 million for the ~~three~~nine months ended ~~July 1,~~September 30, 2022, which impacted our Japan and Europe, Middle East ~~Africa~~ and ~~Japan~~Africa markets. ICL sales represented ~~96.1%~~94.6% and ~~95.0%~~93.2% of our total sales for the ~~three~~nine months ended ~~July 1,~~September 30, 2022 and ~~July 2, 2021, respectively.~~

~~Total ICL sales for the six months ended July~~October 1, 2022 increased 29% from the same period of 2021, with unit increase of 36%. The APAC region sales increased by 36%, with unit growth up 40%, due to sales growth in India up 92%, other APAC regions up 58%, China up 41%, Japan up 19% and Korea up 15%. The Europe, Middle East, Africa and Latin America region sales increased 2% with unit increase of 19%, due to sales due to sales growth in distributor markets up 15%, offset by sales decreases in our direct markets down 6%. The North America region sales increased 32%, with unit increase of 25%, primarily to sales growth in the U.S. up 35%. In late March 2022, the U.S. started to sell EVO ICLs. Changes in foreign currency unfavorably impacted ICL sales by $4.0 million for the six months ended July 1, 2022, which impacted our Europe, Middle East, Africa and Japan markets. ICL sales represented 94.7% and 93.5% of our total sales for the three months ended July 1, 2022 and July 2, 2021, respectively.

Other product sales, including cataract IOLs for the three ~~and six~~ months ended ~~July 1,~~September 30, 2022, ~~increased 1% and 4%, respectively~~decreased 3% from the same period of 2021, due to decreased sales of cataract IOLs, partially offset by other surgical products. Other product sales for the nine months ended September 30, 2022, increased ~~preloaded injector part sales,~~2% due to other surgical products, offset by decreased sales of cataract IOLs. Included in other product sales are sales of preloaded injector parts. In the first half of 2021, we experienced product yield issues requiring rework related to preloaded injector parts manufactured on our behalf by a third-party vendor then sold by us to a third-party manufacturer for product they sell to their customers. Changes in foreign currency unfavorably impacted other product sales by ~~$0.6~~$0.8 million and ~~$1.1~~$1.8 million for the three and ~~six~~nine months ~~July 1,~~September 30, 2022, respectively. Other product sales represented ~~3.9%~~5.4% and ~~5.0%~~7.2% of our total sales for the three months ended ~~July 1,~~September 30, 2022 and ~~July 2,~~October 1, 2021, respectively, and represented ~~5.3%~~5.4% and ~~6.5%~~6.8% of our total sales for the ~~six~~nine months ended ~~July 1,~~September 30, 2022 and ~~July 2,~~October 1, 2021, respectively.

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

Gross profit for the three months ended ~~July 1,~~September 30, 2022 increased 29.8% from the same period of 2021. Gross profit margin decreased slightly to 78.8% of revenue for the three months ended July 1, 2022 compared to 78.9% of revenue for the three months ended July 2, 2021, due to inventory reserves recognized as a result of discontinuance of our older generation Visian ICL in the U.S. and increased period costs associated with manufacturing projects, offset by increased product and geographic sales mix.

~~Gross profit for the six months ended July 1, 2022 increased 28.1%~~33.5% from the same period of 2021. Gross profit margin increased to ~~78.4%~~79.5% of revenue for the ~~six~~three months ended ~~July 1,~~September 30, 2022 compared to ~~78.1%~~77.6% of revenue for the ~~six~~three months ended ~~July 2,~~October 1, 2021, due mainly to product and geographic sales mix, partially offset by increased period costs associated with manufacturing projects.

Gross profit for the nine months ended September 30, 2022 increased 29.9% from the same period of 2021. Gross profit margin increased to 78.8% of revenue for the nine months ended September 30, 2022 compared to 77.9% of revenue for the nine months ended October 1, 2021, due mainly to product and geographic sales mix, partially offset by inventory reserves recognized as a result of discontinuance of our older generation Visian ICL in the U.S. and increased period costs associated with manufacturing projects.

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

	Three Months Ended						Percentage Change			Six Months Ended						Percentage Change			Three Months Ended						Percentage Change			Nine Months Ended						Percentage Change
	July 1, 2022			July 2, 2021			2022 vs. 2021			July 1, 2022			July 2, 2021			2022 vs. 2021			September 30, 2022			October 1, 2021			2022 vs. 2021			September 30, 2022			October 1, 2021			2022 vs. 2021
General and administrative expense	$	13,983		$	11,441			22.2	%	$	25,923		$	21,653			19.7	%	$	14,011		$	11,018			27.2	%	$	39,934		$	32,671			22.2	%
Percentage of sales		17.2	%		18.4	%					18.0	%		19.1	%					18.4	%		18.9	%					18.1	%		19.0	%

General and administrative expenses for the three months ended ~~July 1,~~September 30, 2022 increased ~~22.2%~~27.2% from the same period of 2021 due to increased stock-based compensation expenses, facility costs and ~~facility costs.~~outside services. General and administrative expenses for the ~~six~~nine months ended ~~July 1,~~September 30, 2022 increased ~~19.7%~~22.2% from the same period of 2021 due to increased facility costs, stock-based compensation expenses and outside services.

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

	Three Months Ended						Percentage Change			Six Months Ended						Percentage Change			Three Months Ended						Percentage Change			Nine Months Ended						Percentage Change
	July 1, 2022			July 2, 2021			2022 vs. 2021			July 1, 2022			July 2, 2021			2022 vs. 2021			September 30, 2022			October 1, 2021			2022 vs. 2021			September 30, 2022			October 1, 2021			2022 vs. 2021
Selling and marketing expense	$	24,233		$	18,853			28.5	%	$	41,503		$	32,054			29.5	%	$	23,130		$	18,175			27.3	%	$	64,633		$	50,229			28.7	%
Percentage of sales		29.9	%		30.2	%					28.8	%		28.4	%					30.4	%		31.1	%					29.3	%		29.3	%

Selling and marketing expenses for the three months ended ~~July 1,~~September 30, 2022 increased ~~28.5%~~27.3% from the same period of 2021 due to increased trade shows and sales meetings, advertising and promotional activities, travel expenses and stock-based compensation expenses. Selling and marketing expenses for the nine months ended September 30, 2022 increased 28.7% from the same period of 2021 due to increased advertising and promotional activities, ~~and~~ trade shows ~~partially offset by decreased salary-related~~ and ~~payroll tax~~sales meetings, travel expenses and stock-based compensation expenses. ~~Selling and marketing expenses for the six months ended July 1, 2022 increased 29.5% from the same period of 2021 due to increased advertising and promotional activities and trade shows.~~

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

	Three Months Ended						Percentage Change			Six Months Ended						Percentage Change			Three Months Ended						Percentage Change			Nine Months Ended						Percentage Change
	July 1, 2022			July 2, 2021			2022 vs. 2021			July 1, 2022			July 2, 2021			2022 vs. 2021			September 30, 2022			October 1, 2021			2022 vs. 2021			September 30, 2022			October 1, 2021			2022 vs. 2021
Research and development expense	$	8,636		$	8,260			4.6	%	$	16,577		$	16,519			0.4	%	$	9,616		$	8,271			16.3	%	$	26,193		$	24,790			5.7	%
Percentage of sales		10.7	%		13.2	%					11.4	%		14.6	%					12.7	%		14.2	%					12.0	%		14.5	%

Research and development expenses for the three ~~and six~~ months ended ~~July 1,~~September 30, 2022 increased ~~4.6% and 0.4%, respectively,~~16.3% from the same period of 2021 due mainly to increased insalary-related and payroll tax expenses. Research and development expenses for the nine months ended September 30, 2022 increased 5.7% from the same period of 2021 due mainly to increased salary-related and payroll tax expenses and stock-based compensation expenses, partially offset by decreased clinical expenses associated with our clinical trials.

	Three Months Ended						Percentage Change		Six Months Ended						Percentage Change			Three Months Ended						Percentage Change		Nine Months Ended						Percentage Change
	July 1, 2022			July 2, 2021			2022 vs. 2021		July 1, 2022			July 2, 2021			2022 vs. 2021			September 30, 2022			October 1, 2021			2022 vs. 2021		September 30, 2022			October 1, 2021			2022 vs. 2021
Other income (expense), net	$	(1,551	)	$	66			—*	$	(2,137	)	$	(1,165	)		(83.4	)%
Other expense, net																		$	(1,128	)	$	(461	)		—*	$	(3,265	)	$	(1,626	)		—*
Percentage of sales		(1.9	)%		0.1	%				(1.5	)%		(1.0	)%					(1.5	)%		(0.8	)%				(1.5	)%		(0.9	)%

The change in other expense, net for the three and ~~six~~nine months ended ~~July 1,~~September 30, 2022 and ~~July 2,~~October 1, 2021, respectively, was due primarily to foreign exchange losses (primarily euro)., and for the three and nine months ended September 30, 2022, partially offset by increased interest income mainly due to our investments held available for sale.

The effective tax rates for the three months ended ~~July 1,~~September 30, 2022 and ~~July 2,~~October 1, 2021 was ~~15.7%~~18.4% and ~~20.0%~~18.4%, respectively, and was ~~16.1%~~16.9% and ~~20.0%~~19.5%, for the ~~six~~nine months ended ~~July 1,~~September 30, 2022 and ~~July 2,~~October 1, 2021, respectively. Our effective tax rates differ from the U.S. federal statutory rate of 21% for the three and ~~six~~nine months ended ~~July 1,~~September 30, 2022 and ~~July 2,~~October 1, 2021, respectively, primarily due to the income taxes generated in foreign jurisdictions. The differences in the effective tax rate for the three and ~~six~~nine months ended ~~July 1,~~September 30, 2022 ~~was lower than~~compared to the same period in 2021 was primarily due to jurisdictions in which the income is earned.

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.

We believe that current cash and cash equivalents, investments available for sale and future cash flow from operating activities 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 included in this quarterly report. Our financial condition at ~~July 1,~~September 30, 2022 and December 31, 2021 included the following (in ~~millions)~~thousands):

	July 1, 2022		December 31, 2021		2022 vs. 2021			September 30, 2022		December 31, 2021		2022 vs. 2021
Cash and cash equivalents	$	202.5	$	199.7	$	2.8		$	129,242	$	199,706	$	(70,464	)
Investments available for sale									95,451		—		95,451
Total								$	224,693	$	199,706	$	24,987

Current assets	$	296.5	$	271.4	$	25.1		$	296,910	$	271,411	$	25,499
Current liabilities		46.5		48.8		(2.3	)		45,320		48,802		(3,482	)
Working capital	$	250.0	$	222.6	$	27.4		$	251,590	$	222,609	$	28,981

~~We invest~~Cash and cash equivalents include cash and balances in deposits and money market accounts held at banks and financial institutions. Our investment policy primary objective is capital preservation while maximizing our return on investment. Investments available for sale may include U.S. government and corporate debt securities, commercial paper, certain certificates deposit and related security types, that are rated by two nationally recognized statistical rating organizations with minimum investment grade ratings of AAA to A-/A-1+ to A-2, or the ~~net proceeds~~equivalent. There are also limits to the amount of credit exposure in ~~short-term interest-bearing obligations, investment-grade instruments, certificates of deposit or direct or guaranteed obligations of the U.S. government.~~any given security type. We do not have any off-balance sheet arrangements.

A summary of cash flows for the ~~six~~nine months ended ~~July 1,~~September 30, 2022 and ~~July 2,~~October 1, 2021 was as follows ~~(dollars in~~(in thousands):

	Six Months Ended						Nine Months Ended
	July 1, 2022			July 2, 2021			September 30, 2022			October 1, 2021
Cash flows from:
Operating activities	$	8,636		$	13,148		$	32,745		$	35,464
Investing activities		(7,810	)		(5,683	)		(109,659	)		(8,956	)
Financing activities		3,101			13,833			8,095			18,009
Effect of exchange rate changes		(1,143	)		(668	)		(1,645	)		(724	)
Net increase in cash and cash equivalents		2,784			20,630
Net increase (decrease) in cash and cash equivalents								(70,464	)		43,793
Cash and cash equivalents, at beginning of year		199,706			152,453			199,706			152,453
Cash and cash equivalents, at end of year	$	202,490		$	173,083		$	129,242		$	196,246

For the ~~six~~nine months ended ~~July 1,~~September 30, 2022, net cash used by operating activities consisted of ~~$22.6~~$32.9 million in net income, ~~$14.0~~$20.6 million in non-cash items, offset by ~~$28.0~~$20.8 million in working-capital changes.

In the three months ended September 30, 2022, we decided to invest our cash in slightly higher yielding securities. For the nine months ended September 30, 2022, net cash used in investment activities was $109.7 million which consisted of $95.6 million in purchases of investments available for sale and $14.1 million in purchases of property, plant and equipment. The increase in investments of property, plant and equipment of $5.1 million for the ~~six~~nine months ended ~~July 1,~~September 30, 2022 relative to the same period of 2021, was due to increased investments in manufacturing facilities.

Net cash provided by financing activities for the ~~six~~nine months ended ~~July 1,~~September 30, 2022 consisted of ~~$3.1~~$8.2 million of proceeds from the exercise of stock options. For the ~~six~~nine months ended ~~July 2,~~October 1, 2021, net cash provided by financing activities consisted of ~~$14.1~~$18.3 million of proceeds from the exercise of stock options, partially offset by ~~$0.2~~$0.3 million repayment of finance lease obligations.

The Company’s Chief Executive Officer entered into an employment agreement with the Company, effective March 1, 2015. She and certain officers have as provisions of their agreements certain rights, including continuance of cash compensation and benefits, upon a “change in control,” which may include an acquisition of substantially all of its assets, or termination “without cause or for good reason” as defined in the employment agreements.

During the ~~six~~nine months ended ~~July 1,~~September 30, 2022, 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 December 31, 2021.

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 CEO and CFO, of the effectiveness of the design and operation of the disclosure controls and procedures of the Company. Based on that evaluation, our CEO 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 CEO 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.

There were no changes in our internal control over financial reporting during the quarter ended ~~July 1,~~September 30, 2022 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

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 December 31, 2021. Such risks and uncertainties could materially adversely affect our business, financial condition or operating results.

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.

Delaware	95-3797439
(State or Other Jurisdiction of Incorporation or Organization)	(I.R.S. Employer Identification No.)
25651 Atlantic Ocean Drive Lake Forest, California	92630
(Address of Principal Executive Offices)	(Zip Code)


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

		PAGE NUMBER

PART I – FINANCIAL INFORMATION		1

ITEM 1	FINANCIAL STATEMENTS	1

ITEM 2.	MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS	1618

ITEM 3.	QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK	2124

ITEM 4.	CONTROLS AND PROCEDURES	2124

PART II – OTHER INFORMATION		2124

ITEM 1.	LEGAL PROCEEDINGS	2124

ITEM 1A.	RISK FACTORS	2225

ITEM 4.	MINE SAFETY DISCLOSURES	2225

ITEM 5.	OTHER INFORMATION	2225

ITEM 6.	EXHIBITS	2225

	September 30, 2022
	Amortized Cost		Unrealized Gains		Unrealized Losses			Estimated Fair Value
Level 2 Fair Value Measurements:
Commercial paper	$	35,093	$	1	$	(75	)	$	35,019
Certificates of deposit		14,404		1		(66	)		14,339
U.S. Treasury and agency securities		4,188		—		(1	)		4,187
Corporate debt securities		41,898		5		(297	)		41,606
Accrued interest receivable		300		—		—			300
Total investments AFS	$	95,883	$	7	$	(439	)	$	95,451

	As of September 30, 2022
	Within one year		After one year through five years		Total
Commercial paper	$	35,019	$	—	$	35,019
Certificates of deposit		14,339		—		14,339
U.S. Treasury and agency securities		4,187		—		4,187
Corporate debt securities		28,246		13,360		41,606
Accrued interest receivable		300		—		300
Total investments AFS	$	82,091	$	13,360	$	95,451

Large accelerated filer	☑	Accelerated filer	☐
Non-accelerated filer	☐	Smaller reporting company	☐
Emerging growth company	☐

As of July 1, 2022 12 Months Ended	Operating Leases			Finance Leases
June 2023	$	5,340		$	181
June 2024		5,392			179
June 2025		4,624			128
June 2026		3,700			—
June 2027		3,655			—
Thereafter		12,613			—
Total future minimum lease payments	$	35,324		$	488
Less amounts representing interest		(4,736	)		(27	)
Present value of future minimum lease payments	$	30,588		$	461
Current lease obligations		(3,708	)		(166	)
Long-term lease obligations	$	26,880		$	295

3.1	Amended and Restated Certificate of Incorporation.(1)

3.2	Amended and Restated Bylaws.(2)

4.1	Form of Certificate for Common Stock, par value $0.01 per share.(3)

†4.2	Amended and Restated Omnibus Equity Incentive Plan.(4)

31.1	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.*

31.2	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.*

32.1	Certification Pursuant to 18 U.S.C. Section 1350, Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. **

101	Financial statements from the quarterly report on Form 10-Q of STAAR Surgical Company for the quarter ended ~~July 1,~~September 30, 2022 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 ~~July 1,~~September 30, 2022, has been formatted in Inline XBRL with applicable taxonomy extension information contained in Exhibit 101.

		STAAR SURGICAL COMPANY

Dated:	~~August 10,~~November 2, 2022	By:	/s/ PATRICK F. WILLIAMS
			Patrick F. Williams
			Chief Financial Officer
			(on behalf of the Registrant and as its principal financial officer)