Financial Analysis

Note 11. Commitments and Contingencies Secured Letter of Credit The Company has a letter of credit that is related to its Aliso Facility. The letter of credit is secured with an amount of cash held in a restricted account of approximately $ 3.1 million and $ 3.8 million as of June 30, 2026 and December 31, 2025 , respectively. Beginning in May 2022, and on each twelve-month anniversary thereafter, the letter of credit will be reduced by 20 % until the letter of credit amount has been reduced to $ 2.0 million. Executive Deferred Compensation Plan Pursuant to the Companys Deferred Compensation Plan, eligible senior level employees are permitted to make elective deferrals of compensation to which he or she will become entitled in the future. The Company has also established a rabbi trust that serves as an investment to shadow the Deferred Compensation Plan liability. The investments of the rabbi trust consist of COLIs. The fair value of the Deferred Compensation Plan liability, included in other liabilities on the condensed consolidated balance sheets, was approximately $ 22.3 million and $ 18.5 million as of June 30, 2026 and December 31, 2025 , respectively, and the cash surrender value of the COLIs, included in deposits and other assets on the condensed consolidated balance sheets, which reflects the underlying assets at fair value, was approximately $ 23.4 million and $ 19.5 million as of June 30, 2026 and December 31, 2025 , respectively. …

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The Companys revenues disaggregated by product category and geography for the three and six months ended June 30, 2026 and June 30, 2025 were as follows (in thousands): Three Months Ended June 30, United States International Total 2026 2025 2026 2025 2026 2025 Glaucoma $ 118,549 $ 72,282 $ 36,631 $ 31,251 $ 155,180 $ 103,533 Corneal Health 28,190 18,237 2,240 2,350 30,430 20,587 Total $ 146,739 $ 90,519 $ 38,871 $ 33,601 $ 185,610 $ 124,120 Six Months Ended June 30, United States International Total 2026 2025 2026 2025 2026 2025 Glaucoma $ 212,002 $ 131,410 $ 72,438 $ 60,260 $ 284,440 $ 191,670 Corneal Health 47,081 34,179 4,660 4,935 51,741 39,114 Total $ 259,083 $ 165,589 $ 77,098 $ 65,195 $ 336,181 $ 230,784 …

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Note 9. Stock-Based Compensation The following table summarizes the allocation of stock-based compensation related to stock options and restricted stock units (RSUs) in the accompanying condensed consolidated statements of operations (in thousands): Three Months Ended Six Months Ended June 30, June 30, 2026 2025 2026 2025 Cost of sales $ 1,560 $ 1,245 $ 2,646 $ 2,217 Selling, general and administrative 21,951 12,549 36,202 20,983 Research and development 5,354 4,225 9,161 7,805 Total $ 28,865 $ 18,019 $ 48,009 $ 31,005 At June 30, 2026, the total unamortized stock-based compensation expense was approximately $ 122.1 million, of which $ 16.7 million and $ 105.3 million was attributable to stock options and RSUs, respectively. The Company currently issues its annual stock options and RSU grants to senior executives during the first quarter and all other eligible employees during the second quarter, of each year. Of the $ 16.7 million related to stock options, $ 14.8 mi llion is attributable to time-based stock options and will be recognized over the time-based stock options remaining vesting terms of approximately 4.0 years (2 .8 years on a weighted average basis). The remaining $ 1.9 millio n is attributable to performance-based options and will be recognized over the performance-based stock options remaining vesting terms of less than one year ( 0.9 years o n a weighted average basis). Of the $ 105.3 million related to RS Us, $ 97.9 millio n is attributable to time-based RSUs …

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Note 4. Fair Value Measurements Fair value is an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or liability. The carrying amounts of cash equivalents, accounts receivable, accounts payable, and accrued liabilities are considered to be representative of their respective fair values because of the short-term nature of those instruments. The valuation of assets and liabilities is subject to fair value measurements using a three-tiered approach and fair value measurements are classified and disclosed by the Company in one of the following three categories: Level 1: Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities; Level 2: Quoted prices for similar assets and liabilities in active markets, quoted prices in markets that are not active, or inputs which are observable, either directly or indirectly, for substantially the full term of the asset or liability; and Level 3: Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (i.e., supported by little or no market activity). The following tables present information about the Companys financial assets and liabilities …

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Note 6. Intangible Assets and Goodwill Intangible Assets The Company evaluated its indefinite-lived intangible assets for impairment and concluded there were no indicators of impairment as of June 30, 2026. Goodwill The assessment of goodwill by reporting unit is performed annually, in the fourth quarter, or more frequently if events or circumstances indicate the carrying value may no longer be recoverable and that an impairment loss may have occurred. The Company considered the current and expected future economic and market conditions and its impact on the Companys reporting unit. Based on interim assessments, the Company did not identify any triggering events which would indicate an impairment of goodwill as of June 30, 2026. The following table presents the composition of the Companys intangible assets and goodwill (in thousands): Weighted- As of June 30, 2026 As of December 31, 2025 Average Gross Gross Amortization Carrying Accumulated Net Carrying Accumulated Net Period (in years) Amount Amortization Amount Amount Amortization Amount Photrexa developed technology 4.7 $ 7,801 $ ( 6,996 ) $ 805 $ 7,801 $ ( 3,322 ) $ 4,479 Epioxa developed technology 6.0 111,700 ( 12,410 ) 99,290 111,700 ( 3,103 ) 108,597 License 4.0 5,190 ( 1,098 ) 4,092 5,190 ( 435 ) 4,755 In place leases 3.8 666 ( 477 ) 189 666 ( 345 ) 321 Mobius developed technology and customer relationships 9.0 17,800 ( 2,225 ) 15,575 17,800 ( 1,236 ) 16,564 Intangible assets subject to amortization 143,157 ( 23,206 …

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Note 10 . Income Taxes For the three and six months ended June 30, 2026 , the Company recorded a provision for income taxes of $ 0.7 million and $ 1.1 million, respectively, with an effective tax rate of ( 3.70 )% and ( 3.08 )%, respectively. For the three and six months ended June 30, 2025 , the Company recorded a provision for income taxes of $ 0.2 million and $ 0.6 million, respectively. For each of the three and six months ended June 30, 2026 and June 30, 2025, the provision for income taxes was primarily comprised of state and foreign income tax expense, net of release of uncertain tax positions for which the statute of limitations has expired. On July 4, 2025, the U.S. government enacted the One Big Beautiful Bill Act (OBBBA). Key provisions of the OBBBA include the extension and modification of certain provisions of the Tax Cuts and Jobs Act of 2017, changes to bonus depreciation, adjustments to business interest expense limitations, and modifications to the treatment of research and development expenditures. The OBBBA has multiple effective dates, with certain changes effective in 2025 and others in 2026. The Company has reflected the effect of the OBBBA within the provision for income taxes and the deferred tax balances as of June 30, 2026 . The OBBBA did not materially impact the Company's effective tax rate for the three and six months ended June 30, 2026.

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Recently Issued Accounting Pronouncements Not Yet Adopted In December 2025, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2025-11, Interim Reporting (Topic 270): Narrow-Scope Improvements (ASU 2025-11), which clarifies interim disclosure requirements by improving the navigability of the required interim disclosures and clarifying when that guidance is applicable. The standard is intended to help entities determine whether disclosures not specified in Topic 270 should be provided in interim reporting periods. ASU 2025-11 is effective for interim reporting periods within annual reporting periods beginning after December 15, 2027, with early adoption permitted. The Company is currently evaluating the impact of ASU 2025-11 on its condensed consolidated financial statements and related disclosures. In December 2025, the FASB issued ASU No. 2025-12, Codification Improvements to address suggestions received from stakeholders on the Accounting Standards Codification (the Codification) and to make other incremental improvements to U.S. GAAP. The update represents changes to the Codification that clarify, correct errors in, or make other improvements to a variety of topics that are intended to make it easier to understand and apply. ASU No. 2025-12 is effective for interim reporting periods within annual reporting periods beginning after December 15, 2026, with early adoption permitted. The Company is currently evaluating the impact of adoptin …

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Note 7. Revenue from Contracts with Customers The Companys net sales are generated primarily from sales of iDose TR , its iStent family of products, Epioxa , Photrexa and associated drug formulations, and the proprietary bioactivation systems. The Companys customers are primarily comprised of ambulatory surgery centers, hospitals and physician private practices, with third party distributors being used in certain international locations where the Company currently does not have a direct commercial presence. The Company concluded that one performance obligation exists for the majority of its contracts with customers, which is to deliver products in accordance with the Companys normal delivery times. Revenue is recognized when this performance obligation is satisfied, which is the point in time when the Company considers control of a product to have transferred to the customer. Revenue recognized reflects the consideration to which the Company expects to be entitled in exchange for those products or services. Revenue is recognized at an amount that reflects the consideration the Company expects to be entitled to in exchange for goods or services, and substantially all of the Companys net sales for the three and six months ended June 30, 2026 and June 30, 2025 are considered revenue from contracts with customers. Disaggregation of Revenue The Companys revenues disaggregated by product category and geography for the three and six months ended June 30, 2026 and June 30, 2025 were …

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Note 12. Business Segment Information The Company has one business activity and operates as one operating segment: the development and commercialization of ophthalmic therapies designed to treat glaucoma, corneal disorders and retinal diseases. The Company determined its operating segment on the same basis that it uses to evaluate its performance internally. The Companys revenues disaggregated by revenue and product category are included in Note 7, Revenue from Contracts with Customers . The Companys chief operating decision-maker, its Chief Executive Officer , reviews its consolidated operating results for the purpose of allocating resources and evaluating financial performance. Three months ended June 30, Six months ended June 30, 2026 2025 2026 2025 (in thousands) (in thousands) Net sales $ 185,610 $ 124,120 $ 336,181 $ 230,784 Less: Cost of sales 34,016 26,896 67,355 51,212 Sales, marketing & distribution 56,609 40,025 102,898 74,468 Research & development 32,894 25,802 61,865 48,724 Clinical 18,407 10,736 33,581 20,167 General & administrative 59,451 43,350 106,105 79,580 Acquired in-process research and development 1,500 - 1,500 - Significant segment expenses 202,877 146,809 373,304 274,151 Interest income 2,279 2,574 4,710 5,650 Interest expense ( 1,459 ) ( 1,151 ) ( 2,584 ) ( 2,314 ) Other (expense) income, net ( 1,274 ) 1,857 ( 2,023 ) 2,802 Income tax provision 656 248 1,140 574 Net loss $ ( 18,377 ) $ ( 19,657 ) $ ( 38,160 ) $ ( 37,803 ) Property and eq …

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Note 2. Summary of Significant Accounting Policies Use of Estimates The preparation of the condensed consolidated financial statements in conformity with GAAP requires management to make estimates, judgments and assumptions that affect the reported amounts in the condensed consolidated financial statements and accompanying notes. Actual results could differ materially from those estimates and assumptions used in the preparation of the accompanying condensed consolidated financial statements under different assumptions and conditions. Cash, Cash Equivalents and Restricted Cash The following table provides a reconciliation of cash and cash equivalents and restricted cash reported within the condensed consolidated balance sheets that equate to the amount reported in the condensed consolidated statements of cash flows as of the beginning and end of the six months ended June 30, 2026 (in thousands): June 30, December 31, 2026 2025 Cash and cash equivalents $ 114,485 $ 90,813 Restricted cash 3,115 3,834 Cash, cash equivalents and restricted cash $ 117,600 $ 94,647 The Companys cash and cash equivalents include cash in readily available checking and money market accounts, as well as certificates of deposit. The Company maintains balances of cash and cash equivalents at one or more financial institutions that are in excess of federally insured limits. Recently Issued Accounting Pronouncements Not Yet Adopted In December 2025, the Financial Accounting Standards Board (FASB) issued Acc …

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