ARTIVION, INC.
For the period ended Jun 30, 2025. Filed Aug 8, 2025.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2025 · Filed Aug 8, 2025
AORT$20.21-20.2%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-03-31; filed 2025-05-06.
0000784199-25-000074
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-06-30; filed 2025-08-08.
0001628280-25-039166
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 100 previous paragraphs and 110 current paragraphs.
60 unchanged; 35 reworded; 11 added; 5 removed; 0 previous and 4 current paragraphs rearranged.
Tables are not compared: 8 previous and 10 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (11)
Current report
Revenues from the sales of aortic stent grafts increased 24% for the three months ended June 30, 2025, as compared to the three months ended June 30, 2024. This increase was primarily due to an increase in the volume of units sold.
Current report
Revenues from the sales of aortic stent graft increased 19% for the six months ended June 30, 2025, as compared to the six months ended June 30, 2024. This increase was primarily due to an increase in the volume of units sold.
Current report
Revenues from the sales of On-X products increased 24% for the three months ended June 30, 2025, as compared to the three months ended June 30, 2024. This increase was primarily due to an increase in the volume of units sold as well as an increase in average sales price.
Current report
Revenues from tissue processing increased 3% for the three months ended June 30, 2025, as compared to the three months ended June 30, 2024. The increase was primarily due to an increase in the volume of higher priced tissues shipped primarily due to the release of a backlog of tissues that resulted from the 2024 cybersecurity incident. The tissue backlog started to release during the second quarter of 2025 and is expected to improve throughout the remainder of 2025.
Current report
Cost of Preservation Services
Current report
Gross margin increased 15% and 8% for the three and six months ended June 30, 2025, respectively, as compared to the three and six months ended June 30, 2024.
Current report
Losses on Inducement/Extinguishment of Debt
Current report
During the three and six months ended June 30, 2025 we recorded a loss on inducement of convertible debt of $2.7 million in connection with the settlement of our Convertible Senior Notes. See Part I, Item 1, Note 7 of the “Notes to Condensed Consolidated Financial Statements” for further discussion of our Convertible Senior Notes.
Current report
On July 4, 2025, the OBBBA was signed into law. This legislation includes changes to U.S. federal tax law, which may be subject to further clarification and the issuance of interpretive guidance. We are assessing the legislation and its effect on our consolidated financial statements.
Current report
In May 2025 we entered into separate, privately negotiated exchange agreements (“Exchange Agreements”) with the Holders ofthe Convertible Senior Notes. The transactions contemplated by the Exchange Agreements closed on May 28, 2025. Under the terms of the Exchange Agreements, the Holders exchanged an aggregate principal amount of approximately $99.5 million of the Convertible Senior Notes held by the Holders in exchange for an aggregate of 4,334,347 shares of our common stock. In addition, pursuant to the Exchange Agreements, we made a cash payment of approximately $1.7 million to the Holders in respect of accrued and unpaid interest on the exchanged Convertible Senior Notes.
Current report
Approximately $0.5 million in aggregate principal amount of the Convertible Senior Notes remained outstanding as of June 30, 2025. The remaining$0.5 million in aggregate principal amount of the Convertible Senior Notes were settled on July 1, 2025 resulting in the issuance of 19,605 shares of our common stock.
Removed paragraphs (5)
Previous report
Revenues from the sales of aortic stent grafts increased 14% for the three months ended March 31, 2025, as compared to the three months ended March 31, 2024. This increase was primarily due to an increase in the volume of units sold, partially offset by the effect of foreign exchange rates.
Previous report
Gross margin increased 1% for the three months ended March 31, 2025, respectively, as compared to the three months ended March 31, 2024.
Previous report
Loss on Extinguishment of Debt
Previous report
We became eligible to redeem the Convertible Senior Notes beginning on July 5, 2023, following the expiration of their non-redemption period. We are able to redeem the Convertible Senior Notes in whole or in part, at our option, if the last reported sale price per share of our common stock has been at least 130% of the conversion price then in effect for at least 20 trading days (whether or not consecutive) during any 30 consecutive trading day period (including the last trading day of such period) ending on, and including, the trading day immediately preceding the date on which we provide notice of redemption.
Previous report
On December 23, 2024 in accordance with an Indenture (the “Indenture”) dated June 23, 2020, between Artivion, Inc. (formerly CryoLife, Inc.) and U.S. Bank Trust Company, National Association, as Trustee, relating to our Convertible Senior Notes, we gave notice to the Trustee, the Conversion Agent, and the Holders (each as defined in the Indenture) that we elected to change the “Default Settlement Method” (as defined in the Indenture) for conversions of the Convertible Senior Notes to “Physical Settlement” (as defined in the Indenture). As a result, all conversions after the date of the notice will be settled by delivery of shares of our common stock using Physical Settlement in accordance with the Indenture.
Reworded paragraphs (35)
Previous wording
We reported quarterly revenues of $99.0 million for the three months ended March 31, 2025, a 2% increase from the three months ended March 31, 2024. The increase in revenues for the three months ended March 31, 2025 was due to an increase in revenues from aortic stent grafts, On-X products, surgical sealants, and other products, partially offset by a decrease in revenues from preservation services. Constant currency revenues, as defined below, increased 4% for the three months ended March 31, 2025, as compared to the three months ended March 31, 2024.
Current wording
We reported quarterly revenues of $113.0 million for the three months ended June 30, 2025, a 15% increase from the three months ended June 30, 2024. The increase in revenues for the three months ended June 30, 2025 was due to an increase in revenues from all products and preservation services. Constant currency revenues, as defined below, increased 14% for the three months ended June 30, 2025, as compared to the three months ended June 30, 2024.
Previous wording
See the “Results of Operations” section below for additional analysis of the three months ended March 31, 2025.
Current wording
See the “Results of Operations” section below for additional analysis of the three and six months ended June 30, 2025.
Previous wording
Revenues increased 2% for the three months ended March 31, 2025, respectively, as compared to the three months ended March 31, 2024. The increase in revenues for the three months ended March 31, 2025 was due to an increase in revenues from all products, partially offset by a decrease in revenues from preservation services.
Current wording
Revenues increased 15% and 8% for the three and six months ended June 30, 2025, respectively, as compared to the three and six months ended June 30, 2024. The increase in revenues for the three months ended June 30, 2025 was due to an increase in revenues from all products and preservation services. The increase in revenues for the six months ended June 30, 2025 was due to an increase in revenues from all products, partially offset by a decrease in revenues from preservation services.
Previous wording
A detailed discussion of the changes in product revenues and preservation services revenues for the three months ended March 31, 2025 is presented below.
Current wording
A detailed discussion of the changes in product revenues and preservation services revenues for the three and six months ended June 30, 2025 is presented below.
Previous wording
Revenues from products increased 11% for the three months ended March 31, 2025, as compared to the three months ended March 31, 2024. The increase for the three months ended March 31, 2025 was due to an increase in revenues from all products. A discussion of the changes in product revenues for aortic stent grafts, On-X products, surgical sealants, and other product revenues is presented below.
Current wording
Revenues from products increased 19% and 15% for the three and six months ended June 30, 2025, respectively, as compared to the three and six months ended June 30, 2024. The increase for the three and six months ended June 30, 2025 was due to an increase in revenues from all products. A discussion of the changes in product revenues for aortic stent grafts, On-X products, surgical sealants, and other product revenues is presented below.
Previous wording
Sales of certain products through our direct sales force and distributors across Europe and various other countries are denominated in a variety of currencies including Euros, Brazilian Reals, Polish Zlotys, British Pounds, Canadian Dollars, and Swiss Francs with a concentration denominated in Euros. Each currency is subject to exchange rate fluctuations. For the three months ended March 31, 2025, as compared to the three months ended March 31, 2024, the US Dollar strengthenedin comparison to major currencies, resulting in revenue decreases when these foreign currency denominated transactions were translated into US Dollars. Future changes in these exchange rates could have a material, adverse effect on our revenues denominated in these currencies. Additionally, our sales to many distributors around the world are denominated in US Dollars, and although these sales are not directly impacted by currency exchange rates, we believe that some of our distributors may delay or reduce purchases of products in US Dollars depending on the relative price of these goods in their local currencies.
Current wording
Sales of certain products through our direct sales force and distributors across Europe and various other countries are denominated in a variety of currencies including Euros, Brazilian Reals, Polish Zlotys, British Pounds, Canadian Dollars, and Swiss Francs with a concentration denominated in Euros. Each currency is subject to exchange rate fluctuations. For the three months ended June 30, 2025, as compared to the three months ended June 30, 2024, the US Dollar weakened in comparison to major currencies, resulting in revenue increases when these foreign currency denominated transactions were translated into US Dollars. For thesix months ended June 30, 2025, as compared to thesix months ended June 30, 2024, the US Dollar strengthenedin comparison to major currencies, resulting in revenue decreases when these foreign currency denominated transactions were translated into US Dollars. Future changes in these exchange rates could have a material, adverse effect on our revenues denominated in these currencies. Additionally, our sales to many distributors around the world are denominated in US Dollars, and although these sales are not directly impacted by currency exchange rates, we believe that some of our distributors may delay or reduce purchases of products in US Dollars depending on the relative price of these goods in their local currencies.
Previous wording
Constant currency revenues from the sales of aortic stent grafts increased 19% for the three months ended March 31, 2025, respectively, as compared to the three months ended March 31, 2024. Revenues for the three months ended March 31, 2025 increased in all geographies, with the most significant increase in Europe, the Middle East, and Africa (collectively, “EMEA”). The revenue increase in EMEA for the three months ended March 31, 2025 was primarily due to an increase in volume of higher priced products within the aortic stent graft product line in direct (to hospitals) markets.
Current wording
Constant currency revenues from the sales of aortic stent grafts increased 22% and 20% for the three and six months ended June 30, 2025, respectively, as compared to the three and six months ended June 30, 2024. Revenues for the three and six months ended June 30, 2025 increased in all geographies, with the most significant increases in North America and Europe, the Middle East, and Africa (collectively, “EMEA”). The revenue increase in EMEA for the three and six months ended June 30, 2025 was primarily due to an increase in volume of higher priced products within the aortic stent graft product line in direct (to hospitals) markets. The revenue increase in North America for the three and six months ended June 30, 2025 was primarily due to sales of AMDS as a result of humanitarian device exemption (“HDE”) granted by the FDA in December 2024 for use of the AMDS™ Hybrid Prosthesis in acute DeBakey Type I dissections in the presence of malperfusion. The HDE allows for, subject to certain restrictions, commercial distribution of AMDS in the United States (“US”) prior to the approval of a Premarket Approval Application, which we currently anticipate receiving in 2026 allowing for full commercial distribution of AMDS in the US.
Previous wording
Revenues from the sales of On-X products increased 10% for the three months ended March 31, 2025, as compared to the three months ended March 31, 2024. This increase was primarily due to an increase in the volume of units sold in North America and EMEA as well as an increase in average sales price, partially offset by the effect of foreign exchange rates.
Current wording
Revenues from the sales of On-X products increased 17% for the six months ended June 30, 2025, as compared to the six months ended June 30, 2024. This increase was primarily due to an increase in the volume of units sold as well as an increase in average sales price, partially offset by the effect of foreign exchange rates.
Previous wording
Constant currency revenues from the sales of On-X products increased 11% for the three months ended March 31, 2025, respectively, as compared to the three months ended March 31, 2024. Revenues for the three months ended March 31, 2025 increased primarily in North America and EMEA, partially offset by a decrease in Asia Pacific (“APAC”). The increase in revenues in North America for the three months ended March 31, 2025 was impacted by recent gains in the market share. The increase in revenues from EMEA for the three months ended March 31, 2025 was primarily due to an increase in unit sales in indirect markets. The decrease in revenues in APAC for the three months ended March 31, 2025 was primarily due to a decrease in unit sales as a result of customer buying patterns.
Current wording
Constant currency revenues from the sales of On-X products increased 24% and 18% for the three and six months ended June 30, 2025, respectively, as compared to the three and six months ended June 30, 2024. Revenues for the three months ended June 30, 2025 increased in all geographies, with the most significant increase in North America. The increase in revenues in North America for thethree months ended June 30, 2025 was impacted by gains in the market share. Revenues for thesix months ended June 30, 2025 increased primarily in North America and EMEA, partially offset by a decrease in Asia Pacific (“APAC”). The increase in revenues in North America for the six months ended June 30, 2025 was impacted by gains in the market share. The increase in revenues from EMEA for the six months ended June 30, 2025 was primarily due to an increase in unit sales in indirect markets. The decrease in revenues in APAC for the six months ended June 30, 2025 was primarily due to a decrease in unit sales as a result of customer buying patterns.
Previous wording
Domestic revenues from the sales of On-X products accounted for 65% of total On-X revenues for the three months ended March 31, 2025, as compared to 62% for the three months ended March 31, 2024.
Current wording
Domestic revenues from the sales of On-X products accounted for 61% and 63% of total On-X revenues for the three and six months ended June 30, 2025, as compared to 59% and 61% for the three and six months ended June 30, 2024.
Previous wording
Revenues from the sales of surgical sealants increased 7% for the three months ended March 31, 2025, as compared to the three months ended March 31, 2024. This increase was primarily due to an increase in the volume of milliliters sold and, to a lesser extent, an increase in average sales prices, partially offset by the effect of foreign exchange rates.
Current wording
Revenues from the sales of surgical sealants increased 5% for the six months ended June 30, 2025, as compared to the six months ended June 30, 2024. This increase was primarily due to an increase in the volume of milliliters sold and, to a lesser extent, an increase in average sales prices, partially offset by the effect of foreign exchange rates.
Previous wording
Constant currency revenues from the sales of surgical sealants increased 9% for the three months ended March 31, 2025, respectively, as compared to the three months ended March 31, 2024. The increase in revenues for the three months ended March 31, 2025 was due to revenue increases in all geographies, with the most significant increase in LATAM. The increase in revenues in LATAM for the three months ended March 31, 2025 was primarily due to an increase in unit sales in indirect markets.
Current wording
Constant currency revenues from the sales of surgical sealants increased 4% and 6% for the three and six months ended June 30, 2025, respectively, as compared to the three and six months ended June 30, 2024. The increase in revenues for the three months ended June 30, 2025 was primarily due to revenue increases in North America and APAC. The increase in revenues in North America for the three months ended June 30, 2025 was primarily due to an increase in unit sales. The increase in revenues in APAC for the three months ended June 30, 2025 was primarily due to an increase in unit sales. The increase in revenues for the six months ended June 30, 2025 was due to revenue increases in all geographies, with the most significant increase in Latin America (“LATAM”). The increase in revenues in LATAM for the six months ended June 30, 2025 was primarily due to an increase in unit sales in indirect markets.
Previous wording
Domestic revenues from the sales of surgical sealants accounted for 49% of total surgical sealant revenues for the three months ended March 31, 2025, as compared to 51% of total surgical sealant revenues for the three months ended March 31, 2024.
Current wording
Domestic revenues from the sales of surgical sealants accounted for 48% of total surgical sealant revenues for both the three and six months ended June 30, 2025, as compared to 47% and 49% of total surgical sealant revenues for the three and six months ended June 30, 2024.
Previous wording
Other revenues increased 7% for the three months ended March 31, 2025, as compared to the three months ended March 31, 2024. The increase in other revenues for the three months ended March 31, 2025 was primarily due to an increase in PhotoFix product revenues.
Current wording
Other revenues increased 50% and 26% for the three and six months ended June 30, 2025, as compared to the three and six months ended June 30, 2024. The increase in other revenues for the three and six months ended June 30, 2025 was due to an increase in PerClot and PhotoFix product revenues.
Previous wording
Revenues from tissue processing decreased 23% for the three months ended March 31, 2025, as compared to the three months ended March 31, 2024. The decrease was primarily due to a backlog of tissues to be released for shipments as a result of the 2024 cybersecurity incident which is expected to improve throughout the remainder of 2025.
Current wording
Revenues from tissue processing decreased 11% for the six months ended June 30, 2025, as compared to the six months ended June 30, 2024. The decrease was primarily due to a backlog of tissues to be released for shipments as a result of the 2024 cybersecurity incident which started to release during the second quarter.
Previous wording
Cost of products increased 6% for the three months ended March 31, 2025, respectively, as compared to the three months ended March 31, 2024. Cost of products for the three months ended March 31, 2025 and 2024 included costs related to aortic stent grafts, On-X products, surgical sealants, and other products.
Current wording
Cost of products increased 15% and 11% for the three and six months ended June 30, 2025, respectively, as compared to the three and six months ended June 30, 2024. Cost of products for the three and six months ended June 30, 2025 and 2024 included costs related to aortic stent grafts, On-X products, surgical sealants, and other products.
Previous wording
The increase in cost of products for the three months ended March 31, 2025 was primarily due to an increase in the volume of all products shipped, as compared to the three months ended March 31, 2024.
Current wording
The increase in cost of products for the three and six months ended June 30, 2025 was primarily due to an increase in the volume of all products shipped, as compared to the three and six months ended June 30, 2024.
Previous wording
Cost of preservation services decreased 6% for the three months ended March 31, 2025, respectively, as compared to the three months ended March 31, 2024. Cost of preservation services included costs for cardiac and vascular tissue preservation services.
Current wording
Cost of preservation services increased 14% and 4% for the three and six months ended June 30, 2025, respectively, as compared to the three and six months ended June 30, 2024. Cost of preservation services included costs for cardiac and vascular tissue preservation services.
Previous wording
The decrease in cost of preservation services for the three months ended March 31, 2025 was primarily due to a decrease in the volume of tissues shipped, partially offset by an increase in cost of tissues shipped, as compared to the three months ended March 31, 2024.
Current wording
The increase in cost of preservation services for the six months ended June 30, 2025 was primarily due to an increase in the cost of tissues shipped, partially offset by a decrease in the volume of tissues shipped, as compared to the six months ended June 30, 2024.
Previous wording
The increase in gross margin for the three months ended March 31, 2025, as compared to the three months ended March 31, 2024, was primarily due to an increase in the volume of all products shipped and the increase in the average sales price of certain products shipped for the three months ended March 31, 2025. The increase was partially offset by a decrease in the volume of tissues shipped, unfavorable cost of tissues shipped, and the unfavorable effect of foreign currency, as compared to the three months ended March 31, 2024. Gross margin as a percentage of total revenues decreased for the three months ended March 31, 2025, as compared to the three months ended March 31, 2024. Gross margin as a percentage of total revenues was negatively impacted by an unfavorable mix and cost of tissues shipped, partially offset by favorable product mix of certain products shipped including aortic stent grafts and BioGlue as well as a favorable pricing of certain products during the three months ended March 31, 2025.
Current wording
The increase in gross margin for the three months ended June 30, 2025, as compared to the three months ended June 30, 2024, was primarily due to an increase in the volume of all products and tissues shipped as well as the increase in the average sales price of products and certain tissues shipped and favorable mix of certain products shipped for the three months ended June 30, 2025. The increase was partially offset by unfavorable cost of certain products and tissues shipped, as compared to the three months ended June 30, 2024. Gross margin as a percentage of total revenues was flat for the three months ended June 30, 2025, as compared to the three months ended June 30, 2024. Gross margin as a percentage of total revenues was positively impacted by favorable product mix as well as favorable pricing of certain products shipped, including aortic stent grafts, offset by unfavorable costs of certain products and tissues shipped during the three months ended June 30, 2025.
Previous wording
General, administrative, and marketing expenses increased 78% for the three months ended March 31, 2025, respectively, as compared to the three months ended March 31, 2024, which includes the impact of the Ascyrus contingent consideration fair value adjustment gain of $2.8 million and $17.5 million for the three months ended March 31, 2025 and 2024, respectively. The remaining general, administrative, and marketing expenses for the three months ended March 31, 2025 increased $9.4 million as a result of $4.5 million of expenses associated with the 2024 cybersecurity incident as well as higher non-cash stock compensation expenses.
Current wording
General, administrative, and marketing expenses increased 17% for the three months ended June 30, 2025, as compared to the three months ended June 30, 2024, which includes the impact of the Ascyrus contingent consideration fair value adjustment loss of $2.6 million and $1.8 million for the three months ended June 30, 2025 and 2024, respectively. The remaining general, administrative, and marketing expenses for the three months ended June 30, 2025 increased $7.5 million as a result of investments in sales and marketing, including expenses associated with the AMDS launch in the US, as well as investments in information technology, including $1.2 million of expenses associated with the 2024 cybersecurity incident, and increased non-cash stock compensation expenses.
Previous wording
Research and development expenses decreased 3% for the three months ended March 31, 2025, as compared to the three months ended March 31, 2024. Research and development spending for the three months ended March 31, 2025 was primarily focused on clinical work to gain regulatory approvals for certain aortic stent grafts, and, to a lesser extent, On-X products.
Current wording
Research and development expenses decreased 6% and 5% for the three and six months ended June 30, 2025, as compared to the three and six months ended June 30, 2024, respectively. Research and development spending for the three and six months ended June 30, 2025 was primarily focused on clinical work to gain regulatory approvals for certain aortic stent grafts.
Previous wording
Interest expense was $7.7 million for the three months ended March 31, 2025, as compared to $7.8 million for the three months ended March 31, 2024. Interest expense for the three months ended March 31, 2025 decreased slightly due to lower variable interest rates on our credit facilities.
Current wording
Interest expense was $7.3 million and $14.9 million for the three and six months ended June 30, 2025, respectively, as compared to $8.3 million and $16.1 million for the three and six months ended June 30, 2024, respectively. Interest expense for the three and six months ended June 30, 2025 decreased due to lower variable interest rates on our credit facilities.
Previous wording
During the three months ended March 31, 2024 we recorded a loss on extinguishment of debt of $3.7 million in connection with the extinguishment of our previously existing credit facilities. See Part I, Item 1, Note 7 of the “Notes to Condensed Consolidated Financial Statements” for further discussion of our new credit facilities.
Current wording
During the six months ended June 30, 2024 we recorded a loss on extinguishment of debt of $3.7 million in connection with the extinguishment of our previously existing credit facilities. See Part I, Item 1, Note 7 of the “Notes to Condensed Consolidated Financial Statements” for further discussion of our new credit facilities.
Previous wording
Other (income) expense, net was $3.1 million of income for the three months ended March 31, 2025, as compared to $1.4 million of expense for the three months ended March 31, 2024. Other (income) expense, net for the three months ended March 31, 2025 primarily included a net $2.9 million gain from realized and unrealized effects of foreign currency gains and losses and a $0.3 million gain associated with fair value adjustments to loans issued pursuant to our Endospan agreements. Other expense, net for the three months ended March 31, 2024 primarily included a net $1.4 million loss from realized and unrealized effects of foreign currency gains and losses.
Current wording
Other (income) expense, net was $5.0 million and $8.0 million of income for the three and six months ended June 30, 2025, respectively, as compared to $1.0 million and $2.4 million of expense for the three and six months ended June 30, 2024, respectively. Other (income) expense, net for the three months ended June 30, 2025 primarily included a net $4.5 million gain from realized and unrealized effects of foreign currency gains and losses and a $0.5 million gain associated with fair value adjustments to loans issued pursuant to our Endospan agreements. Other (income) expense, net for the six months ended June 30, 2025 primarily included a net $7.4 million gain from realized and unrealized effects of foreign currency gains and losses and a $0.8 million gain associated with fair value adjustments to loans issued pursuant to our Endospan agreements. Other expense, net for the three and six months ended June 30, 2024 primarily included net losses of $0.9 million and $2.4 million, respectively, from realized and unrealized effects of foreign currency gains and losses.
Previous wording
Our effective income tax rate was a benefit of 78% and an expense of 41% for the three months ended March 31, 2025 and 2024, respectively. Our income tax rate was primarily impacted by state income taxes, non-deductible executive compensation, and changes in our valuation allowance against our net deferred tax assets, partially offset by excess tax deductions on stock-based compensation.
Current wording
Our effective income tax rate was an expense of 61% and 29% for the three and six months ended June 30, 2025, respectively, as compared to a benefit of 13% and an expense of 48% for the three and six months ended June 30, 2024, respectively. Our income tax rate was primarily impacted by state income taxes, non-deductible executive compensation, and changes in our valuation allowance against our net deferred tax assets, partially offset by excess tax deductions on stock-based compensation and foreign provision to return adjustments.
Previous wording
Historically, we believe the demand for most of our aortic stent grafts is seasonal, with a decline in demand generally occurring in the third quarter due to the summer holiday season in Europe.
Current wording
Historically, we believe the demand for most of our aortic stent grafts is seasonal, with a decline in demand generally occurring in the third quarter due primarily to the summer holiday season in Europe.
Previous wording
Our primary uses of liquidity include the payment of operating expenses, capital expenditures, servicing of debt and the funding of acquisitions or other collaborative arrangements. Our primary sources of funding are operating cash flows and borrowings under our debt facilities. As of March 31, 2025 we had approximately $320.1 million of total principle indebtedness outstanding.
Current wording
Our primary uses of liquidity include the payment of operating expenses, capital expenditures, servicing of debt and the funding of acquisitions or other collaborative arrangements. Our primary sources of funding are operating cash flows and borrowings under our debt facilities. As of June 30, 2025 we had approximately $220.5 million of total principal indebtedness outstanding.
Previous wording
Our liquidity as of March 31, 2025 consisted of cash and cash equivalents of $37.7 million, unused commitments of $30.0 million under a revolving credit facility and unused commitments of $100.0 million on delayed draw term loan facility (see “Credit Facilities” below). As of March 31, 2025 approximately 57% of our cash and cash equivalents were held in foreign jurisdictions. Our practice is to maintain sufficient liquidity through cash from operations and our revolving credit facility to mitigate the impacts of any adverse financial market conditions on our operations. We believe that cash generated from operations, together with amounts available under our Term Loan Facilities, as defined below, will be sufficient to meet working capital requirements and anticipated capital expenditures, and other strategic uses of cash, if any, and debt payments, if any, over the next twelve months.
Current wording
Our liquidity as of June 30, 2025 consisted of cash and cash equivalents of $53.5 million, unused commitments of $30.0 million under a revolving credit facility and unused commitments of $100.0 million on delayed draw term loan facility (see “Credit Facilities” below). As of June 30, 2025 approximately 47% of our cash and cash equivalents were held in foreign jurisdictions. Our practice is to maintain sufficient liquidity through cash from operations and our revolving credit facility to mitigate the impacts of any adverse financial market conditions on our operations. We believe that cash generated from operations, together with amounts available under our Term Loan Facilities, as defined below, will be sufficient to meet working capital requirements and anticipated capital expenditures, and other strategic uses of cash, if any, and debt payments, if any, over the next twelve months.
Previous wording
On January 18, 2024 we entered into a credit and guaranty agreement with Ares Management Credit funds (the “Ares Credit Agreement”) for $350.0 million of senior secured, interest-only, credit facilities, consisting of a $190.0 million secured term loan facility (the “Term Loan Facility”), a $100.0 million secured delayed draw term loan facility(the “Delayed Draw Term Loan Facility” and, together with the Term Loan Facility, the “Term Loan Facilities”) and a $60.0 million “senior-priority” secured revolving credit facility with a priority claim ahead of the other secured facilities (the “Revolving Credit Facility” and, together with the Term Loan Facilities, the “Credit Facilities”). Upon closing, we borrowed $190.0 million under the Term Loan Facility and $30.0 million under the Revolving Credit Facility. The proceeds of the initial borrowings were used along with cash on hand to pay off our previously existing credit agreement and pay related fees and expenses. The $100.0 million of undrawn availability under the Delayed Draw Term Loan Facility was established solely to make funds available in the event of a repurchase or repayment of the Convertible Senior Notes on or prior to a scheduled maturity date of July 1, 2025 (see below).
Current wording
On January 18, 2024 we entered into a credit and guaranty agreement with Ares Management Credit funds (the “Ares Credit Agreement”) for $350.0 million of senior secured, interest-only, credit facilities, consisting of a $190.0 million secured term loan facility (the “Term Loan Facility”), a $100.0 million secured delayed draw term loan facility(the “Delayed Draw Term Loan Facility” and, together with the Term Loan Facility, the “Term Loan Facilities”) and a $60.0 million “senior-priority” secured revolving credit facility with a priority claim ahead of the other secured facilities (the “Revolving Credit Facility” and, together with the Term Loan Facilities, the “Credit Facilities”). Upon closing, we borrowed $190.0 million under the Term Loan Facility and $30.0 million under the Revolving Credit Facility. The proceeds of the initial borrowings were used along with cash on hand to pay off our previously existing credit agreement and pay related fees and expenses. The $100.0 million of undrawn availability under the Delayed Draw Term Loan Facility was established solely to make funds available in the event of a repurchase or repayment of the Convertible Senior Notes on or prior to a scheduled maturity date of July 1, 2025 (see below). The Delayed Draw Term Loan Facility was terminated on July 2, 2025 as we entered into separate, privately negotiated exchange agreements with the Holders ofthe Convertible Senior Notes as discussed below.
Previous wording
The final scheduled maturity date of the Credit Facilities is January 18, 2030. There are no scheduled repayments of principal required to be made prior to the final maturity date. We have the right to prepay loans under the Ares Credit Agreement in whole or in part at any time, subject to certain premium payment requirements. Amounts repaid in respect of loans under the Term Loan Facilities may not be reborrowed. The Credit Facilities currently bear interest at the Adjusted Term Secured Overnight Financing Rate (“Adjusted Term SOFR”) plus applicable margins. As of March 31, 2025 the aggregate interest rate was 10.81% and 8.31% per annum for the Term Loan Facilities and Revolving Credit Facility, respectively. See Part I, Item 1, Note 7 of the “Notes to Consolidated Financial Statements” for further discussion of our new Ares Credit Agreement.
Current wording
The final scheduled maturity date of the Credit Facilities is January 18, 2030. There are no scheduled repayments of principal required to be made prior to the final maturity date. We have the right to prepay loans under the Ares Credit Agreement in whole or in part at any time, subject to certain premium payment requirements. Amounts repaid in respect of loans under the Term Loan Facilities may not be reborrowed. The Credit Facilities currently bear interest at the Adjusted Term Secured Overnight Financing Rate (“Adjusted Term SOFR”) plus applicable margins. As of June 30, 2025 the aggregate interest rate was 10.55% and 8.30% per annum for the Term Loan Facilities and Revolving Credit Facility, respectively. See Part I, Item 1, Note 7 of the “Notes to Consolidated Financial Statements” for further discussion of our new Ares Credit Agreement.
Previous wording
Net cash used in operating activities increased $11.5 million during the three months ended March 31, 2025, as compared to the three months ended March 31, 2024, primarily due to professional fees related to the 2024 cybersecurity incident, an increase in liabilities being paid during the quarter that had been delayed at the end of 2024 due to the cybersecurity incident, and a change in the timing of interest payments on our credit facilities executed in January 2024. We expect to continue to incur professional fees in the remainder of 2025 in connection with enhanced ongoing cybersecurity services.
Current wording
Net cash used in operating activities increased $2.6 million during the six months ended June 30, 2025, as compared to the six months ended June 30, 2024, primarily due to an increase in working capital related to receivables and inventory, an increase in professional fees related to the 2024 cybersecurity incident, and a change in the timing of interest payments on our credit facilities executed in January 2024. We expect to continue to incur professional fees in the remainder of 2025 in connection with enhanced ongoing cybersecurity services.
Previous wording
Net cash used in investing activities was $3.6 million for both the three months ended March 31, 2025 and 2024. During the three months ended March 31, 2025 cash flows used in investing activities included $3.6 million of cash used for capital expenditures.
Current wording
Net cash used in investing activities was $6.9 million and $6.1 million for the six months ended June 30, 2025 and 2024, respectively. During the six months ended June 30, 2025 cash flows used in investing activities included $6.9 million of cash used for capital expenditures.
Previous wording
Net cash provided by financing activities was $3.9 million and $0.7 million for the three months ended March 31, 2025 and 2024, respectively. The current year cash provided by financing activities was primarily due to $4.2 million of proceeds from the exercise of stock options and issuances of common stock, partially offset by $0.1 million for the repayment of debt.
Current wording
Net cash provided by financing activities was $6.5 million and $0.6 million for the six months ended June 30, 2025 and 2024, respectively. The current year cash provided by financing activities was primarily due to $4.5 million of proceeds from the exercise of stock options and issuances of common stock and $3.1 million of proceeds from financing insurance premiums, partially offset by $0.6 million for principal payments on short-term notes payable.
Previous wording
Capital expenditures were $3.6 million for both the three months ended March 31, 2025 and 2024. Capital expenditures for the three months ended March 31, 2025 were primarily related to routine purchases of manufacturing and tissue processing equipment, computer software, computer equipment, and leasehold improvements to support our business.
Current wording
Capital expenditures were $6.9 million and $6.1 million for the six months ended June 30, 2025 and 2024, respectively. Capital expenditures for the six months ended June 30, 2025 were primarily related to routine purchases of manufacturing and tissue processing equipment, computer software, computer equipment, and leasehold improvements to support our business.
Rearranged current paragraphs (4)
Current report — wording carried from elsewhere
Revenues from the sales of surgical sealants increased 4% for the three months ended June 30, 2025, as compared to the three months ended June 30, 2024. This increase was primarily due to an increase in the volume of milliliters sold and, to a lesser extent, an increase in average sales prices.
Current report — wording carried from elsewhere
The increase in cost of preservation services for the three months ended June 30, 2025 was primarily due to an increase in cost of certain tissues shipped, as compared to the three months ended June 30, 2024.
Current report — wording carried from elsewhere
The increase in gross margin for the six months ended June 30, 2025, as compared to the six months ended June 30, 2024, was primarily due to an increase in the volume of all products and tissues shipped as well as the increase in the average sales price of certain products and tissues shipped and favorable mix of certain products shipped for the six months ended June 30, 2025. The increase was partially offset by unfavorable cost of certain products and tissues shipped as well as an unfavorable mix of tissues shipped as compared to the six months ended June 30, 2024. Gross margin as a percentage of total revenues decreased for the six months ended June 30, 2025, as compared to the six months ended June 30, 2024. Gross margin as a percentage of total revenues was negatively impacted by an unfavorable mix and costs of tissues shipped, partially offset by a favorable mix of certain products shipped, including aortic stent grafts, as well as favorable pricing of certain products during the six months ended June 30, 2025.
Current report — wording carried from elsewhere
General, administrative, and marketing expenses increased 40% for the six months ended June 30, 2025, as compared to the six months ended June 30, 2024, which includes the impact of the Ascyrus contingent consideration fair value adjustment gain of $0.2 million and $15.7 million for the six months ended June 30, 2025 and 2024, respectively. The remaining general, administrative, and marketing expenses for the six months ended June 30, 2025 increased $16.9 million as a result of investments in information technology, including $5.7 million of expenses associated with the 2024 cybersecurity incident, as well as investments in sales and marketing, including expenses associated with the AMDS launch in the US, and increased non-cash stock compensation expenses.