ARTIVION, INC.

Previous wording

Artivion, Inc. (“Artivion,” the “Company,” “we,” or “us”), is a leader in the manufacturing, processing, and distribution of medical devices and implantable human tissues used in cardiac and vascular surgical procedures for patients with aortic disease. We have four major product families: aortic stent grafts, On-X® mechanical heart valves and related surgical products (“On-X” products), surgical sealants, and implantable cardiac and vascular human tissues. Aortic stent grafts include aortic arch stent grafts, abdominal stent grafts, and synthetic vascular grafts. Aortic arch stent grafts include our E-vita® Open NEO, E-vita Open Plus, AMDSTM, the NEXUS ONETM, NEXUS DUOTM, and NEXUS TRETM aortic arch stent graft systems (the “NEXUS family of products”), and E-vita Thoracic 3G. Abdominal stent grafts include our E-xtra Design Engineering, E-nside TM, Artivex TM, E-tegra TM, E-ventus TM BX, Tuva TMBX, and E-liac TM products. Surgical sealants include BioGlue Surgical Adhesive (“BioGlue”) products. In addition to these four major product families, we sell or distribute PhotoFix bovine surgical patches (“PhotoFix”). We began to manufacture and supply PerClot® hemostatic powder (“PerClot”) during the second quarter of 2023 (as part of our Transitional Manufacturing and Supply Agreement with Baxter International, Inc.).

Current wording

Artivion, Inc. (“Artivion,” the “Company,” “we,” or “us”), is a leader in the manufacturing, processing, and distribution of medical devices and implantable human tissues used in cardiac and vascular surgical procedures for patients with aortic disease. We have four major product families: aortic stent grafts, On-X® mechanical heart valves and related surgical products (“On-X” products), surgical sealants, and implantable cardiac and vascular human tissues. Aortic stent grafts include aortic arch stent grafts, abdominal stent grafts, and synthetic vascular grafts. Aortic arch stent grafts include our E-vita® Open NEO, E-vita Open Plus, Arcevo LSA, AMDSTM, the NEXUS ONETM, NEXUS DUOTM, and NEXUS TRETM aortic arch stent graft systems (the “NEXUS family of products”), and E-vita Thoracic 3G products. Abdominal stent grafts include our E-xtra Design Engineering, E-nside TM, Artivex TM, E-tegra TM, E-ventus TM BX, Tuva TMBX, and E-liac TM products. Surgical sealants include BioGlue Surgical Adhesive (“BioGlue”) products. In addition to these four major product families, we sell or distribute PhotoFix bovine surgical patches (“PhotoFix”). We began to manufacture and supply PerClot® hemostatic powder (“PerClot”) during the second quarter of 2023 (as part of our Transitional Manufacturing and Supply Agreement with Baxter International, Inc.).

Previous wording

We reported quarterly revenues of $113.4 million for the three months ended September 30, 2025, an 18% increase from the three months ended September 30, 2024. The increase in revenues for the three months ended September 30, 2025 was due to an increase in revenues from aortic stent grafts, On-X products, surgical sealants, and preservation services, partially offset by a decrease in revenues from other products. Constant currency revenues, as defined below, increased 16% for the three months ended September 30, 2025, as compared to the three months ended September 30, 2024.

Current wording

We reported quarterly revenues of $116.3 million for the three months ended March 31, 2026, an 18% increase from the three months ended March 31, 2025. The increase in revenues for the three months ended March 31, 2026 was due to an increase in revenues from aortic stent grafts, preservation services, On-X products, and surgical sealants, partially offset by a decrease in revenues from other products. Constant currency revenues, as defined below, increased 12% for the three months ended March 31, 2026, as compared to the three months ended March 31, 2025.

Previous wording

See the “Results of Operations” section below for additional analysis of the three and nine months ended September 30, 2025.

Current wording

See the “Results of Operations” section below for additional analysis of the three months ended March 31, 2026.

Previous wording

A detailed discussion of the changes in product revenues and preservation services revenues for the three and nine months ended September 30, 2025 is presented below.

Current wording

A detailed discussion of the changes in product revenues and preservation services revenues for the three months ended March 31, 2026 is presented below.

Previous wording

Revenues from products increased 23% and 18% for the three and nine months ended September 30, 2025, respectively, as compared to the three and nine months ended September 30, 2024. The increase for the three months ended September 30, 2025 was due to an increase in revenues from aortic stent grafts, On-X products, and surgical sealants, partially offset by a decrease in revenues from other products. The increase for the nine months ended September 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.

Current wording

Revenues from products increased 16% for the three months ended March 31, 2026, as compared to the three months ended March 31, 2025. The increase for the three months ended March 31, 2026 was due to an increase in revenues from aortic stent grafts, On-X products, and surgical sealants, partially offset by a decrease in revenues from other 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 thethree and nine months ended September 30, 2025, as compared to thethree and nine months ended September 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. 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 thethree months ended March 31, 2026, as compared to thethree months ended March 31, 2025, the US Dollar weakened in comparison to major currencies, resulting in revenue increases 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 31% and 24% for the three and nine months ended September 30, 2025, respectively, as compared to the three and nine months ended September 30, 2024. Revenues for the three and nine months ended September 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 nine months ended September 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 nine months ended September 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.

Current wording

Constant currency revenues from the sales of aortic stent grafts increased 10% for the three months ended March 31, 2026, as compared to the three months ended March 31, 2025. Revenues for the three months ended March 31, 2026 increased primarily in North America, and Europe, the Middle East, and Africa (collectively, “EMEA”), partially offset by a decrease in Asia Pacific (“APAC”) and Latin America (“LATAM”). The revenue increase in North America for the three months ended March 31, 2026 was primarily due to an increase in sales of AMDS, reflecting increased adoption following the grant of a humanitarian device exemption (“HDE”) 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. The revenue increase in EMEA for the three months ended March 31, 2026 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 decrease in revenues in APAC and LATAM for the three months ended March 31, 2026 was impacted by customer buying patterns in certain markets.

Previous wording

Revenues from the sales of On-X products increased 20% for the nine months ended September 30, 2025, as compared to the nine months ended September 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 wording

Revenues from the sales of On-X products increased 20% for the three months ended March 31, 2026, as compared to the three months ended March 31, 2025. This increase was primarily due to an increase in the volume of units sold and an increase in average sales prices.

Previous wording

Constant currency revenues from the sales of On-X products increased 23% and 20% for the three and nine months ended September 30, 2025, respectively, as compared to the three and nine months ended September 30, 2024. Revenues for the three and nine months ended September 30, 2025 increased in all geographies, with the most significant increases in North America and EMEA. The increase in revenues in North America and EMEA for thethree and nine months ended September 30, 2025 was impacted by gains in the market share. The increase in revenues from EMEA for thethree and nine months ended September 30, 2025 was primarily due to an increase in unit sales in both indirect and direct markets.

Current wording

Constant currency revenues from the sales of On-X products increased 17% for the three months ended March 31, 2026, as compared to the three months ended March 31, 2025. The increase in revenues for the three months ended March 31, 2026 was primarily due to growth in North America, EMEA, and APAC, reflecting gains in market share. The increase in revenues from EMEA for thethree months ended March 31, 2026 was primarily due to an increase in unit sales in direct markets.

Previous wording

Domestic revenues from the sales of On-X products accounted for 60% and 62% of total On-X revenues for the three and nine months ended September 30, 2025, respectively, as compared to 59% and 60% for the three and nine months ended September 30, 2024, respectively.

Current wording

Domestic revenues from the sales of On-X products accounted for 62% and 65% of total On-X revenues for the three months ended March 31, 2026 and 2025, respectively.

Previous wording

Revenues from the sales of surgical sealants increased 4% for the nine months ended September 30, 2025, as compared to the nine months ended September 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 wording

Revenues from the sales of surgical sealants increased 4% for the three months ended March 31, 2026, as compared to the three months ended March 31, 2025. This increase was primarily due to favorable foreign exchange rates and, to a lesser extent, an increase in average sales prices.

Previous wording

Constant currency revenues from the sales of surgical sealants increased 1% and 4% for the three and nine months ended September 30, 2025, respectively, as compared to the three and nine months ended September 30, 2024. The increase in revenues for the three months ended September 30, 2025 was primarily due to revenue increases in Latin America (“LATAM”), Asia Pacific (“APAC”), and North America, with the most significant increase in LATAM. The increase in revenues in LATAM for the three months ended September 30, 2025 was primarily due to an increase in the volume of units sold in both indirect and direct markets. The increase in revenues in LATAM, APAC, and North America for the three months ended September 30, 2025 were partially offset by a revenue decrease in EMEA, which was primarily due to a decrease in unit sales in direct markets. The increase in revenues for the nine months ended September 30, 2025 was due to revenue increases in LATAM, North America, and APAC, with the most significant increase in LATAM. The increase in revenues in LATAM for the nine months ended September 30, 2025 was primarily due to an increase in unit sales in indirect markets. The increase in revenues in LATAM, APAC, and North America for the nine months ended September 30, 2025 were partially offset by a revenue decrease in EMEA, which was primarily due to a decrease in unit sales in direct markets.

Current wording

Constant currency revenues from the sales of surgical sealants were flat for the three months ended March 31, 2026, as compared to the three months ended March 31, 2025, as revenue growth in North America and, to a lesser extent, APAC, was offset by a decrease in revenue in LATAM. The increase in revenues in North America for thethree months ended March 31, 2026 was primarily due to an increase in unit sales and an increase in average sales prices. The increase in revenues in APAC for thethree months ended March 31, 2026 was primarily due to an increase in unit sales. The decrease in revenues in LATAM was primarily due to a decrease in unit sales in indirect markets.

Previous wording

Domestic revenues from the sales of surgical sealants accounted for 44% and 47% of total surgical sealant revenues for both the three and nine months ended September 30, 2025 and 2024, respectively.

Current wording

Domestic revenues from the sales of surgical sealants accounted for 50% and 49% of total surgical sealant revenues for the three months ended March 31, 2026 and 2025, respectively.

Previous wording

Other revenues decreased 11% for the three months ended September 30, 2025, as compared to the three months ended September 30, 2024. The decrease was due to a decrease in PerClot product revenues, partially offset by an increase in PhotoFix product revenues.

Current wording

Other revenues decreased 9% for the three months ended March 31, 2026, as compared to the three months ended March 31, 2025. The decrease was primarily due to a decrease in PerClot product revenues resulting from the timing of shipments.

Previous wording

Revenues from tissue processing increased 5% for the three months ended September 30, 2025, as compared to the three months ended September 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 released during the second and third quarters of 2025 and tissue shipments have now returned to normal levels.

Current wording

Revenues from tissue processing increased 23% for the three months ended March 31, 2026, as compared to the three months ended March 31, 2025. The increase was primarily due to an increase in the volume of higher priced tissues shipped as well as an increase in average sales prices. Revenues for the three months ended March 31, 2025 were adversely affected by the 2024 cybersecurity incident.

Previous wording

Cost of products increased 14% and 12% for the three and nine months ended September 30, 2025, respectively, as compared to the three and nine months ended September 30, 2024. Cost of products for the three and nine months ended September 30, 2025 and 2024 included costs related to aortic stent grafts, On-X products, surgical sealants, and other products.

Current wording

Cost of products increased 18% for the three months ended March 31, 2026, as compared to the three months ended March 31, 2025. Cost of products for the three months ended March 31, 2026 and 2025 included costs related to aortic stent grafts, On-X products, surgical sealants, and other products.

Previous wording

Cost of preservation services increased 8% and 5% for the three and nine months ended September 30, 2025, respectively, as compared to the three and nine months ended September 30, 2024. Cost of preservation services included costs for cardiac and vascular tissue preservation services.

Current wording

Cost of preservation services increased 10% for the three months ended March 31, 2026, as compared to the three months ended March 31, 2025. Cost of preservation services included costs for cardiac and vascular tissue preservation services.

Previous wording

The increase in cost of preservation services for the three months ended September 30, 2025 was primarily due to an increase in cost of tissues shipped and volume of certain tissues shipped, as compared to the three months ended September 30, 2024.

Current wording

The increase in total cost of preservation services for the three months ended March 31, 2026 was primarily due to an increase in the volume of certain tissues shipped, as compared to the three months ended March 31, 2025.

Previous wording

The increase in gross margin for the three months ended September 30, 2025, as compared to the three months ended September 30, 2024, was primarily due to an increase in the volume of all products 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 three months ended September 30, 2025. The increase was partially offset by unfavorable cost of certain products and tissues shipped, as compared to the three months ended September 30, 2024. Gross margin as a percentage of total revenues increased for the three months ended September 30, 2025, as compared to the three months ended September 30, 2024. Gross margin as a percentage of total revenues was positively impacted by a favorable geography and product mix as well as favorable pricing of certain products shipped, including On-X products and certain aortic stent grafts, partially offset by unfavorable costs of certain products and tissues shipped during the three months ended September 30, 2025.

Current wording

The increase in gross margin for the three months ended March 31, 2026, as compared to the three months ended March 31, 2025, was primarily due to a favorable mix of certain products and tissues shipped, an increase in the average sales price of certain products and tissues shipped, a favorable effect of foreign exchange rates, and an increase in volume of certain products and tissues shipped for the three months ended March 31, 2026. The increase was partially offset by unfavorable cost of certain products shipped, as compared to the three months ended March 31, 2025. Gross margin as a percentage of total revenues increased for the three months ended March 31, 2026, as compared to the three months ended March 31, 2025. Gross margin as a percentage of total revenues was positively impacted by a favorable product mix and favorable pricing of certain products and tissues shipped, partially offset by unfavorable costs of certain products shipped during the three months ended March 31, 2026.

Previous wording

General, administrative, and marketing expenses increased 15% for the three months ended September 30, 2025, as compared to the three months ended September 30, 2024, which includes the impact of the Ascyrus contingent consideration fair value adjustment loss of $2.6 million and $3.5 million for the three months ended September 30, 2025 and 2024, respectively. The remaining general, administrative, and marketing expenses for the three months ended September 30, 2025 increased $8.2 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 $0.7 million of expenses associated with the 2024 cybersecurity incident, and increased non-cash stock compensation expenses.

Current wording

General, administrative, and marketing expenses increased 11% for the three months ended March 31, 2026, as compared to the three months ended March 31, 2025, which includes the impact of the Ascyrus contingent consideration fair value adjustment loss of $1.7 million and gain of $2.8 million for the three months ended March 31, 2026 and 2025, respectively. The remaining general, administrative, and marketing expenses for the three months ended March 31, 2026 increased $1.5 million as a result of investments in sales and marketing, as well as investments in information technology, partially offset by $1.5 million in net cyber insurance recoveries received.

Previous wording

Research and development expenses increased 22% and 4% for the three and nine months ended September 30, 2025, as compared to the three and nine months ended September 30, 2024, respectively. Research and development spending for the three and nine months ended September 30, 2025 was primarily focused on clinical work to gain regulatory approvals for certain aortic stent grafts.

Current wording

Research and development expenses increased 31% for the three months ended March 31, 2026, as compared to the three months ended March 31, 2025. Research and development spending for the three months ended March 31, 2026 was primarily focused on clinical work to gain regulatory approvals for certain aortic stent grafts.

Previous wording

Interest expense was $6.1 million and $21.1 million for the three and nine months ended September 30, 2025, respectively, as compared to $8.4 million and $24.5 million for the three and nine months ended September 30, 2024, respectively. Interest expense for the three and nine months ended September 30, 2025 decreased primarily due to lower variable interest rates on our credit facilities and reduced interest expense as a result of the settlement of the Convertible Senior Notes. See Part I, Item 1, Note 8 of the “Notes to Condensed Consolidated Financial Statements” for further discussion of the settlement of the Convertible Senior Notes.

Current wording

Interest expense was $5.4 million and $7.7 million for the three months ended March 31, 2026 and 2025, respectively. Interest expense for the three months ended March 31, 2026 decreased primarily due to lower variable interest rates on our credit facilities and reduced interest expense as a result of the settlement of the Convertible Senior Notes. See Part I, Item 1, Note 8 of the “Notes to Condensed Consolidated Financial Statements” for further discussion of the settlement of the Convertible Senior Notes.

Previous wording

Other (income) expense, net was $0.4 million and $8.4 million of income for the three and nine months ended September 30, 2025, respectively, as compared to $2.4 million of income and less than $0.1 million of expense for the three and nine months ended September 30, 2024, respectively. Other (income) expense, net for the three months ended September 30, 2025 primarily included a $0.5 million gain associated with fair value adjustments to loans issued pursuant to our Endospan agreements, partially offset by a net $0.1 million loss from realized and unrealized effects of foreign currency gains and losses. Other (income) expense, net for the nine months ended September 30, 2025 primarily included a net $7.3 million gain from realized and unrealized effects of foreign currency gains and losses and a $1.2 million gain associated with fair value adjustments to loans issued pursuant to our Endospan agreements. Other (income) expense, net for the three and nine months ended September 30, 2024 primarily included net gains of $2.4 million and less than $0.1 million, respectively, from realized and unrealized effects of foreign currency gains and losses.

Current wording

Other expense (income), net was $0.3 million of expense and $3.1 million of income for the three months ended March 31, 2026 and 2025, respectively. Other expense (income), net for the three months ended March 31, 2026 primarily included a net $0.8 million loss from realized and unrealized effects of foreign currency gains and losses, partially offset by a $0.5 million gain associated with fair value adjustments to loans issued pursuant to our Endospan agreements. Other expense (income), 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.

Previous wording

Our effective income tax rate was an expense of 8% and 11% for the three and nine months ended September 30, 2025, respectively, as compared to an expense of 81% and 66% for the three and nine months ended September 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.

Current wording

Our effective income tax rate was a benefit of 318% and 78% for the three months ended March 31, 2026 and 2025, respectively. The effective income tax rate for the three months ended March 31, 2026 was primarily impacted by excess tax deductions on stock-based compensation, partially offset by state income taxes, non-deductible executive compensation, and changes in our valuation allowance against net deferred tax assets.

Previous wording

On July 4, 2025 the One Big Beautiful Bill Act (“OBBBA”) was enacted in the U.S. The OBBBA includes significant provisions, such as the permanent extension of certain expiring provisions of the Tax Cuts and Jobs Act, modifications to the international tax framework and the restoration of favorable tax treatment for certain business provisions. The legislation has multiple effective dates, with certain provisions effective in 2025 and others implemented through 2027. We have reflected the impact of the enactment in our results for the three and nine months ended September 30, 2025. As a result, we are not anticipating significant cash tax obligations in the US federal and state jurisdictions for the 2025 tax year.

Current wording

On July 4, 2025 the One Big Beautiful Bill Act (“OBBBA”) was enacted in the U.S. The OBBBA includes significant provisions, such as the permanent extension of certain expiring provisions of the Tax Cuts and Jobs Act, modifications to the international tax framework and the restoration of favorable tax treatment for certain business provisions. The legislation has multiple effective dates, with certain provisions effective in 2025 and others implemented through 2027. We have reflected the impact of the enactment in our results for the three months ended March 31, 2026.

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 primarily 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 primarily due to the summer holiday season in Europe.

Previous wording

We do not believe the demand for our On-X and other products is seasonal.

Current wording

We do not believe demand for our On-X products, other products, and cardiac preservation services is materially seasonal.

Previous wording

Our liquidity as of September 30, 2025 consisted of cash and cash equivalents of $73.4 million, unused commitments of $30.0 million under a revolving credit facility, and unused commitments of $150.0 million on the new delayed draw term loan facility (see “Credit Facilities” below). As of September 30, 2025 approximately 31% 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 March 31, 2026 consisted of cash and cash equivalents of $55.8 million, unused commitments of $30.0 million under a revolving credit facility, and unused commitments of $150.0 million on the new delayed draw term loan facility (see “Credit Facilities” below). As of March 31, 2026 approximately 33% 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 Credit 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

Our future cash requirements are expected to include interest payments under our credit facilities, expenditures for clinical trials, research and development expenditures, general working capital needs, capital expenditures, other corporate purposes and may include cash to fund business development activities including obligations pursuant to arrangements with Endopsan and the acquisition of Ascyrus. These items may have a significant effect on our future cash flows during the next twelve months. Subject to the terms of our credit facilities, we may seek additional borrowing capacity or financing, pursuant to our current or any future shelf registration statement, for general corporate purposes or to fund other future cash requirements. If we undertake any further significant business development activity, we may need to finance such activities by obtaining additional debt financing or using a registration statement to sell equity securities. There can be no assurance that we will be able to obtain any additional debt or equity financing at the time needed or that such financing will be available on terms that are favorable or acceptable to us.

Current wording

Our future cash requirements are expected to include interest payments under our credit facilities, expenditures for clinical trials, research and development expenditures, general working capital needs, capital expenditures, other corporate purposes, obligations pursuant to the exercise of the Endospan purchase option, and may include cash to fund other business development activities including obligations pursuant to the acquisition of Ascyrus and Endospan. These items may have a significant effect on our future cash flows during the next twelve months. Subject to the terms of our credit facilities, we may seek additional borrowing capacity or financing, pursuant to our current or any future shelf registration statement, for general corporate purposes or to fund other future cash requirements. If we undertake any further significant business development activity, we may need to finance such activities by obtaining additional debt financing or using a registration statement to sell equity securities. There can be no assurance that we will be able to obtain any additional debt or equity financing at the time needed or that such financing will be available on terms that are favorable or acceptable to us.

Previous wording

The final scheduled maturity date of the Credit Facilities is January 18, 2031. 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 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 Secured Overnight Financing Rate (“SOFR”) plus applicable margins. As of September 30, 2025 the aggregate interest rate was 9.04% and 7.79% per annum for the Term Loan Facility and Revolving Credit Facility, respectively. See Part I, Item 1, Note 8 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, 2031. 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 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 Secured Overnight Financing Rate (“SOFR”) plus applicable margins. As of March 31, 2026 the aggregate interest rate was 8.41% and 7.16% per annum for the Term Loan Facility and Revolving Credit Facility, respectively. See Part I, Item 1, Note 8 of the “Notes to Condensed Consolidated Financial Statements” for further discussion of our new Ares Credit Agreement.

Previous wording

On June 18, 2020 we issued $100.0 million aggregate principal amount of 4.25% Convertible Senior Notes with a maturity date of July 1, 2025 (the “Convertible Senior Notes”). 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. 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.

Current wording

On June 18, 2020 we issued $100.0 million aggregate principal amount of 4.25% Convertible Senior Notes with a maturity date of July 1, 2025 (the “Convertible Senior Notes”). 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. The remaining$0.5 million in aggregate principal amount of the Convertible Senior Notes was settled on July 1, 2025 resulting in the issuance of 19,605 shares of our common stock.

Previous wording

Net cash provided by operating activities increased $8.2 million during the nine months ended September 30, 2025, as compared to the nine months ended September 30, 2024, primarily due to an increase in cash collected from customers due to an increase in revenues, which was partially offset by an increase in professional fees related to the 2024 cybersecurity incident, an increase in inventories and deferred preservation costs to support the increase in revenues, and a change in 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 provided by operating activities increased $18.1 million during the three months ended March 31, 2026, as compared to the three months ended March 31, 2025, primarily due to increased profitability, an increase in cash collected from customers, and the favorable impact of lower costs and insurance recoveries associated with the 2024 cybersecurity incident. These favorable impacts were partially offset by an increase in inventories and deferred preservation costs to support the increase in revenues.

Previous wording

Net cash used in investing activities was $11.5 million and $16.8 million for the nine months ended September 30, 2025 and 2024, respectively. During the nine months ended September 30, 2025 cash flows used in investing activities included $11.5 million of cash used for capital expenditures.

Current wording

Net cash used in investing activities was $10.5 million and $3.6 million for the three months ended March 31, 2026 and 2025, respectively. During the three months ended March 31, 2026 cash flows used in investing activities included $8.0 million of cash used for capital expenditures, $1.5 million payment related to sale of PerClot, and $1.0 million payment for Endospan agreements.

Previous wording

Net cash provided by financing activities was $8.9 million and $2.0 million for the nine months ended September 30, 2025 and 2024, respectively. The current year cash provided by financing activities was primarily due to $9.6 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 $1.8 million for payment of debt issuance cost and $1.4 million for principal payments on short-term notes payable.

Current wording

Net cash provided by financing activities was $0.5 million and $3.9 million for the three months ended March 31, 2026 and 2025, respectively. The current year cash provided by financing activities was primarily due to $1.3 million of proceeds from the exercise of stock options and issuances of common stock, partially offset by $0.6 million for principal payments on short-term notes payable.

Previous wording

Capital expenditures were $11.5 million and $9.8 million for the nine months ended September 30, 2025 and 2024, respectively. Capital expenditures for the nine months ended September 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.

Current wording

Capital expenditures were $8.0 million and $3.6 million for the three months ended March 31, 2026 and 2025, respectively. Capital expenditures for the three months ended March 31, 2026 were primarily related to computer software development, purchases of manufacturing and tissue processing equipment, leasehold improvements, and computer equipment to support our business.