(State or other jurisdiction of incorporation) | (IRS Employer Identification No.) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||
☒ | Accelerated Filer | ☐ | Emerging growth company | ||||||||||||||
Non-Accelerated Filer | ☐ | Smaller reporting company |
Class | Outstanding at April 29, 2024 | ||||
Common Stock, $.001 par value |
Page | ||||||||
Item 5. | ||||||||
March 31, 2024 | December 31, 2023 | ||||||||||
Assets | |||||||||||
Current assets: | |||||||||||
Cash and cash equivalents | $ | $ | |||||||||
Short-term investments | |||||||||||
Accounts receivable, less allowance for credit losses of $ | |||||||||||
Inventories | |||||||||||
Prepaid and other current assets | |||||||||||
Total current assets | |||||||||||
Property and equipment, net | |||||||||||
Operating lease right-of-use assets | |||||||||||
Intangible assets, net | |||||||||||
Goodwill | |||||||||||
Other noncurrent assets | |||||||||||
Total Assets | $ | $ | |||||||||
Liabilities and Stockholders’ Equity | |||||||||||
Current liabilities: | |||||||||||
Accounts payable | $ | $ | |||||||||
Accrued liabilities | |||||||||||
Current maturities of lease liabilities | |||||||||||
Total current liabilities | |||||||||||
Long-term debt | |||||||||||
Finance and operating lease liabilities | |||||||||||
Other noncurrent liabilities | |||||||||||
Total Liabilities | |||||||||||
Commitments and contingencies (Note 9) | |||||||||||
Stockholders’ Equity: | |||||||||||
Common stock, $ | |||||||||||
Additional paid-in capital | |||||||||||
Accumulated other comprehensive loss | ( | ( | |||||||||
Accumulated deficit | ( | ( | |||||||||
Total Stockholders’ Equity | |||||||||||
Total Liabilities and Stockholders’ Equity | $ | $ |
Three Months Ended March 31, | |||||||||||
2024 | 2023 | ||||||||||
Revenue | $ | $ | |||||||||
Cost of revenue | |||||||||||
Gross profit | |||||||||||
Operating expenses: | |||||||||||
Research and development expenses | |||||||||||
Selling, general and administrative expenses | |||||||||||
Total operating expenses | |||||||||||
Loss from operations | ( | ( | |||||||||
Other income (expense): | |||||||||||
Interest expense | ( | ( | |||||||||
Interest income | |||||||||||
Loss on debt extinguishment | ( | ||||||||||
Other income (expense) | ( | ||||||||||
Loss before income tax expense | ( | ( | |||||||||
Income tax expense | |||||||||||
Net loss | $ | ( | $ | ( | |||||||
Basic and diluted net loss per share | $ | ( | $ | ( | |||||||
Weighted average shares outstanding—basic and diluted | |||||||||||
Comprehensive income (loss): | |||||||||||
Unrealized gain on investments | $ | $ | |||||||||
Foreign currency translation adjustment | ( | ( | |||||||||
Other comprehensive income | |||||||||||
Net loss | ( | ( | |||||||||
Comprehensive loss, net of tax | $ | ( | $ | ( |
Three Months Ended March 31, 2023 | |||||||||||||||||||||||||||||||||||
Common Stock | Additional Paid-in Capital | Accumulated Deficit | Accumulated Other Comprehensive Income (Loss) | Total Stockholders’ Equity | |||||||||||||||||||||||||||||||
Shares | Amount | ||||||||||||||||||||||||||||||||||
Balance—December 31, 2022 | $ | $ | $ | ( | $ | ( | $ | ||||||||||||||||||||||||||||
Impact of equity compensation plans | — | — | — | ||||||||||||||||||||||||||||||||
Other comprehensive income | — | — | — | — | |||||||||||||||||||||||||||||||
Net loss | — | — | — | ( | — | ( | |||||||||||||||||||||||||||||
Balance—March 31, 2023 | $ | $ | $ | ( | $ | ( | $ | ||||||||||||||||||||||||||||
Three Months Ended March 31, 2024 | |||||||||||||||||||||||||||||||||||
Common Stock | Additional Paid-in Capital | Accumulated Deficit | Accumulated Other Comprehensive Income (Loss) | Total Stockholders’ Equity | |||||||||||||||||||||||||||||||
Shares | Amount | ||||||||||||||||||||||||||||||||||
Balance—December 31, 2023 | $ | $ | $ | ( | $ | ( | $ | ||||||||||||||||||||||||||||
Impact of equity compensation plans | — | — | — | ||||||||||||||||||||||||||||||||
Other comprehensive income | — | — | — | — | |||||||||||||||||||||||||||||||
Net loss | — | — | — | ( | — | ( | |||||||||||||||||||||||||||||
Balance—March 31, 2024 | $ | $ | $ | ( | $ | ( | $ |
Three Months Ended March 31, | |||||||||||
2024 | 2023 | ||||||||||
Cash flows from operating activities: | |||||||||||
Net loss | $ | ( | $ | ( | |||||||
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | |||||||||||
Share-based compensation expense | |||||||||||
Depreciation | |||||||||||
Amortization of intangible assets | |||||||||||
Amortization of deferred financing costs | |||||||||||
Amortization of investments | |||||||||||
Loss on debt extinguishment | |||||||||||
Other non-cash adjustments | |||||||||||
Changes in operating assets and liabilities: | |||||||||||
Accounts receivable | ( | ( | |||||||||
Inventories | ( | ( | |||||||||
Other current assets | ( | ( | |||||||||
Accounts payable | |||||||||||
Accrued liabilities | ( | ( | |||||||||
Other noncurrent assets and liabilities | ( | ||||||||||
Net cash used in operating activities | ( | ( | |||||||||
Cash flows from investing activities: | |||||||||||
Sales and maturities of available-for-sale securities | |||||||||||
Purchases of property and equipment | ( | ( | |||||||||
Net cash provided by investing activities | |||||||||||
Cash flows from financing activities: | |||||||||||
Proceeds from revolving credit facility, net of financing costs | |||||||||||
Payments on debt and leases | ( | ( | |||||||||
Payment of financing costs and bank fees | ( | ( | |||||||||
Proceeds from stock option exercises | |||||||||||
Shares repurchased for payment of taxes on stock awards | ( | ( | |||||||||
Net cash used in financing activities | ( | ( | |||||||||
Effect of exchange rate changes on cash and cash equivalents | ( | ||||||||||
Net (decrease) increase in cash and cash equivalents | ( | ||||||||||
Cash and cash equivalents—beginning of period | |||||||||||
Cash and cash equivalents—end of period | $ | $ | |||||||||
Supplemental cash flow information: | |||||||||||
Cash paid for interest | $ | $ | |||||||||
Net cash paid (received) for income taxes | ( | ||||||||||
Non-cash investing and financing activities: | |||||||||||
Accrued purchases of property and equipment |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Other Unobservable Inputs (Level 3) | Total | ||||||||||||||||||||
Assets: | |||||||||||||||||||||||
Money market funds | $ | $ | $ | $ | |||||||||||||||||||
Government and agency obligations | |||||||||||||||||||||||
Corporate bonds | |||||||||||||||||||||||
Asset-backed securities | |||||||||||||||||||||||
Total assets | $ | $ | $ | $ |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Other Unobservable Inputs (Level 3) | Total | ||||||||||||||||||||
Assets: | |||||||||||||||||||||||
Money market funds | $ | $ | $ | $ | |||||||||||||||||||
Government and agency obligations | |||||||||||||||||||||||
Corporate bonds | |||||||||||||||||||||||
Asset-backed securities | |||||||||||||||||||||||
Total assets | $ | $ | $ | $ |
Cost Basis | Unrealized Losses | Fair Value | |||||||||||||||
Corporate bonds | $ | $ | ( | $ | |||||||||||||
Government and agency obligations | ( | ||||||||||||||||
Asset-backed securities | ( | ||||||||||||||||
Total | $ | $ | ( | $ |
Cost Basis | Unrealized Losses | Fair Value | |||||||||||||||
Corporate bonds | $ | $ | ( | $ | |||||||||||||
Government and agency obligations | ( | ||||||||||||||||
Asset-backed securities | ( | ||||||||||||||||
Total | $ | $ | ( | $ |
Available-for-sale | |||||||||||
Amortized Cost | Fair Value | ||||||||||
Due in 1 year or less | $ | $ | |||||||||
Instruments not due at a single maturity date | |||||||||||
Total | $ | $ |
March 31, 2024 | December 31, 2023 | ||||||||||
Raw materials | $ | $ | |||||||||
Work in process | |||||||||||
Finished goods | |||||||||||
Total | $ | $ |
March 31, 2024 | December 31, 2023 | ||||||||||||||||||||||
Cost | Accumulated Amortization | Cost | Accumulated Amortization | ||||||||||||||||||||
Technology | $ | $ | $ | $ | |||||||||||||||||||
Patents | |||||||||||||||||||||||
Total | $ | $ | $ | $ |
Three Months Ended March 31, | |||||||||||
2024 | 2023 | ||||||||||
Cost of revenues | $ | $ | |||||||||
Selling, general and administrative expenses | |||||||||||
Total | $ | $ |
2024 (excluding the three months ended March 31, 2024) | $ | ||||
2025 | |||||
2026 | |||||
2027 | |||||
2028 | |||||
2029 and thereafter | |||||
Total | $ |
March 31, 2024 | December 31, 2023 | ||||||||||
Accrued compensation and employee-related expenses | $ | $ | |||||||||
Sales returns and allowances | |||||||||||
Other accrued liabilities | |||||||||||
Total | $ | $ |
2024 (excluding the three months ended March 31, 2024) | $ | ||||
2025 | |||||
2026 | |||||
2027 | |||||
2028 | |||||
Total long-term debt, of which $ | $ |
March 31, 2024 | December 31, 2023 | ||||||||||||||||
Operating Leases | |||||||||||||||||
Weighted average remaining lease term (years) | |||||||||||||||||
Weighted average discount rate | % | % | |||||||||||||||
Finance Leases | |||||||||||||||||
Weighted average remaining lease term (years) | |||||||||||||||||
Weighted average discount rate | % | % |
Three Months Ended March 31, | |||||||||||
2024 | 2023 | ||||||||||
Operating lease cost | $ | $ | |||||||||
Finance lease cost: | |||||||||||
Amortization of right-of-use assets | |||||||||||
Interest on lease liabilities | |||||||||||
Total finance lease cost | $ | $ |
Three Months Ended March 31, 2024 | Three Months Ended March 31, 2023 | ||||||||||
Cash paid for amounts included in the measurement of lease liabilities: | |||||||||||
Operating cash flows for operating leases | $ | $ | |||||||||
Operating cash flows for finance leases | |||||||||||
Financing cash flows for finance leases | |||||||||||
Right-of-use assets obtained in exchange for lease obligations: | |||||||||||
Operating leases | |||||||||||
Finance leases |
March 31, 2024 | December 31, 2023 | ||||||||||
Operating Leases | |||||||||||
Operating lease right-of-use assets | $ | $ | |||||||||
Current maturities of lease liabilities | |||||||||||
Finance and operating lease liabilities | |||||||||||
Total operating lease liabilities | $ | $ | |||||||||
Finance Leases | |||||||||||
Property and equipment, at cost | $ | $ | |||||||||
Accumulated depreciation | ( | ( | |||||||||
Property and equipment, net | $ | $ | |||||||||
Current maturities of lease liabilities | $ | $ | |||||||||
Finance and operating lease liabilities | |||||||||||
Total finance lease liabilities | $ | $ |
Operating Leases | Finance Leases | ||||||||||
2024 (excluding the three months ended March 31, 2024) | $ | $ | |||||||||
2025 | |||||||||||
2026 | |||||||||||
2027 | |||||||||||
2028 | |||||||||||
2029 and thereafter | |||||||||||
Total payments | $ | $ | |||||||||
Less imputed interest | ( | ( | |||||||||
Total | $ | $ |
Three Months Ended March 31, | |||||||||||
2024 | 2023 | ||||||||||
Open ablation | $ | $ | |||||||||
Minimally invasive ablation | |||||||||||
Pain management | |||||||||||
Total ablation | $ | $ | |||||||||
Appendage management | |||||||||||
Total United States | $ | $ |
Three Months Ended March 31, | |||||||||||
2024 | 2023 | ||||||||||
Open ablation | $ | $ | |||||||||
Minimally invasive ablation | |||||||||||
Pain management | |||||||||||
Total ablation | $ | $ | |||||||||
Appendage management | |||||||||||
Total International | $ | $ |
Three Months Ended March 31, | |||||||||||
2024 | 2023 | ||||||||||
United States | $ | $ | |||||||||
Europe | |||||||||||
Asia Pacific | |||||||||||
Other International | |||||||||||
Total International | |||||||||||
Total Revenue | $ | $ |
Three Months Ended March 31, | |||||||||||
2024 | 2023 | ||||||||||
Cost of revenue | $ | $ | |||||||||
Research and development expenses | |||||||||||
Selling, general and administrative expenses | |||||||||||
Total | $ | $ |
Three Months Ended March 31, | |||||||||||
2024 | 2023 | ||||||||||
Total accumulated other comprehensive loss at beginning of period | $ | ( | $ | ( | |||||||
Unrealized Gains (Losses) on Investments | |||||||||||
Balance at beginning of period | $ | ( | $ | ( | |||||||
Other comprehensive income before reclassifications | |||||||||||
Balance at end of period | $ | ( | $ | ( | |||||||
Foreign Currency Translation Adjustment | |||||||||||
Balance at beginning of period | $ | ( | $ | ( | |||||||
Other comprehensive (loss) income before reclassifications | ( | ||||||||||
Amounts reclassified to other income (expense) | ( | ||||||||||
Balance at end of period | $ | ( | $ | ( | |||||||
Total accumulated other comprehensive loss at end of period | $ | ( | $ | ( |
Three Months Ended March 31, | |||||||||||||||||||||||
2024 | 2023 | ||||||||||||||||||||||
Amount | % of Revenues | Amount | % of Revenues | ||||||||||||||||||||
Revenue | $ | 108,851 | 100.0 | % | $ | 93,494 | 100.0 | % | |||||||||||||||
Cost of revenue | 27,583 | 25.3 | 23,885 | 25.5 | |||||||||||||||||||
Gross profit | 81,268 | 74.7 | 69,609 | 74.5 | |||||||||||||||||||
Operating expenses: | |||||||||||||||||||||||
Research and development expenses | 19,845 | 18.2 | 15,327 | 16.4 | |||||||||||||||||||
Selling, general and administrative expenses | 72,340 | 66.5 | 60,064 | 64.2 | |||||||||||||||||||
Total operating expenses | 92,185 | 84.7 | 75,391 | 80.6 | |||||||||||||||||||
Loss from operations | (10,917) | (10.0) | (5,782) | (6.2) | |||||||||||||||||||
Other expense, net: | (2,169) | (2.0) | (616) | (0.7) | |||||||||||||||||||
Loss before income tax expense | (13,086) | (12.0) | (6,398) | (6.8) | |||||||||||||||||||
Income tax expense | 183 | 0.2 | 78 | 0.1 | |||||||||||||||||||
Net loss | $ | (13,269) | (12.2) | % | $ | (6,476) | (7.0) | % |
Three Months Ended March 31, | Change | ||||||||||||||||||||||
2024 | 2023 | Amount | % | ||||||||||||||||||||
Open ablation | $ | 29,300 | $ | 25,142 | $ | 4,158 | 16.5 | % | |||||||||||||||
Minimally invasive ablation | 12,318 | 9,637 | 2,681 | 27.8 | |||||||||||||||||||
Pain management | 12,739 | 11,068 | 1,671 | 15.1 | |||||||||||||||||||
Appendage management | 35,892 | 32,342 | 3,550 | 11.0 | |||||||||||||||||||
Total United States | $ | 90,249 | $ | 78,189 | $ | 12,060 | 15.4 | ||||||||||||||||
Total International | 18,602 | 15,305 | 3,297 | 21.5 | |||||||||||||||||||
Total revenue | $ | 108,851 | $ | 93,494 | $ | 15,357 | 16.4 | % |
Three Months Ended March 31, | |||||||||||
2024 | 2023 | Change | |||||||||
(dollars in thousands) | |||||||||||
Net cash used in operating activities | $ | (21,016) | $ | (4,079) | $ | 16,937 | |||||
Net cash provided by investing activities | 9,644 | 28,813 | (19,169) | ||||||||
Net cash used in financing activities | (7,862) | (5,517) | 2,345 |
Exhibit No. | Description | ||||
10.1# | |||||
10.2# | |||||
31.1 | |||||
31.2 | |||||
32.1 | |||||
32.2 | |||||
101.INS | XBRL Instance Document | ||||
101.SCH | XBRL Taxonomy Extension Schema Document | ||||
101.CAL | XBRL Taxonomy Extension Calculation Linkbase Document | ||||
101.DEF | XBRL Taxonomy Definition Linkbase Document | ||||
101.LAB | XBRL Taxonomy Extension Label Linkbase Document | ||||
101.PRE | XBRL Taxonomy Extension Presentation Linkbase Document | ||||
104 | Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101) |
AtriCure, Inc. | |||||
(REGISTRANT) | |||||
Date: May 2, 2024 | /s/ Michael H. Carrel | ||||
Michael H. Carrel | |||||
President and Chief Executive Officer (Principal Executive Officer) | |||||
Date: May 2, 2024 | /s/ Angela L. Wirick | ||||
Angela L. Wirick | |||||
Chief Financial Officer (Principal Accounting and Financial Officer) |
By: | ||||||||
By: | ||||||||
Possible Payout as a Percentage of Target Award | |||||
2024-2026 | |||||
Payout Range* | 0% - 300% | ||||
Scheduled Vest Date** | December 31, 2026 | ||||
*Payout as a percentage of target number of shares of Performance Stock subject to this award. ** Subject to Section 1(a) of the Agreement, Scheduled Vest Date is later of date indicated or the date the Committee determines whether and the extent to which the performance criteria have been satisfied and the number of shares of Performance Stock earned, if any. |
Revenue CAGR Component (75%) | |||||||||||
• Revenue compound annual growth rate (CAGR) | |||||||||||
• Acquisitions and other business developments may result in adjustments pursuant to Section 8 of the Agreement | |||||||||||
Revenue CAGR | |||||||||||
2024-2026 | Payout* | Number of Shares of Performance Stock | |||||||||
Maximum | >=26% | 300% | |||||||||
Stretch | 20% | 200% | |||||||||
Target | 16% | 100% | |||||||||
Threshold | 14% | 50% | |||||||||
Below Threshold | <14% | 0% | 0 | ||||||||
*Payout as a percentage of target number of shares of Performance Stock subject to this award; linear interpolation between goals |
Relative Total Shareholder Return (TSR) Component (25%) | |||||||||||
•TSR measured against the Nasdaq Health Care Index constituents | |||||||||||
•TSR will be measured as the 20-trading-day average stock price prior to the end of the performance period over the 20-trading-day average stock price prior to the beginning of the performance period | |||||||||||
•Payout under this component will be capped at target if AtriCure’s TSR is negative | |||||||||||
Relative TSR (expressed in percentiles) | |||||||||||
2024-2026 | Payout* | Number of Performance Shares | |||||||||
Maximum | >=90th | 300% | |||||||||
Stretch | 75th | 200% | |||||||||
Target | 55th | 100% | |||||||||
Threshold | 30th | 50% | |||||||||
Below Threshold | <30th | 0% | 0 | ||||||||
*Payout as a percentage of target number of Performance Shares subject to this award; linear interpolation between goals |
Performance Unit Grant | |||||||||||||||||||||||
Measurement Periods | |||||||||||||||||||||||
Grant Date Price | Tranche | Payout % of Performance Award | Performance Unit Payout | March 1, 2026 | March 1, 2027 | March 1, 2028 | |||||||||||||||||
$36.28 | Tranche 1 | 10% | $50.00 | n/a | n/a | ||||||||||||||||||
Tranche 2 | 20% | n/a | $62.50 | n/a | |||||||||||||||||||
20% | n/a | $75.00 | n/a | ||||||||||||||||||||
Tranche 3 | 25% | n/a | n/a | $87.50 | |||||||||||||||||||
25% | n/a | n/a | $100.00 |
Date: May 2, 2024 | ||||||||
By: | /s/ Michael H. Carrel | |||||||
Michael H. Carrel | ||||||||
President and Chief Executive Officer | ||||||||
(Principal Executive Officer) |
Date: May 2, 2024 | ||||||||
By: | /s/ Angela L. Wirick | |||||||
Angela L. Wirick | ||||||||
Chief Financial Officer | ||||||||
(Principal Accounting and Financial Officer) |
Date: May 2, 2024 | ||||||||
By: | /s/ Michael H. Carrel | |||||||
Michael H. Carrel | ||||||||
President and Chief Executive Officer | ||||||||
(Principal Executive Officer) |
Date: May 2, 2024 | ||||||||
By: | /s/ Angela L. Wirick | |||||||
Angela L. Wirick | ||||||||
Chief Financial Officer | ||||||||
(Principal Accounting and Financial Officer) |
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) shares in Thousands, $ in Thousands |
Mar. 31, 2024 |
Dec. 31, 2023 |
---|---|---|
Statement of Financial Position [Abstract] | ||
Accounts receivable, allowance for credit losses | $ 350 | $ 500 |
Common stock, par value (in usd per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized (in shares) | 90,000 | 90,000 |
Common stock, shares issued (in shares) | 48,381 | 47,526 |
Common stock, shares outstanding (in shares) | 48,381 | 47,526 |
Description of Business and Summary of Significant Accounting Policies |
3 Months Ended |
---|---|
Mar. 31, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Description of Business and Summary of Significant Accounting Policies | DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Nature of the Business—The “Company” or “AtriCure” consists of AtriCure, Inc. and its wholly-owned subsidiaries. The Company is a leading innovator in surgical treatments and therapies for atrial fibrillation (Afib), left atrial appendage (LAA) management and post-operative pain management, and sells its products to medical centers globally through its direct sales force and distributors. Basis of Presentation—The accompanying interim financial statements have been prepared in accordance with the rules and regulations of the Securities and Exchange Commission (SEC). All intercompany accounts and transactions have been eliminated in consolidation. The accompanying interim financial statements are unaudited, but in the opinion of the Company’s management, contain all normal, recurring adjustments considered necessary to present fairly the financial position, results of operations and cash flows for the periods presented in conformity with accounting principles generally accepted in the United States of America (GAAP) applicable to interim periods. Certain information and footnote disclosures included in annual financial statements prepared in accordance with GAAP have been omitted or condensed. The Company believes the disclosures herein are adequate to make the information presented not misleading. Results of operations are not necessarily indicative of the results expected for the full year or for any future period. The accompanying interim financial statements should be read in conjunction with the Company’s audited financial statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023 filed with the SEC. There have been no changes in the Company's significant accounting policies for the three months ended March 31, 2024 as compared to the significant accounting policies described in the Company's Annual Report on Form 10-K for the year ended December 31, 2023. Use of Estimates—The preparation of the financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, including inventories, intangible assets, valuation allowance for deferred income tax assets, disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expense, including share-based compensation expense. Estimates are based on historical experience, where applicable, and other reasonable assumptions. Actual results could differ from those estimates. Segments—The Company's chief operating decision maker is its Chief Executive Officer, who reviews financial information presented on a consolidated basis, accompanied only by revenue information by product type and geographic area, for purposes of allocating resources and evaluating financial performance. Accordingly, the Company has determined that it has a single operating segment. The Company’s long-lived assets are located in the United States, except for $3,625 as of March 31, 2024 and $3,432 as of December 31, 2023 located primarily in Europe. Earnings Per Share—Basic and diluted net loss per share are computed by dividing the net loss by the weighted average number of common shares outstanding during the period. Since the Company has experienced net losses for all periods presented, net loss per share excludes the effect of 2,615 and 1,882 shares as of March 31, 2024 and 2023 because they are anti-dilutive. Therefore, the number of shares used for basic and diluted net loss per share are the same.
|
Fair Value |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value | FAIR VALUE The Financial Accounting Standards Board’s (FASB) Accounting Standards Codification (ASC) 820, “Fair Value Measurements and Disclosures” (ASC 820), defines fair value as the exchange price that would be received for an asset or paid to settle a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs. The fair value hierarchy is based on three levels of inputs, of which the first two are considered observable and the last unobservable, that may be used to measure fair value: •Level 1—Quoted prices in active markets for identical assets or liabilities. •Level 2—Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. •Level 3—Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. The following table represents the Company’s fair value hierarchy for its financial assets measured at fair value on a recurring basis as of March 31, 2024:
There were no changes in the levels or methodology of measurement of financial assets and liabilities during the three months ended March 31, 2024. The following table represents the Company’s fair value hierarchy for its financial assets measured at fair value on a recurring basis as of December 31, 2023:
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Investments |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investments, Debt and Equity Securities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investments | INVESTMENTS Investments as of March 31, 2024 consisted of the following:
Investments as of December 31, 2023 consisted of the following:
The gross realized gains or losses from sales of available-for-sale investments were not significant in the three months ended March 31, 2024 and 2023. The cost and fair value of investments in debt securities, by contractual maturity, as of March 31, 2024 were as follows:
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Inventories |
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Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventory Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventories | INVENTORIES Inventories consist of the following:
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Intangible Assets |
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Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Intangible Assets | INTANGIBLE ASSETS The following table provides a summary of the Company’s intangible assets:
The following table summarizes the allocation of amortization expense of intangible assets:
Future amortization expense is projected as follows:
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Accrued Liabilities |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Payables and Accruals [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accrued Liabilities | ACCRUED LIABILITIES Accrued liabilities consist of the following:
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Indebtedness |
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Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||
Indebtedness | INDEBTEDNESS On January 5, 2024, the Company entered into a credit agreement (Credit Agreement) with JPMorgan Chase Bank, N.A., as administrative agent, and JPMorgan Chase Bank, N.A., as bookrunner and lead arranger (JPMCB), and Silicon Valley Bank, a Division of First-Citizens Bank & Trust Company, as Joint Lead Arrangers and Joint Bookrunners, and the lenders party thereto (Lenders). The Credit Agreement provides for an asset based revolving credit facility (ABL Facility) in an amount of up to $125,000. Borrowing availability under the ABL Facility is based on the lesser of $125,000 or a borrowing base calculation as defined by the Credit Agreement. The Company may request an increase in the revolving commitment by up to $40,000 (not to exceed a total of $165,000). A portion of the ABL Facility, limited to $5,000, is available for the issuance of letters of credit by JPMCB or other financial institutions. JPMCB in its sole discretion, may create swingline loans by advancing floating rate revolving loans requested. Any such swingline loans will reduce availability under the ABL Facility on a dollar-for-dollar basis. At closing, the Company borrowed $61,865. The proceeds of the ABL Facility were used to terminate the Company’s outstanding indebtedness and final fee under the Loan and Security Agreement with Silicon Valley Bank (SVB Loan Agreement). Certain prepayment and early termination fees under the SVB Loan Agreement were waived at termination. The termination of the SVB Loan Agreement was treated as a debt extinguishment and the resulting loss on debt extinguishment is $1,362. As of March 31, 2024, the Company had borrowings of $61,865 and had borrowing capacity of $61,885 under the ABL facility. The Credit Agreement has a three-year term, and all outstanding borrowings are due upon maturity of the Credit Agreement on January 5, 2027. Through January 2025, the Company's required minimum utilization of the ABL facility is 40% of the aggregate revolving commitment or $50,000. Subject to customary exceptions and restrictions, the Company may voluntarily prepay outstanding amounts under the ABL Facility at any time thereafter without premium or penalty. Any voluntary prepayments made will not reduce commitments under the ABL Facility. The Credit Agreement contains mandatory prepayment provisions which require prepayment of amounts outstanding under the ABL Facility upon specified events or Availability shortfall. Future maturities of long-term debt are projected as follows:
The ABL Facility is subject to a facility fee of 0.37% per annum of the daily available revolving commitment and paid on a quarterly basis. Outstanding amounts under the Credit Agreement bear interest at a rate per annum equal to, at the Company's election: (i) an alternate base rate (ABR) plus an applicable margin or (ii) an adjusted term secured overnight financing rate (SOFR) plus an applicable margin. All swingline loans bear interest at a rate per annum equal to the ABR plus the applicable margin under the Credit Agreement. Alternate base rate is equal to the greater of Prime, the NYFRB Rate plus 0.50% or Adjusted Term SOFR Rate plus 1.00%. The applicable margin on borrowings will adjust ranging 1.50% to 1.75% per annum for ABR borrowings and from 2.50% to 2.75% per annum for SOFR term borrowings determined by the average historical excess availability. Participation and fronting fees are accrued and paid on a quarterly basis. The ABL Facility is secured by the assets of the Company, consisting of personal, tangible or intangible property, including certain outstanding equity interests of the Company’s direct subsidiaries, subject to limitations specified in the Credit Agreement. The Credit Agreement contains customary representations and warranties, events of default and financial, affirmative and negative covenants for facilities of this type, including but not limited to financial covenants relating to a fixed charge coverage ratio, a minimum liquidity requirement and a minimum excess availability requirement, and restrictions on indebtedness, liens, investments and acquisitions, asset dispositions, specified agreements, restricted payments and prepayment of certain indebtedness.
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Leases |
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Leases [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leases | LEASES The Company has operating and finance leases for office, manufacturing and warehouse facilities and automobiles. The Company’s leases have remaining lease terms of less than one year to nine years. Options to renew or extend leases beyond their initial term have been excluded from measurement of the right-of-use (ROU) assets and lease liabilities as exercise is not reasonably certain. The weighted average remaining lease term and the discount rate for the reporting periods are as follows:
A letter of credit for $1,250 issued to the lessor of the Company's corporate headquarters building is renewed annually and remains outstanding as of March 31, 2024. The components of lease expense are as follows:
Short-term lease expense was not significant for the three months ended March 31, 2024 and 2023. Supplemental cash flow information related to leases is as follows:
Supplemental balance sheet information related to leases is as follows:
Future maturities of lease liabilities as of March 31, 2024 are as follows:
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Leases | LEASES The Company has operating and finance leases for office, manufacturing and warehouse facilities and automobiles. The Company’s leases have remaining lease terms of less than one year to nine years. Options to renew or extend leases beyond their initial term have been excluded from measurement of the right-of-use (ROU) assets and lease liabilities as exercise is not reasonably certain. The weighted average remaining lease term and the discount rate for the reporting periods are as follows:
A letter of credit for $1,250 issued to the lessor of the Company's corporate headquarters building is renewed annually and remains outstanding as of March 31, 2024. The components of lease expense are as follows:
Short-term lease expense was not significant for the three months ended March 31, 2024 and 2023. Supplemental cash flow information related to leases is as follows:
Supplemental balance sheet information related to leases is as follows:
Future maturities of lease liabilities as of March 31, 2024 are as follows:
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Commitments and Contingencies |
3 Months Ended |
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Mar. 31, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | COMMITMENTS AND CONTINGENCIES License Agreement. The Company had been a party to a license agreement that required royalty payments of 5% of specified product sales. In May 2023, the Company entered into an agreement that terminated the license agreement and the Company's obligations to make royalty payments under the license agreement. Royalty expense of $0 and $901 was recorded for the three months ended March 31, 2024 and 2023 as a component of Cost of Revenue in the accompanying Condensed Consolidated Statement of Operations. Purchase Agreements. The Company enters into standard purchase agreements with suppliers in the ordinary course of business, generally with terms that allow cancellation. Legal. The Company may, from time to time, become a party to legal proceedings. Such matters are subject to many uncertainties and to outcomes of which the financial impacts are not predictable with assurance and that may not be known for extended periods of time. A liability is established once management determines a loss is probable and an amount can be reasonably estimated. The Company recognizes income from a favorable resolution of legal proceedings when the associated cash or assets are received. The Company received a Civil Investigative Demand (CID) from the U.S. Department of Justice (USDOJ) in December 2017 stating that it is investigating the Company to determine whether the Company has violated the False Claims Act, relating to the promotion of certain medical devices related to the treatment of atrial fibrillation for off-label use and submitted or caused to be submitted false claims to certain federal and state health care programs for medically unnecessary healthcare services related to the treatment of atrial fibrillation. The CID covers the period from January 2010 to December 2017 and required the production of documents and answers to written interrogatories. The Company had no knowledge of the investigation prior to receipt of the CID. The Company maintains rigorous policies and procedures to promote compliance with the False Claims Act and other applicable regulatory requirements. The Company provided the USDOJ with documents and answers to the written interrogatories. In March 2021, USDOJ informed the Company that its investigation was based on a lawsuit brought on behalf of the United States and various state and local governments under the qui tam provisions of federal and certain state and local False Claims Acts. Although the USDOJ and all of the state and local governments declined to intervene, the relator continues to pursue the case. During the third quarter of 2022, the relator filed a Fourth Amended Complaint, which dropped allegations of off-label promotion and alleges that the Company paid illegal kickbacks to healthcare providers in exchange for using or referring the Company’s products, in violation of the federal Anti-Kickback Statute and various comparable state and local laws. While the Company is contesting the case, it is not possible to predict when this matter may be resolved or what impact, if any, the outcome of this matter might have on our consolidated financial position, results of operations or cash flows. During the first quarter of 2023, the Company entered into a legal settlement for $7,500 in connection with the settlement of claims filed against a competitor. The Company recorded a $4,000 gain for the three months ended March 31, 2023 for the proceeds received as a reduction to selling, general and administrative expenses.
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Revenue |
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Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue | REVENUE The Company develops, manufactures and sells devices designed primarily for surgical ablation of cardiac tissue, exclusion of the left atrial appendage, and temporarily blocking pain by ablating peripheral nerves. These devices are marketed to a broad base of medical centers globally. The Company recognizes revenue when control of promised goods is transferred to customers in an amount that reflects the consideration the Company expects to be entitled to in exchange for those goods. United States revenue by product type is as follows:
International revenue by product type is as follows:
Revenue attributed to customer geographic locations is as follows:
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Income Tax Provision |
3 Months Ended |
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Mar. 31, 2024 | |
Income Tax Disclosure [Abstract] | |
Income Tax Provision | INCOME TAX PROVISION The Company files federal, state and foreign income tax returns in jurisdictions with varying statutes of limitations. The Company uses the asset and liability method to determine its provision for income taxes. The Company’s provision for income taxes in interim periods is computed by applying the discrete method and is based on financial results through the end of the interim period. The Company determined that using the discrete method is more appropriate than using the annual effective tax rate method. The Company is unable to estimate the annual effective tax rate with sufficient precision to use the effective tax rate method, which requires a full-year projection of income. The effective tax rate for the three months ended March 31, 2024 and 2023 was (1.4%) and (1.2%). The Company’s worldwide effective tax rate differs from the US statutory rate of 21% primarily due to valuation allowances. The Company's federal, state, local and foreign tax returns are routinely subject to review by various taxing authorities. The Company has not accrued any interest and penalties related to unrecognized income tax benefits as a result of offsetting net operating losses. However, if required, the Company will recognize interest and penalties within income tax expense and within the related tax liability.
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Equity Compensation Plans |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-Based Payment Arrangement [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity Compensation Plans | EQUITY COMPENSATION PLANS The Company has two share-based incentive plans: the 2023 Stock Incentive Plan (2023 Plan) and the 2018 Employee Stock Purchase Plan (ESPP). Stock Incentive Plan Under the 2023 Plan, the Board of Directors may grant restricted stock awards or restricted stock units (collectively RSAs), nonstatutory stock options, performance share awards (PSAs) or stock appreciation rights to Company employees, directors and consultants, and may grant incentive stock options to Company employees. The Compensation Committee of the Board of Directors, as the administrator of the 2023 Plan, has the authority to determine the terms of any awards, including the number of shares subject to each award, the exercisability of the awards and the form of consideration. As of March 31, 2024, 2,287 shares of common stock have been reserved for issuance under the 2023 Plan, and 869 shares were available for future grants. The Company issues registered shares of common stock for stock option exercises, restricted stock grants and performance share award payments. Employee Stock Purchase Plan Under the ESPP, shares of the Company’s common stock may be purchased at a discount (15%) to the lesser of the closing price of the Company’s common stock on the first or last trading day of the offering period. The offering period (currently six months) and the offering price are subject to change. Participants may not purchase more than $25 of the Company’s common stock in a calendar year or more than 3 shares during an offering period. As of March 31, 2024, there were 782 shares available for future issuance under the ESPP. Share-Based Compensation Expense Information The following table summarizes the allocation of share-based compensation expense:
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Comprehensive Loss and Accumulated Other Comprehensive Loss |
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Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Comprehensive Loss and Accumulated Other Comprehensive Loss | COMPREHENSIVE LOSS AND ACCUMULATED OTHER COMPREHENSIVE LOSS In addition to net losses, comprehensive loss includes foreign currency translation adjustments and unrealized gains (losses) on investments. Accumulated other comprehensive loss consisted of the following, net of tax:
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Pay vs Performance Disclosure - USD ($) $ in Thousands |
3 Months Ended | |
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Mar. 31, 2024 |
Mar. 31, 2023 |
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Pay vs Performance Disclosure | ||
Net loss | $ (13,269) | $ (6,476) |
Insider Trading Arrangements |
3 Months Ended |
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Mar. 31, 2024 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Description of Business and Summary of Significant Accounting Policies (Policy) |
3 Months Ended |
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Mar. 31, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Nature of the Business | Nature of the Business—The “Company” or “AtriCure” consists of AtriCure, Inc. and its wholly-owned subsidiaries. The Company is a leading innovator in surgical treatments and therapies for atrial fibrillation (Afib), left atrial appendage (LAA) management and post-operative pain management, and sells its products to medical centers globally through its direct sales force and distributors.
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Basis of Presentation | Basis of Presentation—The accompanying interim financial statements have been prepared in accordance with the rules and regulations of the Securities and Exchange Commission (SEC). All intercompany accounts and transactions have been eliminated in consolidation. The accompanying interim financial statements are unaudited, but in the opinion of the Company’s management, contain all normal, recurring adjustments considered necessary to present fairly the financial position, results of operations and cash flows for the periods presented in conformity with accounting principles generally accepted in the United States of America (GAAP) applicable to interim periods. Certain information and footnote disclosures included in annual financial statements prepared in accordance with GAAP have been omitted or condensed. The Company believes the disclosures herein are adequate to make the information presented not misleading. Results of operations are not necessarily indicative of the results expected for the full year or for any future period. The accompanying interim financial statements should be read in conjunction with the Company’s audited financial statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023 filed with the SEC. There have been no changes in the Company's significant accounting policies for the three months ended March 31, 2024 as compared to the significant accounting policies described in the Company's Annual Report on Form 10-K for the year ended December 31, 2023.
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Use of Estimates | Use of Estimates—The preparation of the financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, including inventories, intangible assets, valuation allowance for deferred income tax assets, disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expense, including share-based compensation expense. Estimates are based on historical experience, where applicable, and other reasonable assumptions. Actual results could differ from those estimates.
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Segments | Segments—The Company's chief operating decision maker is its Chief Executive Officer, who reviews financial information presented on a consolidated basis, accompanied only by revenue information by product type and geographic area, for purposes of allocating resources and evaluating financial performance. Accordingly, the Company has determined that it has a single operating segment. |
Earnings Per Share | Earnings Per Share—Basic and diluted net loss per share are computed by dividing the net loss by the weighted average number of common shares outstanding during the period. Since the Company has experienced net losses for all periods presented, net loss per share excludes the effect of 2,615 and 1,882 shares as of March 31, 2024 and 2023 because they are anti-dilutive. Therefore, the number of shares used for basic and diluted net loss per share are the same. |
Fair Value | FAIR VALUE The Financial Accounting Standards Board’s (FASB) Accounting Standards Codification (ASC) 820, “Fair Value Measurements and Disclosures” (ASC 820), defines fair value as the exchange price that would be received for an asset or paid to settle a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs. The fair value hierarchy is based on three levels of inputs, of which the first two are considered observable and the last unobservable, that may be used to measure fair value: •Level 1—Quoted prices in active markets for identical assets or liabilities. •Level 2—Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. •Level 3—Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities.
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Comprehensive Loss and Accumulated Other Comprehensive Loss | In addition to net losses, comprehensive loss includes foreign currency translation adjustments and unrealized gains (losses) on investments. |
Fair Value (Tables) |
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Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Financial Assets and Liabilities Measured at Fair Value on a Recurring Basis | The following table represents the Company’s fair value hierarchy for its financial assets measured at fair value on a recurring basis as of March 31, 2024:
The following table represents the Company’s fair value hierarchy for its financial assets measured at fair value on a recurring basis as of December 31, 2023:
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Investments (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investments, Debt and Equity Securities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Available-for-Sale Securities Reconciliation | Investments as of March 31, 2024 consisted of the following:
Investments as of December 31, 2023 consisted of the following:
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Debt Securities, Available-for-Sale | The cost and fair value of investments in debt securities, by contractual maturity, as of March 31, 2024 were as follows:
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Inventories (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventory Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Inventories | Inventories consist of the following:
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Intangible Assets (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Company's Intangible Assets | The following table provides a summary of the Company’s intangible assets:
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Finite-Lived Intangible Assets Amortization Expense | The following table summarizes the allocation of amortization expense of intangible assets:
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Future Amortization Expense Related to Intangible Assets | Future amortization expense is projected as follows:
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Accrued Liabilities (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Payables and Accruals [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accrued Liabilities | Accrued liabilities consist of the following:
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Indebtedness (Tables) |
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Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||
Future Maturities On Debt | Future maturities of long-term debt are projected as follows:
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Leases (Tables) |
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Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leases [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Weighted Average Remaining Lease Term and Discount Rate | The weighted average remaining lease term and the discount rate for the reporting periods are as follows:
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Summary of Components of Lease Expense | The components of lease expense are as follows:
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Summary of Supplemental Cash Flow Information Related to Leases | Supplemental cash flow information related to leases is as follows:
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Summary of Supplemental Balance Sheet Information Related to Leases | Supplemental balance sheet information related to leases is as follows:
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Schedule of Maturities of Lease Liabilities | Future maturities of lease liabilities as of March 31, 2024 are as follows:
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Revenue (Tables) |
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue By Product Type | United States revenue by product type is as follows:
International revenue by product type is as follows:
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Revenue By Geographic Area | Revenue attributed to customer geographic locations is as follows:
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Equity Compensation Plans (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-Based Payment Arrangement [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-Based Compensation Expense Related To Employee Share-Based Compensation | The following table summarizes the allocation of share-based compensation expense:
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Comprehensive Loss and Accumulated Other Comprehensive Loss (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Accumulated Other Comprehensive Income (Loss) | Accumulated other comprehensive loss consisted of the following, net of tax:
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Description of Business and Summary of Significant Accounting Policies (Narrative) (Details) - USD ($) shares in Thousands, $ in Thousands |
3 Months Ended | ||
---|---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
Dec. 31, 2023 |
|
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Shares not included in the computation of diluted earnings per share (in shares) | 2,615 | 1,882 | |
Europe | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Long-lived assets | $ 3,625 | $ 3,432 |
Fair Value (Narrative) (Details) - USD ($) |
Mar. 31, 2024 |
Dec. 31, 2023 |
---|---|---|
Contingent Consideration | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Remaining fair value | $ 0 | $ 0 |
Investments (Summary Of Short-term Investments) (Details) - USD ($) $ in Thousands |
3 Months Ended | 12 Months Ended |
---|---|---|
Mar. 31, 2024 |
Dec. 31, 2023 |
|
Summary of Investment Holdings [Line Items] | ||
Cost Basis | $ 41,251 | $ 53,775 |
Unrealized Losses | (261) | (800) |
Fair Value | 40,990 | 52,975 |
Corporate bonds | ||
Summary of Investment Holdings [Line Items] | ||
Cost Basis | 26,000 | 38,514 |
Unrealized Losses | (109) | (481) |
Fair Value | 25,891 | 38,033 |
Government and agency obligations | ||
Summary of Investment Holdings [Line Items] | ||
Cost Basis | 12,999 | 12,998 |
Unrealized Losses | (147) | (287) |
Fair Value | 12,852 | 12,711 |
Asset-backed securities | ||
Summary of Investment Holdings [Line Items] | ||
Cost Basis | 2,252 | 2,263 |
Unrealized Losses | (5) | (32) |
Fair Value | $ 2,247 | $ 2,231 |
Investments (Narrative) (Details) - USD ($) |
3 Months Ended | |
---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
|
Investments, Debt and Equity Securities [Abstract] | ||
Gain (loss) on investments | $ 0 | $ 0 |
Investments (Summary of Cost and Fair Value) (Details) $ in Thousands |
Mar. 31, 2024
USD ($)
|
---|---|
Amortized Cost | |
Due in 1 year or less | $ 38,999 |
Instruments not due at a single maturity date | 2,252 |
Total | 41,251 |
Fair Value | |
Due in 1 year or less | 38,743 |
Instruments not due at a single maturity date | 2,247 |
Total | $ 40,990 |
Inventories (Details) - USD ($) $ in Thousands |
Mar. 31, 2024 |
Dec. 31, 2023 |
---|---|---|
Inventory Disclosure [Abstract] | ||
Raw materials | $ 35,862 | $ 36,751 |
Work in process | 5,789 | 3,582 |
Finished goods | 30,294 | 27,564 |
Total | $ 71,945 | $ 67,897 |
Intangible Assets (Company's Intangible Assets) (Details) - USD ($) $ in Thousands |
Mar. 31, 2024 |
Dec. 31, 2023 |
---|---|---|
Finite-Lived Intangible Assets [Line Items] | ||
Cost | $ 76,470 | $ 76,470 |
Accumulated Amortization | 14,347 | 12,484 |
Technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Cost | 46,470 | 46,470 |
Accumulated Amortization | 10,822 | 10,084 |
Patents | ||
Finite-Lived Intangible Assets [Line Items] | ||
Cost | 30,000 | 30,000 |
Accumulated Amortization | $ 3,525 | $ 2,400 |
Intangible Assets (Disaggregation of Amortization Expense) (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
|
Finite-Lived Intangible Assets [Line Items] | ||
Amortization of intangible assets | $ 1,863 | $ 738 |
Cost of revenue | ||
Finite-Lived Intangible Assets [Line Items] | ||
Amortization of intangible assets | 1,125 | 0 |
Selling, general and administrative expenses | ||
Finite-Lived Intangible Assets [Line Items] | ||
Amortization of intangible assets | $ 738 | $ 738 |
Intangible Assets (Future Amortization Expense Related To Intangible Assets With Definite Lives) (Details) $ in Thousands |
Mar. 31, 2024
USD ($)
|
---|---|
Goodwill and Intangible Assets Disclosure [Abstract] | |
2024 (excluding the three months ended March 31, 2024) | $ 5,590 |
2025 | 8,353 |
2026 | 9,553 |
2027 | 10,453 |
2028 | 6,553 |
2029 and thereafter | 21,621 |
Total | $ 62,123 |
Accrued Liabilities (Details) - USD ($) $ in Thousands |
Mar. 31, 2024 |
Dec. 31, 2023 |
---|---|---|
Payables and Accruals [Abstract] | ||
Accrued compensation and employee-related expenses | $ 24,271 | $ 39,425 |
Sales returns and allowances | 2,749 | 2,503 |
Other accrued liabilities | 2,699 | 2,754 |
Total | $ 29,719 | $ 44,682 |
Indebtedness (Future Maturities On Debt) (Details) $ in Thousands |
Mar. 31, 2024
USD ($)
|
---|---|
Debt Disclosure [Abstract] | |
2024 (excluding the three months ended March 31, 2024) | $ 0 |
2025 | 0 |
2026 | 0 |
2027 | 61,865 |
2028 | 0 |
Total long-term debt, of which $61,865 is noncurrent | 61,865 |
Long term debt excluding current maturities and fees | $ 61,865 |
Leases (Narrative) (Details) $ in Thousands |
Mar. 31, 2024
USD ($)
|
---|---|
Lessee, Lease, Description [Line Items] | |
Letter of credit outstanding | $ 1,250 |
Minimum | |
Lessee, Lease, Description [Line Items] | |
Remaining lease terms (in years) | 1 year |
Maximum | |
Lessee, Lease, Description [Line Items] | |
Remaining lease terms (in years) | 9 years |
Leases (Summary Of Weighted Average Remaining Lease Term And Discount Rate) (Details) |
Mar. 31, 2024 |
Dec. 31, 2023 |
---|---|---|
Operating Leases | ||
Weighted average remaining lease term (years) | 4 years 7 months 6 days | 4 years 9 months 18 days |
Weighted average discount rate | 5.89% | 5.75% |
Finance Leases | ||
Weighted average remaining lease term (years) | 6 years 4 months 24 days | 6 years 8 months 12 days |
Weighted average discount rate | 6.93% | 6.93% |
Leases (Summary Of Components Of Lease Expense) (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
|
Leases [Abstract] | ||
Operating lease cost | $ 380 | $ 310 |
Finance lease cost: | ||
Amortization of right-of-use assets | 255 | 255 |
Interest on lease liabilities | 157 | 175 |
Total finance lease cost | $ 412 | $ 430 |
Leases (Summary Of Supplemental Cash Flow Information Related To Leases) (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
|
Cash paid for amounts included in the measurement of lease liabilities: | ||
Operating cash flows for operating leases | $ 393 | $ 317 |
Operating cash flows for finance leases | 158 | 175 |
Financing cash flows for finance leases | 264 | 240 |
Right-of-use assets obtained in exchange for lease obligations: | ||
Operating leases | 235 | 1,061 |
Finance leases | $ 0 | $ 0 |
Leases (Summary Of Supplemental Balance Sheet Information Related To Leases) (Details) - USD ($) $ in Thousands |
Mar. 31, 2024 |
Dec. 31, 2023 |
---|---|---|
Operating Leases | ||
Operating lease right-of-use assets | $ 4,199 | $ 4,324 |
Current maturities of lease liabilities | 1,451 | 1,447 |
Operating lease liabilities | 3,164 | 3,307 |
Total operating lease liabilities | 4,615 | 4,754 |
Finance Leases | ||
Property and equipment, at cost | 14,620 | 14,620 |
Accumulated depreciation | (8,360) | (8,105) |
Property and equipment, net | 6,260 | 6,515 |
Current maturities of lease liabilities | 1,091 | 1,086 |
Finance and operating lease liabilities | 7,792 | 8,061 |
Total finance lease liabilities | $ 8,883 | $ 9,147 |
Leases (Schedule Of Maturities Of Lease Liabilities) (Details) - USD ($) $ in Thousands |
Mar. 31, 2024 |
Dec. 31, 2023 |
---|---|---|
Operating Leases | ||
2024 (excluding the three months ended March 31, 2024) | $ 1,103 | |
2025 | 1,237 | |
2026 | 903 | |
2027 | 897 | |
2028 | 489 | |
2029 and thereafter | 751 | |
Total payments | 5,380 | |
Less imputed interest | (765) | |
Total | 4,615 | $ 4,754 |
Finance Leases | ||
2024 (excluding the three months ended March 31, 2024) | 1,267 | |
2025 | 1,638 | |
2026 | 1,671 | |
2027 | 1,703 | |
2028 | 1,725 | |
2029 and thereafter | 3,099 | |
Total payments | 11,103 | |
Less imputed interest | (2,220) | |
Total | $ 8,883 | $ 9,147 |
Commitments and Contingencies (Narrative) (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
|
Loss Contingencies [Line Items] | ||
Royalty rates (in percent) | 5.00% | |
Royalty expense | $ 0 | $ 901 |
AtriCure Versus Competitor | ||
Loss Contingencies [Line Items] | ||
Gain (loss) related to litigation settlement | 4,000 | |
Pending Litigation | AtriCure Versus Competitor | ||
Loss Contingencies [Line Items] | ||
Total amount awarded | $ 7,500 |
Revenue (Revenue By Geographic Area) (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
|
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Revenue | $ 108,851 | $ 93,494 |
United States | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Revenue | 90,249 | 78,189 |
Europe | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Revenue | 11,348 | 9,401 |
Asia Pacific | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Revenue | 6,281 | 5,402 |
Other International | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Revenue | 973 | 502 |
Total International | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Revenue | $ 18,602 | $ 15,305 |
Income Tax Provision (Narrative) (Details) |
3 Months Ended | |
---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
|
Income Tax Disclosure [Abstract] | ||
Effective tax rate (in percent) | (1.40%) | (1.20%) |
Equity Compensation Plans (Narrative) (Details) shares in Thousands, $ in Thousands |
3 Months Ended |
---|---|
Mar. 31, 2024
USD ($)
plan
shares
| |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of share-based incentive plans (in shares) | plan | 2 |
Offering period | 6 months |
Participants purchase limit shares (in shares) | 3 |
2023 Plan | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Common stock reserved for issuance (in shares) | 2,287 |
Shares available for future grants (in shares) | 869 |
2008 Employee Stock Purchase Plan | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Company's common stock may be purchased at a discount (percent) | 15.00% |
Participants purchase limit value | $ | $ 25 |
Additional shares authorized (in shares) | 782 |
Equity Compensation Plans (Share-Based Compensation Expense Related To Employee Share-Based Compensation) (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
|
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Total | $ 9,265 | $ 8,760 |
Cost of revenue | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Total | 530 | 443 |
Research and development expenses | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Total | 1,619 | 1,304 |
Selling, general and administrative expenses | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Total | $ 7,116 | $ 7,013 |
Comprehensive Loss and Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
|
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning Balance | $ 466,168 | $ 456,754 |
Ending Balance | 456,313 | 454,845 |
Accumulated Other Comprehensive Income (Loss) | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning Balance | (993) | (4,096) |
Ending Balance | (697) | (3,072) |
Unrealized Gains (Losses) on Investments | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning Balance | (800) | (3,698) |
Other comprehensive income before reclassifications | 539 | 1,041 |
Ending Balance | (261) | (2,657) |
Foreign Currency Translation Adjustment | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning Balance | (193) | (398) |
Other comprehensive income before reclassifications | (262) | 125 |
Amounts reclassified to other income (expense) | 19 | (142) |
Ending Balance | $ (436) | $ (415) |
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