What changed in this filing

/stocks — the workspaceLOADING

Item 1. Financial Statements

2022-11-02 compared with 2022-08-03 · 127 added, 83 removed, 394 unchanged (35% of the section changed)

4 unchanged sentences

(In Thousands, Except Per Share Amounts)

September 30,

2022 December 31,

36 unchanged sentences

AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE (LOSS) INCOME

(In Thousands, Except Per Share Amounts)

Three Months Ended

June 30, Six Months Ended

September 30, Nine Months Ended

September 30,

2022 2021 2022 2021

2 unchanged sentences

Gross profit 61,713 52,226 180,827 150,844

Operating expenses:

Operating expenses (benefit):

Research and development expenses 15,169 11,284 43,589 34,698

Selling, general and administrative expenses 57,267 49,873 175,771 150,939

Total operating expenses 77,179 69,155 146,924 129,580

Loss from operations ( 13,660 ) ( 15,077 ) ( 27,810 ) ( 30,962 )

Change in fair value of contingent consideration — ( 189,900 ) — ( 184,800 )

Intangible asset impairment — 82,300 — 82,300

Total operating expenses (benefit) 72,436 ( 46,443 ) 219,360 83,137

(Loss) income from operations ( 10,723 ) 98,669 ( 38,533 ) 67,707

Other income (expense):

2 unchanged sentences

Other ( 549 ) ( 191 ) ( 753 ) ( 151 )

Loss before income tax expense ( 14,796 ) ( 16,185 ) ( 29,923 ) ( 33,071 )

(Loss) income before income tax expense ( 12,226 ) 97,146 ( 42,149 ) 64,075

Income tax expense 46 38 147 135

Net loss $ ( 14,841 ) $ ( 16,251 ) $ ( 30,024 ) $ ( 33,168 )

Basic and diluted net loss per share $ ( 0.32 ) $ ( 0.36 ) $ ( 0.66 ) $ ( 0.74 )

Weighted average shares outstanding—basic and diluted 45,692 45,035 45,610 44,834

Comprehensive loss:

Net (loss) income $ ( 12,272 ) $ 97,108 $ ( 42,296 ) $ 63,940

Net (loss) income per share

Basic net (loss) income per share $ ( 0.27 ) $ 2.15 $ ( 0.93 ) $ 1.42

Diluted net (loss) income per share $ ( 0.27 ) $ 2.11 $ ( 0.93 ) $ 1.39

Weighted average shares outstanding

Basic 45,823 45,258 45,682 44,977

Diluted 45,823 46,100 45,682 45,996

Comprehensive (loss) income:

Unrealized loss on investments $ ( 691 ) $ ( 14 ) $ ( 3,479 ) $ ( 177 )

1 unchanged sentence

Other comprehensive loss ( 951 ) ( 126 ) ( 4,347 ) ( 525 )

Net loss ( 14,841 ) ( 16,251 ) ( 30,024 ) ( 33,168 )

Comprehensive loss, net of tax $ ( 15,720 ) $ ( 16,320 ) $ ( 33,420 ) $ ( 33,567 )

Net (loss) income ( 12,272 ) 97,108 ( 42,296 ) 63,940

Comprehensive (loss) income, net of tax $ ( 13,223 ) $ 96,982 $ ( 46,643 ) $ 63,415

See accompanying notes to condensed consolidated financial statements.

3 unchanged sentences

(In Thousands)

Three-Month Period Ended June 30, 2021

Three-Month Period Ended September 30, 2021

Deficit Accumulated

2 unchanged sentences

Stockholders’

Balance—March 31, 2021

Balance—June 30, 2021

45,881 $ 46 $ 748,644 $ ( 363,520 ) $ ( 87 ) $ 385,083

1 unchanged sentence

Other comprehensive loss — — — — ( 126 ) ( 126 )

Net loss — — — ( 16,251 ) — ( 16,251 )

Balance—June 30, 2021

Net income — — — 97,108 — 97,108

Balance—September 30, 2021

45,933 $ 46 $ 755,048 $ ( 266,412 ) $ ( 213 ) $ 488,469

Three-Month Period Ended June 30, 2022

Three-Month Period Ended September 30, 2022

Deficit Accumulated

2 unchanged sentences

Stockholders’

Balance—March 31, 2022

Balance—June 30, 2022

46,423 $ 46 $ 771,185 $ ( 310,177 ) $ ( 4,344 ) $ 456,710

2 unchanged sentences

Net loss — — — ( 12,272 ) — ( 12,272 )

Balance—June 30, 2022

Balance—September 30, 2022

46,443 $ 46 $ 778,006 $ ( 322,449 ) $ ( 5,295 ) $ 450,308

Six-Month Period Ended June 30, 2021

Nine-Month Period Ended September 30, 2021

Deficit Accumulated

6 unchanged sentences

Other comprehensive loss — — — — ( 525 ) ( 525 )

Net loss — — — ( 33,168 ) — ( 33,168 )

Balance—June 30, 2021

Net income — — — 63,940 — 63,940

Balance—September 30, 2021

45,933 $ 46 $ 755,048 $ ( 266,412 ) $ ( 213 ) $ 488,469

Six-Month Period Ended June 30, 2022

Nine-Month Period Ended September 30, 2022

Deficit Accumulated

7 unchanged sentences

Net loss — — — ( 42,296 ) — ( 42,296 )

Balance—June 30, 2022

Balance—September 30, 2022

46,443 $ 46 $ 778,006 $ ( 322,449 ) $ ( 5,295 ) $ 450,308

4 unchanged sentences

(In Thousands)

Six Months Ended

Nine Months Ended

September 30,

Cash flows from operating activities:

Net loss $ ( 30,024 ) $ ( 33,168 )

Net income (loss) $ ( 42,296 ) $ 63,940

Adjustments to reconcile net loss to net cash used in operating activities:

6 unchanged sentences

Change in fair value of contingent consideration — ( 184,800 )

Intangible asset impairment — 82,300

Other non-cash adjustments 1,424 896

13 unchanged sentences

Cash flows from financing activities:

Payments on leases ( 437 ) ( 399 )

Payments on debt and leases ( 662 ) ( 2,269 )

Proceeds from stock option exercises and employee stock purchase plan 3,757 10,020

2 unchanged sentences

Effect of exchange rate changes on cash and cash equivalents ( 607 ) ( 255 )

Net increase in cash and cash equivalents 10,902 25,675

Net increase (decrease) in cash and cash equivalents 5,169 ( 2,058 )

Cash and cash equivalents—beginning of period 43,654 41,944

21 unchanged sentences

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, 2021 filed with the SEC.

There have been no changes in the Company's significant accounting policies for the six months ended June 30, 2022 as compared to the significant accounting policies described in the Company's Annual Report on Form 10-K for the year ended December 31, 2021 filed with the SEC.

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 intangible assets, disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expense during the reporting period.

There have been no changes in the Company's significant accounting policies for the nine months ended September 30, 2022 as compared to the significant accounting policies described in the Company's Annual Report on Form 10-K for the year ended December 31, 2021 filed with the SEC.

Estimates are based on historical experience, where applicable, and other assumptions believed to be reasonable by management.

3 unchanged sentences

Accordingly, the Company has determined that it has a single operating segment.

The Company’s long-lived assets are located primarily in the United States, except for $ 1,516 as of June 30, 2022 and $ 1,399 as of December 31, 2021 located primarily in Europe.

Net Loss Per Share —Basic and diluted net loss per share is computed by dividing the net loss by the weighted average number of shares 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 1,548 and 1,807 stock options, restricted shares, restricted stock units and performance award shares as of June 30, 2022 and 2021 because they are anti-dilutive.

Therefore, the number of shares calculated for basic net loss per share is also used for the diluted net loss per share calculation.

The Company’s long-lived assets are located primarily in the United States, except for $ 1,670 as of September 30, 2022 and $ 1,399 as of December 31, 2021 located primarily in Europe.

ATRICURE, INC.

AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(In Thousands, except per share amounts)

Earnings Per Share —Basic earnings per share is computed by dividing the net (loss) income by the weighted average number of shares of common shares outstanding during the period.

Diluted earnings per share reflects net income available to common stockholders divided by the weighted average number of common shares outstanding during the period and any dilutive common share equivalents, including shares issuable upon the vesting of restricted stock awards and restricted stock units, exercise of stock options as well as shares issuable under the Company's employee stock purchase plan (ESPP).

Three Months Ended

September 30, Nine Months Ended

September 30,

2022 2021 2022 2021

Net (loss) income available to common stockholders $ ( 12,272 ) $ 97,108 $ ( 42,296 ) $ 63,940

Basic weighted average common shares outstanding 45,823 45,258 45,682 44,977

Effect of dilutive securities — 842 — 1,019

Diluted weighted average common shares outstanding 45,823 46,100 45,682 45,996

Basic net (loss) income per common share $ ( 0.27 ) $ 2.15 $ ( 0.93 ) $ 1.42

Diluted net (loss) income per common share $ ( 0.27 ) $ 2.11 $ ( 0.93 ) $ 1.39

For the three and nine months ended September 30, 2022, net loss per share excludes the effect of 1,472 shares because the effect would be anti-dilutive.

The computation of diluted earnings per share in the three and nine months periods ended September 30, 2021 excludes 491 and 582 shares because the effect would be anti-dilutive.

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 transfer 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.

5 unchanged sentences

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.

ATRICURE, INC.

2 unchanged sentences

(In Thousands, except per share amounts)

• 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 June 30, 2022:

The following table represents the Company’s fair value hierarchy for its financial assets measured at fair value on a recurring basis as of September 30, 2022:

Quoted Prices in

11 unchanged sentences

Total assets $ 32,446 $ 135,918 $ — $ 168,364

There were no changes in the levels or methodology of measurement of financial assets and liabilities during the three and six months ended June 30, 2022.

There were no changes in the levels or methodology of measurement of financial assets and liabilities during the three and nine months ended September 30, 2022.

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, 2021:

13 unchanged sentences

Contingent Consideration.

The Company’s contingent consideration arrangements arising from the SentreHEART acquisition obligate the Company to pay certain defined amounts to former shareholders of SentreHEART if specified milestones are met related to the aMAZE IDE clinical trial, including PMA approval and reimbursement for the therapy involving SentreHEART’s devices.

The Company has assessed the projected probability of payment during the contractual achievement periods to be remote, resulting in no remaining fair value as of June 30, 2022 and December 31, 2021.

The Company’s contingent consideration arrangements arising from the SentreHEART acquisition obligate the Company to pay certain defined amounts to former shareholders of SentreHEART if specified milestones are met related to the aMAZE™ IDE clinical trial, including pre-market approval (PMA) approval and reimbursement for the therapy involving SentreHEART’s devices.

During the third quarter 2021, the Company was informed that the data from the aMAZE clinical trial did not achieve statistical superiority, and the Company assessed the projected probability of payment to be remote.

The Company recorded a credit to operating expenses of $ 189,900 reflecting the change in fair value of the contingent consideration.

The Company has assessed the projected probability of payment during the contractual achievement periods to be remote, resulting in no fair value as of September 30, 2022 and December 31, 2021.

Inventories consist of the following:

September 30,

2022 December 31,

9 unchanged sentences

The following table provides a summary of the Company’s intangible assets:

June 30, 2022 December 31, 2021

September 30, 2022 December 31, 2021

Estimated Useful Life Cost Accumulated

2 unchanged sentences

$ 55,712 $ 15,634 $ 55,712 $ 12,720

Amortization expense of intangible assets was $ 971 and $ 727 for the three months ended June 30, 2022 and 2021 and $ 1,943 and $ 965 for the six months ended June 30, 2022 and 2021.

Amortization expense of intangible assets was $ 971 for both the three months ended September 30, 2022 and 2021 and $ 2,914 and $ 1,936 for the nine months ended September 30, 2022 and 2021.

Future amortization expense is projected as follows:

2022 (excluding the six months ended June 30, 2022)

2022 (excluding the nine months ended September 30, 2022)

2027 and thereafter

Total $ 40,078

During the third quarter 2021, the Company recorded an impairment charge of $ 82,300 to reduce the carrying value of the aMAZE IPR&D asset to $ 0 as a result of data from the aMAZE clinical trial not achieving statistical superiority.

ACCRUED LIABILITIES

Accrued liabilities consist of the following:

September 30,

2022 December 31,

6 unchanged sentences

The Company has a Loan and Security Agreement, as amended and modified effective November 1, 2021, (Loan Agreement) with Silicon Valley Bank (SVB).

The Loan Agreement includes a $ 60,000 term loan, a $ 30,000 revolving line of credit, and an option for an additional $ 30,000 in term loan borrowings.

The Loan Agreement provides a $ 60,000 term loan, a $ 30,000 revolving line of credit, and an option for an additional $ 30,000 in term loan borrowings.

The Loan Agreement has a five year term, expiring November 2026.

Principal payments under the Loan Agreement are to be made ratably commencing 24 months after inception through the loan's maturity date.

At the option of the Company, the commencement of term loan principal payments may be extended an additional twelve months .

If the Company meets certain conditions, as specified by the Loan Agreement, the commencement of term loan principal payments may be deferred by an additional twelve months .

The term loan accrues interest at the Prime Rate plus 1.25 % and is subject to an additional 3.00 % fee on the term loan principal amount at maturity.

The Company is accruing the 3.00 % fee over the term of the Loan Agreement, with $ 240 included in the outstanding loan balance as of June 30, 2022.

The Company is accruing the 3.00 % fee over the term of the Loan Agreement, with $ 330 included in the outstanding loan balance as of September 30, 2022.

Additionally, the unamortized original financing costs related to the term loan of $ 269 are netted against the outstanding loan balance in the Condensed Consolidated Balance Sheets and are amortized ratably over the term of the Loan Agreement.

The revolving line of credit is subject to an annual facility fee of 0.20 %, and any borrowings thereunder bear interest at the Prime Rate.

Borrowing availability under the revolving credit facility is based on the lesser of $ 30,000 or a borrowing base calculation as defined by the Loan Agreement.

As of June 30, 2022, the Company had no borrowings under the revolving credit facility and had borrowing availability of $ 28,750 .

Borrowing availability under the revolving credit facility is based on the lesser of $ 30,000 or a borrowing base

ATRICURE, INC.

2 unchanged sentences

(In Thousands, except per share amounts)

calculation as defined by the Loan Agreement.

As of September 30, 2022, the Company had no borrowings under the revolving credit facility and had borrowing availability of $ 28,750 .

The Loan Agreement also provides for certain prepayment and early termination fees, as well as establishes a minimum liquidity covenant and dividend restrictions, along with other customary terms and conditions.

1 unchanged sentence

Future maturities of long-term debt, excluding the term loan final fee, are projected as follows:

2022 (excluding the six months ended June 30, 2022)

2022 (excluding the nine months ended September 30, 2022)

Total long-term debt $ 60,000

The Company has operating and finance leases for office, manufacturing and warehouse facilities and equipment.

The Company’s leases have remaining lease terms of less than one year to nine years .

The Company’s leases have remaining lease terms of less than one year to eight years .

Options to renew or extend leases beyond their initial term have been excluded from measurement of the 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:

June 30, 2022 December 31, 2021

September 30, 2022 December 31, 2021

Operating Leases

4 unchanged sentences

Weighted average discount rate 6.91 % 6.91 %

A $ 1,250 letter of credit issued to the lessor of the Company's corporate headquarters building is renewed annually and remains outstanding as of June 30, 2022.

A $ 1,250 letter of credit issued to the lessor of the Company's corporate headquarters building is renewed annually and remains outstanding as of September 30, 2022.

The components of lease expense are as follows:

Three Months Ended

June 30, Six Months Ended

September 30, Nine Months Ended

September 30,

2022 2021 2022 2021

4 unchanged sentences

Total finance lease cost $ 435 $ 463 $ 1,318 $ 1,364

Short-term lease expense was not significant for the three and six months ended June 30, 2022 and 2021.

Short-term lease expense was not significant for the three and nine months ended September 30, 2022 and 2021.

ATRICURE, INC.

3 unchanged sentences

Supplemental cash flow information related to leases was as follows:

Six Months Ended

June 30, 2022 Six Months Ended

June 30, 2021

Nine Months Ended

September 30, 2022 Nine Months Ended

September 30, 2021

Cash paid for amounts included in the measurement of lease liabilities:

6 unchanged sentences

Supplemental balance sheet information related to leases was as follows:

June 30, 2022 December 31, 2021

September 30, 2022 December 31, 2021

Operating Leases

10 unchanged sentences

Total finance lease liabilities $ 10,376 $ 10,977

Future m aturities of lease liabilities as of June 30, 2022 were as follows:

Future maturities of lease liabilities as of September 30, 2022 were as follows:

Operating Leases Finance Leases

2022 (excluding the six months ended June 30, 2022)

2022 (excluding the nine months ended September 30, 2022)

2023 1,160 1,665

11 unchanged sentences

COMMITMENTS AND CONTINGENCIES

Royalty Agreement.

The Company has a royalty agreement in place with terms that include payment of royalties of 5 % of specified product sales.

License Agreement.

The Company has a license agreement in place with terms that include payment of royalties of 5 % of specified product sales.

The agreement terminates the later of 2023 or upon expiration of the underlying patents or patent applications, which is expected to occur after 2023.

Parties to the royalty agreement have the right at any time to terminate the agreement immediately for cause.

Royalty expense of $ 877 and $ 842 was recorded for the three months ended June 30, 2022 and 2021 and $ 1,670 and $ 1,564 for the six months ended June 30, 2022 and 2021 as a component of Cost of Revenue in the accompanying Condensed and Consolidated Statement of Operations.

Parties to the license agreement have the right at any time to terminate the agreement immediately for cause.

Royalty expense of $ 804 and $ 792 was recorded for the three months ended September 30, 2022 and 2021 and $ 2,474 and $ 2,356 for the nine months ended September 30, 2022 and 2021 as a component of Cost of Revenue in the accompanying Condensed and Consolidated Statement of Operations.

Purchase Agreements.

11 unchanged sentences

Although the USDOJ and all of the state and local governments declined to intervene, the relator continues to pursue the case.

While the Company is vigorously 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, the Company received a notice of breach under a license agreement regarding its potential underpayment of royalties.

The notice asserts that the Company's calculation of royalties payable under the license agreement throughout the agreement term did not include sales of all products that were subject to royalties.

The Company disputes the basis of the claim and any potential underpayment.

While a loss related to this claim is possible, the Company does not believe such loss is probable or estimable at this time.

During the third quarter, the relator filed a Fourth Amended Complaint, which dropped allegations of off-label promotion and now 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.

On August 23, 2022, the Cleveland Clinic Foundation (“Clinic”) and IDx Medical, Ltd.

(“IDX”) filed a Demand for Arbitration against the Company with the American Arbitration Association (“AAA”), alleging that the Company breached certain provisions of the License Agreement dated December 9, 2003 among the Company, Clinic and IDX (“License Agreement”).

Clinic and IDX allege the Company did not include the revenues from sales of certain products in its calculation of royalty payments due under the License Agreement.

Clinic and IDX also allege that the Company did not provide related notices required under the License Agreement.

The Demand for Arbitration requests a declaration that the termination of the License Agreement shall not occur until the expiration of certain patents and that the Company violated the License Agreement’s non-competition provisions.

Clinic and IDX claim they are entitled to no less than $ 6 million plus interest and costs, fees and expenses associated with their claims and future royalties.

The Company denies the allegations of Clinic and IDX.

The Company filed its Answering Statement and Counterclaims to the allegations in September 2022, denying each claim and counterclaiming for breach of contract, correction of inventorship, declaratory judgment, patent prosecution and legal fees.

No dates have been scheduled for this arbitration.

The Company develops, manufactures and sells devices designed primarily for surgical ablation of cardiac tissue, exclusion of the left atrial appendage, and blocking pain by temporarily ablating peripheral nerves.

These devices are developed and marketed to a broad base of medical centers globally.

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.

5 unchanged sentences

Three Months Ended

June 30, Six Months Ended

September 30, Nine Months Ended

September 30,

2022 2021 2022 2021

7 unchanged sentences

Three Months Ended

June 30, Six Months Ended

September 30, Nine Months Ended

September 30,

2022 2021 2022 2021

7 unchanged sentences

Three Months Ended

June 30, Six Months Ended

September 30, Nine Months Ended

September 30,

2022 2021 2022 2021

11 unchanged sentences

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 June 30, 2022 and 2021 was ( 0.30 %) and ( 0.41 %).

The effective tax rate for the six months ended June 30, 2022 and 2021 was ( 0.34 %) and ( 0.29 %).

The Company’s worldwide effective tax rate differs from the US statutory rate of 21% primarily due to the Company’s valuation allowance.

The effective tax rate for the three months ended September 30, 2022 and 2021 was ( 0.38 %) and 0.04 %.

The effective tax rate for the nine months ended September 30, 2022 and 2021 was ( 0.35 %) and 0.21 %.

The Company’s worldwide effective tax rate differs from the US statutory rate of 21% primarily due to the valuation allowance.

Federal, state and local returns of the Company 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.

The Company has not accrued any interest and penalties related to unrecognized income tax benefits as a result of offsetting net

ATRICURE, INC.

2 unchanged sentences

(In Thousands, except per share amounts)

operating losses.

However, if required, the Company will recognize interest and penalties within income tax expense and within the related tax liability.

EQUITY COMPENSATION PLANS

4 unchanged sentences

The Compensation Committee of the Board of Directors, as the administrator of the 2014 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 June 30, 2022, 12,899 shares of common stock had been reserved for issuance under the 2014 Plan, and 1,076 shares were available for future grants.

At the Company's 2022 Annual Meeting of Stockholders, stockholders approved an amendment to the 2014 Plan increasing the shares authorized under the 2014 Plan by 1,100 .

As of September 30, 2022, 13,999 shares of common stock had been reserved for issuance under the 2014 Plan, and 2,188 shares were available for future grants.

Employee Stock Purchase Plan

2 unchanged sentences

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 June 30, 2022, there were 228 shares available for future issuance under the ESPP.

As of September 30, 2022, there were 228 shares available for future issuance under the ESPP.

Share-Based Compensation Expense Information

1 unchanged sentence

Three Months Ended

June 30, Six Months Ended

September 30, Nine Months Ended

September 30,

2022 2021 2022 2021

11 unchanged sentences

Three Months Ended

June 30, Six Months Ended

September 30, Nine Months Ended

September 30,

2022 2021 2022 2021

7 unchanged sentences

Balance at beginning of period $ ( 669 ) $ 22 $ ( 61 ) $ 258

Other comprehensive income (loss) before reclassifications ( 527 ) 36 ( 787 ) ( 262 )

Other comprehensive loss before reclassifications ( 721 ) ( 293 ) ( 1,508 ) ( 555 )

Amounts reclassified from accumulated other comprehensive loss to other income (expense) 461 181 640 207

2 unchanged sentences

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Financial Statements