What changed in this filing

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Item 1. Financial Statements

2023-07-26 compared with 2023-05-03 · 140 added, 87 removed, 398 unchanged (36% of the section changed)

45 unchanged sentences

Three Months Ended

June 30, Six Months Ended

2023 2022 2023 2022

Revenue $ 100,918 $ 84,529 $ 194,412 $ 159,105

26 unchanged sentences

(In Thousands)

Three-Month Period Ended March 31, 2022

Three-Month Period Ended June 30, 2022

Deficit Accumulated

2 unchanged sentences

Stockholders’

Balance—December 31, 2021

Balance—March 31, 2022

46,268 $ 46 $ 761,580 $ ( 295,336 ) $ ( 3,465 ) $ 462,825

2 unchanged sentences

Net loss — — — ( 14,841 ) — ( 14,841 )

Balance—June 30, 2022

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

Three-Month Period Ended June 30, 2023

Deficit Accumulated

Comprehensive

Income (Loss)

Stockholders’

Balance—March 31, 2023

47,244 $ 47 $ 790,965 $ ( 333,095 ) $ ( 3,072 ) $ 454,845

Three-Month Period Ended March 31, 2023

Impact of equity compensation plans 108 — 12,232 — — 12,232

Other comprehensive income — — — — 463 463

Net loss — — — ( 5,118 ) — ( 5,118 )

Balance—June 30, 2023

47,352 $ 47 $ 803,197 $ ( 338,213 ) $ ( 2,609 ) $ 462,422

Six-Month Period Ended June 30, 2022

Deficit Accumulated

5 unchanged sentences

Impact of equity compensation plans 407 — 6,374 — — 6,374

Other comprehensive loss — — — — ( 3,396 ) ( 3,396 )

Net loss — — — ( 30,024 ) — ( 30,024 )

Balance—June 30, 2022

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

Six-Month Period Ended June 30, 2023

Deficit Accumulated

Comprehensive

Income (Loss)

Stockholders’

Balance—December 31, 2022

46,563 $ 47 $ 787,422 $ ( 326,619 ) $ ( 4,096 ) $ 456,754

Impact of equity compensation plans 789 — 15,775 — — 15,775

Other comprehensive income — — — — 1,487 1,487

Net loss — — — ( 11,594 ) — ( 11,594 )

Balance—March 31, 2023

Balance—June 30, 2023

47,352 $ 47 $ 803,197 $ ( 338,213 ) $ ( 2,609 ) $ 462,422

4 unchanged sentences

(In Thousands)

Three Months Ended

Six Months Ended

Cash flows from operating activities:

16 unchanged sentences

Cash flows from investing activities:

Purchases of available-for-sale securities — ( 3,941 )

Sales and maturities of available-for-sale securities 48,315 51,749

Purchases of property and equipment ( 5,582 ) ( 7,565 )

Acquisition of intellectual property ( 30,000 ) —

Net cash provided by investing activities 12,733 40,243

2 unchanged sentences

Payment of debt fees ( 60 ) —

Proceeds from stock option exercises 522 355

Proceeds from stock option exercises and employee stock purchase plan 4,058 3,374

Shares repurchased for payment of taxes on stock awards ( 6,038 ) ( 11,573 )

1 unchanged sentence

Effect of exchange rate changes on cash and cash equivalents ( 1 ) ( 302 )

Net increase (decrease) in cash and cash equivalents 19,242 ( 15,513 )

Net increase in cash and cash equivalents 9,141 10,902

Cash and cash equivalents—beginning of period 58,099 43,654

2 unchanged sentences

Cash paid for interest $ 3,078 $ 1,797

Net cash (received) paid for income taxes ( 12 ) 50

Net cash paid for income taxes 159 132

Non-cash investing and financing activities:

16 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, 2022 filed with the SEC.

Except as discussed herein, there have been no changes in the Company's significant accounting policies for the three months ended March 31, 2023 as compared to the significant accounting policies described in the Company's Annual Report on Form 10-K for the year ended December 31, 2022.

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.

Except as discussed herein, there have been no changes in the Company's significant accounting policies for the six months ended June 30, 2023 as compared to the significant accounting policies described in the Company's Annual Report on Form 10-K for the year ended December 31, 2022.

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 assumptions believed to be reasonable by management.

2 unchanged sentences

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 $ 2,859 as of March 31, 2023 and $ 1,616 as of December 31, 2022 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 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 1,882 and 1,567 shares as of March 31, 2023 and 2022 because they are anti-dilutive.

The Company’s long-lived assets are located in the United States, except for $ 2,934 as of June 30, 2023 and $ 1,616 as of December 31, 2022 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 1,839 and 1,548 shares as of June 30, 2023 and 2022 because they are anti-dilutive.

Therefore, the number of shares used for basic and diluted net loss per share are the same.

1 unchanged sentence

The value of the portion of an award that is ultimately expected to vest is recognized as expense ratably over the service period.

The Company estimated forfeitures at the time of grant and revises them, as necessary, in subsequent periods as actual forfeitures differ from those estimates.

Prior to January 1, 2023, the Company estimated forfeitures at the time of grant and revises them, as necessary, in subsequent periods as actual forfeitures differ from those estimates.

Effective January 1, 2023, the Company's policy was amended to account for forfeitures as they occur rather than estimating at the time of grant, and the effect on income from continuing operations and retained earnings is not significant.

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

Intangible Assets— Technology intangible assets with determinable useful lives are amortized on a straight-line basis over the estimated fifteen year period benefited.

Patent intangible assets with determinable useful lives are amortized over the estimated useful life of 5 years in a pattern reflecting the estimated economic benefit of the asset to the Company.

Amortization of technology intangible assets is recorded in selling, general and administrative expense, while amortization of patent intangible assets is recorded in cost of revenue.

The Company reviews intangible assets at least annually for impairment using its best estimates based on reasonable and

ATRICURE, INC.

2 unchanged sentences

(In Thousands, except per share amounts)

of observable inputs and minimize the use of unobservable inputs.

supportable assumptions and projections.

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:

4 unchanged sentences

• 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, 2023:

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, 2023:

Quoted Prices in

6 unchanged sentences

Money market funds $ — $ 62,100 $ — $ 62,100

Commercial paper — 2,977 — 2,977

Government and agency obligations 24,273 — — 24,273

2 unchanged sentences

Total assets $ 24,273 $ 105,210 $ — $ 129,483

There were no changes in the levels or methodology of measurement of financial assets and liabilities during the three months ended March 31, 2023.

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, 2023.

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, 2022:

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 pre-market approval (PMA) approval and reimbursement for the therapy involving SentreHEART’s devices.

The Company assessed the projected probability of payment during the contractual achievement periods to be remote, resulting in no reported fair value as of March 31, 2023 and December 31, 2022.

ATRICURE, INC.

2 unchanged sentences

(In Thousands, except per share amounts)

Investments as of March 31, 2023 consisted of the following:

reimbursement for the therapy involving SentreHEART’s devices.

The Company assessed the projected probability of payment during the contractual achievement periods to be remote, resulting in no reported fair value as of June 30, 2023 and December 31, 2022.

Investments as of June 30, 2023 consisted of the following:

Cost Basis Unrealized

2 unchanged sentences

Government and agency obligations 24,993 ( 720 ) 24,273

Commercial paper 2,977 — 2,977

Asset-backed securities 2,286 ( 90 ) 2,196

8 unchanged sentences

Total $ 118,221 $ ( 3,698 ) $ 114,523

The gross realized gains or losses from sales of available-for-sale investments were not significant in the three months ended March 31, 2023 and 2022.

The cost and fair value of investments in debt securities, by contractual maturity, as of March 31, 2023 were as follows:

The gross realized gains or losses from sales of available-for-sale investments were not significant in the three and six months ended June 30, 2023 and 2022.

The cost and fair value of investments in debt securities, by contractual maturity, as of June 30, 2023 were as follows:

Available-for-sale

3 unchanged sentences

Due after 1 year through 5 years

24,492 23,367

Due after 5 years through 10 years

15 unchanged sentences

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

March 31, 2023 December 31, 2022

June 30, 2023 December 31, 2022

Cost Accumulated

1 unchanged sentence

Technology $ 46,470 $ 8,607 $ 46,470 $ 7,131

Amortization expense of intangible assets was $ 738 and $ 972 for the three months ended March 31, 2023 and 2022.

Patents 30,000 480 — —

Total $ 76,470 $ 9,087 $ 46,470 $ 7,131

In May 2023, the Company acquired patents that will be amortized over an estimated useful life of 5 years.

See Note 9 - Commitments and Contingencies for further information on the asset acquisition.

The following table summarizes the allocation of amortization expense of intangible assets:

Three Months Ended

June 30, Six Months Ended

2023 2022 2023 2022

Cost of revenues $ 480 $ — $ 480 $ —

Selling, general and administrative expenses 738 971 1,476 1,943

Total $ 1,218 $ 971 $ 1,956 $ 1,943

Future amortization expense is projected as follows:

2023 (excluding the three months ended March 31, 2023)

2023 (excluding the six months ended June 30, 2023)

2028 and thereafter

4 unchanged sentences

Accrued compensation and employee-related expenses $ 26,807 $ 26,924

Other accrued liabilities 3,033 3,301

Sales returns and allowances 3,172 2,797

Other accrued liabilities 2,007 3,301

Total $ 31,986 $ 33,022

2 unchanged sentences

Our primary banking relationship in the United States was with Silicon Valley Bank.

All deposits and loans of Silicon Valley Bank were purchased by First-Citizens Bank & Trust Company, and our banking relationship is now with Silicon Valley Bank, a division of First-Citizens Bank & Trust Company as of March 31, 2023.

During the first quarter of 2023 all deposits and loans of Silicon Valley Bank were purchased by First-Citizens Bank & Trust Company, and our banking relationship is now with Silicon Valley Bank, a division of First-Citizens Bank & Trust Company as of March 31, 2023.

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.

ATRICURE, INC.

AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(In Thousands, except per share amounts)

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

1 unchanged sentence

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 $ 510 included in the outstanding loan balance as of March 31, 2023.

The Company is accruing the 3.00 % fee over the term of the Loan Agreement, with $ 600 included in the outstanding loan balance as of June 30, 2023.

Additionally, the unamortized original financing costs related to the term loan of $ 220 are netted against the outstanding loan balance in the Condensed Consolidated Balance Sheets and are amortized ratably over the term of the Loan Agreement.

1 unchanged sentence

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 March 31, 2023, the Company had no borrowings under the revolving credit facility and had borrowing availability of $ 28,750 .

ATRICURE, INC.

AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(In Thousands, except per share amounts)

As of June 30, 2023, 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:

2023 (excluding the three months ended March 31, 2023)

2023 (excluding the six months ended June 30, 2023)

Total long-term debt, of which $ 13,333 is current and $ 46,667 is noncurrent

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 eight years .

The Company’s leases have remaining lease terms of less than one year to ten 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:

March 31, 2023 December 31, 2022

June 30, 2023 December 31, 2022

Operating Leases

4 unchanged sentences

Weighted average discount rate 6.92 % 6.92 %

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 March 31, 2023.

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, 2023.

ATRICURE, INC.

AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(In Thousands, except per share amounts)

The components of lease expense are as follows:

Three Months Ended

June 30, Six Months Ended

2023 2022 2023 2022

Operating lease cost $ 325 $ 284 $ 635 $ 570

3 unchanged sentences

Total finance lease cost $ 425 $ 523 $ 855 $ 883

Short-term lease expense was not significant for the three months ended March 31, 2023 and 2022.

ATRICURE, INC.

AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(In Thousands, except per share amounts)

Short-term lease expense was not significant for the three and six months ended June 30, 2023 and 2022.

Supplemental cash flow information related to leases was as follows:

Three Months Ended

March 31, 2023 Three Months Ended

March 31, 2022

Six Months Ended

June 30, 2023 Six Months Ended

June 30, 2022

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

6 unchanged sentences

Supplemental balance sheet information related to leases was as follows:

March 31, 2023 December 31, 2022

June 30, 2023 December 31, 2022

Operating Leases

10 unchanged sentences

Total finance lease liabilities $ 9,656 $ 10,139

Future maturities of lease liabilities as of March 31, 2023 were as follows:

ATRICURE, INC.

AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(In Thousands, except per share amounts)

Future maturities of lease liabilities as of June 30, 2023 were as follows:

Operating Leases Finance Leases

2023 (excluding the three months ended March 31, 2023)

$ 991 $ 1,250

2023 (excluding the six months ended June 30, 2023)

2024 1,270 1,689

6 unchanged sentences

Total $ 4,798 $ 9,656

ATRICURE, INC.

AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(In Thousands, except per share amounts)

COMMITMENTS AND CONTINGENCIES

License Agreement.

The Company has a license agreement that requires royalty payments 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 license agreement have the right at any time to terminate the agreement immediately for cause.

Royalty expense of $ 901 and $ 794 was recorded for the three months ended March 31, 2023 and 2022 as a component of Cost of Revenue in the accompanying Condensed Consolidated Statement of Operations.

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.

See Legal section below for additional information.

Purchase Agreements.

14 unchanged sentences

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.

On August 23, 2022, the Cleveland Clinic Foundation (“CCF”) 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 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 $ 6,000 plus interest and costs, fees and expenses associated with their claims and future royalties.

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.

This arbitration has been scheduled for May 2023.

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.

As of March 31, 2023, the Company recorded a $ 4,000 gain for the proceeds received as a reduction to selling, general and administrative expenses.

In April 2023, the Company collected the remaining $ 3,500 proceeds.

Clinic and IDx alleged that the Company did not include the revenues from sales of certain products in its royalty payments due under the License Agreement, and the Company did not provide related notices required under the License Agreement.

The Company filed its Answering Statement and Counterclaims to the allegations in September 2022, denying each

ATRICURE, INC.

2 unchanged sentences

(In Thousands, except per share amounts)

claim and counterclaiming for breach of contract, correction of inventorship, declaratory judgment, patent prosecution and legal fees.

In May 2023, the Company entered into an Assignment and Agreement Regarding IDx and CCF Intellectual Property (“Assignment Agreement”) with Clinic and IDx.

Pursuant to the Assignment Agreement, during the second quarter of 2023, the Company made a one-time payment of $ 33,400 to Clinic and IDx for the acquisition of patents and other intellectual property.

The Assignment Agreement also requires dismissal of the arbitration and release of payment for royalty obligations due to Clinic and IDx under the License Agreement after March 31, 2023.

The amount paid, together with transaction costs, was allocated between the acquired intangible asset, the release of payment for royalty obligations and the settlement of the dispute.

The intangible asset was assigned a value of $ 30,000 and is being amortized over an estimated useful life of 5 years.

The release of the royalty obligations was valued at $ 432 .

The remaining $ 3,088 was allocated to the settlement and is included in selling, general and administrative expenses for the three months ended June 30, 2023.

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 $ 3,500 gain for the three months ended June 30, 2023 and $ 7,500 for the six months ended June 30, 2023 for the proceeds received as a reduction to selling, general and administrative expenses.

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

3 unchanged sentences

Three Months Ended

June 30, Six Months Ended

2023 2022 2023 2022

Open ablation $ 27,002 $ 22,070 $ 52,144 $ 41,044

6 unchanged sentences

Three Months Ended

June 30, Six Months Ended

2023 2022 2023 2022

Open ablation $ 7,722 $ 6,213 $ 15,008 $ 12,705

4 unchanged sentences

Total International $ 16,015 $ 13,264 $ 31,320 $ 25,568

ATRICURE, INC.

AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(In Thousands, except per share amounts)

Revenue attributed to customer geographic locations is as follows:

Three Months Ended

June 30, Six Months Ended

2023 2022 2023 2022

United States $ 84,903 $ 71,265 $ 163,092 $ 133,537

10 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 March 31, 2023

ATRICURE, INC.

AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(In Thousands, except per share amounts)

and 2022 was ( 1.2 %) and ( 0.4 %).

The effective tax rate for the three months ended June 30, 2023 and 2022 was ( 1.9 %) and ( 0.3 %).

The effective tax rate for the six months ended June 30, 2023 and 2022 was ( 1.5 %) and ( 0.3 %).

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

5 unchanged sentences

the 2023 Stock Incentive Plan (2023 Plan) and the 2018 Employee Stock Purchase Plan (ESPP).

The Company is asking stockholders at the 2023 Annual Meeting of Stockholders to approve the 2023 Stock Incentive Plan, which if adopted, will replace the 2014 Plan.

Stockholders approved the 2023 Plan at the 2023 Annual Meeting of Stockholders.

Pursuant to its terms, the 2023 Plan supersedes and replaces the 2014 Stock Incentive Plan (Prior Plan).

Stock Incentive Plan

Under the 2014 Plan, the Board of Directors may grant incentive stock options to Company employees and may grant restricted stock awards, restricted stock units, nonstatutory stock options, performance share awards and stock appreciation rights to Company employees, directors and consultants.

Under the 2023 Plan, the Board of Directors may grant restricted stock awards, restricted stock units, nonstatutory stock options, performance share awards and 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, 2023, 13,999 shares of common stock had been reserved for issuance under the 2014 Plan, and 1,285 shares were available for future grants.

As of June 30, 2023, 2,287 shares of common stock have been reserved for issuance under the 2023 Plan, and 2,269 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 March 31, 2023, there were 184 shares available for future issuance under the ESPP.

As of June 30, 2023, there were 847 shares available for future issuance under the ESPP.

ATRICURE, INC.

AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(In Thousands, except per share amounts)

Share-Based Compensation Expense Information

1 unchanged sentence

Three Months Ended

June 30, Six Months Ended

2023 2022 2023 2022

Cost of revenue $ 471 $ 487 $ 914 $ 1,058

2 unchanged sentences

Total $ 8,995 $ 7,524 $ 17,755 $ 14,573

ATRICURE, INC.

AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(In Thousands, except per share amounts)

COMPREHENSIVE LOSS AND ACCUMULATED OTHER COMPREHENSIVE LOSS

2 unchanged sentences

Three Months Ended

June 30, Six Months Ended

2023 2022 2023 2022

Total accumulated other comprehensive loss at beginning of period $ ( 3,072 ) $ ( 3,465 ) $ ( 4,096 ) $ ( 948 )

11 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