3 unchanged sentences
Credit and Interest Rate Risk
−Removed: The Company invests its cash primarily in money market accounts, repurchase agreements, U.S.
−Removed: government and agency obligations, corporate bonds, asset-backed securities and commercial paper.
+Added: The Company invests its cash primarily in money market accounts, U.S.
+Added: government and agency obligations, corporate bonds, and asset-backed securities.
Although the Company believes it has invested in a conservative manner, with preservation being the primary investment objective, the value of the securities held will fluctuate with changes in financial markets including, among other things, changes in interest rates, credit quality and general volatility.
This risk is managed by investing in high quality investment grade securities to maintain liquidity and preserve principal without significantly increasing risk.
−Removed: We are subject to interest rate risk as rate fluctuations impact cash payments for our term loan and revolving credit facility.
−Removed: The term loan accrues interest at a variable rate based on the Prime Rate plus 1.25 % and any borrowings under the revolving credit facility bear interest at the Prime Rate.
Financial instruments that potentially subject the Company to credit risk consist of cash equivalents and investments in corporate bonds.
−Removed: Certain of AtriCure’s cash and cash equivalents exceed FDIC insured limits or are invested in money market accounts with investment banks that are not FDIC-insured.
−Removed: The Company places its cash and cash equivalents in what it believes to be credit-worthy financial institutions.
−Removed: As of December 31, 2022, $57,849 of the cash and cash equivalents balance was in excess of FDIC limits.
+Added: The Company maintains deposit accounts in federally insured financial institutions in excess of federally insured limits.
+Added: Cash held in financial institutions in foreign countries is not significant.
+Added: Although these depository accounts may exceed government insured depository limits, we have evaluated the credit worthiness of these applicable financial institutions and determined the risk of material financial loss due to the exposure of such credit risk to be minimal.
+Added: The Company also maintains investments in money market funds that are not federally insured.
+Added: We are subject to interest rate risk as rate fluctuations impact cash payments for outstanding borrowings.
+Added: Outstanding amounts under the Credit Agreement bear interest at a rate per annum equal to, at the Company's election:
+Added: (i) an alternate base rate (ABR) plus an applicable margin or (ii) an adjusted term secured overnight financing rate (SOFR) plus an applicable margin.
+Added: Alternate base rate is equal to the greatest of Prime, the NYFRB Rate plus 0.50% and Adjusted Term SOFR Rate plus 1.00%.
+Added: The applicable margin spread is 1.50% to 2.75%, as determined by the average excess availability of the aggregate revolving commitment.
+Added: All swingline loans bear interest at a rate per annum equal to the ABR plus the applicable margin under the Credit Agreement.
+Added: Interest periods for SOFR Term Benchmark borrowings range from one month, three months or six months, at the Company's election.
+Added: Interest rate risk is highly sensitive due to many factors, including United States monetary and tax policies and United states and international economic factors beyond our control.
Foreign Currency Exchange Rate Risk
−Removed: We sell our products to medical centers through our direct sales force in the United States and in certain international markets, such as Germany, France, the United Kingdom, Australia and the Benelux region.
+Added: We sell our products to medical centers through our direct sales force in the United States, Germany, France, the United Kingdom, Australia and Canada.
We also sell our products to distributors who in turn sell our products to medical centers in Japan, China and other international markets.
Our business is primarily transacted in U.S.
−Removed: direct sales transactions outside the United States are transacted in Euros, British Pounds or Australian Dollars.
+Added: direct international sales transactions are transacted in Euros, British Pounds, Australian Dollars or Canadian Dollars.
Sales to international distributors outside of Europe are under agreements primarily denominated in U.S.
3 unchanged sentences
Products sold by AtriCure Europe, B.V.
−Removed: are primarily denominated in Euros or British Pounds.
−Removed: Products sold by AtriCure Europe, B.V.
−Removed: accounted for 9.0% and 9.9% of the Company’s total revenue for 2022 and 2021.
+Added: and its subsidiaries are primarily denominated in Euros or British Pounds.
+Added: European product sales accounted for 9.4% and 9.0% of the Company’s total revenue for 2023 and 2022.
Accordingly, the Company is exposed to exchange rate fluctuations between the Euro and the U.S.
Dollar and between the British Pound and the Euro.
−Removed: For 2022 and 2021, foreign currency transaction gains of $559 and $387 were recorded primarily in connection with settlements of the intercompany balances and invoices transacted in British Pounds.
+Added: To a lesser extent, the Company is also exposed to exchange rate fluctuations between the Australian and Canadian Dollars to the U.S.
+Added: For 2023 and 2022, foreign currency transaction losses of $(101) and $(559) were recorded primarily in connection with settlements of the intercompany balances and invoices transacted in British Pounds.
For revenue denominated in Euros, if there is an increase in the rate at which Euros are exchanged for U.S.
−Removed: Dollars, it will require more Euros to equal a specified amount of U.S.
+Added: Dollars, it will
+Added: require more Euros to equal a specified amount of U.S.
Dollars than before the rate increase.
3 unchanged sentences
Dollar conversion rate fluctuations may impact our reported revenue and expenses.
−Removed: In December 2022, we entered into a clinical trial management agreement for the LeAAPS clinical trial.
+Added: In 2022, we entered into a clinical trial management agreement for the LeAAPS clinical trial.
The terms of the agreement require we make fixed milestone payments upon achievement of various enrollment and project milestones over the estimated ten-year term.
5 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.