What changed in this filing

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Item 1. Financial Statements

2025-10-30 compared with 2025-07-30 · 159 added, 100 removed, 402 unchanged (39% of the section changed)

4 unchanged sentences

(In Thousands, Except Per Share Amounts)

September 30,

2025 December 31,

16 unchanged sentences

Accrued liabilities 49,370 45,587

Current lease liabilities

Other current liabilities

Total current liabilities 77,840 73,424

18 unchanged sentences

Three Months Ended

June 30, Six Months Ended

September 30, Nine Months Ended

September 30,

2025 2024 2025 2024

6 unchanged sentences

Total operating expenses 101,124 94,198 307,380 280,395

Loss from operations ( 6,192 ) ( 7,168 ) ( 12,146 ) ( 18,085 )

Income (loss) from operations 208 ( 7,405 ) ( 11,938 ) ( 25,490 )

Other income (expense):

3 unchanged sentences

— — — ( 1,362 )

Other income (expense) 812 28 632 ( 54 )

Other income 9 260 641 206

Loss before income tax expense ( 86 ) ( 7,531 ) ( 12,523 ) ( 28,372 )

6 unchanged sentences

Foreign currency translation adjustment ( 176 ) 407 1,608 46

Other comprehensive income 979 128 1,784 424

Other comprehensive income (loss) ( 176 ) 422 1,608 846

Net loss ( 267 ) ( 7,853 ) ( 13,204 ) ( 29,130 )

5 unchanged sentences

(In Thousands)

Three-Month Period Ended June 30, 2024

Three-Month Period Ended September 30, 2024

Deficit Accumulated

2 unchanged sentences

Stockholders’

Balance—March 31, 2024

Balance—June 30, 2024

48,686 $ 49 $ 840,939 $ ( 378,334 ) $ ( 569 ) $ 462,085

2 unchanged sentences

Net loss — — — ( 7,853 ) — ( 7,853 )

Balance—June 30, 2024

Balance—September 30, 2024

48,748 $ 49 $ 851,306 $ ( 386,187 ) $ ( 147 ) $ 465,021

Three-Month Period Ended June 30, 2025

Three-Month Period Ended September 30, 2025

Deficit Accumulated

2 unchanged sentences

Stockholders’

Balance—March 31, 2025

Balance—June 30, 2025

49,691 $ 50 $ 878,384 $ ( 414,692 ) $ 749 $ 464,491

Impact of equity compensation plans 22 — 12,459 — — 12,459

Other comprehensive income — — — — 979 979

Other comprehensive loss — — — — ( 176 ) ( 176 )

Net loss — — — ( 267 ) — ( 267 )

Balance—June 30, 2025

Balance—September 30, 2025

49,713 $ 50 $ 890,843 $ ( 414,959 ) $ 573 $ 476,507

Six-Month Period Ended June 30, 2024

Nine-Month Period Ended September 30, 2024

Deficit Accumulated

7 unchanged sentences

Net loss — — — ( 29,130 ) — ( 29,130 )

Balance—June 30, 2024

Balance—September 30, 2024

48,748 $ 49 $ 851,306 $ ( 386,187 ) $ ( 147 ) $ 465,021

Six-Month Period Ended June 30, 2025

Nine-Month Period Ended September 30, 2025

Deficit Accumulated

7 unchanged sentences

Net loss — — — ( 13,204 ) — ( 13,204 )

Balance—June 30, 2025

Balance—September 30, 2025

49,713 $ 50 $ 890,843 $ ( 414,959 ) $ 573 $ 476,507

4 unchanged sentences

(In Thousands)

Six Months Ended

Nine Months Ended

September 30,

Cash flows from operating activities:

Net loss $ ( 13,204 ) $ ( 29,130 )

Adjustments to reconcile net loss to net cash provided by (used in) operating activities:

Adjustments to reconcile net loss to net cash provided by operating activities:

Share-based compensation expense 33,425 30,020

13 unchanged sentences

Other noncurrent assets and liabilities ( 1,777 ) ( 757 )

Net cash provided by (used in) operating activities 10,591 ( 13,636 )

Net cash provided by operating activities 37,307 6,368

Cash flows from investing activities:

7 unchanged sentences

Proceeds from revolving credit facility, net of financing costs

Payments on debt and leases ( 579 ) ( 62,329 )

Payments on debt, leases and financing obligation ( 880 ) ( 62,598 )

Proceeds from financing obligation

Payment of financing costs and bank fees

3 unchanged sentences

Effect of exchange rate changes on cash and cash equivalents 707 71

Net (decrease) increase in cash and cash equivalents

( 4,925 ) 21,725

Net increase in cash and cash equivalents 25,144 46,025

Cash and cash equivalents—beginning of period 122,721 84,310

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, 2024 filed with the SEC.

There have been no changes in the Company's significant accounting policies for the six months ended June 30, 2025 as compared to the significant accounting policies described in the Company's Annual Report on Form 10-K for the year ended December 31, 2024.

Except as discussed herein, there have been no changes in the Company's significant accounting policies for the nine months ended September 30, 2025 as compared to the significant accounting policies described in the Company's Annual Report on Form 10-K for the year ended December 31, 2024.

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

3 unchanged sentences

The Company has one business activity and operates as one operating segment:

the development, manufacture and sale of devices used by physicians in surgical procedures, designed primarily for the ablation of cardiac tissue, the exclusion of the left atrial appendage and the ablation of peripheral nerves.

the development, manufacture and sale of devices used by physicians in surgical procedures, designed primarily for ablation of cardiac tissue, exclusion of the left atrial appendage and ablation of peripheral nerves.

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

2 unchanged sentences

Revenue by product type and geographic area is included at Note 9 – Revenue.

The Company’s long-lived assets are located in the United States, except for $ 6,033 as of June 30, 2025 and $ 4,021 as of December 31, 2024 located primarily in Europe.

The Company’s long-lived assets are located in the United States, except for $ 5,891 as of September 30, 2025 and $ 4,021 as of December 31, 2024 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 2,930 and 2,675 shares as of June 30, 2025 and 2024 because they are anti-dilutive.

Since the Company has experienced net losses for all periods presented, net loss per share excludes the effect of 2,897 and 2,724 shares as of September 30, 2025 and 2024 because they are anti-dilutive.

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

Sale-and-Leaseback Transaction —Sale-and-leaseback transactions occur when a company sells assets to a third-party and simultaneously leases them back.

In accordance with FASB ASC 842, "Leases", for potential sale-and-leaseback transactions, the Company assesses the contract to identify if a sale occurred via transfer of control of the assets in accordance with ASC 606 "Revenue from Contracts with Customers".

In cases where control has not transferred, we continue to recognize the underlying asset within Property and equipment, net within the consolidated balance sheets, which is then depreciated over the shorter of the remaining useful life or lease term.

Additionally, a financial liability is recognized and referred to as a financing obligation and is accounted for similarly to debt or finance leases.

Rental payments are recognized as a reduction of the financing obligation and interest expense using the effective interest method.

During the quarter ended September 30, 2025, the Company entered into one failed sale-and-leaseback transaction.

See additional discussion in Note 6 – Borrowings and Financing Obligation .

ATRICURE, INC.

AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(In Thousands, except per share amounts)

Recently Issued Accounting Pronouncements Not Yet Adopted —In September 2025, the FASB issued Accounting Standards Update (ASU) No.

2025-06, "Intangibles—Goodwill and Other—Internal-Use Software (Topic 350-40):

Targeted Improvements to the Accounting for Internal-Use Software".

This amendment modernizes and makes targeted improvements to the accounting for software costs found under Topic 350-40, effective for fiscal years and interim periods beginning after December 15, 2027, with early adoption permitted.

The Company is evaluating the impact of adopting this standard on its consolidated financial statements and disclosures.

Fair value is defined 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.

To measure fair value of assets and liabilities, the Company uses the following fair value hierarchy based on three levels of inputs:

To measure the fair value of assets and liabilities, the Company uses the following fair value hierarchy based on three levels of inputs:

• Level 1—Observable inputs, such as quoted prices in active markets for identical assets or liabilities.

2 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.

ATRICURE, INC.

AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(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, 2025:

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, 2025:

Quoted Prices in

7 unchanged sentences

Total assets $ 137,941 $ — $ — $ 137,941

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, 2025.

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, 2025.

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, 2024:

11 unchanged sentences

The PMA approval milestone expired December 31, 2023, while the achievement period for the reimbursement milestone expires on December 31, 2026.

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, 2025 and December 31, 2024.

The Company assessed the projected probability of payment during the contractual achievement periods as remote, resulting in no reported fair value as of September 30, 2025 and December 31, 2024.

ATRICURE, INC.

AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(In Thousands, except per share amounts)

Inventories consist of the following:

September 30,

2025 December 31,

3 unchanged sentences

Total $ 78,951 $ 75,335

ATRICURE, INC.

AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(In Thousands, except per share amounts)

INTANGIBLE ASSETS

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

June 30, 2025 December 31, 2024

September 30, 2025 December 31, 2024

Cost Accumulated

5 unchanged sentences

Three Months Ended

June 30, Six Months Ended

September 30, Nine Months Ended

September 30,

2025 2024 2025 2024

4 unchanged sentences

Future amortization expense is projected as follows:

2025 (excluding the six months ended June 30, 2025)

2025 (excluding the nine months ended September 30, 2025)

2030 and thereafter

2 unchanged sentences

Accrued liabilities consist of the following:

September 30,

2025 December 31,

3 unchanged sentences

Total $ 49,370 $ 45,587

ATRICURE, INC.

AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(In Thousands, except per share amounts)

BORROWINGS AND FINANCING OBLIGATION

Asset backed revolving credit facility.

The Company has 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) effective January 5, 2024.

5 unchanged sentences

Any such swingline loans will reduce availability under the ABL Facility on a dollar-for-dollar basis.

ATRICURE, INC.

AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(In Thousands, except per share amounts)

The Credit Agreement has a three-year term, and all outstanding borrowings are due upon maturity of the Credit Agreement on January 5, 2027.

2 unchanged sentences

The Credit Agreement contains mandatory prepayment provisions which require prepayment of amounts outstanding under the ABL Facility upon specified events or availability shortfall.

As of June 30, 2025, the Company had borrowings of $ 61,865 and had borrowing capacity of $ 61,885 under the ABL facility.

As of September 30, 2025, the Company had borrowings of $ 61,865 and had borrowing capacity of $ 61,885 under the ABL facility.

Future maturities of long-term debt are projected as follows:

2025 (excluding the six months ended June 30, 2025) $ —

2025 (excluding the nine months ended September 30, 2025) $ —

Total long-term debt, of which $ 61,865 is noncurrent

4 unchanged sentences

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.

The applicable margin on borrowings will adjust ranging from 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.

As of June 30, 2025, the effective interest rate on the ABL Facility was 7.16 %.

As of September 30, 2025, the effective interest rate on the ABL Facility was 7.00 %.

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 and minimum excess availability, and restrictions on indebtedness, liens, investments and acquisitions, asset dispositions, specified agreements, restricted payments and prepayment of certain indebtedness.

Financing obligation.

In August 2025, the Company transferred legal ownership of a building and certain real property on its corporate headquarters campus in Mason, Ohio for cash consideration of $ 6,250 .

Simultaneously, the Company entered into a contract to lease back the existing building and real property, as well as the planned building expansion space from the buyer-lessor.

The buyer-lessor is financing the development and construction of the expansion of additional manufacturing and office space.

During construction of the expansion, the Company will maintain occupancy and pay rent for the existing building.

Upon construction completion, the expanded premises will be leased for fifteen years with three five-year options to renew.

Annual rental payments will be calculated at an amount equal to 8 % of the construction costs and will escalate 3 % annually.

Rental payments will be allocated between the existing and the expanded property based on the relative fair value upon construction completion.

Expansion rental payments are projected to be $ 38,469 for the fifteen year lease term expected to

ATRICURE, INC.

AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(In Thousands, except per share amounts)

begin during 2026.

The classification of the lease related to the expansion will be assessed upon completion of construction.

Rental payments will be finalized upon completion of the expansion construction.

Estimated rental payments for the expansion over the next five annual periods are as follows:

The lease of the existing building and certain real property sold is a failed sale-and-leaseback as a result of finance lease classification.

The Company recorded a financing obligation equal to the $ 6,250 cash proceeds received.

The Company allocated projected rental payments during the term of construction and fifteen-year lease term based on the estimated fair value of the existing real property assets and future expansion.

The company imputes interest monthly at a rate of 6.76 %.

During the three and nine months ended September 30, 2025, interest expense was not significant.

Future maturities of the financing obligation are projected as follows:

2025 (excluding the nine months ended September 30, 2025) $ 11

2030 and thereafter 5,694

Total long-term financing obligation, of which $ 64 is current

The financing obligation is included in Other current liabilities and Other noncurrent liabilities on the Condensed Consolidated Balance Sheet.

See additional discussion in Note 1 – Description of the Business and Summary of Significant Accounting Policies.

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 eleven 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 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:

June 30, 2025 December 31, 2024

September 30, 2025 December 31, 2024

Operating Leases

4 unchanged sentences

Weighted average discount rate 7.0 % 7.0 %

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 June 30, 2025.

ATRICURE, INC.

2 unchanged sentences

(In Thousands, except per share amounts)

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 September 30, 2025.

The components of lease expense are as follows:

Three Months Ended

June 30, Six Months Ended

September 30, Nine Months Ended

September 30,

2025 2024 2025 2024

4 unchanged sentences

Total finance lease cost $ 399 $ 419 $ 1,212 $ 1,259

Short-term lease expense was not significant for the three and six months ended June 30, 2025 and 2024.

Short-term lease expense was not significant for the three and nine months ended September 30, 2025 and 2024.

Supplemental cash flow information related to leases is as follows:

Six Months Ended

June 30, 2025 Six Months Ended

June 30, 2024

Nine Months Ended

September 30, 2025 Nine Months Ended

September 30, 2024

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

5 unchanged sentences

Finance leases — 421

ATRICURE, INC.

AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(In Thousands, except per share amounts)

Supplemental balance sheet information related to leases is as follows:

June 30, 2025 December 31, 2024

September 30, 2025 December 31, 2024

Operating Leases

Operating lease right-of-use assets $ 6,800 $ 5,727

Current lease liabilities

Other current liabilities

$ 1,659 $ 1,619

5 unchanged sentences

Property and equipment, net $ 5,104 $ 5,890

Current lease liabilities

Other current liabilities

$ 1,275 $ 1,186

1 unchanged sentence

Total finance lease liabilities $ 7,591 $ 8,467

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, 2025 are as follows:

Future maturities of lease liabilities as of September 30, 2025 are as follows:

Operating Leases Finance Leases

2025 (excluding the six months ended June 30, 2025)

$ 1,004 $ 875

2025 (excluding the nine months ended September 30, 2025)

2026 1,831 1,775

9 unchanged sentences

The Company holds an exclusive licensing agreement (Cooperation Agreement) to co-develop and commercialize equipment incorporating pulsed field ablation (PFA) technology.

The Cooperation Agreement requires the Company to pay contingent consideration, settled in cash, with a maximum payout of $ 28,000 if all milestones are achieved successfully through the agreement term ending in 2034.

The Cooperation Agreement requires the Company to pay contingent consideration, settled in cash, with a maximum total payout of $ 28,000 if all milestones are achieved successfully through the agreement term ending in 2034.

The contingent consideration will be expensed when each milestone is paid or becomes payable as a result of achievement.

Payments made under this agreement were $ 5,000 for the three and six months ended June 30, 2025 and included as a component of research and development expense.

Payments made under this agreement were $ 5,000 for the nine months ended September 30, 2025 and included as a component of research and development expense.

During October 2025, the next milestone was achieved.

The impact of the $ 1,000 payment and expense will be included in the fourth quarter of 2025.

The agreement also contains provisions requiring future royalty payments on devices incorporating co-developed technology upon commercialization.

2 unchanged sentences

In 2022, the Company entered into a clinical trial management agreement for the LeAAPS clinical trial.

The terms of the agreement require payments upon achievement of various enrollment and project milestones over the estimated ten-year term, yet the agreement may be terminated early for any reason.

Furthermore, we incur additional variable costs, including pass through costs from clinical trial sites.

Payments made under this agreement were $ 3,375 and $ 3,362 for the three months ended June 30, 2025 and 2024 and $ 7,487 and $ 6,149 for the six months ended June 30, 2025 and 2024.

The terms of the agreement require payments upon achievement of various enrollment and project milestones over the estimated ten-year term, however, the agreement may be terminated early for any reason.

Furthermore, the Company incurs additional variable costs, including pass through costs from clinical trial sites.

ATRICURE, INC.

AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(In Thousands, except per share amounts)

made under this agreement were $ 5,144 and $ 312 for the three months ended September 30, 2025 and 2024, respectively, and $ 12,631 and $ 6,461 for the nine months ended September 30, 2025 and 2024, respectively.

In August 2025, the Company entered into a non-cancellable cloud computing arrangement with a term of seven years requiring total payments of $ 3,616 .

Payments under this agreement will begin March 2026.

The Company may, from time to time, become a party to legal proceedings which are subject to many uncertainties.

12 unchanged sentences

A liability has not been recognized related to this matter because any potential loss is not currently probable or reasonably estimable.

ATRICURE, INC.

AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(In Thousands, except per share amounts)

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

3 unchanged sentences

Three Months Ended

June 30, Six Months Ended

September 30, Nine Months Ended

September 30,

2025 2024 2025 2024

6 unchanged sentences

Three Months Ended

June 30, Six Months Ended

September 30, Nine Months Ended

September 30,

2025 2024 2025 2024

4 unchanged sentences

Total International $ 24,962 $ 20,458 $ 72,989 $ 59,790

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

September 30, Nine Months Ended

September 30,

2025 2024 2025 2024

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, 2025 and 2024 was ( 4.4 %) and ( 3.3 %).

The effective tax rate for the six months ended June 30, 2025 and 2024 was ( 4.0 %) and ( 2.1 %).

The effective tax rate for the three months ended September 30, 2025 and 2024 was ( 210.5 %) and ( 4.3 %), respectively.

The effective tax rate for the nine months ended September 30, 2025 and 2024 was ( 5.4 %) and ( 2.7 %), respectively.

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

ATRICURE, INC.

AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(In Thousands, except per share amounts)

The Company's federal, state, local and foreign tax returns are routinely subject to review by various taxing authorities.

The Company's federal, state, local and foreign tax returns are 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.

On July 4, 2025, President Trump signed into law the One Big Beautiful Bill Act ("OBBBA").

Key elements of the Tax Cuts and Jobs Act are made permanent under the OBBBA, including 100% bonus depreciation, domestic research cost expensing and the business interest expense limitation.

On July 4, 2025, the One Big Beautiful Bill Act ("OBBBA") was signed into law.

Key elements of the Tax Cuts and Jobs Act of 2017 are made permanent under the OBBBA, including 100% bonus depreciation, domestic research cost expensing and the business interest expense limitation.

The legislation has multiple effective dates, with certain provisions effective in 2025 and others effective in 2026 or 2027.

FASB ASC 740, "Income Taxes", requires the effects of changes in tax rates and laws on tax balances to be recognized in the period in which the legislation is enacted.

As the date of enactment is after June 30, 2025, there is no financial impact as of and for the six-month period ended June 30, 2025.

The Company is currently evaluating the impact of the OBBBA on its consolidated financial statements.

As the Company maintains a full valuation allowance on its U.S.

deferred tax assets, the legislation did not have a material impact on the income tax expense or effective tax rate for the three months ended September 30, 2025.

EQUITY COMPENSATION PLANS

4 unchanged sentences

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 June 30, 2025, 5,787 shares of common stock have been reserved for issuance under the 2023 Plan, and 3,141 shares were available for future grants.

As of September 30, 2025, 5,787 shares of common stock have been reserved for issuance under the 2023 Plan, and 3,127 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.

ATRICURE, INC.

AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(In Thousands, except per share amounts)

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, 2025, there were 381 shares available for future issuance under the ESPP.

As of September 30, 2025, there were 381 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,

2025 2024 2025 2024

3 unchanged sentences

Total $ 12,424 $ 10,364 $ 33,425 $ 30,020

ATRICURE, INC.

AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(In Thousands, except per share amounts)

COMPREHENSIVE LOSS AND ACCUMULATED OTHER COMPREHENSIVE LOSS

COMPREHENSIVE LOSS AND ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)

In addition to net losses, comprehensive loss includes foreign currency translation adjustments and unrealized gains (losses) on investments.

1 unchanged sentence

Three Months Ended

June 30, Six Months Ended

September 30, Nine Months Ended

September 30,

2025 2024 2025 2024

Total accumulated other comprehensive loss at beginning of period $ ( 230 ) $ ( 697 ) $ ( 1,035 ) $ ( 993 )

Total accumulated other comprehensive income (loss) at beginning of period

$ 749 $ ( 569 ) $ ( 1,035 ) $ ( 993 )

Unrealized Gains (Losses) on Investments

10 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