Cover
Cover - shares | 9 Months Ended | |
Sep. 30, 2021 | Nov. 01, 2021 | |
Cover [Abstract] | ||
Entity Address, City or Town | Mason | |
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2021 | |
Current Fiscal Year End Date | --12-31 | |
Document Transition Report | false | |
Entity File Number | 000-51470 | |
Entity Registrant Name | AtriCure, Inc. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 34-1940305 | |
City Area Code | 513 | |
Local Phone Number | 755-4100 | |
Title of 12(b) Security | Common Stock, $.001 par value | |
Trading Symbol | ATRC | |
Security Exchange Name | NASDAQ | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 45,931,819 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false | |
Entity Central Index Key | 0001323885 | |
Entity Address, Address Line One | 7555 Innovation Way | |
Entity Address, State or Province | OH | |
Entity Address, Postal Zip Code | 45040 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Current assets: | ||
Cash and cash equivalents | $ 39,886 | $ 41,944 |
Short-term investments | 79,860 | 202,274 |
Accounts receivable, less allowance for credit losses of $1,161 and $1,096 | 33,498 | 23,146 |
Inventories | 38,587 | 35,026 |
Prepaid and other current assets | 3,876 | 4,347 |
Total current assets | 195,707 | 306,737 |
Property and equipment, net | 29,901 | 28,290 |
Operating lease right-of-use assets | 2,465 | 1,914 |
Long-term investments | 105,097 | 14,178 |
Intangible assets, net | 43,963 | 128,199 |
Goodwill | 234,781 | 234,781 |
Other noncurrent assets | 1,055 | 440 |
Total Assets | 612,969 | 714,539 |
Current liabilities: | ||
Accounts payable | 17,527 | 12,736 |
Accrued liabilities | 31,846 | 27,984 |
Other current liabilities and current maturities of debt and leases | 4,581 | 8,417 |
Total current liabilities | 53,954 | 49,137 |
Long-term debt | 56,354 | 53,435 |
Finance lease liabilities | 10,317 | 10,969 |
Operating lease liabilities | 1,593 | 1,180 |
Contingent consideration and other noncurrent liabilities | 2,282 | 187,424 |
Total Liabilities | 124,500 | 302,145 |
Commitments and contingencies (Note 7) | ||
Stockholders’ Equity: | ||
Common stock, $0.001 par value, 90,000 shares authorized and 45,933 and 45,346 issued and outstanding | 46 | 45 |
Additional paid-in capital | 755,048 | 742,389 |
Accumulated other comprehensive (loss) income | (213) | 312 |
Accumulated deficit | (266,412) | (330,352) |
Total Stockholders’ Equity | 488,469 | 412,394 |
Total Liabilities and Stockholders’ Equity | $ 612,969 | $ 714,539 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Statement of Financial Position [Abstract] | ||
Accounts receivable, allowance for credit losses | $ 1,161 | $ 1,096 |
Common stock, par value (in usd per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized (in shares) | 90,000,000 | 90,000,000 |
Common stock, shares issued (in shares) | 45,933,000 | 45,346,000 |
Common stock, shares outstanding (in shares) | 45,933,000 | 45,346,000 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Income Statement [Abstract] | ||||
Revenue | $ 70,460 | $ 54,757 | $ 201,111 | $ 148,806 |
Cost of revenue | 18,234 | 14,423 | 50,267 | 41,934 |
Gross profit | 52,226 | 40,334 | 150,844 | 106,872 |
Operating (benefit) expenses: | ||||
Research and development expenses | 11,284 | 10,576 | 34,698 | 32,199 |
Selling, general and administrative expenses | 49,873 | 33,557 | 150,939 | 106,257 |
Change in value of contingent consideration | (189,900) | 192 | (184,800) | (4,854) |
Intangible asset impairment | 82,300 | 0 | 82,300 | 0 |
Total operating (benefit) expenses | (46,443) | 44,325 | 83,137 | 133,602 |
Income (loss) from operations | 98,669 | (3,991) | 67,707 | (26,730) |
Other income (expense): | ||||
Interest expense | (1,449) | (1,232) | (3,835) | (3,691) |
Interest income | 117 | 246 | 354 | 914 |
Other | (191) | 24 | (151) | (70) |
Income (loss) before income tax expense | 97,146 | (4,953) | 64,075 | (29,577) |
Income tax expense (benefit) | 38 | (4) | 135 | 16 |
Net income (loss) | $ 97,108 | $ (4,949) | $ 63,940 | $ (29,593) |
Net income (loss) per share | ||||
Basic net income (loss) per share (in usd per share) | $ 2.15 | $ (0.11) | $ 1.42 | $ (0.71) |
Diluted net income (loss) per share (in usd per share) | $ 2.11 | $ (0.11) | $ 1.39 | $ (0.71) |
Weighted average shares outstanding | ||||
Basic (in shares) | 45,258 | 44,012 | 44,977 | 41,442 |
Diluted (in shares) | 46,100 | 44,012 | 45,996 | 41,442 |
Comprehensive income (loss): | ||||
Unrealized (loss) gain on investments | $ (14) | $ (85) | $ (177) | $ 26 |
Foreign currency translation adjustment | (112) | 238 | (348) | 189 |
Other comprehensive (loss) income | (126) | 153 | (525) | 215 |
Net income (loss) | 97,108 | (4,949) | 63,940 | (29,593) |
Comprehensive income (loss), net of tax | $ 96,982 | $ (4,796) | $ 63,415 | $ (29,378) |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Stockholders' Equity - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Accumulated Deficit | Accumulated Other Comprehensive Income (Loss) |
Beginning Balance, Shares at Dec. 31, 2019 | 39,655 | ||||
Beginning Balance at Dec. 31, 2019 | $ 247,343 | $ 40 | $ 529,658 | $ (282,197) | $ (158) |
Issuance of common stock through public offering, Shares | 4,574 | ||||
Issuance of common stock through public offering | 188,958 | $ 5 | 188,953 | ||
Impact of equity compensation plans, Shares | 792 | ||||
Impact of equity compensation plans | 10,609 | 10,609 | |||
Other comprehensive income (loss) | 215 | 215 | |||
Net income (loss) | (29,593) | (29,593) | |||
Ending Balance, Shares at Sep. 30, 2020 | 45,021 | ||||
Ending Balance at Sep. 30, 2020 | 417,532 | $ 45 | 729,220 | (311,790) | 57 |
Beginning Balance, Shares at Jun. 30, 2020 | 44,939 | ||||
Beginning Balance at Jun. 30, 2020 | 416,862 | $ 45 | 723,754 | (306,841) | (96) |
Impact of equity compensation plans, Shares | 82 | ||||
Impact of equity compensation plans | 5,466 | 5,466 | |||
Other comprehensive income (loss) | 153 | 153 | |||
Net income (loss) | (4,949) | (4,949) | |||
Ending Balance, Shares at Sep. 30, 2020 | 45,021 | ||||
Ending Balance at Sep. 30, 2020 | 417,532 | $ 45 | 729,220 | (311,790) | 57 |
Beginning Balance, Shares at Dec. 31, 2020 | 45,346 | ||||
Beginning Balance at Dec. 31, 2020 | 412,394 | $ 45 | 742,389 | (330,352) | 312 |
Impact of equity compensation plans, Shares | 587 | ||||
Impact of equity compensation plans | 12,660 | $ 1 | 12,659 | 0 | |
Other comprehensive income (loss) | (525) | (525) | |||
Net income (loss) | 63,940 | 63,940 | |||
Ending Balance, Shares at Sep. 30, 2021 | 45,933 | ||||
Ending Balance at Sep. 30, 2021 | 488,469 | $ 46 | 755,048 | (266,412) | (213) |
Beginning Balance, Shares at Jun. 30, 2021 | 45,881 | ||||
Beginning Balance at Jun. 30, 2021 | 385,083 | $ 46 | 748,644 | (363,520) | (87) |
Impact of equity compensation plans, Shares | 52 | ||||
Impact of equity compensation plans | 6,404 | 6,404 | |||
Other comprehensive income (loss) | (126) | (126) | |||
Net income (loss) | 97,108 | 97,108 | |||
Ending Balance, Shares at Sep. 30, 2021 | 45,933 | ||||
Ending Balance at Sep. 30, 2021 | $ 488,469 | $ 46 | $ 755,048 | $ (266,412) | $ (213) |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Cash flows from operating activities: | ||
Net income (loss) | $ 63,940 | $ (29,593) |
Adjustments to reconcile net income (loss) to net cash used in operating activities: | ||
Share-based compensation expense | 20,539 | 16,126 |
Depreciation | 5,672 | 5,937 |
Amortization of intangible assets | 1,936 | 1,444 |
Amortization of deferred financing costs | 628 | 423 |
Loss on disposal of property and equipment | 68 | 93 |
Amortization of investments | 1,847 | 628 |
Change in fair value of contingent consideration | (184,800) | (4,854) |
Intangible asset impairment | 82,300 | 0 |
Other non-cash adjustments to income | 896 | 871 |
Changes in operating assets and liabilities: | ||
Accounts receivable | (10,583) | 2,675 |
Inventories | (3,809) | (4,746) |
Other current assets | 436 | 481 |
Accounts payable | 4,527 | (515) |
Accrued liabilities | 3,987 | (13,688) |
Other noncurrent assets and liabilities | (1,665) | 895 |
Net cash used in operating activities | (14,081) | (23,823) |
Cash flows from investing activities: | ||
Purchases of available-for-sale securities | 160,577 | 200,795 |
Sales and maturities of available-for-sale securities | 190,047 | 49,984 |
Purchases of property and equipment | (7,043) | (4,207) |
Proceeds from capital grant | 0 | 800 |
Net cash provided by (used in) investing activities | 22,427 | (154,218) |
Cash flows from financing activities: | ||
Proceeds from sale of stock, net of offering costs of $0 and $218 | 0 | 188,958 |
Payments on debt and leases | (2,269) | (468) |
Payments of debt fees | 0 | (34) |
Proceeds from stock option exercises and employee stock purchase plan | 10,020 | 7,412 |
Shares repurchased for payment of taxes on stock awards | (17,900) | (12,929) |
Net cash (used in) provided by financing activities | (10,149) | 182,939 |
Effect of exchange rate changes on cash and cash equivalents | (255) | 0 |
Net (decrease) increase in cash and cash equivalents | (2,058) | 4,898 |
Cash and cash equivalents—beginning of period | 41,944 | 28,483 |
Cash and cash equivalents—end of period | 39,886 | 33,381 |
Supplemental cash flow information: | ||
Cash paid for interest | 3,225 | 3,286 |
Cash paid for income taxes, net of refunds | 153 | 206 |
Non-cash investing and financing activities: | ||
Accrued purchases of property and equipment | $ 606 | $ 88 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows (Parentheticals) - USD ($) $ in Thousands | Sep. 30, 2021 | Sep. 30, 2020 |
Statement of Cash Flows [Abstract] | ||
Stock offering costs | $ 0 | $ 218 |
Description of Business and Sum
Description of Business and Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Description of Business and Summary of Significant Accounting Policies | DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Nature of the Business —The “Company” or “AtriCure” consists of AtriCure, Inc. and its wholly-owned subsidiaries. The Company is a leading innovator in treatments for atrial fibrillation (Afib) and left atrial appendage (LAA) management and sells its products to medical centers globally through its direct sales force and distributors. Basis of Presentation —The accompanying interim financial statements have been prepared in accordance with the rules and regulations of the Securities and Exchange Commission (SEC). The accompanying interim financial statements are unaudited, but in the opinion of the Company’s management, contain all normal, recurring adjustments considered necessary to present fairly the financial position, results of operations and cash flows for the periods presented in conformity with accounting principles generally accepted in the United States of America (GAAP) applicable to interim periods. Certain information and footnote disclosures included in annual financial statements prepared in accordance with GAAP have been omitted or condensed. The Company believes the disclosures herein are adequate to make the information presented not misleading. Results of operations are not necessarily indicative of the results expected for the full year or for any future period. The accompanying interim financial statements should be read in conjunction with the Company’s audited financial statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020 filed with the SEC. All intercompany accounts and transactions have been eliminated in consolidation. Reclassification —In the quarter ended September 30, 2021, the Company changed the presentation of its condensed consolidated statement of operations and comprehensive income (loss) to separately disclose the change in contingent consideration, previously reported in selling, general and administrative expenses. Amounts for comparative prior fiscal periods have been reclassified to conform to the current period presentation. This reclassification had no impact on previously reported net income or financial position. Cash and Cash Equivalents —The Company considers highly liquid investments with maturities of three months or less at the date of purchase as cash equivalents. Cash equivalents include demand deposits, money market funds and repurchase agreements on deposit with financial institutions. Investments —The Company invests primarily in government and agency obligations, corporate bonds, commercial paper and asset-backed securities and classifies all investments as available-for-sale. Investments maturing in less than one year are classified as short-term investments. Investments are recorded at fair value, with unrealized gains and losses recorded as accumulated other comprehensive income (loss). Gains and losses are recognized using the specific identification method when securities are sold and are included in interest income. Revenue Recognition— 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. This generally occurs upon shipment of goods to customers. See Note 8 for further discussion on revenue. Sales Returns and Allowances —The Company maintains a provision for potential returns of defective or damaged products and invoice adjustments. The Company adjusts the provision using the expected value method based on historical experience. Increases to the provision reduce revenue, and the provision is included in accrued liabilities. Allowance for Credit Losses on Accounts Receivable —The Company evaluates the expected credit losses on accounts receivable, considering historical credit losses, current customer-specific information and other relevant factors when determining the allowance. An increase to the allowance for credit losses results in a corresponding increase in selling, general and administrative expenses. The Company charges off uncollectible receivables against the allowance when all attempts to collect the receivable have failed. The Company’s history of write-offs has not been significant. Inventories —Inventories are stated at the lower of cost or net realizable value based on the first-in, first-out cost method (FIFO) and consist of raw materials, work in process and finished goods. The Company’s industry is characterized by rapid product development and frequent new product introductions. Uncertain timing of regulatory approvals, variability in product launch strategies and variation in product use all impact inventory reserves for excess, obsolete and expired products. An increase to inventory reserves results in a corresponding increase in cost of revenue. Inventories are written off against the reserve when they are physically disposed. Inventories consist of the following: September 30, December 31, Raw materials $ 13,053 $ 11,966 Work in process 3,357 2,424 Finished goods 22,177 20,636 Inventories $ 38,587 $ 35,026 Property and Equipment —Property and equipment is stated at cost less accumulated depreciation. Depreciation is computed using the straight-line method over the estimated useful lives of assets. The estimated useful life by major asset category is the following: Estimated Useful Life Generators and related equipment 1 - 3 years Building and building under finance lease 15 - 20 years Computers, software and office equipment 3 - 5 years Machinery and equipment 3 - 7 years Furniture and fixtures 3 - 7 years Leasehold improvements 5 - 15 years Equipment under finance leases 3 - 5 years The Company assesses the useful lives of property and equipment at least annually and retires assets no longer in use. Maintenance and repair costs are expensed as incurred. The Company reviews property and equipment for impairment at least annually using its best estimates based on reasonable and supportable assumptions and expected future cash flows. Property and equipment impairments have not been significant. The Company’s radiofrequency (RF) and cryo generators are generally placed with customers that use the Company’s disposable products. The estimated useful lives of generators are based on anticipated usage by customers and may change in future periods with changes in usage or introduction of new technology. Depreciation of generators and related equipment, which is included in cost of revenue, was $532 and $613 for the three months ended September 30, 2021 and 2020 and $1,735 and $1,898 for the nine months ended September 30, 2021 and 2020. As of September 30, 2021 and December 31, 2020, the net carrying value of generators and related equipment included in net property and equipment was $3,609 and $3,410. Leases — The Company leases office, manufacturing and warehouse facilities and computer equipment under leases that qualify as either financing or operating leases, as determined at the inception of the lease arrangement. Lease assets represent the right to use an underlying asset for the lease term, and lease liabilities represent the obligation to make lease payments arising from the lease. Lease assets and liabilities are measured and recorded at the commencement date based on the present value of lease payments over the lease term. Lease assets and liabilities exclude lease incentives and include options to extend or terminate when it is reasonably certain the Company will exercise that option. The Company uses the implicit rate when readily determinable; however, as most leases do not provide an implicit rate, the Company uses its incremental borrowing rate based on the information available at measurement. The Company also applies the short-term lease recognition exemption, recognizing lease payments in profit or loss, for leases that have a lease term of 12 months or less at commencement and do not include an option to extend the lease whose exercise is reasonably certain. For real estate and equipment leases, the Company accounts for the lease and non-lease components as a single lease component. Additionally, the portfolio approach is applied for the operating leases based on the terms of the underlying leases. Operating leases are included in operating lease right-of-use (ROU) assets and operating lease liabilities, while finance leases are included in property and equipment and finance lease liabilities. The short-term portions of both lease liabilities are included in other current liabilities and current maturities of debt and leases. Operating lease expense is recognized on a straight-line basis over the lease term. See Note 6 for further discussion. Intangible Assets —Intangible assets with determinable useful lives are amortized on a straight-line basis over the estimated periods benefited. Intangible assets include In Process Research and Development (IPR&D), representing the value of technology acquired in business combinations that has not yet reached technological feasibility. The primary basis for determining technological feasibility is obtaining specific regulatory approvals. IPR&D is accounted for as an indefinite-lived intangible asset until completion or abandonment of the IPR&D project. Upon completion of the development project, IPR&D will be amortized over its estimated useful life. Due to the nature of IPR&D projects, the Company may experience future delays or failures to obtain regulatory approvals or market clearances, or may discontinue or abandon the project, all which may impact the estimated fair value of the IPR&D project. As a result, the Company may have a full or partial impairment charge related to the IPR&D, calculated as the excess carrying value of the IPR&D asset over the estimated fair value. The Company reviews intangible assets at least annually for impairment using its best estimates based on reasonable and supportable assumptions and projections. The Company performs impairment testing annually on October 1 or more often if impairment indicators are present. Through April 2021, the IPR&D asset included an estimate of the fair value of the pre-market approval (PMA) that could result from the CONVERGE IDE and aMAZE™ IDE clinical trials. The Company received PMA approval for CONVERGE on April 28, 2021 and began amortizing the $44,021 technology asset over an estimated fifteen year life. During the third quarter 2021, the Company identified indicators of impairment for the IPR&D asset that represents an estimate of the fair value of the PMA that could result from the aMAZE clinical trial. As a result of the analysis performed, the Company recorded an impairment loss of $82,300. See Note 3 for further discussion. Goodwill— Goodwill represents the excess of purchase price over the fair value of the net assets acquired in business combinations. The Company’s goodwill is accounted for in a single reporting unit representing the Company as a whole. The Company performs impairment testing annually on October 1 or more often if impairment indicators are present. Contingent Consideration and Other Noncurrent Liabilities— This balance consists of contingent consideration from business combinations, as well as deferred payroll taxes as a result of the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), asset retirement obligations and other contractual obligations. The contingent consideration balance is included in noncurrent liabilities as any settlement is expected to be made primarily in shares of the Company’s common stock pursuant to the SentreHEART, Inc. (SentreHEART) merger agreement. See Note 2 for further discussion. Other Income (Expense) —Other income (expense) consists primarily of foreign currency transaction gains and losses generated by settlements of intercompany balances denominated in Euros and customer invoices transacted in British Pounds. Taxes —Deferred income tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of assets and liabilities and their respective tax bases and operating loss and tax credit carryforwards. Deferred income tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred income tax assets and liabilities from a change in tax rates is recognized in the period that includes the enactment date. The Company’s estimate of the valuation allowance for deferred income tax assets requires significant estimates and judgments about future operating results. Deferred income tax assets are reduced by valuation allowances if, based on the consideration of all available evidence, it is more-likely-than-not that the deferred income tax asset will not be realized. Significant weight is given to evidence that can be objectively verified. The Company evaluates deferred income tax assets on an annual basis to determine if valuation allowances are required. Deferred income tax assets are realized by having sufficient future taxable income to allow the related tax benefits to reduce taxes otherwise payable. The sources of taxable income that may be available to realize the benefit of deferred income tax assets are future taxable income, future reversals of existing taxable temporary differences, carryforwards and tax planning strategies that are both prudent and feasible. In evaluating the need for a valuation allowance, the existence of cumulative losses in recent years is significant objectively verifiable negative evidence that must be overcome by objectively verifiable positive evidence to avoid the need for a valuation allowance. The Company has established a full valuation allowance against substantially all net deferred income tax assets as it is more-likely-than-not that the benefit of the deferred income tax assets will not be recognized in future periods. The Company has not reclassified income tax effects of the Tax Cuts and Jobs Act within accumulated other comprehensive income (loss) to retained earnings due to its full valuation allowance. Earnings Per Share —Basic earnings per share is computed by dividing net income available to common stockholders by the weighted average number of shares of common stock 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 Nine Months Ended 2021 2020 2021 2020 Net income (loss) available to common stockholders $ 97,108 $ (4,949) $ 63,940 $ (29,593) Basic weighted average common shares outstanding 45,258 44,012 44,977 41,442 Effect of dilutive securities 842 — 1,019 — Diluted weighted average common shares outstanding 46,100 44,012 45,996 41,442 Basic net income (loss) per common share $ 2.15 $ (0.11) $ 1.42 $ (0.71) Diluted net income (loss) per common share $ 2.11 $ (0.11) $ 1.39 $ (0.71) For the three and nine months ended September 30, 2020, net loss per share excludes the effect of 2,687 shares because the effect would be anti-dilutive. The computation of diluted earnings per share in the three and nine month periods ended September 30, 2021 excludes 491 and 582 shares because the effect would be anti-dilutive. Comprehensive Income (Loss) and Accumulated Other Comprehensive Income (Loss) —In addition to net income (loss), the comprehensive income (loss) includes foreign currency translation adjustments and unrealized gains (losses) on investments. Accumulated other comprehensive income (loss) consisted of the following, net of tax: Three Months Ended Nine Months Ended 2021 2020 2021 2020 Total accumulated other comprehensive income (loss) at beginning of period $ (87) $ (96) $ 312 $ (158) Unrealized Gains (Losses) on Investments Balance at beginning of period $ (109) $ 211 $ 54 $ 100 Other comprehensive (loss) income before reclassifications (14) (85) (177) 7 Amounts reclassified from accumulated other comprehensive income (loss) to other income (expense) — — — 19 Balance at end of period $ (123) $ 126 $ (123) $ 126 Foreign Currency Translation Adjustment Balance at beginning of period $ 22 $ (307) $ 258 $ (258) Other comprehensive (loss) income before reclassifications (293) 290 (555) 177 Amounts reclassified from accumulated other comprehensive income (loss) to other income (expense) 181 (52) 207 12 Balance at end of period $ (90) $ (69) $ (90) $ (69) Total accumulated other comprehensive income (loss) at end of period $ (213) $ 57 $ (213) $ 57 Research and Development Costs —Research and development costs are expensed as incurred. These costs include compensation and other internal and external costs associated with the development and research of new and existing products or concepts, preclinical studies, clinical trials and related regulatory activities, as well as amortization of technology assets. Advertising Costs — The Company expenses advertising costs as incurred. Advertising costs were not significant during the three and nine months ended September 30, 2021 and 2020. Share-Based Compensation —The Company records share-based compensation for all share-based payment awards, including stock options, restricted stock awards, restricted stock units, performance shares (PSAs) and stock purchases related to an employee stock purchase plan, based on estimated fair values. The value of the portion of an award that is ultimately expected to vest, net of estimated forfeitures, is recognized as expense over the service period. The Company estimates forfeitures at the time of grant and revises them, as necessary, in subsequent periods as actual forfeitures differ from those estimates. The Company recognized share-based compensation expense of $6,794 and $5,549 for the three months ended September 30, 2021 and 2020 and $20,539 and $16,126 for the nine months ended September 30, 2021 and 2020. The Company estimates the fair value of time-based options on the date of grant using the Black-Scholes option-pricing model (Black-Scholes model). The Company’s determination of the fair value is affected by the Company’s stock price as well as several subjective assumptions, such as the Company’s expected stock price volatility over the term of the awards and actual and projected employee stock option exercise behaviors. The Company estimates the fair value of restricted stock awards and restricted stock units based upon the grant date closing market price of the Company’s common stock. The Company estimates the fair value of PSAs with a performance condition based on the closing stock price on the date of grant assuming the performance goal will be achieved and may adjust expense over the performance period based on changes to estimates of performance target achievement. If such goals are not met or service is not rendered for the requisite service period, no compensation cost is recognized, and any recognized compensation cost will be reversed. For PSAs with a market condition, a Monte Carlo simulation is performed to estimate the fair value on the date of grant, and compensation cost is recognized over the requisite service period as the employee renders service, even if the market condition is not satisfied. The Company’s determination of the fair value is affected by the Company and the peer group’s stock price, as defined by the award agreement, at the beginning of the service period and grant date, the expected volatility of the Company and peer group’s stock price over the performance period and the correlation coefficient of the daily returns for the Company and peer group over the performance period. The Company also has an employee stock purchase plan (ESPP) which is available to all eligible employees as defined by the plan document. Under the ESPP, shares of the Company’s common stock may be purchased at a discount. The Company estimates the number of shares to be purchased under the ESPP at the beginning of each purchase period based upon the fair value of the stock at the beginning of the purchase period using the Black-Scholes model and records estimated compensation expense during the purchase period. Expense is adjusted at the time of stock purchase. 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. Estimates are based on historical experience, where applicable, and other assumptions believed to be reasonable by management. Actual results could differ from those estimates. |
Fair Value
Fair Value | 9 Months Ended |
Sep. 30, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value | FAIR VALUEThe 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. Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs. The fair value hierarchy is based on three levels of inputs, of which the first two are considered observable and the last unobservable, that may be used to measure fair value: • Level 1—Quoted prices in active markets for identical assets or liabilities. • Level 2—Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. • Level 3—Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. The Company classifies cash and investments in government and agency obligations, accounts receivable, short-term other assets, accounts payable and accrued liabilities as Level 1 within the fair value hierarchy. The carrying amounts of these assets and liabilities approximate their fair value due to their relatively short-term nature. Cash equivalents and investments in corporate bonds, commercial paper and asset-backed securities are classified as Level 2 within the fair value hierarchy. The fair value of fixed term debt is estimated by calculating the net present value of future debt payments at current market interest rates and is classified as Level 2. The book value of the Company’s fixed term debt approximates its fair value because the interest rate varies with market rates. The following table represents the Company’s fair value hierarchy for its financial assets and liabilities measured at fair value on a recurring basis as of September 30, 2021: Quoted Prices in Significant Other Significant Other Total Assets: Money market funds $ — $ 36,262 $ — $ 36,262 Commercial paper — 28,968 — 28,968 Government and agency obligations 27,936 — — 27,936 Corporate bonds — 98,505 — 98,505 Asset-backed securities — 29,548 — 29,548 Total assets $ 27,936 $ 193,283 $ — $ 221,219 Liabilities: Contingent consideration $ — $ — $ — $ — Total liabilities $ — $ — $ — $ — 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, 2021. The following table represents the Company’s fair value hierarchy for its financial assets and liabilities measured at fair value on a recurring basis as of December 31, 2020: Quoted Prices in Significant Other Significant Other Total Assets: Money market funds $ — $ 38,452 $ — $ 38,452 Commercial paper — 76,914 — 76,914 Government and agency obligations 45,399 — — 45,399 Corporate bonds — 73,730 — 73,730 Asset-backed securities — 20,409 — 20,409 Total assets $ 45,399 $ 209,505 $ — $ 254,904 Liabilities: Contingent consideration $ — $ — $ 184,800 184,800 Total liabilities $ — $ — $ 184,800 $ 184,800 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. As of December 31, 2020, the terms of the contingent consideration arrangements under the nContact merger agreement expired. The Company measures contingent consideration liabilities using unobservable inputs by applying the probability-weighted scenario method, an income approach. Various key assumptions, such as the probability and timing of achievement of the agreed milestones, are significant to the determination of fair value of contingent consideration arrangements and are not observable in the market, thus representing a Level 3 measurement within the fair value hierarchy. Contingent consideration liabilities are periodically measured, with changes in the estimated fair value reflected in operating expenses. Changes in the discount rate, projected time until payment and probability of payment may result in materially different fair value measurements. A decrease in the discount rate would result in a higher fair value measurement, while a decrease in the probability of payment would result in a lower fair value measurement. Movement in the forecasted timing of achievement to later in the milestone periods would cause a decrease in the fair value measurement. In July 2021, the Company was informed that data from the aMAZE clinical trial did not achieve statistical superiority. Specifically, while the trial met the safety endpoint, the trial did not meet the primary efficacy endpoint. As the contingent consideration arrangements were success-based milestone payments, the fair value of the SentreHEART contingent consideration was remeasured as of September 30, 2021 resulting in a decrease in fair value due to changes in estimates related to both the forecasted timing and probability of achievement of the regulatory and reimbursement milestones. Specifically, the Company assessed the projected probability of payment during the contractual achievement periods to be remote as of September 30, 2021, resulting in no remaining fair value. Accordingly, the Company recorded a credit to operating expenses of $189,900 in the third quarter 2021, reflecting the change in fair value of the contingent consideration during the three months ended September 30, 2021. The following table represents the Company’s Level 3 fair value measurements using significant other unobservable inputs for acquisition-related contingent consideration: Nine Months Ended Twelve Months Ended December 31, 2020 Beginning Balance $ 184,800 $ 185,157 Amounts acquired — — Changes in fair value included in earnings (184,800) (357) Ending Balance $ — $ 184,800 |
Intangible Assets
Intangible Assets | 9 Months Ended |
Sep. 30, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets | INTANGIBLE ASSETS The following table provides a summary of the Company’s intangible assets: September 30, 2021 December 31, 2020 Estimated Useful Life Cost Accumulated Cost Accumulated Technology 5 - 15 years $ 55,712 $ 11,749 $ 11,691 $ 9,813 IPR&D — — 126,321 — Total $ 55,712 $ 11,749 $ 138,012 $ 9,813 Following PMA approval of the EPi-Sense ® System in the second quarter 2021, the related IPR&D asset with a value of $44,021 was determined to have a finite useful life. The intangible asset is now included in technology assets and is amortized over an estimated fifteen year life. As a result of data from the aMAZE clinical trial not achieving statistical superiority, the Company identified indicators of impairment for the IPR&D asset that represents an estimate of the fair value of the PMA that could result from the aMAZE clinical trial. During the third quarter 2021, an impairment test was performed using estimates based on reasonable and supportable assumptions and projections of expected future cash flows, and the Company recorded an impairment charge of $82,300, reducing the carrying value of the aMAZE IPR&D asset to $0 at September 30, 2021. This impairment charge is reflected as a component of operating expenses. Amortization expense of intangible assets with definite lives, which excludes IPR&D assets, was $971 and $467 for the three months ended September 30, 2021 and 2020 and $1,936 and $1,444 for the nine months ended September 30, 2021 and 2020. Future amortization expense is projected as follows: 2021 (excluding the nine months ended September 30, 2021) $ 972 2022 3,653 2023 2,953 2024 2,953 2025 2,953 2026 and thereafter 30,479 Total $ 43,963 |
Accrued Liabilities
Accrued Liabilities | 9 Months Ended |
Sep. 30, 2021 | |
Payables and Accruals [Abstract] | |
Accrued Liabilities | ACCRUED LIABILITIES Accrued liabilities consisted of the following: September 30, December 31, Accrued compensation and employee-related expenses $ 26,670 $ 17,730 Sales returns and allowances 2,611 1,889 Accrued taxes and value-added taxes payable 1,487 1,256 Accrued royalties 783 703 Other accrued liabilities 285 406 Accrued legal settlement 10 6,000 Total $ 31,846 $ 27,984 |
Indebtedness
Indebtedness | 9 Months Ended |
Sep. 30, 2021 | |
Debt Disclosure [Abstract] | |
Indebtedness | INDEBTEDNESS Credit Facility. The Company has a Loan and Security Agreement (Loan Agreement) with Silicon Valley Bank (SVB), which includes a $60,000 term loan and a $20,000 revolving line of credit. The total combined term loan and revolving line of credit outstanding under the Loan Agreement cannot exceed $70,000 at any time prior to SVB’s consent. The term loan and revolving credit facility both mature or expire, as applicable, on August 1, 2024. On February 8, 2021, the Company and SVB entered into an amendment to the Loan Agreement which modified the covenant reporting requirements and allowed the Company to defer the term loan principal payments until September 2021. The amendment was treated as a debt modification. Term loan principal payments commenced September 1, 2021. The term loan accrues interest at the greater of the Prime Rate or 5.00%, plus 0.75% and is subject to an additional 3.00% fee on the $60,000 term loan principal payable at maturity or upon acceleration or prepayment of the term loan. The Company is accruing the 3.00% fee over the term of the Loan Agreement, with $1,020 accrued in the current portion of the outstanding loan balance as of September 30, 2021. Additionally, the unamortized original financing costs related to the term loan of $313 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 0.15% of the revolving line of credit, and any borrowings thereunder bear interest at the greater of the Prime Rate or 5.00%. Borrowing availability under the revolving credit facility is based on the lesser of $20,000 or a borrowing base calculation as defined by the Loan Agreement. As of September 30, 2021, the Company had no borrowings under the revolving credit facility and had borrowing availability of approximately $10,000. Financing costs related to the revolving line of credit are included in other assets in the Condensed Consolidated Balance Sheets and amortized ratably over the twelve-month period of the annual fee. 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. Specified assets have been pledged as collateral. Effective November 1, 2021, the Company and SVB entered into the Sixth Amendment to the Loan and Security Agreement (Amended Loan and Security Agreement). The agreement provides for a $60,000 term loan, with an option to make available an additional $30,000 in term loan borrowings, and a $30,000 revolving line of credit. The Amended Loan and Security Agreement has a five year term, expiring November 2026. Principal payments are to be made ratably commencing 24 months after the inception of the loan 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. 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 revolving line of credit is subject to an annual facility fee of 0.20%, and any borrowings bear interest at the floating Prime Rate. The Amended Loan and Security Agreement also provides for certain prepayment and early termination fees, as well as establishes a liquidity covenant, along with other customary terms and conditions similar to those in the Company's current agreement with SVB. This refinancing has been treated as a debt modification, with the $1,667 principal repayment made in October 2021 classified as current, while the remaining borrowings of $56,666 have been classified as long-term in the Condensed Consolidated Balance Sheet as of September 30, 2021. Future maturities of long-term debt, excluding the term loan final fee, and after consideration of the refinancing transaction in November 2021, are projected as follows: 2021 (excluding the nine months ended September 30, 2021) $ — 2022 — 2023 3,333 2024 20,000 2025 20,000 2026 16,667 Total long-term debt $ 60,000 |
Leases
Leases | 9 Months Ended |
Sep. 30, 2021 | |
Leases [Abstract] | |
Lessee, Operating Leases | LEASES The Company has operating and finance leases for offices, manufacturing and warehouse facilities and computer equipment. The Company’s leases have remaining lease terms of 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 for the majority of leases as exercise is not reasonably certain. The weighted average remaining lease term and the discount rate for the reporting periods are as follows: September 30, 2021 December 31, 2020 Operating Leases Weighted average remaining lease term (years) 3.3 3.2 Weighted average discount rate 5.60 % 5.68 % Finance leases Weighted average remaining lease term (years) 8.9 9.7 Weighted average discount rate 6.91 % 6.91 % A letter of credit for $1,250 was issued to the lessor of the Company's corporate headquarters building in October 2015, which is renewed annually and remains outstanding as of September 30, 2021. The components of lease expense are as follows: Three Months Ended Nine Months Ended 2021 2020 2021 2020 Operating lease cost $ 234 $ 293 $ 715 $ 986 Finance lease cost: Amortization of right-of-use assets 267 260 765 786 Interest on lease liabilities 196 209 599 638 Total finance lease cost $ 463 $ 469 $ 1,364 $ 1,424 Short term lease expense was not significant for the three and nine months ended September 30, 2021 and 2020. Supplemental cash flow information related to leases was as follows: Nine Months Ended Nine Months Ended Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 748 $ 944 Operating cash flows from finance leases 597 638 Financing cash flows from finance leases 599 468 Right-of-use assets obtained in exchange for lease obligations: Operating Leases 1,221 1,691 Finance Leases — — Early termination of operating lease — 2,473 Supplemental balance sheet information related to leases was as follows: September 30, 2021 December 31, 2020 Operating Leases Operating lease right-of-use assets $ 2,465 $ 1,914 Other current liabilities and current maturities of debt and leases 1,020 927 Operating lease liabilities 1,593 1,180 Total operating lease liabilities $ 2,613 $ 2,107 Finance Leases Property and equipment, at cost $ 14,607 $ 14,659 Accumulated depreciation (5,862) (5,247) Property and equipment, net $ 8,745 $ 9,412 Other current liabilities and current maturities of debt and leases $ 874 $ 823 Finance lease liabilities 10,317 10,969 Total finance lease liabilities $ 11,191 $ 11,792 Maturities of lease liabilities as of September 30, 2021 were as follows: Operating Leases Finance Leases 2021 (excluding the nine months ended September 30, 2021) $ 252 $ 406 2022 967 1,629 2023 682 1,652 2024 609 1,674 2025 348 1,625 2026 and thereafter — 8,172 Total payments $ 2,858 $ 15,158 Less imputed interest (245) (3,967) Total $ 2,613 $ 11,191 |
Lessee, Finance Leases | LEASES The Company has operating and finance leases for offices, manufacturing and warehouse facilities and computer equipment. The Company’s leases have remaining lease terms of 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 for the majority of leases as exercise is not reasonably certain. The weighted average remaining lease term and the discount rate for the reporting periods are as follows: September 30, 2021 December 31, 2020 Operating Leases Weighted average remaining lease term (years) 3.3 3.2 Weighted average discount rate 5.60 % 5.68 % Finance leases Weighted average remaining lease term (years) 8.9 9.7 Weighted average discount rate 6.91 % 6.91 % A letter of credit for $1,250 was issued to the lessor of the Company's corporate headquarters building in October 2015, which is renewed annually and remains outstanding as of September 30, 2021. The components of lease expense are as follows: Three Months Ended Nine Months Ended 2021 2020 2021 2020 Operating lease cost $ 234 $ 293 $ 715 $ 986 Finance lease cost: Amortization of right-of-use assets 267 260 765 786 Interest on lease liabilities 196 209 599 638 Total finance lease cost $ 463 $ 469 $ 1,364 $ 1,424 Short term lease expense was not significant for the three and nine months ended September 30, 2021 and 2020. Supplemental cash flow information related to leases was as follows: Nine Months Ended Nine Months Ended Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 748 $ 944 Operating cash flows from finance leases 597 638 Financing cash flows from finance leases 599 468 Right-of-use assets obtained in exchange for lease obligations: Operating Leases 1,221 1,691 Finance Leases — — Early termination of operating lease — 2,473 Supplemental balance sheet information related to leases was as follows: September 30, 2021 December 31, 2020 Operating Leases Operating lease right-of-use assets $ 2,465 $ 1,914 Other current liabilities and current maturities of debt and leases 1,020 927 Operating lease liabilities 1,593 1,180 Total operating lease liabilities $ 2,613 $ 2,107 Finance Leases Property and equipment, at cost $ 14,607 $ 14,659 Accumulated depreciation (5,862) (5,247) Property and equipment, net $ 8,745 $ 9,412 Other current liabilities and current maturities of debt and leases $ 874 $ 823 Finance lease liabilities 10,317 10,969 Total finance lease liabilities $ 11,191 $ 11,792 Maturities of lease liabilities as of September 30, 2021 were as follows: Operating Leases Finance Leases 2021 (excluding the nine months ended September 30, 2021) $ 252 $ 406 2022 967 1,629 2023 682 1,652 2024 609 1,674 2025 348 1,625 2026 and thereafter — 8,172 Total payments $ 2,858 $ 15,158 Less imputed interest (245) (3,967) Total $ 2,613 $ 11,191 |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | COMMITMENTS AND CONTINGENCIES Royalty Agreements. The Company has royalty agreements in place with terms that include payment of royalties of 3% to 5% of specified product sales. One royalty agreement remains in effect through 2025, while the other agreement remains in effect until the later of 2023 or expiration of the underlying patents or patent applications. Parties to the royalty agreements have the right at any time to terminate the agreement immediately for cause. Royalty expense of $792 and $699 was recorded for the three months ended September 30, 2021 and 2020 and $2,356 and $1,880 for the nine months ended September 30, 2021 and 2020. Purchase Agreements. The Company enters into standard purchase agreements with vendors in the ordinary course of business, generally with terms that allow cancellation. The Company is committed to funding renovation of a recently purchased building for additional manufacturing capacity. The Company estimates the cost of the construction project to be approximately $5,500. Legal. The Company may, from time to time, become a party to legal proceedings. Such matters are subject to many uncertainties and to outcomes of which the financial impacts are not predictable with assurance and that may not be known for extended periods of time. A liability is established once management determines a loss is probable and an amount that can be reasonably estimated. The Company received a Civil Investigative Demand (CID) from the U.S. Department of Justice (USDOJ) in December 2017 stating that it is investigating the Company to determine whether the Company has violated the False Claims Act, relating to the promotion of certain medical devices related to the treatment of atrial fibrillation for off-label use and submitted or caused to be submitted false claims to certain federal and state health care programs for medically unnecessary healthcare services related to the treatment of atrial fibrillation. The CID covers the period from January 2010 to December 2017 and required the production of documents and answers to written interrogatories. The Company had no knowledge of the investigation prior to receipt of the CID. The Company maintains rigorous policies and procedures to promote compliance with the False Claims Act and other applicable regulatory requirements. The Company provided the USDOJ with documents and answers to the written interrogatories. In March 2021, USDOJ informed the Company that its investigation was based on a lawsuit brought on behalf of the United States and the various state and local governments under the qui tam provisions of federal and certain state and local False Claims Acts. Although the USDOJ and all of the state and local governments declined to intervene, the relator continues to pursue the case. The Company is vigorously contesting the case, however, 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. The Company acquired nContact Surgical, Inc. pursuant to a merger agreement dated October 4, 2015. The merger agreement provided for contingent consideration or “earnout” to be paid upon attaining specified regulatory approvals and clinical and revenue milestones. The merger agreement’s earnout provisions required the Company to deliver periodic earnout reports to a designated representative of former nContact stockholders. In response to the reports delivered in and after February 2018, the Company received letters from representatives purporting to serve as “earnout objection statements” (as that term is defined in the merger agreement) and claim that for purposes of determining the commercial milestone payment, the |
Revenue
Revenue | 9 Months Ended |
Sep. 30, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | REVENUE Revenue is generated primarily from the sale of medical devices. The Company recognizes revenue in an amount that reflects the consideration the Company expects to be entitled to in exchange for those devices when control of promised devices is transferred to customers. At contract inception, the Company assesses the products promised in its contracts with customers and identifies a performance obligation for each promise to transfer to the customer a product that is distinct. The Company’s devices are distinct and represent performance obligations. These performance obligations are satisfied, and revenue is recognized at a point in time upon shipment or delivery of products. Sales of devices are categorized as follows: open ablation, minimally invasive ablation, appendage management and valve tools. Shipping and handling activities performed after control over products transfers to customers are considered activities to fulfill the promise to transfer the products rather than as separate promises to customers. Products are sold primarily through a direct sales force and through distributors in certain international markets. Terms of sale are generally consistent for both end-users and distributors except that payment terms are generally net 30 days for end-users and net 60 days for distributors, with some exceptions. The Company does not maintain any post-shipping obligations to customers. No installation, calibration or testing of products is performed by the Company subsequent to shipment in order to render products operational. Significant judgments and estimates involved in the Company’s recognition of revenue include the estimation of a provision for returns. The Company estimates the provision for sales returns and allowances using the expected value method based on historical experience and other factors that we believe could impact our expected returns, including defective or damaged products and invoice adjustments. In the normal course of business, the Company generally does not accept product returns unless a product is defective as manufactured. The Company does not provide customers with the right to a refund. The Company expects to be entitled to the total consideration for the products ordered by customers as product pricing is fixed according to the terms of customer contracts and payment terms are short. Payment terms fall within the one-year guidance for the practical expedient which allows the Company to forgo adjustment of the promised amount of consideration for the effects of a significant financing component. The Company excludes taxes assessed by governmental authorities on revenue-producing transactions from the measurement of the transaction price. Costs associated with product sales include commissions and royalties. Considering that product sales are performance obligations in contracts that are satisfied at a point in time, commission expense associated with product sales and royalties paid based on sales of certain products is incurred at that point in time rather than over time. Therefore, the Company applies the practical expedient and recognizes commissions and royalties as expense when incurred because the expense is incurred at a point in time and the amortization period is less than one year. Commissions are included in selling expense while royalties are included in cost of revenue. See Note 11 for disaggregated revenue by geographic area and by product category. |
Income Tax Provision
Income Tax Provision | 9 Months Ended |
Sep. 30, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Tax Provision | INCOME TAX PROVISIONThe Company files federal, state, and foreign income tax returns in jurisdictions with varying statutes of limitations. The Company uses the asset and liability method to determine its provision for income taxes. The Company’s provision for income taxes in interim periods is computed by applying the discrete method and is based on financial results through the end of the interim period. The Company determined that using the discrete method is more appropriate than using the annual effective tax rate method. The Company is unable to estimate the annual effective tax rate with sufficient precision to use the effective tax rate method, which requires a full-year projection of income. The effective tax rate for the three months ended September 30, 2021 and 2020 was 0.04% and 0.08%. The effective tax rate for the nine months ended September 30, 2021 and 2020 was 0.21% and (0.05%) The Company’s worldwide effective tax rate differs from the US statutory rate of 21% primarily due to the Company’s valuation allowance in the United States and Netherlands.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 of net 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
Equity Compensation Plans | 9 Months Ended |
Sep. 30, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Equity Compensation Plans | EQUITY COMPENSATION PLANS The Company has two share-based incentive plans: the 2014 Stock Incentive Plan (2014 Plan) and the 2018 Employee Stock Purchase Plan (ESPP). 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 or restricted stock units (collectively RSAs), nonstatutory stock options, performance share awards (PSAs) or stock appreciation rights to Company employees, directors and consultants. 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 September 30, 2021, 12,899 shares of common stock had been reserved for issuance under the 2014 Plan, and 1,471 shares were available for future grants. Stock options, restricted stock awards and restricted stock units granted generally vest at a rate of 33.3% on the first, second and third anniversaries of the grant date. Stock options generally expire ten years from the date of grant. The award agreements for the PSAs provide that each PSA that vests represents the right to receive one share of the Company’s common stock at the end of the performance period. With respect to the PSAs, the number of shares that vest and are issued to the recipient is based upon the Company’s performance with respect to specified targets at the end of the three year performance period. Payout opportunities range from 0% to 100% of the target amount for awards granted prior to 2021, while awards granted in 2021 have payout opportunities ranging from 0% to 200% of the target amount. These ranges are used to calculate the number of shares that will be issuable when the award vests. All or a portion of the PSAs may vest following a change of control or a termination of service by reason of death or disability. PSAs granted prior to 2021 have performance targets based on the Company’s revenue compound annual growth rate (CAGR) over the three year performance period. PSAs granted in 2021 have two equally weighted performance targets measured at the end of the three year performance period: (i) the Company’s revenue CAGR; and (ii) relative total shareholder return (TSR). TSR is measured against the Nasdaq Health Care Index constituents and the 20-trading-day average stock price prior to the end of the performance period over the 20- trading-day average stock price prior to the beginning of the performance period. The performance and market condition payouts will be determined independently and accumulated to determine the total payout for the three year performance period, subject to the maximum payout defined in the PSA agreements. Employee Stock Purchase Plan Under the ESPP, shares of the Company’s common stock may be purchased at a discount (15%) of the lesser of the closing price of the Company’s common stock on the first trading day or the last trading day of the offering period. The offering period (currently six months) and the offering price are subject to change. Participants may not purchase a value of more than $25 of the Company’s common stock in a calendar year and may not purchase a value of more than 3 shares during an offering period. As of September 30, 2021, there were 338 shares available for future issuance under the ESPP. Expense Information Under FASB ASC 718 The following table summarizes the allocation of share-based compensation expense: Three Months Ended Nine Months Ended 2021 2020 2021 2020 Cost of revenue $ 622 $ 366 $ 1,639 $ 1,004 Research and development expenses 1,077 859 3,097 2,531 Selling, general and administrative expenses 5,095 4,324 15,803 12,591 Total $ 6,794 $ 5,549 $ 20,539 $ 16,126 |
Segment and Geographic Informat
Segment and Geographic Information | 9 Months Ended |
Sep. 30, 2021 | |
Segment Reporting [Abstract] | |
Segment and Geographic Information | SEGMENT AND GEOGRAPHIC INFORMATION The Company develops, manufactures, and sells devices designed primarily for the surgical ablation of cardiac tissue, systems designed for the exclusion of the left atrial appendage, and devices designed to block pain by temporarily ablating peripheral nerves. These devices are developed and marketed to a broad base of medical centers globally. Management considers all such sales to be part of a single operating segment. Revenue attributed to customer geographic locations is as follows: Three Months Ended Nine Months Ended 2021 2020 2021 2020 United States $ 57,537 $ 44,701 $ 167,916 $ 121,838 Europe 7,770 6,514 20,551 16,775 Asia 4,734 3,196 11,695 9,367 Other international 419 346 949 826 Total international 12,923 10,056 33,195 26,968 Total revenue $ 70,460 $ 54,757 $ 201,111 $ 148,806 United States revenue by product type is as follows: Three Months Ended Nine Months Ended 2021 2020 2021 2020 Open ablation $ 23,779 $ 19,911 $ 69,693 $ 54,679 Minimally invasive ablation 9,990 6,979 28,077 18,295 Appendage management 23,401 17,430 69,144 47,870 Total ablation and appendage management 57,170 44,320 166,914 120,844 Valve tools 367 381 1,002 994 Total United States $ 57,537 $ 44,701 $ 167,916 $ 121,838 International revenue by product type is as follows: Three Months Ended Nine Months Ended 2021 2020 2021 2020 Open ablation $ 6,699 $ 4,907 $ 16,629 $ 13,766 Minimally invasive ablation 1,849 1,692 4,698 4,346 Appendage management 4,373 3,445 11,825 8,778 Total ablation and appendage management 12,921 10,044 33,152 26,890 Valve tools 2 12 43 78 Total international $ 12,923 $ 10,056 $ 33,195 $ 26,968 The Company’s long-lived assets are located primarily in the United States, except for $1,415 as of September 30, 2021 and $1,693 as of December 31, 2020 located primarily in Europe. |
Description of Business and S_2
Description of Business and Summary of Significant Accounting Policies (Policy) | 9 Months Ended |
Sep. 30, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Nature of the Business | Nature of the Business —The “Company” or “AtriCure” consists of AtriCure, Inc. and its wholly-owned subsidiaries. The Company is a leading innovator in treatments for atrial fibrillation (Afib) and left atrial appendage (LAA) management and sells its products to medical centers globally through its direct sales force and distributors. |
Basis of Presentation | Basis of Presentation —The accompanying interim financial statements have been prepared in accordance with the rules and regulations of the Securities and Exchange Commission (SEC). The accompanying interim financial statements are unaudited, but in the opinion of the Company’s management, contain all normal, recurring adjustments considered necessary to present fairly the financial position, results of operations and cash flows for the periods presented in conformity with accounting principles generally accepted in the United States of America (GAAP) applicable to interim periods. Certain information and footnote disclosures included in annual financial statements prepared in accordance with GAAP have been omitted or condensed. The Company believes the disclosures herein are adequate to make the information presented not misleading. Results of operations are not necessarily indicative of the results expected for the full year or for any future period. The accompanying interim financial statements should be read in conjunction with the Company’s audited financial statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020 filed with the SEC. All intercompany accounts and transactions have been eliminated in consolidation. |
Reclassification | Reclassification—In the quarter ended September 30, 2021, the Company changed the presentation of its condensed consolidated statement of operations and comprehensive income (loss) to separately disclose the change in contingent consideration, previously reported in selling, general and administrative expenses. Amounts for comparative prior fiscal periods have been reclassified to conform to the current period presentation. This reclassification had no impact on previously reported net income or financial position. |
Cash and Cash Equivalents | Cash and Cash Equivalents —The Company considers highly liquid investments with maturities of three months or less at the date of purchase as cash equivalents. Cash equivalents include demand deposits, money market funds and repurchase agreements on deposit with financial institutions. |
Investments | Investments —The Company invests primarily in government and agency obligations, corporate bonds, commercial paper and asset-backed securities and classifies all investments as available-for-sale. Investments maturing in less than one year are classified as short-term investments. Investments are recorded at fair value, with unrealized gains and losses recorded as accumulated other comprehensive income (loss). Gains and losses are recognized using the specific identification method when securities are sold and are included in interest income. |
Revenue Recognition | Revenue Recognition— 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. This generally occurs upon shipment of goods to customers. See Note 8 for further discussion on revenue. |
Sales Returns and Allowances | Sales Returns and Allowances —The Company maintains a provision for potential returns of defective or damaged products and invoice adjustments. The Company adjusts the provision using the expected value method based on historical experience. Increases to the provision reduce revenue, and the provision is included in accrued liabilities. |
Allowance for Credit Losses on Accounts Receivable | Allowance for Credit Losses on Accounts Receivable —The Company evaluates the expected credit losses on accounts receivable, considering historical credit losses, current customer-specific information and other relevant factors when determining the allowance. An increase to the allowance for credit losses results in a corresponding increase in selling, general and administrative expenses. The Company charges off uncollectible receivables against the allowance when all attempts to collect the receivable have failed. The Company’s history of write-offs has not been significant. |
Inventories | Inventories —Inventories are stated at the lower of cost or net realizable value based on the first-in, first-out cost method (FIFO) and consist of raw materials, work in process and finished goods. The Company’s industry is characterized by rapid product development and frequent new product introductions. Uncertain timing of regulatory approvals, variability in product launch strategies and variation in product use all impact inventory reserves for excess, obsolete and expired products. An increase to inventory reserves results in a corresponding increase in cost of revenue. Inventories are written off against the reserve when they are physically disposed. |
Property and Equipment | Property and Equipment—Property and equipment is stated at cost less accumulated depreciation. Depreciation is computed using the straight-line method over the estimated useful lives of assets.The Company assesses the useful lives of property and equipment at least annually and retires assets no longer in use. Maintenance and repair costs are expensed as incurred. The Company reviews property and equipment for impairment at least annually using its best estimates based on reasonable and supportable assumptions and expected future cash flows. Property and equipment impairments have not been significant. |
Leases | Leases — The Company leases office, manufacturing and warehouse facilities and computer equipment under leases that qualify as either financing or operating leases, as determined at the inception of the lease arrangement. Lease assets represent the right to use an underlying asset for the lease term, and lease liabilities represent the obligation to make lease payments arising from the lease. Lease assets and liabilities are measured and recorded at the commencement date based on the present value of lease payments over the lease term. Lease assets and liabilities exclude lease incentives and include options to extend or terminate when it is reasonably certain the Company will exercise that option. The Company uses the implicit rate when readily determinable; however, as most leases do not provide an implicit rate, the Company uses its incremental borrowing rate based on the information available at measurement. The Company also applies the short-term lease recognition exemption, recognizing lease payments in profit or loss, for leases that have a lease term of 12 months or less at commencement and do not include an option to extend the lease whose exercise is reasonably certain. For real estate and equipment leases, the Company accounts for the lease and non-lease components as a single lease component. Additionally, the portfolio approach is applied for the operating leases based on the terms of the underlying leases. Operating leases are included in operating lease right-of-use (ROU) assets and operating lease liabilities, while finance leases are included in property and equipment and finance lease liabilities. The short-term portions of both lease liabilities are included in other current liabilities and current maturities of debt and leases. Operating lease expense is recognized on a straight-line basis over the lease term. See Note 6 for further discussion. |
Intangible Assets | Intangible Assets —Intangible assets with determinable useful lives are amortized on a straight-line basis over the estimated periods benefited. Intangible assets include In Process Research and Development (IPR&D), representing the value of technology acquired in business combinations that has not yet reached technological feasibility. The primary basis for determining technological feasibility is obtaining specific regulatory approvals. IPR&D is accounted for as an indefinite-lived intangible asset until completion or abandonment of the IPR&D project. Upon completion of the development project, IPR&D will be amortized over its estimated useful life. Due to the nature of IPR&D projects, the Company may experience future delays or failures to obtain regulatory approvals or market clearances, or may discontinue or abandon the project, all which may impact the estimated fair value of the IPR&D project. As a result, the Company may have a full or partial impairment charge related to the IPR&D, calculated as the excess carrying value of the IPR&D asset over the estimated fair value. The Company reviews intangible assets at least annually for impairment using its best estimates based on reasonable and supportable assumptions and projections. The Company performs impairment testing annually on October 1 or more often if impairment indicators are present. |
Goodwill | Goodwill— Goodwill represents the excess of purchase price over the fair value of the net assets acquired in business combinations. The Company’s goodwill is accounted for in a single reporting unit representing the Company as a whole. The Company performs impairment testing annually on October 1 or more often if impairment indicators are present. |
Contingent Consideration and Other Noncurrent Liabilities | Contingent Consideration and Other Noncurrent Liabilities— This balance consists of contingent consideration from business combinations, as well as deferred payroll taxes as a result of the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), asset retirement obligations and other contractual obligations. The contingent consideration balance is included in noncurrent liabilities as any settlement is expected to be made primarily in shares of the Company’s common stock pursuant to the SentreHEART, Inc. (SentreHEART) merger agreement. See Note 2 for further discussion. |
Other Income (Expense) | Other Income (Expense)—Other income (expense) consists primarily of foreign currency transaction gains and losses generated by settlements of intercompany balances denominated in Euros and customer invoices transacted in British Pounds. |
Taxes | Taxes —Deferred income tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of assets and liabilities and their respective tax bases and operating loss and tax credit carryforwards. Deferred income tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred income tax assets and liabilities from a change in tax rates is recognized in the period that includes the enactment date. The Company’s estimate of the valuation allowance for deferred income tax assets requires significant estimates and judgments about future operating results. Deferred income tax assets are reduced by valuation allowances if, based on the consideration of all available evidence, it is more-likely-than-not that the deferred income tax asset will not be realized. Significant weight is given to evidence that can be objectively verified. The Company evaluates deferred income tax assets on an annual basis to determine if valuation allowances are required. Deferred income tax assets are realized by having sufficient future taxable income to allow the related tax benefits to reduce taxes otherwise payable. The sources of taxable income that may be available to realize the benefit of deferred income tax assets are future taxable income, future reversals of existing taxable temporary differences, carryforwards and tax planning strategies that are both prudent and feasible. In evaluating the need for a valuation allowance, the existence of cumulative losses in recent years is significant objectively verifiable negative evidence that must be overcome by objectively verifiable positive evidence to avoid the need for a valuation allowance. The Company has established a full valuation allowance against substantially all net deferred income tax assets as it is more-likely-than-not that the benefit of the deferred income tax assets will not be recognized in future periods. The Company has not reclassified income tax effects of the Tax Cuts and Jobs Act within accumulated other comprehensive income (loss) to retained earnings due to its full valuation allowance. |
Earnings Per Share | Earnings Per Share—Basic earnings per share is computed by dividing net income available to common stockholders by the weighted average number of shares of common stock 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). |
Comprehensive Income (Loss) and Accumulated Other Comprehensive Income (Loss) | Comprehensive Income (Loss) and Accumulated Other Comprehensive Income (Loss)—In addition to net income (loss), the comprehensive income (loss) includes foreign currency translation adjustments and unrealized gains (losses) on investments. |
Research and Development Costs | Research and Development Costs —Research and development costs are expensed as incurred. These costs include compensation and other internal and external costs associated with the development and research of new and existing products or concepts, preclinical studies, clinical trials and related regulatory activities, as well as amortization of technology assets. |
Advertising Costs | Advertising Costs — The Company expenses advertising costs as incurred. Advertising costs were not significant during the three and nine months ended September 30, 2021 and 2020. |
Share-Based Compensation | Share-Based Compensation —The Company records share-based compensation for all share-based payment awards, including stock options, restricted stock awards, restricted stock units, performance shares (PSAs) and stock purchases related to an employee stock purchase plan, based on estimated fair values. The value of the portion of an award that is ultimately expected to vest, net of estimated forfeitures, is recognized as expense over the service period. The Company estimates forfeitures at the time of grant and revises them, as necessary, in subsequent periods as actual forfeitures differ from those estimates. The Company recognized share-based compensation expense of $6,794 and $5,549 for the three months ended September 30, 2021 and 2020 and $20,539 and $16,126 for the nine months ended September 30, 2021 and 2020. The Company estimates the fair value of time-based options on the date of grant using the Black-Scholes option-pricing model (Black-Scholes model). The Company’s determination of the fair value is affected by the Company’s stock price as well as several subjective assumptions, such as the Company’s expected stock price volatility over the term of the awards and actual and projected employee stock option exercise behaviors. The Company estimates the fair value of restricted stock awards and restricted stock units based upon the grant date closing market price of the Company’s common stock. The Company estimates the fair value of PSAs with a performance condition based on the closing stock price on the date of grant assuming the performance goal will be achieved and may adjust expense over the performance period based on changes to estimates of performance target achievement. If such goals are not met or service is not rendered for the requisite service period, no compensation cost is recognized, and any recognized compensation cost will be reversed. For PSAs with a market condition, a Monte Carlo simulation is performed to estimate the fair value on the date of grant, and compensation cost is recognized over the requisite service period as the employee renders service, even if the market condition is not satisfied. The Company’s determination of the fair value is affected by the Company and the peer group’s stock price, as defined by the award agreement, at the beginning of the service period and grant date, the expected volatility of the Company and peer group’s stock price over the performance period and the correlation coefficient of the daily returns for the Company and peer group over the performance period. The Company also has an employee stock purchase plan (ESPP) which is available to all eligible employees as defined by the plan document. Under the ESPP, shares of the Company’s common stock may be purchased at a discount. The Company estimates the number of shares to be purchased under the ESPP at the beginning of each purchase period based upon the fair value of the stock at the beginning of the purchase period using the Black-Scholes model and records estimated compensation expense during the purchase period. Expense is adjusted at the time of stock purchase. |
Use of Estimates | Use of Estimates —The preparation of the financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, including 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. Estimates are based on historical experience, where applicable, and other assumptions believed to be reasonable by management. Actual results could differ from those estimates. |
Fair Value | FAIR VALUEThe 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. Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs. The fair value hierarchy is based on three levels of inputs, of which the first two are considered observable and the last unobservable, that may be used to measure fair value: • Level 1—Quoted prices in active markets for identical assets or liabilities. • Level 2—Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. • Level 3—Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. |
Description of Business and S_3
Description of Business and Summary of Significant Accounting Policies (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Summary Of Inventories | Inventories consist of the following: September 30, December 31, Raw materials $ 13,053 $ 11,966 Work in process 3,357 2,424 Finished goods 22,177 20,636 Inventories $ 38,587 $ 35,026 |
Summary Of Property And Equipment | The estimated useful life by major asset category is the following: Estimated Useful Life Generators and related equipment 1 - 3 years Building and building under finance lease 15 - 20 years Computers, software and office equipment 3 - 5 years Machinery and equipment 3 - 7 years Furniture and fixtures 3 - 7 years Leasehold improvements 5 - 15 years Equipment under finance leases 3 - 5 years |
Summary Of Weighted Average Common Shares Outstanding | Three Months Ended Nine Months Ended 2021 2020 2021 2020 Net income (loss) available to common stockholders $ 97,108 $ (4,949) $ 63,940 $ (29,593) Basic weighted average common shares outstanding 45,258 44,012 44,977 41,442 Effect of dilutive securities 842 — 1,019 — Diluted weighted average common shares outstanding 46,100 44,012 45,996 41,442 Basic net income (loss) per common share $ 2.15 $ (0.11) $ 1.42 $ (0.71) Diluted net income (loss) per common share $ 2.11 $ (0.11) $ 1.39 $ (0.71) |
Summary Of Accumulated Other Comprehensive Income (Loss) | Accumulated other comprehensive income (loss) consisted of the following, net of tax: Three Months Ended Nine Months Ended 2021 2020 2021 2020 Total accumulated other comprehensive income (loss) at beginning of period $ (87) $ (96) $ 312 $ (158) Unrealized Gains (Losses) on Investments Balance at beginning of period $ (109) $ 211 $ 54 $ 100 Other comprehensive (loss) income before reclassifications (14) (85) (177) 7 Amounts reclassified from accumulated other comprehensive income (loss) to other income (expense) — — — 19 Balance at end of period $ (123) $ 126 $ (123) $ 126 Foreign Currency Translation Adjustment Balance at beginning of period $ 22 $ (307) $ 258 $ (258) Other comprehensive (loss) income before reclassifications (293) 290 (555) 177 Amounts reclassified from accumulated other comprehensive income (loss) to other income (expense) 181 (52) 207 12 Balance at end of period $ (90) $ (69) $ (90) $ (69) Total accumulated other comprehensive income (loss) at end of period $ (213) $ 57 $ (213) $ 57 |
Fair Value (Tables)
Fair Value (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Fair Value Disclosures [Abstract] | |
Financial Assets And Liabilities Measured At Fair Value On A Recurring Basis | The following table represents the Company’s fair value hierarchy for its financial assets and liabilities measured at fair value on a recurring basis as of September 30, 2021: Quoted Prices in Significant Other Significant Other Total Assets: Money market funds $ — $ 36,262 $ — $ 36,262 Commercial paper — 28,968 — 28,968 Government and agency obligations 27,936 — — 27,936 Corporate bonds — 98,505 — 98,505 Asset-backed securities — 29,548 — 29,548 Total assets $ 27,936 $ 193,283 $ — $ 221,219 Liabilities: Contingent consideration $ — $ — $ — $ — Total liabilities $ — $ — $ — $ — 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, 2021. The following table represents the Company’s fair value hierarchy for its financial assets and liabilities measured at fair value on a recurring basis as of December 31, 2020: Quoted Prices in Significant Other Significant Other Total Assets: Money market funds $ — $ 38,452 $ — $ 38,452 Commercial paper — 76,914 — 76,914 Government and agency obligations 45,399 — — 45,399 Corporate bonds — 73,730 — 73,730 Asset-backed securities — 20,409 — 20,409 Total assets $ 45,399 $ 209,505 $ — $ 254,904 Liabilities: Contingent consideration $ — $ — $ 184,800 184,800 Total liabilities $ — $ — $ 184,800 $ 184,800 |
Level 3 Fair Value Measurements For Acquisition-Related Contingent Consideration | The following table represents the Company’s Level 3 fair value measurements using significant other unobservable inputs for acquisition-related contingent consideration: Nine Months Ended Twelve Months Ended December 31, 2020 Beginning Balance $ 184,800 $ 185,157 Amounts acquired — — Changes in fair value included in earnings (184,800) (357) Ending Balance $ — $ 184,800 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Company's Intangible Assets | The following table provides a summary of the Company’s intangible assets: September 30, 2021 December 31, 2020 Estimated Useful Life Cost Accumulated Cost Accumulated Technology 5 - 15 years $ 55,712 $ 11,749 $ 11,691 $ 9,813 IPR&D — — 126,321 — Total $ 55,712 $ 11,749 $ 138,012 $ 9,813 |
Future Amortization Expense Related To Intangible Assets | Future amortization expense is projected as follows: 2021 (excluding the nine months ended September 30, 2021) $ 972 2022 3,653 2023 2,953 2024 2,953 2025 2,953 2026 and thereafter 30,479 Total $ 43,963 |
Accrued Liabilities (Tables)
Accrued Liabilities (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Payables and Accruals [Abstract] | |
Accrued Liabilities | Accrued liabilities consisted of the following: September 30, December 31, Accrued compensation and employee-related expenses $ 26,670 $ 17,730 Sales returns and allowances 2,611 1,889 Accrued taxes and value-added taxes payable 1,487 1,256 Accrued royalties 783 703 Other accrued liabilities 285 406 Accrued legal settlement 10 6,000 Total $ 31,846 $ 27,984 |
Indebtedness (Tables)
Indebtedness (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Debt Disclosure [Abstract] | |
Future Maturities On Debt | Future maturities of long-term debt, excluding the term loan final fee, and after consideration of the refinancing transaction in November 2021, are projected as follows: 2021 (excluding the nine months ended September 30, 2021) $ — 2022 — 2023 3,333 2024 20,000 2025 20,000 2026 16,667 Total long-term debt $ 60,000 |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Leases [Abstract] | |
Summary Of Weighted Average Remaining Lease Term And Discount Rate | The weighted average remaining lease term and the discount rate for the reporting periods are as follows: September 30, 2021 December 31, 2020 Operating Leases Weighted average remaining lease term (years) 3.3 3.2 Weighted average discount rate 5.60 % 5.68 % Finance leases Weighted average remaining lease term (years) 8.9 9.7 Weighted average discount rate 6.91 % 6.91 % |
Summary Of Components Of Lease Expense | The components of lease expense are as follows: Three Months Ended Nine Months Ended 2021 2020 2021 2020 Operating lease cost $ 234 $ 293 $ 715 $ 986 Finance lease cost: Amortization of right-of-use assets 267 260 765 786 Interest on lease liabilities 196 209 599 638 Total finance lease cost $ 463 $ 469 $ 1,364 $ 1,424 |
Summary Of Supplemental Cash Flow Information Related To Leases | Supplemental cash flow information related to leases was as follows: Nine Months Ended Nine Months Ended Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 748 $ 944 Operating cash flows from finance leases 597 638 Financing cash flows from finance leases 599 468 Right-of-use assets obtained in exchange for lease obligations: Operating Leases 1,221 1,691 Finance Leases — — Early termination of operating lease — 2,473 |
Summary Of Supplemental Balance Sheet Information Related To Leases | Supplemental balance sheet information related to leases was as follows: September 30, 2021 December 31, 2020 Operating Leases Operating lease right-of-use assets $ 2,465 $ 1,914 Other current liabilities and current maturities of debt and leases 1,020 927 Operating lease liabilities 1,593 1,180 Total operating lease liabilities $ 2,613 $ 2,107 Finance Leases Property and equipment, at cost $ 14,607 $ 14,659 Accumulated depreciation (5,862) (5,247) Property and equipment, net $ 8,745 $ 9,412 Other current liabilities and current maturities of debt and leases $ 874 $ 823 Finance lease liabilities 10,317 10,969 Total finance lease liabilities $ 11,191 $ 11,792 |
Schedule Of Maturities Of Lease Liabilities | Maturities of lease liabilities as of September 30, 2021 were as follows: Operating Leases Finance Leases 2021 (excluding the nine months ended September 30, 2021) $ 252 $ 406 2022 967 1,629 2023 682 1,652 2024 609 1,674 2025 348 1,625 2026 and thereafter — 8,172 Total payments $ 2,858 $ 15,158 Less imputed interest (245) (3,967) Total $ 2,613 $ 11,191 |
Equity Compensation Plans (Tabl
Equity Compensation Plans (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Share-Based Compensation Expense Related To Employee Share-Based Compensation | The following table summarizes the allocation of share-based compensation expense: Three Months Ended Nine Months Ended 2021 2020 2021 2020 Cost of revenue $ 622 $ 366 $ 1,639 $ 1,004 Research and development expenses 1,077 859 3,097 2,531 Selling, general and administrative expenses 5,095 4,324 15,803 12,591 Total $ 6,794 $ 5,549 $ 20,539 $ 16,126 |
Segment and Geographic Inform_2
Segment and Geographic Information (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Segment Reporting [Abstract] | |
Revenue By Geographic Area | Revenue attributed to customer geographic locations is as follows: Three Months Ended Nine Months Ended 2021 2020 2021 2020 United States $ 57,537 $ 44,701 $ 167,916 $ 121,838 Europe 7,770 6,514 20,551 16,775 Asia 4,734 3,196 11,695 9,367 Other international 419 346 949 826 Total international 12,923 10,056 33,195 26,968 Total revenue $ 70,460 $ 54,757 $ 201,111 $ 148,806 |
Revenue By Product Type | United States revenue by product type is as follows: Three Months Ended Nine Months Ended 2021 2020 2021 2020 Open ablation $ 23,779 $ 19,911 $ 69,693 $ 54,679 Minimally invasive ablation 9,990 6,979 28,077 18,295 Appendage management 23,401 17,430 69,144 47,870 Total ablation and appendage management 57,170 44,320 166,914 120,844 Valve tools 367 381 1,002 994 Total United States $ 57,537 $ 44,701 $ 167,916 $ 121,838 International revenue by product type is as follows: Three Months Ended Nine Months Ended 2021 2020 2021 2020 Open ablation $ 6,699 $ 4,907 $ 16,629 $ 13,766 Minimally invasive ablation 1,849 1,692 4,698 4,346 Appendage management 4,373 3,445 11,825 8,778 Total ablation and appendage management 12,921 10,044 33,152 26,890 Valve tools 2 12 43 78 Total international $ 12,923 $ 10,056 $ 33,195 $ 26,968 |
Description of Business and S_4
Description of Business and Summary of Significant Accounting Policies (Narrative) (Details) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 5 Months Ended | 9 Months Ended | ||||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2021 | Sep. 30, 2020 | Apr. 28, 2021 | Dec. 31, 2020 | |
Description Of Business And Significant Accounting Policies [Line Items] | |||||||
Depreciation | $ 5,672 | $ 5,937 | |||||
Property and equipment, net | $ 29,901 | $ 29,901 | 29,901 | $ 28,290 | |||
Intangible asset impairment | $ 82,300 | $ 0 | $ 82,300 | $ 0 | |||
Shares not included in the computation of diluted earnings per share | 491 | 2,687 | 582 | 2,687 | |||
Share-based compensation expense recognized | $ 6,794 | $ 5,549 | $ 20,539 | $ 16,126 | |||
IPR&D | |||||||
Description Of Business And Significant Accounting Policies [Line Items] | |||||||
Estimated Useful Life | 15 years | ||||||
IPR&D | EPi-Sense | |||||||
Description Of Business And Significant Accounting Policies [Line Items] | |||||||
Technology Asset Balance | $ 44,021 | ||||||
Estimated Useful Life | 15 years | ||||||
IPR&D | aMAZE | |||||||
Description Of Business And Significant Accounting Policies [Line Items] | |||||||
Intangible asset impairment | 82,300 | ||||||
Generators | |||||||
Description Of Business And Significant Accounting Policies [Line Items] | |||||||
Depreciation | 532 | $ 613 | $ 1,735 | $ 1,898 | |||
Generators and related equipment | |||||||
Description Of Business And Significant Accounting Policies [Line Items] | |||||||
Property and equipment, net | $ 3,609 | $ 3,609 | $ 3,609 | $ 3,410 | |||
Short-term Debt | |||||||
Description Of Business And Significant Accounting Policies [Line Items] | |||||||
Maturity period of short term investment | 1 year |
Description of Business and S_5
Description of Business and Summary of Significant Accounting Policies (Summary Of Inventories) (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Raw materials | $ 13,053 | $ 11,966 |
Work in process | 3,357 | 2,424 |
Finished goods | 22,177 | 20,636 |
Inventories | $ 38,587 | $ 35,026 |
Description of Business and S_6
Description of Business and Summary of Significant Accounting Policies (Summary Of Property And Equipment) (Details) | 9 Months Ended |
Sep. 30, 2021 | |
Minimum | Generators and related equipment | |
Property, Plant and Equipment [Line Items] | |
Estimated Useful Life | 1 year |
Minimum | Building and building under finance lease | |
Property, Plant and Equipment [Line Items] | |
Estimated Useful Life | 15 years |
Minimum | Computers, software and office equipment | |
Property, Plant and Equipment [Line Items] | |
Estimated Useful Life | 3 years |
Minimum | Machinery and equipment | |
Property, Plant and Equipment [Line Items] | |
Estimated Useful Life | 3 years |
Minimum | Furniture and fixtures | |
Property, Plant and Equipment [Line Items] | |
Estimated Useful Life | 3 years |
Minimum | Leasehold improvements | |
Property, Plant and Equipment [Line Items] | |
Estimated Useful Life | 5 years |
Minimum | Equipment under finance leases | |
Property, Plant and Equipment [Line Items] | |
Estimated Useful Life | 3 years |
Maximum | Generators and related equipment | |
Property, Plant and Equipment [Line Items] | |
Estimated Useful Life | 3 years |
Maximum | Building and building under finance lease | |
Property, Plant and Equipment [Line Items] | |
Estimated Useful Life | 20 years |
Maximum | Computers, software and office equipment | |
Property, Plant and Equipment [Line Items] | |
Estimated Useful Life | 5 years |
Maximum | Machinery and equipment | |
Property, Plant and Equipment [Line Items] | |
Estimated Useful Life | 7 years |
Maximum | Furniture and fixtures | |
Property, Plant and Equipment [Line Items] | |
Estimated Useful Life | 7 years |
Maximum | Leasehold improvements | |
Property, Plant and Equipment [Line Items] | |
Estimated Useful Life | 15 years |
Maximum | Equipment under finance leases | |
Property, Plant and Equipment [Line Items] | |
Estimated Useful Life | 5 years |
Description of Business and S_7
Description of Business and Summary of Significant Accounting Policies (Summary Of Weighted Average Common Shares Outstanding) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||
Net income (loss) available to common stockholders | $ 97,108 | $ (4,949) | $ 63,940 | $ (29,593) |
Basic weighted average common shares outstanding (in shares) | 45,258 | 44,012 | 44,977 | 41,442 |
Effect of dilutive securities | $ 842 | $ 0 | $ 1,019 | $ 0 |
Diluted weighted average common shares outstanding (in shares) | 46,100 | 44,012 | 45,996 | 41,442 |
Basic net income (loss) per common share (in usd per share) | $ 2.15 | $ (0.11) | $ 1.42 | $ (0.71) |
Diluted net income (loss) per common share (in usd per share) | $ 2.11 | $ (0.11) | $ 1.39 | $ (0.71) |
Description of Business and S_8
Description of Business and Summary of Significant Accounting Policies (Summary Of Accumulated Other Comprehensive Income (Loss)) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Accumulated other comprehensive income (loss), beginning of period | $ (87) | $ (96) | $ 312 | $ (158) |
Accumulated other comprehensive income (loss), end of period | (213) | 57 | (213) | 57 |
Unrealized Gains (Losses) on Investments | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Accumulated other comprehensive income (loss), beginning of period | (109) | 211 | 54 | 100 |
Other comprehensive (loss) income before reclassifications | (14) | (85) | (177) | 7 |
Amounts reclassified from accumulated other comprehensive income (loss) to other income (expense) | 0 | 0 | 0 | 19 |
Accumulated other comprehensive income (loss), end of period | (123) | 126 | (123) | 126 |
Foreign Currency Translation Adjustment | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Accumulated other comprehensive income (loss), beginning of period | 22 | (307) | 258 | (258) |
Other comprehensive (loss) income before reclassifications | (293) | 290 | (555) | 177 |
Amounts reclassified from accumulated other comprehensive income (loss) to other income (expense) | 181 | (52) | 207 | 12 |
Accumulated other comprehensive income (loss), end of period | $ (90) | $ (69) | $ (90) | $ (69) |
Fair Value (Narrative) (Details
Fair Value (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Change in value of contingent consideration | $ (189,900) | $ 192 | $ (184,800) | $ (4,854) |
Fair Value, Measurements, Recurring | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Change in value of contingent consideration | $ (189,900) |
Fair Value (Financial Assets An
Fair Value (Financial Assets And Liabilities Measured At Fair Value On A Recurring Basis) (Details) - Fair Value, Measurements, Recurring - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Assets: | ||
Debt Securities, Available-for-sale | $ 221,219 | $ 254,904 |
Liabilities: | ||
Contingent consideration | 0 | 184,800 |
Total liabilities | 0 | 184,800 |
Money market funds | ||
Assets: | ||
Debt Securities, Available-for-sale | 36,262 | 38,452 |
Commercial paper | ||
Assets: | ||
Debt Securities, Available-for-sale | 28,968 | 76,914 |
Government and agency obligations | ||
Assets: | ||
Debt Securities, Available-for-sale | 27,936 | 45,399 |
Corporate bonds | ||
Assets: | ||
Debt Securities, Available-for-sale | 98,505 | 73,730 |
Asset-backed securities | ||
Assets: | ||
Debt Securities, Available-for-sale | 29,548 | 20,409 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Assets: | ||
Debt Securities, Available-for-sale | 27,936 | 45,399 |
Liabilities: | ||
Contingent consideration | 0 | 0 |
Total liabilities | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Money market funds | ||
Assets: | ||
Debt Securities, Available-for-sale | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Commercial paper | ||
Assets: | ||
Debt Securities, Available-for-sale | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Government and agency obligations | ||
Assets: | ||
Debt Securities, Available-for-sale | 27,936 | 45,399 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Corporate bonds | ||
Assets: | ||
Debt Securities, Available-for-sale | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Asset-backed securities | ||
Assets: | ||
Debt Securities, Available-for-sale | 0 | 0 |
Significant Other Observable Inputs (Level 2) | ||
Assets: | ||
Debt Securities, Available-for-sale | 193,283 | 209,505 |
Liabilities: | ||
Contingent consideration | 0 | 0 |
Total liabilities | 0 | 0 |
Significant Other Observable Inputs (Level 2) | Money market funds | ||
Assets: | ||
Debt Securities, Available-for-sale | 36,262 | 38,452 |
Significant Other Observable Inputs (Level 2) | Commercial paper | ||
Assets: | ||
Debt Securities, Available-for-sale | 28,968 | 76,914 |
Significant Other Observable Inputs (Level 2) | Government and agency obligations | ||
Assets: | ||
Debt Securities, Available-for-sale | 0 | 0 |
Significant Other Observable Inputs (Level 2) | Corporate bonds | ||
Assets: | ||
Debt Securities, Available-for-sale | 98,505 | 73,730 |
Significant Other Observable Inputs (Level 2) | Asset-backed securities | ||
Assets: | ||
Debt Securities, Available-for-sale | 29,548 | 20,409 |
Significant Other Unobservable Inputs (Level 3) | ||
Assets: | ||
Debt Securities, Available-for-sale | 0 | 0 |
Liabilities: | ||
Contingent consideration | 0 | 184,800 |
Total liabilities | 0 | 184,800 |
Significant Other Unobservable Inputs (Level 3) | Money market funds | ||
Assets: | ||
Debt Securities, Available-for-sale | 0 | 0 |
Significant Other Unobservable Inputs (Level 3) | Commercial paper | ||
Assets: | ||
Debt Securities, Available-for-sale | 0 | 0 |
Significant Other Unobservable Inputs (Level 3) | Government and agency obligations | ||
Assets: | ||
Debt Securities, Available-for-sale | 0 | 0 |
Significant Other Unobservable Inputs (Level 3) | Corporate bonds | ||
Assets: | ||
Debt Securities, Available-for-sale | 0 | 0 |
Significant Other Unobservable Inputs (Level 3) | Asset-backed securities | ||
Assets: | ||
Debt Securities, Available-for-sale | $ 0 | $ 0 |
Fair Value (Level 3 Fair Value
Fair Value (Level 3 Fair Value Measurements For Acquisition-Related Contingent Consideration) (Details) - Contingent Consideration - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2021 | Dec. 31, 2020 | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Beginning Balance | $ 184,800 | $ 185,157 |
Amounts acquired | 0 | 0 |
Changes in fair value included in earnings | (184,800) | (357) |
Ending Balance | $ 0 | $ 184,800 |
Intangible Assets (Narrative) (
Intangible Assets (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 5 Months Ended | 9 Months Ended | |||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | |
Finite-Lived Intangible Assets [Line Items] | ||||||
Intangible asset impairment | $ 82,300 | $ 0 | $ 82,300 | $ 0 | ||
Intangible assets, net | 43,963 | $ 43,963 | 43,963 | $ 128,199 | ||
Amortization of intangible assets | 971 | $ 467 | $ 1,936 | $ 1,444 | ||
IPR&D | ||||||
Finite-Lived Intangible Assets [Line Items] | ||||||
Estimated Useful Life | 15 years | |||||
IPR&D | EPi-Sense | ||||||
Finite-Lived Intangible Assets [Line Items] | ||||||
Increase in finite intangible asset | 44,021 | |||||
Estimated Useful Life | 15 years | |||||
IPR&D | aMAZE | ||||||
Finite-Lived Intangible Assets [Line Items] | ||||||
Intangible asset impairment | 82,300 | |||||
Intangible assets, net | $ 0 | $ 0 | $ 0 | |||
Minimum | Technology | ||||||
Finite-Lived Intangible Assets [Line Items] | ||||||
Estimated Useful Life | 5 years | |||||
Maximum | Technology | ||||||
Finite-Lived Intangible Assets [Line Items] | ||||||
Estimated Useful Life | 15 years |
Intangible Assets (Company's In
Intangible Assets (Company's Intangible Assets) (Details) - USD ($) $ in Thousands | 5 Months Ended | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2021 | Dec. 31, 2020 | |
Finite-Lived Intangible Assets [Line Items] | |||
Cost | $ 55,712 | $ 55,712 | $ 138,012 |
Accumulated Amortization | 11,749 | 11,749 | 9,813 |
Technology | |||
Finite-Lived Intangible Assets [Line Items] | |||
Cost | 55,712 | 55,712 | 11,691 |
Accumulated Amortization | 11,749 | 11,749 | 9,813 |
IPR&D | |||
Finite-Lived Intangible Assets [Line Items] | |||
Cost | 0 | 0 | 126,321 |
Accumulated Amortization | $ 0 | $ 0 | $ 0 |
Estimated Useful Life | 15 years | ||
Minimum | Technology | |||
Finite-Lived Intangible Assets [Line Items] | |||
Estimated Useful Life | 5 years | ||
Maximum | Technology | |||
Finite-Lived Intangible Assets [Line Items] | |||
Estimated Useful Life | 15 years |
Intangible Assets (Future Amort
Intangible Assets (Future Amortization Expense Related To Intangible Assets With Definite Lives) (Details) $ in Thousands | Sep. 30, 2021USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
2021 (excluding the nine months ended September 30, 2021) | $ 972 |
2022 | 3,653 |
2023 | 2,953 |
2024 | 2,953 |
2025 | 2,953 |
2026 and thereafter | 30,479 |
Total | $ 43,963 |
Accrued Liabilities (Accrued Li
Accrued Liabilities (Accrued Liabilities) (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Payables and Accruals [Abstract] | ||
Accrued compensation and employee-related expenses | $ 26,670 | $ 17,730 |
Sales returns and allowances | 2,611 | 1,889 |
Accrued taxes and value-added taxes payable | 1,487 | 1,256 |
Accrued royalties | 783 | 703 |
Other accrued liabilities | 285 | 406 |
Accrued legal settlement | 10 | 6,000 |
Total | $ 31,846 | $ 27,984 |
Indebtedness (Narrative) (Detai
Indebtedness (Narrative) (Details) - USD ($) | Nov. 01, 2021 | Sep. 30, 2021 |
Line of Credit Facility [Line Items] | ||
Long-term Debt | $ 60,000,000 | |
Subsequent Event | ||
Line of Credit Facility [Line Items] | ||
Principal payment start | 24 months | |
Amended loan payment deferral period | 12 months | |
Silicon Valley Bank Agreement | ||
Line of Credit Facility [Line Items] | ||
Total combined debt, maximum amount outstanding | 70,000,000 | |
Long-term Debt | 56,666,000 | |
Silicon Valley Bank Agreement | Revolving Credit Facility | ||
Line of Credit Facility [Line Items] | ||
Line of credit, maximum borrowing capacity | $ 20,000,000 | |
Maturity date | Aug. 1, 2024 | |
Annual facility fee | 0.15% | |
Borrowing availability threshold | $ 20,000,000 | |
Line of credit, borrowings | 0 | |
Line of credit, revolving line of credit | $ 10,000,000 | |
Silicon Valley Bank Agreement | Revolving Credit Facility | Subsequent Event | ||
Line of Credit Facility [Line Items] | ||
Annual facility fee | 0.20% | |
Additional borrowings | $ 30,000,000 | |
Silicon Valley Bank Agreement | Revolving Credit Facility | Prime Rate | ||
Line of Credit Facility [Line Items] | ||
Applicable interest rate | 5.00% | |
Term Loan | Silicon Valley Bank Agreement | ||
Line of Credit Facility [Line Items] | ||
Loan amount | $ 60,000,000 | |
Annual commitment fee, percentage | 3.00% | |
Accrued fee amount | $ 1,020,000 | |
Financing costs | $ 313,000 | |
Term Loan | Silicon Valley Bank Agreement | Subsequent Event | ||
Line of Credit Facility [Line Items] | ||
Loan amount | $ 60,000,000 | |
Annual commitment fee, percentage | 3.00% | |
Additional borrowings | $ 30,000,000 | |
Length of term | 5 years | |
Principal repayment | $ 1,667,000 | |
Term Loan | Silicon Valley Bank Agreement | Prime Rate | ||
Line of Credit Facility [Line Items] | ||
Basis rate | 0.75% | |
Interest rate | 5.00% | |
Term Loan | Silicon Valley Bank Agreement | Prime Rate | Subsequent Event | ||
Line of Credit Facility [Line Items] | ||
Basis rate | 1.25% |
Indebtedness (Future Maturities
Indebtedness (Future Maturities On Debt) (Details) $ in Thousands | Sep. 30, 2021USD ($) |
Debt Disclosure [Abstract] | |
2021 (excluding the nine months ended September 30, 2021) | $ 0 |
2022 | 0 |
2023 | 3,333 |
2024 | 20,000 |
2025 | 20,000 |
2026 | 16,667 |
Total long-term debt | $ 60,000 |
Leases (Narrative) (Details)
Leases (Narrative) (Details) $ in Thousands | Sep. 30, 2021USD ($) |
Lessee, Lease, Description [Line Items] | |
Letter of credit outstanding | $ 1,250 |
Minimum | |
Lessee, Lease, Description [Line Items] | |
Remaining lease terms | 1 year |
Maximum | |
Lessee, Lease, Description [Line Items] | |
Remaining lease terms | 10 years |
Leases (Summary Of Weighted Ave
Leases (Summary Of Weighted Average Remaining Lease Term And Discount Rate) (Details) | Sep. 30, 2021 | Dec. 31, 2020 |
Operating Leases | ||
Weighted average remaining lease term (years) | 3 years 3 months 18 days | 3 years 2 months 12 days |
Weighted average discount rate | 560.00% | 568.00% |
Finance leases | ||
Weighted average remaining lease term (years) | 8 years 10 months 24 days | 9 years 8 months 12 days |
Weighted average discount rate | 691.00% | 691.00% |
Leases (Summary Of Components O
Leases (Summary Of Components Of Lease Expense) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Leases [Abstract] | ||||
Operating lease cost | $ 234 | $ 293 | $ 715 | $ 986 |
Finance lease cost: | ||||
Amortization of right-of-use assets | 267 | 260 | 765 | 786 |
Interest on lease liabilities | 196 | 209 | 599 | 638 |
Total finance lease cost | $ 463 | $ 469 | $ 1,364 | $ 1,424 |
Leases (Summary Of Supplemental
Leases (Summary Of Supplemental Cash Flow Information Related To Leases) (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Cash paid for amounts included in the measurement of lease liabilities: | ||
Operating cash flows from operating leases | $ 748 | $ 944 |
Operating cash flows from finance leases | 597 | 638 |
Financing cash flows from finance leases | 599 | 468 |
Right-of-use assets obtained in exchange for lease obligations: | ||
Operating Leases | 1,221 | 1,691 |
Finance Leases | 0 | 0 |
Early termination of operating lease | $ 0 | $ 2,473 |
Leases (Summary Of Supplement_2
Leases (Summary Of Supplemental Balance Sheet Information Related To Leases) (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Operating Leases | ||
Operating lease right-of-use assets | $ 2,465 | $ 1,914 |
Other current liabilities and current maturities of debt and leases | 1,020 | 927 |
Operating lease liabilities | 1,593 | 1,180 |
Total operating lease liabilities | 2,613 | 2,107 |
Finance Leases | ||
Property and equipment, at cost | 14,607 | 14,659 |
Accumulated depreciation | (5,862) | (5,247) |
Property and equipment, net | 8,745 | 9,412 |
Other current liabilities and current maturities of debt and leases | 874 | 823 |
Finance lease liabilities | 10,317 | 10,969 |
Total finance lease liabilities | $ 11,191 | $ 11,792 |
Leases (Schedule Of Maturities
Leases (Schedule Of Maturities Of Lease Liabilities) (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Operating Leases | ||
2021 (excluding the nine months ended September 30, 2021) | $ 252 | |
2022 | 967 | |
2023 | 682 | |
2024 | 609 | |
2025 | 348 | |
2026 and thereafter | 0 | |
Total payments | 2,858 | |
Less imputed interest | (245) | |
Total | 2,613 | $ 2,107 |
Finance Leases | ||
2021 (excluding the nine months ended September 30, 2021) | 406 | |
2022 | 1,629 | |
2023 | 1,652 | |
2024 | 1,674 | |
2025 | 1,625 | |
2026 and thereafter | 8,172 | |
Total payments | 15,158 | |
Less imputed interest | (3,967) | |
Total | $ 11,191 | $ 11,792 |
Commitments and Contingencies (
Commitments and Contingencies (Narrative) (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 9 Months Ended | |||
Feb. 28, 2021 | Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | |
Commitments and Contingencies [Line Items] | ||||||
Royalty expense | $ 792 | $ 699 | $ 2,356 | $ 1,880 | ||
Purchase agreement | $ 5,500 | |||||
Settlement agreement payment | $ 6,000 | |||||
Liability related settlement current | $ 6,000 | |||||
Minimum | ||||||
Commitments and Contingencies [Line Items] | ||||||
Royalty rates | 3.00% | |||||
Maximum | ||||||
Commitments and Contingencies [Line Items] | ||||||
Royalty rates | 5.00% |
Revenue (Narrative) (Details)
Revenue (Narrative) (Details) | 9 Months Ended |
Sep. 30, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Terms of sale for end-users | 30 days |
Terms of sale for distributors | 60 days |
Income Tax Provision (Narrative
Income Tax Provision (Narrative) (Details) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Income Tax Disclosure [Abstract] | ||||
Effective tax rate | 0.04% | 0.08% | 0.21% | (0.05%) |
Equity Compensation Plans (Narr
Equity Compensation Plans (Narrative) (Details) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2021USD ($)itemshares | Dec. 31, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of share-based incentive plans | item | 2 | |
Total shareholder return period | 20 days | |
Offering period | 6 months | |
Participants purchase limit shares | 3,000 | |
Employee Stock Option | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expiry of options from the date of grant | 10 years | |
First, Second, And Third Anniversaries | Stock Options, RSA's, and RSU's | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Annual vesting percentage | 33.30% | |
2014 Plan | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Common stock reserved for issuance | 12,899,000 | |
Shares available for future grants | 1,471,000 | |
2014 Plan | Employee Stock Option | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vesting period | 3 years | |
2014 Plan | Performance Shares | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vesting right of shares of common stock | 1 | |
Vesting period | 3 years | |
2014 Plan | Minimum | Performance Shares | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Performance stock award threshold, target and maximum payout opportunity percentage | 0.00% | 0.00% |
2014 Plan | Maximum | Performance Shares | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Performance stock award threshold, target and maximum payout opportunity percentage | 200.00% | 100.00% |
2008 Employee Stock Purchase Plan | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Common stock reserved for issuance | 338,000 | |
Company's common stock may be purchased at a discount | 15.00% | |
Participants purchase limit value | $ | $ 25 |
Equity Compensation Plans (Shar
Equity Compensation Plans (Share-Based Compensation Expense Related To Employee Share-Based Compensation) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Total | $ 6,794 | $ 5,549 | $ 20,539 | $ 16,126 |
Cost of revenue | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Total | 622 | 366 | 1,639 | 1,004 |
Research and development expenses | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Total | 1,077 | 859 | 3,097 | 2,531 |
Selling, general and administrative expenses | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Total | $ 5,095 | $ 4,324 | $ 15,803 | $ 12,591 |
Segment and Geographic Inform_3
Segment and Geographic Information (Narrative) (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Europe | ||
Long-lived assets | $ 1,415 | $ 1,693 |
Segment and Geographic Inform_4
Segment and Geographic Information (Revenue By Geographic Area) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenue | $ 70,460 | $ 54,757 | $ 201,111 | $ 148,806 |
United States | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenue | 57,537 | 44,701 | 167,916 | 121,838 |
Europe | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenue | 7,770 | 6,514 | 20,551 | 16,775 |
Asia | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenue | 4,734 | 3,196 | 11,695 | 9,367 |
Other international | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenue | 419 | 346 | 949 | 826 |
Total international | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenue | $ 12,923 | $ 10,056 | $ 33,195 | $ 26,968 |
Segment and Geographic Inform_5
Segment and Geographic Information (Revenue By Product Type) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Revenue from External Customer [Line Items] | ||||
Revenue | $ 70,460 | $ 54,757 | $ 201,111 | $ 148,806 |
United States | ||||
Revenue from External Customer [Line Items] | ||||
Revenue | 57,537 | 44,701 | 167,916 | 121,838 |
United States | Open ablation | ||||
Revenue from External Customer [Line Items] | ||||
Revenue | 23,779 | 19,911 | 69,693 | 54,679 |
United States | Minimally invasive ablation | ||||
Revenue from External Customer [Line Items] | ||||
Revenue | 9,990 | 6,979 | 28,077 | 18,295 |
United States | Appendage management | ||||
Revenue from External Customer [Line Items] | ||||
Revenue | 23,401 | 17,430 | 69,144 | 47,870 |
United States | Total ablation and appendage management | ||||
Revenue from External Customer [Line Items] | ||||
Revenue | 57,170 | 44,320 | 166,914 | 120,844 |
United States | Valve tools | ||||
Revenue from External Customer [Line Items] | ||||
Revenue | 367 | 381 | 1,002 | 994 |
Total international | ||||
Revenue from External Customer [Line Items] | ||||
Revenue | 12,923 | 10,056 | 33,195 | 26,968 |
Total international | Open ablation | ||||
Revenue from External Customer [Line Items] | ||||
Revenue | 6,699 | 4,907 | 16,629 | 13,766 |
Total international | Minimally invasive ablation | ||||
Revenue from External Customer [Line Items] | ||||
Revenue | 1,849 | 1,692 | 4,698 | 4,346 |
Total international | Appendage management | ||||
Revenue from External Customer [Line Items] | ||||
Revenue | 4,373 | 3,445 | 11,825 | 8,778 |
Total international | Total ablation and appendage management | ||||
Revenue from External Customer [Line Items] | ||||
Revenue | 12,921 | 10,044 | 33,152 | 26,890 |
Total international | Valve tools | ||||
Revenue from External Customer [Line Items] | ||||
Revenue | $ 2 | $ 12 | $ 43 | $ 78 |