Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2020 | Nov. 04, 2020 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Current Fiscal Year End Date | --12-31 | |
Document Period End Date | Sep. 30, 2020 | |
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 | |
Entity Address, Address Line One | 7555 Innovation Way | |
Entity Address, City or Town | Mason | |
Entity Address, State or Province | OH | |
Entity Address, Postal Zip Code | 45040 | |
City Area Code | 513 | |
Local Phone Number | 755-4100 | |
Title of 12(b) Security | Common Stock, $.001 par value | |
Trading Symbol | ATRC | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 45,023,214 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false | |
Entity Central Index Key | 0001323885 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Current assets: | ||
Cash and cash equivalents | $ 33,381 | $ 28,483 |
Short-term investments | 199,688 | 53,318 |
Accounts receivable, less allowance for credit losses of $1,096 and $1,124 | 25,448 | 28,046 |
Inventories | 34,326 | 29,414 |
Prepaid and other current assets | 3,369 | 3,899 |
Total current assets | 296,212 | 143,160 |
Property and equipment, net | 29,089 | 32,646 |
Operating lease right-of-use assets | 2,363 | 4,032 |
Long-term investments | 16,516 | 12,675 |
Intangible assets, net | 128,437 | 129,881 |
Goodwill | 234,781 | 234,781 |
Other noncurrent assets | 399 | 705 |
Total Assets | 707,797 | 557,880 |
Current liabilities: | ||
Accounts payable | 13,554 | 14,948 |
Accrued liabilities | 19,130 | 32,750 |
Other current liabilities and current maturities of long-term debt and leases | 12,070 | 2,218 |
Total current liabilities | 44,754 | 49,916 |
Long-term debt | 49,985 | 59,634 |
Finance lease liabilities | 11,172 | 11,774 |
Operating lease liabilities | 1,324 | 2,796 |
Contingent consideration and other noncurrent liabilities | 183,030 | 186,417 |
Total Liabilities | 290,265 | 310,537 |
Commitments and contingencies (Note 8) | ||
Stockholders' Equity: | ||
Common stock, $0.001 par value, 90,000 shares authorized and 45,021 and 39,655 issued and outstanding | 45 | 40 |
Additional paid-in capital | 729,220 | 529,658 |
Accumulated other comprehensive income (loss) | 57 | (158) |
Accumulated deficit | (311,790) | (282,197) |
Total Stockholders' Equity | 417,532 | 247,343 |
Total Liabilities and Stockholders' Equity | $ 707,797 | $ 557,880 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Condensed Consolidated Balance Sheets [Abstract] | ||
Accounts receivable, allowance for credit losses | $ 1,096 | $ 1,124 |
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 90,000,000 | 90,000,000 |
Common stock, shares issued | 45,021,000 | 39,655,000 |
Common stock, shares outstanding | 45,021,000 | 39,655,000 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations and Comprehensive Loss - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Condensed Consolidated Statements of Operations and Comprehensive Loss [Abstract] | ||||
Revenue | $ 54,757 | $ 56,614 | $ 148,806 | $ 169,486 |
Cost of revenue | 14,423 | 14,817 | 41,934 | 43,925 |
Gross profit | 40,334 | 41,797 | 106,872 | 125,561 |
Operating expenses: | ||||
Research and development expenses | 10,576 | 10,154 | 32,199 | 28,134 |
Selling, general and administrative expenses | 33,749 | 40,280 | 101,403 | 115,223 |
Total operating expenses | 44,325 | 50,434 | 133,602 | 143,357 |
Loss from operations | (3,991) | (8,637) | (26,730) | (17,796) |
Other income (expense): | ||||
Interest expense | (1,232) | (1,113) | (3,691) | (2,854) |
Interest income | 246 | 577 | 914 | 1,933 |
Other | 24 | (114) | (70) | (230) |
Loss before income tax expense | (4,953) | (9,287) | (29,577) | (18,947) |
Income tax expense (benefit) | (4) | 75 | 16 | 151 |
Net loss | $ (4,949) | $ (9,362) | $ (29,593) | $ (19,098) |
Basic and diluted net loss per share | $ (0.11) | $ (0.25) | $ (0.71) | $ (0.51) |
Weighted average shares outstanding — basic and diluted | 44,012 | 37,842 | 41,442 | 37,387 |
Comprehensive loss: | ||||
Unrealized gain (loss) on investments | $ (85) | $ 33 | $ 26 | $ 116 |
Foreign currency translation adjustment | 238 | (255) | 189 | (293) |
Other comprehensive income (loss) | 153 | (222) | 215 | (177) |
Net loss | (4,949) | (9,362) | (29,593) | (19,098) |
Comprehensive loss, net of tax | $ (4,796) | $ (9,584) | $ (29,378) | $ (19,275) |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Stockholders' Equity - USD ($) shares in Thousands, $ in Thousands | Common Stock [Member] | Additional Paid-in Capital [Member] | Accumulated Deficit [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Total |
Beginning Balance at Dec. 31, 2018 | $ 39 | $ 496,544 | $ (247,003) | $ (199) | $ 249,381 |
Beginning Balance, Shares at Dec. 31, 2018 | 38,604 | ||||
Issuance of common stock for SentreHEART acquisition | $ 1 | 21,991 | 21,992 | ||
Issuance of common stock for SentreHEART acquisition, Shares | 699 | ||||
Impact of equity compensation plans | 6,123 | 6,123 | |||
Impact of equity compensation plans, Shares | 244 | ||||
Other comprehensive income (loss) | (177) | (177) | |||
Net loss | (19,098) | (19,098) | |||
Ending Balance at Sep. 30, 2019 | $ 40 | 524,658 | (266,101) | (376) | 258,221 |
Ending Balance, Shares at Sep. 30, 2019 | 39,547 | ||||
Beginning Balance at Jun. 30, 2019 | $ 39 | 498,402 | (256,739) | (154) | 241,548 |
Beginning Balance, Shares at Jun. 30, 2019 | 38,766 | ||||
Issuance of common stock for SentreHEART acquisition | $ 1 | 21,991 | 21,992 | ||
Issuance of common stock for SentreHEART acquisition, Shares | 699 | ||||
Impact of equity compensation plans | 4,265 | 4,265 | |||
Impact of equity compensation plans, Shares | 82 | ||||
Other comprehensive income (loss) | (222) | (222) | |||
Net loss | (9,362) | (9,362) | |||
Ending Balance at Sep. 30, 2019 | $ 40 | 524,658 | (266,101) | (376) | 258,221 |
Ending Balance, Shares at Sep. 30, 2019 | 39,547 | ||||
Beginning Balance at Dec. 31, 2019 | $ 40 | 529,658 | (282,197) | (158) | 247,343 |
Beginning Balance, Shares at Dec. 31, 2019 | 39,655 | ||||
Issuance of common stock through public offering | $ 5 | 188,953 | 188,958 | ||
Issuance of common stock through public offering, Shares | 4,574 | ||||
Impact of equity compensation plans | 10,609 | 10,609 | |||
Impact of equity compensation plans, Shares | 792 | ||||
Other comprehensive income (loss) | 215 | 215 | |||
Net loss | (29,593) | (29,593) | |||
Ending Balance at Sep. 30, 2020 | $ 45 | 729,220 | (311,790) | 57 | 417,532 |
Ending Balance, Shares at Sep. 30, 2020 | 45,021 | ||||
Beginning Balance at Jun. 30, 2020 | $ 45 | 723,754 | (306,841) | (96) | 416,862 |
Beginning Balance, Shares at Jun. 30, 2020 | 44,939 | ||||
Impact of equity compensation plans | 5,466 | 5,466 | |||
Impact of equity compensation plans, Shares | 82 | ||||
Other comprehensive income (loss) | 153 | 153 | |||
Net loss | (4,949) | (4,949) | |||
Ending Balance at Sep. 30, 2020 | $ 45 | $ 729,220 | $ (311,790) | $ 57 | $ 417,532 |
Ending Balance, Shares at Sep. 30, 2020 | 45,021 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Cash flows from operating activities: | ||
Net loss | $ (29,593) | $ (19,098) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Share-based compensation expense | 16,126 | 12,816 |
Depreciation | 5,937 | 5,529 |
Amortization of intangible assets | 1,444 | 1,454 |
Amortization of deferred financing costs | 423 | 233 |
Loss on disposal of property and equipment | 93 | 433 |
Amortization (accretion) of investments | 628 | (882) |
Change in value of contingent consideration | (4,854) | (6,934) |
Other non-cash adjustments to income | 871 | 1,273 |
Changes in operating assets and liabilities, net of amounts acquired: | ||
Accounts receivable | 2,675 | (2,045) |
Inventories | (4,746) | (3,643) |
Other current assets | 481 | (934) |
Accounts payable | (515) | 702 |
Accrued liabilities | (13,688) | (500) |
Other noncurrent assets and liabilities | 895 | (686) |
Net cash used in operating activities | (23,823) | (12,282) |
Cash flows from investing activities: | ||
Purchases of available-for-sale securities | (200,795) | (66,726) |
Sales and maturities of available-for-sale securities | 49,984 | 92,985 |
Purchases of property and equipment | (4,207) | (7,825) |
Proceeds from sale of property and equipment | 28 | |
Proceeds from capital grant | 800 | |
Cash paid for SentreHEART business combination | (18,008) | |
Net cash (used in) provided by investing activities | (154,218) | 454 |
Cash flows from financing activities: | ||
Proceeds from sale of stock, net of offering costs of $218 | 188,958 | |
Proceeds from debt borrowings | 20,000 | |
Payments of debt and leases | (468) | (459) |
Payments of debt fees | (34) | (329) |
Proceeds from stock option exercises and employee stock purchase plan | 7,412 | 2,283 |
Shares repurchased for payment of taxes on stock awards | (12,929) | (8,976) |
Proceeds from economic incentive loan | 500 | |
Net cash provided by financing activities | 182,939 | 13,019 |
Effect of exchange rate changes on cash and cash equivalents | (240) | |
Net increase (decrease) in cash and cash equivalents | 4,898 | 951 |
Cash and cash equivalents-beginning of period | 28,483 | 32,231 |
Cash and cash equivalents-end of period | 33,381 | 33,182 |
Supplemental cash flow information: | ||
Cash paid for interest | 3,286 | 2,639 |
Cash paid for income taxes, net of refunds | 206 | 227 |
Non-cash investing and financing activities: | ||
Accrued purchases of property and equipment | 88 | 2,190 |
Stock issuance in business combinations | 21,992 | |
Contingent consideration in business combinations | 171,300 | |
Working capital adjustment receivable from business combination | $ 754 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows (Parenthetical) $ in Thousands | 9 Months Ended |
Sep. 30, 2020USD ($) | |
Condensed Consolidated Statements of Cash Flows [Abstract] | |
Offering cost for sale of stock | $ 218 |
Description of Business and Sum
Description of Business and Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2020 | |
Description of Business and Summary of Significant Accounting Policies [Abstract] | |
Description of Business and Summary of Significant Accounting Policies | 1. 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 Condensed Consolidated Financial Statements should be read in conjunction with the audited financial statements of the Company included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2019 filed with the SEC. All intercompany accounts and transactions have been eliminated in consolidation. 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 certain financial institutions. Investments —The Company invests primarily in U.S. government agencies and securities, 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 9 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 of 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 product 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, 2020 2019 Raw materials $ 12,229 $ 11,126 Work in process 2,774 1,260 Finished goods 19,323 17,028 Inventories $ 34,326 $ 29,414 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 3 years Building under finance lease 15 years Computers, software and office equipment 3 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 recorded by the Company 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 related to generators and related equipment, which is recorded in cost of revenue, was $ 613 and $ 744 for the three months ended September 30, 2020 and 2019 and $ 1,898 and $ 2,228 for the nine months ended September 30, 2020 and 2019. As of September 30, 2020 and December 31, 2019, the net carrying value of generators and related equipment included in net property and equipment was $ 3,339 and $ 4,272 . Leases —The Company determines if an arrangement is a lease at inception of the contract. The Company 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 a purchase option whose exercise is reasonably certain. Operating leases are included in operating lease right-of-use (ROU) assets, other current liabilities and current maturities of leases and long-term debt, and operating lease liabilities. Finance leases are included in property and equipment, other current liabilities and current maturities of long-term debt and leases, and finance lease liabilities. ROU 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. Operating lease ROU assets and liabilities are measured and recorded at the commencement date based on the present value of lease payments over the lease term. The operating lease ROU asset excludes lease incentives. The Company uses the implicit rate when readily determinable, however, most of the leases do not provide an implicit rate and therefore, the Company uses the incremental borrowing rate based on the information available at measurement. The lease terms may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. 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 to effectively account for the operating lease ROU assets and liabilities based on the term of the underlying lease. Lease expense is recognized on a straight-line basis over the lease term. See Note 7 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. The IPR&D assets represent an estimate of the fair value of the pre-market approval (PMA) that could result from the aMAZE TM and CONVERGE IDE clinical trials. If the IPR&D projects are abandoned or regulatory approvals are not obtained, 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 assets 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 whenever events or circumstances indicate the carrying value of an asset may not be recoverable. 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. Contingent Consideration and Other Noncurrent Liabilities— This balance consists of contingent consideration recorded in business combinations, as well as deferred payroll taxes as a result of the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), deferred revenues, asset retirement obligations and other contractual obligations. The contingent consideration balance is included in noncurrent liabilities as settlement is both required and expected to be made primarily in shares of the Company’s common stock pursuant to the nContact Surgical, Inc. (nContact) merger agreement and SentreHEART, Inc. (SentreHEART) merger agreement. 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 to record a valuation allowance. The Company has recorded a full valuation allowance against 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 the 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. Net Loss Per Share —Basic and diluted net loss per share is computed by dividing the net loss by the weighted average number of common shares outstanding during the period. Since the Company has experienced net losses for all periods presented, net loss per share excludes the effect of 2,687 and 3,613 stock options, restricted stock shares, restricted stock units and performance award shares as of September 30, 2020 and 2019 because they are anti-dilutive. Therefore, the number of shares calculated for basic net loss per share is also used for the diluted net loss per share calculation. Comprehensive Loss and Accumulated Other Comprehensive Income (Loss) —In addition to net losses, 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 September 30, September 30, 2020 2019 2020 2019 Total accumulated other comprehensive loss at beginning of period $ ( 96 ) $ ( 154 ) $ ( 158 ) $ ( 199 ) Unrealized Gains (Losses) on Investments Balance at beginning of period $ 211 $ 46 $ 100 $ ( 37 ) Other comprehensive income (loss) before reclassifications ( 85 ) 33 7 116 Amounts reclassified from accumulated other comprehensive loss to other income (expense) — — 19 — Balance at end of period $ 126 $ 79 $ 126 $ 79 Foreign Currency Translation Adjustment Balance at beginning of period $ ( 307 ) $ ( 200 ) $ ( 258 ) $ ( 162 ) Other comprehensive income (loss) before reclassifications 290 ( 380 ) 177 ( 520 ) Amounts reclassified from accumulated other comprehensive loss to other income (expense) ( 52 ) 125 12 227 Balance at end of period $ ( 69 ) $ ( 455 ) $ ( 69 ) $ ( 455 ) Total accumulated other comprehensive income (loss) at end of period $ 57 $ ( 376 ) $ 57 $ ( 376 ) 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 of and research related to new and existing products or concepts, preclinical studies, clinical trials and regulatory affairs. Advertising Costs — The Company expenses advertising costs as incurred. Advertising costs were not significant during the three and nine months ended September 30, 2020 and 2019. 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 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 $ 5,549 and $ 4,287 for the three months ended September 30, 2020 and 2019 and $ 16,126 and $ 12,816 for the nine months ended September 30, 2020 and 2019. 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 assumptions regarding several subjective variables. These variables include, but are not limited to, 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, restricted stock units and performance share awards based upon the grant date closing market price of the Company’s common stock. The estimated fair value of performance share awards may be adjusted over the performance period based on changes to estimates of performance target achievement. 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. |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 9 Months Ended |
Sep. 30, 2020 | |
Recent Accounting Pronouncements [Abstract] | |
Recent Accounting Pronouncements | 2. RECENT ACCOUNTING PRONOUNCEMENTS In June 2016, the FASB issued Accounting Standard Update (ASU )2016-13, “Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments” (ASU 2016-13). This guidance requires that financial assets measured at amortized costs, such as trade receivables and contract assets, be presented net of expected credit losses, which may be estimated based on relevant information such as historical experience, current conditions and future expectations for each pool of similar financial assets. The Company has applied the new requirements by calculating and recording an allowance for credit losses on trade receivables as of January 1, 2020. As a result of the adoption, the Company adjusted its allowance for credit losses on trade receivables; however the adjustment did not have a material impact on its consolidated financial statements and related disclosures. In January 2017, the FASB issued ASU 2017-04, “Intangibles – Goodwill and Other (Topic 350): Simplifying the Accounting for Goodwill Impairment” (ASU 2017-04). The guidance removes the requirement to perform a hypothetical purchase price allocation to measure goodwill impairment. Under ASU 2017-04, a goodwill impairment will be the amount by which a reporting unit’s carrying value exceeds its fair value, not to exceed the carrying amount of goodwill. The guidance becomes effective for annual reporting periods beginning after December 15, 2019 and interim periods within those fiscal years, with early adoption permitted, and applied prospectively. The Company has adopted this guidance as of January 1, 2020, and the adoption of this standard did not have a material impact on its consolidated financial statements and related disclosures. |
Fair Value
Fair Value | 9 Months Ended |
Sep. 30, 2020 | |
Fair Value [Abstract] | |
Fair Value | 3. FAIR VALUE Fair value is defined 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 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 U.S. government agencies and securities, 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, repurchase agreements 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, 2020: Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Other Unobservable Inputs (Level 3) Total Assets: Money market funds $ — $ 30,891 $ — $ 30,891 Commercial paper — 80,870 — 80,870 U.S. government agencies and securities 40,522 — — 40,522 Corporate bonds — 71,779 — 71,779 Asset-backed securities — 23,033 — 23,033 Total assets $ 40,522 $ 206,573 $ — $ 247,095 Liabilities: Contingent consideration — — 180,303 180,303 Total liabilities $ — $ — $ 180,303 $ 180,303 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, 2020. 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, 2019: Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Other Unobservable Inputs (Level 3) Total Assets: Money market funds $ — $ 14,502 $ — $ 14,502 Repurchase agreements — 10,000 — 10,000 Commercial paper — 13,755 — 13,755 U.S. government agencies and securities 8,539 — — 8,539 Corporate bonds — 24,852 — 24,852 Asset-backed securities — 18,847 — 18,847 Total assets $ 8,539 $ 81,956 $ — $ 90,495 Liabilities: Contingent consideration — — 185,157 185,157 Total liabilities $ — $ — $ 185,157 $ 185,157 Contingent Consideration. The Company has contingent consideration arrangements arising from the nContact and SentreHEART acquisitions. Contingent consideration arrangements with the former shareholders of nContact obligate the Company to pay certain defined amounts to former shareholders of nContact if PMA approval from the CONVERGE IDE trial is received within specified timelines. Contingent consideration arrangements under the SentreHEART merger agreement obligate the Company to pay certain defined amounts to former shareholders of SentreHEART if specified milestones are met related to the aMAZE IDE clinical trial, including PMA approval and reimbursement for the therapy involving SentreHEART’s devices. The Company measures contingent consideration liabilities using unobservable inputs by applying an income approach, such as the probability-weighted scenario method. Key assumptions, such as the probability and timeline of achievement of the agreed milestones, are used in 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. The recurring Level 3 fair value measurements of the contingent consideration liabilities include the following significant inputs as of September 30, 2020: Weighted average Fair Value Valuation Technique Significant Input Range by relative fair value Probability of payment 77.30 - 85.00 % 81.83 % Regulatory & Commercialization-based milestones $ 180,303 Probability-weighted scenario approach Projected month and year of payment March 2022 - September 2025 n/a Discount rate 5.56 % 5.56 % Contingent consideration liabilities are periodically measured, with changes in the estimated fair value reflected in selling, general and administrative expenses. Changes in the discount rate, 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 also causes a decrease in the fair value measurement. The fair value of the contingent consideration was remeasured as of September 30, 2020 resulting in a net increase in fair value of $ 192 during the three months ended September 30, 2020 due to accretion, partially offset by a decrease in fair value due to movement in the forecasted timing of achievement. During the nine months ended September 30, 2020, adjustments to the fair value of contingent consideration resulted in a decrease to the liability due to the movement in the forecasted timing of achievement, partially offset by accretion. 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 September 30, 2020 December 31, 2019 Beginning Balance $ 185,157 $ 18,773 Amounts acquired — 171,300 Changes in fair value included in earnings ( 4,854 ) ( 4,916 ) Ending Balance $ 180,303 $ 185,157 |
Intangible Assets
Intangible Assets | 9 Months Ended |
Sep. 30, 2020 | |
Intangible Assets [Abstract] | |
Intangible Assets | 4. INTANGIBLE ASSETS The following table provides a summary of the Company’s intangible assets: September 30, 2020 December 31, 2019 Estimated Useful Life Cost Accumulated Amortization Cost Accumulated Amortization Technology 3 - 15 years $ 11,691 $ 9,575 $ 11,691 $ 8,131 IPR&D 126,321 — 126,321 — Total $ 138,012 $ 9,575 $ 138,012 $ 8,131 Amortization expense of intangible assets with definite lives was $ 467 and $ 486 for the three months ended September 30, 2020 and 2019 and $ 1,444 and $ 1,454 for the nine months ended September 30, 2020 and 2019. Future amortization expense of intangible assets with definite lives is projected as follows: 2020 (excluding the nine months ended September 30, 2020) $ 378 2021 1,511 2022 18 2023 18 2024 18 2025 and thereafter 173 Total $ 2,116 Current and future amortization expense excludes IPR&D assets. The following table provides a summary of the Company’s goodwill, which is not amortized, but rather is tested annually for impairment: Nine Months Ended Twelve Months Ended September 30, 2020 December 31, 2019 Beginning Balance $ 234,781 $ 105,257 Amounts acquired — 129,524 Ending Balance $ 234,781 $ 234,781 |
Accrued Liabilities
Accrued Liabilities | 9 Months Ended |
Sep. 30, 2020 | |
Accrued Liabilities [Abstract] | |
Accrued Liabilities | 5. ACCRUED LIABILITIES Accrued liabilities consisted of the following: September 30, December 31, 2020 2019 Accrued payroll and employee-related expenses $ 7,431 $ 6,748 Accrued commissions 3,887 8,734 Sales returns and allowances 3,058 3,979 Accrued bonus 2,500 10,840 Accrued taxes and value-added taxes payable 1,165 1,658 Accrued royalties 687 732 Other accrued liabilities 402 59 Total $ 19,130 $ 32,750 |
Indebtedness
Indebtedness | 9 Months Ended |
Sep. 30, 2020 | |
Indebtedness [Abstract] | |
Indebtedness | 6. 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 on 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 . Principal payments of the term loan are to be made ratably commencing March 1, 2021 through the loan’s maturity date. If the Company meets certain conditions, as specified by the Loan Agreement, the commencement of term loan principal payments may be deferred by an additional six months . 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 $ 405 accrued in the outstanding loan balance as of September 30, 2020. Additionally, the originating financing costs related to the term loan of $ 420 are netted against the outstanding loan balance and 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, 2020, the Company had no borrowings under the revolving credit facility and had borrowing availability of $ 8,750 . Financing costs related to the revolving line of credit are included in other assets and amortized ratably over the twelve-month period of the annual fee. On April 29, 2020, the Company and SVB entered into an amendment to the Loan Agreement which modified a covenant related to the Company’s liquidity ratio through the third quarter 2020 testing date and increased the early termination fees for both the term loan and revolving line of credit. The amendment was treated as a debt modification. 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. Future maturities of long-term debt are projected as follows: 2020 (excluding the nine months ended September 30, 2020) $ — 2021 14,286 2022 17,143 2023 17,143 2024 11,428 Total long-term debt, of which $ 10,000 is current and $ 50,000 is noncurrent $ 60,000 |
Leases
Leases | 9 Months Ended |
Sep. 30, 2020 | |
Leases [Abstract] | |
Leases | 7. LEASES The Company has operating and finance leases for corporate office 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 incremental borrowing rates for the reporting periods are as follows: September 30, 2020 December 31, 2019 Operating Leases Weighted average remaining lease term (years) 3.0 3.5 Weighted average discount rate 5.67 % 5.94 % Finance leases Weighted average remaining lease term (years) 9.9 11.0 Weighted average discount rate 6.91 % 7.05 % In connection with the terms of the Company’s corporate headquarters lease, a letter of credit in the amount of $ 1,250 was issued to the building lessor in October 2015. The letter of credit is renewed annually and remains outstanding as of September 30, 2020. The components of lease expense were as follows: Three Months Ended Nine Months Ended September 30, September 30, 2020 2019 2020 2019 Operating lease cost $ 293 $ 285 $ 986 $ 600 Finance lease cost: Amortization of right-of-use assets 260 247 786 747 Interest on lease liabilities 209 216 638 656 Total finance lease cost $ 469 $ 463 $ 1,424 $ 1,403 Short term lease expense was not significant for the three and nine months ended September 30, 2020 and 2019. Supplemental cash flow information related to leases was as follows: Nine Months Ended Nine Months Ended September 30, 2020 September 30, 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 944 $ 654 Operating cash flows from finance leases 638 656 Financing cash flows from finance leases 468 459 Right-of-use assets obtained in exchange for lease obligations: Operating Leases 1,691 1,884 Finance Leases — — Operating lease right-of-use asset obtained in business combination — 2,929 Early termination of operating lease 2,473 — Supplemental balance sheet information related to leases was as follows: September 30, 2020 December 31, 2019 Operating Leases Operating lease right-of-use assets $ 2,363 $ 4,032 Other current liabilities and current maturities of long-term debt and leases 1,271 1,465 Operating lease liabilities 1,324 2,796 Total operating lease liabilities $ 2,595 4,261 Finance Leases Property and equipment, at cost $ 14,673 14,733 Accumulated depreciation ( 4,983 ) ( 4,197 ) Property and equipment, net $ 9,690 10,536 Other current liabilities and current maturities of long-term debt and leases $ 799 753 Finance lease liabilities 11,172 11,774 Total finance lease liabilities $ 11,971 12,527 Maturities of lease liabilities as of September 30, 2020 were as follows: Operating Leases Finance Leases 2020 (excluding the nine months ended September 30, 2020) $ 284 $ 196 2021 1,207 1,602 2022 628 1,623 2023 230 1,646 2024 237 1,670 2025 and thereafter 244 9,799 Total payments $ 2,830 $ 16,536 Less imputed interest ( 235 ) ( 4,565 ) Total $ 2,595 $ 11,971 |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2020 | |
Commitments and Contingencies [Abstract] | |
Commitments and Contingencies | 8. COMMITMENTS AND CONTINGENCIES Royalty Agreements. The Company has certain 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 2023, while the other agreement remains in effect the later of 2025 or until 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. The Company recorded royalty expense in cost of revenue of $ 699 and $ 693 for the three months ended September 30, 2020 and 2019 and $ 1,880 and $ 2,142 for the nine months ended September 30, 2020 and 2019. Purchase Agreements. The Company enters into standard purchase agreements with certain vendors in the ordinary course of business, generally with terms that allow cancellation. 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. When management has assessed that a loss is probable and an amount can be reasonably estimated, the Company records a liability. 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 requires 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 and is cooperating with its investigation. However, the Company cannot predict when the investigation will be resolved, the outcome of the investigation or its potential impact on the Company. The Company acquired nContact Surgical, Inc. pursuant to a merger agreement dated October 4, 2015. The merger agreement provides for contingent consideration or “earnout” to be paid upon attaining specified regulatory approvals and clinical and revenue milestones. The merger agreement’s earnout provisions require 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 Company should be including revenues of certain additional items and products that the Company has not included in its earnout statements. The representative is seeking indemnification under the merger agreement related to its claims. The Company has engaged with the representative regarding the earnout objection statements and disputes the basis of the representative’s claims. The Company has not recorded any expense related to the outcome of this claim because it is not yet possible to determine if a potential loss is probable or reasonably estimable. |
Revenue
Revenue | 9 Months Ended |
Sep. 30, 2020 | |
Revenue [Abstract] | |
Revenue | 9. 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 (MIS), 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 select 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 limited 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 determination of the timing of transfer of control of products to customers and the estimation for the provision for returns. The Company considers the following indicators when determining when the control of products transfers to customers: (i) the Company has a right to payment in accordance with the shipping terms set forth in its contracts with customers; (ii) customers have legal title to products in accordance with shipping terms; (iii) the Company transfers physical possession of products either when the Company presents the products to a third party carrier for delivery to a customer (FOB shipping point) or when a customer receives the delivered goods (FOB destination); (iv) customers have the significant risks and rewards of ownership of products; and (v) customers have accepted products in connection with contractual shipping terms. In the normal course of business, the Company does not accept product returns unless a product is defective as manufactured. The Company establishes estimated provisions for returns based on historical experience. 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 recorded as selling expense and royalties are recorded as cost of revenue. See Note 12 for disaggregated revenue by geographic area and by product category. |
Income Tax Provision
Income Tax Provision | 9 Months Ended |
Sep. 30, 2020 | |
Income Tax Provision [Abstract] | |
Income Tax Provision | 10. INCOME TAX PROVISION The 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 for the period ended September 30, 2020 was estimated using the discrete method and was based on our financial results through the end of the 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 Company’s provision for income taxes for the period ended September 30, 2019 was computed by applying its estimated annual effective rate against its pre-tax results for the period. The effective tax rate for the three months ended September 30, 2020 and 2019 was 0.08 % and ( 0.81 %). The effective tax rate for the nine months ended September 30, 2020 and 2019 was ( 0.05 %) and ( 0.80 %). 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 the situation occurs, 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, 2020 | |
Equity Compensation Plans [Abstract] | |
Equity Compensation Plans | 11. 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 employees and may grant restricted stock and restricted stock units (collectively RSAs), nonstatutory stock options, performance share awards (PSAs) or stock appreciation rights to employees, directors and consultants. As administrator of the 2014 Plan, the Compensation Committee of the Board of Directors 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, 2020, 12,899 shares of common stock had been reserved for issuance under the 2014 Plan, and 1,916 shares were available for future grants. The Compensation Committee approved the grant of performance share awards to the Company’s named executive officers and certain other employees pursuant to the 2014 Plan. The form of award agreement for the PSAs (PSA Grant Form) provides 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 as measured against the specified targets at the end of the three-year performance period as determined by the Compensation Committee. The performance measurements include revenue CAGR as defined in the PSA Grant Form. Established threshold, target and maximum payout opportunities, which may range from 50 % to 200 % of the target amount, are used to calculate the number of shares that will be issuable when the award vests. Additionally, 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 (each as described in greater detail in the PSA Grant Form). 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. Stock options granted prior to 2018 under the 2014 Plan generally vest at a rate of 25 % on the first anniversary date of the grant and ratably each month thereafter over the following three years . Restricted stock awards granted prior to 2018 generally vest between one year and four years from the date of grant. Employee Stock Purchase Plan The ESPP is available to eligible employees as defined in the plan document. 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, 2020, there were 426 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 September 30, September 30, 2020 2019 2020 2019 Cost of revenue $ 366 $ 239 $ 1,004 $ 656 Research and development expenses 859 601 2,531 1,692 Selling, general and administrative expenses 4,324 3,447 12,591 10,468 Total $ 5,549 $ 4,287 $ 16,126 $ 12,816 |
Segment and Geographic Informat
Segment and Geographic Information | 9 Months Ended |
Sep. 30, 2020 | |
Segment and Geographic Information [Abstract] | |
Segment and Geographic Information | 12. SEGMENT AND GEOGRAPHIC INFORMATION The Company develops, manufactures, and sells devices designed primarily for the surgical ablation of cardiac tissue and systems designed for the exclusion of the left atrial appendage. 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 geographic areas, based on the location of customers, is as follows: Three Months Ended Nine Months Ended September 30, September 30, 2020 2019 2020 2019 United States $ 44,701 $ 46,123 $ 121,838 $ 136,292 Europe 6,514 6,325 16,775 20,097 Asia 3,196 3,927 9,367 12,311 Other international 346 239 826 786 Total international 10,056 10,491 26,968 33,194 Total revenue $ 54,757 $ 56,614 $ 148,806 $ 169,486 United States revenue by product type is as follows: Three Months Ended Nine Months Ended September 30, September 30, 2020 2019 2020 2019 Open ablation $ 19,911 $ 19,754 $ 54,679 $ 59,311 Minimally invasive ablation 6,979 9,006 18,295 25,860 Appendage management 17,430 16,907 47,870 49,075 Total ablation and appendage management 44,320 45,667 120,844 134,246 Valve tools 381 456 994 2,046 Total United States $ 44,701 $ 46,123 $ 121,838 $ 136,292 International revenue by product type is as follows: Three Months Ended Nine Months Ended September 30, September 30, 2020 2019 2020 2019 Open ablation $ 4,907 $ 5,850 $ 13,766 $ 18,942 Minimally invasive ablation 1,692 2,058 4,346 6,122 Appendage management 3,445 2,532 8,778 7,963 Total ablation and appendage management 10,044 10,440 26,890 33,027 Valve tools 12 51 78 167 Total international $ 10,056 $ 10,491 $ 26,968 $ 33,194 The Company’s long-lived assets are located primarily in the United States, except for $ 1,746 as of September 30, 2020 and $ 1,228 as of December 31, 2019, which are located primarily in Europe. |
Description of Business and S_2
Description of Business and Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2020 | |
Description of Business and Summary of Significant Accounting Policies [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 Condensed Consolidated Financial Statements should be read in conjunction with the audited financial statements of the Company included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2019 filed with the SEC. |
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 certain financial institutions. |
Investments | Investments —The Company invests primarily in U.S. government agencies and securities, 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 9 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 of 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 product 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, 2020 2019 Raw materials $ 12,229 $ 11,126 Work in process 2,774 1,260 Finished goods 19,323 17,028 Inventories $ 34,326 $ 29,414 |
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 estimated useful life by major asset category is the following: Estimated Useful Life Generators and related equipment 3 years Building under finance lease 15 years Computers, software and office equipment 3 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 recorded by the Company 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 related to generators and related equipment, which is recorded in cost of revenue, was $ 613 and $ 744 for the three months ended September 30, 2020 and 2019 and $ 1,898 and $ 2,228 for the nine months ended September 30, 2020 and 2019. As of September 30, 2020 and December 31, 2019, the net carrying value of generators and related equipment included in net property and equipment was $ 3,339 and $ 4,272 . |
Leases | Leases —The Company determines if an arrangement is a lease at inception of the contract. The Company 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 a purchase option whose exercise is reasonably certain. Operating leases are included in operating lease right-of-use (ROU) assets, other current liabilities and current maturities of leases and long-term debt, and operating lease liabilities. Finance leases are included in property and equipment, other current liabilities and current maturities of long-term debt and leases, and finance lease liabilities. ROU 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. Operating lease ROU assets and liabilities are measured and recorded at the commencement date based on the present value of lease payments over the lease term. The operating lease ROU asset excludes lease incentives. The Company uses the implicit rate when readily determinable, however, most of the leases do not provide an implicit rate and therefore, the Company uses the incremental borrowing rate based on the information available at measurement. The lease terms may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. 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 to effectively account for the operating lease ROU assets and liabilities based on the term of the underlying lease. Lease expense is recognized on a straight-line basis over the lease term. See Note 7 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. The IPR&D assets represent an estimate of the fair value of the pre-market approval (PMA) that could result from the aMAZE TM and CONVERGE IDE clinical trials. If the IPR&D projects are abandoned or regulatory approvals are not obtained, 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 assets 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 whenever events or circumstances indicate the carrying value of an asset may not be recoverable. |
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. |
Contingent Consideration and Other Noncurrent Liabilities | Contingent Consideration and Other Noncurrent Liabilities— This balance consists of contingent consideration recorded in business combinations, as well as deferred payroll taxes as a result of the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), deferred revenues, asset retirement obligations and other contractual obligations. The contingent consideration balance is included in noncurrent liabilities as settlement is both required and expected to be made primarily in shares of the Company’s common stock pursuant to the nContact Surgical, Inc. (nContact) merger agreement and SentreHEART, Inc. (SentreHEART) merger agreement. |
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 to record a valuation allowance. The Company has recorded a full valuation allowance against 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 the 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. |
Net Loss Per Share | Net Loss Per Share —Basic and diluted net loss per share is computed by dividing the net loss by the weighted average number of common shares outstanding during the period. Since the Company has experienced net losses for all periods presented, net loss per share excludes the effect of 2,687 and 3,613 stock options, restricted stock shares, restricted stock units and performance award shares as of September 30, 2020 and 2019 because they are anti-dilutive. Therefore, the number of shares calculated for basic net loss per share is also used for the diluted net loss per share calculation. |
Comprehensive Loss and Accumulated Other Comprehensive Income (Loss) | Comprehensive Loss and Accumulated Other Comprehensive Income (Loss) —In addition to net losses, 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 September 30, September 30, 2020 2019 2020 2019 Total accumulated other comprehensive loss at beginning of period $ ( 96 ) $ ( 154 ) $ ( 158 ) $ ( 199 ) Unrealized Gains (Losses) on Investments Balance at beginning of period $ 211 $ 46 $ 100 $ ( 37 ) Other comprehensive income (loss) before reclassifications ( 85 ) 33 7 116 Amounts reclassified from accumulated other comprehensive loss to other income (expense) — — 19 — Balance at end of period $ 126 $ 79 $ 126 $ 79 Foreign Currency Translation Adjustment Balance at beginning of period $ ( 307 ) $ ( 200 ) $ ( 258 ) $ ( 162 ) Other comprehensive income (loss) before reclassifications 290 ( 380 ) 177 ( 520 ) Amounts reclassified from accumulated other comprehensive loss to other income (expense) ( 52 ) 125 12 227 Balance at end of period $ ( 69 ) $ ( 455 ) $ ( 69 ) $ ( 455 ) Total accumulated other comprehensive income (loss) at end of period $ 57 $ ( 376 ) $ 57 $ ( 376 ) |
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 of and research related to new and existing products or concepts, preclinical studies, clinical trials and regulatory affairs. |
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, 2020 and 2019. |
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 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 $ 5,549 and $ 4,287 for the three months ended September 30, 2020 and 2019 and $ 16,126 and $ 12,816 for the nine months ended September 30, 2020 and 2019. 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 assumptions regarding several subjective variables. These variables include, but are not limited to, 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, restricted stock units and performance share awards based upon the grant date closing market price of the Company’s common stock. The estimated fair value of performance share awards may be adjusted over the performance period based on changes to estimates of performance target achievement. 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. |
Description of Business and S_3
Description of Business and Summary of Significant Accounting Policies (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Description of Business and Summary of Significant Accounting Policies [Abstract] | |
Summary Of Inventories | Inventories consist of the following: September 30, December 31, 2020 2019 Raw materials $ 12,229 $ 11,126 Work in process 2,774 1,260 Finished goods 19,323 17,028 Inventories $ 34,326 $ 29,414 |
Summary Of Property And Equipment | Estimated Useful Life Generators and related equipment 3 years Building under finance lease 15 years Computers, software and office equipment 3 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 |
Accumulated Other Comprehensive Income (Loss) | Accumulated other comprehensive income (loss) consisted of the following, net of tax: Three Months Ended Nine Months Ended September 30, September 30, 2020 2019 2020 2019 Total accumulated other comprehensive loss at beginning of period $ ( 96 ) $ ( 154 ) $ ( 158 ) $ ( 199 ) Unrealized Gains (Losses) on Investments Balance at beginning of period $ 211 $ 46 $ 100 $ ( 37 ) Other comprehensive income (loss) before reclassifications ( 85 ) 33 7 116 Amounts reclassified from accumulated other comprehensive loss to other income (expense) — — 19 — Balance at end of period $ 126 $ 79 $ 126 $ 79 Foreign Currency Translation Adjustment Balance at beginning of period $ ( 307 ) $ ( 200 ) $ ( 258 ) $ ( 162 ) Other comprehensive income (loss) before reclassifications 290 ( 380 ) 177 ( 520 ) Amounts reclassified from accumulated other comprehensive loss to other income (expense) ( 52 ) 125 12 227 Balance at end of period $ ( 69 ) $ ( 455 ) $ ( 69 ) $ ( 455 ) Total accumulated other comprehensive income (loss) at end of period $ 57 $ ( 376 ) $ 57 $ ( 376 ) |
Fair Value (Tables)
Fair Value (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Fair Value [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, 2020: Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Other Unobservable Inputs (Level 3) Total Assets: Money market funds $ — $ 30,891 $ — $ 30,891 Commercial paper — 80,870 — 80,870 U.S. government agencies and securities 40,522 — — 40,522 Corporate bonds — 71,779 — 71,779 Asset-backed securities — 23,033 — 23,033 Total assets $ 40,522 $ 206,573 $ — $ 247,095 Liabilities: Contingent consideration — — 180,303 180,303 Total liabilities $ — $ — $ 180,303 $ 180,303 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, 2020. 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, 2019: Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Other Unobservable Inputs (Level 3) Total Assets: Money market funds $ — $ 14,502 $ — $ 14,502 Repurchase agreements — 10,000 — 10,000 Commercial paper — 13,755 — 13,755 U.S. government agencies and securities 8,539 — — 8,539 Corporate bonds — 24,852 — 24,852 Asset-backed securities — 18,847 — 18,847 Total assets $ 8,539 $ 81,956 $ — $ 90,495 Liabilities: Contingent consideration — — 185,157 185,157 Total liabilities $ — $ — $ 185,157 $ 185,157 |
Level 3 Fair Value Measurements Using Significant Other Unobservable Inputs For Derivative Instruments | Weighted average Fair Value Valuation Technique Significant Input Range by relative fair value Probability of payment 77.30 - 85.00 % 81.83 % Regulatory & Commercialization-based milestones $ 180,303 Probability-weighted scenario approach Projected month and year of payment March 2022 - September 2025 n/a Discount rate 5.56 % 5.56 % |
Level 3 Fair Value Measurements Using Significant Other Unobservable Inputs 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 September 30, 2020 December 31, 2019 Beginning Balance $ 185,157 $ 18,773 Amounts acquired — 171,300 Changes in fair value included in earnings ( 4,854 ) ( 4,916 ) Ending Balance $ 180,303 $ 185,157 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Intangible Assets [Abstract] | |
Company's Intangible Assets | The following table provides a summary of the Company’s intangible assets: September 30, 2020 December 31, 2019 Estimated Useful Life Cost Accumulated Amortization Cost Accumulated Amortization Technology 3 - 15 years $ 11,691 $ 9,575 $ 11,691 $ 8,131 IPR&D 126,321 — 126,321 — Total $ 138,012 $ 9,575 $ 138,012 $ 8,131 |
Future Amortization Expense Related To Intangible Assets With Definite Lives | Future amortization expense of intangible assets with definite lives is projected as follows: 2020 (excluding the nine months ended September 30, 2020) $ 378 2021 1,511 2022 18 2023 18 2024 18 2025 and thereafter 173 Total $ 2,116 |
Summary Of Company's Goodwill | Nine Months Ended Twelve Months Ended September 30, 2020 December 31, 2019 Beginning Balance $ 234,781 $ 105,257 Amounts acquired — 129,524 Ending Balance $ 234,781 $ 234,781 |
Accrued Liabilities (Tables)
Accrued Liabilities (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Accrued Liabilities [Abstract] | |
Accrued Liabilities | Accrued liabilities consisted of the following: September 30, December 31, 2020 2019 Accrued payroll and employee-related expenses $ 7,431 $ 6,748 Accrued commissions 3,887 8,734 Sales returns and allowances 3,058 3,979 Accrued bonus 2,500 10,840 Accrued taxes and value-added taxes payable 1,165 1,658 Accrued royalties 687 732 Other accrued liabilities 402 59 Total $ 19,130 $ 32,750 |
Indebtedness (Tables)
Indebtedness (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Indebtedness [Abstract] | |
Future Maturities On Debt | 2020 (excluding the nine months ended September 30, 2020) $ — 2021 14,286 2022 17,143 2023 17,143 2024 11,428 Total long-term debt, of which $ 10,000 is current and $ 50,000 is noncurrent $ 60,000 |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Leases [Abstract] | |
Summary Of Weighted Average Remaining Lease Term And Incremental Borrowing Rates | September 30, 2020 December 31, 2019 Operating Leases Weighted average remaining lease term (years) 3.0 3.5 Weighted average discount rate 5.67 % 5.94 % Finance leases Weighted average remaining lease term (years) 9.9 11.0 Weighted average discount rate 6.91 % 7.05 % |
Summary Of Components Of Lease Expense | Three Months Ended Nine Months Ended September 30, September 30, 2020 2019 2020 2019 Operating lease cost $ 293 $ 285 $ 986 $ 600 Finance lease cost: Amortization of right-of-use assets 260 247 786 747 Interest on lease liabilities 209 216 638 656 Total finance lease cost $ 469 $ 463 $ 1,424 $ 1,403 |
Summary Of Supplemental Cash Flow Information Related To Leases | Nine Months Ended Nine Months Ended September 30, 2020 September 30, 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 944 $ 654 Operating cash flows from finance leases 638 656 Financing cash flows from finance leases 468 459 Right-of-use assets obtained in exchange for lease obligations: Operating Leases 1,691 1,884 Finance Leases — — Operating lease right-of-use asset obtained in business combination — 2,929 Early termination of operating lease 2,473 — |
Summary Of Supplemental Balance Sheet Information Related To Leases | September 30, 2020 December 31, 2019 Operating Leases Operating lease right-of-use assets $ 2,363 $ 4,032 Other current liabilities and current maturities of long-term debt and leases 1,271 1,465 Operating lease liabilities 1,324 2,796 Total operating lease liabilities $ 2,595 4,261 Finance Leases Property and equipment, at cost $ 14,673 14,733 Accumulated depreciation ( 4,983 ) ( 4,197 ) Property and equipment, net $ 9,690 10,536 Other current liabilities and current maturities of long-term debt and leases $ 799 753 Finance lease liabilities 11,172 11,774 Total finance lease liabilities $ 11,971 12,527 |
Schedule Of Maturities Of Lease Liabilities | Operating Leases Finance Leases 2020 (excluding the nine months ended September 30, 2020) $ 284 $ 196 2021 1,207 1,602 2022 628 1,623 2023 230 1,646 2024 237 1,670 2025 and thereafter 244 9,799 Total payments $ 2,830 $ 16,536 Less imputed interest ( 235 ) ( 4,565 ) Total $ 2,595 $ 11,971 |
Equity Compensation Plans (Tabl
Equity Compensation Plans (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Equity Compensation Plans [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 September 30, September 30, 2020 2019 2020 2019 Cost of revenue $ 366 $ 239 $ 1,004 $ 656 Research and development expenses 859 601 2,531 1,692 Selling, general and administrative expenses 4,324 3,447 12,591 10,468 Total $ 5,549 $ 4,287 $ 16,126 $ 12,816 |
Segment and Geographic Inform_2
Segment and Geographic Information (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Segment and Geographic Information [Abstract] | |
Revenue By Geographic Area | Three Months Ended Nine Months Ended September 30, September 30, 2020 2019 2020 2019 United States $ 44,701 $ 46,123 $ 121,838 $ 136,292 Europe 6,514 6,325 16,775 20,097 Asia 3,196 3,927 9,367 12,311 Other international 346 239 826 786 Total international 10,056 10,491 26,968 33,194 Total revenue $ 54,757 $ 56,614 $ 148,806 $ 169,486 |
Revenue By Product Type | United States revenue by product type is as follows: Three Months Ended Nine Months Ended September 30, September 30, 2020 2019 2020 2019 Open ablation $ 19,911 $ 19,754 $ 54,679 $ 59,311 Minimally invasive ablation 6,979 9,006 18,295 25,860 Appendage management 17,430 16,907 47,870 49,075 Total ablation and appendage management 44,320 45,667 120,844 134,246 Valve tools 381 456 994 2,046 Total United States $ 44,701 $ 46,123 $ 121,838 $ 136,292 International revenue by product type is as follows: Three Months Ended Nine Months Ended September 30, September 30, 2020 2019 2020 2019 Open ablation $ 4,907 $ 5,850 $ 13,766 $ 18,942 Minimally invasive ablation 1,692 2,058 4,346 6,122 Appendage management 3,445 2,532 8,778 7,963 Total ablation and appendage management 10,044 10,440 26,890 33,027 Valve tools 12 51 78 167 Total international $ 10,056 $ 10,491 $ 26,968 $ 33,194 |
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 | 9 Months Ended | |||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | |
Description Of Business And Significant Accounting Policies [Line Items] | |||||
Depreciation | $ 5,937 | $ 5,529 | |||
Property and equipment, net | $ 29,089 | $ 29,089 | $ 32,646 | ||
Options, restricted stock and performance based shares excluded from calculation of net loss per share | 2,687 | 3,613 | |||
Share-based compensation expense recognized | 5,549 | $ 4,287 | $ 16,126 | $ 12,816 | |
Generators And Related Equipment [Member] | |||||
Description Of Business And Significant Accounting Policies [Line Items] | |||||
Depreciation | 613 | $ 744 | 1,898 | $ 2,228 | |
Carrying Amount of Loaned Equipment [Member] | |||||
Description Of Business And Significant Accounting Policies [Line Items] | |||||
Property and equipment, net | $ 3,339 | $ 3,339 | $ 4,272 | ||
Short-term Debt [Member] | |||||
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, 2020 | Dec. 31, 2019 |
Description of Business and Summary of Significant Accounting Policies [Abstract] | ||
Raw materials | $ 12,229 | $ 11,126 |
Work in process | 2,774 | 1,260 |
Finished goods | 19,323 | 17,028 |
Inventories | $ 34,326 | $ 29,414 |
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, 2020 | |
Building [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated Useful Life | 15 years |
Computer and Other Office Equipment [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated Useful Life | 3 years |
Minimum [Member] | Generator and Related Equipment [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated Useful Life | 3 years |
Minimum [Member] | Machinery, Equipment and Vehicles [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated Useful Life | 3 years |
Minimum [Member] | Furniture and Fixtures [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated Useful Life | 3 years |
Minimum [Member] | Leasehold Improvements [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated Useful Life | 5 years |
Minimum [Member] | Assets Held Under Capital Leases [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated Useful Life | 3 years |
Maximum [Member] | Machinery, Equipment and Vehicles [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated Useful Life | 7 years |
Maximum [Member] | Furniture and Fixtures [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated Useful Life | 7 years |
Maximum [Member] | Leasehold Improvements [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated Useful Life | 15 years |
Maximum [Member] | Assets Held Under Capital Leases [Member] | |
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 (Accumulated Other Comprehensive Income (Loss)) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Total accumulated other comprehensive (loss) income at beginning of period | $ (96) | $ (154) | $ (158) | $ (199) |
Total accumulated other comprehensive loss at end of period | 57 | (376) | 57 | (376) |
Unrealized Gains (Losses) on Investments [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Total accumulated other comprehensive (loss) income at beginning of period | 211 | 46 | 100 | (37) |
Other comprehensive income (loss) before reclassifications | (85) | 33 | 7 | 116 |
Amounts reclassified from accumulated other comprehensive (loss) income to other income (expense) | 19 | |||
Total accumulated other comprehensive loss at end of period | 126 | 79 | 126 | 79 |
Foreign Currency Translation Adjustment [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Total accumulated other comprehensive (loss) income at beginning of period | (307) | (200) | (258) | (162) |
Other comprehensive income (loss) before reclassifications | 290 | (380) | 177 | (520) |
Amounts reclassified from accumulated other comprehensive (loss) income to other income (expense) | (52) | 125 | 12 | 227 |
Total accumulated other comprehensive loss at end of period | $ (69) | $ (455) | $ (69) | $ (455) |
Fair Value (Narrative) (Details
Fair Value (Narrative) (Details) $ in Thousands | 3 Months Ended |
Sep. 30, 2020USD ($) | |
Fair Value [Abstract] | |
Net increase in fair value of contingent consideration | $ 192 |
Fair Value (Financial Assets An
Fair Value (Financial Assets And Liabilities Measured At Fair Value On A Recurring Basis) (Details) - Fair Value, Measurements, Recurring [Member] - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Assets: | ||
Total assets | $ 247,095 | $ 90,495 |
Liabilities: | ||
Acquisition-related contingent consideration | 180,303 | 185,157 |
Total liabilities | 180,303 | 185,157 |
Money Market Funds [Member] | ||
Assets: | ||
Total assets | 30,891 | 14,502 |
Repurchase Agreements [Member] | ||
Assets: | ||
Total assets | 10,000 | |
Commercial Paper [Member] | ||
Assets: | ||
Total assets | 80,870 | 13,755 |
U.S. Government Agencies and Securities [Member] | ||
Assets: | ||
Total assets | 40,522 | 8,539 |
Corporate Bonds [Member] | ||
Assets: | ||
Total assets | 71,779 | 24,852 |
Asset-backed Securities [Member] | ||
Assets: | ||
Total assets | 23,033 | 18,847 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ||
Assets: | ||
Total assets | 40,522 | 8,539 |
Liabilities: | ||
Acquisition-related contingent consideration | ||
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | U.S. Government Agencies and Securities [Member] | ||
Assets: | ||
Total assets | 40,522 | 8,539 |
Significant Other Observable Inputs (Level 2) [Member] | ||
Assets: | ||
Total assets | 206,573 | 81,956 |
Liabilities: | ||
Acquisition-related contingent consideration | ||
Significant Other Observable Inputs (Level 2) [Member] | Money Market Funds [Member] | ||
Assets: | ||
Total assets | 30,891 | 14,502 |
Significant Other Observable Inputs (Level 2) [Member] | Repurchase Agreements [Member] | ||
Assets: | ||
Total assets | 10,000 | |
Significant Other Observable Inputs (Level 2) [Member] | Commercial Paper [Member] | ||
Assets: | ||
Total assets | 80,870 | 13,755 |
Significant Other Observable Inputs (Level 2) [Member] | Corporate Bonds [Member] | ||
Assets: | ||
Total assets | 71,779 | 24,852 |
Significant Other Observable Inputs (Level 2) [Member] | Asset-backed Securities [Member] | ||
Assets: | ||
Total assets | 23,033 | 18,847 |
Significant Other Unobservable Inputs (Level 3) [Member] | ||
Liabilities: | ||
Acquisition-related contingent consideration | 180,303 | 185,157 |
Total liabilities | $ 180,303 | $ 185,157 |
Fair Value (Level 3 Fair Value
Fair Value (Level 3 Fair Value Measurements Using Significant Other Unobservable Inputs For Acquisition-Related Contingent Consideration (Recurring)) (Details) - Significant Other Unobservable Inputs (Level 3) [Member] $ in Thousands | 9 Months Ended |
Sep. 30, 2020USD ($) | |
Fair Value, Measurements, Recurring [Member] | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Regulatory & Commercialization-based milestones | $ 180,303 |
Fair Value, Measurements, Recurring [Member] | Measurement Input, Discount Rate [Member] | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Contingent consideration, measurement input | 5.56% |
Minimum [Member] | Measurement Input, Year Projection [Member] | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Projected fiscal year of payment | March 2022 |
Minimum [Member] | Fair Value, Measurements, Recurring [Member] | Measurement Input, Probabilty Of Payment [Member] | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Contingent consideration, measurement input | 77.30% |
Maximum [Member] | Fair Value, Measurements, Recurring [Member] | Measurement Input, Probabilty Of Payment [Member] | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Contingent consideration, measurement input | 85.00% |
Maximum [Member] | Fair Value, Measurements, Recurring [Member] | Measurement Input, Year Projection [Member] | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Projected fiscal year of payment | September 2025 |
Weighted Average [Member] | Fair Value, Measurements, Recurring [Member] | Measurement Input, Probabilty Of Payment [Member] | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Contingent consideration, measurement input | 81.83% |
Weighted Average [Member] | Fair Value, Measurements, Recurring [Member] | Measurement Input, Discount Rate [Member] | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Contingent consideration, measurement input | 5.56% |
Fair Value (Level 3 Fair Valu_2
Fair Value (Level 3 Fair Value Measurements Using Significant Other Unobservable Inputs For Acquisition-Related Contingent Consideration) (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2020 | Dec. 31, 2019 | |
Fair Value [Abstract] | ||
Beginning Balance | $ 185,157 | $ 18,773 |
Amounts acquired | 171,300 | |
Changes in fair value included in earnings | (4,854) | (4,916) |
Ending Balance | $ 180,303 | $ 185,157 |
Intangible Assets (Narrative) (
Intangible Assets (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Finite-Lived Intangible Assets [Line Items] | ||||
Amortization of intangible assets | $ 467 | $ 486 | $ 1,444 | $ 1,454 |
Technology [Member] | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Estimated Useful Life | 3 years | |||
Maximum [Member] | Technology [Member] | ||||
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 | 9 Months Ended | |
Sep. 30, 2020 | Dec. 31, 2019 | |
Finite-Lived Intangible Assets [Line Items] | ||
Cost | $ 138,012 | $ 138,012 |
Accumulated Amortization | $ 9,575 | 8,131 |
Technology [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Estimated Useful Life | 3 years | |
Cost | $ 11,691 | 11,691 |
Accumulated Amortization | 9,575 | 8,131 |
IPR&D [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Cost | $ 126,321 | $ 126,321 |
Maximum [Member] | Technology [Member] | ||
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, 2020USD ($) |
Intangible Assets [Abstract] | |
2020 (excluding the nine months ended September 30, 2020) | $ 378 |
2021 | 1,511 |
2022 | 18 |
2023 | 18 |
2024 | 18 |
2025 and thereafter | 173 |
Total | $ 2,116 |
Intangible Assets (Summary Of C
Intangible Assets (Summary Of Company's Goodwill) (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2020 | Dec. 31, 2019 | |
Intangible Assets [Abstract] | ||
Beginning Balance | $ 234,781 | $ 105,257 |
Amounts acquired | 129,524 | |
Ending Balance | $ 234,781 | $ 234,781 |
Accrued Liabilities (Accrued Li
Accrued Liabilities (Accrued Liabilities) (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Accrued Liabilities [Abstract] | ||
Accrued payroll and employee-related expenses | $ 7,431 | $ 6,748 |
Sales returns and allowances | 3,058 | 3,979 |
Accrued commissions | 3,887 | 8,734 |
Accrued bonus | 2,500 | 10,840 |
Accrued taxes and value-added taxes payable | 1,165 | 1,658 |
Accrued royalties | 687 | 732 |
Other accrued liabilities | 402 | 59 |
Total | $ 19,130 | $ 32,750 |
Indebtedness (Narrative) (Detai
Indebtedness (Narrative) (Details) | 9 Months Ended |
Sep. 30, 2020USD ($) | |
Maximum [Member] | |
Line of Credit Facility [Line Items] | |
Letter of credit required to landlord | $ 1,250,000 |
Silicon Valley Bank Agreement [Member] | |
Line of Credit Facility [Line Items] | |
Totcal combined debt, maximum amount outstanding | $ 70,000,000 |
Upon certain conditions met, deferred loan payment period | 6 months |
Silicon Valley Bank Agreement [Member] | Revolving Credit Facility [Member] | |
Line of Credit Facility [Line Items] | |
Line of credit, maximum borrowing capacity | $ 20,000,000 |
Line of credit, borrowings | $ 0 |
Maturity date | Aug. 1, 2024 |
Line of credit, revolving line of credit | $ 8,750,000 |
Borrowing availability threshold | $ 20,000,000 |
Annual facility fee | 0.15% |
Silicon Valley Bank Agreement [Member] | Revolving Credit Facility [Member] | Prime Rate [Member] | |
Line of Credit Facility [Line Items] | |
Applicable interest rate | 5.00% |
Term Loan [Member] | Silicon Valley Bank Agreement [Member] | |
Line of Credit Facility [Line Items] | |
Loan amount | $ 60,000,000 |
Annual commitment fee, percentage | 3.00% |
Accrued fee amount | $ 405,000 |
Financing costs | $ 420,000 |
Term Loan [Member] | Silicon Valley Bank Agreement [Member] | Prime Rate [Member] | |
Line of Credit Facility [Line Items] | |
Basis rate | 0.75% |
Interest rate | 5.00% |
Indebtedness (Future Maturities
Indebtedness (Future Maturities On Debt) (Details) $ in Thousands | Sep. 30, 2020USD ($) |
Indebtedness [Abstract] | |
2021 | $ 14,286 |
2022 | 17,143 |
2023 | 17,143 |
2024 | 11,428 |
Total long-term debt, of which $10,000 is current and $50,000 is noncurrent | 60,000 |
Current | 10,000 |
Noncurrent | $ 50,000 |
Leases (Narrative) (Details)
Leases (Narrative) (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 | Oct. 31, 2015 |
Lessee, Lease, Description [Line Items] | |||
Operating lease right-of-use assets | $ 2,363 | $ 4,032 | |
Operating lease liabilities | $ 1,324 | $ 2,796 | |
Minimum [Member] | |||
Lessee, Lease, Description [Line Items] | |||
Lessee, Operating Lease, Term of Contract | 1 year | ||
Lessee, Finance Lease, Term of Contract | 1 year | ||
Maximum [Member] | |||
Lessee, Lease, Description [Line Items] | |||
Lessee, Operating Lease, Term of Contract | 10 years | ||
Letter of Credit [Member] | Mason Lease [Member] | |||
Lessee, Lease, Description [Line Items] | |||
Letter of credit outstanding | $ 1,250 |
Leases (Summary Of Weighted Ave
Leases (Summary Of Weighted Average Remaining Lease Term And Incremental Borrowing Rates) (Details) | Sep. 30, 2020 | Dec. 31, 2019 |
Leases [Abstract] | ||
Operating Leases, Weighted average remaining lease term (years) | 3 years | 3 years 6 months |
Operating Leases, Weighted average discount rate | 5.67% | 5.94% |
Finance Leases, Weighted average remaining lease term (years) | 9 years 10 months 24 days | 11 years |
Finance Leases, Weighted average discount rate | 6.91% | 7.05% |
Leases (Summary Of Components O
Leases (Summary Of Components Of Lease Expense) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Leases [Abstract] | ||||
Operating lease cost | $ 293 | $ 285 | $ 986 | $ 600 |
Amortization of right-of-use assets | 260 | 247 | 786 | 747 |
Interest on lease liabilities | 209 | 216 | 638 | 656 |
Total finance lease cost | $ 469 | $ 463 | $ 1,424 | $ 1,403 |
Leases (Summary Of Supplemental
Leases (Summary Of Supplemental Cash Flow Information Related To Leases) (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Leases [Abstract] | ||
Operating cash flows from operating leases | $ 944 | $ 654 |
Operating cash flows from finance leases | 638 | 656 |
Financing cash flows from finance leases | 468 | 459 |
Operating Leases | 1,691 | 1,884 |
Operating lease right-of-use asset obtained in business combination | $ 2,929 | |
Early termination of operating lease | $ 2,473 |
Leases (Summary Of Supplement_2
Leases (Summary Of Supplemental Balance Sheet Information Related To Leases) (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Lessee, Lease, Description [Line Items] | ||
Operating lease right-of-use assets | $ 2,363 | $ 4,032 |
Other current liabilities and current maturities of long-term debt and leases | 1,271 | 1,465 |
Operating lease liabilities | 1,324 | 2,796 |
Total operating lease liabilities | 2,595 | 4,261 |
Property and equipment, net | 29,089 | 32,646 |
Other current liabilities and current maturities of long-term debt and leases | 799 | 753 |
Finance lease liabilities | 11,172 | 11,774 |
Total finance lease liabilities | 11,971 | 12,527 |
Assets Held Under Capital Leases [Member] | ||
Lessee, Lease, Description [Line Items] | ||
Finance Leases, Property and equipment, at cost | 14,673 | 14,733 |
Finance Leases, Accumulated depreciation | (4,983) | (4,197) |
Finance Leases, Property and equipment, net | $ 9,690 | $ 10,536 |
Leases (Schedule Of Maturities
Leases (Schedule Of Maturities Of Lease Liabilities) (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Leases [Abstract] | ||
2020 (excluding the nine months ended September 30, 2020) | $ 284 | |
2021 | 1,207 | |
2022 | 628 | |
2023 | 230 | |
2024 | 237 | |
2025 and thereafter | 244 | |
Total payments | 2,830 | |
Less imputed interest | (235) | |
Total | 2,595 | $ 4,261 |
2020 (excluding the nine months ended September 30, 2020) | 196 | |
2021 | 1,602 | |
2022 | 1,623 | |
2023 | 1,646 | |
2024 | 1,670 | |
2025 and thereafter | 9,799 | |
Total payments | 16,536 | |
Less imputed interest | (4,565) | |
Total | $ 11,971 | $ 12,527 |
Commitments and Contingencies (
Commitments and Contingencies (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Commitments and Contingencies [Line Items] | ||||
Royalty expense | $ 699 | $ 693 | $ 1,880 | $ 2,142 |
Minimum [Member] | ||||
Commitments and Contingencies [Line Items] | ||||
Royalty rates | 3.00% | |||
Maximum [Member] | ||||
Commitments and Contingencies [Line Items] | ||||
Royalty rates | 5.00% |
Income Tax Provision (Narrative
Income Tax Provision (Narrative) (Details) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Income Tax Provision [Abstract] | ||||
Effective tax rate | 0.08% | (0.81%) | (0.05%) | (0.80%) |
Federal tax at statutory rate | 21.00% |
Equity Compensation Plans (Narr
Equity Compensation Plans (Narrative) (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2020USD ($)itemshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of share-based incentive plans | item | 2 |
Participants purchase limit shares | 3,000 |
Offering period | 6 months |
Minimum [Member] | Restricted Stock [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Vesting period | 1 year |
Maximum [Member] | Restricted Stock [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Vesting period | 4 years |
2014 Plan [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Common stock reserved for issuance | 12,899,000 |
Shares available for future grants | 1,916,000 |
2014 Plan [Member] | Employee Stock Option [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Exercisable period beginning | 3 years |
2014 Plan [Member] | Performance Shares [Member] | |
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 [Member] | Minimum [Member] | Performance Shares [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Performance stock award threshold, target and maximum payout opportunity percentage | 50.00% |
2014 Plan [Member] | Maximum [Member] | Performance Shares [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Performance stock award threshold, target and maximum payout opportunity percentage | 200.00% |
2008 Employee Stock Purchase Plan [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Common stock reserved for issuance | 426,000 |
Company's common stock may be purchased at a discount | 15.00% |
Participants purchase limit value | $ | $ 25 |
First Anniversary Date Of Grant [Member] | 2014 Plan [Member] | Employee Stock Option [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Annual vesting percentage | 25.00% |
First, Second, And Third Anniversaries [Member] | Restricted Stock [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Annual vesting percentage | 33.30% |
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, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Total | $ 5,549 | $ 4,287 | $ 16,126 | $ 12,816 |
Cost of Revenue [Member] | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Total | 366 | 239 | 1,004 | 656 |
Research and Development Expenses [Member] | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Total | 859 | 601 | 2,531 | 1,692 |
Selling, General and Administrative Expenses [Member] | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Total | $ 4,324 | $ 3,447 | $ 12,591 | $ 10,468 |
Segment and Geographic Inform_3
Segment and Geographic Information (Narrative) (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Europe [Member] | ||
Long-lived assets | $ 1,746 | $ 1,228 |
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, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenue recognized from contracts with customers | $ 54,757 | $ 56,614 | $ 148,806 | $ 169,486 |
Revenue | 54,757 | 56,614 | 148,806 | 169,486 |
United States [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenue recognized from contracts with customers | 44,701 | 46,123 | 121,838 | 136,292 |
Revenue | 44,701 | 46,123 | 121,838 | 136,292 |
Europe [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenue recognized from contracts with customers | 6,514 | 6,325 | 16,775 | 20,097 |
Revenue | 6,514 | 6,325 | 16,775 | 20,097 |
Asia [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenue recognized from contracts with customers | 3,196 | 3,927 | 9,367 | 12,311 |
Revenue | 3,196 | 3,927 | 9,367 | 12,311 |
Other International [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenue recognized from contracts with customers | 346 | 239 | 826 | 786 |
Revenue | 346 | 239 | 826 | 786 |
International [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenue recognized from contracts with customers | 10,056 | 10,491 | 26,968 | 33,194 |
Revenue | $ 10,056 | $ 10,491 | $ 26,968 | $ 33,194 |
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, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Revenue from External Customer [Line Items] | ||||
Revenue | $ 54,757 | $ 56,614 | $ 148,806 | $ 169,486 |
United States [Member] | ||||
Revenue from External Customer [Line Items] | ||||
Revenue | 44,701 | 46,123 | 121,838 | 136,292 |
United States [Member] | Open Ablation [Member] | ||||
Revenue from External Customer [Line Items] | ||||
Revenue | 19,911 | 19,754 | 54,679 | 59,311 |
United States [Member] | Minimally Invasive Ablation [Member] | ||||
Revenue from External Customer [Line Items] | ||||
Revenue | 6,979 | 9,006 | 18,295 | 25,860 |
United States [Member] | Appendage Management [Member] | ||||
Revenue from External Customer [Line Items] | ||||
Revenue | 17,430 | 16,907 | 47,870 | 49,075 |
United States [Member] | Ablation And Appendage Management [Member] | ||||
Revenue from External Customer [Line Items] | ||||
Revenue | 44,320 | 45,667 | 120,844 | 134,246 |
United States [Member] | Valve Tools [Member] | ||||
Revenue from External Customer [Line Items] | ||||
Revenue | 381 | 456 | 994 | 2,046 |
International [Member] | ||||
Revenue from External Customer [Line Items] | ||||
Revenue | 10,056 | 10,491 | 26,968 | 33,194 |
International [Member] | Open Ablation [Member] | ||||
Revenue from External Customer [Line Items] | ||||
Revenue | 4,907 | 5,850 | 13,766 | 18,942 |
International [Member] | Minimally Invasive Ablation [Member] | ||||
Revenue from External Customer [Line Items] | ||||
Revenue | 1,692 | 2,058 | 4,346 | 6,122 |
International [Member] | Appendage Management [Member] | ||||
Revenue from External Customer [Line Items] | ||||
Revenue | 3,445 | 2,532 | 8,778 | 7,963 |
International [Member] | Ablation And Appendage Management [Member] | ||||
Revenue from External Customer [Line Items] | ||||
Revenue | 10,044 | 10,440 | 26,890 | 33,027 |
International [Member] | Valve Tools [Member] | ||||
Revenue from External Customer [Line Items] | ||||
Revenue | $ 12 | $ 51 | $ 78 | $ 167 |