AtriCure (ATRC) 10-Q 3 May 23 2023 Q1 Quarterly report Financial data

Cover

Cover - shares	3 Months Ended
	Mar. 31, 2023	Apr. 28, 2023
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Mar. 31, 2023
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		47,242,346
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2023
Document Fiscal Period Focus	Q1
Amendment Flag	false
Entity Central Index Key	0001323885

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Current assets:
Cash and cash equivalents	$ 77,341	$ 58,099
Short-term investments	58,519	63,014
Accounts receivable, less allowance for credit losses of $230	45,661	42,693
Inventories	48,848	45,931
Prepaid and other current assets	7,956	5,477
Total current assets	238,325	215,214
Long-term investments	25,561	51,509
Property and equipment, net	39,607	38,833
Operating lease right-of-use assets	4,605	3,787
Intangible assets, net	38,601	39,339
Goodwill	234,781	234,781
Other noncurrent assets	1,620	1,985
Total Assets	583,100	585,448
Current liabilities:
Accounts payable	23,561	19,898
Accrued liabilities	28,233	33,022
Current maturities of debt and leases	10,677	5,472
Total current liabilities	62,471	58,392
Long-term debt	51,940	56,834
Finance lease liabilities	8,883	9,147
Operating lease liabilities	3,725	3,095
Other noncurrent liabilities	1,236	1,226
Total Liabilities	128,255	128,694
Commitments and contingencies (Note 9)
Stockholders’ Equity:
Common stock, $0.001 par value, 90,000 shares authorized and 47,244 and 46,563 issued and outstanding	47	47
Additional paid-in capital	790,965	787,422
Accumulated other comprehensive loss	(3,072)	(4,096)
Accumulated deficit	(333,095)	(326,619)
Total Stockholders’ Equity	454,845	456,754
Total Liabilities and Stockholders’ Equity	$ 583,100	$ 585,448

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) shares in Thousands, $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Statement of Financial Position [Abstract]
Accounts receivable, allowance for credit losses	$ 230
Common stock, par value (in usd per share)	$ 0.001	$ 0.001
Common stock, shares authorized (in shares)	90,000	90,000
Common stock, shares issued (in shares)	47,244	46,563
Common stock, shares outstanding (in shares)	47,244	46,563

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations and Comprehensive Loss - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Income Statement [Abstract]
Revenue	$ 93,494	$ 74,576
Cost of revenue	23,885	18,981
Gross profit	69,609	55,595
Operating expenses:
Research and development expenses	15,327	13,629
Selling, general and administrative expenses	60,064	56,116
Total operating expenses	75,391	69,745
Loss from operations	(5,782)	(14,150)
Other income (expense):
Interest expense	(1,636)	(1,000)
Interest income	875	116
Other	145	(93)
Loss before income tax expense	(6,398)	(15,127)
Income tax expense	78	56
Net loss	$ (6,476)	$ (15,183)
Net (loss) income per share
Basic net loss per common share (in usd per share)	$ (0.14)	$ (0.33)
Diluted net loss per common share (in usd per share)	$ (0.14)	$ (0.33)
Weighted average shares outstanding
Weighted average shares outstanding—basic (in shares)	46,107	45,528
Weighted average shares outstanding—diluted (in shares)	46,107	45,528
Comprehensive income (loss):
Unrealized gain (loss) on investments	$ 1,041	$ (2,339)
Foreign currency translation adjustment	(17)	(178)
Other comprehensive income (loss)	1,024	(2,517)
Net loss	(6,476)	(15,183)
Comprehensive loss, net of tax	$ (5,452)	$ (17,700)

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Stockholders' Equity - USD ($) shares in Thousands, $ in Thousands	Total	Common Stock	Additional Paid-in Capital	Accumulated Deficit	Accumulated Other Comprehensive Income (Loss)
Beginning Balance (in shares) at Dec. 31, 2021		46,016
Beginning Balance at Dec. 31, 2021	$ 483,756	$ 46	$ 764,811	$ (280,153)	$ (948)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Impact of equity compensation plans (in shares)		252
Impact of equity compensation plans	(3,231)		(3,231)
Other comprehensive loss	(2,517)				(2,517)
Net loss	(15,183)			(15,183)
Ending Balance (in shares) at Mar. 31, 2022		46,268
Ending Balance at Mar. 31, 2022	462,825	$ 46	761,580	(295,336)	(3,465)
Beginning Balance (in shares) at Dec. 31, 2022		46,563
Beginning Balance at Dec. 31, 2022	456,754	$ 47	787,422	(326,619)	(4,096)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Impact of equity compensation plans (in shares)		681
Impact of equity compensation plans	3,543		3,543
Other comprehensive loss	1,024				1,024
Net loss	(6,476)			(6,476)
Ending Balance (in shares) at Mar. 31, 2023		47,244
Ending Balance at Mar. 31, 2023	$ 454,845	$ 47	$ 790,965	$ (333,095)	$ (3,072)

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Cash flows from operating activities:
Net loss	$ (6,476)	$ (15,183)
Adjustments to reconcile net loss to net cash used in operating activities:
Share-based compensation expense	8,760	7,049
Depreciation	2,205	1,895
Amortization of intangible assets	738	972
Amortization of deferred financing costs	121	128
Amortization of investments	169	559
Other non-cash adjustments	160	338
Changes in operating assets and liabilities:
Accounts receivable	(2,900)	(7,950)
Inventories	(2,847)	(1,934)
Other current assets	(2,472)	(1,581)
Accounts payable	3,066	1,729
Accrued liabilities	(4,819)	(10,701)
Other noncurrent assets and liabilities	216	47
Net cash used in operating activities	(4,079)	(24,632)
Cash flows from investing activities:
Sales and maturities of available-for-sale securities	31,315	23,103
Purchases of property and equipment	(2,502)	(3,381)
Net cash provided by investing activities	28,813	19,722
Cash flows from financing activities:
Payments on leases	(240)	(217)
Payment of debt fees	(60)	0
Proceeds from stock option exercises	522	355
Shares repurchased for payment of taxes on stock awards	(5,739)	(10,635)
Net cash used in financing activities	(5,517)	(10,497)
Effect of exchange rate changes on cash and cash equivalents	25	(106)
Net increase (decrease) in cash and cash equivalents	19,242	(15,513)
Cash and cash equivalents—beginning of period	58,099	43,654
Cash and cash equivalents—end of period	77,341	28,141
Supplemental cash flow information:
Cash paid for interest	1,487	866
Net cash (received) paid for income taxes	(12)
Net cash (received) paid for income taxes		50
Non-cash investing and financing activities:
Accrued purchases of property and equipment	$ 787	$ 1,558

Description of Business and Sum

Description of Business and Summary of Significant Accounting Policies	3 Months Ended
	Mar. 31, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Description of Business and Summary of Significant Accounting Policies	DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Nature of the Business —The “Company” or “AtriCure” consists of AtriCure, Inc. and its wholly-owned subsidiaries. The Company is a leading innovator in surgical treatments and therapies for atrial fibrillation (Afib), left atrial appendage (LAA) management and post-operative pain 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). All intercompany accounts and transactions have been eliminated in consolidation. The accompanying interim financial statements are unaudited, but in the opinion of the Company’s management, contain all normal, recurring adjustments considered necessary to present fairly the financial position, results of operations and cash flows for the periods presented in conformity with accounting principles generally accepted in the United States of America (GAAP) applicable to interim periods. Certain information and footnote disclosures included in annual financial statements prepared in accordance with GAAP have been omitted or condensed. The Company believes the disclosures herein are adequate to make the information presented not misleading. Results of operations are not necessarily indicative of the results expected for the full year or for any future period. The accompanying interim financial statements should be read in conjunction with the Company’s audited financial statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2022 filed with the SEC. Except as discussed herein, there have been no changes in the Company's significant accounting policies for the three months ended March 31, 2023 as compared to the significant accounting policies described in the Company's Annual Report on Form 10-K for the year ended December 31, 2022. Use of Estimates —The preparation of the financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, including intangible assets, disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expense. Estimates are based on historical experience, where applicable, and other assumptions believed to be reasonable by management. Actual results could differ from those estimates. Segments —The Company's chief operating decision maker is its Chief Executive Officer, who reviews financial information presented on a consolidated basis, accompanied only by revenue information by product type and geographic area, for purposes of allocating resources and evaluating financial performance. Accordingly, the Company has determined that it has a single operating segment. The Company’s long-lived assets are located in the United States, except for $2,859 as of March 31, 2023 and $1,616 as of December 31, 2022 located primarily in Europe. Earnings Per Share —Basic and diluted net loss per share are computed by dividing the net loss by the weighted average number of shares of common shares outstanding during the period. Since the Company has experienced net losses for all periods presented, net loss per share excludes the effect of 1,882 and 1,567 shares as of March 31, 2023 and 2022 because they are anti-dilutive. Therefore, the number of shares used for basic and diluted net loss per share are the same. Share-Based Compensation —The Company recognizes share-based compensation expense for all share-based payment awards, including stock options, restricted stock awards, restricted stock units, performance share awards (PSAs) and stock purchases through an employee stock purchase plan, based on estimated fair values. The value of the portion of an award that is ultimately expected to vest is recognized as expense ratably over the service period. The Company estimated forfeitures at the time of grant and revises them, as necessary, in subsequent periods as actual forfeitures differ from those estimates. Effective January 1, 2023, the Company's policy was amended to account for forfeitures as they occur rather than estimating at the time of grant, and the effect on income from continuing operations and retained earnings is not significant.

Fair Value

Fair Value	3 Months Ended
	Mar. 31, 2023
Fair Value Disclosures [Abstract]
Fair Value	FAIR VALUEThe Financial Accounting Standards Board’s (FASB) Accounting Standards Codification (ASC) 820, “Fair Value Measurements and Disclosures” (ASC 820), defines fair value as the exchange price that would be received for an asset or paid to settle a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value must maximize the use 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 following table represents the Company’s fair value hierarchy for its financial assets measured at fair value on a recurring basis as of March 31, 2023: Quoted Prices in Significant Other Significant Other Total Assets: Money market funds $ — $ 72,418 $ — $ 72,418 Commercial paper — 2,977 — 2,977 Government and agency obligations 33,044 — — 33,044 Corporate bonds — 45,865 — 45,865 Asset-backed securities — 2,194 — 2,194 Total assets $ 33,044 $ 123,454 $ — $ 156,498 There were no changes in the levels or methodology of measurement of financial assets and liabilities during the three months ended March 31, 2023. The following table represents the Company’s fair value hierarchy for its financial assets measured at fair value on a recurring basis as of December 31, 2022: Quoted Prices in Significant Other Significant Other Total Assets: Money market funds $ — $ 54,414 $ — $ 54,414 Commercial paper — 11,935 — 11,935 Government and agency obligations 32,637 — — 32,637 Corporate bonds — 67,598 — 67,598 Asset-backed securities — 2,353 — 2,353 Total assets $ 32,637 $ 136,300 $ — $ 168,937 Contingent Consideration.

Investments

Investments	3 Months Ended
	Mar. 31, 2023
Investments, Debt and Equity Securities [Abstract]
Investments	INVESTMENTS Investments as of March 31, 2023 consisted of the following: Cost Basis Unrealized Fair Value Corporate bonds $ 47,477 $ (1,612) $ 45,865 Government and agency obligations 33,985 (941) 33,044 Commercial paper 2,977 — 2,977 Asset-backed securities 2,298 (104) 2,194 Total $ 86,737 $ (2,657) $ 84,080 Investments as of December 31, 2022 consisted of the following: Cost Basis Unrealized Fair Value Corporate bonds $ 69,832 $ (2,234) $ 67,598 Government and agency obligations 33,971 (1,334) 32,637 Commercial paper 11,935 — 11,935 Asset-backed securities 2,483 (130) 2,353 Total $ 118,221 $ (3,698) $ 114,523 The gross realized gains or losses from sales of available-for-sale investments were not significant in the three months ended March 31, 2023 and 2022. The cost and fair value of investments in debt securities, by contractual maturity, as of March 31, 2023 were as follows: Available-for-sale Amortized Cost Fair Value Due in 1 year or less $ 59,947 $ 58,519 Due after 1 year through 5 years 24,492 23,367 Due after 5 years through 10 years — — Instruments not due at a single maturity date 2,298 2,194 Total $ 86,737 $ 84,080

Inventories

Inventories	3 Months Ended
	Mar. 31, 2023
Inventory Disclosure [Abstract]
Inventories	INVENTORIES Inventories consist of the following: March 31, December 31, Raw materials $ 22,289 $ 19,880 Work in process 5,742 2,959 Finished goods 20,817 23,092 Total $ 48,848 $ 45,931

Intangible Assets

Intangible Assets	3 Months Ended
	Mar. 31, 2023
Goodwill and Intangible Assets Disclosure [Abstract]
Intangible Assets	INTANGIBLE ASSETS The following table provides a summary of the Company’s intangible assets: March 31, 2023 December 31, 2022 Cost Accumulated Cost Accumulated Technology $ 46,470 $ 7,869 $ 46,470 $ 7,131 Amortization expense of intangible assets was $738 and $972 for the three months ended March 31, 2023 and 2022. Future amortization expense is projected as follows: 2023 (excluding the three months ended March 31, 2023) $ 2,215 2024 2,953 2025 2,953 2026 2,953 2027 2,953 2028 and thereafter 24,574 Total $ 38,601

Accrued Liabilities

Accrued Liabilities	3 Months Ended
	Mar. 31, 2023
Payables and Accruals [Abstract]
Accrued Liabilities	ACCRUED LIABILITIES Accrued liabilities consist of the following: March 31, December 31, Accrued compensation and employee-related expenses $ 22,300 $ 26,924 Other accrued liabilities 3,033 3,301 Sales returns and allowances 2,900 2,797 Total $ 28,233 $ 33,022

Indebtedness

Indebtedness	3 Months Ended
	Mar. 31, 2023
Debt Disclosure [Abstract]
Indebtedness	INDEBTEDNESS Credit Facility. The Company has a Loan and Security Agreement, as amended and modified effective November 1, 2021, (Loan Agreement). Our primary banking relationship in the United States was with Silicon Valley Bank. All deposits and loans of Silicon Valley Bank were purchased by First-Citizens Bank & Trust Company, and our banking relationship is now with Silicon Valley Bank, a division of First-Citizens Bank & Trust Company as of March 31, 2023. The Loan Agreement provides a $60,000 term loan, a $30,000 revolving line of credit, and an option for an additional $30,000 in term loan borrowings. The Loan Agreement has a five year term, expiring November 2026. Principal payments under the Loan Agreement are to be made ratably commencing 24 months after inception 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 twelve months. The term loan accrues interest at the Prime Rate plus 1.25% and is subject to an additional 3.00% fee on the term loan principal amount at maturity. The Company is accruing the 3.00% fee over the term of the Loan Agreement, with $510 included in the outstanding loan balance as of March 31, 2023. Additionally, the unamortized original financing costs related to the term loan of $237 are netted against the outstanding loan balance in the Condensed Consolidated Balance Sheets and are amortized ratably over the term of the Loan Agreement. The revolving line of credit is subject to an annual facility fee of 0.20%, and any borrowings thereunder bear interest at the Prime Rate. Borrowing availability under the revolving credit facility is based on the lesser of $30,000 or a borrowing base calculation as defined by the Loan Agreement. As of March 31, 2023, the Company had no borrowings under the revolving credit facility and had borrowing availability of $28,750. 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, excluding the term loan final fee, are projected as follows: 2023 (excluding the three months ended March 31, 2023) $ 3,333 2024 20,000 2025 20,000 2026 16,667 Total long-term debt, of which $8,333 is current and $51,667 is noncurrent $ 60,000

Leases

Leases	3 Months Ended
	Mar. 31, 2023
Leases [Abstract]
Leases	LEASES The Company has operating and finance leases for office, manufacturing and warehouse facilities and equipment. The Company’s leases have remaining lease terms of less than one year to eight years. Options to renew or extend leases beyond their initial term have been excluded from measurement of the ROU assets and lease liabilities as exercise is not reasonably certain. The weighted average remaining lease term and the discount rate for the reporting periods are as follows: March 31, 2023 December 31, 2022 Operating Leases Weighted average remaining lease term (years) 5.3 4.4 Weighted average discount rate 5.36 % 4.60 % Finance Leases Weighted average remaining lease term (years) 7.4 7.6 Weighted average discount rate 6.92 % 6.92 % A $1,250 letter of credit issued to the lessor of the Company's corporate headquarters building is renewed annually and remains outstanding as of March 31, 2023. The components of lease expense are as follows: Three Months Ended 2023 2022 Operating lease cost $ 310 $ 286 Finance lease cost: Amortization of right-of-use assets 255 169 Interest on lease liabilities 175 189 Total finance lease cost $ 430 $ 358 Short-term lease expense was not significant for the three months ended March 31, 2023 and 2022. Supplemental cash flow information related to leases was as follows: Three Months Ended Three Months Ended Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows for operating leases $ 317 $ 251 Operating cash flows for finance leases 175 189 Financing cash flows for finance leases 240 217 Right-of-use assets obtained in exchange for lease obligations: Operating leases 1,061 — Finance leases — — Supplemental balance sheet information related to leases was as follows: March 31, 2023 December 31, 2022 Operating Leases Operating lease right-of-use assets $ 4,605 $ 3,787 Current maturities of leases 1,328 1,147 Operating lease liabilities 3,725 3,095 Total operating lease liabilities $ 5,053 $ 4,242 Finance Leases Property and equipment, at cost $ 14,620 $ 14,645 Accumulated depreciation (7,339) (7,109) Property and equipment, net $ 7,281 $ 7,536 Current maturities of leases $ 1,016 $ 992 Finance lease liabilities 8,883 9,147 Total finance lease liabilities $ 9,899 $ 10,139 Future maturities of lease liabilities as of March 31, 2023 were as follows: Operating Leases Finance Leases 2023 (excluding the three months ended March 31, 2023) $ 991 $ 1,250 2024 1,270 1,689 2025 1,034 1,638 2026 727 1,671 2027 754 1,703 2028 and thereafter 1,169 4,824 Total payments $ 5,945 $ 12,775 Less imputed interest (892) (2,876) Total $ 5,053 $ 9,899
Leases	LEASES The Company has operating and finance leases for office, manufacturing and warehouse facilities and equipment. The Company’s leases have remaining lease terms of less than one year to eight years. Options to renew or extend leases beyond their initial term have been excluded from measurement of the ROU assets and lease liabilities as exercise is not reasonably certain. The weighted average remaining lease term and the discount rate for the reporting periods are as follows: March 31, 2023 December 31, 2022 Operating Leases Weighted average remaining lease term (years) 5.3 4.4 Weighted average discount rate 5.36 % 4.60 % Finance Leases Weighted average remaining lease term (years) 7.4 7.6 Weighted average discount rate 6.92 % 6.92 % A $1,250 letter of credit issued to the lessor of the Company's corporate headquarters building is renewed annually and remains outstanding as of March 31, 2023. The components of lease expense are as follows: Three Months Ended 2023 2022 Operating lease cost $ 310 $ 286 Finance lease cost: Amortization of right-of-use assets 255 169 Interest on lease liabilities 175 189 Total finance lease cost $ 430 $ 358 Short-term lease expense was not significant for the three months ended March 31, 2023 and 2022. Supplemental cash flow information related to leases was as follows: Three Months Ended Three Months Ended Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows for operating leases $ 317 $ 251 Operating cash flows for finance leases 175 189 Financing cash flows for finance leases 240 217 Right-of-use assets obtained in exchange for lease obligations: Operating leases 1,061 — Finance leases — — Supplemental balance sheet information related to leases was as follows: March 31, 2023 December 31, 2022 Operating Leases Operating lease right-of-use assets $ 4,605 $ 3,787 Current maturities of leases 1,328 1,147 Operating lease liabilities 3,725 3,095 Total operating lease liabilities $ 5,053 $ 4,242 Finance Leases Property and equipment, at cost $ 14,620 $ 14,645 Accumulated depreciation (7,339) (7,109) Property and equipment, net $ 7,281 $ 7,536 Current maturities of leases $ 1,016 $ 992 Finance lease liabilities 8,883 9,147 Total finance lease liabilities $ 9,899 $ 10,139 Future maturities of lease liabilities as of March 31, 2023 were as follows: Operating Leases Finance Leases 2023 (excluding the three months ended March 31, 2023) $ 991 $ 1,250 2024 1,270 1,689 2025 1,034 1,638 2026 727 1,671 2027 754 1,703 2028 and thereafter 1,169 4,824 Total payments $ 5,945 $ 12,775 Less imputed interest (892) (2,876) Total $ 5,053 $ 9,899

Commitments and Contingencies

Commitments and Contingencies	3 Months Ended
	Mar. 31, 2023
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	COMMITMENTS AND CONTINGENCIES License Agreement. The Company has a license agreement that requires royalty payments of 5% of specified product sales. The agreement terminates the later of 2023 or upon expiration of the underlying patents or patent applications, which is expected to occur after 2023. Parties to the license agreement have the right at any time to terminate the agreement immediately for cause. Royalty expense of $901 and $794 was recorded for the three months ended March 31, 2023 and 2022 as a component of Cost of Revenue in the accompanying Condensed Consolidated Statement of Operations. Purchase Agreements. The Company enters into standard purchase agreements with suppliers 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. A liability is established once management determines a loss is probable and an amount can be reasonably estimated. The Company recognizes income from a favorable resolution of legal proceedings when the associated cash or assets are received. The Company received a Civil Investigative Demand (CID) from the U.S. Department of Justice (USDOJ) in December 2017 stating that it is investigating the Company to determine whether the Company has violated the False Claims Act, relating to the promotion of certain medical devices related to the treatment of atrial fibrillation for off-label use and submitted or caused to be submitted false claims to certain federal and state health care programs for medically unnecessary healthcare services related to the treatment of atrial fibrillation. The CID covers the period from January 2010 to December 2017 and required the production of documents and answers to written interrogatories. The Company had no knowledge of the investigation prior to receipt of the CID. The Company maintains rigorous policies and procedures to promote compliance with the False Claims Act and other applicable regulatory requirements. The Company provided the USDOJ with documents and answers to the written interrogatories. In March 2021, USDOJ informed the Company that its investigation was based on a lawsuit brought on behalf of the United States and various state and local governments under the qui tam provisions of federal and certain state and local False Claims Acts. Although the USDOJ and all of the state and local governments declined to intervene, the relator continues to pursue the case. During the third quarter of 2022, the relator filed a Fourth Amended Complaint, which dropped allegations of off-label promotion and now alleges that the Company paid illegal kickbacks to healthcare providers in exchange for using or referring the Company’s products, in violation of the federal Anti-Kickback Statute and various comparable state and local laws. While the Company is contesting the case, it is not possible to predict when this matter may be resolved or what impact, if any, the outcome of this matter might have on our consolidated financial position, results of operations, or cash flows. On August 23, 2022, the Cleveland Clinic Foundation (“Clinic”) and IDx Medical, Ltd. (“IDX”) filed a Demand for Arbitration against the Company with the American Arbitration Association (“AAA”), alleging that the Company breached certain provisions of the License Agreement dated December 9, 2003 among the Company, Clinic and IDX (“License Agreement”). Clinic and IDX allege the Company did not include the revenues from sales of certain products in its royalty payments due under the License Agreement. Clinic and IDX also allege that the Company did not provide related notices required under the License Agreement. The Demand for Arbitration requests a declaration that the termination of the License Agreement shall not occur until the expiration of certain patents and that the Company violated the License Agreement’s non-competition provisions. Clinic and IDX claim they are entitled to no less than $6,000 plus interest and costs, fees and expenses associated with their claims and future royalties. The Company filed its Answering Statement and Counterclaims to the allegations in September 2022, denying each claim and counterclaiming for breach of contract, correction of inventorship, declaratory judgment, patent prosecution and legal fees. This arbitration has been scheduled for May 2023. While the Company is contesting the case, it is not possible to predict when this matter may be resolved or what impact, if any, the outcome of this matter might have on our consolidated financial position, results of operations, or cash flows. During the first quarter of 2023, the Company entered into a legal settlement for $7,500 in connection with the settlement of claims filed against a competitor. As of March 31, 2023, the Company recorded a $4,000 gain for the proceeds received as a reduction to selling, general and administrative expenses. In April 2023, the Company collected the remaining $3,500 proceeds.

Revenue

Revenue	3 Months Ended
	Mar. 31, 2023
Segment Reporting [Abstract]
Revenue	REVENUE The Company develops, manufactures and sells devices designed primarily for surgical ablation of cardiac tissue, exclusion of the left atrial appendage, and blocking post-operative pain by temporarily ablating peripheral nerves. These devices are marketed to a broad base of medical centers globally. 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. United States revenue by product type is as follows: Three Months Ended 2023 2022 Open ablation $ 25,142 $ 18,974 Minimally invasive ablation 9,637 8,615 Pain management 11,068 8,014 Total ablation $ 45,847 $ 35,603 Appendage management 32,342 26,669 Total United States $ 78,189 $ 62,272 International revenue by product type is as follows: Three Months Ended 2023 2022 Open ablation $ 7,286 $ 6,492 Minimally invasive ablation 1,867 1,533 Pain management 228 140 Total ablation $ 9,381 $ 8,165 Appendage management 5,924 4,139 Total International $ 15,305 $ 12,304 Revenue attributed to customer geographic locations is as follows: Three Months Ended 2023 2022 United States $ 78,189 $ 62,272 Europe 9,401 7,237 Asia Pacific 5,402 4,557 Other International 502 510 Total International 15,305 12,304 Total Revenue $ 93,494 $ 74,576

Income Tax Provision

Income Tax Provision	3 Months Ended
	Mar. 31, 2023
Income Tax Disclosure [Abstract]
Income Tax Provision	INCOME TAX PROVISIONThe Company files federal, state and foreign income tax returns in jurisdictions with varying statutes of limitations. The Company uses the asset and liability method to determine its provision for income taxes. The Company’s provision for income taxes in interim periods is computed by applying the discrete method and is based on financial results through the end of the interim period. The Company determined that using the discrete method is more appropriate than using the annual effective tax rate method. The Company is unable to estimate the annual effective tax rate with sufficient precision to use the effective tax rate method, which requires a full-year projection of income. The effective tax rate for the three months ended March 31, 2023 and 2022 was (1.2%) and (0.4%). The Company’s worldwide effective tax rate differs from the US statutory rate of 21% primarily due to its valuation allowances. The Company's federal, state, local and foreign tax returns 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 net operating losses. However, if required, the Company will recognize interest and penalties within income tax expense and within the related tax liability.

Equity Compensation Plans

Equity Compensation Plans	3 Months Ended
	Mar. 31, 2023
Share-Based Payment Arrangement [Abstract]
Equity Compensation Plans	EQUITY COMPENSATION PLANS The Company has two share-based incentive plans: the 2014 Stock Incentive Plan (2014 Plan) and the 2018 Employee Stock Purchase Plan (ESPP). The Company is asking stockholders at the 2023 Annual Meeting of Stockholders to approve the 2023 Stock Incentive Plan, which if adopted, will replace the 2014 Plan. Stock Incentive Plan Under the 2014 Plan, the Board of Directors may grant incentive stock options to Company employees and may grant restricted stock awards, restricted stock units, nonstatutory stock options, performance share awards and stock appreciation rights to Company employees, directors and consultants. The Compensation Committee of the Board of Directors, as the administrator of the 2014 Plan, has the authority to determine the terms of any awards, including the number of shares subject to each award, the exercisability of the awards and the form of consideration. As of March 31, 2023, 13,999 shares of common stock had been reserved for issuance under the 2014 Plan, and 1,285 shares were available for future grants. Employee Stock Purchase Plan Under the ESPP, shares of the Company’s common stock may be purchased at a 15% discount of the lesser of the closing price of the Company’s common stock on the first or last trading days of the offering period. The offering period (currently six months) and the offering price are subject to change. Participants may not purchase more than $25 of the Company’s common stock in a calendar year or more than 3 shares during an offering period. As of March 31, 2023, there were 184 shares available for future issuance under the ESPP. Share-Based Compensation Expense Information The following table summarizes the allocation of share-based compensation expense: Three Months Ended 2023 2022 Cost of revenue $ 443 $ 571 Research and development expenses 1,304 1,130 Selling, general and administrative expenses 7,013 5,348 Total $ 8,760 $ 7,049

Comprehensive Loss and Accumula

Comprehensive Loss and Accumulated Other Comprehensive Loss	3 Months Ended
	Mar. 31, 2023
Equity [Abstract]
Comprehensive Loss and Accumulated Other Comprehensive Loss	COMPREHENSIVE LOSS AND ACCUMULATED OTHER COMPREHENSIVE LOSS In addition to net losses, comprehensive loss includes foreign currency translation adjustments and unrealized gains (losses) on investments. Accumulated other comprehensive loss consisted of the following, net of tax: Three Months Ended 2023 2022 Total accumulated other comprehensive loss at beginning of period $ (4,096) $ (948) Unrealized Gains (Losses) on Investments Balance at beginning of period $ (3,698) $ (887) Other comprehensive income (loss) before reclassifications 1,041 (2,339) Amounts reclassified to other income (expense) — — Balance at end of period $ (2,657) $ (3,226) Foreign Currency Translation Adjustment Balance at beginning of period $ (398) $ (61) Other comprehensive income (loss) before reclassifications 125 (261) Amounts reclassified to other income (expense) (142) 83 Balance at end of period $ (415) $ (239) Total accumulated other comprehensive loss at end of period $ (3,072) $ (3,465)

Description of Business and S_2

Description of Business and Summary of Significant Accounting Policies (Policy)	3 Months Ended
	Mar. 31, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Nature of the Business	Nature of the Business —The “Company” or “AtriCure” consists of AtriCure, Inc. and its wholly-owned subsidiaries. The Company is a leading innovator in surgical treatments and therapies for atrial fibrillation (Afib), left atrial appendage (LAA) management and post-operative pain 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). All intercompany accounts and transactions have been eliminated in consolidation. 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.
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. Estimates are based on historical experience, where applicable, and other assumptions believed to be reasonable by management. Actual results could differ from those estimates.
Segments	Segments—The Company's chief operating decision maker is its Chief Executive Officer, who reviews financial information presented on a consolidated basis, accompanied only by revenue information by product type and geographic area, for purposes of allocating resources and evaluating financial performance. Accordingly, the Company has determined that it has a single operating segment.
Earnings Per Share	Earnings Per Share—Basic and diluted net loss per share are computed by dividing the net loss by the weighted average number of shares of common shares outstanding during the period. Since the Company has experienced net losses for all periods presented, net loss per share excludes the effect of 1,882 and 1,567 shares as of March 31, 2023 and 2022 because they are anti-dilutive. Therefore, the number of shares used for basic and diluted net loss per share are the same.
Fair Value	FAIR VALUEThe Financial Accounting Standards Board’s (FASB) Accounting Standards Codification (ASC) 820, “Fair Value Measurements and Disclosures” (ASC 820), defines fair value as the exchange price that would be received for an asset or paid to settle a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value must maximize the use 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.
Comprehensive Loss and Accumulated Other Comprehensive Loss	In addition to net losses, comprehensive loss includes foreign currency translation adjustments and unrealized gains (losses) on investments.
Share-Based Compensation	Share-Based Compensation —The Company recognizes share-based compensation expense for all share-based payment awards, including stock options, restricted stock awards, restricted stock units, performance share awards (PSAs) and stock purchases through an employee stock purchase plan, based on estimated fair values. The value of the portion of an award that is ultimately expected to vest is recognized as expense ratably over the service period. The Company estimated forfeitures at the time of grant and revises them, as necessary, in subsequent periods as actual forfeitures differ from those estimates. Effective January 1, 2023, the Company's policy was amended to account for forfeitures as they occur rather than estimating at the time of grant, and the effect on income from continuing operations and retained earnings is not significant.

Fair Value (Tables)

Fair Value (Tables)	3 Months Ended
	Mar. 31, 2023
Fair Value Disclosures [Abstract]
Financial Assets and Liabilities Measured at Fair Value on a Recurring Basis	The following table represents the Company’s fair value hierarchy for its financial assets measured at fair value on a recurring basis as of March 31, 2023: Quoted Prices in Significant Other Significant Other Total Assets: Money market funds $ — $ 72,418 $ — $ 72,418 Commercial paper — 2,977 — 2,977 Government and agency obligations 33,044 — — 33,044 Corporate bonds — 45,865 — 45,865 Asset-backed securities — 2,194 — 2,194 Total assets $ 33,044 $ 123,454 $ — $ 156,498 The following table represents the Company’s fair value hierarchy for its financial assets measured at fair value on a recurring basis as of December 31, 2022: Quoted Prices in Significant Other Significant Other Total Assets: Money market funds $ — $ 54,414 $ — $ 54,414 Commercial paper — 11,935 — 11,935 Government and agency obligations 32,637 — — 32,637 Corporate bonds — 67,598 — 67,598 Asset-backed securities — 2,353 — 2,353 Total assets $ 32,637 $ 136,300 $ — $ 168,937

Investments (Tables)

Investments (Tables)	3 Months Ended
	Mar. 31, 2023
Investments, Debt and Equity Securities [Abstract]
Schedule of Available-for-Sale Securities Reconciliation	Investments as of March 31, 2023 consisted of the following: Cost Basis Unrealized Fair Value Corporate bonds $ 47,477 $ (1,612) $ 45,865 Government and agency obligations 33,985 (941) 33,044 Commercial paper 2,977 — 2,977 Asset-backed securities 2,298 (104) 2,194 Total $ 86,737 $ (2,657) $ 84,080 Investments as of December 31, 2022 consisted of the following: Cost Basis Unrealized Fair Value Corporate bonds $ 69,832 $ (2,234) $ 67,598 Government and agency obligations 33,971 (1,334) 32,637 Commercial paper 11,935 — 11,935 Asset-backed securities 2,483 (130) 2,353 Total $ 118,221 $ (3,698) $ 114,523
Debt Securities, Available-for-Sale	The cost and fair value of investments in debt securities, by contractual maturity, as of March 31, 2023 were as follows: Available-for-sale Amortized Cost Fair Value Due in 1 year or less $ 59,947 $ 58,519 Due after 1 year through 5 years 24,492 23,367 Due after 5 years through 10 years — — Instruments not due at a single maturity date 2,298 2,194 Total $ 86,737 $ 84,080

Inventories (Tables)

Inventories (Tables)	3 Months Ended
	Mar. 31, 2023
Inventory Disclosure [Abstract]
Summary of Inventories	Inventories consist of the following: March 31, December 31, Raw materials $ 22,289 $ 19,880 Work in process 5,742 2,959 Finished goods 20,817 23,092 Total $ 48,848 $ 45,931

Intangible Assets (Tables)

Intangible Assets (Tables)	3 Months Ended
	Mar. 31, 2023
Goodwill and Intangible Assets Disclosure [Abstract]
Company's Intangible Assets	The following table provides a summary of the Company’s intangible assets: March 31, 2023 December 31, 2022 Cost Accumulated Cost Accumulated Technology $ 46,470 $ 7,869 $ 46,470 $ 7,131
Future Amortization Expense Related to Intangible Assets	Future amortization expense is projected as follows: 2023 (excluding the three months ended March 31, 2023) $ 2,215 2024 2,953 2025 2,953 2026 2,953 2027 2,953 2028 and thereafter 24,574 Total $ 38,601

Accrued Liabilities (Tables)

Accrued Liabilities (Tables)	3 Months Ended
	Mar. 31, 2023
Payables and Accruals [Abstract]
Accrued Liabilities	Accrued liabilities consist of the following: March 31, December 31, Accrued compensation and employee-related expenses $ 22,300 $ 26,924 Other accrued liabilities 3,033 3,301 Sales returns and allowances 2,900 2,797 Total $ 28,233 $ 33,022

Indebtedness (Tables)

Indebtedness (Tables)	3 Months Ended
	Mar. 31, 2023
Debt Disclosure [Abstract]
Future Maturities On Debt	Future maturities of long-term debt, excluding the term loan final fee, are projected as follows: 2023 (excluding the three months ended March 31, 2023) $ 3,333 2024 20,000 2025 20,000 2026 16,667 Total long-term debt, of which $8,333 is current and $51,667 is noncurrent $ 60,000

Leases (Tables)

Leases (Tables)	3 Months Ended
	Mar. 31, 2023
Leases [Abstract]
Summary of Weighted Average Remaining Lease Term and Discount Rate	The weighted average remaining lease term and the discount rate for the reporting periods are as follows: March 31, 2023 December 31, 2022 Operating Leases Weighted average remaining lease term (years) 5.3 4.4 Weighted average discount rate 5.36 % 4.60 % Finance Leases Weighted average remaining lease term (years) 7.4 7.6 Weighted average discount rate 6.92 % 6.92 %
Summary of Components of Lease Expense	The components of lease expense are as follows: Three Months Ended 2023 2022 Operating lease cost $ 310 $ 286 Finance lease cost: Amortization of right-of-use assets 255 169 Interest on lease liabilities 175 189 Total finance lease cost $ 430 $ 358
Summary of Supplemental Cash Flow Information Related to Leases	Supplemental cash flow information related to leases was as follows: Three Months Ended Three Months Ended Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows for operating leases $ 317 $ 251 Operating cash flows for finance leases 175 189 Financing cash flows for finance leases 240 217 Right-of-use assets obtained in exchange for lease obligations: Operating leases 1,061 — Finance leases — —
Summary of Supplemental Balance Sheet Information Related to Leases	Supplemental balance sheet information related to leases was as follows: March 31, 2023 December 31, 2022 Operating Leases Operating lease right-of-use assets $ 4,605 $ 3,787 Current maturities of leases 1,328 1,147 Operating lease liabilities 3,725 3,095 Total operating lease liabilities $ 5,053 $ 4,242 Finance Leases Property and equipment, at cost $ 14,620 $ 14,645 Accumulated depreciation (7,339) (7,109) Property and equipment, net $ 7,281 $ 7,536 Current maturities of leases $ 1,016 $ 992 Finance lease liabilities 8,883 9,147 Total finance lease liabilities $ 9,899 $ 10,139
Schedule of Maturities of Lease Liabilities	Future maturities of lease liabilities as of March 31, 2023 were as follows: Operating Leases Finance Leases 2023 (excluding the three months ended March 31, 2023) $ 991 $ 1,250 2024 1,270 1,689 2025 1,034 1,638 2026 727 1,671 2027 754 1,703 2028 and thereafter 1,169 4,824 Total payments $ 5,945 $ 12,775 Less imputed interest (892) (2,876) Total $ 5,053 $ 9,899

Revenue (Tables)

Revenue (Tables)	3 Months Ended
	Mar. 31, 2023
Segment Reporting [Abstract]
Revenue By Product Type	United States revenue by product type is as follows: Three Months Ended 2023 2022 Open ablation $ 25,142 $ 18,974 Minimally invasive ablation 9,637 8,615 Pain management 11,068 8,014 Total ablation $ 45,847 $ 35,603 Appendage management 32,342 26,669 Total United States $ 78,189 $ 62,272 International revenue by product type is as follows: Three Months Ended 2023 2022 Open ablation $ 7,286 $ 6,492 Minimally invasive ablation 1,867 1,533 Pain management 228 140 Total ablation $ 9,381 $ 8,165 Appendage management 5,924 4,139 Total International $ 15,305 $ 12,304
Revenue By Geographic Area	Revenue attributed to customer geographic locations is as follows: Three Months Ended 2023 2022 United States $ 78,189 $ 62,272 Europe 9,401 7,237 Asia Pacific 5,402 4,557 Other International 502 510 Total International 15,305 12,304 Total Revenue $ 93,494 $ 74,576

Equity Compensation Plans (Tabl

Equity Compensation Plans (Tables)	3 Months Ended
	Mar. 31, 2023
Share-Based Payment Arrangement [Abstract]
Share-Based Compensation Expense Related To Employee Share-Based Compensation	The following table summarizes the allocation of share-based compensation expense: Three Months Ended 2023 2022 Cost of revenue $ 443 $ 571 Research and development expenses 1,304 1,130 Selling, general and administrative expenses 7,013 5,348 Total $ 8,760 $ 7,049

Comprehensive Loss and Accumu_2

Comprehensive Loss and Accumulated Other Comprehensive Loss (Tables)	3 Months Ended
	Mar. 31, 2023
Equity [Abstract]
Summary of Accumulated Other Comprehensive Income (Loss)	Accumulated other comprehensive loss consisted of the following, net of tax: Three Months Ended 2023 2022 Total accumulated other comprehensive loss at beginning of period $ (4,096) $ (948) Unrealized Gains (Losses) on Investments Balance at beginning of period $ (3,698) $ (887) Other comprehensive income (loss) before reclassifications 1,041 (2,339) Amounts reclassified to other income (expense) — — Balance at end of period $ (2,657) $ (3,226) Foreign Currency Translation Adjustment Balance at beginning of period $ (398) $ (61) Other comprehensive income (loss) before reclassifications 125 (261) Amounts reclassified to other income (expense) (142) 83 Balance at end of period $ (415) $ (239) Total accumulated other comprehensive loss at end of period $ (3,072) $ (3,465)

Description of Business and S_3

Description of Business and Summary of Significant Accounting Policies (Narrative) (Details) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Dec. 31, 2022
Description Of Business And Significant Accounting Policies [Line Items]
Shares not included in the computation of diluted earnings per share (in shares)	1,882	1,567
Europe
Description Of Business And Significant Accounting Policies [Line Items]
Long-lived assets	$ 2,859		$ 1,616

Fair Value (Financial Assets An

Fair Value (Financial Assets And Liabilities Measured At Fair Value On A Recurring Basis) (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Assets:
Assets	$ 84,080
Fair Value, Measurements, Recurring
Assets:
Assets	156,498	$ 168,937
Fair Value, Measurements, Recurring | Money market funds
Assets:
Assets	72,418	54,414
Fair Value, Measurements, Recurring | Commercial paper
Assets:
Assets	2,977	11,935
Fair Value, Measurements, Recurring | Government and agency obligations
Assets:
Assets	33,044	32,637
Fair Value, Measurements, Recurring | Corporate bonds
Assets:
Assets	45,865	67,598
Fair Value, Measurements, Recurring | Asset-backed securities
Assets:
Assets	2,194	2,353
Fair Value, Measurements, Recurring | Quoted Prices in ‎Active Markets for ‎Identical Assets ‎(Level 1)
Assets:
Assets	33,044	32,637
Fair Value, Measurements, Recurring | Quoted Prices in ‎Active Markets for ‎Identical Assets ‎(Level 1) | Money market funds
Assets:
Assets	0	0
Fair Value, Measurements, Recurring | Quoted Prices in ‎Active Markets for ‎Identical Assets ‎(Level 1) | Commercial paper
Assets:
Assets	0	0
Fair Value, Measurements, Recurring | Quoted Prices in ‎Active Markets for ‎Identical Assets ‎(Level 1) | Government and agency obligations
Assets:
Assets	33,044	32,637
Fair Value, Measurements, Recurring | Quoted Prices in ‎Active Markets for ‎Identical Assets ‎(Level 1) | Corporate bonds
Assets:
Assets	0	0
Fair Value, Measurements, Recurring | Quoted Prices in ‎Active Markets for ‎Identical Assets ‎(Level 1) | Asset-backed securities
Assets:
Assets	0	0
Fair Value, Measurements, Recurring | Significant Other ‎Observable Inputs ‎(Level 2)
Assets:
Assets	123,454	136,300
Fair Value, Measurements, Recurring | Significant Other ‎Observable Inputs ‎(Level 2) | Money market funds
Assets:
Assets	72,418	54,414
Fair Value, Measurements, Recurring | Significant Other ‎Observable Inputs ‎(Level 2) | Commercial paper
Assets:
Assets	2,977	11,935
Fair Value, Measurements, Recurring | Significant Other ‎Observable Inputs ‎(Level 2) | Government and agency obligations
Assets:
Assets	0	0
Fair Value, Measurements, Recurring | Significant Other ‎Observable Inputs ‎(Level 2) | Corporate bonds
Assets:
Assets	45,865	67,598
Fair Value, Measurements, Recurring | Significant Other ‎Observable Inputs ‎(Level 2) | Asset-backed securities
Assets:
Assets	2,194	2,353
Fair Value, Measurements, Recurring | Significant Other ‎Unobservable ‎Inputs (Level 3)
Assets:
Assets	0	0
Fair Value, Measurements, Recurring | Significant Other ‎Unobservable ‎Inputs (Level 3) | Money market funds
Assets:
Assets	0	0
Fair Value, Measurements, Recurring | Significant Other ‎Unobservable ‎Inputs (Level 3) | Commercial paper
Assets:
Assets	0	0
Fair Value, Measurements, Recurring | Significant Other ‎Unobservable ‎Inputs (Level 3) | Government and agency obligations
Assets:
Assets	0	0
Fair Value, Measurements, Recurring | Significant Other ‎Unobservable ‎Inputs (Level 3) | Corporate bonds
Assets:
Assets	0	0
Fair Value, Measurements, Recurring | Significant Other ‎Unobservable ‎Inputs (Level 3) | Asset-backed securities
Assets:
Assets	$ 0	$ 0

Fair Value (Narrative) (Details

Fair Value (Narrative) (Details) - USD ($)	Mar. 31, 2023	Dec. 31, 2022
Contingent Consideration
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Remaining fair value	$ 0	$ 0

Investments (Summary Of Short-t

Investments (Summary Of Short-term Investments) (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2023	Dec. 31, 2022
Summary of Investment Holdings [Line Items]
Cost Basis	$ 86,737	$ 118,221
Unrealized Losses	(2,657)	(3,698)
Fair Value	84,080	114,523
Corporate bonds
Summary of Investment Holdings [Line Items]
Cost Basis	47,477	69,832
Unrealized Losses	(1,612)	(2,234)
Fair Value	45,865	67,598
Government and agency obligations
Summary of Investment Holdings [Line Items]
Cost Basis	33,985	33,971
Unrealized Losses	(941)	(1,334)
Fair Value	33,044	32,637
Commercial paper
Summary of Investment Holdings [Line Items]
Cost Basis	2,977	11,935
Unrealized Losses	0	0
Fair Value	2,977	11,935
Asset-backed securities
Summary of Investment Holdings [Line Items]
Cost Basis	2,298	2,483
Unrealized Losses	(104)	(130)
Fair Value	$ 2,194	$ 2,353

Investments (Narrative) (Detail

Investments (Narrative) (Details) - USD ($)	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Investments, Debt and Equity Securities [Abstract]
Gain (loss) on investments	$ 0	$ 0

Investments (Summary of Cost an

Investments (Summary of Cost and Fair Value) (Details) $ in Thousands	Mar. 31, 2023 USD ($)
Amortized Cost
Due in 1 year or less	$ 59,947
Due after 1 year through 5 years	24,492
Due after 5 years through 10 years	0
Instruments not due at a single maturity date	2,298
Total	86,737
Fair Value
Due in 1 year or less	58,519
Due after 1 year through 5 years	23,367
Due after 5 years through 10 years	0
Instruments not due at a single maturity date	2,194
Total	$ 84,080

Inventories (Details)

Inventories (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Inventory Disclosure [Abstract]
Raw materials	$ 22,289	$ 19,880
Work in process	5,742	2,959
Finished goods	20,817	23,092
Total	$ 48,848	$ 45,931

Intangible Assets (Company's In

Intangible Assets (Company's Intangible Assets) (Details) - Technology - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Finite-Lived Intangible Assets [Line Items]
Cost	$ 46,470	$ 46,470
Accumulated Amortization	$ 7,869	$ 7,131

Intangible Assets (Narrative) (

Intangible Assets (Narrative) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Goodwill and Intangible Assets Disclosure [Abstract]
Amortization of intangible assets	$ 738	$ 972

Intangible Assets (Future Amort

Intangible Assets (Future Amortization Expense Related To Intangible Assets With Definite Lives) (Details) $ in Thousands	Mar. 31, 2023 USD ($)
Goodwill and Intangible Assets Disclosure [Abstract]
2023 (excluding the three months ended March 31, 2023)	$ 2,215
2024	2,953
2025	2,953
2026	2,953
2027	2,953
2028 and thereafter	24,574
Total	$ 38,601

Accrued Liabilities (Details)

Accrued Liabilities (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Payables and Accruals [Abstract]
Accrued compensation and employee-related expenses	$ 22,300	$ 26,924
Other accrued liabilities	3,033	3,301
Sales returns and allowances	2,900	2,797
Total	$ 28,233	$ 33,022

Indebtedness (Narrative) (Detai

Indebtedness (Narrative) (Details) - USD ($)	Nov. 01, 2021	Mar. 31, 2023
Line of Credit Facility [Line Items]
Principal payment start	24 months
Amended loan payment deferral period	12 months
Silicon Valley Bank Agreement | Revolving Credit Facility
Line of Credit Facility [Line Items]
Additional borrowings	$ 30,000,000
Annual facility fee	0.20%
Borrowing availability threshold		$ 30,000,000
Line of credit, borrowings		0
Line of credit, revolving line of credit		28,750,000
Term Loan | Silicon Valley Bank Agreement
Line of Credit Facility [Line Items]
Loan amount	$ 60,000,000
Additional borrowings	$ 30,000,000
Maturity period of short term investment	5 years
Annual commitment fee, percentage	3%
Accrued fee amount		510,000
Financing costs		$ 237,000
Term Loan | Silicon Valley Bank Agreement | Prime Rate
Line of Credit Facility [Line Items]
Basis rate	1.25%

Indebtedness (Future Maturities

Indebtedness (Future Maturities On Debt) (Details) $ in Thousands	Mar. 31, 2023 USD ($)
Debt Disclosure [Abstract]
2023 (excluding the three months ended March 31, 2023)	$ 3,333
2024	20,000
2025	20,000
2026	16,667
Total long-term debt, of which $8,333 is current and $51,667 is noncurrent	60,000
Current long term debt, excluding fees	8,333
Long term debt excluding current maturities and fees	$ 51,667

Leases (Narrative) (Details)

Leases (Narrative) (Details) $ in Thousands	Mar. 31, 2023 USD ($)
Lessee, Lease, Description [Line Items]
Letter of credit outstanding	$ 1,250
Minimum
Lessee, Lease, Description [Line Items]
Remaining lease terms	1 year
Maximum
Lessee, Lease, Description [Line Items]
Remaining lease terms	8 years

Leases (Summary Of Weighted Ave

Leases (Summary Of Weighted Average Remaining Lease Term And Discount Rate) (Details)	Mar. 31, 2023	Dec. 31, 2022
Operating Leases
Weighted average remaining lease term (years)	5 years 3 months 18 days	4 years 4 months 24 days
Weighted average discount rate	5.36%	4.60%
Finance Leases
Weighted average remaining lease term (years)	7 years 4 months 24 days	7 years 7 months 6 days
Weighted average discount rate	6.92%	6.92%

Leases (Summary Of Components O

Leases (Summary Of Components Of Lease Expense) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Leases [Abstract]
Operating lease cost	$ 310	$ 286
Finance lease cost:
Amortization of right-of-use assets	255	169
Interest on lease liabilities	175	189
Total finance lease cost	$ 430	$ 358

Leases (Summary Of Supplemental

Leases (Summary Of Supplemental Cash Flow Information Related To Leases) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows for operating leases	$ 317	$ 251
Operating cash flows for finance leases	175	189
Financing cash flows for finance leases	240	217
Right-of-use assets obtained in exchange for lease obligations:
Operating leases	1,061	0
Finance leases	$ 0	$ 0

Leases (Summary Of Supplement_2

Leases (Summary Of Supplemental Balance Sheet Information Related To Leases) (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Operating Leases
Operating lease right-of-use assets	$ 4,605	$ 3,787
Current maturities of leases	1,328	1,147
Operating lease liabilities	3,725	3,095
Total operating lease liabilities	5,053	4,242
Finance Leases
Property and equipment, at cost	14,620	14,645
Accumulated depreciation	7,339	7,109
Property and equipment, net	7,281	7,536
Current maturities of leases	1,016	992
Finance lease liabilities	8,883	9,147
Total finance lease liabilities	$ 9,899	$ 10,139

Leases (Schedule Of Maturities

Leases (Schedule Of Maturities Of Lease Liabilities) (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Operating Leases
2023 (excluding the three months ended March 31, 2023)	$ 991
2024	1,270
2025	1,034
2026	727
2027	754
2028 and thereafter	1,169
Total payments	5,945
Less imputed interest	(892)
Total	5,053	$ 4,242
Finance Leases
2023 (excluding the three months ended March 31, 2023)	1,250
2024	1,689
2025	1,638
2026	1,671
2027	1,703
2028 and thereafter	4,824
Total payments	12,775
Less imputed interest	(2,876)
Total	$ 9,899	$ 10,139

Commitments and Contingencies (

Commitments and Contingencies (Narrative) (Details) - USD ($)		1 Months Ended	3 Months Ended
	Aug. 23, 2022	Apr. 30, 2023	Mar. 31, 2023	Mar. 31, 2022
Loss Contingencies [Line Items]
Royalty rates (in percent)			5%
Royalty expense			$ 901,000	$ 794,000
AtriCure Versus Competitor
Loss Contingencies [Line Items]
Gain (loss) related to litigation settlement			4,000,000
AtriCure Versus Competitor | Subsequent Event
Loss Contingencies [Line Items]
Gain (loss) related to litigation settlement		$ 3,500,000
Pending Litigation | Cleveland Clinic Foundation and IDx Medical vs. AtriCure
Loss Contingencies [Line Items]
Loss contingency, damages sought	$ 6,000,000
Pending Litigation | AtriCure Versus Competitor
Loss Contingencies [Line Items]
Total amount awarded			$ 7,500,000

Revenue (Revenue By Product Typ

Revenue (Revenue By Product Type) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Revenue from External Customer [Line Items]
Revenue	$ 93,494	$ 74,576
United States
Revenue from External Customer [Line Items]
Revenue	78,189	62,272
United States | Total ablation
Revenue from External Customer [Line Items]
Revenue	45,847	35,603
United States | Open ablation
Revenue from External Customer [Line Items]
Revenue	25,142	18,974
United States | Minimally invasive ablation
Revenue from External Customer [Line Items]
Revenue	9,637	8,615
United States | Pain management
Revenue from External Customer [Line Items]
Revenue	11,068	8,014
United States | Appendage management
Revenue from External Customer [Line Items]
Revenue	32,342	26,669
Total International
Revenue from External Customer [Line Items]
Revenue	15,305	12,304
Total International | Total ablation
Revenue from External Customer [Line Items]
Revenue	9,381	8,165
Total International | Open ablation
Revenue from External Customer [Line Items]
Revenue	7,286	6,492
Total International | Minimally invasive ablation
Revenue from External Customer [Line Items]
Revenue	1,867	1,533
Total International | Pain management
Revenue from External Customer [Line Items]
Revenue	228	140
Total International | Appendage management
Revenue from External Customer [Line Items]
Revenue	$ 5,924	$ 4,139

Revenue (Revenue By Geographic

Revenue (Revenue By Geographic Area) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue	$ 93,494	$ 74,576
United States
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue	78,189	62,272
Europe
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue	9,401	7,237
Asia Pacific
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue	5,402	4,557
Other International
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue	502	510
Total International
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue	$ 15,305	$ 12,304

Income Tax Provision (Narrative

Income Tax Provision (Narrative) (Details)	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Income Tax Disclosure [Abstract]
Effective tax rate	(1.20%)	(0.40%)

Equity Compensation Plans (Narr

Equity Compensation Plans (Narrative) (Details) shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2023 USD ($) plan shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of share-based incentive plans (in shares) | plan	2
Offering period	6 months
Participants purchase limit shares (in shares)	3
2014 Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common stock reserved for issuance (in shares)	13,999
Shares available for future grants (in shares)	1,285
2008 Employee Stock Purchase Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Company's common stock may be purchased at a discount (percent)	15%
Participants purchase limit value | $	$ 25
Shares available for future issuance under ESPP	184

Equity Compensation Plans (Shar

Equity Compensation Plans (Share-Based Compensation Expense Related To Employee Share-Based Compensation) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total	$ 8,760	$ 7,049
Cost of revenue
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total	443	571
Research and development expenses
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total	1,304	1,130
Selling, general and administrative expenses
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total	$ 7,013	$ 5,348

Comprehensive Loss and Accumu_3

Comprehensive Loss and Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning Balance	$ 456,754	$ 483,756
Ending Balance	454,845	462,825
Accumulated Other Comprehensive Income (Loss)
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning Balance	(4,096)	(948)
Ending Balance	(3,072)	(3,465)
Unrealized Gains (Losses) on Investments
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning Balance	(3,698)	(887)
Other comprehensive income (loss) before reclassifications	1,041	(2,339)
Amounts reclassified to other income (expense)	0	0
Ending Balance	(2,657)	(3,226)
Foreign Currency Translation Adjustment
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning Balance	(398)	(61)
Other comprehensive income (loss) before reclassifications	125	(261)
Amounts reclassified to other income (expense)	(142)	83
Ending Balance	$ (415)	$ (239)