AtriCure(ATRC) - 2020 Q2 - Quarterly Report

PART I. FINANCIAL INFORMATION This section presents AtriCure, Inc.'s unaudited condensed consolidated financial statements, management's analysis, market risk, and internal controls Item 1. Financial Statements (Unaudited) This section presents AtriCure, Inc.'s unaudited condensed consolidated financial statements, including balance sheets, income statements, equity, cash flows, and detailed accounting notes Condensed Consolidated Balance Sheets The balance sheet shows a significant increase in total assets and stockholders' equity as of June 30, 2020, compared to December 31, 2019, primarily driven by an increase in cash, cash equivalents, and short-term investments | Metric | June 30, 2020 (Thousands) | December 31, 2019 (Thousands) | | :-------------------------- | :------------------------ | :-------------------------- | | Total Assets | $704,233 | $557,880 | | Total Liabilities | $287,371 | $310,537 | | Total Stockholders' Equity | $416,862 | $247,343 | - Cash and cash equivalents increased from $28,483 thousand at December 31, 2019, to $88,522 thousand at June 30, 2020, and short-term investments increased from $53,318 thousand to $143,976 thousand[4] Condensed Consolidated Statements of Operations and Comprehensive Loss The company reported increased net losses for both the three and six months ended June 30, 2020, compared to the same periods in 2019, primarily due to a significant decline in revenue and gross profit, alongside increased operating expenses relative to revenue | Metric | Three Months Ended June 30, 2020 (Thousands) | Three Months Ended June 30, 2019 (Thousands) | Six Months Ended June 30, 2020 (Thousands) | Six Months Ended June 30, 2019 (Thousands) | | :------------------------------------ | :----------------------------------------- | :----------------------------------------- | :--------------------------------------- | :--------------------------------------- | | Revenue | $40,824 | $58,906 | $94,049 | $112,872 | | Gross Profit | $27,654 | $43,893 | $66,538 | $83,764 | | Loss from Operations | $(7,285) | $(3,839) | $(22,739) | $(9,159) | | Net Loss | $(8,236) | $(4,101) | $(24,644) | $(9,736) | | Basic and Diluted Net Loss Per Share | $(0.20) | $(0.11) | $(0.61) | $(0.26) | - Revenue decreased by 30.7% for the three months and 16.7% for the six months ended June 30, 2020, compared to the prior year periods[6] Condensed Consolidated Statements of Stockholders' Equity Stockholders' equity significantly increased from December 31, 2019, to June 30, 2020, primarily due to a public offering of common stock, which generated substantial additional paid-in capital, despite an accumulated deficit from net losses | Metric | June 30, 2020 (Thousands) | December 31, 2019 (Thousands) | | :-------------------------- | :------------------------ | :-------------------------- | | Common Stock Amount | $45 | $40 | | Additional Paid-in Capital | $723,754 | $529,658 | | Accumulated Deficit | $(306,841) | $(282,197) | | Total Stockholders' Equity | $416,862 | $247,343 | - Issuance of common stock through a public offering contributed $188,958 thousand to additional paid-in capital during the six months ended June 30, 2020[9] Condensed Consolidated Statements of Cash Flows For the six months ended June 30, 2020, the company experienced significant cash usage in operating and investing activities, which was more than offset by a large cash inflow from financing activities, primarily a public stock offering, resulting in a net increase in cash and cash equivalents | Cash Flow Activity | Six Months Ended June 30, 2020 (Thousands) | Six Months Ended June 30, 2019 (Thousands) | | :------------------------------------ | :----------------------------------------- | :----------------------------------------- | | Net cash used in operating activities | $(27,635) | $(9,692) | | Net cash (used in) provided by investing activities | $(95,481) | $10,087 | | Net cash provided by (used in) financing activities | $183,240 | $(7,274) | | Net increase (decrease) in cash and cash equivalents | $60,039 | $(6,984) | | Cash and cash equivalents—end of period | $88,522 | $25,247 | - A public stock offering generated $188,958 thousand in net proceeds, significantly boosting cash from financing activities[11] Notes to Condensed Consolidated Financial Statements These notes provide detailed explanations of the accounting policies and specific financial statement line items, offering critical context for understanding the company's financial position, performance, and cash flows, including impacts from recent accounting pronouncements and the COVID-19 pandemic 1. DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AtriCure, Inc. is a global innovator in Afib and LAA treatments, with this section detailing its business and significant accounting policies for various financial items - AtriCure is a leading innovator in treatments for atrial fibrillation (Afib) and left atrial appendage (LAA) management, selling products globally through direct sales and distributors[13] - The company classifies investments as available-for-sale, recorded at fair value, with unrealized gains/losses in accumulated other comprehensive income (loss)[17] - Revenue is recognized when control of promised goods is transferred to customers, generally upon shipment[18] Inventories (Thousands) | Category | June 30, 2020 | December 31, 2019 | | :---------------- | :------------ | :---------------- | | Raw materials | $12,771 | $11,126 | | Work in process | $2,226 | $1,260 | | Finished goods | $17,812 | $17,028 | | Total Inventories | $32,809 | $29,414 | 2. RECENT ACCOUNTING PRONOUNCEMENTS The company adopted ASU 2016-13 for credit losses and ASU 2017-04 for goodwill impairment as of January 1, 2020, neither of which had a material impact on its consolidated financial statements - ASU 2016-13, 'Financial Instruments – Credit Losses (Topic 326),' was adopted, requiring financial assets at amortized cost to be presented net of expected credit losses, with no material impact[44] - ASU 2017-04, 'Intangibles – Goodwill and Other (Topic 350),' simplifying goodwill impairment measurement, was adopted with no material impact[45] 3. FAIR VALUE The company categorizes its financial assets and liabilities into a three-level fair value hierarchy, with contingent consideration being a significant Level 3 liability measured using unobservable inputs and a probability-weighted scenario approach Fair Value Hierarchy for Financial Assets (June 30, 2020, Thousands) | Asset Category | Level 1 | Level 2 | Level 3 | Total | | :------------------------ | :------ | :-------- | :------ | :-------- | | Money market funds | — | $85,286 | — | $85,286 | | Commercial paper | — | $42,373 | — | $42,373 | | U.S. government agencies and securities | $46,202 | — | — | $46,202 | | Corporate bonds | — | $48,140 | — | $48,140 | | Asset-backed securities | — | $22,600 | — | $22,600 | | Total Assets | $46,202 | $198,399 | — | $244,601 | Fair Value Hierarchy for Financial Liabilities (June 30, 2020, Thousands) | Liability Category | Level 1 | Level 2 | Level 3 | Total | | :-------------------------- | :------ | :-------- | :-------- | :-------- | | Contingent consideration | — | — | $180,111 | $180,111 | | Total Liabilities | — | — | $180,111 | $180,111 | - Contingent consideration liabilities, arising from nContact and SentreHEART acquisitions, are measured using a probability-weighted scenario approach with unobservable inputs like probability and timeline of milestone achievement[51][52] 4. INTANGIBLE ASSETS The company's intangible assets primarily consist of technology and In Process Research and Development (IPR&D), with IPR&D accounted for as an indefinite-lived asset until regulatory approval. Goodwill is tested annually for impairment and remains unchanged from December 31, 2019 Intangible Assets (Thousands) | Category | June 30, 2020 Cost | June 30, 2020 Accumulated Amortization | December 31, 2019 Cost | December 31, 2019 Accumulated Amortization | | :---------------- | :----------------- | :------------------------------------- | :--------------------- | :------------------------------------- | | Technology | $11,691 | $9,108 | $11,691 | $8,131 | | IPR&D | $126,321 | — | $126,321 | — | | Total | $138,012 | $9,108 | $138,012 | $8,131 | - IPR&D assets, representing the value of technology acquired in business combinations not yet technologically feasible, are accounted for as indefinite-lived intangible assets[28][29] Goodwill (Thousands) | Period | Beginning Balance | Amounts Acquired | Ending Balance | | :------------------------------------ | :---------------- | :--------------- | :------------- | | Six Months Ended June 30, 2020 | $234,781 | — | $234,781 | | Twelve Months Ended December 31, 2019 | $105,257 | $129,524 | $234,781 | 5. ACCRUED LIABILITIES Accrued liabilities significantly decreased from December 31, 2019, to June 30, 2020, primarily due to reductions in accrued commissions and accrued bonus Accrued Liabilities (Thousands) | Category | June 30, 2020 | December 31, 2019 | | :------------------------------------ | :------------ | :---------------- | | Accrued payroll and employee-related expenses | $7,322 | $6,748 | | Sales returns and allowances | $3,921 | $3,979 | | Accrued commissions | $3,031 | $8,734 | | Accrued bonus | $1,728 | $10,840 | | Accrued taxes and value-added taxes payable | $1,136 | $1,658 | | Accrued royalties | $495 | $732 | | Other accrued liabilities | $251 | $59 | | Total | $17,884 | $32,750 | 6. INDEBTEDNESS The company maintains a Loan and Security Agreement with Silicon Valley Bank, comprising a $60 million term loan and a $20 million revolving line of credit, both maturing in August 2024. An amendment in April 2020 modified a liquidity ratio covenant and increased early termination fees - The Loan Agreement includes a $60,000 thousand term loan and a $20,000 thousand revolving line of credit, maturing on August 1, 2024[59] - As of June 30, 2020, the company had no borrowings under the revolving credit facility and $8,750 thousand in borrowing availability[61] - An amendment to the Loan Agreement on April 29, 2020, modified a liquidity ratio covenant and increased early termination fees[61] 7. LEASES The company has operating and finance leases for facilities and equipment, with weighted average remaining lease terms of 3.2 years for operating leases and 10.1 years for finance leases as of June 30, 2020 Weighted Average Lease Terms and Discount Rates (June 30, 2020) | Lease Type | Weighted Average Remaining Lease Term (years) | Weighted Average Discount Rate | | :---------------- | :------------------------------------------ | :----------------------------- | | Operating Leases | 3.2 | 5.68% | | Finance Leases | 10.1 | 6.93% | Lease Expense (Thousands) | Expense Type | Three Months Ended June 30, 2020 | Six Months Ended June 30, 2020 | | :-------------------------- | :------------------------------- | :----------------------------- | | Operating lease cost | $340 | $690 | | Total finance lease cost | $475 | $954 | Maturities of Lease Liabilities (June 30, 2020, Thousands) | Year | Operating Leases | Finance Leases | | :-------------------------------------------------- | :--------------- | :------------- | | 2020 (excluding six months ended June 30, 2020) | $554 | $383 | | 2021 | $1,198 | $1,602 | | 2022 | $619 | $1,623 | | 2023 | $220 | $1,646 | | 2024 | $227 | $1,670 | | 2025 and thereafter | $234 | $9,799 | | Total payments | $3,052 | $16,723 | | Less imputed interest | $(264) | $(4,566) | | Total | $2,788 | $12,157 | 8. COMMITMENTS AND CONTINGENCIES The company has royalty agreements and standard purchase agreements, and is involved in legal proceedings, including a USDOJ investigation into potential False Claims Act violations and a dispute over earnout calculations from the nContact acquisition - The company has royalty agreements requiring payments of 3% to 5% of specified product sales, with one agreement effective through 2023 and another through 2025 or patent expiration[71] - A Civil Investigative Demand from the USDOJ is investigating potential False Claims Act violations related to off-label promotion of medical devices for atrial fibrillation treatment[74] - The company is disputing earnout objection statements from former nContact stockholders regarding the inclusion of certain revenues for commercial milestone payments[75] 9. REVENUE Revenue is primarily generated from medical device sales, recognized when control is transferred to customers, typically upon shipment. Sales are made through a direct sales force and distributors, with fixed pricing and short payment terms - Revenue is recognized when control of promised medical devices is transferred to customers, generally at the point of shipment or delivery[76][78] - Products are sold through a direct sales force in the US and certain international markets, and through distributors in other international markets[77] - The company does not accept product returns unless a product is defective and establishes estimated provisions for returns based on historical experience[79] 10. INCOME TAX PROVISION The company uses the discrete method to determine its income tax provision, resulting in negative effective tax rates for the periods presented, primarily due to a full valuation allowance against net deferred income tax assets in the United States and Netherlands - The income tax provision for the period ended June 30, 2020, was estimated using the discrete method[83] Effective Tax Rates | Period | Effective Tax Rate | | :------------------------------------ | :----------------- | | Three Months Ended June 30, 2020 | (0.15%) | | Three Months Ended June 30, 2019 | (0.24%) | | Six Months Ended June 30, 2020 | (0.08%) | | Six Months Ended June 30, 2019 | (0.79%) | - A full valuation allowance has been recorded against substantially all net deferred income tax assets, as it is more-likely-than-not that the benefit will not be recognized[35] 11. EQUITY COMPENSATION PLANS The company operates two share-based incentive plans: the 2014 Stock Incentive Plan, offering various awards including performance share awards, and the 2018 Employee Stock Purchase Plan (ESPP), allowing employees to purchase stock at a discount - The 2014 Stock Incentive Plan allows for grants of incentive stock options, restricted stock, restricted stock units, nonstatutory stock options, and performance share awards[86] - Performance share awards vest based on achieving specified performance measurements, such as revenue CAGR, over a three-year period[88] - The Employee Stock Purchase Plan (ESPP) enables eligible employees to purchase common stock at a 15% discount[91] Share-Based Compensation Expense Allocation (Thousands) | Category | Three Months Ended June 30, 2020 | Six Months Ended June 30, 2020 | | :------------------------------------ | :------------------------------- | :----------------------------- | | Cost of revenue | $351 | $638 | | Research and development expenses | $1,017 | $1,672 | | Selling, general and administrative expenses | $4,825 | $8,267 | | Total | $6,193 | $10,577 | 12. SEGMENT AND GEOGRAPHIC INFORMATION The company operates as a single operating segment, developing and selling medical devices globally. Revenue is disaggregated by geographic area and product type, showing a decline in both US and international markets across all product categories for the reported periods - The company operates as a single operating segment, focusing on devices for surgical ablation of cardiac tissue and left atrial appendage exclusion[93] Total Revenue by Geographic Area (Thousands) | Geographic Area | Three Months Ended June 30, 2020 | Three Months Ended June 30, 2019 | Six Months Ended June 30, 2020 | Six Months Ended June 30, 2019 | | :-------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | United States | $33,664 | $47,165 | $77,137 | $90,169 | | Europe | $4,316 | $6,987 | $10,261 | $13,772 | | Asia | $2,634 | $4,470 | $6,171 | $8,384 | | Other international | $210 | $284 | $480 | $547 | | Total international | $7,160 | $11,741 | $16,912 | $22,703 | | Total revenue | $40,824 | $58,906 | $94,049 | $112,872 | United States Revenue by Product Type (Thousands) | Product Type | Three Months Ended June 30, 2020 | Three Months Ended June 30, 2019 | Six Months Ended June 30, 2020 | Six Months Ended June 30, 2019 | | :------------------------------------ | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Open ablation | $15,550 | $20,561 | $34,768 | $39,557 | | Minimally invasive ablation | $4,755 | $9,092 | $11,316 | $16,854 | | Appendage management | $13,021 | $16,498 | $30,440 | $32,168 | | Valve tools | $338 | $1,014 | $613 | $1,590 | | Total United States | $33,664 | $47,165 | $77,137 | $90,169 | Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations This section provides management's perspective on the company's financial performance and condition, highlighting the adverse impact of the COVID-19 pandemic on revenue and operations, updates on clinical trials, and details on liquidity and capital resources Overview AtriCure is a leading innovator in treatments for atrial fibrillation (Afib) and left atrial appendage (LAA) management, offering various product lines including the FDA-approved Isolator Synergy™ Ablation System for persistent Afib and the AtriClip LAA Exclusion System - AtriCure is a leading innovator in treatments for atrial fibrillation (Afib) and left atrial appendage (LAA) management[100] - Key products include the Isolator Synergy™ Ablation System (FDA-approved for persistent Afib concomitant procedures) and the AtriClip LAA Exclusion System (510(k)-cleared for LAA exclusion)[100][101] - The company sells products globally through a direct sales force in the US and certain international markets, and through distributors in other international markets[103] Recent Developments Recent developments include the adverse impact of the COVID-19 pandemic on product demand and operations, leading to expense reductions and a public stock offering to bolster liquidity, alongside ongoing progress in key clinical trials like CONVERGE and aMAZE COVID-19 Pandemic Impact The COVID-19 pandemic significantly decreased demand for AtriCure's products due to deferred non-emergent procedures, prompting operational adjustments like remote work, reduced production, and expense-reduction measures, while also leading to a public stock offering to enhance liquidity - The COVID-19 pandemic caused a significant decrease in demand for products due to deferred non-emergent procedures, adversely impacting 2020 results[104] - The company implemented measures such as remote work, temporary production capacity reductions, and delayed capital investments and hiring to mitigate the impact[105][106] - A public offering in May 2020 issued 4,574 thousand shares of common stock, generating net proceeds of $188,958 thousand to strengthen liquidity[106] Clinical Trials Updates AtriCure is actively progressing with its CONVERGE IDE trial, having submitted its PMA and engaged with the FDA, while the aMAZE trial completed enrollment and received approval for a Continued Access Protocol (CAP) to enroll additional patients - For the CONVERGE IDE trial, AtriCure conducted an initial meeting with the FDA in April 2020 following its PMA submission in December 2019[107] - Enrollment for the aMAZE trial was completed in December 2019, with patient follow-up ongoing, and a Continued Access Protocol (CAP) was approved in January 2020 for additional patient enrollment[108][109] Results of Operations The company experienced significant revenue declines and increased net losses for both the three and six months ended June 30, 2020, primarily due to the COVID-19 pandemic's impact on surgical procedures and increased SentreHEART-related expenses Three Months Ended June 30, 2020 Compared to Three Months Ended June 30, 2019 Revenue decreased by 30.7% due to the global decline in surgical procedures caused by COVID-19, leading to a 6.8% decrease in gross margin. Operating expenses saw a significant decrease in SG&A, largely from reduced variable compensation and a fluctuation in contingent consideration liability, while R&D expenses slightly increased due to SentreHEART activities Three Months Ended June 30, Financial Highlights (Thousands) | Metric | 2020 Amount | % of Revenues | 2019 Amount | % of Revenues | | :------------------------------------ | :---------- | :------------ | :---------- | :------------ | | Revenue | $40,824 | 100.0% | $58,906 | 100.0% | | Cost of revenue | $13,170 | 32.3% | $15,013 | 25.5% | | Gross profit | $27,654 | 67.7% | $43,893 | 74.5% | | Research and development expenses | $10,036 | 24.6% | $9,804 | 16.6% | | Selling, general and administrative expenses | $24,903 | 61.0% | $37,928 | 64.4% | | Loss from operations | $(7,285) | (17.8)% | $(3,839) | (6.5)% | | Net loss | $(8,236) | (20.2)% | $(4,101) | (7.0)% | - Revenue decreased 30.7% (30.6% on a constant currency basis) due to the global decline in surgical procedures caused by the COVID-19 pandemic[110] - Selling, general and administrative expenses decreased $13,025 thousand (34.3%), driven by reduced variable compensation, travel, training, marketing costs, and a $5,299 thousand fluctuation in contingent consideration liability[114] Six Months Ended June 30, 2020 Compared to Six Months Ended June 30, 2019 Revenue decreased by 16.7% for the six months ended June 30, 2020, primarily due to COVID-19 related deferrals of medical procedures. This led to a higher net loss, despite a decrease in selling, general, and administrative expenses, which was offset by increased research and development expenses mainly from SentreHEART operations Six Months Ended June 30, Financial Highlights (Thousands) | Metric | 2020 Amount | % of Revenues | 2019 Amount | % of Revenues | | :------------------------------------ | :---------- | :------------ | :---------- | :------------ | | Revenue | $94,049 | 100.0% | $112,872 | 100.0% | | Cost of revenue | $27,511 | 29.3% | $29,108 | 25.8% | | Gross profit | $66,538 | 70.7% | $83,764 | 74.2% | | Research and development expenses | $21,623 | 23.0% | $17,980 | 15.9% | | Selling, general and administrative expenses | $67,654 | 71.9% | $74,943 | 66.4% | | Loss from operations | $(22,739) | (24.2)% | $(9,159) | (8.1)% | | Net loss | $(24,644) | (26.2)% | $(9,736) | (8.6)% | - Revenue decreased 16.7% (16.5% on a constant currency basis) due to the deferral of medical procedures from the COVID-19 pandemic[117] - Research and development expenses increased $3,643 thousand (20.3%), primarily due to $3,774 thousand in incremental costs related to SentreHEART operations[120] Liquidity and Capital Resources As of June 30, 2020, the company had strong liquidity with $247,837 thousand in cash, cash equivalents, and investments, and $8,750 thousand in unused borrowing capacity. A public stock offering provided significant cash, which is expected to meet anticipated needs for at least the next twelve months, despite ongoing operating cash usage - As of June 30, 2020, the company had $247,837 thousand in cash, cash equivalents, and investments, with $60,000 thousand in outstanding debt[123] - Net cash used in operating activities was $27,635 thousand for the six months ended June 30, 2020, primarily due to a net loss and changes in operating assets and liabilities[124][125] - Net cash provided by financing activities was $183,240 thousand, mainly from $188,958 thousand in net proceeds from a May 2020 public stock offering[127] - The company believes current liquidity, along with expected cash generation or access via its revolving line of credit, will be sufficient for anticipated cash needs for at least the next twelve months[132] Critical Accounting Policies and Estimates The company's financial statements rely on management's estimates and judgments, particularly concerning sales returns, accounts receivable, inventories, intangible assets (including goodwill), contingent liabilities, and share-based compensation, which are periodically evaluated - Preparation of financial statements requires management to make estimates and judgments affecting reported amounts of assets, liabilities, revenue, expenses, and contingent assets/liabilities[134] - Key estimates include those related to sales returns and allowances, accounts receivable, inventories, intangible assets (including goodwill), contingent liabilities, and share-based compensation[134] Recent Accounting Pronouncements Information regarding recent accounting pronouncements is detailed in Note 2 of the Condensed Consolidated Financial Statements - Refer to Note 2 in the Notes to the Condensed Consolidated Financial Statements for a discussion of recent accounting pronouncements[135] Item 3. Quantitative and Qualitative Disclosures About Market Risk As of June 30, 2020, there were no material changes to the company's market risk disclosures, apart from the ongoing negative impact of the COVID-19 pandemic on business and results of operations - No material changes to market risk disclosures as of June 30, 2020, except for the negative impact of the COVID-19 pandemic[136] Item 4. Controls and Procedures Management concluded that the company's disclosure controls and procedures were effective as of June 30, 2020, providing reasonable assurance for timely and accurate financial reporting, with no material changes to internal control over financial reporting during the quarter Evaluation of Disclosure Controls and Procedures Management, including the CEO and CFO, evaluated the effectiveness of disclosure controls and procedures as of June 30, 2020, concluding they were effective in providing reasonable assurance for timely and accurate financial reporting - Management concluded that disclosure controls and procedures were effective as of June 30, 2020[137] - Controls provide reasonable, not absolute, assurance and can be circumvented by inherent limitations, individual actions, collusion, or management override[138] Changes in Internal Control Over Financial Reporting There were no material changes in the company's internal control over financial reporting during the three months ended June 30, 2020 - No material changes in internal control over financial reporting occurred during the three months ended June 30, 2020[140] PART II. OTHER INFORMATION This section details legal proceedings, updated risk factors, executive compensation adjustments, and a comprehensive list of filed exhibits Item 1. Legal Proceedings Information regarding legal proceedings is incorporated by reference from Note 8 – Commitments and Contingencies to the Condensed Consolidated Financial Statements - Legal proceedings information is incorporated by reference from Note 8 – Commitments and Contingencies[141] Item 1A. Risk Factors This section updates previously disclosed risk factors, emphasizing new risks related to the unpredictability of clinical trial results and the critical importance of obtaining regulatory approval for the CONVERGE IDE device, which could significantly impact the business if unsuccessful - New risk factors include the unpredictability of clinical trial results and the potential failure to satisfy FDA or other non-U.S. regulatory requirements[142] - The company's success depends on achieving regulatory approval for the CONVERGE IDE device, with no assurance of timely approval or approval for desired indications, which could materially adversely affect the business[143] - Positive results from clinical trials should not be relied upon as evidence that future trials will succeed or satisfy regulatory requirements[142] Item 5. Other Information In response to COVID-19, executive officers and non-employee directors voluntarily reduced their cash compensation, which was subsequently restored to 100% effective June 30, 2020 - Executive officers voluntarily reduced their 2020 annual cash base salaries (CEO by 35%, others by 20%) as a COVID-19 expense-reduction measure[144] - Non-employee directors also reduced their 2020 cash compensation by 35%[144] - Effective June 30, 2020, all executive officer salaries and non-employee director cash compensation were restored to 100% of their prior levels[144] Item 6. Exhibits This section lists all exhibits filed with the Form 10-Q, including amendments to the stock incentive plan and loan agreement, certifications, and XBRL taxonomy documents - Exhibits include the AtriCure, Inc. 2014 Stock Incentive Plan (Amended and Restated as of May 20, 2020) and the Fourth Amendment to Loan and Security Agreement dated April 29, 2020[146] - Certifications pursuant to Section 302 and Section 906 of the Sarbanes-Oxley Act of 2002 by the Principal Executive Officer and Principal Accounting and Financial Officer are included[146] - XBRL Instance Document and Taxonomy Extension Schema, Calculation, Definition, Label, and Presentation Linkbase Documents are provided[146] Signatures The report is duly signed on behalf of AtriCure, Inc. by Michael H. Carrel, President and Chief Executive Officer, and M. Andrew Wade, Chief Financial Officer, on July 29, 2020 - The report is signed by Michael H. Carrel, President and Chief Executive Officer, and M. Andrew Wade, Chief Financial Officer[148] - The signing date for the report is July 29, 2020[148]