Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Feb. 22, 2017 | Aug. 02, 2016 | |
Document and Entity Information | |||
Entity Registrant Name | TACTILE SYSTEMS TECHNOLOGY INC | ||
Entity Central Index Key | 1,027,838 | ||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2016 | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year Focus | 2,016 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Current Reporting Status | Yes | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 16,896,099 | ||
Entity Public Float | $ 117,891,360 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Current assets: | ||
Cash and cash equivalents | $ 30,701 | $ 7,060 |
Marketable Securities | 10,994 | |
Accounts receivable, net | 15,003 | 14,151 |
Inventories | 6,554 | 5,781 |
Deferred income taxes | 1,766 | |
Prepaid expenses | 981 | 602 |
Total current assets | 64,233 | 29,360 |
Property and equipment, net | 1,563 | 1,346 |
Other assets | ||
Patent costs, net | 2,394 | 2,489 |
Medicare accounts receivable, long-term | 2,823 | 2,039 |
Deferred income taxes | 2,785 | 402 |
Other non-current assets | 137 | 1,337 |
Total other assets | 8,139 | 6,267 |
Total assets | 73,935 | 36,973 |
Current liabilities: | ||
Accounts payable | 5,018 | 3,336 |
Accrued payroll and related taxes | 6,692 | 3,355 |
Accrued expenses | 1,193 | 916 |
Future product royalties | 67 | 991 |
Income taxes payable | 823 | 904 |
Total current liabilities | 13,793 | 9,502 |
Long-term liabilities | ||
Deferred compensation | 193 | |
Accrued warranty reserve, long-term | 503 | |
Total liabilities | 14,296 | 9,695 |
Stockholders' Equity (Deficit): | ||
Common stock; $0.001 par value, 300,000,000 shares authorized, 16,833,737 shares issued and outstanding as of December 31, 2016, and 14,184,175 shares authorized and 3,222,902 shares issued and outstanding as of December 31, 2015 | 17 | 3 |
Additional paid-in capital | 62,406 | |
Accumulated deficit | (2,773) | (5,652) |
Accumulated other comprehensive loss | (11) | |
Total stockholders’ equity (deficit) | 59,639 | (5,649) |
Total liabilities and stockholders’ equity (deficit) | $ 73,935 | 36,973 |
Series B Preferred Stock | ||
Convertible preferred stock | ||
Convertible preferred stock, value | 12,599 | |
Stockholders' Equity (Deficit): | ||
Total stockholders’ equity (deficit) | 12,599 | |
Series A Preferred Stock | ||
Convertible preferred stock | ||
Convertible preferred stock, value | 20,328 | |
Stockholders' Equity (Deficit): | ||
Total stockholders’ equity (deficit) | $ 20,328 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Dec. 31, 2016 | Dec. 31, 2015 |
Preferred stock, par value (in dollars per share) | $ 0.001 | |
Preferred Stock, Shares Authorized | 50,000,000 | |
Preferred Stock, Shares Issued | 0 | |
Preferred Stock, Shares Outstanding | 0 | |
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common shares authorized | 300,000,000 | 14,184,175 |
Common Stock, Shares, Issued | 16,833,737 | 3,222,902 |
Common Stock, Shares, Outstanding | 16,833,737 | 3,222,902 |
Series B Preferred Stock | ||
Preferred stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Preferred Stock, Shares Authorized | 0 | 5,319,066 |
Preferred Stock, Shares Issued | 0 | 2,733,468 |
Preferred Stock, Shares Outstanding | 0 | 2,733,468 |
Series A Preferred Stock | ||
Preferred stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Preferred Stock, Shares Authorized | 0 | 3,112,153 |
Preferred Stock, Shares Issued | 0 | 3,108,589 |
Preferred Stock, Shares Outstanding | 0 | 3,061,488 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Consolidated Statements of Operations | |||
Revenues, net | $ 84,542 | $ 62,872 | $ 47,736 |
Cost of goods sold | 22,940 | 16,908 | 12,715 |
Gross profit | 61,602 | 45,964 | 35,021 |
Operating expenses | |||
Sales and marketing | 33,794 | 24,485 | 18,154 |
Research and development | 4,476 | 4,312 | 2,843 |
Reimbursement, general and administrative | 19,060 | 13,716 | 10,225 |
Total operating expenses | 57,330 | 42,513 | 31,222 |
Income from operations | 4,272 | 3,451 | 3,799 |
Other income (expense) | 38 | (194) | (4) |
Income before income taxes | 4,310 | 3,257 | 3,795 |
Income tax expense | 1,431 | 1,864 | 1,725 |
Net income | 2,879 | 1,393 | 2,070 |
Convertible preferred stock dividends | 1,247 | 1,845 | 1,761 |
Allocation of undistributed earnings to preferred stockholders | 216 | ||
Net income (loss) attributable to common stockholders | $ 1,632 | $ (452) | $ 93 |
Net income (loss) per common share attributable to common stockholders | |||
Basic (in dollars per share) | $ 0.18 | $ (0.15) | $ 0.04 |
Diluted (in dollars per share) | $ 0.15 | $ (0.15) | $ 0.02 |
Weighted-average common shares used to compute net income (loss) per common share attributable to common stockholders | |||
Basic (in shares) | 8,913,042 | 2,929,438 | 2,491,108 |
Diluted (in shares) | 10,758,684 | 2,929,438 | 3,797,688 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income $ in Thousands | 12 Months Ended |
Dec. 31, 2016USD ($) | |
Statement of Comprehensive Income [Abstract] | |
Net income | $ 2,879 |
Other comprehensive (loss): | |
Unrealized (losses) on available-for-sale securities | (17) |
Income tax related to items of other comprehensive (loss) | (6) |
Total other comprehensive loss | (11) |
Comprehensive income | $ 2,868 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders’ Equity (Deficit) - USD ($) | Common StockSeries B Preferred Stock | Common StockSeries A Preferred Stock | Common Stock | Additional Paid In Capital.Series B Preferred Stock | Additional Paid In Capital.Series A Preferred Stock | Additional Paid In Capital. | Accumulated Deficit | Accumulated Other Comprehensive Loss | Series B Preferred Stock | Series A Preferred Stock | Total |
Balances at the beginning at Dec. 31, 2013 | $ 2 | $ 1,826,000 | $ (8,942,000) | $ 11,278,000 | $ 18,043,000 | $ (7,114,000) | |||||
Balances at the beginning (in shares) at Dec. 31, 2013 | 2,226,716 | 2,733,468 | 3,061,488 | ||||||||
Increase (Decrease) in Stockholders' Equity | |||||||||||
Stock-based compensation | 148,000 | 148,000 | |||||||||
Exercise of common stock options and warrants | $ 1 | 229,000 | 230,000 | ||||||||
Exercise of common stock options and warrants(in shares) | 399,903 | ||||||||||
Preferred stock dividend | (1,761,000) | $ 616,000 | $ 1,145,000 | (1,761,000) | |||||||
Comprehensive income for the period | 2,070,000 | 2,070,000 | |||||||||
Net income | 2,070,000 | ||||||||||
Comprehensive income | 2,070,000 | 2,070,000 | |||||||||
Balances at the end at Dec. 31, 2014 | $ 3 | 442,000 | (6,872,000) | $ 11,894,000 | $ 19,188,000 | (6,427,000) | |||||
Balances at the end (in shares) at Dec. 31, 2014 | 2,626,619 | 2,733,468 | 3,061,488 | ||||||||
Increase (Decrease) in Stockholders' Equity | |||||||||||
Stock-based compensation | 316,000 | 316,000 | |||||||||
Exercise of common stock options and warrants | 914,000 | 914,000 | |||||||||
Exercise of common stock options and warrants(in shares) | 596,283 | ||||||||||
Preferred stock dividend | (1,672,000) | (173,000) | $ 705,000 | $ 1,140,000 | (1,845,000) | ||||||
Comprehensive income for the period | 1,393,000 | 1,393,000 | |||||||||
Net income | 1,393,000 | ||||||||||
Comprehensive income | 1,393,000 | 1,393,000 | |||||||||
Balances at the end at Dec. 31, 2015 | $ 3 | (5,652,000) | $ 12,599,000 | $ 20,328,000 | (5,649,000) | ||||||
Balances at the end (in shares) at Dec. 31, 2015 | 3,222,902 | 2,733,468 | 3,061,488 | ||||||||
Increase (Decrease) in Stockholders' Equity | |||||||||||
Stock-based compensation | 2,082,000 | 2,082,000 | |||||||||
Exercise of common stock options and warrants | $ 1 | 235,000 | 236,000 | ||||||||
Exercise of common stock options and warrants(in shares) | 255,217 | ||||||||||
Preferred stock dividend | (1,247,000) | $ 436,000 | $ 811,000 | (1,247,000) | |||||||
Comprehensive income for the period | 2,868,000 | ||||||||||
Sale of common stock from initial public offering, net of offerring expenses | $ 4 | 35,378,000 | 35,382,000 | ||||||||
Sale of common stock from initial public offering, net of offerring expenses (in shares) | 4,120,000 | ||||||||||
Preferred stock dividends paid in cash | (8,207,000) | ||||||||||
Conversion of preferred stock to common stock issuances | $ 3 | $ 13,032,000 | $ 12,929,000 | (13,035,000) | (12,932,000) | ||||||
Common stock issued in lieu of series B preferred stock dividend | $ 1 | $ (1,000) | |||||||||
Common stock issued in lieu of series B preferred stock dividend (in shares) | 956,842 | ||||||||||
Conversion of preferred stock to common stock | $ 13,035,000 | $ 12,932,000 | |||||||||
Conversion of preferred stock to common stock issuances (in shares) | 2,733,468 | 3,190,985 | (2,733,468) | (3,061,488) | |||||||
Common stock issued for series A & B preferred stock liquidation preference | $ 2 | (2,000) | |||||||||
Common stock issued for series A & B preferred stock liquidation preference (in shares) | 2,354,323 | ||||||||||
Net income | 2,879,000 | 2,879,000 | |||||||||
Other comprehensive loss | $ (11,000) | (11,000) | |||||||||
Comprehensive income | 2,868,000 | ||||||||||
Balances at the end at Dec. 31, 2016 | $ 17 | $ 62,406,000 | $ (2,773,000) | $ (11,000) | $ 59,639,000 | ||||||
Balances at the end (in shares) at Dec. 31, 2016 | 16,833,737 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Cash flows from operating activities | |||
Net income | $ 2,879 | $ 1,393 | $ 2,070 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | |||
Depreciation and amortization | 799 | 827 | 706 |
Deferred income taxes | (611) | 852 | 1,558 |
Stock-based compensation expense | 1,889 | 316 | 148 |
Deferred compensation | (6) | ||
Change in allowance for doubtful accounts | 568 | 100 | 500 |
Changes in assets and liabilities | |||
Accounts receivable | (1,420) | (509) | (4,671) |
Inventories | (773) | (2,260) | (608) |
Prepaid expenses and other non-current assets | (407) | (452) | (142) |
Medicare accounts receivable – long-term | (784) | (737) | (381) |
Accounts payable | 1,737 | 829 | 547 |
Accrued payroll and related taxes | 3,337 | 1,352 | (601) |
Accrued expenses and income taxes payable | 743 | 1,073 | 44 |
Future product royalties | (924) | (379) | (161) |
Net cash provided by (used in) operating activities | 7,033 | 2,399 | (991) |
Cash flows from investing activities | |||
Purchases of marketable securities | 11,011 | ||
Purchases of property and equipment | (775) | (592) | (353) |
Patent costs | (58) | (23) | |
Net cash used in investing activities | (11,844) | (615) | (353) |
Cash flows from financing activities | |||
Payments on notes payable | (13) | (9) | |
Proceeds from exercise of common stock options and warrants | 236 | 914 | 230 |
Dividends paid on preferred stock | (8,207) | ||
Fees paid for IPO | (4,777) | (1,041) | |
Proceeds from IPO | 41,200 | ||
Net cash provided by (used in) financing activities | 28,452 | (140) | 221 |
Net change in cash and cash equivalents | 23,641 | 1,644 | (1,123) |
Cash and cash equivalents – beginning of period | 7,060 | 5,416 | 6,539 |
Cash and cash equivalents – end of period | 30,701 | 7,060 | 5,416 |
Supplemental cash flow disclosure | |||
Cash paid for interest | 1 | 1 | |
Cash paid for taxes | 2,158 | $ 240 | $ 238 |
CashFlow Non cash Investing Activities Disclosure [Abstract] | |||
Acquisition of assets included in accounts payable | $ 174 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2016 | |
Summary of Significant Accounting Policies | |
Summary of Significant Accounting Policies | Tactile Systems Technology, Inc. Notes to the Consolidated Financial Statements Note 1. Summary of Significant Accounting Policies Nature of Operations Tactile Systems Technology, Inc. (“we,” “us,” and “our”) is the sole manufacturer and distributor of the Flexitouch and Entré Systems, medical devices that help control symptoms of lymphedema, a chronic and progressive medical condition, and the ACTitouch System, a medical device used to treat venous leg ulcers and chronic venous insufficiency. We provide our products for use in the home and sell them through vascular, wound and lymphedema clinics throughout the United States. We do business as “Tactile Medical.” Basis of Presentation Our accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) and pursuant to the rules and regulations of the SEC. The results for the year ended December 31, 2016 are not necessarily indicative of results to be expected for any future year. Our business is affected by seasonality. In the first quarter of each year, when most patients have started a new insurance year and have not paid their annual deductibles, we experience substantially reduced demand for our products. We typically experience higher sales in the third and fourth quarters as a result of patients having paid their annual insurance deductibles in full, thereby reducing their out-of-pocket costs for our products, or because patients often spend the remaining balances in their flexible spending accounts. We were originally incorporated in Minnesota under the name Tactile Systems Technology, Inc. on January 30, 1995. During 2006, we established a merger corporation and subsequently, on July 21, 2006, merged with and into this merger corporation. The resulting corporation assumed the name Tactile Systems Technology, Inc. The purpose of this merger was to reincorporate the Company in Delaware, increase the number of authorized common shares to 8.9 million and assign a par value of $0.001 to our common stock. In September 2013, we began doing business as “Tactile Medical.” In connection with preparing for our initial public offering, our board of directors and stockholders approved a one-for-2.820044 reverse stock split of our capital stock. The reverse stock split became effective in June 2016. All share and per share amounts in these consolidated financial statements and notes thereto have been retroactively adjusted for all periods presented to give effect to this reverse stock split, including reclassifying an amount equal to the reduction in par value of common stock to additional paid-in capital. On August 2, 2016 we closed the initial public offering of our common stock, which resulted in the sale of 4,120,000 shares of our common stock at a public offering price of $10.00 per share. We received net proceeds from the initial public offering of approximately $35.4 million, after deducting underwriting discounts and approximately $2.9 million of transaction expenses. In connection with the closing of the initial public offering, all of our outstanding redeemable convertible preferred stock automatically converted to common stock on August 2, 2016. At August 2, 2016, we did not have any redeemable convertible preferred stock issued or outstanding. The significant increase in common stock outstanding in connection with the initial public offering impacts the year-over-year comparability of our earnings per share calculations. Basis of Consolidation The consolidated financial statements include the accounts of Tactile Systems Technology, Inc. and its wholly owned subsidiary, Swelling Solutions, Inc., after elimination of intercompany accounts and transactions. JOBS Act Accounting Election As an emerging growth company under the Jumpstart Our Business Startups (“JOBS”) Act, we are eligible to take advantage of certain exemptions from various reporting requirements that are applicable to other public companies that are not emerging growth companies. We have elected to take advantage of the extended transition period for adopting new or revised accounting standards that have different effective dates for public and private companies until such time as those standards apply to private companies. Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Cash and Cash Equivalents Cash and cash equivalents consist of all cash on hand, deposits and funds invested in available for sale securities with original maturities of three months or less at the time of purchase. At December 31, 2016, our cash was held primarily in checking and money market accounts. At December 31, 2015, our cash was held primarily in checking accounts. Accounts Receivable The majority of our accounts receivable and revenues are from commercial insurance payers and government payers, such as Medicare, the Veterans Administration and Medicaid. Accounts receivable are carried net of allowances for estimated non-receipt of patient co-payment and deductible obligations and allowances for uncollectible accounts. The allowance for estimated non-receipt of co-payment reimbursements and for uncollectible accounts was $2.6 million and $2.0 million as of December 31, 2016 and 2015, respectively. We believe all accounts receivable in excess of the allowance are fully collectible. We do not accrue interest on a majority of the past due accounts receivable. We determine when accounts become past due on a customer by customer basis. If accounts receivables in excess of the provided allowance are determined uncollectible, the allowance for uncollectible accounts is adjusted as appropriate in the quarter that determination is made, and accounts receivable are written off after all collection efforts have failed. A portion of our claims to Medicare are initially denied, and enter the appeals process, where many are ultimately reviewed by an Administrative Law Judge. After final adjudication of all claims, approximately 90% of the claims submitted are approved (this is on a number of claims, not a dollars claimed, basis across all our products). The appeals process can be lengthy, lasting more than a year in most cases. Accordingly, we classify a portion of our Medicare accounts receivable as non-current based on our experience with Medicare collections. We had accounts receivable from three insurance companies representing approximately 27%, 16% and 8% of accounts receivable as of December 31, 2016. We had accounts receivable from three insurance companies representing approximately 26%, 18% and 7% of accounts receivable as of December 31, 2015. Revenues from these insurance companies accounted for 28%, 12%, and 12% of our total revenues for the year ended December 31, 2016 and 28%, 13% and 11% for the year ended December 31, 2015. Accounts receivable include amounts due from Medicare totaling $3.8 million and $4.3 million relating to Flexitouch System sales to patients as of December 31, 2016 and 2015, respectively, that are waiting insurance approval. We estimate the portion of these accounts receivable for which we expect to receive authorization and payment based on our reimbursement history from Medicare. We classified $2.8 million and $2.0 million of this receivable as of December 31, 2016 and 2015, respectively, as non-current as we do not expect these claims will be paid within the next twelve months due to delays with the Administrative Law Judge appeal process. On September 3, 2015, we entered into a settlement agreement with the Centers for Medicare and Medicaid Services for 247 claims, representing approximately $1.5 million of original claims based on the Medicare allowable rates, in which we had submitted a request for an Administrative Law Judge hearing in 2013. The settlement entitled us to receive a payment of approximately $0.9 million. We received this full amount during the fourth quarter of 2015. The settlement resulted in a reduction in the fourth quarter of 2015 of $0.8 million in accounts receivable for shipment of products to patients covered by Medicare. The settlement was part of a pilot program, facilitated by the Office of Medicare Hearings and Appeals, to address a backlog of overdue claims awaiting Administrative Law Judge adjudication. Because the settlement was part of a pilot program, we cannot predict whether we will be able to conclude future settlements with Medicare or achieve settlements on similar terms. Any future settlement of claims for amounts less than the corresponding amounts receivable would result in a write off. The reserves for uncollectible co-payment reimbursements and doubtful accounts were as follows: Year Ended December 31, (In thousands) 2016 2015 Beginning balance $ $ Accounts receivable provision Write-offs Ending balance $ $ Advertising Advertising costs are charged to operations when incurred. Advertising expense was $57,000, $52,000 and $23,000 for the years ended December 31, 2016, 2015 and 2014, respectively. Research and Development Costs We expense research and development costs as incurred, including expenses associated with clinical research studies and development. Shipping and Handling Costs We do not charge any shipping and handling costs to our customers and the shipping and handling costs incurred are included in cost of goods sold. Product Warranty We provide a warranty for our products against defects in material and workmanship for a period of one to five years on garments and one to two years on controllers. We record a liability for future warranty claims at the time of sale for the warranty period offered to a customer. If the assumptions used in calculating the provision were to materially change, resulting in more defects than anticipated, an additional provision may be required. The warranty reserve was as follows: Year Ended December 31, (In thousands) 2016 2015 Beginning balance $ $ Warranty provision Processed warranty claims Ending balance $ $ Accrued warranty reserve, current $ $ Accrued warranty reserve, long-term — Total accrued warranty reserve $ $ Inventories Inventories are valued at the lower of cost (first-in, first-out method) or market, and consisted of the following: As of December 31, (In thousands) 2016 2015 Finished goods $ $ Component parts and work-in-process Total inventories $ $ Property and Equipment Property and equipment are stated at cost and are being depreciated using the straight-line method over their estimated useful lives of three to five years and leasehold improvements are depreciated over the remaining life of the building lease agreement. Property and equipment consisted of the following: As of December 31, (In thousands) 2016 2015 Equipment $ $ Leasehold improvements Tooling Furniture and fixtures Subtotal Less: accumulated depreciation Property and equipment, net $ $ Major expenditures for property and equipment are capitalized. Maintenance, repairs, and minor renewals are expensed as incurred. When assets are retired or otherwise disposed of, their costs and related accumulated depreciation are removed from the accounts and resulting gains or losses are included in income. Depreciation expense was $0.6 million, $0.5 million and $0.4 million for the years ended December 31, 2016, 2015 and 2014, respectively. Deferred Offering Costs Deferred offering costs, primarily consisting of legal, accounting and other direct fees and costs relating to the initial public offering were initially capitalized and then reclassified to stockholders’ equity at the conclusion of our initial public offering on August 2, 2016. There was $1.3 million in deferred offering costs capitalized as of December 31, 2015 in other non-current assets on the consolidated balance sheet. There were no deferred offering costs capitalized as of December 31, 2016. Impairment of Long-Lived Assets We review long-lived assets, including property and equipment and patents, for impairment whenever events or changes in business circumstances indicate that the carrying amount of an asset may not be fully recoverable. We will assess long-lived assets used in operations for impairment indicators which includes when undiscounted cash flows estimated to be generated by those assets are less than the assets’ carrying amount. To date, we have recorded no such losses other than the write-off of various assets acquired in the ACTitouch transaction. Revenue Recognition We recognize revenue when persuasive evidence of a sales arrangement exists, delivery of product has occurred through the transfer of title and risks of reward of ownership, the selling price is fixed or determinable and collectability is reasonably assured. We distribute our products directly to patients. For any of our products sold to patients covered by private payers, such as commercial insurance companies, we recognize revenues from such sales upon shipment of our products. A product is not shipped until we have received a prescription from a physician for our products and, as applicable, receipt of prior authorization from payers. At shipment, we invoice the payer for the total product price and we recognize revenue as a percentage of the invoice based on the policies and payment history of the applicable payer, net of estimated uncollectible patient copayments. The payment history of the applicable payer is drawn from our actual payment experience over the past year. Any differences in payments received as compared to our estimates are recognized in the period in which we actually receive payment for the product. Over time, we adjust the ultimate collection estimates to reflect these differences. After the insurance payer has remitted payment, we separately invoice the patient for their portion of the payment obligation, such as copayments and deductibles. For our products sold to Medicare patients, we recognize revenues from such sales upon shipment of our products, which can occur only after we have received a prescription from a physician and all applicable Medicare documentation is obtained. For Flexitouch System sales, we estimate the revenue on each shipment to a Medicare patient as a percentage of the total invoice based on collection history. While we have contracted rates with Medicare, to the extent any claims for reimbursement are denied, we will recognize any necessary adjustments in the period for which the adjustment is made or can be estimated. Net Income (Loss) per Share Attributable to Common Stockholders For the reporting periods prior to our initial public offering, we used the two-class method to compute net income (loss) per common share attributable to common stockholders because we had issued securities, other than common stock, that contractually entitled the holders to participate in our dividends and earnings prior to our initial public offering. The two-class method requires earnings for the period to be allocated between common stock and participating securities based upon their respective rights to receive distributed and undistributed earnings. All series of our convertible preferred stock were considered participating securities. Under the two-class method, for periods with net income, basic net income per share attributable to common stockholders is computed by dividing the net income attributable to common stockholders by the weighted-average number of shares of common stock outstanding during the period. Diluted net income per share attributable to common stockholders is computed by dividing the net income attributable to common stockholders by the weighted-average number of shares of common stock and dilutive potential shares of common stock outstanding during the period. Net income attributable to common stockholders is computed by subtracting from net income the portion of current year earnings that the participating securities would have been entitled to receive pursuant to their dividend rights had all of the year’s earnings been distributed. No such adjustment to earnings is made during periods with a net loss, as the holders of the participating securities have no obligation to fund losses. Income Taxes Income taxes are accounted for under the liability method. Deferred income taxes are provided for temporary differences between the financial reporting and the tax bases of assets and liabilities. If we determine in the future that it is more likely than not that we will not realize all or a portion of the deferred tax assets, we will record a valuation allowance in the period the determination is made (see Note 8). Changes in tax rates are reflected in the tax provision as they occur. Stock-Based Compensation The valuation of stock options involves the use of the Black-Scholes option-pricing model, which requires the input of highly subjective assumptions. The assumptions include the expected term of the option, the expected volatility of the price of our common stock, expected dividend yield and the risk-free interest rate. These estimates involve inherent uncertainties and the significant application of management’s judgment. If factors change and different assumptions are used, our stock-based compensation expense could be materially different in the future. We recognize compensation expense for these options on a straight-line basis over the requisite service period (see Note 7). Marketable Securities We determine the appropriate classification of our marketable securities as available-for-sale or held-to-maturity at the time of purchase and periodically reevaluates such classification. Debt securities are classified as held - to - maturity when we have the positive intent and ability to hold the securities to maturity. Debt securities for which we do not have the intent or ability to hold to maturity are classified as available-for-sale. Debt securities not classified as held-to-maturity and all equity securities are classified as available-for-sale and are reported at fair value, with unrealized gains and losses included in the determination of comprehensive income, a component of shareholders' equity. We review our available-for-sale securities for impairment to determine if the impairment is temporary or other-than-temporary. A temporary impairment charge results in an unrealized loss being recorded in other comprehensive income. Other-than-temporary impairments are recorded in net income in the period the impairment is determined to be other-than-temporary . Realized gains and losses on the sale of marketable securities are determined using the specific-identification method. Comprehensive Income Comprehensive income reflects the change in equity of a business enterprise during a period from transactions and other events and circumstances from non-owner sources. Our comprehensive income represents net income adjusted for unrealized gains and losses on available-for-sale marketable securities. Recent Accounting Pronouncements The JOBS Act provides that an "emerging growth company" can take advantage of the extended transition period provided in Section 7(a)(2)(B) of the Securities Act for complying with new or revised accounting standards. In other words, an "emerging growth company" can selectively delay the adoption of certain accounting standards until those standards would otherwise apply to private companies. We have elected to avail ourselves of this exemption and, as a result, our financial statements may not be comparable to the financial statements of issuers who are required to comply with the effective dates for new or revised accounting standards that are applicable to public companies. Section 107 of the JOBS Act provides that we can elect to opt out of the extended transition period at any time, which election is irrevocable. In May 2014, the Financial Accounting Standards Board (“FASB”), issued Accounting Standards Update (“ASU”) 2014-09, “ Revenue from Contracts with Customers .” The new section will replace Section 605, “ Revenue Recognition ,” and creates modifications to various other revenue accounting standards for specialized transactions and industries. The section is intended to conform revenue accounting principles with a concurrently issued International Financial Reporting Standards to reconcile previously differing treatment between U.S. practices and those of the rest of the world and to enhance disclosures related to disaggregated revenue information. The updated guidance is effective for interim and annual reporting periods beginning on or after December 15, 2018, for private companies; this effective date is applicable for us due to the JOBS Act exemption described above. Therefore, we plan to further evaluate the timing and anticipated impact of the adoption of this updated guidance on our consolidated financial statements in future periods. In November 2015, the FASB issued ASU 2015-l7, “ Income Taxes: Balance Sheet Classification of Deferred Taxes ,” which requires entities to present deferred tax assets and deferred tax liabilities as noncurrent in a classified balance sheet. The ASU is effective for annual periods beginning after December l5, 20l7, and interim periods within annual periods beginning after December 15, 2018. Early adoption is permitted for all entities. We elected to adopt this new standard in the fourth quarter of 2016. In February 2016, the FASB issued ASU 2016-02, “ Leases ” (Topic 842), which supersedes the existing guidance for lease accounting, “ Leases” (Topic 840). ASU 2016-02 requires lessees to recognize a lease liability and a right-of-use asset for all leases. Lessor accounting remains largely unchanged. The amendments in this ASU are effective for interim and annual periods beginning after December 15, 2019 for private companies; this effective date is applicable to us due to the JOBS Act exemption described above. Early adoption is permitted for all entities. ASU 2016-02 requires a modified retrospective approach for all leases existing at, or entered into after the date of initial adoption, with an option to elect to use certain transition relief. We plan to further evaluate the timing and anticipated impact of the adoption of this ASU on our consolidated financial statements in future periods. In March 2016, the FASB issued ASU 2016-09, “ Improvements to Employee Share-Based Payment Accounting ,” which simplifies several aspects of the accounting for employee share-based payment transactions, including the accounting for income taxes and statutory tax withholding requirements and classification within the statement of cash flows. The ASU is effective for fiscal years beginning after December 15, 2016. We elected to adopt this new standard in the fourth quarter of 2016, effective as of January 1, 2016. In June 2016, the FASB issued ASU No. 2016-13, “ Financial Instruments — Credit Losses ,” to require the measurement of expected credit losses for financial instruments held at the reporting date based on historical experience, current conditions and reasonable forecasts. The ASU is effective for interim and annual periods beginning after December 15, 2020, for private companies; this effective date is applicable to us due to the JOBS Act exemption described above. Therefore, we plan to further evaluate the timing and anticipated impact of the adoption of this ASU on our consolidated financial statements in future periods. In August 2016, the FASB issued ASU No. 2016-15, “ Statement of Cash Flows (Topic 230) — Classification of Certain Cash Receipts and Cash Payments ,” to provide clarity on how certain cash receipt and cash payment transactions are presented and classified within the statement of cash flows. The ASU is effective for interim and annual periods beginning after December 15, 2018, for private companies; this effective date is applicable for us due to the JOBS Act exemption described above. Therefore, we plan to further evaluate the timing and anticipated impact of the adoption of this ASU on our consolidated financial statements in future periods. |
Marketable Securities
Marketable Securities | 12 Months Ended |
Dec. 31, 2016 | |
Marketable Securities. | |
Marketable Securities | Note 2. Marketable Securities Our investments in marketable securities are classified as available-for-sale and consist of the following: December 31, 2016 Unrealized Unrealized (In thousands) Cost Gains Losses Fair Value U.S. government and agency obligations $ $ $ $ Corporate debt securities and certificates of deposit — Marketable securities $ $ $ $ Our investments in marketable debt securities all have contractual maturities of twelve to 24 months from December 31, 2016. At December 31, 2016, marketable debt securities valued at $4.0 million were in an unrealized gain position totaling $2,000 and marketable debt securities valued at $7.0 million were in an unrealized loss position totaling $19,000 (all had been in an unrealized loss position for less than 12 months). Net pre-tax unrealized losses for marketable securities of $17,000 at December 31, 2016 were recorded as a component of accumulated other comprehensive loss in stockholders' equity. There were no sales of securities during the year ended December 31, 2016. |
Patent Costs, Net
Patent Costs, Net | 12 Months Ended |
Dec. 31, 2016 | |
Patent Costs, Net | |
Patent Costs, Net | Note 3. Patent Costs, Net Our patents, all of which are subject to amortization, are summarized as follows: As of (In thousands) 2016 2015 Patents $ $ Less: accumulated amortization Net patents $ $ Amortization expense was $0. 3 million, $0.3 million and $0.3 million for the years ended December 31, 2016, 2015 and 2014, respectively. Future amortization expenses are expected as follows: (In thousands) 2017 $ 2018 2019 2020 2021 Thereafter Total $ The weighted-average remaining amortization period for these patents was 13.6 years as of December 31, 2016. |
Accrued Expenses
Accrued Expenses | 12 Months Ended |
Dec. 31, 2016 | |
Accrued Expenses | |
Accrued Expenses | Note 4. Accrued Expenses Accrued expenses consisted of the following: As of (In thousands) 2016 2015 Accrued warranty $ $ Accrued clinical Other Total $ $ |
Line of Credit _ Bank
Line of Credit — Bank | 12 Months Ended |
Dec. 31, 2016 | |
Line of Credit — Bank | |
Line of Credit — Bank | Note 5. Line of Credit — Bank We have a $2.0 million line of credit with a bank that bears interest based on the prime rate, which was 3.75% as of December 31, 2016, and expires on May 11, 2017. Our credit line is secured by substantially all of our assets, including property and equipment, accounts receivable and inventory. Our credit line contains customary conditions as to borrowing, events of default and covenants, including covenants that restrict our ability to dispose of assets, merge with or acquire other entities, and incur indebtedness or encumbrances. There was no outstanding balance on the line of credit as of December 31, 2016 and December 31, 2015. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2016 | |
Commitments and Contingencies | |
Commitments and Contingencies | Note 6. Commitments and Contingencies Lease Obligations In March 2008, we entered into a non-cancelable operating lease agreement for building space for our corporate headquarters that provides for monthly rent, real estate taxes and operating expenses that was extended to July 31, 2021. Rent expense was $1.0 million, $0. 9 million and $0.8 million for the years ended December 31, 2016, 2015 and 2014, respectively. In July 2016, we entered into a non-cancelable operating lease agreement for building space to accommodate the relocation of our manufacturing, quality, and research and development functions. The lease agreement extends through November 2021 and provides for monthly rent, real estate taxes and operating expenses. We also have operating lease agreements for certain computer and office equipment that expire in 2020. The leases provide an option to purchase the related equipment at fair market value at the end of the lease. Future base minimum lease payments for all lease obligations are expected to be as follows for the years ending December 31: Computer/Office Fleet Car (In thousands) Buildings Equipment Program Total 2017 $ $ $ $ 2018 — 2019 — 2020 — 2021 — — Thereafter — — — — Total $ $ $ $ Major Vendors We had purchases from three vendors that accounted for 37% and 45% of total purchases for the years ended December 31, 2016 and December 31, 2015, respectively. Purchase Commitment We issued purchase orders in February 2016 for which $4.9 million remains for inventory that we expect to receive between January and July of 2017. We issued purchase orders in January 2017 totaling $7.8 million that we expect to receive between July of 2017 and February of 2018. Employment Agreements We have entered into employment agreements with certain of our officers. The agreements provide for payment of severance ranging from nine to 15 months of then-current annualized base salary in the event of termination by us without cause or by the employee for good reason or, in the case of two of the officers, death, disability, or as a result of a qualifying termination after a change in control. The agreements also provide for payment of an amount equal to nine to 15 months of the then-current annual target bonus in the event of termination by us without cause or by the employee for good reason, or, in the case of two of the officers, death, disability, or as a result of a qualifying termination after a change in control. In addition, the agreements provide for the vesting of certain equity compensation through the date of termination in the event of termination by us without cause or by the employee for good reason. Retirement Plan We maintain a 401(k) retirement plan for our employees in which eligible employees can contribute a percentage of their pre-tax compensation. We may also make discretionary contributions to the 401(k) plan. We made contributions of $0.2 million , $0.1 million and $0.1 million for the years ended December 31, 2016, 2015 and 2014, respectively. |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Dec. 31, 2016 | |
Stockholders' Equity | |
Stockholders' Equity | Note 7. Stockholders' Equity In September and October 2012, we received gross proceeds of $10.4 million for issuance of 2,733,468 shares of our Series B preferred stock at $3.80 per share. The Series B preferred stock included a liquidation preference of the original investment plus an accruing dividend at a rate of 6%, compounded annually, whether or not declared. The accruing dividend was payable upon a voluntary or involuntary liquidation or dissolution of our Company, upon conversion of the Series B preferred stock to common stock, upon redemption of the Series B preferred stock or at such time as we paid a dividend on other shares of our capital stock. The accruing dividend could have been paid in cash or, at the option of the stockholder, additional shares of Series B preferred stock determined by dividing the amount of the accruing dividend by the Series B preferred stock purchase price as adjusted. There were $2.6 million of undeclared cumulative preferred dividends as of August 2, 2016, the date we closed our initial public offering, and we paid those dividends in the form of shares of our common stock. Holders of shares of Series B preferred stock were entitled to votes equal to the number of shares of common stock into which such Series B preferred stock could be converted. Each share of Series B preferred stock could be converted into equal shares of common stock at the option of the Series B preferred stock holder at any time. In addition, the Series B preferred stock shares were automatically convertible into common shares upon the sale of shares of common stock to the public at a price per share of at least $11.42 in a firm commitment underwritten public offering pursuant to an effective registration statement under the Securities Act of 1933, as amended, resulting in at least $30 million of proceeds to our company, net of underwriting discounts and commissions and after which the common stock is listed on an United States national securities exchange. Each Series B preferred stockholder was also entitled to receive the number of common shares equal to the Series B preferred stock original issue price divided by the initial public offering price per share. In addition, each Series B Preferred stockholder was entitled to receive the number of common shares equal to (1) the accrued dividends on the shares of Series B preferred stock divided by the original issue price of the Series B preferred stock and (2) the accrued dividends on the shares of Series B preferred stock divided by the initial public offering price per share in the offering. From 2007 through 2009, we received gross proceeds of $13.0 million for the issuance of 3,061,488 shares of our Series A preferred stock at $4.23 per share. The Series A preferred stock included a liquidation preference of the original investment plus an accruing dividend at a rate of 6%, compounded annually, whether or not declared. The accruing dividend was payable upon a voluntary or involuntary liquidation or dissolution of our company or upon conversion of the Series A preferred stock to common stock, upon redemption of the Series A preferred stock or at such time as we paid a dividend on other shares of our capital stock. The accruing dividend would be paid in cash. There were $8. 2 million of undeclared cumulative preferred dividends as of August 2, 2016, the date we closed our initial public offering, and we paid those dividends in cash . Holders of shares of Series A preferred stock were entitled to votes equal to the number of shares of common stock into which such Series A preferred stock could be converted. Purchasers of the Series A preferred stock received anti-dilution rights whereby if we issued or sold additional shares of preferred or common shares at a purchase price below $4.23 per share, we would issue additional shares to these purchasers of Series A preferred stock to effectively reduce their purchase price. The Series B preferred stock was sold at a price less than the Series A preferred stock. As a result, we issued 83,972 shares of common stock for this anti-dilution provision. Each share of Series A preferred stock could be converted into equal shares of common stock at the option of the Series A preferred stock holder at any time. In addition, the Series A preferred stock shares were automatically convertible into common shares upon the sale of shares of common stock to the public at a minimum price of $11.42 per share in a firm commitment underwritten public offering pursuant to an effective registration statement under the Securities Act of 1933, as amended, resulting in at least $30 million of proceeds to our company, net of underwriting discounts and commissions. Each Series A preferred stockholder was also entitled to receive the number of common shares equal to the Series A preferred stock original issue price divided by the initial public offering price per share. At the time of its issuance, we determined that the Series B and Series A preferred stock contained two embedded features: (1) optional redemption by the holder and (2) optional conversion by the holder. We determined that each of the embedded features met the definition of a derivative and that the Series B and Series A preferred stock should be considered an equity host for the purposes of assessing the embedded derivatives for potential bifurcation. The following was noted regarding these embedded features: Optional Redemption by the Holder. We determined that the redemption feature was not clearly and closely related to the equity host instrument but does not meet the definition of a derivative. As such, the redemption feature did not require bifurcation under the guidance for derivatives. Optional Conversion by the Holder. The optional conversion feature was determined to be clearly and closely related to the Series B and Series A preferred stock host. As such the conversion feature did not require bifurcation under ASC 815, “ Derivatives and Hedging .” The Series B and Series A preferred stock was assessed under ASC 470, " Debt ," to determine if there was a beneficial conversion feature. We determined there was no beneficial conversion feature. We completed the initial public offering of our common stock on August 2, 2016, in which we sold 4,120,000 shares of our common stock at a public offering price of $10.00 per share. Immediately prior to the completion of the initial public offering, all then-outstanding shares of our Series A and Series B preferred stock were converted into 5,924,453 shares of our common stock. Our Series A preferred stock converted to common stock at a ratio of 1-for-1.03 and our Series B preferred stock converted to common stock at a ratio of 1-for-1. In addition, immediately prior to the completion of the initial public offering, we issued 2,354,323 additional shares of our common stock that our Series A and Series B preferred stockholders were entitled to receive in connection with the conversion of the preferred stock, and we issued 956,842 shares of our common stock to pay accrued dividends on our Series B preferred stock. We also paid $8.2 million in cumulative accrued dividends to our Series A convertible preferred stockholders in connection with the initial public offering, including $0.1 million of dividends paid to the holders of the common restricted shares. Stock-Based Compensation Our 2016 Equity Incentive Plan (the “2016 Plan”) authorizes us to grant stock options, stock appreciation rights, restricted stock, stock units and other stock-based awards to employees, non-employee directors and certain consultants and advisors. There were up to 4,800,000 shares of our common stock initially reserved for issuance pursuant to the 2016 Plan, of which 4,180,831 shares were available for future issuance as of December 31, 2016. The 2016 Plan provides that the number of shares reserved and available for issuance under the 2016 Plan will automatically increase annually on January 1 of each calendar year, commencing in 2017 and ending on and including January 1, 2026, by an amount equal to the lesser of: (a) 5% of the number of common shares of stock outstanding as of December 31 of the immediately preceding calendar year, or (b) 2,500,000 shares; provided, however, that our Board of Directors may determine that any annual increase be a lesser number. In addition, all awards granted under our 2007 Omnibus Stock Plan and our 2003 Stock Option Plan that were outstanding when the 2016 Plan became effective and that are forfeited, expire, are cancelled, are settled for cash or otherwise not issued, will become available for issuance under the 2016 Plan. Effective January 1, 2017, 841,686 shares were added to the 2016 Plan, as available for issuance thereunder, pursuant to the automatic increase feature of the 2016 Plan. Upon adoption and approval of the 2016 Equity Incentive Plan, all of our previous equity incentive compensation plans were terminated. However, existing awards under those plans continue to vest in accordance with the original vesting schedules and will expire at the end of their original terms. We recorded total stock-based compensation expense of $1.9 million, $0.3 million and $0.1 million for the years ended December 31, 2016, 2015 and 2014, respectively. This expense was allocated as follows: Year Ended December 31, (In thousands) 2016 2015 2014 Cost of goods sold $ $ $ Sales and marketing expenses Research and development expenses — — Reimbursement, general and administrative expenses Total stock-based compensation expense $ $ $ Stock Options Stock options issued to participants other than non-employees vest over four years and typically have a contractual term of 10 years. The stock options granted on July 27, 2016 to our non-employee directors vest in full on the earlier of one year after the date of grant or the date of the 2017 annual meeting of stockholders. These options have a contractual term of 7 years. Stock-based compensation expense included in our Consolidated Statements of Operations for stock options was $1.5 million, $0.1 million and $0.1 million for the years ended December 31, 2016, 2015 and 2014, respectively. The total grant date fair value of options vested during the year was $0.2 million, $0.1 million and $0.1 million for the years ended December 31, 2016, 2015 and 2014 respectively. As of December 31, 2016, there was approximately $1.5 million of total unrecognized pre-tax compensation expense related to non-vested stock option awards that are expected to be recognized over a weighted average period of 2.8 years. The fair value of each option grant is estimated on the date of grant using the Black-Scholes option pricing model. Annually, we make predictive assumptions regarding future stock price volatility, employee exercise behavior, dividend yield and the forfeiture rate. The dividend yield assumption is based on expected annual dividend yield on the grant date. To date, no dividend on common stock has been paid by us. Expected volatility was estimated using the average historical volatility of public companies of similar size and industry over the similar period as the expected term assumption used for our options. The risk free interest rate is based on the yields of U.S. Treasury securities with maturities similar to the expected term of the options for each option group. We use the “simplified method” to determine the expected term of the stock option. The following table sets forth the estimated weighted-average fair values of our stock options granted in each of the years indicated, and the assumptions on which the fair values were determined: Year Ended December 31, 2016 2015 2014 Expected term 6 years 6 years 6 years Expected volatility Risk-free interest rate Expected dividend yield Weighted-average fair value on the date of grant $ $ $ Stock option activity for the three years ended December 31, 2016 is summarized as follows: Weighted A verage Weighted A verage Aggregate Options Exercise Price Remaining Intrinsic (In thousands except share, per share and years data) Outstanding Per Share 1 Contractual Life Value 2 Balance at December 31, 2013 $ 6.4 years $ Granted Exercised Forfeited Balance at December 31, 2014 6.2 years Granted Exercised Forfeited Balance at December 31, 2015 5.8 years Granted Exercised Forfeited Balance at December 31, 2016 5.5 years Options exercisable at December 31, 2016 $ 4.5 years $ (1) The exercise price of each option granted during the periods shown was equal to the market price of the underlying stock on the date of grant. (2) The aggregate intrinsic value of options exercised represents the difference between the exercise price of the option and the closing stock price of our common stock on the date of exercise. The aggregate intrinsic value of options outstanding represents the difference between the exercise price of the option and the closing stock price of our common stock on the last day of the year. Options exercisable of 1,359,302 at December 31, 2016 and 1,368,047 at December 31, 2015 had weighted average exercise prices of $1.06 and $1.18, respectively. The following summarizes additional information about the our stock options: As of December 31, Number of: 2016 2015 Non-vested options beginning of the year Non-vested options end of the year Vested options As of December 31, Weighted-average grant date fair value of: 2016 2015 Non-vested options beginning of the year $ $ Non-vested options end of the year Vested options Forfeited options Stock-Settled Restricted Stock Units Stock-settled restricted stock units granted under the 2016 Equity Incentive Plan vest after one to three years. These awards are stock-settled for common chares. Stock-based compensation expense included in our Consolidated Statement of Operations for stock-settled restricted stock units was $0.7 million for the year ended December 31, 2016. No restricted stock units had been granted prior to fiscal 2016. As of December 31, 2016, there was $2.7 million of total unrecognized pre-tax compensation expense related to outstanding stock-settled restricted stock units that is expected to be recognized over a weighted-average period of 2.0 years. Stock-settled restricted stock unit activity for the year ended December 31, 2016 is summarized as follows: Weighted Aggregate Units Average Grant Intrinsic (In thousands except share and per share data) Outstanding Date Fair Value Value 2 Balance at December 31, 2015 — $ — Granted Vested 1 Cancelled Balance at December 31, 2016 $ (1) The restricted stock units shown as vested during the year represent grants to non-employee directors in lieu of annual retainer installments, which restricted stock units were fully vested upon grant and represent the right to receive one share of common stock upon the earlier of the director’s termination of service as a director of ours or the occurrence of a change in control of us. The shares of common stock underlying these restricted stock units are not issued or outstanding. (2) Intrinsic value of stock-settled restricted stock units vested was based on our closing stock price on the last trading day of the year. Restricted Stock Awards Restricted stock awards were granted in 2009 in lieu of cash bonuses. Stock-based compensation expense included in our Consolidated Statements of Operations for restricted stock was $0.3 million for the year ended December 31, 2016. Employee Stock Purchase Plan Our employee stock purchase plan (“ESPP”), which was approved by our Board of Directors on April 27, 2016 and by our stockholders on June 20, 2016, allows participating employees to purchase shares of our common stock at a discount through payroll deductions. The plan is available to all of our employees and employees of participating subsidiaries. Participating employees may purchase common stock, on a voluntary after-tax basis, at a price equal to 85% of the lower of the closing market price per share of our common stock on the first or last trading day of each stock purchase period. The plan ordinarily consists of six-month purchase periods, beginning on May 16 and November 16 of each calendar year, but the initial purchase period began on July 27, 2016 and will end on May 15, 2017. A total of 1.6 million shares of common stock are reserved for issuance under the plan, and this share reserve will automatically be supplemented each January 1, commencing in 2017 and ending on and including January 1, 2026, by an amount equal to the least of (1) 1% of the shares of our common stock outstanding on the immediately preceding December 31, (2) 500,000 shares or (3) such lesser amount as our Board of Directors may determine. Effective January 1, 2017, 168,337 shares will be added to the ESPP, as available for issuance thereunder, pursuant to the automatic increase feature of the plan. No purchases were made under the plan during the year ended December 31, 2016. We recognized $0.4 million in stock-based compensation expense related to the ESPP for the year ended December 31, 2016. We did not recognize any stock-based compensation expense related to the ESPP for the years ended December 31, 2015 and 2014. Stock Warrants We have also issued warrants to purchase shares of our common stock which are summarized below: Weighted-Average Weighted-Average Remaining Number Exercise Contractual Outstanding Price Life Warrants outstanding — December 31, 2013 $ Exercised — — Expired — — Warrants outstanding — December 31, 2014 Exercised Expired — Warrants outstanding — December 31, 2015 Exercised Expired — — Warrants outstanding — December 31, 2016 0.56 years |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2016 | |
Income Taxes | |
Income Taxes | Note 8. Income Taxes The provision for income tax expense consisted of the following: Year Ended December 31, (In thousands) 2016 2015 2014 Current income taxes $ $ $ Deferred income taxes Total provision for income taxes $ $ $ The components of our deferred tax assets were as follows: As of December 31, (In thousands) 2016 2015 2014 Deferred tax assets: Net operating loss carryforwards $ $ — $ Accounts receivable and inventory reserves Warranty reserves Intangible assets Accrued liabilities Stock-based compensation — — Other Total deferred tax assets $ $ $ Deferred tax liabilities: Depreciation Total deferred tax liabilities $ $ $ Net deferred tax assets $ $ $ A reconciliation of income tax expense to the statutory federal tax rate of 34% is as follows: Year Ended December 31, (In thousands) 2016 2015 2014 Tax expense at statutory rate % % % Other Permanent differences Meals & Entertainment — State income taxes, net of federal benefit State tax rate adjustment — Deferred true-up adjustment — — Excess benefit on non-qualified stock options — — Other and uncertain tax positions Net effective rate % % % Deferred income taxes result from temporary differences between the reporting of amounts for financial statement purposes and income tax purposes. These differences relate primarily to different methods used for income tax purposes including depreciation and amortization, warranty and vacation accruals, and deductions related to allowances for doubtful accounts receivable and inventory reserves. As of December 31, 2016, we had no U.S. federal net operating loss (“NOL”) carry-forwards and approximately $2.4 million of Minnesota state NOLs. The Minnesota NOL carry-forward amounts expire in tax years 2024 through 2029, if not utilized. We are subject to income tax examinations in the U.S. federal jurisdiction as well as in various state jurisdictions. U.S. federal and state tax years prior to 2012 were still open to examination at December 31, 2016. In accounting for uncertainty in income taxes, we recognize the financial statement benefit of a tax position only after determining that the relevant tax authority would more likely than not sustain the position following an audit. For tax positions meeting the more likely than not threshold, the amount recognized in the financial statements is the largest benefit that has a greater than 50 percent likelihood of being realized upon ultimate settlement with the relevant tax authority. As of December 31, 2016 and 2015, we did not have any unrecognized tax benefits. We recognize interest and penalties accrued on any unrecognized tax benefits as a component of income tax expense. We do not expect any material changes in our unrecognized tax benefits over the next 12 months. In March 2016, the FASB issued ASU 2016-09, “ Improvements to Employee Share-Based Payment Accounting .” The standard is required to be adopted by all companies in their first fiscal year beginning after December 15, 2016, but allows companies to elect adoption prior to this date. The standard is intended to simplify various aspects of the accounting and presentation of share-based payments. During the quarter ended December 31, 2016, we elected to early adopt this standard as of January 1, 2016. Adoption of this standard had the following impact on our financial statements: Statements of Operations – The new accounting standard requires that the tax effects of stock-based compensation be recognized in the income tax provision of our Consolidated Statements of Operations. Previously, all excess tax benefits were recognized in additional paid-in capital, and tax deficiencies were recognized either in the income tax provision or in additional paid-in capital to the extent that there was a sufficient “APIC pool” related to previously recognized excess tax benefits. The new standard requires amounts recognized through additional paid-in capital during 2016 interim periods to be recasted as recognized through our Consolidated Statements of Operations. We did not recognize any excess benefit or deficiency through additional paid-in capital with respect to our 2016 quarterly filings. In our quarterly provisions we made no entries with respect to NQSOs exercised throughout the year as the FMV valuations necessary to compute the excess benefit were not available at the time reports were issued. Accordingly, there is no adjustment as the result of prior entries to APIC. There are, however, favorable adjustments to adjust tax expense for the unrecorded tax benefits for prior quarters in the amounts of $0.3 million, $49,000, and $0.6 million for the first, second, and third quarters of 2016, respectively. Statements of Cash Flows – The standard requires that excess tax benefits from stock-based employee awards be reported as operating activities in our Consolidated Statements of Cash Flows. Previously, these cash flows were included as hypothetical inflows/outflows in both operating and financing activities. We elected to apply this change on a prospective basis, resulting in no change in net cash provided by operating activities and financing activities with respect to our 2016 quarterly filings. Statements of Shareholders’ Equity (Deficit) – The standard requires that as of the beginning of the annual period of adoption, previously unrecognized excess tax benefits be recognized on a modified retrospective basis and a deferred tax asset be recorded for the balance with an offsetting adjustment to retained earnings. We did not recognize additional deferred tax assets or adjust retained earnings as we did not recognize any excess benefit or deficiency through additional paid-in capital through our third quarter 2016 reporting period. In recording stock-based compensation expense, the new standard allows companies to make a policy election as to whether they will include an estimate of awards expected to be forfeited or whether they will account for forfeitures as they occur. We have elected to include an estimate of forfeitures in the computation of our stock-based compensation expense. As this treatment is consistent with our previous practice, there is no impact on our consolidated financial statements. The new standard requires that employee taxes paid when an employer withholds shares for tax-withholding purposes be reported as financing activities in the Consolidated Statements of Cash Flows. As this treatment is consistent with our previous practice, this election had no impact on our consolidated financial statements. Under ASU No. 2016-09, an entity recognizes all excess tax benefits and tax deficiencies relating to stock based compensation as income tax expense or benefit in the Statement of Operations. This change eliminates the notion of the “APIC” pool and related prior year disclosures for excess tax deductions not reflected in our deferred tax asset presentation. On November 20, 2015, the FASB issued ASU 2015-17, “ Balance Sheet Classification of Deferred Taxes .” The ASU is part of the FASB’s simplification initiative aimed at reducing complexity in accounting standards. To simplify presentation, the new guidance requires that all deferred tax assets and liabilities, along with any related valuation allowance, be classified as non-current on the balance sheet. As a result, each jurisdiction will now only have one net non-current deferred tax asset or liability. During the quarter ended December 31, 2016, we early adopted ASU 2015-17 to present balance sheet classification of deferred income taxes as non-current. This adoption was applied prospectively and therefore, prior periods were not retrospectively adjusted. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 12 Months Ended |
Dec. 31, 2016 | |
Accumulated Other Comprehensive Loss. | |
Accumulated Other Comprehensive Loss | Note 9. Accumulated Other Comprehensive Loss At December 31, 2016, 2015 and 2014, the components of accumulated other comprehensive loss were as follows: Accumulated Available- Other for-Sale Comprehensive (In thousands) Securities Loss Balances at December 31, 2013 $ — $ — Other comprehensive income (loss) — — Balances at December 31, 2014 — — Other comprehensive income (loss) — — Balances at December 31, 2015 — — Other comprehensive income (loss) Balances at December 31, 2016 $ $ |
Net Income (Loss) Per Share Att
Net Income (Loss) Per Share Attributable to Common Stockholders | 12 Months Ended |
Dec. 31, 2016 | |
Net Income (Loss) Per Share Attributable to Common Stockholders | |
Net Income (Loss) Per Share Attributable to Common Stockholders | Note 10. Net Income (Loss) Per Share Attributable to Common Stockholders The following table sets forth the computation of our basic and diluted net income (loss) per share attributable to common stockholders: Year Ended December 31, (In thousands, except share and per share data) 2016 2015 2014 Net income $ $ $ Convertible preferred stock dividends Allocation of undistributed earnings to preferred stockholders — — Net income (loss) attributable to common stockholders $ $ $ Weighted average shares outstanding Effect of common stock options, warrants, restricted stock units and employee stock purchase plan shares — Weighted-average shares used to compute diluted net income (loss) per share Net income (loss) per share - Basic $ $ $ Net income (loss) per share - Diluted $ $ $ As of December 31, 2016, total common shares outstanding and the potentially dilutive shares totaled approximately 18.7 million shares. The following potentially dilutive securities were excluded from the computation of weighted-average shares outstanding for the years ended December 31, 2016, 2015 and 2014 because these securities would have had an anti-dilutive impact: Year Ended December 31, 2016 2015 2014 Convertible preferred stock outstanding — Restricted stock units — — — Common stock options Employee stock purchase plan shares — — — Common stock warrants — Total |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2016 | |
Fair Value Disclosures | |
Fair Value Measurements | Note 11. Fair Value Measurements We determine the fair value of our assets and liabilities based on the exchange price that would be received for an asset or paid to transfer a liability (exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value maximize the use of observable inputs and minimize the use of unobservable inputs. We use a fair value hierarchy with three levels of inputs, of which the first two are considered observable and the last unobservable, to measure fair value. The fair value hierarchy gives the highest priority to quoted prices in active markets for identical assets or liabilities (Level 1). The next highest priority is based on quoted prices for similar assets or liabilities in active markets or quoted prices for identical or similar assets or liabilities in non-active markets or other observable inputs (Level 2). The lowest priority is given to unobservable inputs (Level 3). The following provides information regarding fair value measurements for our marketable securities as of December 31, 2016 according to the three-level fair value hierarchy. Fair Value Measurements at December 31, 2016 Using: Quoted Prices in Active Significant Markets for Other Significant Identical Observable Unobservable Assets Inputs Inputs (In thousands) (Level 1) (Level 2) (Level 3) Total Recurring Fair Value Measurements: Currency $ $ — $ — $ Money market mutual funds U.S. government and agency obligations — Corporate debt securities and certificates of deposit — — Total $ $ $ — $ During the year ended December 31, 2016 there were no transfers within the three level hierarchy. A significant transfer is recognized when the inputs used to value a security have been changed which merit a transfer between the disclosed levels of the valuation hierarchy. The fair value for our currency, money market mutual funds, U.S. government and agency obligations and corporate debt securities are determined based on valuations provided by external investment managers who obtain them from a variety of industry standard data providers. The carrying amounts of financial instruments such as cash equivalents, accounts receivable, other assets, accounts payable, accrued expenses and other liabilities approximate their related fair values due to the short-term maturities of these instruments. Non-financial assets such as equipment and leasehold improvements, and intangible assets are subject to non-recurring fair value measurements if they are deemed impaired. We had no re-measurements of non-financial assets to fair value in 2016. |
Quarterly Financial Information
Quarterly Financial Information (Unaudited) | 12 Months Ended |
Dec. 31, 2016 | |
Quarterly Financial Information (Unaudited) | |
Quarterly Financial Information (Unaudited) | Note 12. Quarterly Financial Information (Unaudited) The quarterly financial data presented below should be read in conjunction with the consolidated financial statements and related notes. The adjustment is due to the retrospective application of ASU 2016-09 as further discussed in Note 8 – Income tax above. Three Months Ended Mar. 31, 2016 Jun. 30, 2016 Sep. 30, 2016 As As As As As As (In thousands, except per share data) Reported Adjusted (2) Reported Adjusted (2) Reported Adjusted (2) Dec. 31, 2016 Revenues $ $ $ $ $ $ $ Gross margin Income (loss) from operations Net income (loss) attributable to common stockholders Net income (loss) per share - Basic (1) Net income (loss) per share - Diluted (1) Three Months Ended (In thousands, except per share data) Mar. 31, 2015 Jun. 30, 2015 Sep. 30, 2015 Dec. 31, 2015 Revenues $ $ $ $ Gross margin Income (loss) from operations Net income (loss) attributable to common stockholders Net income (loss) per share - Basic (1) Net income (loss) per share - Diluted (1) (1) The summation of quarterly per share amounts may not equal the calculation for the full year, as each quarterly calculation is performed discretely. (2) As adjusted amounts include the impact of adopting ASU 2016-09, “ Improvements to Employee Share-Based Payment Accounting ,” which simplifies several aspects of the accounting for employee share-based payment transactions, including the accounting for income taxes and statutory tax withholding requirements and classification within the statement of cash flows. The ASU is effective for fiscal years beginning after December 15, 2016. We elected to adopt this new standard in the fourth quarter of 2016, effective as of January 1, 2016 . |
Summary of Significant Accoun20
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2016 | |
Summary of Significant Accounting Policies | |
Nature of Operations | Nature of Operations Tactile Systems Technology, Inc. (“we,” “us,” and “our”) is the sole manufacturer and distributor of the Flexitouch and Entré Systems, medical devices that help control symptoms of lymphedema, a chronic and progressive medical condition, and the ACTitouch System, a medical device used to treat venous leg ulcers and chronic venous insufficiency. We provide our products for use in the home and sell them through vascular, wound and lymphedema clinics throughout the United States. We do business as “Tactile Medical.” |
Basis of Presentation | Basis of Presentation Our accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) and pursuant to the rules and regulations of the SEC. The results for the year ended December 31, 2016 are not necessarily indicative of results to be expected for any future year. Our business is affected by seasonality. In the first quarter of each year, when most patients have started a new insurance year and have not paid their annual deductibles, we experience substantially reduced demand for our products. We typically experience higher sales in the third and fourth quarters as a result of patients having paid their annual insurance deductibles in full, thereby reducing their out-of-pocket costs for our products, or because patients often spend the remaining balances in their flexible spending accounts. We were originally incorporated in Minnesota under the name Tactile Systems Technology, Inc. on January 30, 1995. During 2006, we established a merger corporation and subsequently, on July 21, 2006, merged with and into this merger corporation. The resulting corporation assumed the name Tactile Systems Technology, Inc. The purpose of this merger was to reincorporate the Company in Delaware, increase the number of authorized common shares to 8.9 million and assign a par value of $0.001 to our common stock. In September 2013, we began doing business as “Tactile Medical.” In connection with preparing for our initial public offering, our board of directors and stockholders approved a one-for-2.820044 reverse stock split of our capital stock. The reverse stock split became effective in June 2016. All share and per share amounts in these consolidated financial statements and notes thereto have been retroactively adjusted for all periods presented to give effect to this reverse stock split, including reclassifying an amount equal to the reduction in par value of common stock to additional paid-in capital. On August 2, 2016 we closed the initial public offering of our common stock, which resulted in the sale of 4,120,000 shares of our common stock at a public offering price of $10.00 per share. We received net proceeds from the initial public offering of approximately $35.4 million, after deducting underwriting discounts and approximately $2.9 million of transaction expenses. In connection with the closing of the initial public offering, all of our outstanding redeemable convertible preferred stock automatically converted to common stock on August 2, 2016. At August 2, 2016, we did not have any redeemable convertible preferred stock issued or outstanding. The significant increase in common stock outstanding in connection with the initial public offering impacts the year-over-year comparability of our earnings per share calculations. |
Basis of Consolidation | Basis of Consolidation The consolidated financial statements include the accounts of Tactile Systems Technology, Inc. and its wholly owned subsidiary, Swelling Solutions, Inc., after elimination of intercompany accounts and transactions. |
JOBS Act Accounting Election | JOBS Act Accounting Election As an emerging growth company under the Jumpstart Our Business Startups (“JOBS”) Act, we are eligible to take advantage of certain exemptions from various reporting requirements that are applicable to other public companies that are not emerging growth companies. We have elected to take advantage of the extended transition period for adopting new or revised accounting standards that have different effective dates for public and private companies until such time as those standards apply to private companies. |
Estimates | Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash and cash equivalents consist of all cash on hand, deposits and funds invested in available for sale securities with original maturities of three months or less at the time of purchase. At December 31, 2016, our cash was held primarily in checking and money market accounts. At December 31, 2015, our cash was held primarily in checking accounts. |
Accounts Receivable | Accounts Receivable The majority of our accounts receivable and revenues are from commercial insurance payers and government payers, such as Medicare, the Veterans Administration and Medicaid. Accounts receivable are carried net of allowances for estimated non-receipt of patient co-payment and deductible obligations and allowances for uncollectible accounts. The allowance for estimated non-receipt of co-payment reimbursements and for uncollectible accounts was $2.6 million and $2.0 million as of December 31, 2016 and 2015, respectively. We believe all accounts receivable in excess of the allowance are fully collectible. We do not accrue interest on a majority of the past due accounts receivable. We determine when accounts become past due on a customer by customer basis. If accounts receivables in excess of the provided allowance are determined uncollectible, the allowance for uncollectible accounts is adjusted as appropriate in the quarter that determination is made, and accounts receivable are written off after all collection efforts have failed. A portion of our claims to Medicare are initially denied, and enter the appeals process, where many are ultimately reviewed by an Administrative Law Judge. After final adjudication of all claims, approximately 90% of the claims submitted are approved (this is on a number of claims, not a dollars claimed, basis across all our products). The appeals process can be lengthy, lasting more than a year in most cases. Accordingly, we classify a portion of our Medicare accounts receivable as non-current based on our experience with Medicare collections. We had accounts receivable from three insurance companies representing approximately 27%, 16% and 8% of accounts receivable as of December 31, 2016. We had accounts receivable from three insurance companies representing approximately 26%, 18% and 7% of accounts receivable as of December 31, 2015. Revenues from these insurance companies accounted for 28%, 12%, and 12% of our total revenues for the year ended December 31, 2016 and 28%, 13% and 11% for the year ended December 31, 2015. Accounts receivable include amounts due from Medicare totaling $3.8 million and $4.3 million relating to Flexitouch System sales to patients as of December 31, 2016 and 2015, respectively, that are waiting insurance approval. We estimate the portion of these accounts receivable for which we expect to receive authorization and payment based on our reimbursement history from Medicare. We classified $2.8 million and $2.0 million of this receivable as of December 31, 2016 and 2015, respectively, as non-current as we do not expect these claims will be paid within the next twelve months due to delays with the Administrative Law Judge appeal process. On September 3, 2015, we entered into a settlement agreement with the Centers for Medicare and Medicaid Services for 247 claims, representing approximately $1.5 million of original claims based on the Medicare allowable rates, in which we had submitted a request for an Administrative Law Judge hearing in 2013. The settlement entitled us to receive a payment of approximately $0.9 million. We received this full amount during the fourth quarter of 2015. The settlement resulted in a reduction in the fourth quarter of 2015 of $0.8 million in accounts receivable for shipment of products to patients covered by Medicare. The settlement was part of a pilot program, facilitated by the Office of Medicare Hearings and Appeals, to address a backlog of overdue claims awaiting Administrative Law Judge adjudication. Because the settlement was part of a pilot program, we cannot predict whether we will be able to conclude future settlements with Medicare or achieve settlements on similar terms. Any future settlement of claims for amounts less than the corresponding amounts receivable would result in a write off. The reserves for uncollectible co-payment reimbursements and doubtful accounts were as follows: Year Ended December 31, (In thousands) 2016 2015 Beginning balance $ $ Accounts receivable provision Write-offs Ending balance $ $ |
Advertising | Advertising Advertising costs are charged to operations when incurred. Advertising expense was $57,000, $52,000 and $23,000 for the years ended December 31, 2016, 2015 and 2014, respectively. |
Research and Development Costs | Research and Development Costs We expense research and development costs as incurred, including expenses associated with clinical research studies and development. |
Shipping and Handling Costs | Shipping and Handling Costs We do not charge any shipping and handling costs to our customers and the shipping and handling costs incurred are included in cost of goods sold. |
Product Warranty | Product Warranty We provide a warranty for our products against defects in material and workmanship for a period of one to five years on garments and one to two years on controllers. We record a liability for future warranty claims at the time of sale for the warranty period offered to a customer. If the assumptions used in calculating the provision were to materially change, resulting in more defects than anticipated, an additional provision may be required. The warranty reserve was as follows: Year Ended December 31, (In thousands) 2016 2015 Beginning balance $ $ Warranty provision Processed warranty claims Ending balance $ $ Accrued warranty reserve, current $ $ Accrued warranty reserve, long-term — Total accrued warranty reserve $ $ |
Inventories | Inventories Inventories are valued at the lower of cost (first-in, first-out method) or market, and consisted of the following: As of December 31, (In thousands) 2016 2015 Finished goods $ $ Component parts and work-in-process Total inventories $ $ |
Property and Equipment | Property and Equipment Property and equipment are stated at cost and are being depreciated using the straight-line method over their estimated useful lives of three to five years and leasehold improvements are depreciated over the remaining life of the building lease agreement. Property and equipment consisted of the following: As of December 31, (In thousands) 2016 2015 Equipment $ $ Leasehold improvements Tooling Furniture and fixtures Subtotal Less: accumulated depreciation Property and equipment, net $ $ Major expenditures for property and equipment are capitalized. Maintenance, repairs, and minor renewals are expensed as incurred. When assets are retired or otherwise disposed of, their costs and related accumulated depreciation are removed from the accounts and resulting gains or losses are included in income. Depreciation expense was $0.6 million, $0.5 million and $0.4 million for the years ended December 31, 2016, 2015 and 2014, respectively. |
Deferred Offering Costs | Deferred Offering Costs Deferred offering costs, primarily consisting of legal, accounting and other direct fees and costs relating to the initial public offering were initially capitalized and then reclassified to stockholders’ equity at the conclusion of our initial public offering on August 2, 2016. There was $1.3 million in deferred offering costs capitalized as of December 31, 2015 in other non-current assets on the consolidated balance sheet. There were no deferred offering costs capitalized as of December 31, 2016. |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets We review long-lived assets, including property and equipment and patents, for impairment whenever events or changes in business circumstances indicate that the carrying amount of an asset may not be fully recoverable. We will assess long-lived assets used in operations for impairment indicators which includes when undiscounted cash flows estimated to be generated by those assets are less than the assets’ carrying amount. To date, we have recorded no such losses other than the write-off of various assets acquired in the ACTitouch transaction. |
Revenue Recognition | Revenue Recognition We recognize revenue when persuasive evidence of a sales arrangement exists, delivery of product has occurred through the transfer of title and risks of reward of ownership, the selling price is fixed or determinable and collectability is reasonably assured. We distribute our products directly to patients. For any of our products sold to patients covered by private payers, such as commercial insurance companies, we recognize revenues from such sales upon shipment of our products. A product is not shipped until we have received a prescription from a physician for our products and, as applicable, receipt of prior authorization from payers. At shipment, we invoice the payer for the total product price and we recognize revenue as a percentage of the invoice based on the policies and payment history of the applicable payer, net of estimated uncollectible patient copayments. The payment history of the applicable payer is drawn from our actual payment experience over the past year. Any differences in payments received as compared to our estimates are recognized in the period in which we actually receive payment for the product. Over time, we adjust the ultimate collection estimates to reflect these differences. After the insurance payer has remitted payment, we separately invoice the patient for their portion of the payment obligation, such as copayments and deductibles. For our products sold to Medicare patients, we recognize revenues from such sales upon shipment of our products, which can occur only after we have received a prescription from a physician and all applicable Medicare documentation is obtained. For Flexitouch System sales, we estimate the revenue on each shipment to a Medicare patient as a percentage of the total invoice based on collection history. While we have contracted rates with Medicare, to the extent any claims for reimbursement are denied, we will recognize any necessary adjustments in the period for which the adjustment is made or can be estimated. |
Net Income (Loss) per Share Attributable to Common Stockholders | Net Income (Loss) per Share Attributable to Common Stockholders For the reporting periods prior to our initial public offering, we used the two-class method to compute net income (loss) per common share attributable to common stockholders because we had issued securities, other than common stock, that contractually entitled the holders to participate in our dividends and earnings prior to our initial public offering. The two-class method requires earnings for the period to be allocated between common stock and participating securities based upon their respective rights to receive distributed and undistributed earnings. All series of our convertible preferred stock were considered participating securities. Under the two-class method, for periods with net income, basic net income per share attributable to common stockholders is computed by dividing the net income attributable to common stockholders by the weighted-average number of shares of common stock outstanding during the period. Diluted net income per share attributable to common stockholders is computed by dividing the net income attributable to common stockholders by the weighted-average number of shares of common stock and dilutive potential shares of common stock outstanding during the period. Net income attributable to common stockholders is computed by subtracting from net income the portion of current year earnings that the participating securities would have been entitled to receive pursuant to their dividend rights had all of the year’s earnings been distributed. No such adjustment to earnings is made during periods with a net loss, as the holders of the participating securities have no obligation to fund losses. |
Income Taxes | Income Taxes Income taxes are accounted for under the liability method. Deferred income taxes are provided for temporary differences between the financial reporting and the tax bases of assets and liabilities. If we determine in the future that it is more likely than not that we will not realize all or a portion of the deferred tax assets, we will record a valuation allowance in the period the determination is made (see Note 8). Changes in tax rates are reflected in the tax provision as they occur. |
Stock-Based Compensation | Stock-Based Compensation The valuation of stock options involves the use of the Black-Scholes option-pricing model, which requires the input of highly subjective assumptions. The assumptions include the expected term of the option, the expected volatility of the price of our common stock, expected dividend yield and the risk-free interest rate. These estimates involve inherent uncertainties and the significant application of management’s judgment. If factors change and different assumptions are used, our stock-based compensation expense could be materially different in the future. We recognize compensation expense for these options on a straight-line basis over the requisite service period (see Note 7). |
Marketable Securities | Marketable Securities We determine the appropriate classification of our marketable securities as available-for-sale or held-to-maturity at the time of purchase and periodically reevaluates such classification. Debt securities are classified as held - to - maturity when we have the positive intent and ability to hold the securities to maturity. Debt securities for which we do not have the intent or ability to hold to maturity are classified as available-for-sale. Debt securities not classified as held-to-maturity and all equity securities are classified as available-for-sale and are reported at fair value, with unrealized gains and losses included in the determination of comprehensive income, a component of shareholders' equity. We review our available-for-sale securities for impairment to determine if the impairment is temporary or other-than-temporary. A temporary impairment charge results in an unrealized loss being recorded in other comprehensive income. Other-than-temporary impairments are recorded in net income in the period the impairment is determined to be other-than-temporary . Realized gains and losses on the sale of marketable securities are determined using the specific-identification method. |
Comprehensive Income | Comprehensive Income Comprehensive income reflects the change in equity of a business enterprise during a period from transactions and other events and circumstances from non-owner sources. Our comprehensive income represents net income adjusted for unrealized gains and losses on available-for-sale marketable securities. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements The JOBS Act provides that an "emerging growth company" can take advantage of the extended transition period provided in Section 7(a)(2)(B) of the Securities Act for complying with new or revised accounting standards. In other words, an "emerging growth company" can selectively delay the adoption of certain accounting standards until those standards would otherwise apply to private companies. We have elected to avail ourselves of this exemption and, as a result, our financial statements may not be comparable to the financial statements of issuers who are required to comply with the effective dates for new or revised accounting standards that are applicable to public companies. Section 107 of the JOBS Act provides that we can elect to opt out of the extended transition period at any time, which election is irrevocable. In May 2014, the Financial Accounting Standards Board (“FASB”), issued Accounting Standards Update (“ASU”) 2014-09, “ Revenue from Contracts with Customers .” The new section will replace Section 605, “ Revenue Recognition ,” and creates modifications to various other revenue accounting standards for specialized transactions and industries. The section is intended to conform revenue accounting principles with a concurrently issued International Financial Reporting Standards to reconcile previously differing treatment between U.S. practices and those of the rest of the world and to enhance disclosures related to disaggregated revenue information. The updated guidance is effective for interim and annual reporting periods beginning on or after December 15, 2018, for private companies; this effective date is applicable for us due to the JOBS Act exemption described above. Therefore, we plan to further evaluate the timing and anticipated impact of the adoption of this updated guidance on our consolidated financial statements in future periods. In November 2015, the FASB issued ASU 2015-l7, “ Income Taxes: Balance Sheet Classification of Deferred Taxes ,” which requires entities to present deferred tax assets and deferred tax liabilities as noncurrent in a classified balance sheet. The ASU is effective for annual periods beginning after December l5, 20l7, and interim periods within annual periods beginning after December 15, 2018. Early adoption is permitted for all entities. We elected to adopt this new standard in the fourth quarter of 2016. In February 2016, the FASB issued ASU 2016-02, “ Leases ” (Topic 842), which supersedes the existing guidance for lease accounting, “ Leases” (Topic 840). ASU 2016-02 requires lessees to recognize a lease liability and a right-of-use asset for all leases. Lessor accounting remains largely unchanged. The amendments in this ASU are effective for interim and annual periods beginning after December 15, 2019 for private companies; this effective date is applicable to us due to the JOBS Act exemption described above. Early adoption is permitted for all entities. ASU 2016-02 requires a modified retrospective approach for all leases existing at, or entered into after the date of initial adoption, with an option to elect to use certain transition relief. We plan to further evaluate the timing and anticipated impact of the adoption of this ASU on our consolidated financial statements in future periods. In March 2016, the FASB issued ASU 2016-09, “ Improvements to Employee Share-Based Payment Accounting ,” which simplifies several aspects of the accounting for employee share-based payment transactions, including the accounting for income taxes and statutory tax withholding requirements and classification within the statement of cash flows. The ASU is effective for fiscal years beginning after December 15, 2016. We elected to adopt this new standard in the fourth quarter of 2016, effective as of January 1, 2016. In June 2016, the FASB issued ASU No. 2016-13, “ Financial Instruments — Credit Losses ,” to require the measurement of expected credit losses for financial instruments held at the reporting date based on historical experience, current conditions and reasonable forecasts. The ASU is effective for interim and annual periods beginning after December 15, 2020, for private companies; this effective date is applicable to us due to the JOBS Act exemption described above. Therefore, we plan to further evaluate the timing and anticipated impact of the adoption of this ASU on our consolidated financial statements in future periods. In August 2016, the FASB issued ASU No. 2016-15, “ Statement of Cash Flows (Topic 230) — Classification of Certain Cash Receipts and Cash Payments ,” to provide clarity on how certain cash receipt and cash payment transactions are presented and classified within the statement of cash flows. The ASU is effective for interim and annual periods beginning after December 15, 2018, for private companies; this effective date is applicable for us due to the JOBS Act exemption described above. Therefore, we plan to further evaluate the timing and anticipated impact of the adoption of this ASU on our consolidated financial statements in future periods. |
Summary of Significant Accoun21
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Summary of Significant Accounting Policies | |
Schedule of reserves for uncollectible co-payment reimbursements and doubtful accounts | Year Ended December 31, (In thousands) 2016 2015 Beginning balance $ $ Accounts receivable provision Write-offs Ending balance $ $ |
Schedule of warranty reserves | Year Ended December 31, (In thousands) 2016 2015 Beginning balance $ $ Warranty provision Processed warranty claims Ending balance $ $ Accrued warranty reserve, current $ $ Accrued warranty reserve, long-term — Total accrued warranty reserve $ $ |
Schedule of inventories | As of December 31, (In thousands) 2016 2015 Finished goods $ $ Component parts and work-in-process Total inventories $ $ |
Schedule of components of property and equipment | As of December 31, (In thousands) 2016 2015 Equipment $ $ Leasehold improvements Tooling Furniture and fixtures Subtotal Less: accumulated depreciation Property and equipment, net $ $ |
Marketable Securities (Tables)
Marketable Securities (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Marketable Securities. | |
Schedule of marketable securities | December 31, 2016 Unrealized Unrealized (In thousands) Cost Gains Losses Fair Value U.S. government and agency obligations $ $ $ $ Corporate debt securities and certificates of deposit — Marketable securities $ $ $ $ |
Patent Costs, Net (Tables)
Patent Costs, Net (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Patent Costs, Net | |
Schedule of finite lived intangible assets | As of (In thousands) 2016 2015 Patents $ $ Less: accumulated amortization Net patents $ $ |
Schedule of future amortization expense | (In thousands) 2017 $ 2018 2019 2020 2021 Thereafter Total $ |
Accrued Expenses (Tables)
Accrued Expenses (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Accrued Expenses | |
Schedule of Accrued Expenses | As of (In thousands) 2016 2015 Accrued warranty $ $ Accrued clinical Other Total $ $ |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Commitments and Contingencies | |
Schedule of future minimum lease payments | Future base minimum lease payments for all lease obligations are expected to be as follows for the years ending December 31: Computer/Office Fleet Car (In thousands) Buildings Equipment Program Total 2017 $ $ $ $ 2018 — 2019 — 2020 — 2021 — — Thereafter — — — — Total $ $ $ $ |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Stockholders' Equity | |
Schedule of allocation of stock-based compensation expense | Year Ended December 31, (In thousands) 2016 2015 2014 Cost of goods sold $ $ $ Sales and marketing expenses Research and development expenses — — Reimbursement, general and administrative expenses Total stock-based compensation expense $ $ $ |
Schedule of estimated weighted-average fair values and assumptions for stock options granted | Year Ended December 31, 2016 2015 2014 Expected term 6 years 6 years 6 years Expected volatility Risk-free interest rate Expected dividend yield Weighted-average fair value on the date of grant $ $ $ |
Schedule of stock option activity | Weighted A verage Weighted A verage Aggregate Options Exercise Price Remaining Intrinsic (In thousands except share, per share and years data) Outstanding Per Share 1 Contractual Life Value 2 Balance at December 31, 2013 $ 6.4 years $ Granted Exercised Forfeited Balance at December 31, 2014 6.2 years Granted Exercised Forfeited Balance at December 31, 2015 5.8 years Granted Exercised Forfeited Balance at December 31, 2016 5.5 years Options exercisable at December 31, 2016 $ 4.5 years $ (1) The exercise price of each option granted during the periods shown was equal to the market price of the underlying stock on the date of grant. The aggregate intrinsic value of options exercised represents the difference between the exercise price of the option and the closing stock price of our common stock on the date of exercise. The aggregate intrinsic value of options outstanding represents the difference between the exercise price of the option and the closing stock price of our common stock on the last day of the year. |
Schedule of Nonvested Share Activity | As of December 31, Number of: 2016 2015 Non-vested options beginning of the year Non-vested options end of the year Vested options As of December 31, Weighted-average grant date fair value of: 2016 2015 Non-vested options beginning of the year $ $ Non-vested options end of the year Vested options Forfeited options |
Schedule of stock-settled restricted stock unit activity | Weighted Aggregate Units Average Grant Intrinsic (In thousands except share and per share data) Outstanding Date Fair Value Value 2 Balance at December 31, 2015 — $ — Granted Vested 1 Cancelled Balance at December 31, 2016 $ (1) The restricted stock units shown as vested during the year represent grants to non-employee directors in lieu of annual retainer installments, which restricted stock units were fully vested upon grant and represent the right to receive one share of common stock upon the earlier of the director’s termination of service as a director of ours or the occurrence of a change in control of us. The shares of common stock underlying these restricted stock units are not issued or outstanding. Intrinsic value of stock-settled restricted stock units vested was based on our closing stock price on the last trading day of the year. |
Schedule of stock warrants outstanding | Weighted-Average Weighted-Average Remaining Number Exercise Contractual Outstanding Price Life Warrants outstanding — December 31, 2013 $ Exercised — — Expired — — Warrants outstanding — December 31, 2014 Exercised Expired — Warrants outstanding — December 31, 2015 Exercised Expired — — Warrants outstanding — December 31, 2016 0.56 years |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Income Taxes | |
Schedule of provision for income tax expense | Year Ended December 31, (In thousands) 2016 2015 2014 Current income taxes $ $ $ Deferred income taxes Total provision for income taxes $ $ $ |
Schedule of components of the Company’s deferred tax assets | As of December 31, (In thousands) 2016 2015 2014 Deferred tax assets: Net operating loss carryforwards $ $ — $ Accounts receivable and inventory reserves Warranty reserves Intangible assets Accrued liabilities Stock-based compensation — — Other Total deferred tax assets $ $ $ Deferred tax liabilities: Depreciation Total deferred tax liabilities $ $ $ Net deferred tax assets $ $ $ |
Schedule of reconciliation of income tax expense (benefit) | Year Ended December 31, (In thousands) 2016 2015 2014 Tax expense at statutory rate % % % Other Permanent differences Meals & Entertainment — State income taxes, net of federal benefit State tax rate adjustment — Deferred true-up adjustment — — Excess benefit on non-qualified stock options — — Other and uncertain tax positions Net effective rate % % % |
Accumulated Other Comprehensi28
Accumulated Other Comprehensive Loss (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Accumulated Other Comprehensive Loss. | |
Schedule of accumulated other comprehensive loss | Accumulated Available- Other for-Sale Comprehensive (In thousands) Securities Loss Balances at December 31, 2013 $ — $ — Other comprehensive income (loss) — — Balances at December 31, 2014 — — Other comprehensive income (loss) — — Balances at December 31, 2015 — — Other comprehensive income (loss) Balances at December 31, 2016 $ $ |
Net Income (Loss) Per Share A29
Net Income (Loss) Per Share Attributable to Common Stockholders (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Net Income (Loss) Per Share Attributable to Common Stockholders | |
Schedule of computation of the basic and diluted net income (loss) per share | Year Ended December 31, (In thousands, except share and per share data) 2016 2015 2014 Net income $ $ $ Convertible preferred stock dividends Allocation of undistributed earnings to preferred stockholders — — Net income (loss) attributable to common stockholders $ $ $ Weighted average shares outstanding Effect of common stock options, warrants, restricted stock units and employee stock purchase plan shares — Weighted-average shares used to compute diluted net income (loss) per share Net income (loss) per share - Basic $ $ $ Net income (loss) per share - Diluted $ $ $ |
Schedule of potentially dilutive securities outstanding | Year Ended December 31, 2016 2015 2014 Convertible preferred stock outstanding — Restricted stock units — — — Common stock options Employee stock purchase plan shares — — — Common stock warrants — Total |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Fair Value Disclosures | |
Schedule of fair value measurements for marketable securities | Fair Value Measurements at December 31, 2016 Using: Quoted Prices in Active Significant Markets for Other Significant Identical Observable Unobservable Assets Inputs Inputs (In thousands) (Level 1) (Level 2) (Level 3) Total Recurring Fair Value Measurements: Currency $ $ — $ — $ Money market mutual funds U.S. government and agency obligations — Corporate debt securities and certificates of deposit — — Total $ $ $ — $ |
Quarterly Fiancial Information
Quarterly Fiancial Information (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Quarterly Financial Information (Unaudited) | |
Schedule of quarterly financial information | The adjustment is due to the retrospective application of ASU 2016-09 as further discussed in Note 8 – Income tax above. Three Months Ended Mar. 31, 2016 Jun. 30, 2016 Sep. 30, 2016 As As As As As As (In thousands, except per share data) Reported Adjusted (2) Reported Adjusted (2) Reported Adjusted (2) Dec. 31, 2016 Revenues $ $ $ $ $ $ $ Gross margin Income (loss) from operations Net income (loss) attributable to common stockholders Net income (loss) per share - Basic (1) Net income (loss) per share - Diluted (1) Three Months Ended (In thousands, except per share data) Mar. 31, 2015 Jun. 30, 2015 Sep. 30, 2015 Dec. 31, 2015 Revenues $ $ $ $ Gross margin Income (loss) from operations Net income (loss) attributable to common stockholders Net income (loss) per share - Basic (1) Net income (loss) per share - Diluted (1) (1) The summation of quarterly per share amounts may not equal the calculation for the full year, as each quarterly calculation is performed discretely. As adjusted amounts include the impact of adopting ASU 2016-09, “ Improvements to Employee Share-Based Payment Accounting ,” which simplifies several aspects of the accounting for employee share-based payment transactions, including the accounting for income taxes and statutory tax withholding requirements and classification within the statement of cash flows. The ASU is effective for fiscal years beginning after December 15, 2016. We elected to adopt this new standard in the fourth quarter of 2016, effective as of January 1, 2016 . |
Summary of Significant Accoun32
Summary of Significant Accounting Policies (Details) | Aug. 02, 2016USD ($) | Jun. 30, 2016 | Sep. 30, 2015USD ($) | Dec. 31, 2016USD ($)item | Dec. 31, 2015USD ($)item | Dec. 31, 2014USD ($) | Dec. 31, 2016USD ($)$ / sharesshares | Sep. 03, 2016USD ($)item | Dec. 31, 2015USD ($)$ / sharesshares | Jul. 21, 2006$ / sharesshares |
Basis of Presentation | ||||||||||
Common shares authorized | shares | 300,000,000 | 14,184,175 | 8,900,000 | |||||||
Common stock, par value (in dollars per share) | $ / shares | $ 0.001 | $ 0.001 | $ 0.001 | |||||||
Reverse stock split ratio | 0.354604396 | |||||||||
Proceeds from Issuance Initial Public Offering | $ 41,200,000 | |||||||||
Accounts Receivable | ||||||||||
Allowance for estimated non-receipt of co-payment reimbursements and for uncollectible accounts | $ 1,900,000 | 2,000,000 | $ 1,900,000 | $ 1,900,000 | $ 2,568,000 | $ 2,000,000 | ||||
Percentage of claims | 90.00% | |||||||||
Medicare accounts receivable | $ 3,800,000 | 4,300,000 | ||||||||
Medicare Accounts Receivable Non Current | 2,823,000 | 2,039,000 | ||||||||
Number of claims for which settlement agreement is made | item | 247 | |||||||||
Value of claims for which settlement agreement is made | $ 1,500,000 | |||||||||
Amount receivable on the settlement agreement | 900,000 | |||||||||
Reduction in accounts receivable | 800,000 | |||||||||
Increase (Decrease) in Accounts Receivable | 1,420,000 | 509,000 | 4,671,000 | |||||||
Reserves for uncollectible co-payment reimbursements and doubtful accounts | ||||||||||
Beginning balance | 1,900,000 | 2,000,000 | 1,900,000 | |||||||
Provision charged against revenues | 7,087,000 | 5,973,000 | ||||||||
Write- offs | 6,519,000 | 5,873,000 | ||||||||
Ending balance | 2,568,000 | 2,000,000 | 1,900,000 | |||||||
Advertising | ||||||||||
Advertising Expense | 57,000 | 52,000 | 23,000 | |||||||
Product Warranty | ||||||||||
Beginning balance | 250,000 | 360,000 | 250,000 | |||||||
Warranty Provision | 766,000 | 262,000 | ||||||||
Processed warranty claims | (333,000) | (152,000) | ||||||||
Ending balance | 793,000 | 360,000 | 250,000 | |||||||
Accrued warranty reserve, current | 290,000 | 360,000 | ||||||||
Accrued warranty reserve, long-term | 503,000 | |||||||||
Total accrued warranty reserve | 793,000 | 360,000 | ||||||||
Inventories | ||||||||||
Finished goods | 2,884,000 | 2,503,000 | ||||||||
Component parts and work- in- process | 3,670,000 | 3,278,000 | ||||||||
Total inventories | 6,554,000 | 5,781,000 | ||||||||
Property and Equipment | ||||||||||
Subtotal | 4,362,000 | 3,499,000 | ||||||||
Less: accumulated depreciation | (2,799,000) | (2,153,000) | ||||||||
Property, Plant and Equipment, Net | 1,563,000 | 1,346,000 | ||||||||
Depreciation expense | 600,000 | 500,000 | $ 400,000 | |||||||
Deferred Offering Costs | ||||||||||
Deferred Offering Costs | 0 | 1,300,000 | ||||||||
Estimated weighted-average fair values and assumptions for stock options granted | ||||||||||
Compensation expense | $ 148,000 | $ 1,889,000 | $ 316,000 | |||||||
Equipment | ||||||||||
Property and Equipment | ||||||||||
Subtotal | 2,322,000 | 1,797,000 | ||||||||
Leasehold improvements | ||||||||||
Property and Equipment | ||||||||||
Subtotal | 501,000 | 439,000 | ||||||||
Tooling | ||||||||||
Property and Equipment | ||||||||||
Subtotal | 1,216,000 | 960,000 | ||||||||
Furniture and Fixtures | ||||||||||
Property and Equipment | ||||||||||
Subtotal | $ 323,000 | $ 303,000 | ||||||||
Minimum | ||||||||||
Property and Equipment | ||||||||||
Useful life | 3 years | |||||||||
Maximum | ||||||||||
Property and Equipment | ||||||||||
Useful life | 5 years | |||||||||
Garments | Minimum | ||||||||||
ProductWarranty | ||||||||||
Product Warranty | 1 year | |||||||||
Garments | Maximum | ||||||||||
ProductWarranty | ||||||||||
Product Warranty | 5 years | |||||||||
Controllers | Minimum | ||||||||||
ProductWarranty | ||||||||||
Product Warranty | 1 year | |||||||||
Controllers | Maximum | ||||||||||
ProductWarranty | ||||||||||
Product Warranty | 2 years | |||||||||
Accounts Receivable | Customer Concentration Risk | ||||||||||
Accounts Receivable | ||||||||||
Number of insurance companies | item | 3 | |||||||||
Accounts Receivable | Credit Concentration Risk | ||||||||||
Accounts Receivable | ||||||||||
Number of insurance companies | item | 3 | |||||||||
Accounts Receivable | Insurance Company One | ||||||||||
Accounts Receivable | ||||||||||
Percentage of concentration | 27.00% | 26.00% | ||||||||
Accounts Receivable | Insurance Company Two | ||||||||||
Accounts Receivable | ||||||||||
Percentage of concentration | 16.00% | 18.00% | ||||||||
Accounts Receivable | Insurance Company Three | ||||||||||
Accounts Receivable | ||||||||||
Percentage of concentration | 8.00% | 7.00% | ||||||||
Revenue | Customer Concentration Risk | ||||||||||
Accounts Receivable | ||||||||||
Percentage of concentration | 11.00% | |||||||||
Revenue | Insurance Company One | Customer Concentration Risk | ||||||||||
Accounts Receivable | ||||||||||
Percentage of concentration | 28.00% | |||||||||
Revenue | Insurance Company One | Credit Concentration Risk | ||||||||||
Accounts Receivable | ||||||||||
Percentage of concentration | 28.00% | |||||||||
Revenue | Insurance Company Two | Customer Concentration Risk | ||||||||||
Accounts Receivable | ||||||||||
Percentage of concentration | 13.00% | |||||||||
Revenue | Insurance Company Two | Credit Concentration Risk | ||||||||||
Accounts Receivable | ||||||||||
Percentage of concentration | 12.00% | |||||||||
Revenue | Insurance Company Three | Credit Concentration Risk | ||||||||||
Accounts Receivable | ||||||||||
Percentage of concentration | 12.00% | |||||||||
IPO | ||||||||||
Basis of Presentation | ||||||||||
Expense Relating To Initial Public Offering | $ 2,900,000 | |||||||||
Proceeds from Issuance Initial Public Offering | $ 35,400,000 |
Marketable Securities (Details)
Marketable Securities (Details) | 12 Months Ended |
Dec. 31, 2016USD ($) | |
Marketable Securities | |
Cost | $ 11,011,000 |
Unrealized Gains | 2,000 |
Unrealized Losses | 19,000 |
Fair Value | 10,994,000 |
Value of the marketable debt securities at unrealized gain position | 4,000,000 |
Aggregate gains on the marketable debt securities which are at unrealized gain position | 2,000 |
Value of the marketable debt securities at unrealized loss position, for less than 12 months | 7,000,000 |
Aggregate losses on the marketable debt securities which are at unrealized loss position, for less than 12 months | 19,000 |
Unrealized holding loss on marktable debt securities in other comprehensive loss | $ 17,000 |
Maximum | |
Marketable Securities | |
Maturity period of the marketable debt securities | 24 months |
Minimum | |
Marketable Securities | |
Maturity period of the marketable debt securities | 12 months |
US government and agency obligations | |
Marketable Securities | |
Cost | $ 9,011,000 |
Unrealized Gains | 2,000 |
Unrealized Losses | 17,000 |
Fair Value | 8,996,000 |
Corporate debt securities and certificate of deposit | |
Marketable Securities | |
Cost | 2,000,000 |
Unrealized Losses | 2,000 |
Fair Value | $ 1,998,000 |
Patent Costs, Net (Details)
Patent Costs, Net (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Finite-Lived Intangible Assets | |||
Amortization expense | $ 300 | $ 300 | $ 300 |
Future Amortization | |||
Weighted average remaining amortization period | 13 years 7 months 6 days | ||
Patents | |||
Finite-Lived Intangible Assets | |||
Patents | $ 3,462 | 3,403 | |
Less: accumulated amortization | (1,068) | (914) | |
Net patents | 2,394 | 2,489 | |
Future Amortization | |||
2,017 | 249 | ||
2,018 | 249 | ||
2,019 | 249 | ||
2,020 | 249 | ||
2,021 | 249 | ||
Thereafter | 1,149 | ||
Net patents | $ 2,394 | $ 2,489 |
Accrued Expenses (Details)
Accrued Expenses (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Accrued Expenses | ||
Accrued warranty reserve, current | $ 290 | $ 360 |
Accrued clinical | (45) | (130) |
Other | 858 | 426 |
Accrued expenses, total | $ 1,193 | $ 916 |
Line of Credit _ Bank (Details)
Line of Credit — Bank (Details) - Line of Credit - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Sep. 30, 2016 | Dec. 31, 2015 | |
Line of Credit Facility LineOfCreditFacility [Line Items] | |||
Maximum borrowing capacity | $ 2,000 | ||
Outstanding line of credit | $ 0 | $ 0 | |
Prime Rate | |||
Line of Credit Facility LineOfCreditFacility [Line Items] | |||
Variable interest rate | 3.75% |
Commitments and Contingencies37
Commitments and Contingencies (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Operating Leased Assets OperatingLeasedAssets [Line Items] | |||
Rent expense | $ 1,000 | $ 900 | $ 800 |
2,017 | 1,036 | ||
2,018 | 732 | ||
2,019 | 744 | ||
2,020 | 753 | ||
2,021 | 525 | ||
Total | 3,790 | ||
Building | |||
Operating Leased Assets OperatingLeasedAssets [Line Items] | |||
2,017 | 696 | ||
2,018 | 714 | ||
2,019 | 733 | ||
2,020 | 752 | ||
2,021 | 525 | ||
Total | 3,420 | ||
Computer/Office Equipment | |||
Operating Leased Assets OperatingLeasedAssets [Line Items] | |||
2,017 | 20 | ||
2,018 | 18 | ||
2,019 | 11 | ||
2,020 | 1 | ||
Total | 50 | ||
Fleet Car Program | |||
Operating Leased Assets OperatingLeasedAssets [Line Items] | |||
2,017 | 320 | ||
Total | $ 320 |
Commitments and Contingencies -
Commitments and Contingencies - Major Vendors (Details) $ in Millions | 12 Months Ended | |||
Dec. 31, 2016item | Dec. 31, 2015item | Jan. 31, 2017USD ($) | Feb. 29, 2016USD ($) | |
Concentration Risk [Line Items] | ||||
Number of vendors | item | 3 | 3 | ||
Purchase commitments | ||||
Purchase commitments | $ | $ 7.8 | $ 4.9 | ||
Purchases | Vendor | ||||
Concentration Risk [Line Items] | ||||
Accounts Receivable (in percentage) | 37.00% | 45.00% |
Commitments and Contingencies39
Commitments and Contingencies - Deferred Compensation (Details) - Certain Officers | 12 Months Ended |
Dec. 31, 2016 | |
Minimum | |
Deferred Compensation Arrangement with Individual, Share-based Payments | |
Severance term (in months) | 9 months |
Number of months of bonus payable | 9 months |
Maximum | |
Deferred Compensation Arrangement with Individual, Share-based Payments | |
Severance term (in months) | 15 months |
Number of months of bonus payable | 15 months |
Commitments and Contingencies40
Commitments and Contingencies - Retirement Plan (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
401(k) | |||
Defined Contribution Plan Disclosure | |||
Discretionary contributions | $ 0.2 | $ 100,000 | $ 100,000 |
Stockholders' Equity - Series A
Stockholders' Equity - Series A & B Preferred Stock (Details) | Aug. 02, 2016USD ($)$ / sharesshares | Oct. 31, 2012USD ($)item$ / sharesshares | Dec. 31, 2016USD ($)$ / sharesshares | Dec. 31, 2009USD ($)item$ / sharesshares |
Preferred stock | ||||
Shares issued | shares | 0 | |||
Undeclared cumulative preferred dividends | $ 8,200,000 | |||
Stock Issued During Period Prior To Completion Of Initial Offering Shares New Issues | shares | 2,354,323 | |||
Conversion of Stock, Shares Converted | shares | 5,924,453 | |||
IPO | ||||
Preferred stock | ||||
Share price (in dollars per share) | $ / shares | $ 10 | |||
Number of shares of common stock sold | shares | 4,120,000 | |||
Series B Preferred Stock | ||||
Preferred stock | ||||
Gross proceeds from issuance | $ 10,400,000 | |||
Shares issued | shares | 2,733,468 | |||
Share price (in dollars per share) | $ / shares | $ 3.80 | |||
Dividend rate (as a percent) | 6.00% | |||
Undeclared cumulative preferred dividends | $ 2,600,000 | |||
Automatic redemption price in the event of a public offering, minimum (in dollars per share) | $ / shares | $ 11.42 | |||
Minimum proceeds from sale of stock, as threshold for automatic conversion | $ 30,000,000 | |||
Number of embedded features | item | 2 | |||
Stock Issued During Period Required To Fund Stock Dividends Shares New Issues | shares | 956,842 | |||
Preferred stock to common stock conversion ratio | 1 | |||
Series A Preferred Stock | ||||
Preferred stock | ||||
Gross proceeds from issuance | $ 13,000,000 | |||
Shares issued | shares | 3,061,488 | |||
Share price (in dollars per share) | $ / shares | $ 4.23 | |||
Dividend rate (as a percent) | 6.00% | |||
Preferred stock, antidilution trigger, price per share | $ 4.23 | |||
Number of shares issuable under terms of antidilution clause | $ 83,972 | |||
Automatic redemption price in the event of a public offering, minimum (in dollars per share) | $ / shares | $ 11.42 | |||
Minimum proceeds from sale of stock, as threshold for automatic conversion | $ 30,000,000 | |||
Number of embedded features | item | 2 | |||
Accrued Cumulative Dividends | $ 8,200,000 | |||
Preferred stock to common stock conversion ratio | 0.9708 | |||
Payment of dividends | $ 100,000 |
Stockholders' Equity - Stock-Ba
Stockholders' Equity - Stock-Based Compensation General Information (Details) | Dec. 31, 2016shares |
2016 Plan | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of shares authorized | 4,800,000 |
Stockholders' Equity - Stock Op
Stockholders' Equity - Stock Options (Details) - USD ($) | Jul. 27, 2016 | Sep. 30, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Stock-based compensation, general disclosures | ||||||||||
Vesting period (in years) | 4 years | 1 year | ||||||||
Term (in years) | 10 years | 7 years | ||||||||
Stock-based compensation expense | $ 148,000 | $ 1,889,000 | $ 316,000 | |||||||
Dividends paid to date | $ 0 | |||||||||
Other information | ||||||||||
Options exercisable Number of Exercisable | 1,359,302 | 1,368,047 | ||||||||
Options exercisable, weighted-average exercise price | $ 1.06 | $ 1.18 | ||||||||
Weighted average remaining contractual life (in years) | 6 months 22 days | |||||||||
Number of: | ||||||||||
Non vested options beginning of the year | 623,143,000 | 472,401,000 | 623,143,000 | |||||||
Non-vested options end of the year | 496,997,000 | 472,401,000 | 623,143,000 | |||||||
Vested options | 251,968,000 | 304,995,000 | ||||||||
Weighted-average grant date fair value of: | ||||||||||
Non-vested options beginning of the year | $ 0.45 | $ 2.85 | $ 0.45 | |||||||
Non-vested options end of the year | 2.99 | 2.85 | $ 0.45 | |||||||
Vested options | 0.76 | 0.54 | ||||||||
Forfeited options | $ 2.71 | $ 3.30 | ||||||||
Number of Stock-Settled Restricted Stock Unit Awards Outstanding | ||||||||||
Granted (in shares) | 327,454 | |||||||||
Vested (in shares) | (1,726) | |||||||||
Cancelled (in shares) | (865) | |||||||||
Restricted stock unit awards outstanding at the end of the period (in shares) | 324,863 | |||||||||
Weighted Average Grant Date Fair Value Per Share | ||||||||||
Granted (in dollars per share) | $ 10.45 | |||||||||
Vested (in dollars per share) | 17.29 | |||||||||
Cancelled (in dollars per share) | 17.35 | |||||||||
Restricted stock unit awards outstanding at the end of the period (in dollars per share) | $ 10.39 | |||||||||
Restricted stock unit awards, Average Intrinsic Value | ||||||||||
Restricted stock unit awards, Average Intrinsic Value | $ 1,972 | |||||||||
Weighted average remaining contractual life (in years) | 6 months 22 days | |||||||||
Options exercisable Number of Exercisable | 1,359,302 | 1,368,047 | ||||||||
Options exercisable, weighted-average exercise price | $ 1.06 | $ 1.18 | ||||||||
Stock Warrants Number Outstanding | ||||||||||
Warrants outstanding beginning balance | 172,817 | 5,800 | 172,817 | 172,817 | ||||||
Exercised | 2,882 | 166,617 | ||||||||
Expired | 400 | |||||||||
Warrants outstanding ending balance | 2,918 | 5,800 | 172,817 | 172,817 | ||||||
Stock Warrants Weighted average exercise price | ||||||||||
Weighted average exercise price | $ 4.23 | $ 4.23 | $ 4.43 | $ 3.84 | ||||||
Exercised | $ 4.23 | $ 3.81 | ||||||||
Stock options | ||||||||||
Stock-based compensation, general disclosures | ||||||||||
Stock-based compensation expense | $ 1,500,000 | $ 100,000 | $ 100,000 | |||||||
Total grant date fair value of options vested during the period | $ 200,000 | $ 100,000 | $ 100,000 | |||||||
Total unrecognized pre-tax compensation expense related to nonvested stock option awards | $ 1,500,000 | |||||||||
Weighted-average period over which unrecognized compensation cost is expected to be recognized | 2 years 9 months 18 days | |||||||||
Estimated weighted-average fair values and assumptions for stock options granted | ||||||||||
Expected term | 6 years | 6 years | 6 years | |||||||
Expected volatility (as a percent) | 43.00% | 60.00% | 60.00% | |||||||
Risk-free interest rate (as a percent) | 1.00% | 2.00% | 2.00% | |||||||
Expected dividend yield (as a percent) | 0.00% | 0.00% | 0.00% | |||||||
Weighted average fair value per share of options granted (in dollars per share) | $ 4.43 | $ 1.91 | $ 0.47 | |||||||
Options | ||||||||||
Outstanding at beginning of period | 2,157,298,000 | 1,840,448,000 | 2,157,298,000 | 2,467,834,000 | ||||||
Granted | 305,236,000 | 169,501,000 | 156,558,000 | |||||||
Exercised | (253,138,000) | (428,856,000) | (399,903,000) | |||||||
Forfeited | (36,247,000) | (57,495,000) | (67,191,000) | |||||||
Outstanding at end of period | 1,856,299,000 | 1,840,448,000 | 2,157,298,000 | 2,467,834,000 | ||||||
Weighted Average Exercise Price ($/share) | ||||||||||
Outstanding at beginning of period | $ 0.87 | $ 1.18 | $ 0.87 | $ 0.79 | ||||||
Granted | 10.60 | 4.23 | 1.35 | |||||||
Exercised | 0.93 | 0.65 | 0.56 | |||||||
Forfeited | 5.34 | 2.26 | 0.85 | |||||||
Outstanding at end of period | $ 2.69 | $ 1.18 | $ 0.87 | $ 0.79 | ||||||
Other information | ||||||||||
Options exercisable Number of Exercisable | 1,359,302,000 | |||||||||
Options exercisable, weighted-average exercise price | $ 1.06 | |||||||||
Weighted average remaining contractual life (in years) | 5 years 6 months | 5 years 9 months 18 days | 6 years 2 months 12 days | 6 years 4 months 24 days | ||||||
Exercisable options, weighted-average remaining contractual life | 4 years 6 months | |||||||||
Options outstanding | $ 25,467,000 | $ 18,573,000 | $ 5,912,000 | $ 652,000 | ||||||
Options exercisable | 20,874,000 | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Intrinsic Value | $ 20,874,000 | |||||||||
Exercised | $ 2,447,000 | $ 4,569,000 | $ 161,000 | |||||||
Weighted average fair value per share of options granted (in dollars per share) | $ 4.43 | $ 1.91 | $ 0.47 | |||||||
Restricted stock unit awards, Average Intrinsic Value | ||||||||||
Number of option outstanding | 2,157,298,000 | 1,840,448,000 | 2,157,298,000 | 2,467,834,000 | 2,467,834,000 | 1,856,299,000 | 1,840,448,000 | 2,157,298,000 | 2,467,834,000 | |
Weighted average remaining contractual life (in years) | 5 years 6 months | 5 years 9 months 18 days | 6 years 2 months 12 days | 6 years 4 months 24 days | ||||||
Options Outstanding, weighted average exercise price | $ 0.87 | $ 1.18 | $ 0.87 | $ 0.79 | $ 0.79 | $ 2.69 | $ 1.18 | $ 0.87 | $ 0.79 | |
Options exercisable Number of Exercisable | 1,359,302,000 | |||||||||
Options exercisable, weighted-average exercise price | $ 1.06 | |||||||||
Restricted Stock Units | ||||||||||
Stock-based compensation, general disclosures | ||||||||||
Stock-based compensation expense | $ 700,000 | |||||||||
Weighted-average period over which unrecognized compensation cost is expected to be recognized | 2 years | |||||||||
Total unrecognized pre-tax compensation expense related to awards | $ 2,700,000 | |||||||||
Restricted Stock Units | Minimum | ||||||||||
Stock-based compensation, general disclosures | ||||||||||
Vesting period (in years) | 1 year | |||||||||
Restricted Stock Units | Maximum | ||||||||||
Stock-based compensation, general disclosures | ||||||||||
Vesting period (in years) | 3 years | |||||||||
Restricted Stock | ||||||||||
Stock-based compensation, general disclosures | ||||||||||
Stock-based compensation expense | $ 300,000 |
Stockholders' Equity - Stock-44
Stockholders' Equity - Stock-Based Compensation Expense (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | |
Stock-based compensation | |||
Allocated Share-based Compensation Expense | $ 148 | $ 1,889 | $ 316 |
Cost of goods sold | |||
Stock-based compensation | |||
Allocated Share-based Compensation Expense | 2 | 112 | 73 |
Sales and marketing | |||
Stock-based compensation | |||
Allocated Share-based Compensation Expense | 48 | 514 | 178 |
Research and development | |||
Stock-based compensation | |||
Allocated Share-based Compensation Expense | 36 | ||
Reimbursement, general and administrative | |||
Stock-based compensation | |||
Allocated Share-based Compensation Expense | $ 98 | $ 1,227 | $ 65 |
2016 Plan | |||
Stock-based compensation | |||
Shares reserved for issuance under the plan | 4,800,000 | ||
Shares available for future issuance | 4,180,831 | ||
Automatic annual increase to the number of shares reserved and available for issuance as a percentage of outstanding common stock (as a percent) | 5.00% | ||
Automatic annual increase to the number of shares reserved and available for issuance | 2,500,000 | ||
Increase in number of shares reserved and available for issuance | 841,686 | ||
Restricted Stock Units | |||
Stock-based compensation | |||
Allocated Share-based Compensation Expense | $ 700 | ||
Unrecognized stock-based compensation | |||
Unrecognized stock-based compensation expense, Restricted stock | $ 2,700 | ||
Unrecognized stock-based compensation expense, period for recognition | 2 years |
Stockholders' Equity - Employee
Stockholders' Equity - Employee Stock Purchase Plan (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | |
Class of Stock [Line Items] | |||
Allocated Share-based Compensation Expense | $ 148 | $ 1,889 | $ 316 |
Employee Stock Purchase Plan | |||
Class of Stock [Line Items] | |||
Purchase price of common stock under plan (as a percent) | 85.00% | ||
Offering period (in months) | 6 months | ||
Shares reserved | 1,600,000 | ||
Incremental share increase (as a percent) | 1.00% | ||
Incremental share increase (in shares) | 500,000 | ||
Increase in number of shares reserved and available for issuance | 168,337 | ||
Shares issued | 0 | ||
Allocated Share-based Compensation Expense | $ 400 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) | 12 Months Ended | |||||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | |
Income Tax Line Items | ||||||
Current income taxes | $ 2,042,000 | $ 1,012,000 | $ 167,000 | |||
Deferred income taxes | (611,000) | 852,000 | 1,558,000 | |||
Total Provision for income taxes | 1,431,000 | 1,864,000 | 1,725,000 | |||
Components of Deferred Tax Assets [Abstract] | ||||||
Net operating loss carryforwards | 156,000,000 | 874,000,000 | ||||
Accounts receivable and inventory reserves | 1,182,000,000 | 1,253,000,000 | 977,000,000 | |||
Warranty reserves | 285,000,000 | 128,000,000 | 100,000,000 | |||
Intangible assets | 837,000,000 | 810,000,000 | 886,000,000 | |||
Accrued liabilities | 97,000,000 | 181,000,000 | 362,000,000 | |||
Stock-based compensation | 410,000,000 | |||||
Other | 157,000,000 | 39,000,000 | 40,000,000 | |||
Total deferred tax assets | 3,124,000,000 | 2,411,000,000 | 3,239,000,000 | |||
Deferred tax liabilities: | ||||||
Depreciation | (339,000,000) | (243,000,000) | (219,000,000) | |||
Total deferred tax liabilities | (339,000,000) | (243,000,000) | (219,000,000) | |||
Net deferred tax assets | $ 2,785,000,000 | $ 2,168,000,000 | $ 3,020,000,000 | |||
Effective Income Tax Rate Reconciliation, Percent [Abstract] | ||||||
Tax expense at statutory rate | 34.00% | 34.00% | 34.00% | |||
Other Permanant differences | 5.60% | 3.60% | 3.90% | |||
Meals & Entertainment | 5.40% | 4.80% | ||||
State income taxes, net of federal benefit | 3.30% | 3.60% | 3.00% | |||
State tax rate adjustment | (0.30%) | 9.20% | ||||
Deferred true-up adjustment | (7.90%) | |||||
Excess benefit on non-qualified stock options | (8.00%) | |||||
Other and uncertain tax positions | 1.10% | 2.00% | 4.50% | |||
Net effective rate | 33.20% | 57.20% | 45.40% | |||
Favourable adjustments to tax expense on account of unrecorded tax benefits | $ 600,000 | $ 49,000 | $ 300,000 | |||
Minnesota | ||||||
Components of Deferred Tax Assets [Abstract] | ||||||
Net operating loss carryforwards | $ 2,400,000 |
Accumulated Other Comprehensi47
Accumulated Other Comprehensive Loss (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2016USD ($) | |
Accumulated Other Comprehensive Loss. | |
Other comprehensive income (loss), Available-for-Sale Securities | $ (11) |
Accumulated Other Comprehensive Loss, Available-for-Sale Securities, ending balance | (11) |
Other comprehensive income (loss) | (11) |
Accumulated Other Comprehensive Loss, Ending balance | $ (11) |
Net Income (Loss) Per Share A48
Net Income (Loss) Per Share Attributable to Common Stockholders (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Net Income (Loss) Per Share Attributable to Common Stockholders | |||||||
Net income | $ 2,879 | $ 1,393 | $ 2,070 | ||||
Convertible preferred stock dividends | (1,247) | (1,845) | (1,761) | ||||
Allocation of undistributed earnings to preferred stockholders | (216) | ||||||
Net income (loss) attributable to common stockholders | $ 1,632 | $ (452) | $ 93 | ||||
Weighted average shares outstanding | 8,913,042 | 2,929,438 | 2,491,108 | ||||
Effect of common stock options, warrants, restricted stock units and employee stock purchase plan shares | 1,845,642 | 0 | 1,306,580 | ||||
Weighted average shares used to compute diluted net income (loss) per share | 10,758,684 | 2,929,438 | 3,797,688 | ||||
Net income (loss) per share — Basic | $ 0.09 | $ 0.05 | $ (0.12) | $ (0.51) | $ 0.18 | $ (0.15) | $ 0.04 |
Net income (loss) per share — Diluted | $ 0.06 | $ 0.03 | $ (0.12) | $ (0.51) | $ 0.15 | $ (0.15) | $ 0.02 |
Net Income (Loss) Per Share A49
Net Income (Loss) Per Share Attributable to Common Stockholders - Antidilutive shares (Details) - shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities excluded from computation of earnings per share | 30,845 | 7,641,204 | 5,970,565 |
Number of potentially dilutive shares outstanding | 18,700 | ||
Convertible preferred stock outstanding | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities excluded from computation of earnings per share | 5,794,957 | 5,794,957 | |
Common stock options | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities excluded from computation of earnings per share | 30,845 | 1,840,447 | 2,791 |
Common stock warrants | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities excluded from computation of earnings per share | 5,800 | 172,817 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2016USD ($) | |
Fair Value Measurements | |
Available for sale debt securities | $ 10,994 |
Amount of transfers of marketable securities within the three level hierarchy | 29,984 |
Amount of fair value transferred | 0 |
Currency | |
Fair Value Measurements | |
Marketable securities | 14 |
Money market mutual funds | |
Fair Value Measurements | |
Marketable securities | 18,976 |
US government and agency obligations | |
Fair Value Measurements | |
Available for sale debt securities | 8,996 |
Corporate debt securities and certificate of deposit | |
Fair Value Measurements | |
Available for sale debt securities | 1,998 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | |
Fair Value Measurements | |
Amount of transfers of marketable securities within the three level hierarchy | 21,007 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Currency | |
Fair Value Measurements | |
Marketable securities | 14 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Money market mutual funds | |
Fair Value Measurements | |
Marketable securities | 18,976 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | US government and agency obligations | |
Fair Value Measurements | |
Available for sale debt securities | 2,017 |
Significant Other Observable Inputs (Level 2) | |
Fair Value Measurements | |
Amount of transfers of marketable securities within the three level hierarchy | 8,977 |
Significant Other Observable Inputs (Level 2) | US government and agency obligations | |
Fair Value Measurements | |
Available for sale debt securities | 6,979 |
Significant Other Observable Inputs (Level 2) | Corporate debt securities and certificate of deposit | |
Fair Value Measurements | |
Available for sale debt securities | $ 1,998 |
Quarterly Financial Informati51
Quarterly Financial Information (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Revenues | $ 21,160 | $ 16,820 | $ 14,771 | $ 10,121 | $ 84,542 | $ 62,872 | $ 47,736 | ||||
Gross margin | 16,091 | 12,354 | 10,370 | 7,149 | 61,602 | 45,964 | 35,021 | ||||
Income (loss) from operations | 3,245 | 1,462 | 228 | (1,484) | 4,272 | 3,451 | 3,799 | ||||
Net income (loss) attributable to common stockholders | $ 289 | $ 144 | $ (328) | $ (1,340) | $ 1,632 | $ (452) | $ 93 | ||||
Net income (loss) per share - Basic | $ 0.09 | $ 0.05 | $ (0.12) | $ (0.51) | $ 0.18 | $ (0.15) | $ 0.04 | ||||
Net income (loss) per share - Diluted | $ 0.06 | $ 0.03 | $ (0.12) | $ (0.51) | $ 0.15 | $ (0.15) | $ 0.02 | ||||
Reported | |||||||||||
Revenues | $ 22,635 | $ 19,729 | $ 13,700 | ||||||||
Gross margin | 16,353 | 14,405 | 9,889 | ||||||||
Income (loss) from operations | 974 | 1,792 | (1,786) | ||||||||
Net income (loss) attributable to common stockholders | $ 169 | $ 177 | $ (1,494) | ||||||||
Net income (loss) per share - Basic | $ 0.01 | $ 0.05 | $ (0.45) | ||||||||
Net income (loss) per share - Diluted | $ 0.01 | $ 0.04 | $ (0.45) | ||||||||
Adjusted | |||||||||||
Revenues | $ 28,478 | $ 22,635 | $ 19,729 | $ 13,700 | |||||||
Gross margin | 20,955 | 16,353 | 14,405 | 9,889 | |||||||
Income (loss) from operations | 3,292 | 974 | 1,792 | (1,786) | |||||||
Net income (loss) attributable to common stockholders | $ 2,379 | $ 334 | $ 204 | $ (1,231) | |||||||
Net income (loss) per share - Basic | $ 0.14 | $ 0.03 | $ 0.06 | $ (0.38) | |||||||
Net income (loss) per share - Diluted | $ 0.13 | $ 0.02 | $ 0.04 | $ (0.38) |