Tactile Systems Technology (TCMD) 10-Q 7 Aug 17 2017 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2017	Aug. 04, 2017
Document and Entity Information
Entity Registrant Name	TACTILE SYSTEMS TECHNOLOGY INC
Entity Central Index Key	1,027,838
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Jun. 30, 2017
Document Fiscal Period Focus	Q2
Document Fiscal Year Focus	2,017
Current Fiscal Year End Date	--12-31
Entity Current Reporting Status	Yes
Entity Filer Category	Non-accelerated Filer
Entity Common Stock, Shares Outstanding		17,586,617

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Current assets:
Cash and cash equivalents	$ 18,096	$ 30,701
Marketable securities	21,002	10,994
Accounts receivable, net	12,910	15,003
Inventories	9,631	6,554
Income taxes receivable	4,440
Prepaid expenses	708	981
Total current assets	66,787	64,233
Property and equipment, net	2,854	1,563
Other assets
Patent costs, net	2,292	2,394
Medicare accounts receivable, long-term	2,961	2,823
Deferred income taxes	2,798	2,785
Other non-current assets	201	137
Total other assets	8,252	8,139
Total assets	77,893	73,935
Current liabilities
Accounts payable	6,567	5,018
Accrued payroll and related taxes	3,118	6,692
Accrued expenses	1,371	1,193
Future product royalties	34	67
Income taxes payable		823
Total current liabilities	11,090	13,793
Long-term liabilities
Accrued warranty reserve, long-term	610	503
Total liabilities	11,700	14,296
Stockholders’ equity
Preferred stock, $0.001 par value, 50,000,000 shares authorized; none issued and outstanding as of June 30, 2017 and December 31, 2016
Common stock, $0.001 par value, 300,000,000 shares authorized; 17,567,458 shares issued and 17,541,371 shares outstanding as of June 30, 2017; 16,833,737 shares issued and outstanding as of December 31, 2016	18	17
Additional paid-in capital	67,178	62,406
Accumulated deficit	(490)	(2,773)
Accumulated other comprehensive loss	(20)	(11)
Less: treasury stock, at cost — 26,087 shares as of June 30, 2017	(493)
Total stockholders’ equity	66,193	59,639
Total liabilities and stockholders’ equity	$ 77,893	$ 73,935

Condensed Consolidated Balance3

Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares	Jun. 30, 2017	Dec. 31, 2016
Condensed Consolidated Balance Sheets
Preferred stock, par value (in dollars per share)	$ 0.001	$ 0.001
Preferred Stock, Shares Authorized	50,000,000	50,000,000
Preferred Stock, Shares Issued	0	0
Preferred Stock, Shares Outstanding	0	0
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common shares authorized	300,000,000	300,000,000
Common Stock, Shares, Issued	17,567,458	16,833,737
Common Stock, Shares, Outstanding	17,541,371	16,833,737
Treasury stock (in shares)	26,087

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Condensed Consolidated Statements of Operations
Revenues, net	$ 26,264	$ 19,729	$ 46,114	$ 33,429
Cost of goods sold	7,034	5,324	12,658	9,135
Gross profit	19,230	14,405	33,456	24,294
Operating expenses
Sales and marketing	10,645	7,598	20,811	14,879
Research and development	1,465	1,049	2,583	2,029
Reimbursement, general and administrative	6,390	3,966	12,264	7,380
Total operating expenses	18,500	12,613	35,658	24,288
Income (loss) from operations	730	1,792	(2,202)	6
Other income	64	5	119	10
Income (loss) before income taxes	794	1,797	(2,083)	16
Income tax (benefit) expense	(2,993)	809	(4,366)	8
Net income	3,787	988	2,283	8
Convertible preferred stock dividends		509		1,023
Allocation of undistributed earnings to preferred stockholders		302
Net income (loss) attributable to common stockholders	$ 3,787	$ 177	$ 2,283	$ (1,015)
Net income (loss) per common share attributable to common stockholders
Basic (in dollars per share)	$ 0.22	$ 0.05	$ 0.13	$ (0.30)
Diluted (in dollars per share)	$ 0.20	$ 0.04	$ 0.12	$ (0.30)
Weighted-average common shares used to compute net income (loss) per common share attributable to common stockholders
Basic (in shares)	17,176,386	3,406,420	17,028,237	3,349,873
Diluted (in shares)	18,814,565	4,846,327	18,713,421	3,349,873

Condensed Consolidated Stateme5

Condensed Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands	3 Months Ended	6 Months Ended
	Jun. 30, 2017	Jun. 30, 2017
Condensed Consolidated Statements of Comprehensive Income (Loss)
Net income	$ 3,787	$ 2,283
Other comprehensive loss:
Unrealized losses on available-for-sale securities	(8)	(21)
Income tax related to items of other comprehensive loss	6	12
Total other comprehensive loss	(2)	(9)
Comprehensive income	$ 3,785	$ 2,274

Condensed Consolidated Stateme6

Condensed Consolidated Statements of Stockholders' Equity (Deficit) - USD ($) $ in Thousands	Common Stock	Additional Paid In Capital.	Accumulated Deficit	Accumulated Other Comprehensive Loss	Treasury Stock	Series B Preferred Stock	Series A Preferred Stock	Total
Balance at the beginning (in shares) at Dec. 31, 2015						2,733,468	3,061,488
Temporary equity, balance at the beginning at Dec. 31, 2015						$ 12,599	$ 20,328
Balances at the beginning (in shares) at Dec. 31, 2015	3,222,902
Balances at the beginning at Dec. 31, 2015	$ 3		$ (5,652)					$ (5,649)
Increase (Decrease) in Stockholders' Equity
Stock-based compensation		$ 150						150
Exercise of common stock options and warrants and vesting of restricted stock units (in shares)	191,235
Exercise of common stock options and warrants and vesting of restricted stock units		196						196
Preferred stock dividend		(346)	(677)					(1,023)
Preferred stock dividend						$ 371	$ 652
Comprehensive income for the period			8					8
Balance at the end (in shares) at Jun. 30, 2016						2,733,468	3,061,488
Balances at the end (in shares) at Jun. 30, 2016	3,414,137
Temporary equity, balance at the end at Jun. 30, 2016						$ 12,970	$ 20,980
Balances at the end at Jun. 30, 2016	$ 3		(6,321)					(6,318)
Balances at the beginning (in shares) at Dec. 31, 2016	16,833,737
Balances at the beginning at Dec. 31, 2016	$ 17	62,406	(2,773)	$ (11)				59,639
Increase (Decrease) in Stockholders' Equity
Stock-based compensation		2,137						2,137
Exercise of common stock options and warrants and vesting of restricted stock units (in shares)	473,740
Exercise of common stock options and warrants and vesting of restricted stock units	$ 1	578						579
Taxes paid for net share settlement of restricted stock units		(153)						(153)
Common shares issued for employee stock purchase plan (in shares)	259,981
Common shares issued for employee stock purchase plan		2,210						2,210
Shares repurchased to cover taxes from restricted stock award vesting (in shares)	(26,087)
Shares repurchased to cover taxes from restricted stock award vesting					$ (493)			(493)
Comprehensive income for the period			2,283	(9)				2,274
Balances at the end (in shares) at Jun. 30, 2017	17,541,371
Balances at the end at Jun. 30, 2017	$ 18	$ 67,178	$ (490)	$ (20)	$ (493)			$ 66,193

Condensed Consolidated Stateme7

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016
Cash flows from operating activities
Net income	$ 2,283	$ 8
Adjustments to reconcile net income to net cash (used in) provided by operating activities:
Depreciation and amortization	664	437
Stock-based compensation expense	2,137	150
Change in allowance for doubtful accounts	(296)	300
Changes in assets and liabilities
Accounts receivable	2,389	1,245
Inventories	(3,077)	(164)
Income taxes	(5,263)	(904)
Prepaid expenses and other assets	354	(180)
Medicare accounts receivable – long-term	(138)	252
Accounts payable	1,255	936
Accrued payroll and related taxes	(3,574)	(1,368)
Accrued expenses and income taxes payable	284	455
Future product royalties	(33)	(496)
Net cash (used in) provided by operating activities	(3,015)	671
Cash flows from investing activities
Proceeds from sales of marketable securities	1,000
Purchases of marketable securities	11,049
Purchases of property and equipment	(1,516)	(312)
Patent costs	(23)	(6)
Other investments	(145)
Net cash used in investing activities	(11,733)	(318)
Cash flows from financing activities
Taxes paid for net share settlement of restricted stock units	(153)
Proceeds from exercise of common stock options and warrants	579	196
Proceeds from the issuance of common stock from the ESPP	2,210
Shares repurchased to cover taxes from restricted stock award vesting	(493)
Fees paid for IPO		(890)
Net cash provided by (used in) financing activities	2,143	(694)
Net change in cash and cash equivalents	(12,605)	(341)
Cash and cash equivalents – beginning of period	30,701	7,060
Cash and cash equivalents – end of period	18,096	6,719
Supplemental cash flow disclosure
Cash paid for taxes	898	964
Non-cash investing activities
Acquisition of assets included in accounts payable	$ 294	$ 81

Nature of Operations and Basis

Nature of Operations and Basis of Presentation	6 Months Ended
	Jun. 30, 2017
Nature of Operations and Basis of Presentation
Nature of Operations and Basis of Presentation	Note 1. Nature of Operations and Basis of Presentation Nature of Operations Tactile Systems Technology, Inc. (“we,” “us,” and “our”) is the sole manufacturer and distributor of the Flexitouch and Entre 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 a patient’s use in the home and sell them throughout the United States through referrals from clinicians diagnosing and treating lymphatic and vascular disorders. We do business as “Tactile Medical.” Basis of Presentation Our accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) for interim financial reporting and pursuant to the rules and regulations of the SEC. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of management, all adjustments (including those which are normal and recurring) considered necessary for a fair presentation of the interim financial information have been included. We have reclassified certain prior year amounts to conform to the current year’s presentation. The results for the three and six months ended June 30, 2017 are not necessarily indicative of results to be expected for the year ending December 31, 2017, or for any other interim period or 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 yet met their annual out-of-pocket payment obligations, 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, and because patients often spend the remaining balances in their flexible spending accounts at that time. This seasonality applies only to purchases of our products by patients covered by commercial insurance and is not relevant to Medicare, Medicaid, or Veterans Administration hospitals, as those payers do not have plans that include patient deductibles for purchases of our products. The condensed consolidated interim financial statements should be read in conjunction with the audited financial statements and notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2016. 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, resulting in us being reincorporated as a Delaware corporation. The resulting corporation assumed the name Tactile Systems Technology, Inc. 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 1-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 condensed 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 condensed 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. 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 condensed consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Significant Accounting Policies During the six months ended June 30, 2017 there were no material changes in our significant accounting policies. See Note 1 to the consolidated financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2016 for information regarding our significant accounting policies. Recent Accounting Pronouncements We are an “emerging growth company” as defined by the Jumpstart Our Business Startups (“JOBS”) Act of 2012. 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 that 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 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 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. 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 June 30, 2017, our cash was held primarily in checking and money market accounts.

Marketable Securities

Marketable Securities	6 Months Ended
	Jun. 30, 2017
Marketable Securities.
Marketable Securities	Note 2. Marketable Securities Our investments in marketable securities are classified as available-for-sale and consist of the following: June 30, 2017 Unrealized Unrealized (In thousands) Cost Gains Losses Fair Value U.S. government and agency obligations $ 13,003 $ 1 $ 34 $ 12,970 Corporate debt securities and certificates of deposit 8,037 1 6 8,032 Marketable securities $ 21,040 $ 2 $ 40 $ 21,002 December 31, 2016 Unrealized Unrealized (In thousands) Cost Gains Losses Fair Value U.S. government and agency obligations $ 9,011 $ 2 $ 17 $ 8,996 Corporate debt securities and certificates of deposit 2,000 — 2 1,998 Marketable securities $ 11,011 $ 2 $ 19 $ 10,994 Our investments in marketable debt securities all have contractual maturities of 12 to 24 months from June 30, 2017. At June 30, 2017, marketable debt securities valued at $3.0 million were in an unrealized gain position totaling $2,000, and marketable debt securities valued at $18.0 million were in an unrealized loss position totaling $41,000 (all had been in an unrealized loss position for less than 12 months). 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 debt securities of $39,000 at June 30, 2017 were recorded as a component of accumulated other comprehensive loss in stockholders' equity. Marketable debt securities valued at $1.0 million were sold during the six months ended June 30, 2017 with no resulting gain or loss.

Patent Costs, Net

Patent Costs, Net	6 Months Ended
	Jun. 30, 2017
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 As of (In thousands) June 30, 2017 December 31, 2016 Patents $ 3,485 $ 3,462 Less: accumulated amortization (1,193) (1,068) Net patents $ 2,292 $ 2,394 Amortization expense was $0.1 million for each of the three months ended June 30, 2017 and 2016 and $0.1 million for each of the six months ended June 30, 2017 and 2016. Future amortization expenses are expected as follows: (In thousands) 2017 (July 1 - December 31) $ 125 2018 249 2019 249 2020 249 2021 249 Thereafter 1,171 Total $ 2,292

Accrued Expenses

Accrued Expenses	6 Months Ended
	Jun. 30, 2017
Accrued Expenses
Accrued Expenses	Note 4. Accrued Expenses Accrued expenses consisted of the following: As of As of (In thousands) June 30, 2017 December 31, 2016 Warranty $ 348 $ 290 Travel and business 308 308 Legal and consulting 343 275 Deferred rent 162 159 Clinical 74 45 Other 136 116 Total $ 1,371 $ 1,193

Line of Credit - Bank

Line of Credit - Bank	6 Months Ended
	Jun. 30, 2017
Line of Credit — Bank
Line of Credit — Bank	Note 5. Line of Credit — Bank At December 31, 2016 we had a $2.0 million line of credit with a bank that bore interest based on the prime rate. There was no outstanding balance on the line of credit as of December 31, 2016. The line of credit expired on May 11, 2017, and there was no outstanding balance on the line as of that date

Commitments and Contingencies

Commitments and Contingencies	6 Months Ended
	Jun. 30, 2017
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. 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. Rent expense was $0.3 million and $0.2 million for the three months ended June 30, 2017 and 2016, respectively, and $0.5 million and $0.4 million for the six months ended June 30, 2017 and 2016, respectively. In July 2016, we entered into a fleet vehicle lease program for certain members of our field sales organization. At June 30, 2017, we had 50 leased vehicles under this program. 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 (July 1 - December 31) $ 347 $ 30 $ 103 $ 480 2018 714 52 82 848 2019 733 39 — 772 2020 752 22 — 774 2021 526 — — 526 Thereafter — — — — Total $ 3,072 $ 143 $ 185 $ 3,400 Major Vendors We had purchases from three vendors that collectively accounted for 36% and 41% of total purchases for the three months ended June 30, 2017 and 2016, respectively, and 36% and 35% of total purchases for the six months ended June 30, 2017 and 2016, respectively. Purchase Commitments We issued purchase orders in January 2017 totaling $7.8 million, of which $6.7 million remained as of June 30, 2017, for inventory that we expect to receive between July 2017 and February 2018. We issued purchase orders in May 2017 totaling $1.3 million for inventory that we expect to receive in February and March 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 $48,000 and $39,000 for the three months ended June 30, 2017 and 2016, respectively, and $93,000 and $75,000 for the six months ended June 30, 2017 and 2016, respectively.

Stockholders' Equity

Stockholders' Equity	6 Months Ended
	Jun. 30, 2017
Stockholders' Equity
Stockholders' Equity	Note 7. Stockholders' Equity We completed an 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. 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. As of June 30, 2017, 4,826,044 shares were available for future grant pursuant to the 2016 Plan. Upon adoption and approval of the 2016 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 stock-based compensation expense of $1.2 million and $0.1 million for the three months ended June 30, 2017 and 2016, respectively, and $2.1 million and $0.2 million for the six months ended June 30, 2017 and 2016, respectively. This expense was allocated as follows: Three Months Ended Six Months Ended June 30, June 30, (In thousands) 2017 2016 2017 2016 Cost of goods sold $ 49 $ 19 $ 98 $ 38 Sales and marketing expenses 354 42 669 84 Research and development expenses 21 — 44 — Reimbursement, general and administrative expenses 756 14 1,326 28 Total stock-based compensation expense $ 1,180 $ 75 $ 2,137 $ 150 Stock Options Stock options issued to participants other than non-employees vest over four years and typically have a contractual term of ten years. The stock options granted on July 27, 2016 to our non-employee directors vested in full on May 9, 2017, the date of our 2017 annual meeting of stockholders. New stock options were granted to our non-employee directors on that date. These options vest on the earlier of May 9, 2018 or the date of our 2018 annual meeting of stockholders. These options have a contractual term of seven years. Our stock option activity for the six months ended June 30, 2017 was 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, 2016 1,856,299 $ 2.69 5.5 years $ 25,467 Granted 39,755 21.42 Exercised (416,310) 1.33 8,904 Forfeited (19,203) 8.52 Balance at June 30, 2017 1,460,541 3.51 5.2 years 36,614 Options exercisable at June 30, 2017 1,152,453 $ 1.92 4.6 years $ 30,725 (1) The exercise price of each option granted during the period 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 quarter. Options exercisable of 1,329,260 as of June 30, 2016 had a weighted average exercise price of $1.01 per share. Stock based compensation expense included in our Condensed Consolidated Statements of Operations for stock options was $0.3 million and $0.1 million for the three months ended June 30, 2017 and 2016, respectively, and $0.5 million and $0.2 million for the six months ended June 30, 2017 and 2016, respectively. At June 30, 2017, there was approximately $1.1 million of total unrecognized pre-tax stock option expense under our equity compensation plans, which is expected to be recognized on a straight-line basis over a weighted average period of 2.5 years. Stock-Settled Restricted Stock Units Stock-settled restricted stock units granted under the 2016 Plan vest over one to three years. These awards are stock-settled with common shares. Stock-based compensation expense included in our Condensed Consolidated Statement of Operations for stock-settled restricted stock units was $0. 7 million and $1.2 for the three and six months ended June 30, 2017, respectively. No restricted stock units had been granted as of June 30, 2016. As of June 30, 2017, there was $5.4 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 2.4 years. Our stock-settled restricted stock unit activity for the six months ended June 30, 2017 was as follows: Weighted Average Grant Aggregate Units Date Fair Value Intrinsic (In thousands except share and per share data) Outstanding Per Share Value (1) Balance at December 31, 2016 324,863 $ 10.39 $ 5,331 Granted 186,436 21.31 Vested (2) (62,851) 10.25 Cancelled (2,340) 19.23 Balance at June 30, 2017 446,108 $ 14.93 $ 12,750 (1) Intrinsic value of stock-settled restricted stock units outstanding was based on our closing stock price on the last trading day of the quarter. (2) For the six months ended June 30, 2017, there were 1,398 restricted stock units granted to non-employee directors in lieu of their quarterly cash retainer payments. These restricted stock units were fully vested upon grant and represent the right to receive one share of common stock, per unit, upon the earlier of the directors’ termination of service as a director of ours or the occurrence of a change of control of us. These restricted stock units are included in the “Granted” line in the table above due to their being fully vested upon grant and are included in the “Vested” line in the table above. On May 9, 2017, upon his departure from our board of directors, we issued 1,494 shares of common stock to Mr. Shroff, which represented the settlement of restricted stock units that had been previously granted to him in lieu of his quarterly director retainer payments. As of June 30, 2017, there were 1,630 outstanding restricted stock units that had been previously granted to non-employee directors in lieu of their quarterly director retainer payments. These restricted stock units are not included in the “Balance at June 30, 2017” line in the table above because they are fully vested. 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 ended on May 15, 2017. As of May 15, 2017, 259,981 shares were purchased utilizing $2.2 million of employee contributions in the initial purchase period. A total of 1.6 million shares of common stock were initially 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 were added to the ESPP, as available for issuance thereunder, pursuant to the automatic increase feature of the plan. As of June 30, 2017, 1,508,356 shares were available for future issuance under the ESPP. We recognized $0.2 million and $0.4 million in stock-based compensation expense related to the ESPP for the three and six months ended June 30, 2017, respectively. We did not recognize any stock-based compensation expense related to the ESPP in the six months ended June 30, 2016 .

Income Taxes

Income Taxes	6 Months Ended
	Jun. 30, 2017
Income Taxes
Income Taxes	Note 8. Income Taxes We record our interim provision for income taxes by applying our estimated annual effective tax rate to our year-to-date pre-tax income and adjust the provision for discrete tax items recorded in the period. 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 reporting purposes, including for depreciation and amortization, warranty and vacation accruals, share-based compensation and deductions related to allowances for doubtful accounts receivable and inventory reserves. The effective tax rate for the three months ended June 30, 2017 was (376.5)%, compared to 45.0% for the three months ended June 30, 2016, a decrease of 421.5 percentage points. The primary driver of the decrease in our effective tax rate was a significant increase in tax benefits related to share-based compensation recognized in the current quarter as compared to the previous reporting period. Significant tax deductions included windfall benefits with respect to vesting of restricted stock awards and restricted stock units, nonqualified stock options that were exercised and disqualifying dispositions of incentive stock options and ESPP shares. We recorded an income tax benefit of $3.0 million and income tax expense of $0.8 million for the three months ended June 30, 2017 and 2016, respectively. Our provisions for income taxes included current federal and state income tax expense, as well as deferred federal and state income tax expense. The effective tax rate for the six months ended June 30, 2017 was 209.7%, compared to 50.0% for the six months ended June 30, 2016. The primary driver of the change in our effective tax rate was the significant increase in tax benefits related to tax-deductible share-based compensation activity as compared to the previous reporting period. This activity included the vesting of restricted stock awards and restricted stock units, excess tax benefits associated with exercises of non-qualified stock options and disqualifying dispositions of incentive stock options and ESPP shares. We recorded an income tax benefit of $4.4 million and income tax expense of $8,000 for the six months ended June 30, 2017 and 2016, respectively. Our provisions for income taxes included current federal and state income tax expense, as well as deferred federal and state income tax expense. 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 condensed consolidated financial statements is the largest benefit that has a greater than 50% likelihood of being realized upon ultimate settlement with the relevant tax authority. With few exceptions, we are no longer subject to U.S. federal, state or local income tax examinations by tax authorities for the years before 2011. We are not currently under examination by any taxing jurisdiction. In the event of any future tax assessments, we have elected to record the income taxes and any related interest and penalties as income tax expense on our statement of operations.

Net Income (Loss) Per Share Att

Net Income (Loss) Per Share Attributable to Common Stockholders	6 Months Ended
	Jun. 30, 2017
Net Income (Loss) Per Share Attributable to Common Stockholders
Net Income (Loss) Per Share Attributable to Common Stockholders	Note 9. Net Income (Loss) Per Share Attributable to Common Stockholders We adopted ASU 2016-09, “ Improvements to Employee Share-Based Payment Accounting ,” in the fourth quarter of 2016 on a retrospective basis, effective January 1, 2016. The following table sets forth the computation of our basic and diluted net income (loss) per share attributable to common stockholders and reflects the adoption of ASU 2016-09: Three Months Ended June 30, Six Months Ended June 30, (In thousands, except share and per share data) 2017 2016 2017 2016 Net income $ 3,787 $ 988 $ 2,283 $ 8 Convertible preferred stock dividends — 509 — 1,023 Allocation of undistributed earnings to preferred stockholders — 302 — — Net income (loss) attributable to common stockholders $ 3,787 $ 177 $ 2,283 $ (1,015) Weighted-average shares outstanding 17,176,386 3,406,420 17,028,237 3,349,873 Effect of convertible preferred stock outstanding, restricted stock units, common stock options, warrants, and employee stock purchase plan shares 1,638,179 1,439,907 1,685,184 — Weighted-average shares used to compute diluted net income (loss) per share 18,814,565 4,846,327 18,713,421 3,349,873 Net income (loss) per share - Basic $ 0.22 $ 0.05 $ 0.13 $ (0.30) Net income (loss) per share - Diluted $ 0.20 $ 0.04 $ 0.12 $ (0.30) The following common stock equivalents were excluded from the computation of diluted net income per share for the periods presented because including them would have been anti-dilutive: Three Months Ended June 30, Six Months Ended June 30, 2017 2016 2017 2016 Convertible preferred stock outstanding — 5,924,453 — 5,924,453 Restricted stock units — — 66,517 — Common stock options 39,755 — 111,500 1,628,754 Employee stock purchase plan shares 49,021 — 49,021 — Common stock warrants — — 1,122 5,800 Total 88,776 5,924,453 228,160 7,559,007 As of June 30, 2017, total common shares outstanding and the potentially dilutive shares totaled approximately 19.2 million shares.

Fair Value Measurements

Fair Value Measurements	6 Months Ended
	Jun. 30, 2017
Fair Value Measurements
Fair Value Measurements	Note 10. 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 cash equivalents and marketable securities as of June 30, 2017 and December 31, 2016 according to the three-level fair value hierarchy. Fair Value Measurements at June 30, 2017 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 $ 13 $ — $ — $ 13 Money market mutual funds 9,021 — — 9,021 U.S. government and agency obligations 2,006 10,964 — 12,970 Corporate debt securities and certificates of deposit — 8,032 — 8,032 Total $ 11,040 $ 18,996 $ — $ 30,036 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 $ 14 $ — $ — $ 14 Money market mutual funds 18,976 — — 18,976 U.S. government and agency obligations 2,017 6,979 — 8,996 Corporate debt securities and certificates of deposit — 1,998 — 1,998 Total $ 21,007 $ 8,977 $ — $ 29,984 During the six months ended June 30, 2017 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 merits a transfer between the disclosed levels of the valuation hierarchy. The fair values 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 items. 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 the six months ended June 30, 2017.

Nature of Operations and Basi18

Nature of Operations and Basis of Presentation (Policies)	6 Months Ended
	Jun. 30, 2017
Nature of Operations and Basis of Presentation
Nature of Operations	Nature of Operations Tactile Systems Technology, Inc. (“we,” “us,” and “our”) is the sole manufacturer and distributor of the Flexitouch and Entre 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 a patient’s use in the home and sell them throughout the United States through referrals from clinicians diagnosing and treating lymphatic and vascular disorders. We do business as “Tactile Medical.”
Basis of Presentation	Basis of Presentation Our accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) for interim financial reporting and pursuant to the rules and regulations of the SEC. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of management, all adjustments (including those which are normal and recurring) considered necessary for a fair presentation of the interim financial information have been included. We have reclassified certain prior year amounts to conform to the current year’s presentation. The results for the three and six months ended June 30, 2017 are not necessarily indicative of results to be expected for the year ending December 31, 2017, or for any other interim period or 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 yet met their annual out-of-pocket payment obligations, 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, and because patients often spend the remaining balances in their flexible spending accounts at that time. This seasonality applies only to purchases of our products by patients covered by commercial insurance and is not relevant to Medicare, Medicaid, or Veterans Administration hospitals, as those payers do not have plans that include patient deductibles for purchases of our products. The condensed consolidated interim financial statements should be read in conjunction with the audited financial statements and notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2016. 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, resulting in us being reincorporated as a Delaware corporation. The resulting corporation assumed the name Tactile Systems Technology, Inc. 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 1-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 condensed 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 condensed 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.
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 condensed consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.
Significant Accounting Policies	Significant Accounting Policies During the six months ended June 30, 2017 there were no material changes in our significant accounting policies. See Note 1 to the consolidated financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2016 for information regarding our significant accounting policies.
Recent Accounting Pronouncements	Recent Accounting Pronouncements We are an “emerging growth company” as defined by the Jumpstart Our Business Startups (“JOBS”) Act of 2012. 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 that 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 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 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.
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 June 30, 2017, our cash was held primarily in checking and money market accounts.

Marketable Securities (Tables)

Marketable Securities (Tables)	6 Months Ended
	Jun. 30, 2017
Marketable Securities.
Schedule of marketable securities	June 30, 2017 Unrealized Unrealized (In thousands) Cost Gains Losses Fair Value U.S. government and agency obligations $ 13,003 $ 1 $ 34 $ 12,970 Corporate debt securities and certificates of deposit 8,037 1 6 8,032 Marketable securities $ 21,040 $ 2 $ 40 $ 21,002 December 31, 2016 Unrealized Unrealized (In thousands) Cost Gains Losses Fair Value U.S. government and agency obligations $ 9,011 $ 2 $ 17 $ 8,996 Corporate debt securities and certificates of deposit 2,000 — 2 1,998 Marketable securities $ 11,011 $ 2 $ 19 $ 10,994

Patent Costs, Net (Tables)

Patent Costs, Net (Tables)	6 Months Ended
	Jun. 30, 2017
Patent Costs, Net
Schedule of finite lived intangible assets	As of As of (In thousands) June 30, 2017 December 31, 2016 Patents $ 3,485 $ 3,462 Less: accumulated amortization (1,193) (1,068) Net patents $ 2,292 $ 2,394
Schedule of future amortization expense	(In thousands) 2017 (July 1 - December 31) $ 125 2018 249 2019 249 2020 249 2021 249 Thereafter 1,171 Total $ 2,292

Accrued Expenses (Tables)

Accrued Expenses (Tables)	6 Months Ended
	Jun. 30, 2017
Accrued Expenses
Schedule of Accrued Expenses	As of As of (In thousands) June 30, 2017 December 31, 2016 Warranty $ 348 $ 290 Travel and business 308 308 Legal and consulting 343 275 Deferred rent 162 159 Clinical 74 45 Other 136 116 Total $ 1,371 $ 1,193

Commitments and Contingencies (

Commitments and Contingencies (Tables)	6 Months Ended
	Jun. 30, 2017
Commitments and Contingencies
Schedule of future minimum lease payments	Computer/Office Fleet Car (In thousands) Buildings Equipment Program Total 2017 (July 1 - December 31) $ 347 $ 30 $ 103 $ 480 2018 714 52 82 848 2019 733 39 — 772 2020 752 22 — 774 2021 526 — — 526 Thereafter — — — — Total $ 3,072 $ 143 $ 185 $ 3,400

Stockholders' Equity (Tables)

Stockholders' Equity (Tables)	6 Months Ended
	Jun. 30, 2017
Stockholders' Equity
Schedule of allocation of stock-based compensation expense	Three Months Ended Six Months Ended June 30, June 30, (In thousands) 2017 2016 2017 2016 Cost of goods sold $ 49 $ 19 $ 98 $ 38 Sales and marketing expenses 354 42 669 84 Research and development expenses 21 — 44 — Reimbursement, general and administrative expenses 756 14 1,326 28 Total stock-based compensation expense $ 1,180 $ 75 $ 2,137 $ 150
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, 2016 1,856,299 $ 2.69 5.5 years $ 25,467 Granted 39,755 21.42 Exercised (416,310) 1.33 8,904 Forfeited (19,203) 8.52 Balance at June 30, 2017 1,460,541 3.51 5.2 years 36,614 Options exercisable at June 30, 2017 1,152,453 $ 1.92 4.6 years $ 30,725 (1) The exercise price of each option granted during the period 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 quarter.
Schedule of stock-settled restricted stock unit activity	Weighted Average Grant Aggregate Units Date Fair Value Intrinsic (In thousands except share and per share data) Outstanding Per Share Value (1) Balance at December 31, 2016 324,863 $ 10.39 $ 5,331 Granted 186,436 21.31 Vested (2) (62,851) 10.25 Cancelled (2,340) 19.23 Balance at June 30, 2017 446,108 $ 14.93 $ 12,750 (1) Intrinsic value of stock-settled restricted stock units outstanding was based on our closing stock price on the last trading day of the quarter. (2) For the six months ended June 30, 2017, there were 1,398 restricted stock units granted to non-employee directors in lieu of their quarterly cash retainer payments. These restricted stock units were fully vested upon grant and represent the right to receive one share of common stock, per unit, upon the earlier of the directors’ termination of service as a director of ours or the occurrence of a change of control of us. These restricted stock units are included in the “Granted” line in the table above due to their being fully vested upon grant and are included in the “Vested” line in the table above. On May 9, 2017, upon his departure from our board of directors, we issued 1,494 shares of common stock to Mr. Shroff, which represented the settlement of restricted stock units that had been previously granted to him in lieu of his quarterly director retainer payments. As of June 30, 2017, there were 1,630 outstanding restricted stock units that had been previously granted to non-employee directors in lieu of their quarterly director retainer payments. These restricted stock units are not included in the “Balance at June 30, 2017” line in the table above because they are fully vested.

Net Income (Loss) Per Share A24

Net Income (Loss) Per Share Attributable to Common Stockholders (Tables)	6 Months Ended
	Jun. 30, 2017
Net Income (Loss) Per Share Attributable to Common Stockholders
Schedule of computation of the basic and diluted net income (loss) per share	Three Months Ended June 30, Six Months Ended June 30, (In thousands, except share and per share data) 2017 2016 2017 2016 Net income $ 3,787 $ 988 $ 2,283 $ 8 Convertible preferred stock dividends — 509 — 1,023 Allocation of undistributed earnings to preferred stockholders — 302 — — Net income (loss) attributable to common stockholders $ 3,787 $ 177 $ 2,283 $ (1,015) Weighted-average shares outstanding 17,176,386 3,406,420 17,028,237 3,349,873 Effect of convertible preferred stock outstanding, restricted stock units, common stock options, warrants, and employee stock purchase plan shares 1,638,179 1,439,907 1,685,184 — Weighted-average shares used to compute diluted net income (loss) per share 18,814,565 4,846,327 18,713,421 3,349,873 Net income (loss) per share - Basic $ 0.22 $ 0.05 $ 0.13 $ (0.30) Net income (loss) per share - Diluted $ 0.20 $ 0.04 $ 0.12 $ (0.30)
Schedule of potentially dilutive securities outstanding	Three Months Ended June 30, Six Months Ended June 30, 2017 2016 2017 2016 Convertible preferred stock outstanding — 5,924,453 — 5,924,453 Restricted stock units — — 66,517 — Common stock options 39,755 — 111,500 1,628,754 Employee stock purchase plan shares 49,021 — 49,021 — Common stock warrants — — 1,122 5,800 Total 88,776 5,924,453 228,160 7,559,007

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	6 Months Ended
	Jun. 30, 2017
Fair Value Measurements
Schedule of fair value measurements for marketable securities	Fair Value Measurements at June 30, 2017 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 $ 13 $ — $ — $ 13 Money market mutual funds 9,021 — — 9,021 U.S. government and agency obligations 2,006 10,964 — 12,970 Corporate debt securities and certificates of deposit — 8,032 — 8,032 Total $ 11,040 $ 18,996 $ — $ 30,036 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 $ 14 $ — $ — $ 14 Money market mutual funds 18,976 — — 18,976 U.S. government and agency obligations 2,017 6,979 — 8,996 Corporate debt securities and certificates of deposit — 1,998 — 1,998 Total $ 21,007 $ 8,977 $ — $ 29,984

Nature of Operations and Basi26

Nature of Operations and Basis of Presentation - (Details) $ / shares in Units, $ in Millions	Aug. 02, 2016USD ($)$ / sharesshares	Jun. 30, 2016	Jun. 30, 2017$ / sharesshares	Dec. 31, 2016$ / sharesshares
Basis of Presentation
Common shares authorized | shares			300,000,000	300,000,000
Common stock, par value (in dollars per share) | $ / shares			$ 0.001	$ 0.001
Reverse stock split ratio		0.354604396
IPO
Subsidiary, Sale of Stock
Number of shares of common stock sold | shares	4,120,000
IPO price per share (in dollars per share) | $ / shares	$ 10
Proceeds from Issuance Initial Public Offering | $	$ 35.4
Expense Relating To Initial Public Offering | $	$ 2.9

Marketable Securities (Details)

Marketable Securities (Details) - USD ($)	6 Months Ended	12 Months Ended
	Jun. 30, 2017	Dec. 31, 2016
Marketable Securities
Cost	$ 21,040,000	$ 11,011,000
Unrealized Gains	2,000	2,000
Unrealized Losses	40,000	19,000
Fair Value	21,002,000	10,994,000
Value of the marketable debt securities at unrealized gain position	3,000,000	4,000,000
Aggregate gains on the marketable debt securities which are at unrealized gain position	2,000	2,000
Value of the marketable debt securities at unrealized loss position, for less than 12 months	18,000,000	7,000,000
Aggregate losses on the marketable debt securities which are at unrealized loss position, for less than 12 months	41,000	19,000
Unrealized holding loss on marketable debt securities in other comprehensive loss	39,000
Marketable securities sold	1,000,000
Gain or loss on marketable securities	$ 0
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	$ 13,003,000	9,011,000
Unrealized Gains	1,000	2,000
Unrealized Losses	34,000	17,000
Fair Value	12,970,000	8,996,000
Corporate debt securities and certificate of deposit
Marketable Securities
Cost	8,037,000	2,000,000
Unrealized Gains	1,000
Unrealized Losses	6,000	2,000
Fair Value	$ 8,032,000	$ 1,998,000

Patent Costs, Net (Details)

Patent Costs, Net (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016	Dec. 31, 2016
Finite-Lived Intangible Assets
Amortization expense	$ 100	$ 100	$ 100	$ 100
Patents
Finite-Lived Intangible Assets
Patents	3,485		3,485		$ 3,462
Less: accumulated amortization	(1,193)		(1,193)		(1,068)
Net patents	2,292		2,292		2,394
Future Amortization
2017 (July 1 - December 31)	125		125
2,018	249		249
2,019	249		249
2,020	249		249
2,021	249		249
Thereafter	1,171		1,171
Net patents	$ 2,292		$ 2,292		$ 2,394

Accrued Expenses (Details)

Accrued Expenses (Details) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Accrued Expenses
Warranty	$ 348	$ 290
Travel and entertainment	308	308
Legal and consulting	343	275
Deferred rent	162	159
Clinical	74	45
Other	136	116
Total	$ 1,371	$ 1,193

Line of Credit - Bank (Details)

Line of Credit - Bank (Details) - Line of Credit - USD ($) $ in Thousands	May 11, 2017	Dec. 31, 2016
Line of Credit Facility [Line Items]
Maximum borrowing capacity		$ 2,000
Outstanding line of credit	$ 0	$ 0

Commitments and Contingencies31

Commitments and Contingencies (Details) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017USD ($)	Jun. 30, 2016USD ($)	Jun. 30, 2017USD ($)item	Jun. 30, 2016USD ($)
Operating Leased Assets [Line Items]
Rent expense	$ 300	$ 200	$ 500	$ 400
Number of leased vehicles | item			50
2017 (July 1 - December 31)	480		$ 480
2,018	848		848
2,019	772		772
2,020	774		774
2,021	526		526
Total	3,400		3,400
Building
Operating Leased Assets [Line Items]
2017 (July 1 - December 31)	347		347
2,018	714		714
2,019	733		733
2,020	752		752
2,021	526		526
Total	3,072		3,072
Computer/Office Equipment
Operating Leased Assets [Line Items]
2017 (July 1 - December 31)	30		30
2,018	52		52
2,019	39		39
2,020	22		22
Total	143		143
Fleet Car Program
Operating Leased Assets [Line Items]
2017 (July 1 - December 31)	103		103
2,018	82		82
Total	$ 185		$ 185

Commitments and Contingencies -

Commitments and Contingencies - Major Vendors (Details) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2017USD ($)item	Jun. 30, 2016item	Jun. 30, 2017USD ($)item	Jun. 30, 2016item	May 31, 2017USD ($)	Jan. 31, 2017USD ($)
Concentration Risk [Line Items]
Number of vendors | item	3	3	3	3
Purchase commitments
Purchase commitments | $	$ 6.7		$ 6.7		$ 1.3	$ 7.8
Purchases | Vendor
Concentration Risk [Line Items]
Accounts Receivable (in percentage)	36.00%	41.00%	36.00%	35.00%

Commitments and Contingencies33

Commitments and Contingencies - Deferred Compensation (Details)	6 Months Ended
	Jun. 30, 2017
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 Contingencies34

Commitments and Contingencies - Retirement Plan (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
401(k)
Defined Contribution Plan Disclosure
Discretionary contributions	$ 48,000	$ 39,000	$ 93,000	$ 75,000

Stockholders' Equity - Series A

Stockholders' Equity - Series A & B Preferred Stock (Details) $ / shares in Units, $ in Millions	Aug. 02, 2016$ / sharesshares	Jun. 30, 2017USD ($)shares
Preferred stock
Conversion of Stock, Shares Converted		5,924,453
Additional shares of common stock issued immediately prior to completion of the IPO that the Series A and Series B preferred stockholders are entitled to receive assuming an initial offering price of $10		2,354,323
IPO
Preferred stock
Number of shares of common stock sold	4,120,000
Share price (in dollars per share) | $ / shares	$ 10
Series B Preferred Stock
Preferred stock
Preferred stock to common stock conversion ratio		1
Shares issued immediately prior to completion of the IPO to pay accrued stock dividends on Series B convertible preferred stock, assuming a closing date of June 30, 2016 and an initial offering price of $10.00		956,842
Series A Preferred Stock
Preferred stock
Preferred stock to common stock conversion ratio		0.9708
Accrued Cumulative Dividends | $		$ 8.2
Payment of dividends | $		$ 0.1

Stockholders' Equity - Stock-Ba

Stockholders' Equity - Stock-Based Compensation General Information (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense	$ 1,180	$ 75	$ 2,137	$ 150
2016 Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares authorized	4,800,000		4,800,000
Stock-based compensation expense	$ 1,200	2,100	$ 100	200
Stock options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense	$ 300	$ 100	$ 500	$ 200

Stockholders' Equity - Stock-37

Stockholders' Equity - Stock-Based Compensation Expense (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Stock-based compensation
Allocated Share-based Compensation Expense	$ 1,180	$ 75	$ 2,137	$ 150
Cost of goods sold
Stock-based compensation
Allocated Share-based Compensation Expense	49	19	98	38
Sales and marketing
Stock-based compensation
Allocated Share-based Compensation Expense	354	42	669	84
Research and development
Stock-based compensation
Allocated Share-based Compensation Expense	21		44
Reimbursement, general and administrative
Stock-based compensation
Allocated Share-based Compensation Expense	$ 756	14	$ 1,326	28
2016 Plan
Stock-based compensation
Shares reserved for issuance under the plan	4,800,000		4,800,000
Allocated Share-based Compensation Expense	$ 1,200	$ 2,100	$ 100	$ 200
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%		5.00%
Automatic annual increase to the number of shares reserved and available for issuance	2,500,000		2,500,000
Increase in number of shares reserved and available for issuance			841,686
Shares available for future issuance	4,826,044		4,826,044
Restricted Stock Units
Stock-based compensation
Allocated Share-based Compensation Expense	$ 700		$ 1,200

Stockholders' Equity - Stock Op

Stockholders' Equity - Stock Options (Details) - USD ($) $ / shares in Units, $ in Thousands	May 09, 2017	Jul. 27, 2016	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016	Dec. 31, 2016	Jun. 30, 2017	Dec. 31, 2016
Stock-based compensation, general disclosures
Stock-based compensation expense			$ 1,180	$ 75	$ 2,137	$ 150
Total unrecognized pre-tax compensation expense related to nonvested stock option awards								$ 1,100
Weighted-average period over which unrecognized compensation cost is expected to be recognized					2 years 6 months
Stock options
Stock-based compensation, general disclosures
Vesting period (in years)		4 years
Term (in years)		10 years			7 years
Stock-based compensation expense			$ 300	$ 100	$ 500	$ 200
Options
Outstanding at beginning of period					1,856,299
Granted					39,755
Exercised					(416,310)
Forfeited					(19,203)
Outstanding at end of period			1,460,541		1,460,541		1,856,299
Weighted Average Exercise Price ($/share)
Outstanding at beginning of period					$ 2.69
Granted					21.42
Exercised					1.33
Forfeited					8.52
Outstanding at end of period			$ 3.51		$ 3.51		$ 2.69
Other information
Options exercisable Number of Exercisable				1,329,260		1,329,260		1,152,453
Options exercisable, weighted-average exercise price				$ 1.01		$ 1.01		$ 1.92
Weighted average remaining contractual life (in years)					5 years 2 months 12 days		5 years 6 months
Exercisable options, weighted-average remaining contractual life					4 years 7 months 6 days
Options outstanding								$ 36,614	$ 25,467
Options exercisable								$ 30,725
Exercised					$ 8,904
Restricted stock unit awards, Average Intrinsic Value
Number of option outstanding			1,460,541		1,856,299		1,856,299	1,460,541	1,856,299
Weighted average remaining contractual life (in years)					5 years 2 months 12 days		5 years 6 months
Options Outstanding, weighted average exercise price			$ 3.51		$ 2.69		$ 2.69	$ 3.51	$ 2.69
Options exercisable Number of Exercisable				1,329,260		1,329,260		1,152,453
Options exercisable, weighted-average exercise price				$ 1.01		$ 1.01		$ 1.92
Restricted Stock Units
Stock-based compensation, general disclosures
Stock-based compensation expense			$ 700		$ 1,200
Weighted-average period over which unrecognized compensation cost is expected to be recognized					2 years 4 months 24 days
Total unrecognized pre-tax compensation expense related to awards								$ 5,400
Options
Granted						0
Number of Stock-Settled Restricted Stock Unit Awards Outstanding
Restricted stock unit awards outstanding at the beginning of the period (in shares)					324,863
Granted (in shares)					186,436
Vested (in shares)					(62,851)
Cancelled (in shares)					(2,340)
Restricted stock unit awards outstanding at the end of the period (in shares)			446,108		446,108		324,863
Weighted Average Grant Date Fair Value Per Share
Restricted stock unit awards outstanding at the beginning of the period (in dollars per share)					$ 10.39
Granted (in dollars per share)					21.31
Vested (in dollars per share)					10.25
Cancelled (in dollars per share)					19.23
Restricted stock unit awards outstanding at the end of the period (in dollars per share)			$ 14.93		$ 14.93		$ 10.39
Restricted stock unit awards, Average Intrinsic Value
Restricted stock unit awards, Average Intrinsic Value								$ 12,750	$ 5,331
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 Units | Non-employee Directors
Number of Stock-Settled Restricted Stock Unit Awards Outstanding
Granted (in shares)					1,398
Restricted stock unit awards outstanding at the end of the period (in shares)			1,630		1,630
Restricted Stock Units | Mr Shroff [Member]
Number of Stock-Settled Restricted Stock Unit Awards Outstanding
Granted (in shares)	1,494

Stockholders' Equity - Employee

Stockholders' Equity - Employee Stock Purchase Plan (Details) - USD ($) $ in Thousands	May 15, 2017	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016	Apr. 27, 2017
Class of Stock [Line Items]
Shares issued				$ 2,210
Allocated Share-based Compensation Expense		$ 1,180	$ 75	$ 2,137	$ 150
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		1,508,356		1,508,356		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 (in shares)	259,981
Shares issued	$ 2,200
Allocated Share-based Compensation Expense		$ 200		$ 400

Income Taxes (Details)

Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Income Taxes
Effective rate (as percent)	(376.50%)	45.00%	209.70%	50.00%
Increase (Decrease) in percentage points			421.50%
Income tax (benefit) expense	$ (2,993)	$ 809	$ (4,366)	$ 8

Net Income (Loss) Per Share A41

Net Income (Loss) Per Share Attributable to Common Stockholders (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Net Income (Loss) Per Share Attributable to Common Stockholders
Net income	$ 3,787	$ 988	$ 2,283	$ 8
Convertible preferred stock dividends		509		1,023
Allocation of undistributed earnings to preferred stockholders		302
Net loss attributable to common stockholders	$ 3,787	$ 177	$ 2,283	$ (1,015)
Weighted average shares outstanding	17,176,386	3,406,420	17,028,237	3,349,873
Effect of convertible preferred stock outstanding, restricted stock units, common stock options, warrants, and employee stock purchase plan shares	1,638,179	1,439,907	1,685,184
Weighted average shares used to compute diluted net income (loss) per share	18,814,565	4,846,327	18,713,421	3,349,873
Net loss per share — Basic	$ 0.22	$ 0.05	$ 0.13	$ (0.30)
Net loss per share — Diluted	$ 0.20	$ 0.04	$ 0.12	$ (0.30)

Net Income (Loss) Per Share A42

Net Income (Loss) Per Share Attributable to Common Stockholders (Details) - shares	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share	88,776	5,924,453	228,160	7,559,007
Number of potentially dilutive shares outstanding	19,200,000		19,200,000
Restricted Stock Units
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share			66,517
Employee stock purchase plan shares
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share	49,021		49,021
Convertible preferred stock outstanding
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share		5,924,453		5,924,453
Common stock options
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share	39,755		111,500	1,628,754
Common stock warrants
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share			1,122	5,800

Fair Value Measurements (Detail

Fair Value Measurements (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2017	Dec. 31, 2016
Fair Value Measurements
Available for sale debt securities	$ 21,002	$ 10,994
Amount of transfers of marketable securities within the three level hierarchy	0
US government and agency obligations
Fair Value Measurements
Available for sale debt securities	12,970	8,996
Corporate debt securities and certificate of deposit
Fair Value Measurements
Available for sale debt securities	8,032	1,998
Recurring
Fair Value Measurements
Available for sale debt securities	30,036	29,984
Recurring | Currency
Fair Value Measurements
Marketable securities	13	14
Recurring | Money market mutual funds
Fair Value Measurements
Marketable securities	9,021	18,976
Recurring | US government and agency obligations
Fair Value Measurements
Available for sale debt securities	12,970	8,996
Recurring | Corporate debt securities and certificate of deposit
Fair Value Measurements
Available for sale debt securities	8,032	1,998
Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1)
Fair Value Measurements
Available for sale debt securities	11,040	21,007
Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Currency
Fair Value Measurements
Marketable securities	13	14
Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Money market mutual funds
Fair Value Measurements
Marketable securities	9,021	18,976
Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | US government and agency obligations
Fair Value Measurements
Available for sale debt securities	2,006	2,017
Recurring | Significant Other Observable Inputs (Level 2)
Fair Value Measurements
Available for sale debt securities	18,996	8,977
Recurring | Significant Other Observable Inputs (Level 2) | US government and agency obligations
Fair Value Measurements
Available for sale debt securities	10,964	6,979
Recurring | Significant Other Observable Inputs (Level 2) | Corporate debt securities and certificate of deposit
Fair Value Measurements
Available for sale debt securities	$ 8,032	$ 1,998