Nanosphere Inactive 10-Q6 Nov 132013 Q3 Quarterly reportFinancial data

Company Profile

Document_and_Entity_Informatio

Document and Entity Information	9 Months Ended
Document and Entity Information	Sep. 30, 2013	Nov. 05, 2013
Document Information [Line Items]	'	'
Document Type	'10-Q	'
Amendment Flag	'false	'
Document Period End Date	30-Sep-13	'
Document Fiscal Year Focus	'2013	'
Document Fiscal Period Focus	'Q3	'
Trading Symbol	'NSPH	'
Entity Registrant Name	'NANOSPHERE INC	'
Entity Central Index Key	'0001105184	'
Current Fiscal Year End Date	'--12-31	'
Entity Filer Category	'Non-accelerated Filer	'
Entity Common Stock, Shares Outstanding	'	75,582,606

Balance_Sheets

Balance Sheets (USD $)	Sep. 30, 2013	Dec. 31, 2012
In Thousands, unless otherwise specified	Sep. 30, 2013	Dec. 31, 2012
CURRENT ASSETS:	'	'
Cash and cash equivalents	$49,264	$33,139
Accounts receivable	1,991	1,027
Inventories	9,084	7,326
Other current assets	219	284
Total current assets	60,558	41,776
PROPERTY AND EQUIPMENT- Net	3,494	2,872
INTANGIBLE ASSETS - Net of accumulated amortization	2,490	2,733
OTHER ASSETS	310	76
TOTAL	66,852	47,457
CURRENT LIABILITIES:	'	'
Accounts payable	1,028	2,446
Accrued compensation	1,353	899
Other current liabilities	1,600	1,880
Total current liabilities	3,981	5,225
LONG-TERM LIABILITIES:	'	'
Long-term debt	11,792	'
Total liabilities	15,773	5,225
COMMITMENTS AND CONTINGENCIES	'	'
STOCKHOLDERS' EQUITY:	'	'
Common stock, $0.01 par value; 100,000,000 shares authorized; 75,625,106 and 44,040,437 shares issued and outstanding as of September 30, 2013 and December 31, 2012, respectively	756	561
Preferred stock, $0.01 par value; 10,000,000 shares authorized; no shares issued	'	'
Additional paid-in capital	424,074	388,868
Warrants to acquire common stock	246	992
Accumulated deficit	-373,997	-348,189
Total stockholders' equity	51,079	42,232
TOTAL	$66,852	$47,457

Balance_Sheets_Parenthetical

Balance Sheets (Parenthetical) (USD $)	Sep. 30, 2013	Dec. 31, 2012
Common stock, par value	$0.01	$0.01
Common stock, shares authorized	100,000,000	100,000,000
Common stock, shares issued	75,625,106	44,040,437
Common stock, shares outstanding	75,625,106	44,040,437
Preferred stock, par value	$0.01	$0.01
Preferred stock, shares authorized	10,000,000	10,000,000
Preferred stock, shares issued	'	'

Statements_of_Operations

Statements of Operations (USD $)	3 Months Ended		9 Months Ended
In Thousands, except Per Share data, unless otherwise specified	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
REVENUE:	'	'	'	'
Product sales	$2,367	$865	$6,588	$3,466
Grant and contract revenue	'	'	'	43
Total revenue	2,367	865	6,588	3,509
COSTS AND EXPENSES:	'	'	'	'
Cost of sales	1,476	639	4,282	2,436
Research and development	3,866	4,584	11,029	13,735
Sales, general, and administrative	6,085	4,403	16,514	12,624
Total costs and expenses	11,427	9,626	31,825	28,795
Loss from operations	-9,060	-8,761	-25,237	-25,286
OTHER INCOME (EXPENSE):	'	'	'	'
Foreign exchange gain (loss)	-2	-3	-5	-5
Interest expense	-369	'	-582	'
Interest income	4	15	16	42
Total other income (expense)	-367	12	-571	37
NET LOSS	($9,427)	($8,749)	($25,808)	($25,249)
Net loss per common share - basic and diluted	($0.16)	($0.16)	($0.45)	($0.54)
Weighted average number of common shares outstanding - basic and diluted	60,318	53,429	57,721	46,978

Statements_of_Cash_Flows

Statements of Cash Flows (USD $)	9 Months Ended
In Thousands, unless otherwise specified	Sep. 30, 2013	Sep. 30, 2012
CASH FLOWS FROM OPERATING ACTIVITIES:	'	'
Net loss	($25,808)	($25,249)
Adjustments to reconcile net loss to net cash used in operating activities:	'	'
Depreciation and amortization	1,526	1,926
Amortization of financing costs, accretion of debt discount and other	135	'
Share-based compensation	1,707	1,842
Changes in operating assets and liabilities:	'	'
Accounts receivable	-964	334
Inventories	-2,622	-3,327
Other current assets	65	-68
Accounts payable	-1,418	224
Accrued and other current liabilities	755	651
Net cash used in operating activities	-26,624	-23,667
CASH FLOWS FROM INVESTING ACTIVITIES:	'	'
Purchases of property and equipment	-1,041	-147
Investments in intangible assets	'	-25
Net cash used in investing activities	-1,041	-172
CASH FLOWS FROM FINANCING ACTIVITIES:	'	'
Proceeds from the issuance of debt	12,000	'
Debt issuance costs	-278	'
Proceeds from the issuance of common stock, net of offering expenses	32,630	27,082
Payment of noncurrent liability	-750	-600
Proceeds from stock option exercise	188	'
Net cash provided by financing activities	43,790	26,482
NET INCREASE IN CASH AND CASH EQUIVALENTS	16,125	2,643
CASH AND CASH EQUIVALENTS - Beginning of period	33,139	39,273
CASH AND CASH EQUIVALENTS - End of period	49,264	41,916
NONCASH INVESTING AND FINANCING ACTIVITIES:	'	'
Reclassification of inventory to (from) property and equipment	864	-205
Accrued and unpaid expenses for the issuance of common stock	$116	$118

Description_of_Business

Description of Business	9 Months Ended
Description of Business	Sep. 30, 2013
Description of Business	'
	1. Description of Business
	Nanosphere, Inc. (the “Company”) develops, manufactures and markets an advanced molecular diagnostics platform, the Verigene System, that enables simple, low cost, and highly sensitive genomic and protein testing on a single platform.
	Basis of Presentation — The accompanying unaudited condensed financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States of America and in conformity with Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by accounting principles generally accepted in the United States of America for complete financial statements. However, in the opinion of management, all adjustments, consisting only of normal recurring adjustments, unless otherwise noted herein, necessary to present fairly the results of operations, financial position and cash flows have been made. Therefore, these financial statements should be read in conjunction with the Company’s most recent audited financial statements for the year ended December 31, 2012 and notes thereto included in the Company’s Annual Report on Form 10-K. The results of operations for any interim period are not necessarily indicative of the results of operations expected for the full year.
	The accompanying financial statements have been prepared on a going-concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business.
	Deferred Financing Costs— Costs incurred to issue debt are deferred and amortized as a component of interest expense using the effective interest method over the term of the related debt agreement. Amortization expense of deferred financing costs began with the incurrence of the debt in May 2013 and was less than $0.1 million during the three and nine month periods ending September 30, 2013.
	Use of Estimates — The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the amounts reported in the financial statements and the notes thereto. The Company’s significant estimates included in the preparation of the financial statements are related to inventories, property and equipment, intangible assets and share-based compensation. Actual results could differ from those estimates.

Liquidity_and_Capital_Resource

Liquidity and Capital Resources	9 Months Ended
Liquidity and Capital Resources	Sep. 30, 2013
Liquidity and Capital Resources	'
	2. Liquidity and Capital Resources
	The Company has incurred net losses attributable to common stock of $374 million since inception, and has funded those losses primarily through the sale and issuance of equity securities and secondarily through the issuance of debt. While the Company is currently in the commercialization stage of operations, the Company has not yet achieved profitability and anticipates that it will continue to incur net losses in the foreseeable future.
	In May 2013, the Company entered into a $22 million loan agreement with Silicon Valley Bank and Oxford Finance LLC. The Company drew down $12 million of the facility and the remaining $10 million can be drawn upon achievement of certain conditions, however there can be no assurance that such conditions will be achieved. See Note 8. Debt for a detailed description of this debt agreement.
	Also in May 2013, the Company completed an underwritten public offering of 1,923,077 shares of its common stock at a public offering price of $2.60 per share. In September 2013, the Company completed an underwritten public offering of 17,250,000 shares of its common stock at a public offering price of $1.75 per share, including 2,250,000 shares issued pursuant to the underwriters’ exercise in full of their overallotment option. The Company received net proceeds from these offerings of approximately $4.7 million and $27.8 million, respectively, after deducting underwriting discount, commissions and offering expenses.
	Management believes that its current cash balances and cash resources should be sufficient to support forecasted operations through at least the next twelve months. However, the Company operates in a market that makes its prospects difficult to evaluate, and the Company may need additional debt or equity financing in the future to execute on its business plans beyond the next twelve months. Management also believes that, if necessary, it can implement plans in the short term to conserve existing cash should additional financing activities be delayed. Capital outlays and operating expenditures will occur over the next twelve months as the Company expands its infrastructure, commercialization, manufacturing, and research and development activities.

Net_Loss_Per_Common_Share

Net Loss Per Common Share	9 Months Ended
Net Loss Per Common Share	Sep. 30, 2013
Net Loss Per Common Share	'
	3. Net Loss Per Common Share
	Basic and diluted net loss per common share have been calculated in accordance with ASC Topic 260, “Earnings Per Share”, for the three and nine month periods ended September 30, 2013 and 2012. As the Company had a net loss in each of the periods presented, basic and diluted net loss per common share are the same.
	The computation of basic net loss per common share for the three and nine month periods ended September 30, 2013 and 2012 excluded 478,250 and 299,000 shares of restricted stock, respectively (see Note 6). While these restricted shares of stock are included in outstanding shares on the balance sheet, these restricted shares are excluded from basic net loss per common share in accordance with ASC Topic 260 due to the forfeiture provisions associated with these shares.
	The computations of diluted net loss per common share for the three and nine month periods ended September 30, 2013 and 2012 did not include the outstanding shares of restricted stock as well as the effects of the following options to acquire common stock and common stock warrants as the inclusion of these securities would have been antidilutive:


		Three and Nine Month Periods Ended September
		30,
		2013		2012
	Restricted stock		478,250		299,000
	Restricted stock units		220,000		—
	Stock options		6,068,489		6,049,488
	Common stock warrants		136,019		164,925

			6,902,758		6,513,373

Intangible_Assets

Intangible Assets	9 Months Ended
Intangible Assets	Sep. 30, 2013
Intangible Assets	'
	4. Intangible Assets
	Intangible assets, consisting of purchased intellectual property, as of September 30, 2013 and December 31, 2012 comprise the following (in thousands):


		September 30, 2013							December 31, 2012
		Cost		Accumulated			Net		Cost		Accumulated			Net
		Cost		Amortization			Net		Cost		Amortization			Net
	Intellectual property—licenses	$	4,061	$	(1,878	)	$	2,183	$	4,061	$	(1,660	)	$	2,401
	Patents		455		(148	)		307		455		(123	)		332

		$	4,516	$	(2,026	)	$	2,490	$	4,516	$	(1,783	)	$	2,733

	Amortization expense for intangible assets was $0.1 million and $0.2 million for the three and nine month periods ended September 30, 2013, respectively, and was $0.1 million and $0.2 million for the three and nine month periods ended September 30, 2012. Estimated future amortization expense is as follows:


	Years Ending December 31
	2013 (Period from October 1 to December 31)	$	81
	2014		325
	2015		320
	2016		308
	2017		291
	Thereafter		1,165
	Licenses are amortized from the date of initial use of the licensed technology and such amortization continues over the remaining life of the license. The future amortization expense reflected above is based on licenses for which the licensed technology is being used as of September 30, 2013.

Related_Party_Transactions

Related Party Transactions	9 Months Ended
Related Party Transactions	Sep. 30, 2013
Related Party Transactions	'
	5. Related Party Transactions
	Dr. Chad Mirkin, a co-founder of the Company, provided contracted research and development services to the Company through May 31, 2013 and was reimbursed for these services based upon negotiated contract rates. On March 27, 2013, the Company advised Dr. Mirkin that his consulting agreement would not be renewed and would expire pursuant to its terms on May 31, 2013. On April 22, 2013, Dr. Mirkin advised the Company that he would not stand for re-election to the Company’s board of directors at the 2013 annual meeting and would retire from the board of directors at the expiration of his term. The Company incurred expenses of $0.1 million for these services in each of the nine month periods ended September 30, 2013 and 2012, and incurred expenses of less than $0.1 million in the three month period ended September 30, 2012.
	In October 2013, the Company entered into a consulting agreement with Dr. Gene Cartwright, a director of the Company, to assist in evaluating and reformulating the Company’s strategic and operating plans.

Equity_Incentive_Plan

Equity Incentive Plan	9 Months Ended
Equity Incentive Plan	Sep. 30, 2013
Equity Incentive Plan	'
	6. Equity Incentive Plan

	The Company’s board of directors has adopted and the shareholders have approved the Nanosphere 2000 Equity Incentive Plan (the “2000 Plan”) and the Nanosphere 2007 Long-Term Incentive Plan (the “2007 Plan”). The plans authorize the compensation committee to grant stock options, share appreciation rights, restricted shares, restricted share units, unrestricted shares, incentive stock options, deferred share units and performance awards. Option awards are generally granted with an exercise price equal to or above the fair value of the Company’s common stock at the date of grant with ten year contractual terms. Certain options vest ratably over four years of service, while other options cliff vest after seven years of service but provide for accelerated vesting contingent upon the achievement of various company-wide performance goals, such as decreasing time to market for new products and entering into corporate collaborations (as defined in the option grant agreements). For these “accelerated vesting” options, 20-25% of the granted option shares will vest upon the achievement of each of four or five milestones as defined in the option grant agreements, with any remaining unvested options vesting on the seven year anniversary of the option grant dates. Approximately 17% of the options granted and outstanding contain “accelerated vesting” provisions. The fair values of the Company’s option awards granted during the nine month period ended September 30, 2013 were estimated at the dates of grant using the Black-Scholes option pricing model with the following assumptions:




	Expected dividend yield		0	%
	Expected volatility		86	%
	Risk free interest rate		0.98	%
	Weighted-average expected option life		5.99 years
	Estimated weighted-average fair value on the date of grant based on the above assumptions	$	1.99
	Estimated forfeiture rate for unvested options		24.9	%
	The expected volatility for option awards granted in 2013 was based on the Company’s actual historical volatility. The risk-free rate is based on the U.S. Treasury yield curve in effect at the time of the grants for periods consistent with the expected life of the option. The expected life of options that vest ratably over four years of service is derived from the average of the vesting period and the term of the option as defined in the Plans, following the guidance in Securities and Exchange Commission (“SEC”) Staff Accounting Bulletin Nos. 107 and 110. The Company estimates the expected life of options with accelerated vesting terms giving consideration to the dates that the Company expects to achieve key milestones under the option agreements and the term of the option.

	Total compensation cost recognized for all stock option awards was $0.4 million and $1.1 million in the three and nine month periods ended September 30, 2013, respectively, and $0.7 million and $1.8 million for the three and nine month periods ended September 30, 2012, respectively.

	As of September 30, 2013, the total compensation cost not yet recognized related to the nonvested stock option awards is approximately $4.5 million, which amount is expected to be recognized over the next three years, with a weighted average term of 1.85 years. Certain milestone events are deemed probable of achievement prior to their seven year vesting term, and the acceleration of vesting resulting from the achievement of such milestone events has been factored into the weighted average vesting term. While the Company does not have a formally established policy, as a practice the Company has delivered newly issued shares of its common stock upon the exercise of stock options.



	A summary of option activity under the plans as of September 30, 2013, and for the nine month period then ended is presented below:




	Options	Number of			Weighted		Weighted		Aggregate
		Shares			Average		Average		Intrinsic
					Exercise		Remaining		Value of Options
					Price		Contractual
							Term
	Outstanding — January 1, 2013		5,999,875		$	3.99
	Granted		1,291,164		$	2.78
	Exercised		(106,265	)	$	1.62
	Expired		(376,272	)	$	6.06
	Forfeited		(740,013	)	$	3.9

	Outstanding — September 30, 2013		6,068,489		$	3.66		6.7	$	598,003

	Exercisable — September 30, 2013		3,344,895		$	4.38		5.22	$	364,031

	Vested and Expected to Vest—September 30, 2013		5,943,204		$	3.67		6.66	$	587,241

	There were 106,265 options exercised in the nine month period ended September 30, 2013 and no options were exercised in the nine month period ended September 30, 2012.

	Included in the number of options outstanding at September 30, 2013 are 1,008,261 options with a weighted average exercise price of $5.26 per share and accelerated vesting provisions based on the criteria mentioned above. The total fair value of shares vested during the three and nine month periods ended September 30, 2013 was $0.2 million and $1.0 million, respectively, and was $0.1 million and $1.2 million for the three and nine month periods ended September 30, 2012, respectively.

	In April 2013 the Board granted equity compensation awards to certain executives consisting of stock options to purchase 1,100,000 shares of common stock that vest in four equal annual installments commencing in April 2014, and restricted share units (“RSUs”) pursuant to which the executives may receive 220,000 shares of common stock upon the attainment by the Company of certain performance goals in 2013.

	As of January 1, 2013, there were 299,000 shares of restricted stock outstanding under the 2007 Plan and during the nine month period ended September 30, 2013, 84,673 shares were forfeited and 340,000 additional shares of restricted stock were granted. There were 76,077 shares that vested during the nine month period ended September 30, 2013. Of the 478,250 total unvested restricted shares, 143,250 vest 50% on the two-year anniversary of the grant date and are subject to forfeiture until vested and vest 50% on the four-year anniversary of the grant date and are subject to forfeiture until vested. The remaining 335,000 restricted shares vest 50% on December 1, 2013 and are subject to forfeiture until vested and vest 50% on December 1, 2014 and are subject to forfeiture until vested. The Company recognized $0.3 million and $0.6 million in restricted stock compensation expense during the three and nine month periods ended September 30, 2013 and recognized $0.1 million and $0.3 million during the three and nine month periods ended September 30, 2012. As of September 30, 2013, the total compensation cost not yet recognized related to the nonvested restricted stock awards was approximately $1.0 million, which amount is expected to be recognized over a weighted average term of .6 year.

License_Agreements

License Agreements	9 Months Ended
License Agreements	Sep. 30, 2013
License Agreements	'
	7. License Agreements
	The Company has entered into several nonexclusive license agreements with various companies covering certain technologies which are embedded in the Company’s diagnostic instruments and diagnostic test products. As of September 30, 2013, the Company has paid aggregate initial license fees of $4.6 million for these licenses, and has agreed to pay a percentage of net sales as royalties, in percentage amounts ranging from less than 1.0% to 12.0%. These initial license fees were capitalized as intangible assets (see Note 4). Certain of the license agreements have minimum annual royalty payments, and such minimum payments are $0.2 million in each of the fiscal years 2013, 2014 and 2015 and are less than $0.1 million annually thereafter through the dates the respective licenses terminate. These licenses expire at various times, corresponding to the subject patents expirations, which currently range from 2015 to 2027.

Debt

Debt	9 Months Ended
Debt	Sep. 30, 2013
Debt	'
	8. Debt
	On May 6, 2013, the Company entered into a $22 million Loan and Security Agreement with Silicon Valley Bank and Oxford Finance LLC (together, the “Lenders”) for a loan (the “Loan Agreement”). The Company drew down $12 million of the facility on May 6, 2013 evidenced by secured promissory notes (the “Notes”) executed by the Company. The remaining $10 million of the facility can be drawn between December 1, 2013 and April 30, 2014 and then only if Nanosphere achieves revenues from product sales in excess of $13.8 million for a rolling 12-month period ending no later than February, 2014, and achieves certain other conditions.

	The loans are secured by substantially all of the assets of the Company.
	Under the Loan Agreement, the Company will repay interest only on a monthly basis for the first 12 months and thereafter the Company will repay the principal and interest on a monthly basis for 36 months through the maturity date. If the second loan is drawn by the Company, the Company has the option to extend the interest only period another 12 months followed by the 36 months of principal and interest amortization period. Interest on the first loan is fixed at 9.25% per annum and interest on the second loan, if drawn, will be a fixed rate determined based on the LIBOR plus a spread, but in no event less than 9.25% per annum.
	The term of the initial loan is four years and extends to five years if the second loan is received. The term of the second loan, if received, will be four years from the date received. The facility fee paid for the first loan was $120,000 with another $100,000 due upon the earlier of the funding of the second loan or the maturity, acceleration or prepayment of the first loan. The Loan Agreement also requires an additional loan fee of $240,000 (2% of the amount borrowed) payable at the maturity, acceleration or prepayment of the first loan. If the second loan is drawn, the Loan Agreement requires an additional loan fee of $200,000 (2% of the amount borrowed) payable at the maturity, acceleration or prepayment of the second loan. If the second loan is drawn and Nanosphere elects to extend the interest only period, an additional loan fee of $440,000 (an additional 2% on the entire loan balance) would be payable at the maturity, acceleration or prepayment of the loan.
	The Loan Agreement contains customary events of default, including among others, nonpayment of principal, interest, fees or other amounts; material inaccuracy of representations; violation of covenants; and certain bankruptcy events. If an event of default occurs under the Loan Agreement, the entire outstanding balance under the Loan Agreement may become immediately due and payable.
	In connection with the Loan Agreement and as partial consideration for the issuance of the loan thereunder, the Company issued warrants to the Lenders to acquire 136,019 shares of the Company’s common stock with an exercise price of $2.6467.

Stockholders_Equity

Stockholders' Equity	9 Months Ended
Stockholders' Equity	Sep. 30, 2013
Stockholders' Equity	'
	9. Stockholders’ Equity
	As of September 30, 2013, there were outstanding warrants to acquire 136,019 shares of common stock at an exercise price of $2.6467 per share and an expiration date of May 6, 2020. These warrants were issued to Silicon Valley Bank and Oxford Finance LLC in connection with the May 6, 2013 loan agreement described in Note 8. Debt. In accordance with GAAP, the Company accounts for the warrants as equity instruments. The Company estimated the initial fair value of the warrants issued to be $0.2 million using the Black-Scholes pricing model with the following assumptions: closing price per share of common stock of $2.65, volatility of 74.15%, expected term of 7 years, risk-free interest rate of 0.97% and dividend yield of zero.
	As of December 31, 2012, there were outstanding warrants to purchase 164,925 shares of common stock. These warrants with an exercise price of $8.75 per share expired unexercised in April 2013.

Commitments_and_Contingencies

Commitments and Contingencies	9 Months Ended
	Sep. 30, 2013
Commitments and Contingencies	'
	10. Commitments and Contingencies
	Rent and operating expenses associated with the office and laboratory space were $0.2 million and $0.4 million for the three and nine month periods ended September 30, 2013, respectively, and $0.2 million and $0.5 million for the three and nine month periods ended September 30, 2012, respectively.
	Annual future minimum obligations for the operating leases as of September 30, 2013, are as follows (in thousands):


	Years Ending December 31	Operating
		Lease
	2013 (Period from October 1 to December 31)	$	117
	2014		195

	Total minimum lease payments	$	312

Supplemental_Financial_Informa

Supplemental Financial Information	9 Months Ended
Supplemental Financial Information	Sep. 30, 2013
Supplemental Financial Information	'
	11. Supplemental Financial Information
	Inventories:


		September 30, 2013			December 31, 2012
		(in thousands)
	Raw materials	$	2,468		$	1,910
	Work-in-process		37			300
	Finished goods		6,579			5,116

	Total	$	9,084		$	7,326

	Property and Equipment – Net:



		September 30, 2013			December 31, 2012
		(in thousands)
	Total property and equipment — at cost	$	21,293		$	19,626
	Less accumulated depreciation		(17,799	)		(16,754	)

	Property and equipment—net	$	3,494		$	2,872

	Other Current Liabilities:



		September 30, 2013			December 31, 2012
		(in thousands)
	Accrued clinical trial expenses	$	360		$	205
	Accrued license fees		91			855
	All other		1,149			820

	Total	$	1,600		$	1,880

Description_of_Business_Polici

Description of Business (Policies)	9 Months Ended
	Sep. 30, 2013
Basis of Presentation	'
	Basis of Presentation — The accompanying unaudited condensed financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States of America and in conformity with Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by accounting principles generally accepted in the United States of America for complete financial statements. However, in the opinion of management, all adjustments, consisting only of normal recurring adjustments, unless otherwise noted herein, necessary to present fairly the results of operations, financial position and cash flows have been made. Therefore, these financial statements should be read in conjunction with the Company’s most recent audited financial statements for the year ended December 31, 2012 and notes thereto included in the Company’s Annual Report on Form 10-K. The results of operations for any interim period are not necessarily indicative of the results of operations expected for the full year.
	The accompanying financial statements have been prepared on a going-concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business.
Deferred Financing Costs	'
	Deferred Financing Costs— Costs incurred to issue debt are deferred and amortized as a component of interest expense using the effective interest method over the term of the related debt agreement. Amortization expense of deferred financing costs began with the incurrence of the debt in May 2013 and was less than $0.1 million during the three and nine month periods ending September 30, 2013.
Use of Estimates	'
	Use of Estimates — The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the amounts reported in the financial statements and the notes thereto. The Company’s significant estimates included in the preparation of the financial statements are related to inventories, property and equipment, intangible assets and share-based compensation. Actual results could differ from those estimates.

Net_Loss_Per_Common_Share_Tabl

Net Loss Per Common Share (Tables)	9 Months Ended
Net Loss Per Common Share (Tables)	Sep. 30, 2013
Antidilutive Common Stock and Common Stock Warrants	'
	The computations of diluted net loss per common share for the three and nine month periods ended September 30, 2013 and 2012 did not include the outstanding shares of restricted stock as well as the effects of the following options to acquire common stock and common stock warrants as the inclusion of these securities would have been antidilutive:


		Three and Nine Month Periods Ended September
		30,
		2013		2012
	Restricted stock		478,250		299,000
	Restricted stock units		220,000		—
	Stock options		6,068,489		6,049,488
	Common stock warrants		136,019		164,925

			6,902,758		6,513,373

Intangible_Assets_Tables

Intangible Assets (Tables)	9 Months Ended
Intangible Assets (Tables)	Sep. 30, 2013
Schedule of Intangible Assets, Consisting of Purchased Intellectual Property	'
	Intangible assets, consisting of purchased intellectual property, as of September 30, 2013 and December 31, 2012 comprise the following (in thousands):


		September 30, 2013							December 31, 2012
		Cost		Accumulated			Net		Cost		Accumulated			Net
		Cost		Amortization			Net		Cost		Amortization			Net
	Intellectual property—licenses	$	4,061	$	(1,878	)	$	2,183	$	4,061	$	(1,660	)	$	2,401
	Patents		455		(148	)		307		455		(123	)		332

		$	4,516	$	(2,026	)	$	2,490	$	4,516	$	(1,783	)	$	2,733

Schedule of Estimated Future Amortization Expense	'
	Estimated future amortization expense is as follows:


	Years Ending December 31
	2013 (Period from October 1 to December 31)	$	81
	2014		325
	2015		320
	2016		308
	2017		291
	Thereafter		1,165

Equity_Incentive_Plan_Tables

Equity Incentive Plan (Tables)	9 Months Ended
Equity Incentive Plan (Tables)	Sep. 30, 2013
Assumptions Used Fair Value of Option Awards Granted Using Black-Scholes Option Pricing Model	'
	The fair values of the Company’s option awards granted during the nine month period ended September 30, 2013 were estimated at the dates of grant using the Black-Scholes option pricing model with the following assumptions:


	Expected dividend yield		0	%
	Expected volatility		86	%
	Risk free interest rate		0.98	%
	Weighted-average expected option life		5.99 years
	Estimated weighted-average fair value on the date of grant based on the above assumptions	$	1.99
	Estimated forfeiture rate for unvested options		24.9	%
Summary of Option Activity	'
	A summary of option activity under the plans as of September 30, 2013, and for the nine month period then ended is presented below:




	Options	Number of			Weighted		Weighted		Aggregate
		Shares			Average		Average		Intrinsic
					Exercise		Remaining		Value of Options
					Price		Contractual
							Term
	Outstanding — January 1, 2013		5,999,875		$	3.99
	Granted		1,291,164		$	2.78
	Exercised		(106,265	)	$	1.62
	Expired		(376,272	)	$	6.06
	Forfeited		(740,013	)	$	3.9

	Outstanding — September 30, 2013		6,068,489		$	3.66		6.7	$	598,003

	Exercisable — September 30, 2013		3,344,895		$	4.38		5.22	$	364,031

	Vested and Expected to Vest—September 30, 2013		5,943,204		$	3.67		6.66	$	587,241

Commitments_and_Contingencies_

Commitments and Contingencies (Tables)	9 Months Ended
Commitments and Contingencies (Tables)	Sep. 30, 2013
Annual Future Minimum Obligations for the Operating Leases	'
	Annual future minimum obligations for the operating leases as of September 30, 2013, are as follows (in thousands):


	Years Ending December 31	Operating
	Years Ending December 31	Lease
	2013 (Period from October 1 to December 31)	$	117
	2014		195

	Total minimum lease payments	$	312

Supplemental_Financial_Informa1

Supplemental Financial Information (Tables)	9 Months Ended
Supplemental Financial Information (Tables)	Sep. 30, 2013
Inventories	'
	Inventories:


		September 30, 2013			December 31, 2012
		(in thousands)
	Raw materials	$	2,468		$	1,910
	Work-in-process		37			300
	Finished goods		6,579			5,116

	Total	$	9,084		$	7,326

Property and Equipment-Net	'
	Property and Equipment – Net:



		September 30, 2013			December 31, 2012
		(in thousands)
	Total property and equipment — at cost	$	21,293		$	19,626
	Less accumulated depreciation		(17,799	)		(16,754	)

	Property and equipment—net	$	3,494		$	2,872

Other Current Liabilities	'
	Other Current Liabilities:



		September 30, 2013			December 31, 2012
		(in thousands)
	Accrued clinical trial expenses	$	360		$	205
	Accrued license fees		91			855
	All other		1,149			820

	Total	$	1,600		$	1,880

Description_of_Business_Additi

Description of Business - Additional Information (Detail) (Maximum, USD $)	3 Months Ended	9 Months Ended
In Millions, unless otherwise specified	Sep. 30, 2013	Sep. 30, 2013
Maximum	'	'
Organization Consolidation And Presentation Of Financial Statements [Line Items]	'	'
Amortization of deferred financing costs	$0.10	$0.10

Liquidity_and_Capital_Resource1

Liquidity and Capital Resources - Additional Information (Detail) (USD $)	9 Months Ended			1 Months Ended	9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	6-May-13	31-May-13	Sep. 30, 2013	Sep. 30, 2013
				Underwritten Public Offering	Underwritten Public Offering	Underwritten Public Offering
						Underwriters over allotment option exercised in full
Subsidiary, Sale of Stock [Line Items]	'	'	'	'	'	'
Net losses attributable to common stock since inception	$374,000,000	'	'	'	'	'
Debt facility, agreement amount	'	'	22,000,000	'	'	'
Debt facility, drawn immediately	'	'	12,000,000	'	'	'
Debt facility, remaining borrowing capacity	'	'	10,000,000	'	'	'
Shares of common stock in underwritten public offering	'	'	'	1,923,077	17,250,000	2,250,000
Public offering price	$2.65	'	'	$2.60	$1.75	'
Net proceeds from the offering	$32,630,000	$27,082,000	'	$4,700,000	$27,800,000	'

Net_Loss_Per_Common_Share_Addi

Net Loss Per Common Share - Additional Information (Detail)	3 Months Ended		9 Months Ended
Net Loss Per Common Share - Additional Information (Detail)	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]	'	'	'	'
Shares excluded from computation of basic net loss per common share	6,902,758	6,513,373	6,902,758	6,513,373
Restricted stock	'	'	'	'
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]	'	'	'	'
Shares excluded from computation of basic net loss per common share	478,250	299,000	478,250	299,000

Net_Loss_Per_Common_Share_Deta

Net Loss Per Common Share (Detail)	3 Months Ended		9 Months Ended
Net Loss Per Common Share (Detail)	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]	'	'	'	'
Antidilutive common stock and common stock warrants	6,902,758	6,513,373	6,902,758	6,513,373
Restricted stock	'	'	'	'
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]	'	'	'	'
Antidilutive common stock and common stock warrants	478,250	299,000	478,250	299,000
Restricted stock units	'	'	'	'
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]	'	'	'	'
Antidilutive common stock and common stock warrants	220,000	'	220,000	'
Stock options	'	'	'	'
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]	'	'	'	'
Antidilutive common stock and common stock warrants	6,068,489	6,049,488	6,068,489	6,049,488
Common stock warrants	'	'	'	'
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]	'	'	'	'
Antidilutive common stock and common stock warrants	136,019	164,925	136,019	164,925

Intangible_Assets_Detail

Intangible Assets (Detail) (USD $)	Sep. 30, 2013	Dec. 31, 2012
In Thousands, unless otherwise specified	Sep. 30, 2013	Dec. 31, 2012
Finite-Lived Intangible Assets [Line Items]	'	'
Cost	$4,516	$4,516
Accumulated Amortization	-2,026	-1,783
Net	2,490	2,733
Intellectual property - licenses	'	'
Finite-Lived Intangible Assets [Line Items]	'	'
Cost	4,061	4,061
Accumulated Amortization	-1,878	-1,660
Net	2,183	2,401
Patents	'	'
Finite-Lived Intangible Assets [Line Items]	'	'
Cost	455	455
Accumulated Amortization	-148	-123
Net	$307	$332

Intangible_Assets_Additional_I

Intangible Assets - Additional Information (Detail) (USD $)	3 Months Ended		9 Months Ended
In Millions, unless otherwise specified	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
Finite-Lived Intangible Assets [Line Items]	'	'	'	'
Amortization expense for intangible assets	$0.10	$0.10	$0.20	$0.20

Estimated_Future_Amortization_

Estimated Future Amortization Expenses (Detail) (USD $)	Sep. 30, 2013
In Thousands, unless otherwise specified	Sep. 30, 2013
Schedule Of Estimated Future Amortization Expense [Line Items]	'
2013 (Period from October 1 to December 31)	$81
2014	325
2015	320
2016	308
2017	291
Thereafter	$1,165

Related_Party_Transactions_Add

Related Party Transactions - Additional Information (Detail) (Dr. Chad Mirkin, Research and Development Expense, USD $)	9 Months Ended		3 Months Ended
In Millions, unless otherwise specified	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2012
	Sep. 30, 2013	Sep. 30, 2012	Maximum
Related Party Transaction [Line Items]	'	'	'
Related party transaction, expenses incurred	$0.10	$0.10	$0.10

Equity_Incentive_Plan_Addition

Equity Incentive Plan - Additional Information (Detail) (USD $)

3 Months Ended

9 Months Ended

1 Months Ended

9 Months Ended

In Millions, except Share data, unless otherwise specified

Sep. 30, 2013

Sep. 30, 2012

Sep. 30, 2013

Sep. 30, 2012

Sep. 30, 2013

Apr. 30, 2013

Sep. 30, 2013

Jan. 31, 2013

Sep. 30, 2013

Minimum

Maximum

Equity Option

Restricted Stock Units (RSUs)

Restricted stock

Upon achievement of each of four or five milestones

Equity Incentive Plan 2000

Equity Incentive Plan 2007

Minimum

Maximum

Restricted stock

50% on the two-year anniversary and 50% on the four year anniversary

50% on December 1, 2013 and 50% on December 1, 2014

1-Dec-13

1-Dec-14

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Option awards contractual terms

'10 years

Accelerated vesting options

20.00%

25.00%

Equity awards, vesting period

'4 years

'7 years

Percentage of options granted and outstanding with accelerated vesting provisions

17.00%

Total compensation cost associated with option awards

$0.40

$0.70

$1.10

$1.80

Total compensation cost not yet recognized

4.5

Unrecognized share based compensation recognition period

'3 years

'7 months 6 days

Milestone vesting term

'7 years

Weighted average term remains

'1 year 10 months 6 days

Options exercised

106,265

Number of Options Outstanding with accelerated vesting provisions

1,008,261

Weighted average exercise options with accelerated vesting provisions

$5.26

Total fair value of shares, vested

0.2

0.1

1.2

Stock options to purchase shares of common stock granted

1,100,000

220,000

Restricted stock, granted

299,000

340,000

Restricted stock, forfeited

84,673

Restricted stock vesting percentage on the two-year anniversary

50.00%

Restricted stock vesting percentage on the four-year anniversary

50.00%

Restricted stock, vested and expected to vest

478,250

Restricted stock, expected to vest

143,250

335,000

Restricted stock vesting percentage

50.00%

Restricted stock, vested

76,077

Restricted stock compensation expense

0.3

0.1

0.6

0.3

Total compensation cost not yet recognized, non vested restricted stock

Assumptions_Used_for_Fair_Valu

Assumptions Used for Fair Value of Option Awards Granted Using Black-Scholes Option Pricing Model (Detail) (USD $)	9 Months Ended
	Sep. 30, 2013
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]	'
Expected dividend yield	0.00%
Expected volatility	86.00%
Risk free interest rate	0.98%
Weighted-average expected option life	'5 years 11 months 27 days
Estimated weighted-average fair value on the date of grant based on the above assumptions	$1.99
Estimated forfeiture rate for unvested options	24.90%

Summary_of_Option_Activity_Det

Summary of Option Activity (Detail) (USD $)	9 Months Ended
Summary of Option Activity (Detail) (USD $)	Sep. 30, 2013	Sep. 30, 2012
Number of Shares	'	'
Outstanding - January 1, 2013	5,999,875	'
Granted	1,291,164	'
Exercised	-106,265	0
Expired	-376,272	'
Forfeited	-740,013	'
Outstanding - September 30, 2013	6,068,489	'
Exercisable - September 30, 2013	3,344,895	'
Vested and Expected to Vest - September 30, 2013	5,943,204	'
Weighted Average Exercise Price	'	'
Outstanding - January 1, 2013	$3.99	'
Granted	$2.78	'
Exercised	$1.62	'
Expired	$6.06	'
Forfeited	$3.90	'
Outstanding - September 30, 2013	$3.66	'
Exercisable - September 30, 2013	$4.38	'
Vested and Expected to Vest - September 30, 2013	$3.67	'
Weighted Average Remaining Contractual Term	'	'
Outstanding - September 30, 2013	'6 years 8 months 12 days	'
Exercisable - September 30, 2013	'5 years 2 months 19 days	'
Vested and Expected to Vest - September 30, 2013	'6 years 7 months 28 days	'
Aggregate Intrinsic Value of Options	'	'
Outstanding - September 30, 2013	$598,003	'
Exercisable - September 30, 2013	364,031	'
Vested and Expected to Vest - September 30, 2013	$587,241	'

License_Agreements_Additional_

License Agreements - Additional Information (Detail) (USD $)	9 Months Ended
In Millions, unless otherwise specified	Sep. 30, 2013
Finite-Lived Intangible Assets [Line Items]	'
License fees	4.6
Minimum annual royalty payments, 2013	0.2
Minimum annual royalty payments, 2014	0.2
Minimum annual royalty payments, 2015	0.2
Minimum	'
Finite-Lived Intangible Assets [Line Items]	'
Royalty percentage paid	1.00%
License agreement, expiration date	'2015
Maximum	'
Finite-Lived Intangible Assets [Line Items]	'
Royalty percentage paid	12.00%
License agreement, expiration date	'2027
Less Than	'
Finite-Lived Intangible Assets [Line Items]	'
Minimum annual royalty payments, thereafter	0.1

Debt_Additional_Information_De

Debt - Additional Information (Detail) (USD $)

1 Months Ended

9 Months Ended

1 Months Ended

9 Months Ended

31-May-13

Sep. 30, 2013

6-May-13

Sep. 30, 2013

Apr. 30, 2013

Sep. 30, 2013

6-May-13

Sep. 30, 2013

additional loan fee payable at the maturity, acceleration or prepayment of the first loan

Common stock warrants

Initial loan

Second loan

due upon the earlier of the funding of the second loan or the maturity, acceleration or prepayment of the first loan

additional loan fee payable at the maturity, acceleration or prepayment of the second loan

interest only period is extended and additional loan fee payable at the maturity, acceleration or prepayment of the loan of the second loan

Debt Instrument [Line Items]

Debt facility, agreement amount

$22,000,000

Debt facility, outstanding amount

12,000,000

Debt facility, remaining borrowing capacity

10,000,000

Debt facility, Initial available date

1-Dec-13

Debt facility, final available date

30-Apr-14

Minimum revenue required to be achieved in rolling 12-month period

13,800,000

Debt facility, covenants

'The remaining $10 million of the facility can be drawn between December 1, 2013 and April 30, 2014 and then only if Nanosphere achieves revenues from product sales in excess of $13.8 million for a rolling 12-month period ending no later than February, 2014, and achieves certain other conditions.

Debt repayment description

'Under the Loan Agreement, the Company will repay interest only on a monthly basis for the first 12 months and thereafter the Company will repay the principal and interest on a monthly basis for 36 months through the maturity date. If the second loan is drawn by the Company, the Company has the option to extend the interest only period another 12 months followed by the 36 months of principal and interest amortization period.

Interest rate on borrowings

9.25%

Interest rate on borrowings, Minimum

9.25%

Debt Instrument, Term

'4 years

Debt Instrument, Extended term

'5 years

Facility fee description

'The facility fee paid for the first loan was $120,000 with another $100,000 due upon the earlier of the funding of the second loan or the maturity, acceleration or prepayment of the first loan.

Debt, facility fee

$240,000

$120,000

$100,000

$200,000

$440,000

Additional loan fee, Percentage

2.00%

Warrants issued to lenders to acquire shares

136,019

Warrants issued to lenders to acquire shares, Exercise price

2.6467

8.75

Stockholders_Equity_Additional

Stockholders' Equity - Additional Information (Detail) (USD $)	9 Months Ended		1 Months Ended
In Thousands, except Share data, unless otherwise specified	Sep. 30, 2013	Dec. 31, 2012	Apr. 30, 2013	Sep. 30, 2013
	Sep. 30, 2013	Dec. 31, 2012	Common stock warrants	Common stock warrants
Class of Warrant or Right [Line Items]	'	'	'	'
Number of Warrants	136,019	'	'	'
Common - exercise price per share	$2.65	'	'	'
Warrant expiration month	6-May-20	'	'	'
Fair value of warrants outstanding	$246	$992	'	'
Fair value assumption , closing price per share	$2.65	'	'	'
Fair value assumption, volatility rate	74.15%	'	'	'
Fair value assumption, expected term	'7 years	'	'	'
Fair value assumption, risk free rate	0.97%	'	'	'
Fair value assumption, dividend yield	0.00%	'	'	'
Common stock warrants, expired	'	'	164,925	'
Common stock warrants, exercise price per share	'	'	8.75	2.6467

Commitments_and_Contingencies_1

Commitments and Contingencies - Additional Information (Detail) (USD $)	3 Months Ended		9 Months Ended
In Millions, unless otherwise specified	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
Commitment And Contingencies [Line Items]	'	'	'	'
Rent and operating expenses associated with office and laboratory space	$0.20	$0.20	$0.40	$0.50

Annual_Future_Minimum_Obligati

Annual Future Minimum Obligations for Operating Leases (Detail) (USD $)	Sep. 30, 2013
In Thousands, unless otherwise specified	Sep. 30, 2013
Schedule of Operating Leases [Line Items]	'
2013 (Period from October 1 to December 31)	$117
2014	195
Total minimum lease payments	$312

Inventories_Detail

Inventories (Detail) (USD $)	Sep. 30, 2013	Dec. 31, 2012
In Thousands, unless otherwise specified	Sep. 30, 2013	Dec. 31, 2012
Supplemental Financial Information [Line Items]	'	'
Raw materials	$2,468	$1,910
Work-in-process	37	300
Finished goods	6,579	5,116
Total	$9,084	$7,326

Property_and_EquipmentNet_Deta

Property and Equipment-Net (Detail) (USD $)	Sep. 30, 2013	Dec. 31, 2012
In Thousands, unless otherwise specified	Sep. 30, 2013	Dec. 31, 2012
Property, Plant and Equipment [Line Items]	'	'
Total property and equipment - at cost	$21,293	$19,626
Less accumulated depreciation	-17,799	-16,754
Property and equipment - net	$3,494	$2,872

Other_Current_Liabilities_Deta

Other Current Liabilities (Detail) (USD $)	Sep. 30, 2013	Dec. 31, 2012
In Thousands, unless otherwise specified	Sep. 30, 2013	Dec. 31, 2012
Supplemental Financial Information [Line Items]	'	'
Accrued clinical trial expenses	$360	$205
Accrued license fees	91	855
All other	1,149	820
Total	$1,600	$1,880