Cutera (CUTR) 10-K 15 Mar 16 2015 FY Annual report Financial data

Document And Entity Information

Document And Entity Information - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2015	Feb. 29, 2016	Jun. 30, 2015
Entity Registrant Name	CUTERA INC
Entity Central Index Key	1,162,461
Trading Symbol	cutr
Current Fiscal Year End Date	--12-31
Entity Filer Category	Accelerated Filer
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Well-known Seasoned Issuer	No
Entity Common Stock, Shares Outstanding (in shares)		12,992,503
Entity Public Float			$ 116
Document Type	10-K
Document Period End Date	Dec. 31, 2015
Document Fiscal Year Focus	2,015
Document Fiscal Period Focus	FY
Amendment Flag	false

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Current assets:
Cash and cash equivalents	$ 10,868	$ 9,803
Marketable securities	37,539	71,343
Accounts receivable, net of allowance for doubtful accounts of $4 and $0, respectively	11,669	11,137
Inventories	$ 12,078	10,988
Deferred tax assets		26
Other current assets and prepaid expenses	$ 1,675	1,591
Total current assets	73,829	104,888
Property and equipment, net	1,473	1,461
Deferred tax assets, net of current portion	350	269
Intangibles, net	143	595
Goodwill	1,339	1,339
Other long-term assets	384	361
Total assets	77,518	108,913
Current liabilities:
Accounts payable	1,959	3,083
Accrued liabilities	13,834	11,007
Deferred revenue	8,638	8,898
Total current liabilities	24,431	22,988
Deferred revenue, net of current portion	2,287	4,346
Income tax liability	182	145
Other long-term liabilities	584	926
Total liabilities	$ 27,484	$ 28,405
Commitments and contingencies (Note 11)
Convertible preferred stock, $0.001 par value:
Authorized: 5,000,000 shares; Issued and outstanding: none
Common stock, $0.001 par value:
Authorized: 50,000,000 shares; Issued and outstanding: 12,980,807 and 14,446,950 shares at December 31, 2015 and 2014, respectively	$ 13	$ 14
Additional paid-in capital	79,782	105,721
Accumulated deficit	(29,672)	(25,232)
Accumulated other comprehensive income	(89)	5
Total stockholders’ equity	50,034	80,508
Total liabilities and stockholders’ equity	$ 77,518	$ 108,913

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parentheticals) - USD ($)	Dec. 31, 2015	Dec. 31, 2014
Convertible Preferred Stock [Member]
Convertible preferred stock, par value (in dollars per share)	$ 0.001	$ 0.001
Convertible preferred stock, authorized (in shares)	5,000,000	5,000,000
Convertible preferred stock, issued (in shares)	0	0
Convertible preferred stock, outstanding (in shares)	0	0
Accounts receivable, allowance for doubtful accounts	$ 4,000	$ 0
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, authorized (in shares)	50,000,000	50,000,000
Common stock, issued (in shares)	12,980,807	14,446,950
Common stock, outstanding (in shares)	12,980,807	14,446,950

Consolidated Statements of Oper

Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Net revenue:
Products	$ 77,022	$ 60,299	$ 56,905
Sales Revenue, Services, Net	17,739	17,839	17,689
Total net revenue	94,761	78,138	74,594
Cost of revenue:
Products	32,402	26,796	24,179
Service	8,076	7,969	8,533
Total cost of revenue	40,478	34,765	32,712
Gross profit	54,283	43,373	41,882
Operating expenses:
Sales and marketing	35,942	32,246	27,984
Research and development	10,733	10,543	9,216
General and administrative	12,129	11,203	9,938
Total operating expenses	58,804	53,992	47,138
Loss from operations	(4,521)	(10,619)	(5,256)
Interest and other income, net	293	226	455
Loss before income taxes	(4,228)	(10,393)	(4,801)
Income tax provision	212	219	(54)
Net loss	$ (4,440)	$ (10,612)	$ (4,747)
Net loss per share:
Basic and diluted (in dollars per share)	$ (0.32)	$ (0.74)	$ (0.33)
Weighted-average number of shares used in per share calculations:
Basic and diluted (in shares)	13,960	14,254	14,421

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Net income (loss)	$ (4,440)	$ (10,612)	$ (4,747)
Available-for-sale investments
Net change in unrealized loss on available-for-sale investments	(87)	(42)	(21)
Less: Reclassification adjustment for net gains on investments recognized during the year	(7)	(4)	(9)
Net change in unrealized loss on available-for-sale investments	$ (94)	$ (46)	$ (30)
Tax provision (benefit)
Other comprehensive loss, net of tax	$ (94)	$ (46)	$ (30)
Comprehensive loss	$ (4,534)	$ (10,658)	$ (4,777)

Consolidated Statements of Stoc

Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands	Common Stock [Member]	Additional Paid-in Capital [Member]	Retained Earnings [Member]	AOCI Attributable to Parent [Member]	Total
Balance (in shares) at Dec. 31, 2012	14,233,476
Balance at Dec. 31, 2012	$ 14	$ 100,552	$ (9,873)	$ 81	$ 90,774
Issuance of common stock for employee purchase plan (in shares)	51,338
Issuance of common stock for employee purchase plan		362			$ 362
Exercise of stock options (in shares)	612,210				612,210
Exercise of stock options	$ 1	5,048			$ 5,049
Issuance of common stock in settlement of restricted stock units, net of shares withheld for employee taxes, and stock awards (in shares)	95,256
Issuance of common stock in settlement of restricted stock units, net of shares withheld for employee taxes, and stock awards		(222)			(222)
Repurchase of common stock (in shares)	(1,060,447)
Repurchase of common stock	$ (1)	(10,030)			(10,031)
Stock-based compensation expense		$ 3,110			3,110
Net income (loss)			$ (4,747)		(4,747)
Net change in unrealized loss on available-for-sale investments				$ (30)	(30)
Balance (in shares) at Dec. 31, 2013	13,931,833
Balance at Dec. 31, 2013	$ 14	$ 98,820	$ (14,620)	$ 51	84,265
Issuance of common stock for employee purchase plan (in shares)	52,759
Issuance of common stock for employee purchase plan		451			$ 451
Exercise of stock options (in shares)	396,970				396,970
Exercise of stock options		3,307			$ 3,307
Issuance of common stock in settlement of restricted stock units, net of shares withheld for employee taxes, and stock awards (in shares)	65,388
Issuance of common stock in settlement of restricted stock units, net of shares withheld for employee taxes, and stock awards		(156)			(156)
Stock-based compensation expense		$ 3,299			3,299
Net income (loss)			$ (10,612)		(10,612)
Net change in unrealized loss on available-for-sale investments				$ (46)	$ (46)
Balance (in shares) at Dec. 31, 2014	14,446,950				14,446,950
Balance at Dec. 31, 2014	$ 14	$ 105,721	$ (25,232)	$ 5	$ 80,508
Issuance of common stock for employee purchase plan (in shares)	55,872
Issuance of common stock for employee purchase plan		577			$ 577
Exercise of stock options (in shares)	1,141,904				1,141,904
Exercise of stock options	$ 2	10,500			$ 10,502
Issuance of common stock in settlement of restricted stock units, net of shares withheld for employee taxes, and stock awards (in shares)	154,119
Issuance of common stock in settlement of restricted stock units, net of shares withheld for employee taxes, and stock awards		(1,018)			(1,018)
Repurchase of common stock (in shares)	(2,818,038)
Repurchase of common stock	$ (3)	(40,082)			(40,085)
Stock-based compensation expense		$ 4,084			4,084
Net income (loss)			$ (4,440)		(4,440)
Net change in unrealized loss on available-for-sale investments				$ (94)	$ (94)
Balance (in shares) at Dec. 31, 2015	12,980,807				12,980,807
Balance at Dec. 31, 2015	$ 13	$ 79,782	$ (29,672)	$ (89)	$ 50,034

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($)	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Cash flows from operating activities:
Net income (loss)	$ (4,440,000)	$ (10,612,000)	$ (4,747,000)
Adjustments to reconcile net loss to net cash used in operating activities:
Stock-based compensation	4,084,000	3,299,000	3,110,000
Depreciation and amortization	$ 1,186,000	1,336,000	$ 1,304,000
Impairment of intangible assets		650,000
Other	$ 227,000	206,000	$ 243,000
Changes in assets and liabilities:
Accounts receivable	(536,000)	(1,460,000)	(857,000)
Inventories	(1,090,000)	(1,982,000)	2,108,000
Other current assets and prepaid expenses	241,000	239,000	345,000
Other long-term assets	(23,000)	(37,000)	73,000
Accounts payable	(1,124,000)	1,263,000	(287,000)
Accrued liabilities	2,687,000	1,650,000	(371,000)
Other long-term liabilities	(289,000)	(285,000)	(218,000)
Deferred revenue	(2,319,000)	1,410,000	3,114,000
Income tax liability	37,000	37,000	(304,000)
Net cash provided by (used in) operating activities	(1,359,000)	(4,286,000)	3,513,000
Cash flows from investing activities:
Acquisition of property, equipment and software	$ (746,000)	$ (734,000)	(517,000)
Acquisition of intangible asset			(155,000)
Disposal of property and equipment			63,000
Proceeds from sales of marketable investments	$ 21,171,000	$ 12,354,000	15,578,000
Proceeds from maturities of marketable investments	35,918,000	26,915,000	36,030,000
Purchase of marketable investments	(23,697,000)	(44,146,000)	(56,847,000)
Net cash provided by (used in) investing activities	32,646,000	$ (5,611,000)	(5,848,000)
Cash flows from financing activities:
Repurchase of common stock	(40,085,000)		(10,031,000)
Proceeds from exercise of stock options and employee stock purchase plan	10,061,000	$ 3,602,000	5,189,000
Payments on capital lease obligation	(198,000)	(144,000)	(127,000)
Net cash provided by (used in) financing activities	(30,222,000)	3,458,000	(4,969,000)
Net increase (decrease) in cash and cash equivalents	1,065,000	(6,439,000)	(7,304,000)
Cash and cash equivalents at beginning of year	9,803,000	16,242,000	23,546,000
Cash and cash equivalents at end of year	10,868,000	9,803,000	16,242,000
Supplemental cash flow information:
Cash paid for interest	20,000	26,000	19,000
Cash paid for income taxes	160,000	225,000	337,000
Supplemental non-cash investing and financing activities:
Assets acquired under capital lease	$ 285,000	$ 70,000	$ 577,000

Note 1 - Summary of Significant

Note 1 - Summary of Significant Accounting Policies	12 Months Ended
	Dec. 31, 2015
Notes to Financial Statements
Organization, Consolidation, Basis of Presentation, Business Description and Accounting Policies [Text Block]	NOTE 1—SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Description of Operations and Principles of Consolidation Cutera, Inc. (“Cutera” or the “Company”) CoolGlide ® xeo solera ® GenesisPlus excel V truSculpt excel HR enlighten Titan ® truSculpt (“Merz”) Radiesse Titan truSculpt Headquartered in Brisbane, California, the Company has wholly-owned subsidiaries that are currently operational in Australia, Belgium, Canada, France, Hong Kong, Japan, Spain and Switzerland, that market, sell and service its products outside of the United States. The Consolidated Financial Statements include the accounts of the Company and its subsidiaries. All inter-company transactions and balances have been eliminated. Use of Estimates The preparation of Consolidated Financial Statements in conformity with generally accepted accounting principles in the United States of America (“GAAP”) requires the Company’s management to make estimates and assumptions that affect the amounts reported and disclosed in the financial statements and the accompanying notes. Actual results could differ materially from those estimates. On an ongoing basis, the Company evaluates their estimates, including those related to warranty obligation, sales commission, accounts receivable and sales allowances, valuation of inventories, fair values of acquired intangible assets, useful lives of intangible assets and property and equipment, fair values of options to purchase the Company’s common stock and other share based awards, recoverability of deferred tax assets, and effective income tax rates, among others. Management bases their estimates on historical experience and on various other assumptions that are believed to be reasonable, the results of which form the basis for making judgments about the carrying values of assets and liabilities. Cash, Cash Equivalents, and Marketable Investments The Company invests its cash primarily in money market funds and in highly liquid debt instruments of U.S. federal and municipal governments and their agencies, commercial paper and corporate debt securities. All highly liquid investments with stated maturities of three months or less from date of purchase are classified as cash equivalents; all highly liquid investments with stated maturities of greater than three months are classified as marketable investments. The majority of the Company’s cash and investments are held in U.S. banks and its foreign subsidiaries maintain a limited amount of cash in their local banks to cover their short term operating expenses. The Company determines the appropriate classification of its investments in marketable securities at the time of purchase and re-evaluates such designation at each balance sheet date. The Company’s marketable securities have been classified and accounted for as available-for-sale. Investments with remaining maturities more than one year are viewed by the Company as available to support current operations, and are classified as current assets under the caption marketable investments in the accompanying Consolidated Balance Sheets. Investments in marketable securities are carried at fair value, with the unrealized gains and losses reported as a component of stockholders’ equity. Any realized gains or losses on the sale of marketable securities are determined on a specific identification method, and such gains and losses are reflected as a component of interest and other income, net. Fair Value Measurements Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. In determining fair value, the Company utilizes valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs to the extent possible as well as considers counterparty credit risk in its assessment of fair value. Carrying amounts of the Company’s financial instruments, including cash equivalents, accounts receivable, accounts payable and accrued liabilities, approximate their fair values as of the balance sheet dates because of their generally short maturities. The fair value hierarchy distinguishes between (1) market participant assumptions developed based on market data obtained from independent sources (observable inputs) and (2) an entity’s own assumptions about market participant assumptions developed based on the best information available in the circumstances (unobservable inputs). The fair value hierarchy consists of three broad levels, which gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). The three levels of the fair value hierarchy are described below: ● Level 1: Quoted prices (unadjusted) in active markets that are accessible at the measurement date for assets or liabilities. ● Level 2: Directly or indirectly observable inputs as of the reporting date through correlation with market data, including quoted prices for similar assets and liabilities in active markets and quoted prices in markets that are not active. Level 2 also includes assets and liabilities that are valued using models or other pricing methodologies that do not require significant judgment since the input assumptions used in the models, such as interest rates and volatility factors, are corroborated by readily observable data from actively quoted markets for substantially the full term of the financial instrument. ● Level 3: Unobservable inputs that are supported by little or no market activity and reflect the use of significant management judgment. These values are generally determined using pricing models for which the assumptions utilize management’s estimates of market participant assumptions. Impairment of Marketable Investments After determining the fair value of available-for-sales debt instruments, gains or losses on these securities are recorded to other comprehensive income, until either the security is sold or the Company determines that the decline in value is other-than-temporary. The primary differentiating factors that the Company considers in classifying impairments as either temporary or other-than-temporary impairments are the Company’s intent and ability to retain the investment in the issuer for a period of time sufficient to allow for any anticipated recovery in market value or the maturity of the investment, the length of the time and the extent to which the market value of the investment has been less than cost and the financial condition and near-term prospects of the issuer. There were no other-than-temporary impairments in the years ended December 31, 2015, 2014, and 2013. Allowance for Sales Returns and Doubtful Accounts The allowance for sales returns is based on the Company’s estimates of potential future product returns and other allowances related to current period product revenue. The Company analyzes historical returns, current economic trends and changes in customer demand and acceptance of our products. The allowance for doubtful accounts is based on the Company’s assessment of the collectability of customer accounts. The Company regularly reviews the allowance by considering factors such as historical experience, credit quality, the age of the accounts receivable balances, and current economic conditions that may affect a customer’s ability to pay. Concentration of Credit Risk and Other Risks and Uncertainties Financial instruments that potentially subject the Company to concentrations of risk consist principally of cash, cash equivalents, marketable investments and accounts receivable. The Company’s cash and cash equivalents are primarily invested in deposits and money market accounts with three major financial institutions in the U.S. In addition, the Company has operating cash balances in banks in each of the international locations in which it operates. Deposits in these banks may exceed the amount of insurance provided on such deposits, if any. Management believes that these financial institutions are financially sound and, accordingly, believes that minimal credit risk exists. The Company has not experienced any losses on its deposits of cash and cash equivalents. The Company invests in debt instruments, including bonds of the U.S. Government, its agencies and municipalities. The Company has also invested in other high grade investments such as commercial paper and corporate bonds. By policy, the Company restricts its exposure to any single issuer by imposing concentration limits. To minimize the exposure due to adverse shifts in interest rates, the Company maintains investments at an average maturity of generally less than eighteen months. Accounts receivable are typically unsecured and are derived from revenue earned from worldwide customers. The Company performs credit evaluations of its customers and maintains reserves for potential credit losses. As of December 31, 2015, there was one customer who represented more than 10% of the Company’s net accounts receivable. No single customer represented more than 10% of net accounts receivable as of December 31, 2014. During the years ended December 31, 2015, 2014, and 2013, domestic revenue accounted for 52%, 45%, and 42%, respectively, of total revenue, while international revenue accounted for 48%, 55%, and 58%, respectively, of total revenue. No single customer represented more than 10% of total revenue for any of the years ended December 31, 2015, 2014, and 2013. The Company is also subject to risks common to companies in the medical device industry, including, but not limited to, new technology innovations, dependence on key personnel, dependence on key suppliers, protection of proprietary technology, product liability, Food and Drug Administration and/ or international regulatory approvals required for new products and compliance with government regulations. Inventories Inventories are stated at the lower of cost or market, cost being determined on a standard cost basis, which approximates actual cost on a first-in, first-out basis, and market being determined as the lower of replacement cost or net realizable value. The Company includes demonstration units within inventories. Demonstration units are carried at cost and amortized over an estimated economic life of two years. Amortization expense related to demonstration units is recorded in Products cost of revenue or in the respective operating expense line based on which function and purpose for which the demonstration units are being used. Proceeds from the sale of demonstration units are recorded as revenue and all costs incurred to refurbish the systems prior to sale are charged to cost of revenue. As of December 31, 2015 and 2014, demonstration inventories, net of accumulated depreciation, included in Finished goods inventory balance was $2.3 million. Property and Equipment Property and equipment are stated at cost, net of accumulated depreciation. Depreciation recognized is on a straight-line basis over the estimated useful lives of the assets, generally as follows: Useful Lives (years) Leasehold improvements Lesser of useful life or term of lease Office equipment and furniture 3 Machinery and equipment 3 Upon sale or retirement of property and equipment, the costs and related accumulated depreciation and amortization are removed from the balance sheet and the resulting gain or loss is reflected in operating expenses. Maintenance and repairs are charged to operations as incurred. Depreciation expense related to property and equipment for 2015, 2014 and 2013, was $734,000, $562,000 and $602,000 respectively. Amortization expense for vehicles leased under capital leases is included in depreciation expense. Goodwill and Intangible Assets Goodwill, which represents the excess of the purchase price over the fair value of net tangible and identifiable intangible assets, is not subject to amortization, but is subject to at least an annual assessment for impairment, applying a fair-value based test. The Company’s intangible assets are comprised of purchased technology sub-licenses, acquired customer relationships, and those assets acquired in conjunction with an asset acquisition in February 2012 including, existing customer relationships, product portfolio and a manufacturing process for the products acquired. All identifiable intangibles have finite lives and are carried at cost, net of accumulated amortization. Amortization was recorded using the straight-line method, except for a portion of the purchased intangibles which are being amortized on a declining-balance basis, over their respective useful lives, which range from approximately 11 months to 10 years. Impairment of Long-lived Assets Goodwill is not amortized, but is tested for impairment at least annually or as circumstances indicate their value may no longer be recoverable. The goodwill impairment test is generally performed annually during the fourth fiscal quarter (or earlier if impairment indicators arise). The Company continues to operate in one segment, which is considered to be the sole reporting unit and therefore, goodwill was tested for impairment at the enterprise level. As of December 31, 2015, there has been no impairment of goodwill. The Company evaluates the recoverability of its long-lived assets, which include amortizable intangible and tangible assets. Acquired intangible assets with definite useful lives are amortized over their useful lives. The Company evaluates long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying value of long-lived assets may not be recoverable. The Company recognizes such impairment in the event the net book value of such assets exceeds the future undiscounted cash flows attributable to such assets. In 2014, the Company’s impairment review indicated that certain purchased long-lived assets associated with the Iridex acquisition were impaired and an impairment charge of $650,000 was recognized. No other impairment losses were incurred in the periods presented. Warranty Obligations The Company provides a standards one-year warranty on all systems sold to end-customers. Warranty coverage provided is for labor and parts necessary to repair the systems during the warranty period. For sales to distributors, the Company generally provides a 14-month warranty for parts only, with labor being provided to the end customer by the distributor. The Company accounts for the estimated warranty cost of the standard warranty coverage as a charge to costs of revenue when revenue is recognized. The estimated warranty cost is based on historical product performance. To determine the estimated warranty reserve, the Company utilizes actual service records to calculate the average service expense per system and applies this to the equivalent number of units exposed under warranty. The Company updates these estimated charges every quarter. Revenue Recognition Products revenue is recognized when title and risk of ownership has been transferred, provided that: ● Persuasive evidence of an arrangement exists; ● The price is fixed or determinable; ● Delivery has occurred or services have been rendered; and ● Collectability is reasonably assured. Transfer of title and risk of ownership occurs when the product is shipped to the customer or when the customer receives the product, depending on the nature of the arrangement. Revenue is recorded net of customer and distributor discounts. When collectability is not reasonably assured, the Company recognizes revenue upon receipt of cash payment. Sales to customers and distributors do not include any return or exchange rights. In addition, the Company’s distributor agreements obligate the distributor to pay the Company for the sale regardless of whether the distributor is able to resell the product. Shipping and handling charges are invoiced to customers based on the amount of products sold. Shipping and handling fees are recorded as revenue and the related expense as a component of Products cost of revenue. Multiple-element arrangements A multiple-element arrangement includes the sale of one or more tangible product offerings with one or more associated services offerings, each of which are individually considered separate units of accounting. The Company determined that its multiple-element arrangements are generally comprised of the following elements that are recognized as separate units of accounting: Product and service contracts. For multiple-element arrangements revenue is allocated to each element based on their relative selling prices. Relative selling prices are based on vendor specified objective evidence (“VSOE”), if available, third-party evidence of selling price (“TPE”) when VSOE does not exist, and on best estimate of selling price (“BESP”) if VSOE and TPE do not exist. Because the Company has neither VSOE nor TPE for its systems and service contracts, the allocation of revenue is based on the Company’s BESPs for each element. The objective of BESP is to determine the price at which the Company would transact a sale if the product or service was sold on a stand-alone basis. The Company determines BESP for its products or services by considering multiple factors including, prices charged for stand-alone sales, features and functionality of the products and services, geographies, type of customer, and market conditions. Revenue allocated to each element is then recognized when the other revenue recognition criteria are met for the element. In the first and second quarter of 2013, with respect to the sale of its truSculpt product, the Company provided promotions that included an unlimited number of “free” hand piece replacements during a stated trial period of 3 months or 12 months. These free refills were treated as an undelivered element under FASB ASC 605-25 in the original revenue transaction. The Company deferred the relative fair value related to the estimated number of hand piece replacements to be delivered during the promotional period and recognized that deferred revenue over the free refills promotion period. Commencing in the third quarter of 2013, the Company now includes unlimited refills as part of the truSculpt standard warranty and the Company no longer accounts for the truSculpt truSculpt The Company also offers customers extended service contracts. Revenue under service contracts is recognized on a straight-line basis over the period of the applicable service contract. Service revenue billed on a time and material basis, from customers whose systems are not under a service contact, is recognized as the services are provided. Service revenue for the years ended December 31, 2015, 2014, and 2013 was $17.7 million, $17.8 million, and $17.7 million, respectively. Cost of Revenue Cost of revenue consists primarily of material, finished and semi-finished products purchased from third-party manufacturers, labor, stock-based compensation expenses, overhead involved in our internal manufacturing processes, technology license amortization and royalties, costs associated with product warranties and any inventory or intangible write-downs. The Company's system sales include a control console, universal graphic user interface, control system software, high voltage electronics and a combination of applications (referred to as hand pieces). Hand pieces are programmed to have a limited number of uses to ensure the safety of the device to patients. The Company sells refurbished hand pieces, or "refills," of its Titan product and provides for refurbishment of other hand pieces under warranty or service contracts. When customers purchase a replacement hand piece (or “refill”) or are provided a replacement hand piece under a warranty or service contract, Cutera ships the customer a previously refurbished unit. Upon the receipt of the expended hand piece from the customer the Company capitalizes the expended hand piece as inventory at the estimated fair value. Cost of revenue includes the costs incurred to refurbish hand pieces. Research and Development Expenditures Costs related to research, design, development and testing of products are charged to research and development expense as incurred. Expenses incurred primarily relate to employees, facilities, material, third party contractors and clinical and regulatory fees. Advertising Costs Advertising costs are included as part of sales and marketing expense and are expensed as incurred. Advertising expenses for 2015, 2014 and 2013 were $1.2 million, $1.6 million and $1.6 million, respectively. Stock-based Compensation The Company accounts for its employee stock options under the fair value method of accounting using a Black-Scholes valuation model to measure stock option expense at the date of grant. The fair value of Restricted Stock Units (“RSUs”) is measured at the market price of the Company’s stock on the date of grant. The fair value of Performance Stock Units (“PSUs”) that have operational measurement goals, are measured at the market price of the Company’s stock on the date of grant. PSUs with market-based measurement goals are valued using the Monte-Carlo simulation option-pricing model. The Monte-Carlo simulation option-pricing model uses the same input assumptions as the Black-Scholes model, however, it further incorporates into the fair-value determination the possibility that the market condition may not be satisfied. Stock-based compensation expense for market-based PSU awards is recognized regardless of whether the market condition is satisfied, provided that the requisite service has been provided. Stock-based compensation expense, net of estimated forfeitures, is recognized over the requisite service period. For RSUs and PSUs, the Company issues shares on the vesting dates, net of the minimum tax withholding requirements to be paid by the Company on behalf of its employees. As a result, the actual number of shares issued will be fewer than the actual number of RSUs and PSUs that vest. The Company records the liability for withholding amounts to be paid by the Company as a reduction to additional paid-in capital when the shares are issued. Cash flows resulting from the tax benefits due to tax deductions in excess of the compensation cost recognized for stock-based awards for options exercised and for RSUs and PSUs vested during the period (excess tax benefits), are classified as financing cash flows. Income Taxes The Company recognizes income taxes under the liability method. The Company recognizes deferred income taxes for differences between the financial reporting and tax bases of assets and liabilities at enacted statutory tax rates in effect for the years in which differences are expected to reverse. The Company recognizes the effect on deferred taxes of a change in tax rates in income in the period that includes the enactment date. For deferred tax assets which are not subject to a valuation allowance, the Company has determined that its future taxable income will be sufficient to recover all of the deferred tax assets. However, should there be a change in the recoverability of the deferred tax assets, the Company could be required to record a valuation allowance against the net carrying value of its deferred tax assets. This would result in an increase to the Company’s tax provision in the period in which they determined that the recovery was not probable. The measurement of deferred taxes often involves an exercise of judgment related to the computation and realization of tax basis. The deferred tax assets and liabilities reflect management’s assessment that tax positions taken, and the resulting tax basis, are more likely than not to be sustained if they are audited by taxing authorities. Also, assessing tax rates that the Company expects to apply and determining the years when the temporary differences are expected to affect taxable income requires judgment about the future apportionment of the Company’s income among the states in which the Company operates. These matters, and others, involve the exercise of significant judgment. Any changes in the Company’s practices or judgments involved in the measurement of deferred tax assets and liabilities could materially impact the Company’s financial condition or results of operations. Valuation allowances are established when necessary to reduce deferred income tax assets to amounts that the Company believes are more likely than not to be recovered. The Company evaluates its deferred tax assets quarterly to determine whether adjustments to the Company’s valuation allowance are appropriate. In making this evaluation, the Company relies on its recent history of pre-tax earnings, estimated timing of future deductions and benefits represented by the deferred tax assets, and its forecasts of future earnings, the latter two of which involve the exercise of significant judgment. The Company maintains a full valuation allowance against its U.S. federal and state deferred tax asset due to a history of operating losses. The Company establishes reserves for uncertain tax positions in accordance with the Income Taxes subtopic of ASC 740. The subtopic prescribes the minimum recognition threshold a tax position is required to meet before being recognized in the financial statements. Additionally, the subtopic provides guidance on de-recognition, measurement, classification, interest and penalties, and transition of uncertain tax positions. The impact of an uncertain income tax position on income tax expense must be recognized at the largest amount that is more-likely-than-not to be sustained. An uncertain income tax position will not be recognized if it has less than a 50% likelihood of being sustained. The Company has provided taxes and related interest and penalties due for potential adjustments that may result from examinations of open U.S. Federal, state and foreign tax years. The Company will reverse the liability and recognize a tax benefit during the period in which the Company makes the determination that the tax position is effectively settled through examination, negotiation, or litigation, or the statute of limitations for the relevant taxing authority to examine and challenge the tax position has expired. The Company will record an additional charge in the Company’s provision for taxes in the period in which the Company determines that the recorded tax liability is less than the Company expects the ultimate assessment to be. Computation of Net Loss per Share Basic net income per share is computed using the weighted-average number of shares outstanding during the period. Diluted net income per share is computed using the weighted-average number of shares and dilutive potential shares outstanding during the period. Dilutive potential shares primarily consist of employee stock options. Diluted earnings per share is the same as basic earnings per share for the periods presented because the inclusion of outstanding common stock equivalents would be anti-dilutive. U.S. GAAP requires that employee equity share options, non-vested shares and similar equity instruments granted by the Company be treated as potential common shares outstanding in computing diluted earnings per share. In periods of net income, diluted shares outstanding include the dilutive effect of in-the-money options, which is calculated based on the average share price for each fiscal period using the treasury stock method. Under the treasury stock method, the amount the employee must pay for exercising stock options, the amount of compensation cost for future service that the Company has not yet recognized, and the amount of tax benefits that would be recorded in additional-paid-in-capital when the award becomes deductible are all assumed to be used to repurchase shares. Comprehensive Loss Comprehensive loss includes all changes in stockholders’ equity except those resulting from investments or contributions by stockholders. For the periods presented, the accumulated other comprehensive income (loss) consisted solely of the unrealized gains or losses on the Company's available-for-sale investments, net of tax. Foreign Currency The U.S. Dollar is the functional currency of the Company’s subsidiaries. Monetary assets and liabilities are re-measured into U.S. Dollars at the applicable period end exchange rate. Sales and operating expenses are re-measured at average exchange rates in effect during each period. Gains or losses resulting from foreign currency transactions are included in net income (loss) and are insignificant for each of the three years ended December 31, 2015. The effect of exchange rate changes on cash and cash equivalents was insignificant for each of the three years presented in the period ended December 31, 2015. Segments The Company operates in one segment. Management uses one measurement of profitability and does not segregate its business for internal reporting. As of December 31, 2015 and 2014, 68% and 71%, respectively, of all long-lived assets were maintained in the U.S. See Note 10 for details relating to revenue by geography. Recent Accounting Pronouncements In May 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Updates (“ASU”) No. 2014-09, Revenue from Contracts with Customers, requiring an entity to recognize the amount of revenue to which it expects to be entitled to for the transfer of promised goods or services to customers. The updated standard will replace most existing revenue recognition guidance in U.S. GAAP when it becomes effective and permits the use of either the retrospective or cumulative effect transition method. Early adoption is not permitted. The updated standard becomes effective for the Company in the first quarter of fiscal year 2018. The Company has not yet selected a transition method and is currently evaluating the effect that the updated standard will have on the Consolidated Financial Statements and related disclosures. In April 2015, the FASB issued ASU No. 2015-05, Customer’s Accounting of Fees Paid in Cloud Computing Arrangement, guidance on accounting for fees paid in cloud computing arrangements. If a cloud computing arrangement includes a software license, then the customer should account for the software license element of the arrangement consistent with the acquisition of other software licenses. If a cloud computing arrangement does not include a software license, the customer should account for the arrangement as a services contract. All software licenses recognized under this guidance will be accounted for consistent with other licenses of intangible assets. The guidance becomes effective for the Company for the first quarter of fiscal 2016. The guidance is not expected to have a material effect on the Company's Consolidated Financial Statements. In July 2015, the FASB issued ASU No. 2015-11, Simplifying the Measurement of Inventory. Currently, an entity is required to measure its inventory at the lower of cost or market, whereby market can be replacement cost, net realizable value, or net realizable value less an approximately normal profit margin. The changes require that inventory be measured at the lower of cost and net realizable value, thereby eliminating the use of the other two market methodologies. Net realizable value is defined as the estimated selling prices in the ordinary course of business less reasonably predictable costs of completion, disposal, and transportation. These changes do not apply to inventories measured using LIFO (last-in, first-out) or the retail inventory method. These changes become effective on January 1, 2017. Management is currently evaluating the effect that the updated standard will have on the Consolidated Financial Statements and related disclosures. In February 2016, the FASB issued ASU 2016-02, Leases . This guidance requires that lease arrangements longer than twelve months result in a lessee recognizing a lease asset and liability. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the income statement. The updated guidance is effective for interim and annual periods beginning after December 15, 2018, and early adoption is permitted. The Company is currently evaluating the impact of the updated guidance on the Company's Consolidated Financial Statements. Adopted Accounting Pronouncements In November 2015, FASB issued ASU No. 2015-17, Balance Sheet Classification of Deferred Taxes, requiring all deferred tax assets and liabilities, and any related valuation allowance, to be classified as non-curr

Note 2 - Investment Securities

Note 2 - Investment Securities	12 Months Ended
	Dec. 31, 2015
Notes to Financial Statements
Cash, Cash Equivalents, and Marketable Securities [Text Block]	NOTE 2—INVESTMENT SECURITIES The following tables summarize cash, cash equivalents and marketable securities (in thousands): December 31, 2015 201 4 Cash and cash equivalents: Cash $ 9,830 $ 7,761 Cash equivalents: Money market funds 1,000 242 Commercial paper 38 1,800 Total cash and cash equivalents 10,868 9,803 Marketable securities: U.S. government notes 7,779 18,361 U.S. government agencies 12,608 19,800 Municipal securities 4,346 3,607 Commercial paper 4,040 10,695 Corporate debt securities 8,766 18,880 Total marketable securities 37,539 71,343 Total cash, cash equivalents and marketable securities $ 48,407 $ 81,146 The following table summarizes unrealized gains and losses related to the Company’s marketable investments (in thousands): December 31, 201 5 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Market Value Cash and cash equivalents $ 10,868 $ — $ — $ 10,868 Marketable investments U.S. government notes 7,780 1 (2 ) 7,779 U.S. government agencies 12,630 3 (25 ) 12,608 Municipal securities 4,344 2 — 4,346 Commercial paper 4,041 1 (2 ) 4,040 Corporate debt securities 8,783 — (17 ) 8,766 Total marketable securities 37,578 7 (46 ) 37,539 Total cash, cash equivalents and marketable securities $ 48,446 $ 7 $ (46 ) $ 48,407 December 31, 201 4 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Market Value Cash and cash equivalents $ 9,803 $ — $ — $ 9,803 Marketable investments U.S. government notes 18,345 17 (1 ) 18,361 U.S. government agencies 19,768 33 (1 ) 19,800 Municipal securities 3,607 3 (3 ) 3,607 Commercial paper 10,693 2 — 10,695 Corporate debt securities 18,875 13 (8 ) 18,880 Total marketable securities 71,288 68 (13 ) 71,343 Total cash, cash equivalents and marketable securities $ 81,091 $ 68 $ (13 ) $ 81,146 No investments were in a continuous unrealized loss position for longer than 12 months as of December 31, 2015 and 2014. The following table summarizes the estimated fair value of the Company’s marketable investments classified by the contractual maturity date of the security as of December 31, 2015 (in thousands): Amount Due in less than one year (fiscal year 2016) $ 25,558 Due in 1 to 3 years (fiscal year 2017-2018) 11,981 Total marketable securities $ 37,539 Fair Value Measurements The following table summarizes financial assets measured and recognized at fair value on a recurring basis and classified under the appropriate level of the fair value hierarchy as described above (in thousands): December 31, 201 5 Level 1 Level 2 Level 3 Total Cash equivalents: Money market funds $ 1,000 $ — $ — $ 1,000 Commercial paper — 38 — 38 Short term marketable investments: Available-for-sale securities — 37,539 — 37,539 Total assets at fair value $ 1,000 $ 37,577 $ — $ 38,577 December 31, 201 4 Level 1 Level 2 Level 3 Total Cash equivalents: Money market funds $ 242 $ — $ — $ 242 Commercial paper — 1,800 — 1,800 Short term marketable investments: Available-for-sale securities — 71,343 — 71,343 Total assets at fair value $ 242 $ 73,143 $ — $ 73,385 The Company’s Level 1 financial assets are money market funds with fair values that are based on quoted market prices The Company’s Level 2 investments include U.S. government-backed securities and corporate securities that are valued based upon observable inputs that may include benchmark yields, reported trades, broker/dealer quotes, issuer spreads, two-sided markets, benchmark securities, bids, offers and reference data including market research publications. The average remaining maturity of the Company’s Level 2 investments as of December 31, 2015 is less than 36 months and all of these investments are rated by S&P and Moody’s at A or better. At December 31, 2014, the Company evaluated the fair values of its intangible assets, which are classified within Level 3 of the fair value hierarchy. With respect to the purchased intangible assets associated with the Iridex acquisition in 2012, the Company determined that there was impairment in the value of these intangible assets based on an undiscounted cash flow model. The recorded impairment charge of the purchased intangibles was estimated using a discounted cash flow model. This model relied on Level 3 inputs that included expected future cash flow streams as well as a market discount rate that are subject to uncertainties that are difficult to predict.

Note 3 - Acquistion

Note 3 - Acquistion	12 Months Ended
	Dec. 31, 2015
Notes to Financial Statements
Business Combination Disclosure [Text Block]	NOTE 3— ACQUISITION On February 2, 2012, Cutera acquired certain assets and liabilities of Iridex’s global aesthetics business unit for $5.1 million in cash. This business is engaged in developing, manufacturing, marketing and servicing laser-based medical systems and delivery devices. The business purpose of this transaction was to acquire access to an expanded installed base of customers, add to Cutera’s product offerings and acquire a recurring stream of service revenue. This acquisition was considered a business combination for accounting purposes, and as such, in addition to valuing all the assets, the Company recorded goodwill associated with the expected synergies from leveraging the customer relationships and integrating new product offerings into the Company’s business. The fair values of the assets acquired were determined to be $4.8 million of net tangible and intangible assets and $1.3 million of goodwill. The customer relationship intangible assets were being amortized over 5 years on a straight-line basis. Other intangible assets were being amortized over 11 months to 5 years from the date of acquisition on a straight-line basis. As of December 31, 2014, the Company evaluated the recoverability of the purchased intangible assets, due to the discontinuation of the manufacture and sale of all products acquired, lower than projected future service revenue, and lower than projected revenue expected from the distributor relationships acquired. As a result, the Company recorded an impairment charge of $650,000 in cost of revenue. The unamortized purchased intangibles are being amortized on a declining-balance basis over the remaining useful economic life of 5 years from the date of acquisition. The following table summarizes the fair value as of February 2, 2012 of the net assets acquired (in thousands) Purchase price paid $ 5,091 Assets (liabilities acquired): Inventory 1,552 Customer relationship intangible assets 2,510 Other identified intangible assets 780 Goodwill 1,339 Deferred service revenue (780 ) Accrued warranty liability (310 ) Total $ 5,091 The identifiable intangible assets and goodwill identified above shall be deductible for income taxes over a useful economic life of 15 years.

Note 4 - Balance Sheet Detail

Note 4 - Balance Sheet Detail	12 Months Ended
	Dec. 31, 2015
Notes to Financial Statements
Supplemental Balance Sheet Disclosures [Text Block]	NOTE 4 —BALANCE SHEET DETAIL Inventories Inventories consist of the following (in thousands): December 31, 2015 201 4 Raw materials $ 7,982 $ 7,185 Finished goods 4,096 3,803 Total $ 12,078 $ 10,988 Property and Equipment, net Property and equipment, net, consists of the following (in thousands): December 31, 201 5 201 4 Leasehold improvements $ 822 $ 641 Office equipment and furniture 2,970 2,964 Machinery and equipment 4,662 4,140 8,454 7,745 Less: Accumulated depreciation (6,981 ) (6,284 ) Property and equipment, net $ 1,473 $ 1,461 Included in machinery and equipment are financed vehicles used by the Company’s North American sales employees. As of December 31, 2015 and 2014, the gross capitalized value of the leased vehicles was $862,000 and $647,000 and the related accumulated depreciation was $374,000 and $253,000, respectively. Goodwill and Other Intangible Assets Goodwill and other intangible assets comprise a patent sublicense acquired from Palomar in 2006 , intangible assets and goodwill related to the acquisition of Iridex’s aesthetic business unit, and, customer relationships in the Benelux countries acquired from a former distributor in 2013 . The components of intangible assets at December 31, 2015 and 2014 were as follows (in thousands): Gross Carrying Amount Accumulated Amortization & Impairment Amount Net Amount December 31, 2015 Patent sublicense $ 1,218 $ 1,218 $ — Customer relationship intangible related to acquisition 2,510 2,367 143 Other identified intangible assets related to acquisition 780 780 — Other intangible 155 155 — Goodwill 1,339 — 1,339 Total $ 6,002 $ 4,520 $ 1,482 December 31, 201 4 Patent sublicense $ 1,218 $ 1,206 $ 12 Customer relationship intangible related to acquisition 2,510 1,998 512 Other identified intangible assets related to acquisition 780 780 — Other intangible 155 84 71 Goodwill 1,339 — 1,339 Total $ 6,002 $ 4,068 $ 1,934 As of December 31, 2014, the Company evaluated the recoverability of its long-lived assets. Relating to the purchased intangible assets associated with the Iridex acquisition in 2012, due to the discontinuation of the manufacture and sale of all products acquired, lower than projected future service revenue, and lower than projected revenue expected from the distributor relationships acquired, the Company concluded based on future undiscounted cash flows that the remaining carrying value of these assets was impaired. As a result, the Company recorded an impairment charge of $650,000 in cost of revenue. Amortization expense (excluding the impairment charge described above) in the 2015, 2014, and 2013 fiscal years for intangible assets was $452,000, $773,000, and $702,000, respectively. Based on intangible assets recorded at December 31, 2015, and assuming no subsequent additions to, or impairment of the underlying assets, the remaining annual amortization expense will be as follows (in thousands): Year ending December 31, Amount 2016 $ 142 2017 1 Total $ 143 Accrued Liabilities Accrued liabilities consist of the following (in thousands): December 31, 201 5 201 4 Accrued payroll and related expenses $ 7,726 $ 5,533 Accrued sales tax 1,935 1,789 Warranty liability 1,819 1,167 Other accrued liabilities 2,354 2,518 Total $ 13,834 $ 11,007

Note 5 - Warranty and Service C

Note 5 - Warranty and Service Contracts	12 Months Ended
	Dec. 31, 2015
Notes to Financial Statements
Product Warranty Disclosure [Text Block]	NOTE 5 —WARRANTY AND SERVICE CONTRACTS The Company has a direct field service organization in the U.S. Internationally, the Company provides direct service support through its wholly-owned subsidiaries in Australia, Belgium, Canada, France Hong Kong, Spain, Japan and Switzerland, as well as through a network of distributors and third-party service providers in several other countries where it does not have a direct presence. The Company provides a warranty with its products, depending on the type of product. After the original warranty period, maintenance and support are offered on a service contract basis or on a time and materials basis. The Company currently provides for the estimated cost to repair or replace products under warranty at the time of sale. Warranty Accrual (in thousands) December 31, 201 5 201 4 Balance at beginning of year $ 1,167 $ 1,202 Add: Accruals for warranties issued during the year 4,134 2,497 Less: Settlements made during the year (3,482 ) (2,532 ) Balance at end of year $ 1,819 $ 1,167 Deferred Service Contract Revenue (in thousands) December 31, 201 5 201 4 Balance at beginning of year $ 12,949 $ 11,637 Add: Payments received 10,378 13,913 Less: Revenue recognized (12,858 ) (12,601 ) Balance at end of year $ 10,469 $ 12,949 Costs incurred under service contracts in 2015, 2014 and 2013 amounted to $6.2 million, $6.6 million, and $6.9 million, respectively, and are recognized as incurred.

Note 6 - Stockholders' Equity,

Note 6 - Stockholders' Equity, Stock Plans and Stock-based Compensation Expense	12 Months Ended
	Dec. 31, 2015
Notes to Financial Statements
Disclosure of Compensation Related Costs, Share-based Payments [Text Block]	NOTE 6 —STOCKHOLDERS’ EQUITY, STOCK PLANS AND STOCK-BASED COMPENSATION EXPENSE As of December 31, 2015, the Company had the following stock-based employee compensation plans: 2004 Equity Incentive Plan and 1998 Stock Plan In 1998, the Company adopted the 1998 Stock Plan, or 1998 Plan, under which 4,650,000 shares of the Company’s common stock were reserved for issuance to employees, directors and consultants. On January 12, 2004, the Board of Directors adopted the 2004 Equity Incentive Plan. A total of 1,750,000 shares of common stock were originally reserved for issuance pursuant to the 2004 Equity Incentive Plan. In addition, the shares reserved for issuance under the 2004 Equity Incentive Plan included shares reserved but un-issued under the 1998 Plan and shares returned to the 1998 Plan as the result of termination of options or the repurchase of shares. In 2012 the stockholders approved a “fungible share” provision whereby each full-value award issued under the 2004 Equity Incentive Plan results in a requirement to subtract 2.12 shares from the shares reserved under the Plan. Options granted under the 1998 Plan and 2004 Equity Incentive Plan may be incentive stock options or non-statutory stock options. Stock purchase rights may also be granted under the 2004 Equity Incentive Plan. Incentive stock options may only be granted to employees. The Board of Directors determines the period over which options become exercisable. Options granted under the Plan to employees generally vest over a four year term from the vesting commencement date and become exercisable 25% on the first anniversary of the vesting commencement date and an additional 1/48 th on the last day of each calendar month until all of the shares have become exercisable. During 2013 and 2012 the officers of the Company were granted options that vest over a three year term at the rate of 1/3 rd th In accordance with the 2004 Equity Incentive Plan, prior to 2012, the Company’s non-employee directors were granted $60,000 of grant date fair value, fully vested, stock awards annually on the date of the Company’s Annual Meeting of stockholders. Commencing with 2012, the Company’s non-employee directors get $60,000 of RSUs annually that cliff-vest on the one year anniversary of the grant date. In the years ended December 31, 2015, 2014 and 2013, the Company issued 21,020, 38,688 and 40,674 RSUs to its non-employee directors, respectively. In the years ended December 31, 2015, 2014 and 2013 the Company’s Board of Directors granted 107,417, 211,250 and 148,004 respectively, of RSUs to its executive officers and certain members of the Company’s management. The RSUs granted to the employees vest at the rate of one-fourth on the one-year anniversary of the grant date, and one-fourth in each of the subsequent three years. The RSUs granted to the executive officers vest at the rate of one-third on the one-year anniversary of the grant date, and one-third in each of the subsequent two years. The Company measured the fair market values of the underlying stock on the dates of grant and recognizes the stock-based compensation expense over the vesting period. In the years ended December 31, 2015, 2014 and 2013 the Company’s Board of Directors granted its executive officers and certain senior management employees 74,667, 105,000 and 33,751 of PSUs. The PSUs vest over a period of 8.5 months, 12 months and 12 months, respectively, subject to the recipient’s continued service and achievement of the pre-established operational goals related to revenue and operating income improvement. For the 2015 PSU awards, in addition to operational goals, there was a market-based goal as well. At the vest date, the Company issues fully-paid up common stock, based on the degree of achievement of the pre-established targets. 2004 Employee Stock Purchase Plan On January 12, 2004, the Board of Directors adopted the 2004 Employee Stock Purchase Plan. Under the 2004 Employee Stock Purchase Plan, or 2004 ESPP, eligible employees are permitted to purchase common stock at a discount through payroll deductions. The 2004 ESPP offering and purchase periods are for approximately six months. The 2004 ESPP has an evergreen provision based on which shares of common stock eligible for purchase are increased on the first day of each fiscal year by an amount equal to the lesser of: i. 600,000 shares; ii. 2.0% of the outstanding shares of common stock on such date; or iii. an amount as determined by the Board of Directors. The Company’s Board of Directors did not increase the shares available for future grant on January 1, 2015, 2014 and 2013. The price of the common stock purchased is the lower of 85% of the fair market value of the common stock at the beginning or end of a six month offering period. In the years ended December 31, 2015, 2014 and 2013, under the 2004 ESPP, the Company issued 55,872, 52,579 and 51,338 shares, respectively. At December 31, 2015, 849,985 shares remained available for future issuance. Option Activity Activity under the 1998 Plan and 2004 Equity Incentive Plan is summarized as follows: Options Outstanding Shares Available For Grant Number of Shares Weighted- Average Exercise Price Weighted-Average Remaining Contractual Life (in years) Aggregate Intrinsic Value (in $ millions (1) Balances as of December 31, 20 1 2 1,644,356 3,788,239 $ 9.44 4.3 $ 2.6 Options granted (1,007,166 ) 1,007,166 $ 8.97 Options exercised — (612,210 ) $ 8.16 Options cancelled (expired or forfeited) 391,033 (391,033 ) $ 10.37 Stock awards granted (399,997 ) — — Stock awards cancelled (expired or forfeited) 81,257 — — Balances as of December 31, 201 3 709,483 3,792,162 $ 9.42 4.2 $ 5.1 Additional shares reserved ( 2 ) 200,000 — — Options granted (486,300 ) 486,300 $ 9.78 Options exercised — (396,970 ) $ 8.33 Options cancelled (expired or forfeited) 418,925 (418,925 ) $ 11.15 Stock awards granted (764,394 ) — — Stock awards cancelled (expired or forfeited) 52,046 — — Balances as of December 31, 201 4 129,760 3,462,567 $ 9.39 3.4 $ 5.7 Additional shares reserved ( 3 ) 1,300,000 — Options granted (129,000 ) 129,000 $ 13,.26 Options exercised — (1,141,904 ) $ 9.20 Options cancelled (expired or forfeited) 300,866 (300,866 ) $ 12.37 Stock awards granted (430,580 ) — — Stock awards cancelled (expired or forfeited) 92,379 — — Balances as of December 31, 201 5 1,263,425 2,148,797 $ 9.31 3.4 $ 7.9 Exercisable as of December 31, 201 5 1,561,916 $ 9.05 2.8 $ 6.1 Expected to vest, net of estimated forfeitures, as of December 31, 2015 505,631 $ 9.92 4.91 $ 1.5 (1) Based on the closing stock price of the Company’s stock of $ 12.79 on December 31, 201 5 , $ 10 . 68 on December 3 1 , 201 4, $10.18 on December 30, 2013 and $ 9.00 on December 31, 201 2 . (2) Approved by Board of Directors in 201 4, approved by stockholders in 201 5 . (3) Approved by stockholders in 2015 . The aggregate intrinsic value in the table above represents the total pre-tax intrinsic value (the aggregate difference between the Company’s closing stock price on the last trading day of the fiscal year and the exercise price, multiplied by the number of in-the-money options) that would have been received by the option holders had all option holders exercised their options on December 31, 2015. The aggregate intrinsic amount changes based on the fair market value of the Company’s common stock. Total intrinsic value of options exercised in 2015, 2014 and 2013 was $5.1 million, $824,000, and $2.1 million, respectively. The options outstanding and exercisable at December 31, 2015 were in the following exercise price ranges: Options Outstanding Options Exercisable Range of Exercise Prices Number Outstanding Weighted-Average Remaining Contractual Life (in years) Number Outstanding Weighted-Average Exercise Price $6.88 299,090 3.51 259,407 $ 6.88 $7.11 – $8.66 239,152 0.85 236,110 8.51 $8.72 345,057 2.35 345,057 8.72 $8.80 325,116 4.30 158,434 8.80 $8.91 – $9.63 225,345 4.61 157,506 9.11 $9.65 – $10.03 251,399 5.56 85,671 9.82 $10.24 250,034 1.34 250,034 10.24 $10.32 – $14.04 175,604 5.49 39,697 11.18 $15.32 8,000 6.56 — — $21.84 30,000 0.47 30,000 21,.84 $6.88 – $21.84 2,148,797 3.38 1,561,916 $ 9.05 As of December 31, 2014 there were 2,330,762 options that were exercisable at a weighted average exercise price of $9.62. Stock Awards (RSU and PSU) Activity Table Information with respect to restricted stock units’ and performance stock units’ activity is as follows (in thousands): Number of Shares Weighted Average Grant- Date Fair Value Aggregate Fair Value (1) (in thousands) Aggregate Intrinsic Value ( 2 ) (in thousands ) Outstanding at December 31, 201 2 148,709 $ 6.99 $ 1,338 Granted 188,678 $ 8.94 Vested (3) (119,505 ) $ 7.68 $ 1,091 (4) Forfeited (38,417 ) $ 8.11 Outstanding at December 31, 201 3 179,465 $ 8.34 $ 1,827 Granted 360,563 $ 9.72 Vested (3) (81,157 ) $ 8.62 $ 777 (5) Forfeited (24,550 ) $ 8.14 Outstanding at December 31, 201 4 434,321 $ 9.31 $ 4,639 Granted 203,104 $ 14.81 Vested (3) (222,220 ) $ 11.79 $ 3,285 (6) Forfeited (43,575 ) $ 9.09 Outstanding at December 31, 201 5 371,630 $ 12.39 $ 4,753 (1) Represents the value of the Company’s stock on the date that the restricted stock units vest. (2) Based on the closing stock price of the Company’s stock of $ 12.79 on December 31, 201 5 , $ 10.68 on December 3 1 , 201 4, $10.18 on December 30, 2013 and $ 9.00 on December 31, 201 2 . (3) The number of restricted stock units vested includes shares that the Company withheld on behalf of the employees to satisfy the statutory tax withholding requirements. (4) On the grant date, the fair value for these vested awards was $ 917 ,000 . (5) On the grant date, the fair value for these vested awards was $ 699 ,000. (6) On the grant date, the fair value for these vested awards was $ 2.6 million . Stock-Based Compensation Stock-based compensation expense for stock options, restricted stock units, stock awards and ESPP shares for the year ended December 31, 2015, 2014 and 2013 was as follows (in thousands): Year Ended December 31, 201 5 201 4 201 3 Stock options $ 1,438 $ 1,811 $ 2,201 RSUs 1,297 875 631 PSUs 1,167 455 162 ESPP 182 158 116 Total stock-based compensation expense $ 4,084 $ 3,299 $ 3,110 As of December 31, 2015, the unrecognized compensation cost, net of expected forfeitures, was $4.2 million for stock options and stock awards, which will be recognized over an estimated weighted-average remaining amortization period of 1.78 years. For the ESPP, the unrecognized compensation cost, net of expected forfeitures, was $82,000, which will be recognized over an estimated weighted-average amortization period 0.33 years. The Company issues new shares of common stock upon the exercise of stock options, vesting of RSUs and PSUs, and the issuance of ESPP shares. The amount of cash received from these issuances, net of taxes withheld and paid, in 2015, 2014 and 2013 was $10.1 million, $3.6 million and $5.2 million. There was no direct tax benefit (deficit) in 2015, 2014 or 2013. The Company elected to account for the indirect effects of stock-based awards, primarily the research and development tax credit, through the Statement of Operations. Total stock-based compensation expense recognized during the year ended December 31, 2015, 2014 and 2013 was recorded in the Statement of Operations as follows (in thousands): Year Ended December 31, 2015 201 4 201 3 Cost of revenue $ 447 $ 560 $ 638 Sales and marketing 1,054 641 744 Research and development 662 581 397 General and administrative 1,921 1,517 1,331 Total stock-based compensation expense $ 4,084 $ 3,299 $ 3,110 Valuation Assumptions and Fair Value of Stock Options and ESPP Grants The Company uses the Black-Scholes option pricing model to estimate the fair value of options granted under its equity incentive plans and rights to acquire stock granted under its employee stock purchase plan. The Company based the weighted average estimated values of employee stock option grants and rights granted under the employee stock purchase plan, as well as the weighted average assumptions used in calculating these values, on estimates at the date of grant, as follows: Stock Options Stock Purchase Plan 201 5 201 4 201 3 201 5 201 4 201 3 Expected term (in years) (1) 3.24 4.18 4.30 0.50 0.50 0.50 Risk-free interest rate (2) 0.90 % 1.31 % 1.13 % 0.17 % 0.06 % 0.08 % Volatility (3) 30 % 41 % 43 % 36 % 37 % 44 % Dividend yield (4) — % — % — % — % — % — % Weighted average estimated fair value at grant date $ 4.78 $ 3.36 $ 3.22 $ 3.51 $ 2.65 $ 2.84 (1) The expected term represents the period during which the Company’s stock-based awards are expected to be outstanding. The estimated term is based on historical experience of similar awards, giving consideration to the contractual terms of the awards, vesting requirements, and expectation of future employee behavior, including post-vesting terminations. (2) The risk-free interest rate is based on U.S. Treasury debt securities with maturities close to the expected term of the option as of the date of grant. (3) Estimated volatility is based on historical volatility. The Company also considers implied volatility when there is sufficient volume of freely traded options with comparable terms and exercise prices in the open market. (4) The Company has not historically issued any dividends and does not expect to do so in the foreseeable future. The Company periodically estimates forfeiture rates based on its historical experience within separate groups of employees and adjusts the stock-based payment expense accordingly. The forfeiture rates used in 2015 ranged from 0% to 16%. Stock Awards Withholdings For Stock Awards granted to employees, the number of shares issued on the date the Stock Awards vest is net of the tax withholding requirements paid on behalf of the employees. In 2015, 2014 and 2013, the Company withheld 68,101, 15,769, and 24,249 shares of common stock, respectively, to satisfy its employees’ tax obligations of $1.0 million, $156,000, and $222,000, respectively. The Company paid this amount in cash to the appropriate taxing authorities. Although shares withheld are not issued, they are treated as common stock repurchases for accounting and disclosure purposes, as they reduce the number of shares that would have been issued upon vesting. Stock Repurchase Program On August 5, 2013, the Company’s Board of Directors modified Cutera, Inc.’s Stock Repurchase Program, originally adopted in November 2012, to permit an additional $10 million of its issued and outstanding common shares to be repurchased. As modified, the Stock Repurchase Program permitted the Company to purchase an aggregate of $20 million of its common stock through a 10b5-1 program based on predetermined pricing and volume as well as open-market purchases that are subject to management discretion and regulatory restrictions In the year ended December 31, 2013, the Company repurchased 1,060,447 shares of its common stock at an average price of $9.43 per share, for approximately $10.0 million. The Company did not repurchase any shares of its common stock in the year ended December 31, 2014. As of December 31, 2014, there remained $10.0 million available under the modified Stock Repurchase Program to repurchase the Company’s common stock. On February 18, 2015, the Company’s Board of Directors approved the expansion of its stock repurchase program from $10 million to $40 million. In the year ended December 31, 2015, the Company repurchased 2,818,038 shares of its common stock at an average price of $14.19 per share, for approximately $40.0 million.

Note 7 - Income Taxes

Note 7 - Income Taxes	12 Months Ended
	Dec. 31, 2015
Notes to Financial Statements
Income Tax Disclosure [Text Block]	NOTE 7 —INCOME TAXES The Company files income tax returns in the U.S. federal and various state and local jurisdictions and foreign jurisdictions. The Company’s loss before provision for income taxes consisted of the following (in thousands): Year Ended December 31, 201 5 201 4 201 3 U.S. $ (4,588 ) $ (10,592 ) $ (4,919 ) Foreign 360 199 118 Loss before income taxes $ (4,228 ) $ (10,393 ) $ (4,801 ) The components of the provision for income taxes are as follows (in thousands): Year Ended December 31, 201 5 201 4 201 3 Current: Federal $ (7 ) $ (7 ) $ (329 ) State 23 19 7 Foreign 218 110 159 Total Current 234 122 (163 ) Deferred: Federal 33 32 33 State — — — Foreign (55 ) 65 76 Total Deferred (22 ) 97 109 Tax provision (benefit) $ 212 $ 219 $ (54 ) The Company’s deferred tax asset consists of the following (in thousands): December 31, 201 5 201 4 Net operating loss $ 14,231 $ 12,138 Stock-based compensation 2,462 3,884 Other accruals and reserves 4,679 4,735 Credits 4,477 3,808 Foreign 350 295 Accrued warranty 657 417 Depreciation and amortization 1,105 998 Other 5 66 Deferred tax asset before valuation allowance 27,966 26,341 Valuation allowance (27,616 ) (26,046 ) Deferred tax asset after valuation allowance 350 295 Deferred tax liability on goodwill (103 ) (71 ) Net deferred tax asset $ 247 $ 224 The Company’s deferred tax asset balance is reported in the following captions in the Consolidated Balance Sheets (in thousands): December 31, 201 5 201 4 Deferred tax asset (current portion) $ — $ 26 Deferred tax asset, net of current portion 350 269 Accrued liabilities (non-current deferred tax liability) (103 ) (71 ) Net deferred tax asset after valuation allowance $ 247 $ 224 The differences between the U.S. federal statutory income tax rates to the Company’s effective tax rate are as follows: Year Ended December 31, 201 5 201 4 201 3 U.S. federal statutory income tax rate 34.00 % 34.00 % 35.00 % State tax rate, net of federal benefit 1.94 1.62 1.57 Benefit for research and development credit 15.92 7.24 19.91 Income tax refund 0.18 0.08 0.19 Foreign rate differential (1.47 ) (1.04 ) (4.53 ) Changes in unrecognized tax benefits (1.15 ) (0.53 ) 2.60 Meals and entertainment (3.23 ) (1.11 ) (2.10 ) Stock-based compensation (19.19 ) (5.56 ) (34.33 ) Valuation allowance (31.63 ) (36.58 ) (17.82 ) Other (0.38 ) (0.22 ) 0.63 Effective tax rate (5.01 )% (2.10 )% 1.12 % The Company recognizes deferred tax assets for the expected future tax consequences of temporary differences between the financial reporting and tax bases of assets and liabilities, and for operating losses and tax credit carryforwards. The Company records a valuation allowance to reduce the deferred tax assets to their estimated realizable value, when it is more likely than not that it will not be able to generate sufficient future taxable income to realize the net carrying value. The Company has recorded a full valuation allowance against its U.S. federal and state deferred tax assets due to its history of operating losses. In the years ended December 31, 2015, 2014 and 2013, there was a net increase in the valuation allowance of $1.6 million, $3.3 million, and $0.9 million, respectively. As of December 31, 2015, the Company had cumulative net operating loss carry-forwards for federal and state income tax reporting purposes of approximately $41.8 million and $11.2 million, respectively. The federal net operating loss carry-forwards if not utilized will begin to expire beginning in 2029 through the year 2035 and the state net operating loss carry-forwards if not utilized will expire beginning in 2029 through the year 2035. The Company maintained a valuation allowance against these net operating loss carry-forwards as of December 31, 2015. As of December 31, 2015, the Company had research and development tax credits for federal and state income tax purposes of approximately $4.7 million and $5.7 million, respectively. The federal research and development tax credits if not utilized will expire beginning in 2024 through the year 2035. The state research and development credits can be carried forward indefinitely, except for $284,000, which will expire at various dates through the year 2020. The Company maintained a valuation allowance against these tax credits as of December 31, 2015. Included in the net operating loss and research and development tax credit carryforwards are approximately $5.2 million of excess tax benefits from employee stock option exercises, for which the Company has not recorded a deferred tax asset. When such excess tax benefits are ultimately realized, the Company will record the deferred tax asset and the credit to additional paid in capital. Utilization of U.S. net operating losses and tax credit carryforwards may be limited by “ownership change” rules, as defined in Section 382 of the Internal Revenue Code. Similar rules may apply under state tax laws. The Company has not conducted a study to-date to assess whether a limitation would apply under Section 382 of the Internal Revenue Code as and when it starts utilizing its net operating losses and tax credits. The Company will continue to monitor activities in the future. In the event the Company previously experienced an ownership change, or should experience an ownership change in the future, the amount of net operating losses and research and development credit carryovers available in any taxable year could be limited and may expire unutilized. Undistributed earnings of the Company’s foreign subsidiaries at December 31, 2015 and 2014 were approximately $2.8 million and $2.6 million, respectively, and are considered to be indefinitely reinvested and, accordingly, no provision for federal and state income taxes has been provided thereon. If these foreign earnings were to be repatriated in the future, the related U.S. tax liability would be reduced by any foreign income taxes previously paid on these earnings. Because of the availability of U.S. foreign tax credits, the determination of the unrecognized deferred tax liability on these earnings is not practicable. Uncertain Tax Positions The Company establishes reserves for uncertain tax positions based on the largest amount that is more-likely-than-not to be sustained. An uncertain income tax position will not be recognized if it has less than a 50% likelihood of being sustained. The Company has provided taxes and related interest and penalties due for potential adjustments that may result from examinations of open U.S. federal, state and foreign tax years. If the Company ultimately determines that payment of these amounts are not more-likely-than-not, the Company will reverse the liability and recognize a tax benefit during the period in which the Company makes the determination. The Company will record an additional charge in the Company’s provision for taxes in the period in which the Company determines that the recorded tax liability is less than the Company expects the ultimate assessment to be. The Company’s policy is to include interest and penalties related to gross unrecognized tax benefits within the provision for income taxes. The Company files U.S., state, and foreign income tax returns in jurisdictions with varying statutes of limitations. The 2005 through 2015 tax years generally remain subject to examination by U.S., federal and California state tax authorities due to the Company’s net operating loss and credit carryforwards. For significant foreign jurisdictions, the 2010 through 2015 tax years generally remain subject to examination by their respective tax authorities. The following table summarizes the activity related to the Company’s gross unrecognized tax benefits in December 31, 2013 to December 31, 2015 (in thousands): Year Ended December 31, 201 5 201 4 201 3 Balance at beginning of year $ 597 $ 535 $ 536 Increases related to prior year tax positions — — 36 Increases related to current year tax positions 54 62 116 Decreases related to lapsing of statute of limitations — — (153 ) Balance at end of year $ 651 $ 597 $ 535 The Company’s total unrecognized tax benefits that, if recognized, would affect its effective tax rate at December 31, 2015 and 2014, were approximately $33,000. As of December 31, 2015 and 2014, the Company had accrued approximately $45,000 and $41,000 for payment of interest, respectively. Interest included in the provision for income taxes was not significant in all the periods presented. The Company has not accrued any penalties related to its uncertain tax positions as it believes that it is more likely than not that there will not be any assessment of penalties. The Company expects that the amount of unrecognized tax benefits will not materially change within the next 12 months.

Note 8 - Net Loss Per Share

Note 8 - Net Loss Per Share	12 Months Ended
	Dec. 31, 2015
Notes to Financial Statements
Earnings Per Share [Text Block]	NOTE 8 —NET LOSS PER SHARE Diluted earnings per share is the same as basic earnings per share for the periods presented because the inclusion of outstanding common stock equivalents would be anti-dilutive. The following number of weighted shares outstanding, prior to the application of the treasury stock method, were excluded from the computation of diluted net loss per common share for the years presented because including them would have had an anti-dilutive effect (in thousands): Year Ended December 31, 2015 201 4 201 3 Options to purchase common stock 2,575 3,489 3,830 Restricted stock units 296 213 173 Employee stock purchase plan shares 93 86 72 Performance stock units 24 37 34 Total 2,988 3,825 4,109

Note 9 - Defined Contribution P

Note 9 - Defined Contribution Plan	12 Months Ended
	Dec. 31, 2015
Notes to Financial Statements
Pension and Other Postretirement Benefits Disclosure [Text Block]	NOTE 9 —DEFINED CONTRIBUTION PLAN In the U.S., the Company has an employee savings plan (“401(k) Plan”) that qualifies as a deferred salary arrangement under Section 401(k) of the Internal Revenue Code. Eligible employees may make voluntary contributions to the 401(k) Plan up to 100% of their annual compensation, subject to statutory annual limitations. In 2015, 2014 and 2013, the Company made discretionary contributions under the 401(k) Plan of $244,000, $211,000 and $184,000, respectively. For the Company’s Japanese subsidiary, a discretionary employee retirement plan has been established. In addition, for some of the Company’s other foreign subsidiaries, the Company deposits funds with insurance companies, third-party trustees, or into government-managed accounts consistent with the requirements of local laws. The Company has fully funded or accrued for its obligations as of December 31, 2015, and the related expense for each of the three years then ended was not significant.

Note 10 - Segment Information a

Note 10 - Segment Information and Revenue by Geograpy and Products	12 Months Ended
	Dec. 31, 2015
Notes to Financial Statements
Segment Reporting Disclosure [Text Block]	NOTE 10 —SEGMENT INFORMATION AND REVENUE BY GEOGRAP Y AND PRODUCTS Operating segments are identified as components of an enterprise about which separate discrete financial information is available for evaluation by the chief operating decision maker, or decision-making group, in making decisions how to allocate resources and assess performance. The Company’s chief decision maker, as defined under the FASB’s ASC 280 guidance, is a combination of the Chief Executive Officer and the Executive Vice President and Chief Financial Officer. To date, the Company’s chief decision maker has viewed its operations, managed its business, and used one measurement of profitability for the one operating segment – which sells aesthetic medical equipment and services, and distributes skincare products, to qualified medical practitioners. Substantially all of the Company’s long-lived assets are located in the U.S. The following table summarizes revenue by geographic region, based on the location of the customer, and by product category (in thousands): Year Ended December 31, 201 5 201 4 201 3 Revenue mix by geography: United States $ 48,916 $ 35,494 $ 31,487 Japan 11,504 13,328 14,205 Asia, excluding Japan 15,596 11,023 11,263 Europe 7,728 7,792 7,358 Rest of the world 11,017 10,501 10,281 Consolidated total $ 94,761 $ 78,138 $ 74,594 Revenue mix by product category: Products $ 71,223 $ 53,106 $ 48,374 Hand Piece Refills 2,910 3,714 4,267 Skincare 2,889 3,479 4,264 Total product revenue 77,022 60,299 56,905 Service 17,739 17,839 17,689 Consolidated total $ 94,761 $ 78,138 $ 74,594

Note 11 - Commitments and Conti

Note 11 - Commitments and Contingencies	12 Months Ended
	Dec. 31, 2015
Notes to Financial Statements
Commitments and Contingencies Disclosure [Text Block]	NOTE 11 —COMMITMENTS AND CONTINGENCIES Facility Leases As of December 31, 2015, the Company was committed to minimum lease payments for facilities and other leased assets under long-term non-cancelable operating leases as follows (in thousands): Year Ending December 31, Amount 2016 $ 1,882 2017 1,857 2018 154 2019 16 2020 4 Future minimum rental payments $ 3,913 Gross rent expense recognized in the years ended December 31, 2015, 2014 and 2013 was $1.5 million, $1.5 million and $1.6 million, respectively. Vehicle Leases As of December 31, 2015, the Company was committed to minimum lease payments for vehicles leased under long-term non-cancelable capital leases as follows (in thousands): Year Ending December 31, Amount 2016 $ 271 2017 102 2018 113 2019 19 Future minimum lease payments $ 505 Purchase Commitments The Company maintains certain open inventory purchase commitments with its suppliers to ensure a smooth and continuous supply for key components. The Company’s liability in these purchase commitments is generally restricted to a forecasted time-horizon as agreed between the parties. These forecasted time-horizons can vary among different suppliers. The Company’s open inventory purchase commitments with its suppliers were not significant at December 31, 2015. Indemnifications In the normal course of business, the Company enters into agreements that contain a variety of representations, warranties, and indemnification obligations. For example, the Company has entered into indemnification agreements with each of its directors and executive officers and certain key employees. The Company’s exposure under its various indemnification obligations is unknown and not reasonably estimable as they involve future claims that may be made against the Company. As such, the Company has not accrued any amounts for such obligations. Litigation and Litigation Settlements The Company is named from time to time as a party to product liability and contractual lawsuits in the normal course of business. The Company routinely assesses the likelihood of any adverse judgments or outcomes related to legal matters and claims, as well as ranges of probable losses. A determination of the amount of the reserves required, if any, for these contingencies is made after analysis of each known issue, historical experience, whether it is more likely than not that the Company shall incur a loss, and whether the loss is estimable. As of December 31, 2015 and 2014, the Company had accrued $110,000 and $74,000, respectively, related to pending product liability and contractual lawsuits.

Note 12 - Subsequent Events

Note 12 - Subsequent Events	12 Months Ended
	Dec. 31, 2015
Notes to Financial Statements
Subsequent Events [Text Block]	NOTE 1 2 —SUBSEQUENT EVENT S On February 8, 2016, the Company announced that its Board of Directors approved the expansion of its Stock Repurchase Program by $10 million, under which the Company is authorized to repurchase shares of its common stock. On February 11, 2016, Kendall Jenner and Kendall Jenner Inc. (“Plaintiffs”), filed a lawsuit against the Company in the U.S. District Court, Central District of California, alleging trademark infringement, false endorsement and violation of Jenner’s right of publicity. The claims arise out of alleged advertising referring to news articles describing Jenner’s blog posting regarding her use of Cutera’s Laser Genesis treatment for her acne. In their complaint, the Plaintiffs state that they are seeking “at least $10 million” in compensatory damages and reasonable costs and attorney’s fees. The Company is presently investigating the matter and intends to defend the matter vigorously. While the Company believes it has meritorious defenses to the matter, the potential outcome of this litigation, or its impact upon the Company, cannot be predicted at this time.

Note 13 - Supplementary Financi

Note 13 - Supplementary Financial Data (Unaudited)	12 Months Ended
	Dec. 31, 2015
Notes to Financial Statements
Quarterly Financial Information [Text Block]	SUPPLEMENTARY FINANCIAL DATA (UNAUDITED) (In thousands, except per share amounts) Quarter ended: Dec. 31, 201 5 Sept. 30, 201 5 June 30, 201 5 March 31, 201 5 Dec. 31, 201 4 Sept. 30, 201 4 June 30, 201 4 March 31, 201 4 Net revenue $ 30,042 $ 23,085 $ 22,563 $ 19,071 $ 25,499 $ 18,726 $ 17,724 $ 16,189 Cost of revenue 12,145 9,594 9,687 9,052 11,679 7,935 7,848 7,303 Gross profit 17,897 13,491 12,876 10,019 13,820 10,791 9,876 8,886 Operating expenses: Sales and marketing 9,899 8,790 9,066 8,187 9,356 7,805 7,754 7,331 Research and development 2,812 2,748 2,728 2,445 2,649 2,628 2,622 2,644 General and administrative 3,189 2,937 3,014 2,989 3,407 2,897 2,335 2,564 Total operating expenses 15,900 14,475 14,808 13,621 15,412 13,330 12,711 12,539 Income (loss) from operations 1,997 (984 ) (1,932 ) (3,602 ) (1,592 ) (2,539 ) (2,835 ) (3,653 ) Interest and other income, net 105 84 96 8 8 — 138 80 Income (loss) before income taxes 2,102 (900 ) (1,836 ) (3,594 ) (1,584 ) (2,539 ) (2,697 ) (3,573 ) Income tax provision 52 57 53 50 41 97 44 37 Net income (loss) $ 2,050 $ (957 ) $ (1,889 ) $ (3,644 ) $ (1,625 ) $ (2,636 ) $ (2,741 ) $ (3,610 ) Net income (loss) per share—basic $ 0.16 $ (0.07 ) $ (0.13 ) $ (0.25 ) $ (0.11 ) $ (0.18 ) $ (0.19 ) $ (0.26 ) Net income (loss) per share—diluted $ 0.15 $ (0.07 ) $ (0.13 ) $ (0.25 ) $ (0.11 ) $ (0.18 ) $ (0.19 ) $ (0.26 ) Weighted average number of shares used in per share calculations: Basic 12,978 13,827 14,441 14,611 14,425 14,334 14,231 14,021 Diluted 13,591 13,827 14,441 14,611 14,425 14,334 14,231 14,021

Schedule II - Valuation and Qua

Schedule II - Valuation and Qualifying Accounts	12 Months Ended
	Dec. 31, 2015
Notes to Financial Statements
Schedule of Valuation and Qualifying Accounts Disclosure [Text Block]	VALUATION AND QUALIFYING ACCOUNTS (in thousands) For the Year s Ended December 31, 201 5 , 20 14 and 20 13 Balance at Beginning of Year Additions Deductions Balance at End of Year Deferred tax assets valuation allowance Year ended December 31, 2015 $ 26,046 $ 3,327 $ 1,757 $ 27,616 Year ended December 31, 2014 $ 22,762 $ 3,780 $ 496 $ 26,046 Year ended December 31, 2013 $ 21,907 $ 3,437 $ 2,582 $ 22,762 Balance at Beginning of Year Additions Deductions Balance at End of Year Allowance for doubtful accounts receivable Year ended December 31, 2015 $ — $ 4 $ — $ 4 Year ended December 31, 2014 $ 19 $ 4 $ 23 $ — Year ended December 31, 2013 $ — $ 19 $ — $ 19

Significant Accounting Policies

Significant Accounting Policies (Policies)	12 Months Ended
	Dec. 31, 2015
Accounting Policies [Abstract]
Consolidation, Subsidiaries or Other Investments, Consolidated Entities, Policy [Policy Text Block]	Description of Operations and Principles of Consolidation Cutera, Inc. (“Cutera” or the “Company”) CoolGlide ® xeo solera ® GenesisPlus excel V truSculpt excel HR enlighten Titan ® truSculpt (“Merz”) Radiesse Titan truSculpt Headquartered in Brisbane, California, the Company has wholly-owned subsidiaries that are currently operational in Australia, Belgium, Canada, France, Hong Kong, Japan, Spain and Switzerland, that market, sell and service its products outside of the United States. The Consolidated Financial Statements include the accounts of the Company and its subsidiaries. All inter-company transactions and balances have been eliminated.
Use of Estimates, Policy [Policy Text Block]	Use of Estimates The preparation of Consolidated Financial Statements in conformity with generally accepted accounting principles in the United States of America (“GAAP”) requires the Company’s management to make estimates and assumptions that affect the amounts reported and disclosed in the financial statements and the accompanying notes. Actual results could differ materially from those estimates. On an ongoing basis, the Company evaluates their estimates, including those related to warranty obligation, sales commission, accounts receivable and sales allowances, valuation of inventories, fair values of acquired intangible assets, useful lives of intangible assets and property and equipment, fair values of options to purchase the Company’s common stock and other share based awards, recoverability of deferred tax assets, and effective income tax rates, among others. Management bases their estimates on historical experience and on various other assumptions that are believed to be reasonable, the results of which form the basis for making judgments about the carrying values of assets and liabilities.
Cash and Cash Equivalents Marketable Investments and Long-term Investments [Policy Text Block]	Cash, Cash Equivalents, and Marketable Investments The Company invests its cash primarily in money market funds and in highly liquid debt instruments of U.S. federal and municipal governments and their agencies, commercial paper and corporate debt securities. All highly liquid investments with stated maturities of three months or less from date of purchase are classified as cash equivalents; all highly liquid investments with stated maturities of greater than three months are classified as marketable investments. The majority of the Company’s cash and investments are held in U.S. banks and its foreign subsidiaries maintain a limited amount of cash in their local banks to cover their short term operating expenses. The Company determines the appropriate classification of its investments in marketable securities at the time of purchase and re-evaluates such designation at each balance sheet date. The Company’s marketable securities have been classified and accounted for as available-for-sale. Investments with remaining maturities more than one year are viewed by the Company as available to support current operations, and are classified as current assets under the caption marketable investments in the accompanying Consolidated Balance Sheets. Investments in marketable securities are carried at fair value, with the unrealized gains and losses reported as a component of stockholders’ equity. Any realized gains or losses on the sale of marketable securities are determined on a specific identification method, and such gains and losses are reflected as a component of interest and other income, net.
Fair Value Measurement, Policy [Policy Text Block]	Fair Value Measurements Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. In determining fair value, the Company utilizes valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs to the extent possible as well as considers counterparty credit risk in its assessment of fair value. Carrying amounts of the Company’s financial instruments, including cash equivalents, accounts receivable, accounts payable and accrued liabilities, approximate their fair values as of the balance sheet dates because of their generally short maturities. The fair value hierarchy distinguishes between (1) market participant assumptions developed based on market data obtained from independent sources (observable inputs) and (2) an entity’s own assumptions about market participant assumptions developed based on the best information available in the circumstances (unobservable inputs). The fair value hierarchy consists of three broad levels, which gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). The three levels of the fair value hierarchy are described below: ? Level 1: Quoted prices (unadjusted) in active markets that are accessible at the measurement date for assets or liabilities. ? Level 2: Directly or indirectly observable inputs as of the reporting date through correlation with market data, including quoted prices for similar assets and liabilities in active markets and quoted prices in markets that are not active. Level 2 also includes assets and liabilities that are valued using models or other pricing methodologies that do not require significant judgment since the input assumptions used in the models, such as interest rates and volatility factors, are corroborated by readily observable data from actively quoted markets for substantially the full term of the financial instrument. ? Level 3: Unobservable inputs that are supported by little or no market activity and reflect the use of significant management judgment. These values are generally determined using pricing models for which the assumptions utilize management’s estimates of market participant assumptions.
Marketable Securities, Policy [Policy Text Block]	Impairment of Marketable Investments After determining the fair value of available-for-sales debt instruments, gains or losses on these securities are recorded to other comprehensive income, until either the security is sold or the Company determines that the decline in value is other-than-temporary. The primary differentiating factors that the Company considers in classifying impairments as either temporary or other-than-temporary impairments are the Company’s intent and ability to retain the investment in the issuer for a period of time sufficient to allow for any anticipated recovery in market value or the maturity of the investment, the length of the time and the extent to which the market value of the investment has been less than cost and the financial condition and near-term prospects of the issuer. There were no other-than-temporary impairments in the years ended December 31, 2015, 2014, and 2013.
Allowances for Sales Returns and Doubtful Accounts [Policy Text Block]	Allowance for Sales Returns and Doubtful Accounts The allowance for sales returns is based on the Company’s estimates of potential future product returns and other allowances related to current period product revenue. The Company analyzes historical returns, current economic trends and changes in customer demand and acceptance of our products. The allowance for doubtful accounts is based on the Company’s assessment of the collectability of customer accounts. The Company regularly reviews the allowance by considering factors such as historical experience, credit quality, the age of the accounts receivable balances, and current economic conditions that may affect a customer’s ability to pay.
Concentration Risk, Credit Risk, Policy [Policy Text Block]	Concentration of Credit Risk and Other Risks and Uncertainties Financial instruments that potentially subject the Company to concentrations of risk consist principally of cash, cash equivalents, marketable investments and accounts receivable. The Company’s cash and cash equivalents are primarily invested in deposits and money market accounts with three major financial institutions in the U.S. In addition, the Company has operating cash balances in banks in each of the international locations in which it operates. Deposits in these banks may exceed the amount of insurance provided on such deposits, if any. Management believes that these financial institutions are financially sound and, accordingly, believes that minimal credit risk exists. The Company has not experienced any losses on its deposits of cash and cash equivalents. The Company invests in debt instruments, including bonds of the U.S. Government, its agencies and municipalities. The Company has also invested in other high grade investments such as commercial paper and corporate bonds. By policy, the Company restricts its exposure to any single issuer by imposing concentration limits. To minimize the exposure due to adverse shifts in interest rates, the Company maintains investments at an average maturity of generally less than eighteen months. Accounts receivable are typically unsecured and are derived from revenue earned from worldwide customers. The Company performs credit evaluations of its customers and maintains reserves for potential credit losses. As of December 31, 2015, there was one customer who represented more than 10% of the Company’s net accounts receivable. No single customer represented more than 10% of net accounts receivable as of December 31, 2014. During the years ended December 31, 2015, 2014, and 2013, domestic revenue accounted for 52%, 45%, and 42%, respectively, of total revenue, while international revenue accounted for 48%, 55%, and 58%, respectively, of total revenue. No single customer represented more than 10% of total revenue for any of the years ended December 31, 2015, 2014, and 2013. The Company is also subject to risks common to companies in the medical device industry, including, but not limited to, new technology innovations, dependence on key personnel, dependence on key suppliers, protection of proprietary technology, product liability, Food and Drug Administration and/ or international regulatory approvals required for new products and compliance with government regulations.
Inventory, Policy [Policy Text Block]	Inventories Inventories are stated at the lower of cost or market, cost being determined on a standard cost basis, which approximates actual cost on a first-in, first-out basis, and market being determined as the lower of replacement cost or net realizable value. The Company includes demonstration units within inventories. Demonstration units are carried at cost and amortized over an estimated economic life of two years. Amortization expense related to demonstration units is recorded in Products cost of revenue or in the respective operating expense line based on which function and purpose for which the demonstration units are being used. Proceeds from the sale of demonstration units are recorded as revenue and all costs incurred to refurbish the systems prior to sale are charged to cost of revenue. As of December 31, 2015 and 2014, demonstration inventories, net of accumulated depreciation, included in Finished goods inventory balance was $2.3 million.
Property, Plant and Equipment, Policy [Policy Text Block]	Property and Equipment Property and equipment are stated at cost, net of accumulated depreciation. Depreciation recognized is on a straight-line basis over the estimated useful lives of the assets, generally as follows: Useful Lives (years) Leasehold improvements Lesser of useful life or term of lease Office equipment and furniture 3 Machinery and equipment 3 Upon sale or retirement of property and equipment, the costs and related accumulated depreciation and amortization are removed from the balance sheet and the resulting gain or loss is reflected in operating expenses. Maintenance and repairs are charged to operations as incurred. Depreciation expense related to property and equipment for 2015, 2014 and 2013, was $734,000, $562,000 and $602,000 respectively. Amortization expense for vehicles leased under capital leases is included in depreciation expense.
Goodwill and Intangible Assets, Intangible Assets, Policy [Policy Text Block]	Goodwill and Intangible Assets Goodwill, which represents the excess of the purchase price over the fair value of net tangible and identifiable intangible assets, is not subject to amortization, but is subject to at least an annual assessment for impairment, applying a fair-value based test. The Company’s intangible assets are comprised of purchased technology sub-licenses, acquired customer relationships, and those assets acquired in conjunction with an asset acquisition in February 2012 including, existing customer relationships, product portfolio and a manufacturing process for the products acquired. All identifiable intangibles have finite lives and are carried at cost, net of accumulated amortization. Amortization was recorded using the straight-line method, except for a portion of the purchased intangibles which are being amortized on a declining-balance basis, over their respective useful lives, which range from approximately 11 months to 10 years.
Impairment or Disposal of Long-Lived Assets, Policy [Policy Text Block]	Impairment of Long-lived Assets Goodwill is not amortized, but is tested for impairment at least annually or as circumstances indicate their value may no longer be recoverable. The goodwill impairment test is generally performed annually during the fourth fiscal quarter (or earlier if impairment indicators arise). The Company continues to operate in one segment, which is considered to be the sole reporting unit and therefore, goodwill was tested for impairment at the enterprise level. As of December 31, 2015, there has been no impairment of goodwill. The Company evaluates the recoverability of its long-lived assets, which include amortizable intangible and tangible assets. Acquired intangible assets with definite useful lives are amortized over their useful lives. The Company evaluates long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying value of long-lived assets may not be recoverable. The Company recognizes such impairment in the event the net book value of such assets exceeds the future undiscounted cash flows attributable to such assets. In 2014, the Company’s impairment review indicated that certain purchased long-lived assets associated with the Iridex acquisition were impaired and an impairment charge of $650,000 was recognized. No other impairment losses were incurred in the periods presented.
Standard Product Warranty, Policy [Policy Text Block]	Warranty Obligations The Company provides a standards one-year warranty on all systems sold to end-customers. Warranty coverage provided is for labor and parts necessary to repair the systems during the warranty period. For sales to distributors, the Company generally provides a 14-month warranty for parts only, with labor being provided to the end customer by the distributor. The Company accounts for the estimated warranty cost of the standard warranty coverage as a charge to costs of revenue when revenue is recognized. The estimated warranty cost is based on historical product performance. To determine the estimated warranty reserve, the Company utilizes actual service records to calculate the average service expense per system and applies this to the equivalent number of units exposed under warranty. The Company updates these estimated charges every quarter.
Revenue Recognition, Policy [Policy Text Block]	Revenue Recognition Products revenue is recognized when title and risk of ownership has been transferred, provided that: ? Persuasive evidence of an arrangement exists; ? The price is fixed or determinable; ? Delivery has occurred or services have been rendered; and ? Collectability is reasonably assured. Transfer of title and risk of ownership occurs when the product is shipped to the customer or when the customer receives the product, depending on the nature of the arrangement. Revenue is recorded net of customer and distributor discounts. When collectability is not reasonably assured, the Company recognizes revenue upon receipt of cash payment. Sales to customers and distributors do not include any return or exchange rights. In addition, the Company’s distributor agreements obligate the distributor to pay the Company for the sale regardless of whether the distributor is able to resell the product. Shipping and handling charges are invoiced to customers based on the amount of products sold. Shipping and handling fees are recorded as revenue and the related expense as a component of Products cost of revenue. Multiple-element arrangements A multiple-element arrangement includes the sale of one or more tangible product offerings with one or more associated services offerings, each of which are individually considered separate units of accounting. The Company determined that its multiple-element arrangements are generally comprised of the following elements that are recognized as separate units of accounting: Product and service contracts. For multiple-element arrangements revenue is allocated to each element based on their relative selling prices. Relative selling prices are based on vendor specified objective evidence (“VSOE”), if available, third-party evidence of selling price (“TPE”) when VSOE does not exist, and on best estimate of selling price (“BESP”) if VSOE and TPE do not exist. Because the Company has neither VSOE nor TPE for its systems and service contracts, the allocation of revenue is based on the Company’s BESPs for each element. The objective of BESP is to determine the price at which the Company would transact a sale if the product or service was sold on a stand-alone basis. The Company determines BESP for its products or services by considering multiple factors including, prices charged for stand-alone sales, features and functionality of the products and services, geographies, type of customer, and market conditions. Revenue allocated to each element is then recognized when the other revenue recognition criteria are met for the element. In the first and second quarter of 2013, with respect to the sale of its truSculpt product, the Company provided promotions that included an unlimited number of “free” hand piece replacements during a stated trial period of 3 months or 12 months. These free refills were treated as an undelivered element under FASB ASC 605-25 in the original revenue transaction. The Company deferred the relative fair value related to the estimated number of hand piece replacements to be delivered during the promotional period and recognized that deferred revenue over the free refills promotion period. Commencing in the third quarter of 2013, the Company now includes unlimited refills as part of the truSculpt standard warranty and the Company no longer accounts for the truSculpt truSculpt The Company also offers customers extended service contracts. Revenue under service contracts is recognized on a straight-line basis over the period of the applicable service contract. Service revenue billed on a time and material basis, from customers whose systems are not under a service contact, is recognized as the services are provided. Service revenue for the years ended December 31, 2015, 2014, and 2013 was $17.7 million, $17.8 million, and $17.7 million, respectively.
Cost of Sales, Policy [Policy Text Block]	Cost of Revenue Cost of revenue consists primarily of material, finished and semi-finished products purchased from third-party manufacturers, labor, stock-based compensation expenses, overhead involved in our internal manufacturing processes, technology license amortization and royalties, costs associated with product warranties and any inventory or intangible write-downs. The Company's system sales include a control console, universal graphic user interface, control system software, high voltage electronics and a combination of applications (referred to as hand pieces). Hand pieces are programmed to have a limited number of uses to ensure the safety of the device to patients. The Company sells refurbished hand pieces, or "refills," of its Titan product and provides for refurbishment of other hand pieces under warranty or service contracts. When customers purchase a replacement hand piece (or “refill”) or are provided a replacement hand piece under a warranty or service contract, Cutera ships the customer a previously refurbished unit. Upon the receipt of the expended hand piece from the customer the Company capitalizes the expended hand piece as inventory at the estimated fair value. Cost of revenue includes the costs incurred to refurbish hand pieces.
Research and Development Expense, Policy [Policy Text Block]	Research and Development Expenditures Costs related to research, design, development and testing of products are charged to research and development expense as incurred. Expenses incurred primarily relate to employees, facilities, material, third party contractors and clinical and regulatory fees.
Advertising Costs, Policy [Policy Text Block]	Advertising Costs Advertising costs are included as part of sales and marketing expense and are expensed as incurred. Advertising expenses for 2015, 2014 and 2013 were $1.2 million, $1.6 million and $1.6 million, respectively.
Share-based Compensation, Option and Incentive Plans Policy [Policy Text Block]	Stock-based Compensation The Company accounts for its employee stock options under the fair value method of accounting using a Black-Scholes valuation model to measure stock option expense at the date of grant. The fair value of Restricted Stock Units (“RSUs”) is measured at the market price of the Company’s stock on the date of grant. The fair value of Performance Stock Units (“PSUs”) that have operational measurement goals, are measured at the market price of the Company’s stock on the date of grant. PSUs with market-based measurement goals are valued using the Monte-Carlo simulation option-pricing model. The Monte-Carlo simulation option-pricing model uses the same input assumptions as the Black-Scholes model, however, it further incorporates into the fair-value determination the possibility that the market condition may not be satisfied. Stock-based compensation expense for market-based PSU awards is recognized regardless of whether the market condition is satisfied, provided that the requisite service has been provided. Stock-based compensation expense, net of estimated forfeitures, is recognized over the requisite service period. For RSUs and PSUs, the Company issues shares on the vesting dates, net of the minimum tax withholding requirements to be paid by the Company on behalf of its employees. As a result, the actual number of shares issued will be fewer than the actual number of RSUs and PSUs that vest. The Company records the liability for withholding amounts to be paid by the Company as a reduction to additional paid-in capital when the shares are issued. Cash flows resulting from the tax benefits due to tax deductions in excess of the compensation cost recognized for stock-based awards for options exercised and for RSUs and PSUs vested during the period (excess tax benefits), are classified as financing cash flows.
Income Tax, Policy [Policy Text Block]	Income Taxes The Company recognizes income taxes under the liability method. The Company recognizes deferred income taxes for differences between the financial reporting and tax bases of assets and liabilities at enacted statutory tax rates in effect for the years in which differences are expected to reverse. The Company recognizes the effect on deferred taxes of a change in tax rates in income in the period that includes the enactment date. For deferred tax assets which are not subject to a valuation allowance, the Company has determined that its future taxable income will be sufficient to recover all of the deferred tax assets. However, should there be a change in the recoverability of the deferred tax assets, the Company could be required to record a valuation allowance against the net carrying value of its deferred tax assets. This would result in an increase to the Company’s tax provision in the period in which they determined that the recovery was not probable. The measurement of deferred taxes often involves an exercise of judgment related to the computation and realization of tax basis. The deferred tax assets and liabilities reflect management’s assessment that tax positions taken, and the resulting tax basis, are more likely than not to be sustained if they are audited by taxing authorities. Also, assessing tax rates that the Company expects to apply and determining the years when the temporary differences are expected to affect taxable income requires judgment about the future apportionment of the Company’s income among the states in which the Company operates. These matters, and others, involve the exercise of significant judgment. Any changes in the Company’s practices or judgments involved in the measurement of deferred tax assets and liabilities could materially impact the Company’s financial condition or results of operations. Valuation allowances are established when necessary to reduce deferred income tax assets to amounts that the Company believes are more likely than not to be recovered. The Company evaluates its deferred tax assets quarterly to determine whether adjustments to the Company’s valuation allowance are appropriate. In making this evaluation, the Company relies on its recent history of pre-tax earnings, estimated timing of future deductions and benefits represented by the deferred tax assets, and its forecasts of future earnings, the latter two of which involve the exercise of significant judgment. The Company maintains a full valuation allowance against its U.S. federal and state deferred tax asset due to a history of operating losses. The Company establishes reserves for uncertain tax positions in accordance with the Income Taxes subtopic of ASC 740. The subtopic prescribes the minimum recognition threshold a tax position is required to meet before being recognized in the financial statements. Additionally, the subtopic provides guidance on de-recognition, measurement, classification, interest and penalties, and transition of uncertain tax positions. The impact of an uncertain income tax position on income tax expense must be recognized at the largest amount that is more-likely-than-not to be sustained. An uncertain income tax position will not be recognized if it has less than a 50% likelihood of being sustained. The Company has provided taxes and related interest and penalties due for potential adjustments that may result from examinations of open U.S. Federal, state and foreign tax years. The Company will reverse the liability and recognize a tax benefit during the period in which the Company makes the determination that the tax position is effectively settled through examination, negotiation, or litigation, or the statute of limitations for the relevant taxing authority to examine and challenge the tax position has expired. The Company will record an additional charge in the Company’s provision for taxes in the period in which the Company determines that the recorded tax liability is less than the Company expects the ultimate assessment to be.
Earnings Per Share, Policy [Policy Text Block]	Computation of Net Loss per Share Basic net income per share is computed using the weighted-average number of shares outstanding during the period. Diluted net income per share is computed using the weighted-average number of shares and dilutive potential shares outstanding during the period. Dilutive potential shares primarily consist of employee stock options. Diluted earnings per share is the same as basic earnings per share for the periods presented because the inclusion of outstanding common stock equivalents would be anti-dilutive. U.S. GAAP requires that employee equity share options, non-vested shares and similar equity instruments granted by the Company be treated as potential common shares outstanding in computing diluted earnings per share. In periods of net income, diluted shares outstanding include the dilutive effect of in-the-money options, which is calculated based on the average share price for each fiscal period using the treasury stock method. Under the treasury stock method, the amount the employee must pay for exercising stock options, the amount of compensation cost for future service that the Company has not yet recognized, and the amount of tax benefits that would be recorded in additional-paid-in-capital when the award becomes deductible are all assumed to be used to repurchase shares.
Comprehensive Income, Policy [Policy Text Block]	Comprehensive Loss Comprehensive loss includes all changes in stockholders’ equity except those resulting from investments or contributions by stockholders. For the periods presented, the accumulated other comprehensive income (loss) consisted solely of the unrealized gains or losses on the Company's available-for-sale investments, net of tax.
Foreign Currency Transactions and Translations Policy [Policy Text Block]	Foreign Currency The U.S. Dollar is the functional currency of the Company’s subsidiaries. Monetary assets and liabilities are re-measured into U.S. Dollars at the applicable period end exchange rate. Sales and operating expenses are re-measured at average exchange rates in effect during each period. Gains or losses resulting from foreign currency transactions are included in net income (loss) and are insignificant for each of the three years ended December 31, 2015. The effect of exchange rate changes on cash and cash equivalents was insignificant for each of the three years presented in the period ended December 31, 2015.
Segment Reporting, Policy [Policy Text Block]	Segments The Company operates in one segment. Management uses one measurement of profitability and does not segregate its business for internal reporting. As of December 31, 2015 and 2014, 68% and 71%, respectively, of all long-lived assets were maintained in the U.S. See Note 10 for details relating to revenue by geography.
New Accounting Pronouncements, Policy [Policy Text Block]	Recent Accounting Pronouncements In May 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Updates (“ASU”) No. 2014-09, Revenue from Contracts with Customers, requiring an entity to recognize the amount of revenue to which it expects to be entitled to for the transfer of promised goods or services to customers. The updated standard will replace most existing revenue recognition guidance in U.S. GAAP when it becomes effective and permits the use of either the retrospective or cumulative effect transition method. Early adoption is not permitted. The updated standard becomes effective for the Company in the first quarter of fiscal year 2018. The Company has not yet selected a transition method and is currently evaluating the effect that the updated standard will have on the Consolidated Financial Statements and related disclosures. In April 2015, the FASB issued ASU No. 2015-05, Customer’s Accounting of Fees Paid in Cloud Computing Arrangement, guidance on accounting for fees paid in cloud computing arrangements. If a cloud computing arrangement includes a software license, then the customer should account for the software license element of the arrangement consistent with the acquisition of other software licenses. If a cloud computing arrangement does not include a software license, the customer should account for the arrangement as a services contract. All software licenses recognized under this guidance will be accounted for consistent with other licenses of intangible assets. The guidance becomes effective for the Company for the first quarter of fiscal 2016. The guidance is not expected to have a material effect on the Company's Consolidated Financial Statements. In July 2015, the FASB issued ASU No. 2015-11, Simplifying the Measurement of Inventory. Currently, an entity is required to measure its inventory at the lower of cost or market, whereby market can be replacement cost, net realizable value, or net realizable value less an approximately normal profit margin. The changes require that inventory be measured at the lower of cost and net realizable value, thereby eliminating the use of the other two market methodologies. Net realizable value is defined as the estimated selling prices in the ordinary course of business less reasonably predictable costs of completion, disposal, and transportation. These changes do not apply to inventories measured using LIFO (last-in, first-out) or the retail inventory method. These changes become effective on January 1, 2017. Management is currently evaluating the effect that the updated standard will have on the Consolidated Financial Statements and related disclosures. In February 2016, the FASB issued ASU 2016-02, Leases . This guidance requires that lease arrangements longer than twelve months result in a lessee recognizing a lease asset and liability. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the income statement. The updated guidance is effective for interim and annual periods beginning after December 15, 2018, and early adoption is permitted. The Company is currently evaluating the impact of the updated guidance on the Company's Consolidated Financial Statements. Adopted Accounting Pronouncements In November 2015, FASB issued ASU No. 2015-17, Balance Sheet Classification of Deferred Taxes, requiring all deferred tax assets and liabilities, and any related valuation allowance, to be classified as non-current on the balance sheet. The classification change for all deferred taxes as non-current simplifies entities’ processes as it eliminates the need to separately identify the net current and net non-current deferred tax asset or liability in each jurisdiction and allocate valuation allowances. The Company elected to prospectively adopt this accounting standard in the fourth quarter of fiscal 2015. No prior periods were retrospectively adjusted and the adoption of this guidance did not have a material effect on the Company’s Consolidated Financial Statements and related disclosures.

Note 1 - Summary of Significa23

Note 1 - Summary of Significant Accounting Policies (Tables)	12 Months Ended
	Dec. 31, 2015
Notes Tables
Property, Plant, and Equipment Useful Lives [Table Text Block]	Useful Lives (years) Leasehold improvements Lesser of useful life or term of lease Office equipment and furniture 3 Machinery and equipment 3

Note 2 - Investment Securities

Note 2 - Investment Securities (Tables)	12 Months Ended
	Dec. 31, 2015
Notes Tables
Investment [Table Text Block]	December 31, 2015 201 4 Cash and cash equivalents: Cash $ 9,830 $ 7,761 Cash equivalents: Money market funds 1,000 242 Commercial paper 38 1,800 Total cash and cash equivalents 10,868 9,803 Marketable securities: U.S. government notes 7,779 18,361 U.S. government agencies 12,608 19,800 Municipal securities 4,346 3,607 Commercial paper 4,040 10,695 Corporate debt securities 8,766 18,880 Total marketable securities 37,539 71,343 Total cash, cash equivalents and marketable securities $ 48,407 $ 81,146
Unrealized Gain (Loss) on Investments [Table Text Block]	December 31, 201 5 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Market Value Cash and cash equivalents $ 10,868 $ — $ — $ 10,868 Marketable investments U.S. government notes 7,780 1 (2 ) 7,779 U.S. government agencies 12,630 3 (25 ) 12,608 Municipal securities 4,344 2 — 4,346 Commercial paper 4,041 1 (2 ) 4,040 Corporate debt securities 8,783 — (17 ) 8,766 Total marketable securities 37,578 7 (46 ) 37,539 Total cash, cash equivalents and marketable securities $ 48,446 $ 7 $ (46 ) $ 48,407 December 31, 201 4 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Market Value Cash and cash equivalents $ 9,803 $ — $ — $ 9,803 Marketable investments U.S. government notes 18,345 17 (1 ) 18,361 U.S. government agencies 19,768 33 (1 ) 19,800 Municipal securities 3,607 3 (3 ) 3,607 Commercial paper 10,693 2 — 10,695 Corporate debt securities 18,875 13 (8 ) 18,880 Total marketable securities 71,288 68 (13 ) 71,343 Total cash, cash equivalents and marketable securities $ 81,091 $ 68 $ (13 ) $ 81,146
Investments Classified by Contractual Maturity Date [Table Text Block]	Amount Due in less than one year (fiscal year 2016) $ 25,558 Due in 1 to 3 years (fiscal year 2017-2018) 11,981 Total marketable securities $ 37,539
Fair Value Measurements, Recurring and Nonrecurring [Table Text Block]	December 31, 201 5 Level 1 Level 2 Level 3 Total Cash equivalents: Money market funds $ 1,000 $ — $ — $ 1,000 Commercial paper — 38 — 38 Short term marketable investments: Available-for-sale securities — 37,539 — 37,539 Total assets at fair value $ 1,000 $ 37,577 $ — $ 38,577 December 31, 201 4 Level 1 Level 2 Level 3 Total Cash equivalents: Money market funds $ 242 $ — $ — $ 242 Commercial paper — 1,800 — 1,800 Short term marketable investments: Available-for-sale securities — 71,343 — 71,343 Total assets at fair value $ 242 $ 73,143 $ — $ 73,385

Note 3 - Acquistion (Tables)

Note 3 - Acquistion (Tables)	12 Months Ended
	Dec. 31, 2015
Notes Tables
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed [Table Text Block]	Purchase price paid $ 5,091 Assets (liabilities acquired): Inventory 1,552 Customer relationship intangible assets 2,510 Other identified intangible assets 780 Goodwill 1,339 Deferred service revenue (780 ) Accrued warranty liability (310 ) Total $ 5,091

Note 4 - Balance Sheet Detail (

Note 4 - Balance Sheet Detail (Tables)	12 Months Ended
	Dec. 31, 2015
Notes Tables
Schedule of Inventory, Current [Table Text Block]	December 31, 2015 201 4 Raw materials $ 7,982 $ 7,185 Finished goods 4,096 3,803 Total $ 12,078 $ 10,988
Property, Plant and Equipment [Table Text Block]	December 31, 201 5 201 4 Leasehold improvements $ 822 $ 641 Office equipment and furniture 2,970 2,964 Machinery and equipment 4,662 4,140 8,454 7,745 Less: Accumulated depreciation (6,981 ) (6,284 ) Property and equipment, net $ 1,473 $ 1,461
Schedule of Intangible Assets and Goodwill [Table Text Block]	Gross Carrying Amount Accumulated Amortization & Impairment Amount Net Amount December 31, 2015 Patent sublicense $ 1,218 $ 1,218 $ — Customer relationship intangible related to acquisition 2,510 2,367 143 Other identified intangible assets related to acquisition 780 780 — Other intangible 155 155 — Goodwill 1,339 — 1,339 Total $ 6,002 $ 4,520 $ 1,482 December 31, 201 4 Patent sublicense $ 1,218 $ 1,206 $ 12 Customer relationship intangible related to acquisition 2,510 1,998 512 Other identified intangible assets related to acquisition 780 780 — Other intangible 155 84 71 Goodwill 1,339 — 1,339 Total $ 6,002 $ 4,068 $ 1,934
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block]	Year ending December 31, Amount 2016 $ 142 2017 1 Total $ 143
Schedule of Accrued Liabilities [Table Text Block]	December 31, 201 5 201 4 Accrued payroll and related expenses $ 7,726 $ 5,533 Accrued sales tax 1,935 1,789 Warranty liability 1,819 1,167 Other accrued liabilities 2,354 2,518 Total $ 13,834 $ 11,007

Note 5 - Warranty and Service27

Note 5 - Warranty and Service Contracts (Tables)	12 Months Ended
	Dec. 31, 2015
Notes Tables
Schedule of Product Warranty Liability [Table Text Block]	December 31, 201 5 201 4 Balance at beginning of year $ 1,167 $ 1,202 Add: Accruals for warranties issued during the year 4,134 2,497 Less: Settlements made during the year (3,482 ) (2,532 ) Balance at end of year $ 1,819 $ 1,167
Deferred Revenue, by Arrangement, Disclosure [Table Text Block]	December 31, 201 5 201 4 Balance at beginning of year $ 12,949 $ 11,637 Add: Payments received 10,378 13,913 Less: Revenue recognized (12,858 ) (12,601 ) Balance at end of year $ 10,469 $ 12,949

Note 6 - Stockholders' Equity28

Note 6 - Stockholders' Equity, Stock Plans and Stock-based Compensation Expense (Tables)	12 Months Ended
	Dec. 31, 2015
Notes Tables
Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block]	Options Outstanding Shares Available For Grant Number of Shares Weighted- Average Exercise Price Weighted-Average Remaining Contractual Life (in years) Aggregate Intrinsic Value (in $ millions (1) Balances as of December 31, 20 1 2 1,644,356 3,788,239 $ 9.44 4.3 $ 2.6 Options granted (1,007,166 ) 1,007,166 $ 8.97 Options exercised — (612,210 ) $ 8.16 Options cancelled (expired or forfeited) 391,033 (391,033 ) $ 10.37 Stock awards granted (399,997 ) — — Stock awards cancelled (expired or forfeited) 81,257 — — Balances as of December 31, 201 3 709,483 3,792,162 $ 9.42 4.2 $ 5.1 Additional shares reserved ( 2 ) 200,000 — — Options granted (486,300 ) 486,300 $ 9.78 Options exercised — (396,970 ) $ 8.33 Options cancelled (expired or forfeited) 418,925 (418,925 ) $ 11.15 Stock awards granted (764,394 ) — — Stock awards cancelled (expired or forfeited) 52,046 — — Balances as of December 31, 201 4 129,760 3,462,567 $ 9.39 3.4 $ 5.7 Additional shares reserved ( 3 ) 1,300,000 — Options granted (129,000 ) 129,000 $ 13,.26 Options exercised — (1,141,904 ) $ 9.20 Options cancelled (expired or forfeited) 300,866 (300,866 ) $ 12.37 Stock awards granted (430,580 ) — — Stock awards cancelled (expired or forfeited) 92,379 — — Balances as of December 31, 201 5 1,263,425 2,148,797 $ 9.31 3.4 $ 7.9 Exercisable as of December 31, 201 5 1,561,916 $ 9.05 2.8 $ 6.1 Expected to vest, net of estimated forfeitures, as of December 31, 2015 505,631 $ 9.92 4.91 $ 1.5
Schedule of Share-based Compensation, Shares Authorized under Stock Option Plans, by Exercise Price Range [Table Text Block]	Options Outstanding Options Exercisable Range of Exercise Prices Number Outstanding Weighted-Average Remaining Contractual Life (in years) Number Outstanding Weighted-Average Exercise Price $6.88 299,090 3.51 259,407 $ 6.88 $7.11 – $8.66 239,152 0.85 236,110 8.51 $8.72 345,057 2.35 345,057 8.72 $8.80 325,116 4.30 158,434 8.80 $8.91 – $9.63 225,345 4.61 157,506 9.11 $9.65 – $10.03 251,399 5.56 85,671 9.82 $10.24 250,034 1.34 250,034 10.24 $10.32 – $14.04 175,604 5.49 39,697 11.18 $15.32 8,000 6.56 — — $21.84 30,000 0.47 30,000 21,.84 $6.88 – $21.84 2,148,797 3.38 1,561,916 $ 9.05
Schedule of Share-based Compensation, Restricted Stock and Restricted Stock Units Activity [Table Text Block]	Number of Shares Weighted Average Grant- Date Fair Value Aggregate Fair Value (1) (in thousands) Aggregate Intrinsic Value ( 2 ) (in thousands ) Outstanding at December 31, 201 2 148,709 $ 6.99 $ 1,338 Granted 188,678 $ 8.94 Vested (3) (119,505 ) $ 7.68 $ 1,091 (4) Forfeited (38,417 ) $ 8.11 Outstanding at December 31, 201 3 179,465 $ 8.34 $ 1,827 Granted 360,563 $ 9.72 Vested (3) (81,157 ) $ 8.62 $ 777 (5) Forfeited (24,550 ) $ 8.14 Outstanding at December 31, 201 4 434,321 $ 9.31 $ 4,639 Granted 203,104 $ 14.81 Vested (3) (222,220 ) $ 11.79 $ 3,285 (6) Forfeited (43,575 ) $ 9.09 Outstanding at December 31, 201 5 371,630 $ 12.39 $ 4,753
Schedule of Compensation Cost for Share-based Payment Arrangements, Allocation of Share-based Compensation Costs by Plan [Table Text Block]	Year Ended December 31, 201 5 201 4 201 3 Stock options $ 1,438 $ 1,811 $ 2,201 RSUs 1,297 875 631 PSUs 1,167 455 162 ESPP 182 158 116 Total stock-based compensation expense $ 4,084 $ 3,299 $ 3,110
Schedule of Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Table Text Block]	Year Ended December 31, 2015 201 4 201 3 Cost of revenue $ 447 $ 560 $ 638 Sales and marketing 1,054 641 744 Research and development 662 581 397 General and administrative 1,921 1,517 1,331 Total stock-based compensation expense $ 4,084 $ 3,299 $ 3,110
Valuation Assumptions and Fair Value of Stock Options and ESPP Grants [Table Text Block]	Stock Options Stock Purchase Plan 201 5 201 4 201 3 201 5 201 4 201 3 Expected term (in years) (1) 3.24 4.18 4.30 0.50 0.50 0.50 Risk-free interest rate (2) 0.90 % 1.31 % 1.13 % 0.17 % 0.06 % 0.08 % Volatility (3) 30 % 41 % 43 % 36 % 37 % 44 % Dividend yield (4) — % — % — % — % — % — % Weighted average estimated fair value at grant date $ 4.78 $ 3.36 $ 3.22 $ 3.51 $ 2.65 $ 2.84

Note 7 - Income Taxes (Tables)

Note 7 - Income Taxes (Tables)	12 Months Ended
	Dec. 31, 2015
Notes Tables
Schedule of Income before Income Tax, Domestic and Foreign [Table Text Block]	Year Ended December 31, 201 5 201 4 201 3 U.S. $ (4,588 ) $ (10,592 ) $ (4,919 ) Foreign 360 199 118 Loss before income taxes $ (4,228 ) $ (10,393 ) $ (4,801 )
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block]	Year Ended December 31, 201 5 201 4 201 3 Current: Federal $ (7 ) $ (7 ) $ (329 ) State 23 19 7 Foreign 218 110 159 Total Current 234 122 (163 ) Deferred: Federal 33 32 33 State — — — Foreign (55 ) 65 76 Total Deferred (22 ) 97 109 Tax provision (benefit) $ 212 $ 219 $ (54 )
Schedule of Deferred Tax Assets and Liabilities [Table Text Block]	December 31, 201 5 201 4 Net operating loss $ 14,231 $ 12,138 Stock-based compensation 2,462 3,884 Other accruals and reserves 4,679 4,735 Credits 4,477 3,808 Foreign 350 295 Accrued warranty 657 417 Depreciation and amortization 1,105 998 Other 5 66 Deferred tax asset before valuation allowance 27,966 26,341 Valuation allowance (27,616 ) (26,046 ) Deferred tax asset after valuation allowance 350 295 Deferred tax liability on goodwill (103 ) (71 ) Net deferred tax asset $ 247 $ 224
Schedule of Deferred Tax Reported in Balance Sheet [Table Text Block]	December 31, 201 5 201 4 Deferred tax asset (current portion) $ — $ 26 Deferred tax asset, net of current portion 350 269 Accrued liabilities (non-current deferred tax liability) (103 ) (71 ) Net deferred tax asset after valuation allowance $ 247 $ 224
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block]	Year Ended December 31, 201 5 201 4 201 3 U.S. federal statutory income tax rate 34.00 % 34.00 % 35.00 % State tax rate, net of federal benefit 1.94 1.62 1.57 Benefit for research and development credit 15.92 7.24 19.91 Income tax refund 0.18 0.08 0.19 Foreign rate differential (1.47 ) (1.04 ) (4.53 ) Changes in unrecognized tax benefits (1.15 ) (0.53 ) 2.60 Meals and entertainment (3.23 ) (1.11 ) (2.10 ) Stock-based compensation (19.19 ) (5.56 ) (34.33 ) Valuation allowance (31.63 ) (36.58 ) (17.82 ) Other (0.38 ) (0.22 ) 0.63 Effective tax rate (5.01 )% (2.10 )% 1.12 %
Schedule of Unrecognized Tax Benefits Roll Forward [Table Text Block]	Year Ended December 31, 201 5 201 4 201 3 Balance at beginning of year $ 597 $ 535 $ 536 Increases related to prior year tax positions — — 36 Increases related to current year tax positions 54 62 116 Decreases related to lapsing of statute of limitations — — (153 ) Balance at end of year $ 651 $ 597 $ 535

Note 8 - Net Loss Per Share (Ta

Note 8 - Net Loss Per Share (Tables)	12 Months Ended
	Dec. 31, 2015
Notes Tables
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share [Table Text Block]	Year Ended December 31, 2015 201 4 201 3 Options to purchase common stock 2,575 3,489 3,830 Restricted stock units 296 213 173 Employee stock purchase plan shares 93 86 72 Performance stock units 24 37 34 Total 2,988 3,825 4,109

Note 10 - Segment Information31

Note 10 - Segment Information and Revenue by Geograpy and Products (Tables)	12 Months Ended
	Dec. 31, 2015
Notes Tables
Schedule of Revenue from External Customers Attributed to Foreign Countries by Geographic Area [Table Text Block]	Year Ended December 31, 201 5 201 4 201 3 Revenue mix by geography: United States $ 48,916 $ 35,494 $ 31,487 Japan 11,504 13,328 14,205 Asia, excluding Japan 15,596 11,023 11,263 Europe 7,728 7,792 7,358 Rest of the world 11,017 10,501 10,281 Consolidated total $ 94,761 $ 78,138 $ 74,594 Revenue mix by product category: Products $ 71,223 $ 53,106 $ 48,374 Hand Piece Refills 2,910 3,714 4,267 Skincare 2,889 3,479 4,264 Total product revenue 77,022 60,299 56,905 Service 17,739 17,839 17,689 Consolidated total $ 94,761 $ 78,138 $ 74,594

Note 11 - Commitments and Con32

Note 11 - Commitments and Contingencies (Tables)	12 Months Ended
	Dec. 31, 2015
Notes Tables
Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block]	Year Ending December 31, Amount 2016 $ 1,882 2017 1,857 2018 154 2019 16 2020 4 Future minimum rental payments $ 3,913
Schedule of Future Minimum Lease Payments for Capital Leases [Table Text Block]	Year Ending December 31, Amount 2016 $ 271 2017 102 2018 113 2019 19 Future minimum lease payments $ 505

Note 13 - Supplementary Finan33

Note 13 - Supplementary Financial Data (Unaudited) (Tables)	12 Months Ended
	Dec. 31, 2015
Notes Tables
Schedule of Quarterly Financial Information [Table Text Block]	Quarter ended: Dec. 31, 201 5 Sept. 30, 201 5 June 30, 201 5 March 31, 201 5 Dec. 31, 201 4 Sept. 30, 201 4 June 30, 201 4 March 31, 201 4 Net revenue $ 30,042 $ 23,085 $ 22,563 $ 19,071 $ 25,499 $ 18,726 $ 17,724 $ 16,189 Cost of revenue 12,145 9,594 9,687 9,052 11,679 7,935 7,848 7,303 Gross profit 17,897 13,491 12,876 10,019 13,820 10,791 9,876 8,886 Operating expenses: Sales and marketing 9,899 8,790 9,066 8,187 9,356 7,805 7,754 7,331 Research and development 2,812 2,748 2,728 2,445 2,649 2,628 2,622 2,644 General and administrative 3,189 2,937 3,014 2,989 3,407 2,897 2,335 2,564 Total operating expenses 15,900 14,475 14,808 13,621 15,412 13,330 12,711 12,539 Income (loss) from operations 1,997 (984 ) (1,932 ) (3,602 ) (1,592 ) (2,539 ) (2,835 ) (3,653 ) Interest and other income, net 105 84 96 8 8 — 138 80 Income (loss) before income taxes 2,102 (900 ) (1,836 ) (3,594 ) (1,584 ) (2,539 ) (2,697 ) (3,573 ) Income tax provision 52 57 53 50 41 97 44 37 Net income (loss) $ 2,050 $ (957 ) $ (1,889 ) $ (3,644 ) $ (1,625 ) $ (2,636 ) $ (2,741 ) $ (3,610 ) Net income (loss) per share—basic $ 0.16 $ (0.07 ) $ (0.13 ) $ (0.25 ) $ (0.11 ) $ (0.18 ) $ (0.19 ) $ (0.26 ) Net income (loss) per share—diluted $ 0.15 $ (0.07 ) $ (0.13 ) $ (0.25 ) $ (0.11 ) $ (0.18 ) $ (0.19 ) $ (0.26 ) Weighted average number of shares used in per share calculations: Basic 12,978 13,827 14,441 14,611 14,425 14,334 14,231 14,021 Diluted 13,591 13,827 14,441 14,611 14,425 14,334 14,231 14,021

Schedule II - Valuation and Q34

Schedule II - Valuation and Qualifying Accounts (Tables)	12 Months Ended
	Dec. 31, 2015
Notes Tables
Summary of Valuation Allowance [Table Text Block]	Balance at Beginning of Year Additions Deductions Balance at End of Year Deferred tax assets valuation allowance Year ended December 31, 2015 $ 26,046 $ 3,327 $ 1,757 $ 27,616 Year ended December 31, 2014 $ 22,762 $ 3,780 $ 496 $ 26,046 Year ended December 31, 2013 $ 21,907 $ 3,437 $ 2,582 $ 22,762
Allowance for Credit Losses on Financing Receivables [Table Text Block]	Balance at Beginning of Year Additions Deductions Balance at End of Year Allowance for doubtful accounts receivable Year ended December 31, 2015 $ — $ 4 $ — $ 4 Year ended December 31, 2014 $ 19 $ 4 $ 23 $ — Year ended December 31, 2013 $ — $ 19 $ — $ 19

Note 1 - Summary of Significa35

Note 1 - Summary of Significant Accounting Policies (Details Textual) - USD ($)	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Sales Revenue, Net [Member] | Geographic Concentration Risk [Member] | UNITED STATES
Concentration Risk, Percentage	52.00%	45.00%	42.00%
Sales Revenue, Net [Member] | Geographic Concentration Risk [Member] | Outside the United States [Member]
Concentration Risk, Percentage	48.00%	55.00%	58.00%
Minimum [Member]
Finite-Lived Intangible Asset, Useful Life	330 days
Maximum [Member]
Finite-Lived Intangible Asset, Useful Life	10 years
End-Customers [Member]
Standard Warranty Period	1 year
Distributors [Member]
Standard Warranty Period	1 year 60 days
Other than Temporary Impairment Losses, Investments, Available-for-sale Securities	$ 0	$ 0	$ 0
Impairment of Long-Lived Assets Held-for-use	$ 0
Long-term Investment Marketable Period	1 year
Average Maturity Period of Interest Rate of Auction Securities	1 year 180 days
Inventories Estimated Useful Lives	2 years
Inventory, Finished Goods, Gross		2,300,000
Depreciation	$ 734,000	562,000	$ 602,000
Impairment of Intangible Assets (Excluding Goodwill)		650,000
Sales Revenue, Services, Net	$ 17,739,000	17,839,000	$ 17,689,000
Advertising Expense	$ 1,200,000	$ 1,600,000	$ 1,600,000
Uncertain Income Tax Position Minimum Rate	50.00%
Disclosure on Geographic Areas Long Lived Assets in Entity S Country of Domicile, Percent	68.00%	71.00%

Note 1 - Useful Lives of Proper

Note 1 - Useful Lives of Property, Plant and Equipment (Details)	12 Months Ended
	Dec. 31, 2015
Leasehold Improvements [Member]
Leasehold improvements	Lesser of useful life or term of lease
Equipment and Furniture [Member]
Office equipment and furniture	3 years
Machinery and Equipment [Member]
Office equipment and furniture	3 years

Note 2 - Investment Securitie37

Note 2 - Investment Securities (Details Textual) - USD ($)	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Fair Value, Inputs, Level 2 [Member]
MaturityOfMoneyMarketFund	3 years
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss	$ 0	$ 0

Note 2 - Cash, Cash Equivalents

Note 2 - Cash, Cash Equivalents and Marketable Securities (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Money Market Funds [Member]
Cash equivalents:
Cash equivalents	$ 1,000	$ 242
Commercial Paper [Member]
Cash equivalents:
Cash equivalents	38	1,800
US Treasury and Government [Member]
Marketable securities:
Marketable securities	7,779	18,361
US Government Agencies Debt Securities [Member]
Marketable securities:
Marketable securities	12,608	19,800
US States and Political Subdivisions Debt Securities [Member]
Marketable securities:
Marketable securities	4,346	3,607
Commercial Paper, Not Included with Cash and Cash Equivalents [Member]
Marketable securities:
Marketable securities	4,040	10,695
Corporate Debt Securities [Member]
Marketable securities:
Marketable securities	8,766	18,880
Cash	9,830	7,761
Amortized Cost	10,868	9,803
Marketable securities	37,539	71,343
Total cash, cash equivalents and marketable securities	$ 48,407	$ 81,146

Note 2 - Unrealized Gains and L

Note 2 - Unrealized Gains and Losses Related to Marketable Investments (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Cash and Cash Equivalents [Member]
Amortized Cost	$ 10,868	$ 9,803
Money market funds	10,868	$ 9,803
Marketable investments
Gross Unrealized Gains
Gross Unrealized Losses
Gross Unrealized Losses
Amortized Cost	10,868	$ 9,803
Money market funds	10,868	9,803
Marketable Investments [Member]
Marketable investments
Amortized Cost	37,578	71,288
Gross Unrealized Gains	7	68
Gross Unrealized Losses	(46)	(13)
Available-for-sale securities	37,539	71,343
Gross Unrealized Losses	46	13
US Treasury and Government [Member]
Marketable investments
Amortized Cost	7,780	18,345
Gross Unrealized Gains	1	17
Gross Unrealized Losses	(2)	(1)
Available-for-sale securities	7,779	18,361
Gross Unrealized Losses	2	1
US Government Agencies Debt Securities [Member]
Marketable investments
Amortized Cost	12,630	19,768
Gross Unrealized Gains	3	33
Gross Unrealized Losses	(25)	(1)
Available-for-sale securities	12,608	19,800
Gross Unrealized Losses	25	1
US States and Political Subdivisions Debt Securities [Member]
Marketable investments
Amortized Cost	4,344	3,607
Gross Unrealized Gains	$ 2	3
Gross Unrealized Losses		(3)
Available-for-sale securities	$ 4,346	3,607
Gross Unrealized Losses		3
Commercial Paper, Not Included with Cash and Cash Equivalents [Member]
Marketable investments
Amortized Cost	$ 4,041	10,693
Gross Unrealized Gains	1	$ 2
Gross Unrealized Losses	(2)
Available-for-sale securities	4,040	$ 10,695
Gross Unrealized Losses	2
Corporate Debt Securities [Member]
Marketable investments
Amortized Cost	$ 8,783	$ 18,875
Gross Unrealized Gains		13
Gross Unrealized Losses	$ (17)	(8)
Available-for-sale securities	8,766	18,880
Gross Unrealized Losses	17	8
Amortized Cost	10,868	9,803
Gross Unrealized Gains	7	68
Gross Unrealized Losses	(46)	(13)
Available-for-sale securities	37,539
Gross Unrealized Losses	46	13
Amortized Cost	48,446	81,091
Fair Market Value	48,407	81,146
Amortized Cost	$ 10,868	$ 9,803

Note 2 - Maturities of Availabl

Note 2 - Maturities of Available-for-Sale Securities (Details) $ in Thousands	Dec. 31, 2015USD ($)
Due in less than one year (fiscal year 2016)	$ 25,558
Due in 1 to 3 years (fiscal year 2017-2018)	11,981
Total marketable securities	$ 37,539

Note 2 - Fair Value of Financia

Note 2 - Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | Money Market Funds [Member]
Cash equivalents:
Money market funds	$ 1,000	$ 242
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | Commercial Paper [Member]
Cash equivalents:
Money market funds
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member]
Short term marketable investments:
Available-for-sale securities
Total Assets Fair Value	$ 1,000	$ 242
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Money Market Funds [Member]
Cash equivalents:
Money market funds
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Commercial Paper [Member]
Cash equivalents:
Money market funds	$ 38	$ 1,800
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member]
Short term marketable investments:
Available-for-sale securities	37,539	71,343
Total Assets Fair Value	$ 37,577	$ 73,143
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Money Market Funds [Member]
Cash equivalents:
Money market funds
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Commercial Paper [Member]
Cash equivalents:
Money market funds
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member]
Short term marketable investments:
Available-for-sale securities
Total Assets Fair Value
Fair Value, Measurements, Recurring [Member] | Money Market Funds [Member]
Cash equivalents:
Money market funds	$ 1,000	$ 242
Fair Value, Measurements, Recurring [Member] | Commercial Paper [Member]
Cash equivalents:
Money market funds	38	1,800
Fair Value, Measurements, Recurring [Member]
Short term marketable investments:
Available-for-sale securities	37,539	71,343
Total Assets Fair Value	38,577	$ 73,385
Available-for-sale securities	$ 37,539

Note 3 - Acquistion (Details Te

Note 3 - Acquistion (Details Textual) - USD ($)	Feb. 02, 2012	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Iridex's Global Aesthetics Business Unit [Member] | Customer Relationships [Member] | Maximum [Member]
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life		5 years
Iridex's Global Aesthetics Business Unit [Member] | Other Intangible Assets [Member] | Minimum [Member]
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life		330 days
Iridex's Global Aesthetics Business Unit [Member] | Other Intangible Assets [Member]
Acquired Finite Lived Intangible Assets Tax Useful Life		5 years
Iridex's Global Aesthetics Business Unit [Member] | Unamortized Intangibles [Member]
Impairment of Intangible Assets (Excluding Goodwill)			$ 650,000
Iridex's Global Aesthetics Business Unit [Member] | Finite-Lived Goodwill [Member]
Acquired Finite Lived Intangible Assets Tax Useful Life		15 years
Iridex's Global Aesthetics Business Unit [Member]
Payments to Acquire Businesses, Gross	$ 5,100,000	$ 5,091,000
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill	4,800,000
Goodwill	$ 1,300,000	1,339,000
Finite-Lived Intangible Assets, Remaining Amortization Period			5 years
Goodwill		$ 1,339,000	$ 1,339,000
Impairment of Intangible Assets (Excluding Goodwill)			$ 650,000

Note 3 - Fair Value of Net Asse

Note 3 - Fair Value of Net Assets Acquired (Details)	12 Months Ended
	Dec. 31, 2015USD ($)
Iridex's Global Aesthetics Business Unit [Member] | Customer Relationships [Member]
Assets (liabilities acquired):
Acquired intangibles	$ 2,510,000
Iridex's Global Aesthetics Business Unit [Member] | Other Intangible Assets [Member]
Assets (liabilities acquired):
Acquired intangibles	780,000
Iridex's Global Aesthetics Business Unit [Member]
Payments to Acquire Businesses, Gross	5,091,000
Assets (liabilities acquired):
Inventory	1,552,000
Goodwill	1,339,000
Deferred service revenue	(780,000)
Accrued warranty liability	(310,000)
Total	5,091,000
Goodwill	$ 1,339,000

Note 4 - Balance Sheet Detail44

Note 4 - Balance Sheet Detail (Details Textual) - USD ($)	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Capital Leased Assets, Gross	$ 862,000	$ 647,000
Capital Leases, Lessee Balance Sheet, Assets by Major Class, Accumulated Depreciation	$ 374,000	253,000
Impairment of Intangible Assets (Excluding Goodwill)		650,000
Amortization of Intangible Assets	$ 452,000	$ 773,000	$ 702,000

Note 4 - Inventories (Details)

Note 4 - Inventories (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Raw materials	$ 7,982	$ 7,185
Finished goods	4,096	3,803
Total	$ 12,078	$ 10,988

Note 4 - Property and Equipment

Note 4 - Property and Equipment (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Leasehold Improvements [Member]
Property, plant and equipment, gross	$ 822	$ 641
Equipment and Furniture [Member]
Property, plant and equipment, gross	2,970	2,964
Machinery and Equipment [Member]
Property, plant and equipment, gross	4,662	4,140
Property, plant and equipment, gross	8,454	7,745
Less: Accumulated depreciation	(6,981)	(6,284)
Property and equipment, net	$ 1,473	$ 1,461

Note 4 - Goodwill and Other Int

Note 4 - Goodwill and Other Intangible Assets (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Patents [Member]
Patent sublicense	$ 1,218	$ 1,218
Patent sublicense	$ 1,218	1,206
Patent sublicense		12
Customer Relationships [Member]
Patent sublicense	$ 2,510	2,510
Patent sublicense	2,367	1,998
Patent sublicense	143	512
Other Intangible Assets [Member]
Patent sublicense	780	780
Patent sublicense	$ 780	$ 780
Patent sublicense
Other Intangible [Member]
Patent sublicense	$ 155	$ 155
Patent sublicense	$ 155	84
Patent sublicense		71
Patent sublicense	$ 4,520	4,068
Patent sublicense	143
Goodwill	1,339	1,339
Goodwill	1,339	1,339
Total	6,002	6,002
Total	$ 1,482	$ 1,934

Note 4 - Estimated Annual Amort

Note 4 - Estimated Annual Amortization Expense (Details) $ in Thousands	Dec. 31, 2015USD ($)
2,016	$ 142
2,017	1
Total	$ 143

Note 4 - Accrued Liabilities (D

Note 4 - Accrued Liabilities (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Accrued payroll and related expenses	$ 7,726	$ 5,533
Accrued sales tax	1,935	1,789
Warranty liability	1,819	1,167
Other accrued liabilities	2,354	2,518
Total	$ 13,834	$ 11,007

Note 5 - Warranty and Service50

Note 5 - Warranty and Service Contracts (Details Textual) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Deferred Revenue Costs Incurred	$ 6.2	$ 6.6	$ 6.9

Note 5 - Summary of Warranties

Note 5 - Summary of Warranties (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Balance at beginning of year	$ 1,167	$ 1,202
Add: Accruals for warranties issued during the year	4,134	2,497
Less: Settlements made during the year	(3,482)	(2,532)
Balance at end of year	$ 1,819	$ 1,167

Note 5 - Deferred Service Contr

Note 5 - Deferred Service Contract Revenue (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Balance at beginning of year	$ 12,949	$ 11,637
Add: Payments received	10,378	13,913
Less: Revenue recognized	(12,858)	(12,601)
Balance at end of year	$ 10,469	$ 12,949

Note 6 - Stockholders' Equity53

Note 6 - Stockholders' Equity, Stock Plans and Stock-based Compensation Expense (Details Textual) - USD ($)	Aug. 05, 2013	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012	Feb. 18, 2015	Feb. 17, 2015	Dec. 30, 2013
Employee Stock Option [Member] | 2004 Equity Incentive Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period		4 years
Option Exercisable in Hundredths		25.00%
Share Price		$ 12.79	$ 10.68	$ 10.18	$ 9
Employee Stock Option [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period				3 years	3 years
Option Granted Contractual Term				7 years	7 years
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized		$ 4,200,000
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition		1 year 284 days
Restricted Stock Units (RSUs) [Member] | 2004 Equity Incentive Plan [Member]
Share Based Compensation by Share Based Payment Fully Vested Stock Awards Grant Date Fair Value				$ 60,000
Share-based Compensation Arrangement by Share-based Payment Award, Shares Issued in Period		107,417	211,250	148,004
Restricted Stock Units (RSUs) [Member]
Share Price		$ 12.79	$ 10.68	$ 10.18	$ 9
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Fair Value		$ 2,600,000	$ 699,000	$ 917,000
Performance Shares [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period		255 days	1 year	1 year
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Granted		74,667	105,000	33,751
Stock Purchase Plan [Member]
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized		$ 82,000
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition		120 days
1998 Stock Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized		4,650,000
2004 Equity Incentive Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized		1,750,000
Fungible Share Provision		2.12
Share Based Compensation by Share Based Payment Fully Vested Stock Awards Grant Date Fair Value								$ 60,000
Stock Issued During Period, Shares, Restricted Stock Award, Net of Forfeitures		21,020	38,688	40,674
2004 Employee Stock Purchase Plan [Member]
ESPP Offering and Purchase Period		180 days
Share-based Compensation Arrangement by Share-based Payment Award, Number of Additional Shares Authorized		600,000
Share-based Compensation Arrangement by Share-based Payment Award, Purchase Price of Common Stock, Percent		85.00%
Stock Issued During Period, Shares, Employee Stock Ownership Plan		55,872	52,579	51,338
Common Stock, Capital Shares Reserved for Future Issuance		849,985
Modified Stock Buyback Program [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Exercisable Options, Weighted Average Exercise Price				$ 9.43
Increase in Authorized Amount Under Stock Repurchase Plan	$ 10,000,000
Stock Repurchase Program, Authorized Amount	$ 20,000,000
Stock Repurchased During Period, Shares		2,818,038		1,060,447
Treasury Stock, Value, Acquired, Cost Method				$ 10,000,000
Stock Repurchase Program, Remaining Authorized Repurchase Amount			$ 10,000,000			$ 40,000,000	$ 10,000,000
Shares Repurchased Average Cost Per Share		$ 14.19
Stock Repurchased During Period, Value		$ 40,000,000
Minimum [Member]
Share Based Compensation, Forfeiture Rate		0.00%
Maximum [Member]
Share Based Compensation, Forfeiture Rate		16.00%
Employee Service Share-based Compensation, Tax Benefit Realized from Exercise of Stock Options		$ 0	0	0
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Intrinsic Value		5,100,000	$ 824,000	2,100,000
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Number of Exercisable Options			2,330,762
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Exercisable Options, Weighted Average Exercise Price			$ 9.62
Proceeds from Issuance of Shares under Incentive and Share-based Compensation Plans, Including Stock Options		$ 10,061,000	$ 3,602,000	$ 5,189,000
Shares Paid for Tax Withholding for Share Based Compensation		68,101	15,769	24,249
Adjustments Related to Tax Withholding for Share-based Compensation		$ 1,000,000	$ 156,000	$ 222,000

Note 6 - Equity Incentive Plan

Note 6 - Equity Incentive Plan (Details) - USD ($)	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Balances as of December 31, 2012 (in shares)	1,263,425	129,760	709,483	1,644,356
Balances as of December 31, 2012 (in shares)	2,148,797	3,462,567	3,792,162	3,788,239
Balances as of December 31, 2012 (in dollars per share)	$ 9.31	$ 9.39	$ 9.42	$ 9.44
Balances as of December 31, 2012	3 years 146 days	3 years 146 days	4 years 73 days	4 years 109 days
Balances as of December 31, 2012	$ 7.90	$ 5.70	$ 5.10	$ 2.60
Options granted (in shares)	(129,000)	(486,300)	(1,007,166)
Options granted (in shares)	129,000	486,300	1,007,166
Options granted (in dollars per share)	$ 13.26	$ 9.78	$ 8.97
Options exercised (in shares)	(1,141,904)	(396,970)	(612,210)
Options exercised (in dollars per share)	$ 9.20	$ 8.33	$ 8.16
Options cancelled (expired or forfeited) (in shares)	300,866	418,925	391,033
Options cancelled (expired or forfeited) (in shares)	(300,866)	(418,925)	(391,033)
Options cancelled (expired or forfeited) (in dollars per share)	$ 12.37	$ 11.15	$ 10.37
Stock awards granted (in shares)	(430,580)	(764,394)	(399,997)
Stock awards cancelled (expired or forfeited) (in shares)	92,379	52,046	81,257
Additional shares reserved(2) (in shares)	1,300,000	200,000
Exercisable as of December 31, 2015 (in shares)	1,561,916
Exercisable as of December 31, 2015 (in dollars per share)	$ 9.05
Exercisable as of December 31, 2015	2 years 292 days
Exercisable as of December 31, 2015	$ 6.10
Expected to vest, net of estimated forfeitures, as of December 31, 2015 (in shares)	505,631
Expected to vest, net of estimated forfeitures, as of December 31, 2015 (in dollars per share)	$ 9.92
Expected to vest, net of estimated forfeitures, as of December 31, 2015	4 years 332 days
Expected to vest, net of estimated forfeitures, as of December 31, 2015	$ 1.50

Note 6 - Options Outstanding an

Note 6 - Options Outstanding and Exercisable Price Ranges (Details)	12 Months Ended
	Dec. 31, 2015$ / sharesshares
Exercise Price Range 1 [Member]
Range of exercise price, lower limit (in dollars per share)	$ 6.88
Range of exercise price, upper limit (in dollars per share)
Options Outstanding Number Outstanding (in shares) (in shares) | shares	299,090
Options Outstanding Weighted-Average Remaining Contractual Life	3 years 186 days
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Number of Exercisable Options | shares	259,407
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Exercisable Options, Weighted Average Exercise Price	$ 6.88
Exercise Price Range 2 [Member]
Range of exercise price, lower limit (in dollars per share)
Range of exercise price, upper limit (in dollars per share)	$ 8.66
Options Outstanding Number Outstanding (in shares) (in shares) | shares	239,152
Options Outstanding Weighted-Average Remaining Contractual Life	310 days
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Number of Exercisable Options | shares	236,110
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Exercisable Options, Weighted Average Exercise Price	$ 8.51
Exercise Price Range 3 [Member]
Range of exercise price, lower limit (in dollars per share)	$ 8.72
Range of exercise price, upper limit (in dollars per share)
Options Outstanding Number Outstanding (in shares) (in shares) | shares	345,057
Options Outstanding Weighted-Average Remaining Contractual Life	2 years 127 days
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Number of Exercisable Options | shares	345,057
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Exercisable Options, Weighted Average Exercise Price	$ 8.72
Exercise Price Range 4 [Member]
Range of exercise price, lower limit (in dollars per share)	$ 8.80
Range of exercise price, upper limit (in dollars per share)
Options Outstanding Number Outstanding (in shares) (in shares) | shares	325,116
Options Outstanding Weighted-Average Remaining Contractual Life	4 years 109 days
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Number of Exercisable Options | shares	158,434
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Exercisable Options, Weighted Average Exercise Price	$ 8.80
Exercise Price Range 5 [Member]
Range of exercise price, lower limit (in dollars per share)
Range of exercise price, upper limit (in dollars per share)	$ 9.63
Options Outstanding Number Outstanding (in shares) (in shares) | shares	225,345
Options Outstanding Weighted-Average Remaining Contractual Life	4 years 222 days
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Number of Exercisable Options | shares	157,506
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Exercisable Options, Weighted Average Exercise Price	$ 9.11
Exercise Price Range 6 [Member]
Range of exercise price, lower limit (in dollars per share)
Range of exercise price, upper limit (in dollars per share)	$ 10.03
Options Outstanding Number Outstanding (in shares) (in shares) | shares	251,399
Options Outstanding Weighted-Average Remaining Contractual Life	5 years 204 days
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Number of Exercisable Options | shares	85,671
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Exercisable Options, Weighted Average Exercise Price	$ 9.82
Exercise Price Range 7 [Member]
Range of exercise price, lower limit (in dollars per share)	$ 10.24
Range of exercise price, upper limit (in dollars per share)
Options Outstanding Number Outstanding (in shares) (in shares) | shares	250,034
Options Outstanding Weighted-Average Remaining Contractual Life	1 year 124 days
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Number of Exercisable Options | shares	250,034
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Exercisable Options, Weighted Average Exercise Price	$ 10.24
Exercise Price Range 8 [Member]
Range of exercise price, lower limit (in dollars per share)
Range of exercise price, upper limit (in dollars per share)	$ 14.04
Options Outstanding Number Outstanding (in shares) (in shares) | shares	175,604
Options Outstanding Weighted-Average Remaining Contractual Life	5 years 178 days
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Number of Exercisable Options | shares	39,697
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Exercisable Options, Weighted Average Exercise Price	$ 11.18
Exercise Price Range 9 [Member]
Range of exercise price, lower limit (in dollars per share)	$ 15.32
Range of exercise price, upper limit (in dollars per share)
Options Outstanding Number Outstanding (in shares) (in shares) | shares	8,000
Options Outstanding Weighted-Average Remaining Contractual Life	6 years 204 days
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Number of Exercisable Options | shares
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Exercisable Options, Weighted Average Exercise Price
Exercise Price Range 10 [Member]
Range of exercise price, lower limit (in dollars per share)	$ 21.84
Range of exercise price, upper limit (in dollars per share)
Options Outstanding Number Outstanding (in shares) (in shares) | shares	30,000
Options Outstanding Weighted-Average Remaining Contractual Life	171 days
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Number of Exercisable Options | shares	30,000
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Exercisable Options, Weighted Average Exercise Price	$ 21.84
Exercise Price Range 11 [Member]
Range of exercise price, lower limit (in dollars per share)
Range of exercise price, upper limit (in dollars per share)	$ 21.84
Options Outstanding Number Outstanding (in shares) (in shares) | shares	2,148,797
Options Outstanding Weighted-Average Remaining Contractual Life	3 years 138 days
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Number of Exercisable Options | shares	1,561,916
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Exercisable Options, Weighted Average Exercise Price	$ 9.05

Note 6 - Restricted Stock Units

Note 6 - Restricted Stock Units Activity (Details) - Restricted Stock Units (RSUs) [Member] - USD ($) shares in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2015		Dec. 31, 2014		Dec. 31, 2013		Dec. 31, 2012
Number of shares outstanding, balance (in shares)	371,630		434,321		179,465		148,709
Shares outstanding, weighted-average grant-date fair value (in dollars per share)	$ 12.39		$ 9.31		$ 8.34		$ 6.99
Shares outstanding, aggregate intrinsic value	$ 4,753		$ 4,639		$ 1,827		$ 1,338
Number of shares granted (in shares)	203,104		360,563		188,678
Shares granted, weight-average grant-date fair value (in dollars per share)	$ 14.81		$ 9.72		$ 8.94
Shares vested, number of shares (in shares)	(222,220)		(81,157)		(119,505)
Shares vested, weighted-average grant-date fair value (in dollars per share)	$ 11.79		$ 8.62		$ 7.68
Shares vested, aggregate fair value	$ 3,285	[1]	$ 777	[2]	$ 1,091	[3]
Shares forfeited, number of shares (in shares)	(43,575)		(24,550)		(38,417)
Shares forfeited, weighted-average grant-date fair value (in dollars per share)	$ 9.09		$ 8.14		$ 8.11
Shares outstanding, aggregate intrinsic value	$ 4,753		$ 4,639		$ 1,827		$ 1,338
[1]	On the grant date, the fair value for these vested awards was $2.6 million
[2]	On the grant date, the fair value for these vested awards was $699,000
[3]	On the grant date, the fair value for these vested awards was $917,000

Note 6 - Stock-based Compensati

Note 6 - Stock-based Compensation Expense (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Employee Stock Option [Member]
Allocated share-based compensation expense	$ 1,438	$ 1,811	$ 2,201
Restricted Stock Units (RSUs) [Member]
Allocated share-based compensation expense	1,297	875	631
Performance Shares [Member]
Allocated share-based compensation expense	1,167	455	162
ESPP [Member]
Allocated share-based compensation expense	182	158	116
Allocated share-based compensation expense	$ 4,084	$ 3,299	$ 3,110

Note 6 - Stock-based Compensa58

Note 6 - Stock-based Compensation Expense by Department (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Cost of Sales [Member]
Allocated share-based compensation expense	$ 447	$ 560	$ 638
Selling and Marketing Expense [Member]
Allocated share-based compensation expense	1,054	641	744
Research and Development Expense [Member]
Allocated share-based compensation expense	662	581	397
General and Administrative Expense [Member]
Allocated share-based compensation expense	1,921	1,517	1,331
Allocated share-based compensation expense	$ 4,084	$ 3,299	$ 3,110

Note 6 - Valuation Assumptions

Note 6 - Valuation Assumptions and Fair Value of Stock Option and ESPP Grants (Details) - $ / shares	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Employee Stock Option [Member]
Expected term (in years)(1)	3 years 87 days	4 years 65 days	4 years 109 days
Risk-free interest rate(2)	0.90%	1.31%	1.13%
Volatility3	30.00%	41.00%	43.00%
Dividend yield(4)
Weighted average estimated fair value at grant date (in dollars per share)	$ 4.78	$ 3.36	$ 3.22
Stock Purchase Plan [Member]
Expected term (in years)(1)	182 days	182 days	182 days
Risk-free interest rate(2)	0.17%	0.06%	0.08%
Volatility3	36.00%	37.00%	44.00%
Dividend yield(4)
Weighted average estimated fair value at grant date (in dollars per share)	$ 3.51	$ 2.65	$ 2.84

Note 7 - Income Taxes (Details

Note 7 - Income Taxes (Details Textual) - USD ($)	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Domestic Tax Authority [Member] | Earliest Tax Year [Member] | Research Tax Credit Carryforward [Member]
Tax Credit Carryforward Expiration Year	2,024
Domestic Tax Authority [Member] | Earliest Tax Year [Member]
Operating Loss Carryforwards Expiration Date 1	2,029
Domestic Tax Authority [Member] | Latest Tax Year [Member] | Research Tax Credit Carryforward [Member]
Tax Credit Carryforward Expiration Year	2,035
Domestic Tax Authority [Member] | Latest Tax Year [Member]
Operating Loss Carryforwards Expiration Date 1	2,035
Domestic Tax Authority [Member]
Operating Loss Carryforwards	$ 41,800,000
Deferred Tax Assets, Tax Credit Carryforwards, Research	$ 4,700,000
State and Local Jurisdiction [Member] | Earliest Tax Year [Member]
Operating Loss Carryforwards Expiration Date 1	2,029
State and Local Jurisdiction [Member] | Latest Tax Year [Member]
Operating Loss Carryforwards Expiration Date 1	2,035
State and Local Jurisdiction [Member]
Operating Loss Carryforwards	$ 11,200,000
Deferred Tax Assets, Tax Credit Carryforwards, Research	$ 5,700,000
Tax Credit Carryforward Expiration Year	2,020
Research and Development Tax Credits Expiring in 2020	$ 284,000
Unrecognized Tax Benefits that Would Impact Effective Tax Rate	33,000	$ 33,000
Effective Income Tax Rate Reconciliation, Change in Deferred Tax Assets Valuation Allowance, Amount	1,600,000	3,300,000	$ 900,000
Tax Credit Recorded to Additional Paid in Capital	5,200,000
Undistributed Earnings of Foreign Subsidiaries	2,800,000	2,600,000
Unrecognized Tax Benefits, Interest on Income Taxes Accrued	$ 45,000	$ 41,000

Note 7 - Loss Before Provision

Note 7 - Loss Before Provision for Income Taxes (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
U.S.	$ (4,588)	$ (10,592)	$ (4,919)
Foreign	360	199	118
Loss before income taxes	$ (4,228)	$ (10,393)	$ (4,801)

Note 7 - Income Tax Provision (

Note 7 - Income Tax Provision (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Current:
Federal	$ (7)	$ (7)	$ (329)
State	23	19	7
Foreign	218	110	159
Total Current	234	122	(163)
Deferred:
Federal	$ 33	$ 32	$ 33
State
Foreign	$ (55)	$ 65	$ 76
Total Deferred	(22)	97	109
Tax provision (benefit)	$ 212	$ 219	$ (54)

Note 7 - Deferred Tax Assets (D

Note 7 - Deferred Tax Assets (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Net operating loss	$ 14,231	$ 12,138
Stock-based compensation	2,462	3,884
Other accruals and reserves	4,679	4,735
Credits	4,477	3,808
Foreign	350	295
Accrued warranty	657	417
Depreciation and amortization	1,105	998
Other	5	66
Deferred tax asset before valuation allowance	27,966	26,341
Valuation allowance	(27,616)	(26,046)
Deferred tax asset after valuation allowance	350	295
Deferred tax liability on goodwill	(103)	(71)
Net deferred tax asset	$ 247	$ 224

Note 7 - Deferred Tax Asset Bal

Note 7 - Deferred Tax Asset Balance (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Deferred tax asset (current portion)		$ 26
Deferred tax asset, net of current portion	$ 350	269
Accrued liabilities (non-current deferred tax liability)	(103)	(71)
Net deferred tax asset after valuation allowance	$ 247	$ 224

Note 7 - Reconciliation of Effe

Note 7 - Reconciliation of Effective Tax Rate (Details)	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
U.S. federal statutory income tax rate	34.00%	34.00%	35.00%
State tax rate, net of federal benefit	1.94%	1.62%	1.57%
Benefit for research and development credit	15.92%	7.24%	19.91%
Income tax refund	0.18%	0.08%	0.19%
Foreign rate differential	(1.47%)	(1.04%)	(4.53%)
Changes in unrecognized tax benefits	(1.15%)	(0.53%)	2.60%
Meals and entertainment	(3.23%)	(1.11%)	(2.10%)
Stock-based compensation	(19.19%)	(5.56%)	(34.33%)
Valuation allowance	(31.63%)	(36.58%)	(17.82%)
Other	(0.38%)	(0.22%)	0.63%
Effective tax rate	(5.01%)	(2.10%)	1.12%

Note 7 - Unrecognized Tax Benef

Note 7 - Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Balance at beginning of year	$ 597	$ 535	$ 536
Increases related to prior year tax positions			36
Increases related to current year tax positions	$ 54	$ 62	116
Decreases related to lapsing of statute of limitations			(153)
Balance at end of year	$ 651	$ 597	$ 535

Note 8 - Antidilutive Securitie

Note 8 - Antidilutive Securities Excluded from Computation of Earnings Per Share (Details) - shares shares in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Employee Stock Option [Member]
Antidilutive Securities (in shares)	2,575	3,489	3,830
Restricted Stock Units (RSUs) [Member]
Antidilutive Securities (in shares)	296	213	173
ESPP [Member]
Antidilutive Securities (in shares)	93	86	72
Performance Shares [Member]
Antidilutive Securities (in shares)	24	37	34
Antidilutive Securities (in shares)	2,988	3,825	4,109

Note 9 - Defined Contribution68

Note 9 - Defined Contribution Plan (Details Textual) - USD ($)	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Maximum [Member]
Defined Contribution Plan Maximum Percentage of Employee Voluntary Contribution	100.00%
Defined Contribution Plan, Employer Discretionary Contribution Amount	$ 244,000	$ 211,000	$ 184,000

Note 10 - Segment Information69

Note 10 - Segment Information and Revenue by Geograpy and Products (Details Textual)	12 Months Ended
	Dec. 31, 2015
Number of Operating Segments	1

Note 10 - Revenue by Geographic

Note 10 - Revenue by Geographic Region (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
UNITED STATES
Revenue mix by geography:
Revenue mix	$ 48,916	$ 35,494	$ 31,487
JAPAN
Revenue mix by geography:
Revenue mix	11,504	13,328	14,205
Asia, Excluding Japan [Member]
Revenue mix by geography:
Revenue mix	15,596	11,023	11,263
Europe [Member]
Revenue mix by geography:
Revenue mix	7,728	7,792	7,358
Rest of World [Member]
Revenue mix by geography:
Revenue mix	11,017	10,501	10,281
Product [Member]
Revenue mix by geography:
Revenue mix	71,223	53,106	48,374
Hand Piece Refills [Member]
Revenue mix by geography:
Revenue mix	2,910	3,714	4,267
Skincare [Member]
Revenue mix by geography:
Revenue mix	2,889	3,479	4,264
Total Product Revenue [Member]
Revenue mix by geography:
Revenue mix	77,022	60,299	56,905
Service [Member]
Revenue mix by geography:
Revenue mix	17,739	17,839	17,689
Revenue mix	$ 94,761	$ 78,138	$ 74,594

Note 11 - Commitments and Con71

Note 11 - Commitments and Contingencies (Details Textual) - USD ($)	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Operating Leases, Rent Expense	$ 1,500,000	$ 1,500,000	$ 1,600,000
Estimated Litigation Liability	$ 110,000	$ 74,000

Note 11 - Minimum Lease and Oth

Note 11 - Minimum Lease and Other Leased Assets under Long-term Non-cancellable Operating Leases (Details) $ in Thousands	Dec. 31, 2015USD ($)
2,016	$ 1,882
2,017	1,857
2,018	154
2,019	16
2,020	4
Future minimum rental payments	$ 3,913

Note 11 - Minimum Lease Payment

Note 11 - Minimum Lease Payments for Leased Vehicles under Long-term Non-cancellable Capital Leases (Details) $ in Thousands	Dec. 31, 2015USD ($)
2,016	$ 271
2,017	102
2,018	113
2,019	19
Future minimum lease payments	$ 505

Note 12 - Subsequent Events (De

Note 12 - Subsequent Events (Details Textual) - Subsequent Event [Member] - USD ($) $ in Millions	Feb. 11, 2016	Feb. 08, 2016
Kendall Jenner and Kendall Jenner Inc. Lawsuit [Member]
Loss Contingency, Damages Sought, Value	$ 10
Increase in Authorized Amount Under Stock Repurchase Plan		$ 10

Note 13 - Supplementary Finan75

Note 13 - Supplementary Financial Data (Details) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2014	Sep. 30, 2014	Jun. 30, 2014	Mar. 31, 2014
Net revenue	$ 30,042	$ 23,085	$ 22,563	$ 19,071	$ 25,499	$ 18,726	$ 17,724	$ 16,189
Cost of revenue	12,145	9,594	9,687	9,052	11,679	7,935	7,848	7,303
Gross profit	17,897	13,491	12,876	10,019	13,820	10,791	9,876	8,886
Sales and marketing	9,899	8,790	9,066	8,187	9,356	7,805	7,754	7,331
Research and development	2,812	2,748	2,728	2,445	2,649	2,628	2,622	2,644
General and administrative	3,189	2,937	3,014	2,989	3,407	2,897	2,335	2,564
Total operating expenses	15,900	14,475	14,808	13,621	15,412	13,330	12,711	12,539
Income (loss) from operations	1,997	(984)	(1,932)	(3,602)	(1,592)	$ (2,539)	(2,835)	(3,653)
Interest and other income, net	105	84	96	8	8		138	80
Income (loss) before income taxes	2,102	(900)	(1,836)	(3,594)	(1,584)	$ (2,539)	(2,697)	(3,573)
Income tax provision	52	57	53	50	41	97	44	37
Net income (loss)	$ 2,050	$ (957)	$ (1,889)	$ (3,644)	$ (1,625)	$ (2,636)	$ (2,741)	$ (3,610)
Net income (loss) per share—basic (in dollars per share)	$ 0.16	$ (0.07)	$ (0.13)	$ (0.25)	$ (0.11)	$ (0.18)	$ (0.19)	$ (0.26)
Net income (loss) per share—diluted (in dollars per share)	$ 0.15	$ (0.07)	$ (0.13)	$ (0.25)	$ (0.11)	$ (0.18)	$ (0.19)	$ (0.26)
Weighted average number of shares used in per share calculations:
Basic (in shares)	12,978	13,827	14,441	14,611	14,425	14,334	14,231	14,021
Diluted (in shares)	13,591	13,827	14,441	14,611	14,425	14,334	14,231	14,021

Schedule II - Summary of the De

Schedule II - Summary of the Deferred Tax Assets Valuation Allowance (Details) - Valuation Allowance of Deferred Tax Assets [Member] - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Deferred tax assets valuation allowance
Year ended December 31, 2015	$ 26,046	$ 22,762	$ 21,907
Year ended December 31, 2015	3,327	3,780	3,437
Year ended December 31, 2015	1,757	496	2,582
Year ended December 31, 2015	$ 27,616	$ 26,046	$ 22,762

Schedule II - Summary of the Al

Schedule II - Summary of the Allowance for Doubtful Account Receivable (Details) - Allowance for Doubtful Accounts, Current [Member] - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Allowance for doubtful accounts receivable
Year ended December 31, 2015		$ 19
Year ended December 31, 2015	$ 4	4	$ 19
Year ended December 31, 2015		$ 23
Year ended December 31, 2015	$ 4		$ 19