Glaukos (GKOS) 10-K 15 Mar 17 2016 FY Annual report Financial data

Document and Entity Information

Document and Entity Information - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2016	Mar. 13, 2017	Jun. 30, 2016
Document and Entity Information
Entity Registrant Name	GLAUKOS Corp
Entity Central Index Key	1,192,448
Document Type	10-K
Document Period End Date	Dec. 31, 2016
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	Yes
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding		34,232,881
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	FY
Entity Public Float			$ 679

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Current assets:
Cash and cash equivalents	$ 6,494	$ 21,572
Short-term investments	89,268	69,552
Accounts receivable, net	14,305	7,549
Inventory	6,844	4,097
Prepaid expenses and other current assets	3,032	1,290
Restricted cash	80	80
Total current assets	120,023	104,140
Property and equipment, net	7,593	2,154
Intangible asset, net	6,567	10,218
Deposits and other assets	188	149
Total assets	134,371	116,661
Current liabilities:
Accounts payable	2,967	3,626
Accrued liabilities	13,911	7,793
Long-term debt, current portion		8,931
Deferred rent	60	12
Total current liabilities	16,938	20,362
Long-term debt, less current portion		765
Stock warrant liability		105
Other liabilities	159	238
Total liabilities	17,097	21,470
Commitments and contingencies (see Note 10)
Stockholders' equity:
Preferred stock, $0.001 par value; 5,000 shares and no shares authorized at December 31, 2016 and 2015, respectively; no shares issued and outstanding at December 31, 2016 and 2015
Common stock, $0.001 par value; 150,000 shares authorized at December 31, 2016 and 2015; 33,971 and 32,209 shares issued and 33,943 and 32,181 shares outstanding at December 31, 2016 and 2015, respectively	34	32
Additional paid-in capital	308,815	291,853
Accumulated other comprehensive income	648	51
Accumulated deficit	(192,091)	(196,613)
Less treasury stock (28 shares as of December 31, 2016 and 2015)	(132)	(132)
Total stockholders' equity	117,274	95,191
Total liabilities and stockholders' equity	$ 134,371	$ 116,661

CONSOLIDATED BALANCE SHEETS (PA

CONSOLIDATED BALANCE SHEETS (PARENTHETICAL) - $ / shares shares in Thousands	Dec. 31, 2016	Dec. 31, 2015
CONSOLIDATED BALANCE SHEETS
Preferred stock, par value (in dollars per share)	$ 0.001	$ 0.001
Preferred stock, shares authorized	5,000	0
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, shares authorized	150,000	150,000
Common stock, shares issued	33,971	32,209
Common stock, shares outstanding	33,943	32,181
Treasury stock, shares	28	28

CONSOLIDATED STATEMENTS OF OPER

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
CONSOLIDATED STATEMENTS OF OPERATIONS
Net sales	$ 114,397	$ 71,700	$ 45,587
Cost of sales	16,177	12,988	11,418
Gross profit	98,220	58,712	34,169
Operating expenses:
Selling, general and administrative	64,756	43,961	28,135
Research and development	29,223	25,047	19,205
Total operating expenses	93,979	69,008	47,340
Income (loss) from operations	4,241	(10,296)	(13,171)
Other income (expense), net
Interest and other income	889	82	3
Loss on deconsolidation of DOSE		(25,685)
Loss on extinguishment of debt		(195)
Interest and other expense, net	(608)	(1,062)	(876)
Change in fair value of stock warrant liability	43	(1,132)	5
Total other income (expense), net	324	(27,992)	(868)
Income (loss) before taxes	4,565	(38,288)	(14,039)
Provision for income taxes	43	33	18
Net income (loss)	4,522	(38,321)	(14,057)
Net loss attributable to noncontrolling interest		(1,080)	(1,931)
Net income (loss) attributable to Glaukos Corporation stockholders	$ 4,522	$ (37,241)	$ (12,126)
Basic net income (loss) per share, attributable to Glaukos Corporation stockholders	$ 0.14	$ (2.13)	$ (5.29)
Diluted net income (loss) per share, attributable to Glaukos Corporation stockholders	$ 0.12	$ (2.13)	$ (5.29)
Weighted average shares used to compute basic net income (loss) per share attributable to Glaukos Corporation stockholders	32,928	17,474	2,294
Weighted average shares used to compute diluted net income (loss) per share attributable to Glaukos Corporation stockholders	36,459	17,474	2,294

CONSOLIDATED STATEMENTS OF COMP

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
Net income (loss)	$ 4,522	$ (38,321)	$ (14,057)
Other comprehensive income:
Foreign currency translation adjustments	542	155	42
Unrealized gain (loss) on short-term investments, net of tax	55	(148)
Other comprehensive income	597	7	42
Total comprehensive income (loss)	5,119	(38,314)	(14,015)
Comprehensive loss attributable to noncontrolling interest		(1,080)	(1,931)
Comprehensive income (loss) attributable to Glaukos Corporation	$ 5,119	$ (37,234)	$ (12,084)

CONSOLIDATED STATEMENTS OF CONV

CONSOLIDATED STATEMENTS OF CONVERTIBLE PREFERRED STOCK AND STOCKHOLDERS' EQUITY (DEFICIT) - USD ($) shares in Thousands, $ in Thousands	Common Stock	Additional Paid-in-Capital	Accumulated Other Comprehensive Income	Accumulated Deficit	Treasury Stock	Noncontrolling Interest	Total
Balance at Dec. 31, 2013	$ 5	$ 6,073	$ 2	$ (147,246)	$ (132)	$ (7,744)	$ (149,042)
Balance (in shares) at Dec. 31, 2013	2,122				(28)
Stockholders' Deficit
Common stock issued under stock plans	$ 1	552				70	623
Common stock issued under stock plans (in shares)	348
Share-based compensation		1,530					1,530
Other comprehensive income			42				42
Net income (loss)				(12,126)		(1,931)	(14,057)
Balance at Dec. 31, 2014	$ 6	8,155	44	(159,372)	$ (132)	(9,605)	(160,904)
Balance (in shares) at Dec. 31, 2014	2,470				(28)
Stockholders' Deficit
Conversion of preferred stock into common stock	$ 17	159,060					159,077
Conversion of preferred stock into common stock (in shares)	21,736
Issuance of common stock in initial public offering	$ 7	113,582					113,589
Issuance of common stock in initial public offering (in shares)	6,900
Common stock issued under stock plans	$ 2	2,979					2,981
Common stock issued under stock plans (in shares)	1,097
Exercise of common stock warrant		188					188
Exercise of common stock warrant (in shares)	6
Share-based compensation		7,889					7,889
Other comprehensive income			7				7
Deconsolidation of DOSE						10,685	10,685
Net income (loss)				(37,241)		$ (1,080)	(38,321)
Balance at Dec. 31, 2015	$ 32	291,853	51	(196,613)	$ (132)		$ 95,191
Balance (in shares) at Dec. 31, 2015	32,209				(28)		32,181
Stockholders' Deficit
Common stock issued under stock plans	$ 2	8,064					$ 8,066
Common stock issued under stock plans (in shares)	1,756
Exercise of common stock warrant		112					112
Exercise of common stock warrant (in shares)	6
Share-based compensation		8,786					8,786
Other comprehensive income			597				597
Net income (loss)				4,522			4,522
Balance at Dec. 31, 2016	$ 34	$ 308,815	$ 648	$ (192,091)	$ (132)		$ 117,274
Balance (in shares) at Dec. 31, 2016	33,971				(28)		33,943

CONSOLIDATED STATEMENTS OF CON7

CONSOLIDATED STATEMENTS OF CONVERTIBLE PREFERRED STOCK AND STOCKHOLDERS' EQUITY (DEFICIT) - TEMPORARY EQUITY - USD ($) shares in Thousands, $ in Thousands	Convertible Preferred StockSeries C convertible preferred stock	Convertible Preferred StockSeries D convertible preferred stock	Convertible Preferred Stock	Series C convertible preferred stock	Series D convertible preferred stock	Total
Balance at Dec. 31, 2013			$ 156,210
Balance (in shares) at Dec. 31, 2013			21,508
Convertible Preferred Stock
Issuance of convertible preferred stock in connection with exercises of preferred stock warrants	$ 836	$ 333
Issuance of convertible preferred stock in connection with exercises of preferred stock warrants (in shares)	105	29
Balance at Dec. 31, 2014			$ 157,379	$ 40,836	$ 41,496	$ 157,379
Balance (in shares) at Dec. 31, 2014			21,642	5,819	5,410
Convertible Preferred Stock
Issuance of convertible preferred stock in connection with exercises of preferred stock warrants		$ 1,698
Issuance of convertible preferred stock in connection with exercises of preferred stock warrants (in shares)		94
Conversion of preferred stock into common stock			$ (159,077)
Conversion of preferred stock into common stock (in shares)			(21,736)
Balance at Dec. 31, 2015
Balance (in shares) at Dec. 31, 2015

CONSOLIDATED STATEMENTS OF CON8

CONSOLIDATED STATEMENTS OF CONVERTIBLE PREFERRED STOCK AND STOCKHOLDERS' EQUITY (DEFICIT) - TEMPORARY EQUITY (PARENTHETICAL) - $ / shares	Dec. 31, 2015	Dec. 31, 2014
Series C convertible preferred stock
Convertible Preferred Stock
Share price (in dollars per share)		$ 8
Series D convertible preferred stock
Convertible Preferred Stock
Share price (in dollars per share)	$ 18	$ 11.38

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Operating Activities
Net income (loss)	$ 4,522	$ (38,321)	$ (14,057)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Depreciation and amortization	4,722	4,267	4,231
Loss on disposal of fixed assets	40
Stock-based compensation	8,786	7,889	1,530
Loss on deconsolidation of DOSE		25,685
Loss on extinguishment of debt		186
Change in fair value of stock warrant liability	(43)	1,132	(5)
Unrealized foreign currency losses	368	192
Amortization of premium on short-term investments	210	51
Amortization of debt discount and deferred financing costs		15
Deferred rent	(31)	91	(33)
Change in operating assets and liabilities:
Accounts receivable, net	(6,791)	(2,163)	(2,514)
Inventory	(2,935)	(1,848)	(413)
Prepaid expenses and other current assets	(1,762)	(755)	(108)
Accounts payable and accrued liabilities	5,096	1,518	4,226
Other assets	127	(127)	36
Net cash provided by (used in) operating activities	12,309	(2,188)	(7,107)
Investing activities
Purchases of property and equipment	(6,278)	(877)	(868)
Purchase of iDOSE product line and related assets from DOSE Medical		(15,000)
Purchases of short-term investments	(75,192)	(69,751)
Proceeds from sale and maturities of short-term investments	55,354
Net cash used in investing activities	(26,116)	(85,628)	(868)
Financing activities
Proceeds from public offering, net of issuance costs		113,589
Proceeds from senior secured term and draw-to term loans		6,852
Payments of senior secured term and draw-to term loans		(7,000)
Proceeds from line of credit		1,750	2,850
Payments of line of credit		(3,600)	(1,000)
Payments of subordinated notes	(9,696)	(7,804)
Proceeds from exercise of stock options	6,059	1,734	775
Share purchases under Employee Stock Purchase Plan	1,945	1,161
Proceeds from exercise of stock warrants	50	428	875
Net cash (used in) provided by financing activities	(1,642)	107,110	3,500
Effect of exchange rate changes on cash and cash equivalents	371	(26)	51
Net (decrease) increase in cash and cash equivalents	(15,078)	19,268	(4,424)
Cash and cash equivalents at beginning of period	21,572	2,304	6,728
Cash and cash equivalents at end of period	6,494	21,572	2,304
Supplemental disclosures of cash flow information
Interest paid	285	834	876
Taxes paid, net of refunds	513	25	12
Supplemental schedule of noncash investing and financing activities
Purchase of intangible assets in exchange for future payments		243
Conversion of preferred stock into common stock		159,077
Reduction of liability upon vesting of stock options previously exercised for unvested stock	$ 62	$ 86	$ 80

Organization and Basis of Prese

Organization and Basis of Presentation	12 Months Ended
	Dec. 31, 2016
Organization and Basis of Presentation
Organization and Basis of Presentation	1. Organization and business Glaukos Corporation (Glaukos or the Company), incorporated in Delaware on July 14, 1998, is a developer, manufacturer and marketer of medical devices for the treatment of glaucoma. The accompanying consolidated financial statements include the accounts of Glaukos, its wholly owned subsidiaries and, through June 30, 2015, affiliated entity DOSE Medical Corporation (DOSE) (see Note 11). All significant intercompany balances and transactions among the consolidated entities have been eliminated in consolidation. Liquidity From inception through 2015, the Company was not profitable and incurred operating losses in each year. For the year ended December 31, 2016, the Company had net income of $4.5 million and generated $12.3 million of cash from operations. At December 31, 2016, the Company had an accumulated deficit of $192.1 million. The Company has financed operations to date primarily through private placements of equity securities, the issuance of common stock in the initial public offering (IPO) completed in June 2015, debt financings and cash generated by its commercial operations. While the Company became profitable in 2016, it may not be able to sustain profitability on a recurring basis in the future. The Company plans to fund its operations and capital funding needs using existing cash and investments, cash generated from commercial operations, and through future debt and equity financings. There can be no assurance that the Company will be able to obtain additional financing on terms acceptable to it, or at all. Any equity financing may result in dilution to existing stockholders and any additional debt financing may include restrictive covenants. As of December 31, 2016, the Company had cash, cash equivalents and short-term investments totaling $95.8 million and net working capital of $103.1 million. The Company adopted Accounting Standards Update (ASU) 2014-15, Presentation of Financial Statements – Going Concern , effective December 31, 2016. The Company has performed an analysis and concluded substantial doubt does not exist with respect to the Company being able to continue as a going concern through one year from the date of issuance of the consolidated financial statements for the year ended December 31, 2016. Initial public offering On June 30, 2015, the Company completed its IPO, selling 6.9 million newly issued shares of common stock at a price of $18.00 per share. The IPO generated net cash proceeds of approximately $113.6 million, after deducting underwriting discounts and commissions of approximately $8.7 million and other related expenses of approximately $1.9 million. The underwriting discounts and commissions and offering costs were recorded as a reduction to the IPO proceeds included in additional paid‑in capital. Immediately prior to the closing of the IPO, all unexercised warrants to purchase shares of Series D convertible preferred stock were net exercised at the IPO price per share, and then all outstanding shares of convertible preferred stock automatically converted into approximately 21.7 million shares of common stock. Following the completion of the IPO, there were no shares of preferred stock and no warrants to purchase shares of Series D convertible preferred stock outstanding. An additional 4.5 million shares of common stock were reserved for issuance under the Company’s 2015 Omnibus Incentive Compensation Plan and 450,000 shares of common stock were reserved for the Company’s 2015 Employee Stock Purchase Plan. Acquisition of certain DOSE Medical Corporation assets On June 30, 2015, the Company acquired certain assets from DOSE, including the iDose product line, in exchange for a cash payment of $15.0 million and the elimination of all amounts owed by DOSE to the Company. In addition to an asset purchase, the parties agreed to an amended and restated patent license agreement and an amended and restated transition services agreement that provides for limited support from the Company to DOSE for a period of up to three years (see Note 11).

Summary of Significant Accounti

Summary of Significant Accounting Policies	12 Months Ended
	Dec. 31, 2016
Summary of Significant Accounting Policies
Summary of Significant Accounting Policies	2. Basis of presentation The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (GAAP). Use of estimates The preparation of the financial statements in conformity with GAAP requires management to make informed estimates and assumptions that affect the reported amounts in the financial statements and accompanying notes. Actual results could differ materially from those estimates and assumptions. Management considers many factors in selecting appropriate financial accounting policies and controls and in developing the estimates and assumptions that are used in the preparation of these financial statements. Management must apply significant judgment in this process. In addition, other factors may affect estimates, including expected business and operational changes, sensitivity and volatility associated with the assumptions used in developing estimates, and whether historical trends are expected to be representative of future trends. The estimation process often may yield a range of potentially reasonable estimates of the ultimate future outcomes, and management must select an amount that falls within that range of reasonable estimates. The most significant estimates in the accompanying consolidated financial statements relate to revenue recognition, inventory reserves and stock‑based compensation expense. Although these estimates are based on the Company’s knowledge of current events and actions it may undertake in the future, this process may result in actual results differing materially from those estimated amounts used in the preparation of the financial statements. Foreign currency translation The accompanying consolidated financial statements are presented in U.S. dollars. The Company considers the local currency to be the functional currency for its international subsidiaries. Accordingly, their assets and liabilities are translated into U.S. dollars using the exchange rate in effect on the balance sheet date. Revenues and expenses are translated at average exchange rates prevailing throughout the periods presented. Currency translation adjustments arising from period to period are charged or credited to accumulated other comprehensive income (loss) in stockholders’ equity. For the years ended December 31, 2016, 2015 and 2014, the Company reported income from foreign currency translation adjustments of approximately $542,000, $155,000 and $42,000, respectively. Realized gains and losses resulting from foreign currency transactions are included in selling, general and administrative expense in the consolidated statements of operations. For the years ended December 31, 2016, 2015 and 2014, the Company reported foreign currency transaction losses of approximately $608,000, $287,000 and $38,000, respectively. Cash, cash equivalents and short-term investments The Company invests its excess cash in marketable securities, including money market funds, money market securities, bank certificates of deposit, corporate bonds, and corporate commercial paper and U.S. government agency bonds. For financial reporting purposes, liquid investment instruments purchased with an original maturity of three months or less are considered to be cash equivalents. Cash and cash equivalents are recorded at face value or cost, which approximates fair market value. From time to time, the Company maintains cash balances in excess of amounts insured by the Federal Deposit Insurance Commission (FDIC). Investments are stated at fair value as determined by quoted market prices. Investments are considered available‑for‑sale and, accordingly, unrealized gains and losses are included in accumulated other comprehensive income (loss) within stockholders’ equity. The Company’s entire investment portfolio, except for restricted cash, is considered to be available for use in current operations and, accordingly, all such investments are stated at fair value using quoted market prices and classified as current assets, although the stated maturity of individual investments may be one year or more beyond the balance sheet date. The Company did not have any trading securities or restricted investments at December 31, 2016, 2015 and 2014. Realized gains and losses and declines in value, if any, judged to be other‑than‑temporary on available‑for‑sale securities, are reported in interest income or expense, net. When securities are sold, any associated unrealized gain or loss previously reported as a separate component of stockholders’ equity is reclassified out of stockholders’ equity and recorded in the statements of operations in the period sold using the specific identification method. Accrued interest and dividends are included in interest income. The Company periodically reviews its available‑for‑sale securities for other‑than‑temporary declines in fair value below the cost basis, and whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Concentration of credit risk and significant customers Financial instruments, which potentially subject the Company to significant concentration of credit risk, consist primarily of cash, cash equivalents, short-term investments and accounts receivable. The Company maintains deposits in federally insured financial institutions in excess of federally insured limits and management believes that the Company is not exposed to significant credit risk due to the financial position of the depository institutions in which those deposits are held. Additionally, the Company has established guidelines regarding investment instruments and their maturities which are designed to maintain preservation of principal and liquidity. The Company believes that the concentration of credit risk in its accounts receivable is mitigated by its credit evaluation process, relatively short collection terms and the level of credit worthiness of its customers. During 2016, 2015 and 2014, none of the Company’s customers accounted for more than 10% of revenues. Restricted cash The Company has a credit card facility with a bank which is collateralized by certificates of deposit maintained at the bank. Accounts receivable The Company sells its products directly to hospitals, surgery centers and distributors in the U.S. and internationally. The Company periodically assesses the payment performance of these customers and establishes reserves for anticipated losses when necessary, which losses historically have not been significant and have not exceeded management’s estimates. Accounts receivable are recorded at the invoiced amount and do not bear interest. The Company maintains an allowance for doubtful accounts based on historical collection experience and expectations of future collection based on current market conditions. The allowance for doubtful accounts is management’s best estimate of the amount of probable credit losses. Account balances are charged against the allowance when it is probable the receivable will not be recovered. The Company’s allowance for bad debts was approximately $495,000 and $83,000 as of December 31, 2016 and 2015, respectively, and no customers accounted for more than 10% of net accounts receivable as of either date. The Company generally permits returns of product from customers if such product is returned in a timely manner and in good condition. Estimated allowances for sales returns are based upon the Company’s historical patterns of product returns matched against sales, and management’s evaluation of specific factors that may increase the risk of product returns. Inventory Inventory is valued at the lower of cost or market (net realizable value). Cost is determined by the first‑in, first‑out method. Management evaluates inventory for excess quantities and obsolescence and records an allowance to reduce the carrying value of inventory as determined necessary. Long lived assets Property and equipment is recorded at cost. Depreciation of property and equipment is generally provided using the straight‑line method over the estimated useful lives of the assets, which range from three to five years. Leasehold improvements are amortized over their estimated useful life or the related lease term, whichever is shorter. Maintenance and repairs are expensed as incurred. All long lived assets are reviewed for impairment in value when changes in circumstances dictate, based upon undiscounted future operating cash flows, and appropriate losses are recognized and reflected in current earnings to the extent the carrying amount of an asset exceeds its estimated fair value, determined by the use of appraisals, discounted cash flow analyses or comparable fair values of similar assets. The Company recorded $14,000 of impairment charges during 2016 and none in 2015. Intangible assets Intangible assets are recorded at cost and are amortized over the estimated useful life. Intangible assets in the accompanying balance sheets are currently comprised of the cost of the Company’s buyout of a royalty payment obligation and the value of non-compete agreements entered into in 2015 with two former international distributors. See Note 5. Fair value measurements Assets and liabilities are measured using quoted prices in active markets and total fair value is the published market price per unit multiplied by the number of units held without consideration of transaction costs. Assets and liabilities that are measured using significant other observable inputs are valued by reference to similar assets or liabilities, adjusted for contract restrictions and other terms specific to that asset or liability. For these items, a significant portion of fair value is derived by reference to quoted prices of similar assets or liabilities in active markets. For all remaining assets and liabilities, fair value is derived using a fair value model, such as a Black‑Scholes model. Fair value of financial instruments The carrying amounts of cash equivalents, accounts receivable, accounts payable, and accrued liabilities are considered to be representative of their respective fair values because of the short‑term nature of those instruments. The valuation of assets and liabilities are subject to fair value measurements using a three‑tiered approach and fair value measurements are classified and disclosed by the Company in one of the following three categories: Level 1: Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities; Level 2: Quoted prices for similar assets and liabilities in active markets, quoted prices in markets that are not active, or inputs which are observable, either directly or indirectly, for substantially the full term of the asset or liability; and Level 3: Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (i.e., supported by little or no market activity). Revenue recognition The Company recognizes revenue from product sales when the following criteria are met: goods are shipped, title and risk of loss has transferred to its customers, persuasive evidence of an arrangement exists and collectability is reasonably assured. Persuasive evidence of an arrangement exists when there is a contractual arrangement in place with the customer. Delivery has occurred when a product is shipped. If persuasive evidence of an arrangement exists and delivery has occurred, the Company determines whether the invoiced amount is fixed or determinable and collectability of the invoiced amount is reasonably assured. The Company assesses whether the invoiced amount is fixed or determinable based on the existing arrangement with the customer, including whether the Company has sufficient history with a customer to reliably estimate the customer’s payment patterns. The Company assesses collectability by evaluating historical cash receipts and individual customer outstanding balances. To the extent all criteria set forth above are not satisfied at the time of shipment, revenue is recognized when cash is received from the customer. Customers are not granted specific rights of return; however, the Company may permit returns of product from customers if such product is returned in a timely manner and in good condition. The Company provides a warranty on its products for one year from the date of shipment, and any product found to be defective or out of specification will be replaced at no charge during the warranty period. Estimated allowances for sales returns and warranty replacements are recorded at the time of sale of the product and are estimated based upon the historical patterns of product returns matched against sales, and an evaluation of specific factors that may increase the risk of product returns. Product returns and warranty replacements to date have been consistent with amounts reserved or accrued and have not been significant. Shipping and handling costs All shipping and handling costs are expensed as incurred and are charged to general and administrative expense. Charges to customers for shipping and handling are credited to general and administrative expense. Advertising costs All advertising costs are expensed as incurred. Advertising costs incurred during the years ended December 31, 2016, 2015 and 2014 were approximately $1.6 million, $0.8 million and $0.4 million, respectively. Income taxes Income taxes are accounted for using an asset and liability approach that requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of temporary differences between the financial reporting basis and the tax basis of the Company’s assets and liabilities at the applicable tax rates, along with net operating loss and tax credit carryovers. The Company records a valuation allowance against its deferred tax assets to reduce the net carrying value to an amount that it believes is more likely than not to be realized. Management has considered estimated taxable income and ongoing prudent and feasible tax planning strategies in assessing the amount of the valuation allowance. Based upon the weight of available evidence, which includes the Company’s historical operating performance and limited potential to utilize tax credit carryforwards, the Company has determined that total deferred tax assets should be fully offset by a valuation allowance. When the Company establishes or reduces the valuation allowance against its deferred tax assets, its provision for income taxes will increase or decrease, respectively, in the period such determination is made. The Company is required to file federal and state income tax returns in the United States and various other state jurisdictions. The preparation of these state income tax returns requires the company to interpret the applicable tax laws and regulations in effect in such jurisdictions, which could affect the amount of tax paid by us. Additionally, the Company follows an accounting standard addressing the accounting for uncertainty in income taxes that prescribes rules for recognition, measurement, and classification in the financial statements of tax positions taken or expected to be taken in a tax return. Research and development expenses Major components of research and development expense include personnel costs, preclinical studies, clinical trials and related clinical product manufacturing, materials and supplies, and fees paid to consultants. Research and development costs are expensed as goods are received or services are rendered. Costs to acquire technologies to be used in research and development that have not reached technological feasibility and have no alternative future use are also expensed as incurred. At each financial reporting date, the Company accrues the estimated costs of clinical study activities performed by third party clinical sites with whom the Company has agreements that provide for fees based upon the quantities of subjects enrolled and clinical evaluation visits that occur over the life of the study. The cost estimates are determined based upon a review of the agreements and data collected by internal and external clinical personnel as to the status of enrollment and subject visits, and are based upon the facts and circumstances known to the Company at each financial reporting date. If the actual performance of activities varies from the assumptions used in the cost estimates, the accruals are adjusted accordingly. There have been no material adjustments to the Company’s prior period accrued estimates for clinical trial activities through December 31, 2016. Stock‑based compensation The Company recognizes compensation expense for all stock‑based awards granted to employees and nonemployees, including members of its Board of Directors. The fair value of stock‑based awards made to employees is estimated at the grant date using the Black‑Scholes option‑pricing model, and the portion that is ultimately expected to vest is recognized as compensation cost over the requisite service period using the straight‑line method. The determination of the fair value‑based measurement of stock options on the date of grant using an option pricing model is affected by the determination of the fair value of the underlying stock as well as assumptions regarding a number of highly complex and subjective variables. These variables include, but are not limited to, the Company’s stock price volatility over the expected term of the grants, and actual and projected employee stock option exercise behaviors. In the future, as additional empirical evidence regarding these estimates becomes available, the Company may change or refine its approach of deriving them, and these changes could impact the fair value‑based measurement of stock options granted in the future. Changes in the fair value‑based measurement of stock awards could materially impact the Company’s operating results. The fair values of stock‑based awards made to nonemployees are remeasured at each reporting period using the Black‑Scholes option‑pricing model. Compensation expense for these stock‑based awards is determined by applying the remeasured fair values to the shares that have vested during a period. Comprehensive income (loss) All components of comprehensive income (loss), including net income (loss), are reported in the financial statements in the period in which they are recognized. Comprehensive income (loss) is defined as the change in equity during a period from transactions and other events and circumstances from non‑owner sources, including unrealized gains and losses on marketable securities and foreign currency translation adjustments. Net income (loss) per share Basic net income (loss) per share is calculated by dividing the net income (loss) by the weighted average number of common shares that were outstanding for the period, without consideration for common stock equivalents. Diluted net income (loss) per share is calculated by dividing the net income (loss) by the sum of the weighted average number of dilutive common share equivalents outstanding for the period determined using the treasury stock method. Common stock equivalents are comprised of convertible preferred stock, stock warrants, and stock options outstanding under the Company’s stock option plans. Potentially dilutive securities not included in the calculation of diluted net income (loss) per share attributable to common stockholders because to do so would be anti‑dilutive were as follows (in common stock equivalent shares, in thousands): As of December 31, Stock options outstanding Employee stock purchase plan — — Common stock warrants outstanding — — Convertible preferred stock outstanding — — Preferred stock warrants outstanding — — Recent accounting pronouncements In May 2014, the Financial Accounting Standards Board (FASB) issued guidance in ASU 2014-09 which was codified in Accounting Standards Codification (ASC) 606, Revenue Recognition – Revenue from Contracts with Customers (ASC 606). ASC 606 provides a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers, and is principles-based, such that revenue is recognized to depict the transfer of goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. ASU 2015-14 deferred the effective date of ASC 606 to annual reporting periods beginning after December 15, 2017 (including interim periods within those periods) and while early adoption is permitted, the Company plans to adopt ASC 606 on January 1, 2018. Companies are required to apply ASC 606 retrospectively; however, companies may use either a full retrospective or a modified retrospective approach when adopting the standard. The Company intends to adopt using the modified retrospective approach, with a cumulative catch-up adjustment to the opening balance sheet of retained earnings at the effective date. The Company has performed a preliminary analysis and does not believe adoption of the standard will have a material impact on its consolidated financial statements. In the preliminary analysis, the Company has concluded it generally has one performance obligation, the transaction price is not impacted by any variable consideration or other factors noted in ASC 606, and the Company’s performance obligations are generally satisfied when products are shipped. The Company will continue to review variable consideration, potential disclosures, and the method of adoption in order to complete the evaluation of the impact on the consolidated financial statements. In addition, the Company will continue to monitor additional changes, modifications, clarifications or interpretations undertaken by the FASB, which may impact the current conclusions. In June 2014, the FASB issued an ASU that requires a performance target that affects vesting of a share‑based payment award and that could be achieved after the requisite service period to be treated as a performance condition. As such, the performance target should not be reflected in estimating the grant date fair value of the award. Compensation cost should be recognized over the required service period if it is probable that the performance target will be achieved. This guidance was effective for fiscal years beginning after December 15, 2015, which was the Company’s year ended December 31, 2016. Adoption of the guidance did not have a material impact on the Company’s consolidated financial statements. In July 2015, the FASB issued ASU 2015‑11, Inventory (Topic 330), Simplifying the Measurement of Inventory , which changes the measurement principle for inventory from the lower of cost or market to the lower of cost and net realizable value. ASU 2015‑11 defines net realizable value as estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. The new guidance was effective for the Company on January 1, 2016 and the adoption had no impact on the Company’s consolidated financial statements. In November 2015, the FASB issued guidance on balance sheet classification of deferred taxes. Previously, GAAP required an entity to separate deferred income tax liabilities and assets into current and noncurrent amounts in a classified statement of financial position. To simplify the presentation of deferred income taxes, the new guidance requires that deferred tax liabilities and assets be classified as noncurrent in a classified statement of financial position. The current requirement that deferred tax liabilities and assets of a tax-paying component of an entity be offset and presented as a single amount is not affected by this new guidance. The new guidance is effective for fiscal years beginning after December 15, 2016, and interim periods within those annual periods. Earlier application is permitted for all entities as of the beginning of an interim or annual reporting period. For the year ended December 31, 2015, the Company elected to early adopt this update and has presented all its deferred tax assets and liabilities as non-current for the years ended December 31, 2016 and 2015. The Company has applied the Standard on a prospective basis. Therefore, the classifications of deferred tax assets and liabilities in periods prior to the year ended December 31, 2015 have not been changed from the original presentation. In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842). The ASU requires management to recognize almost all leases with a term greater than one year as a right-of-use asset and corresponding liability, measured at the present value of the lease payments. The new standard must be adopted using the modified retrospective approach and will be effective for the Company starting in the first quarter of 2019. Early adoption is permitted. The Company is currently evaluating the impact this guidance will have on its consolidated financial statements, however, the Company anticipates recognition of additional assets and corresponding liabilities on its consolidated financial statements. In March 2016, the FASB issued ASU No. 2016-09 , Compensation – Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting (ASU 2016-09), which modifies certain aspects of the accounting for share-based payment transactions, including income taxes, classification of awards, and classification in the statement of cash flows. The amendments are intended to improve the accounting for employee share-based payments and affect all organizations that issue share-based payment awards to their employees. Several aspects of the accounting for share-based payment award transactions are simplified, including: (a) income tax consequences; (b) classification of awards as either equity or liabilities; and (c) classification on the statement of cash flows. The amendments are effective for annual periods beginning after December 15, 2016, and interim periods within those annual periods and the Company will adopt ASU 2016-09 in its first quarter 2017. As of December 31, 2016, the Company has excess tax benefits related to share-based compensation. As a result of the adoption of ASU 2016-09 on January 1, 2017, excess tax benefits of $13.1 million will be recorded to our net operating loss carryover resulting in an increase in our deferred tax assets and associated valuation allowance. In November 2016, the FASB issued ASU No. 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash (ASC 2016-18), which enhances and clarifies the guidance on the classification and presentation of restricted cash in the statement of cash flows. ASU 2016-18 will be effective for the Company starting in the first quarter of 2018. Currently, the Company's restricted cash balance is not significant and the Company is currently evaluating the impact this guidance will have on its consolidated financial statements. In January 2017, the FASB issued ASU No. 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business (ASU 2017-01), clarifying the definition of a business. The amendments are intended to help companies evaluate whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. When substantially all of the fair value of gross assets acquired is concentrated in a single asset (or a group of similar assets), the assets acquired would not represent a business. This introduces an initial required screening that, if met, eliminates the need for further assessment. To be considered a business, an acquisition would have to include an input and a substantive process that together significantly contribute to the ability to create outputs. To be a business without outputs, there will need to be an organized workforce. The ASU also narrows the definition of the term “outputs” to be consistent with how it is described in Topic 606, Revenue from Contracts with Customers. The amendments are effective for annual periods beginning after December 15, 2017, including interim periods within those periods with early adoption permitted. The Company is currently evaluating the impact this guidance will have on its consolidated financial statements.

Balance Sheet Details

Balance Sheet Details	12 Months Ended
	Dec. 31, 2016
Balance Sheet Details
Balance Sheet Details	3. Short-term investments Short-term investments consisted of the following (in thousands): At December 31, 2016 Maturity Amortized cost Unrealized Unrealized Estimated (in years) or cost gains losses fair value Government agency bonds 1-3 $ $ $ $ Bank certificates of deposit less than 2 Commercial paper less than 1 Corporate notes less than 3 Asset-backed securities less than 2 — Total $ $ $ $ At December 31, 2015 Maturity Amortized cost Unrealized Unrealized Estimated (in years) or cost gains losses fair value U.S. government agency bonds 1-3 $ $ — $ $ Commercial paper less than 1 — Corporate notes 1-3 — Asset-backed securities 1-3 — Total $ $ — $ $ Accounts receivable, net Accounts receivable consisted of the following (in thousands): December 31, Accounts receivable $ $ Less allowance for doubtful accounts $ $ Inventory Inventory consisted of the following (in thousands): December 31, Finished goods $ $ Work in process Raw material $ $ Property and equipment, net Property and equipment consisted of the following (in thousands): December 31, Buildings $ $ — Equipment Furniture and fixtures Leasehold improvements Computer equipment and software Construction in progress Less accumulated depreciation and amortization $ $ Depreciation and amortization expense related to property and equipment was $1.1 million, $0.8 million and $0.7 million for the years ended December 31, 2016, 2015 and 2014, respectively. Accrued liabilities Accrued liabilities consisted of the following (in thousands): December 31, Accrued contract payments (see Note 10) $ $ Accrued sales commissions Accrued clinical study payments Accrued bonuses Accrued vacation benefits Other accrued liabilities $ $

Fair Value Measurements

Fair Value Measurements	12 Months Ended
	Dec. 31, 2016
Fair Value Measurements
Fair Value Measurements	4. Fair value is an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. As such, fair value is a market‑based measurement that should be determined based on assumptions that market participants would use in pricing an asset or liability. The following tables present information about the Company’s financial assets and financial liabilities measured at fair value on a recurring basis as of December 31, 2016 and 2015, and indicates the fair value hierarchy of the valuation techniques utilized by the Company to determine such fair value (in thousands): At December 31, 2016 Significant Quoted prices in other Significant active markets for observable unobservable December 31, identical assets inputs inputs (Level 1) (Level 2) (Level 3) Assets Money market funds (i) $ $ $ — $ — U.S. government agency bonds (ii) — — Bank certificates of deposit (ii) — — Commercial paper (ii) — — Corporate notes (ii) — — Asset-backed securities (ii) — — Total assets $ $ $ $ — (i) Included in cash and cash equivalents with a maturity of three months or less from date of purchase on the consolidated balance sheets. (ii) Included in short-term investments on the consolidated balance sheets. At December 31, 2015 Significant Quoted prices in other Significant active markets for observable unobservable December 31, identical assets inputs inputs (Level 1) (Level 2) (Level 3) Assets Money market funds (i) $ $ $ — $ — U.S. government agency bonds (ii) — — Commercial paper (ii) — — Corporate notes (ii) — — Asset-backed securities (ii) — — Total assets $ $ $ $ — Liabilities Stock warrant liability $ $ — $ — $ Total liabilities $ $ — $ — $ (i) Included in cash and cash equivalents with a maturity of three months or less from date of purchase on the consolidated balance sheets. (ii) Included in short-term investments on the consolidated balance sheets. Money market funds are highly liquid investments and are actively traded. The pricing information on these investment instruments is readily available and can be independently validated as of the measurement date. This approach results in the classification of these securities as Level 1 of the fair value hierarchy. U.S. government agency bonds, bank cerificates of deposit, commercial paper, corporate notes and asset-backed securities are measured at fair value using Level 2 inputs. The Company reviews trading activity and pricing for these investments as of each measurement date. When sufficient quoted pricing for identical securities is not available, the Company uses market pricing and other observable market inputs for similar securities obtained from third party data providers. These inputs represent quoted prices for similar assets in active markets or these inputs have been derived from observable market data. This approach results in the classification of these securities as Level 2 of the fair value hierarchy. The stock warrant liability is recorded at fair value using the Black Scholes option pricing model, which requires inputs such as the expected term of the warrant, volatility and risk free interest rate. These inputs are subjective and generally require significant analysis and judgment to develop, and are therefore considered Level 3 inputs. There were no transfers between levels within the fair value hierarchy during the periods presented. In conjunction with the Company’s February 2015 Amended and Restated Revolving Credit and Term Loan Agreement as more fully described in Note 5, the Company issued warrants to the lenders to purchase 11,298 shares of common stock at an exercise price of $8.85 per share. Warrants to purchase 5,649 shares of common stock were exercised by the lenders in September 2015. For the year ended December 31, 2015, the Company recorded other expense of $0.2 million related to changes in the fair value of the warrants. The fair value of the warrants as of the issuance date was estimated to be $53,000 using an option pricing framework considering multiple exit scenarios and the probability of a down‑round financing. The following assumptions were deemed by the Company to be significant unobservable inputs: risk‑free interest rate of 1.9%; dividend yield of 0.0%; expected volatility of 70.0%; and an expected life of 7 years. The fair value of the warrants to purchase the remaining 5,649 shares of common stock as of December 31, 2015 was estimated to be $0.1 million using the Black‑Scholes valuation model with the following assumptions deemed by the Company to be significant unobservable inputs: risk‑free interest rate of 1.9%; dividend yield of 0.0%; expected volatility of 54.8%; and an expected life of 6.2 years. In February 2016, the other lender exercised the remaining warrant to purchase 5,649 shares of common stock. For the years ended December 31, 2016, 2015 and 2014, the Company recorded other income (expense) of approximately $43,000, ($0.2) million and $0, respectively, related to changes in the fair value of these warrants. In conjunction with loans to the Company in 2010 from certain holders of the Company’s then‑outstanding preferred stock, which shares were subsequently converted into preferred stock in 2011, the Company issued warrants to such holders to purchase 156,860 shares of Series D convertible preferred stock at $7.65 per share. Warrants to purchase 29,334 shares were exercised in 2014. Warrants to purchase 127,526 shares were exercised in 2015; 49,410 warrant shares were exercised with cash payment and 78,116 warrant shares were net exercised into 44,914 shares of common stock immediately prior to the IPO at the IPO price per share of $18.00 per share. For the years ended December 31, 2016, 2015 and 2014, the Company recorded other income (expense) of approximately $0, ($0.9) million and $5,000, respectively, related to changes in the fair value of these warrants. In conjunction with loans in 2006 from certain holders of the Company’s preferred stock, which were repaid in 2007, the Company issued warrants to purchase 185,714 shares of Series C preferred stock at $7.00 per share. All of these warrants were exercised in January 2014. For the years ended December 31, 2016, 2015 and 2014, the Company did not record any other income or expense related to changes in the fair value of these warrants. The following table provides a reconciliation of liabilities measured at fair value using level 3 significant unobservable inputs (Level 3) on a recurring basis (in thousands): Warrant liability Balance at December 31, 2014 $ Issuance of common stock warrants Change in the fair value of stock warrants Issuance of Series D convertible preferred stock in connection with exercises of preferred stock warrants Issuance of common stock in connection with exercise of common stock warrant Balance at December 31, 2015 Change in the fair value of stock warrants Issuance of common stock in connection with exercise of common stock warrant Balance at December 31, 2016 $ —

Long-term Debt and Intangible A

Long-term Debt and Intangible Assets	12 Months Ended
	Dec. 31, 2016
Long-Term Debt and Intangible Assets
Long-Term Debt and Intangible Assets	5. Notes payable in connection with GMP Vision Solutions In January 2007, the Company entered into an agreement (the Original GMP Agreement) with GMP Vision Solutions, Inc. (GMP) to acquire certain in‑process research and development. In connection with the Original GMP Agreement, the Company was obligated to make periodic royalty payments equal to a single‑digit percentage of revenues received for royalty‑bearing products and periodic royalty payments at a higher royalty rate applied to all amounts received in connection with the grant of licenses or sublicenses of the related intellectual property. In November 2013, the Company entered into an amended agreement with GMP in which remaining royalties payable to GMP (the Buyout Agreement) were canceled in exchange for the issuance of $17.5 million in promissory notes payable to GMP and a party related to GMP (together, the GMP Note Parties). The GMP notes were collateralized by all of the Company’s assets, excluding intellectual property. The promissory notes carried an interest rate of 5% per annum and required monthly interest only payments from November 30, 2013 through December 31, 2014 of $72,900, followed by 24 equal monthly principal and interest payments of $767,700, which began on January 31, 2015, and ended on December 31, 2016. The notes were paid off in full as of December 31, 2016. The Buyout Agreement also calls for a payment of up to $2.0 million in the event of a sale of the Company meeting certain criteria. The Company concluded that the $17.5 million transaction represented the purchase of an intangible asset. The Company estimated a useful life of five years over which the intangible asset is being amortized to cost of sales in the accompanying statements of operations, which amortization period was determined after consideration of the projected outgoing royalty payment stream had the Buyout Agreement not occurred, and the remaining life of the patents obtained in the Original GMP Agreement. After determining that the pattern of future cash flows associated with this intangible asset could not be reliably estimated with a high level of precision, the Company concluded that the intangible asset will be amortized on a straight‑line basis over the estimated useful life. Bank loan facility In February 2015, the Company and its primary bank executed an Amended and Restated Revolving Credit and Term Loan Agreement (the Amended Credit Agreement) which provided for a $5.0 million senior secured term loan, a $5.0 million senior secured draw‑to term loan and an $8.0 million senior secured revolving credit facility. Amounts owed under the Amended Credit Agreement were secured by a first priority security interest in all of the Company’s assets, excluding intellectual property. The Amended Credit Agreement included certain reporting and financial covenants which, if not met, could have constituted an event of default under the Amended Credit Agreement. On the closing date, the Company received $5.0 million cash under the senior secured term loan. The Company incurred loan origination fees of $41,000 which was recorded as a loan discount, and debt issuance costs of $0.1 million which was recorded as a deferred asset. As of July 31, 2015, the Company had drawn $2.0 million under the draw‑to term loan. The senior secured term loan and draw‑to term loan would have matured and would have been required to be fully paid by February 23, 2019. The entire unpaid principal amount plus any accrued but unpaid interest under the revolving line of credit were due to become payable in full on February 23, 2017. Outstanding balances under the senior secured term loan and senior secured draw‑to term loan bore interest on the outstanding daily balance at an annual percentage rate equal to the bank’s prime rate plus 2%. At the Company’s option all or a portion of the amounts owed under any of the senior secured term loan and draw‑to term loan may have been converted into Eurodollar‑based advances at an annual percentage rate equal to LIBOR plus 3%. Outstanding balances under the revolving credit facility bore interest on the outstanding daily balance thereof at an annual percentage rate equal to the bank’s prime rate plus 1.75%. At the Company’s option all or a portion of the amounts owed under the revolving credit facility may have been converted into Eurodollar‑based advances at an annual percentage rate equal to LIBOR plus 2.75%. On July 31, 2015, the Company paid off in full all amounts outstanding under the Amended Credit Agreement with the payment of $7.0 million in principal plus all interest and fees payable through the payoff date, and recorded a loss on extinguishment of debt in the amount of $0.2 million. Accordingly, this facility was terminated and is no longer outstanding and available to the Company. In connection with the execution of the Amended Credit Agreement, the Company issued warrants to the lenders to purchase an aggregate of 11,298 shares of common stock at an exercise price of $8.85 per share as more fully described in Note 4. Warrants to purchase 5,649 shares of common stock were exercised by the lenders in September 2015, and the other lender exercised its warrant to purchase 5,649 shares of common stock in February 2016. As of December 31, 2016, no warrants remain outstanding. The Company accounted for the debt discount and deferred asset utilizing the effective interest method. Amortization of debt discount and the deferred asset to interest expense amounted to $0 and $15,000 for the years ended December 31, 2016 and 2015, respectively. The Company’s debt balances, including current portions, were as follows (in thousands): December 31, Notes payable $ — $ Total debt — Less current portion of long-term debt — Total long-term debt $ — $ Intangible assets In 2015, the Company entered into agreements with two international distributors pursuant to which their distribution rights with the Company were terminated effective as of December 31, 2015. As part of the agreements the distributors agreed to provide certain services to, and not compete with, the Company for one-to-two years in exchange for payments calculated based on single-digit percentages of the Company’s future revenues in those years in the countries that had comprised their territories. Management recorded the estimated fair value of the non-compete provisions as an intangible asset of approximately $0.2 million, which will be amortized on a straight-line basis to selling, general and administrative expense over the one-to-two year period. The following reflects the composition of intangible assets, net (in thousands): December 31, December 31, GMP royalty buyout $ $ Non-compete agreements Accumulated amortization Total $ $ Weighted average amortization period (in months) In the years ended December 31, 2016, 2015 and 2014, the Company recorded related amortization expense of $3.7 million, $3.5 million and $3.5 million in cost of sales. Estimated amortization expense will be $3.6 million in 2017 and $3.0 million in 2018.

Convertible Preferred Stock and

Convertible Preferred Stock and Stockholders' Equity	12 Months Ended
	Dec. 31, 2016
Convertible Preferred Stock and Stockholders' Equity
Convertible Preferred Stock and Stockholders' Equity	6. Convertible preferred stock Immediately prior to the completion of the IPO, and after all unexercised warrants to purchase shares of Series D convertible preferred stock were net exercised at the IPO price per share, the Company had outstanding 21,736,367 shares of convertible preferred stock which automatically converted into 21,736,367 shares of the Company’s common stock. The related carrying value of $159.1 million was reclassified to additional paid-in capital in the period ending June 30, 2015, and no shares of convertible preferred stock were outstanding thereafter. The following reflects the composition of convertible preferred stock as of December 31, 2014 (in thousands, except per share amounts): Series A convertible preferred stock, $0.001 par value; 3,000 shares authorized and 1,200 shares issued and outstanding at December 31, 2014; liquidation preference of $3,000 at December 31, 2014 $ Series B convertible preferred stock, $0.001 par value; 5,805 shares authorized and 2,322 shares issued and outstanding at December 31, 2014; liquidation preference of $12,538 at December 31, 2014 Series C convertible preferred stock, $0.001 par value; 14,750 shares authorized and 5,819 shares issued and outstanding at December 31, 2014 ; liquidation preference of $40,731 at December 31, 2014 Series D convertible preferred stock, $0.001 par value; 13,844 shares authorized and 5,410 shares issued and outstanding at December 31, 2014; liquidation preference of $41,387 at December 31, 2014 Series E convertible preferred stock, $0.001 par value; 8,754 shares authorized and 3,501 shares issued and outstanding at December 31, 2014; liquidation preference of $29,500 at December 31, 2014 Series F convertible preferred stock, $0.001 par value; 8,474 shares authorized and 3,390 shares issued and outstanding at December 31, 2014; liquidation preference of $30,000 at December 31, 2014 Total $ Preferred stock The Company is authorized to issue 5.0 million shares of its preferred stock. No shares of preferred stock have been issued. Common stock Prior to the completion of the Company’s IPO in June 2015, all common stock issued resulted from the founding of the Company and the exercises of stock options. On June 30, 2015, the Company completed its IPO, selling 6.9 million newly issued shares of common stock at a price of $18.00 per share. Immediately prior to the closing of the IPO, all unexercised warrants to purchase shares of Series D convertible preferred stock were net exercised at the IPO price per share, and then all outstanding shares of convertible preferred stock automatically converted into approximately 21.7 million shares of common stock. In 2013, the Company repurchased at fair market value and placed into treasury 28,000 shares of its common stock that had been acquired in connection with the exercise of a stock option.

Stock-Based Compensation

Stock-Based Compensation	12 Months Ended
	Dec. 31, 2016
Stock-Based Compensation.
Stock-Based Compensation	7. The Company has four stock‑based compensation plans (collectively, the Stock Plans)—the 2001 Stock Option Plan (the 2001 Stock Plan), the 2011 Stock Plan (the 2011 Stock Plan), the 2015 Omnibus Incentive Compensation Plan (the 2015 Stock Plan) and the 2015 Employee Stock Purchase Plan (the ESPP). The purpose of these plans is to provide incentives to employees, directors and nonemployee consultants. The Company no longer grants any awards under the 2001 Stock Plan and the 2011 Stock Plan. The maximum term of any stock options granted under the Stock Plans is 10 years. The options generally vest 25% on the first anniversary of the original vesting date, with the balance vesting monthly or annually over the remaining three years. Stock options are granted at exercise prices at least equal to the fair value of the underlying stock at the date of the grant. The ESPP permits eligible employees to purchase shares of the Company’s common stock, using contributions via payroll deduction of up to 15% of their earnings, at a price per share equal to 85% of the lower of the stock’s fair market value on the offering date or purchase date. The ESPP is intended to qualify as an “employee stock purchase plan” under Section 423 of the Internal Revenue Code. As of January 1, 2017, the Company has reserved an aggregate of 7.8 million shares of common stock for issuance under the 2015 Stock Plan, and 1.1 million shares of common stock for issuance under the ESPP. Stock options granted pursuant to the 2001 Stock Plan and 2011 Stock Plan permitted optionees to elect to exercise unvested options in exchange for restricted common stock. All unvested shares issued upon the early exercise of stock options, so long as they remain unvested, are subject to the Company’s right of repurchase at the optionee’s original exercise price for a 90‑day period beginning on the date that an optionee’s service with the Company voluntarily or involuntarily terminates. Consistent with authoritative guidance, early exercises are not considered exercises for accounting purposes. Cash received for the exercise of unvested options is recorded as a liability, which liability is released to equity at each reporting date as the shares vest. During the years ended December 31, 2016, 2015 and 2014, there were option exercises for 0, 337 and 55,908 unvested shares, respectively. As of December 31, 2016 and 2015, 977 and 16,682 shares, respectively, remained subject to a repurchase right by the Company. As of December 31, 2016 and 2015, the related liability, which is included in other accrued liabilities in the accompanying consolidated balance sheets, was approximately $4,000 and $67,000, respectively. The following table summarizes stock option activity under the 2001 Stock Plan, 2011 Stock Plan and 2015 Stock Plan (in thousands): Number of Weighted- shares Weighted- average Aggregate underlying average remaining intrinsic options exercise price contractual value (in (in thousands) per share life (in years) thousands) Outstanding at December 31, 2013 $ $ Granted Exercised Canceled/forfeited/expired Outstanding at December 31, 2014 $ $ Granted Exercised Canceled/forfeited/expired Outstanding at December 31, 2015 $ $ Granted Exercised Canceled/forfeited/expired Outstanding at December 31, 2016 $ $ Vested and expected to vest at December 31, 2016 $ $ Exercisable at December 31, 2016 $ $ Intrinsic value is calculated as the difference between the exercise price of the underlying options and the fair value of the common stock for the options that had exercise prices that were lower than the fair value per share of the common stock on the date of exercise. Valuation and expense recognition of stock‑based awards The Company accounts for the measurement and recognition of compensation expense for all share‑based awards made to the Company’s employees and nonemployees based on the estimated fair value of the awards. The following table summarizes the allocation of stock‑based compensation in the accompanying consolidated statements of operations (in thousands): Year ended December 31, Cost of sales $ $ $ Selling, general & administrative Research and development Total $ $ $ The weighted average estimated grant date fair value per share of stock options granted during the years ended December 31, 2016, 2015 and 2014 was $10.81, $9.77 and $4.08, respectively. At December 31, 2016, the total unamortized stock‑based compensation expense of approximately $23.8 million is to be recognized over the stock options’ remaining vesting terms of approximately 4.0 years (3.0 years on a weighted average basis). The total fair value of stock options that vested during the years ended December 31, 2016 and 2015 was $5.7 million and $5.2 million, respectively. In July 2014, the Company granted stock options to purchase an aggregate of 1.2 million shares of common stock, which options contain a performance condition such that they would only become exercisable in the event that the Company’s common stock was listed on a national securities exchange within one year from the date of grant. In accordance with authoritative guidance, the Company did not record any compensation expense associated with the grants until the performance condition was satisfied on June 30, 2015. Upon the completion of the IPO on June 30, 2015, the Company immediately recognized cumulative compensation cost of $3.8 million for the grants as if the method had been applied since the date of grant using the required graded accelerated attribution method, and the Company will record compensation expense over the remainder of the four‑year vesting period using this method. Stock options granted subsequent to July 2014 do not contain a performance condition. The Company uses the Black‑Scholes option‑pricing model to estimate the fair value of stock‑based awards on the date of grant. The determination of fair value using the Black‑Scholes option‑pricing model is affected by the estimated fair market value per share of the Company’s common stock as well as assumptions regarding a number of highly complex and subjective variables, including expected stock price volatility, risk‑free interest rate, expected dividends and expected option life and generally requires significant management judgment to determine. Risk‑free interest rate. The risk‑free interest rate is equal to the U.S. Treasury Note interest rate for the comparable term for the expected option life as of the valuation date. If the expected option life is between the U.S. Treasury Note rates of two published terms, then the risk‑free interest rate is based on the straight‑line interpolation between the U.S. Treasury Note rates of the two published terms as of the valuation date. Expected dividend yield. The expected dividend yield is based on the Company’s history and expectation of dividend payouts. The Company has never declared or paid any cash dividends and does not presently plan to pay cash dividends in the foreseeable future. Expected volatility. The Company only recently began to have publicly traded equity and has a limited operating history and a lack of Company‑specific historical and implied volatility data, and therefore has estimated its stock price volatility based upon an index of the historical volatilities of a group of comparable publicly‑traded medical device peer companies. The historical volatility data was computed using the historical daily closing prices for the selected peer companies’ shares during the equivalent period of the calculated expected term of the Company’s share‑based awards. The Company will continue to apply this process until a sufficient amount of historical information regarding the volatility of its own stock price becomes available. Expected term. The Company has concluded that its stock option exercise history does not provide a reasonable basis upon which to estimate expected term, and therefore it uses the simplified method for estimating the expected term of stock option grants. Under this approach, the weighted‑average expected term is presumed to be the average of the vesting term and the contractual term of the option. Fair value of common stock. Historically, and until the June 30, 2015 completion of the Company’s IPO, the fair value of the shares of common stock underlying the stock options has been the responsibility of and determined by the Company’s Board of Directors. Because there had been no public market for the Company’s common stock, the Board of Directors determined the fair value of common stock at the time of grant of the option by considering a number of objective and subjective factors including independent third‑party valuations of the Company’s common stock, sales prices of convertible preferred stock to unrelated third parties, operating and financial performance, the lack of liquidity of capital stock and general and industry specific economic outlook, among other factors. Subsequent to the date of the Company’s IPO in June 2015, the Company has used the daily market prices in the determination of the fair value of its common stock. Stock‑based awards to employees The weighted‑average assumptions used to estimate the fair value of options granted to employees were as follows: Year ended December 31, Risk-free interest rate % % % Expected dividend yield % % % Expected volatility % % % Expected term (in years) Forfeiture rate. The Company reduces employee share‑based compensation expense for estimated forfeitures. Forfeitures are estimated at the time of grant based on historical experience, and revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates. The weighted‑average per share exercise price of options granted to employees during the years ended December 31, 2016, 2015 and 2014 was $21.24, $17.79 and $7.13, respectively. Stock‑based awards to nonemployees The fair values of stock‑based awards made to nonemployees are remeasured at the end of the reporting period using the Black‑Scholes option pricing model. The expected life for each option is determined based on the time remaining until the expiration of the option as of the date of remeasurement. Compensation expense for these share‑based awards is determined by applying the recalculated fair values to the shares that have vested during a period. Through December 31, 2016, in conjunction with various consulting agreements, the Company issued options to nonemployees to purchase 891,400 shares of common stock at exercise prices ranging from $0.25 to $25.91 per share. For the years ended December 31, 2016, 2015 and 2014, the Company recorded nonemployee stock‑based compensation expense of $0.8 million, $1.1 million and $0.3 million, respectively. Common stock reserved for future issuance Common stock reserved for issuance is as follows (in thousands): As of December 31, Stock options issued and outstanding—2001 Plan Stock options issued and outstanding—2011 Plan Stock options issued and outstanding—2015 Plan Employee stock purchase plan Authorized for future stock awards or option grants

Income Taxes

Income Taxes	12 Months Ended
	Dec. 31, 2016
Income Taxes
Income Taxes	8. United States and foreign income (loss) before income taxes was as follows (in thousands): Year ended December 31, United States $ $ $ Foreign Total $ $ $ The provision for income taxes was as follows (in thousands): December 31, Current: Federal $ $ — $ — State Foreign — — — Deferred: Federal — — — State — — — Foreign — — — — — — Provision for income taxes $ $ $ The tax provision for the noncontrolling interest was $0 in 2015 and 2014; therefore, no tax benefit or expense was allocated to the net loss attributable to noncontrolling interest. The reconciliations of the U.S. federal statutory tax rate to the combined effective tax rate are as follows: Year ended December 31, Statutory rate of tax expense % % % State income taxes, net of federal benefit Permanent and other items Deconsolidation of DOSE Nondeductible offering costs Research credits Uncertain tax positions Change in tax rate Valuation allowance Effective tax rate % % % Significant components of the Company’s net deferred tax assets at December 31, 2016 and 2015 are as follows (in thousands): December 31, Deferred tax assets: Net operating loss carryforwards $ $ Tax credits Depreciation and amortization Stock-based compensation Reserves and accruals Other net Total deferred tax assets Valuation allowance Net deferred tax assets $ — $ — Based on the weight of available evidence, management has established a valuation allowance for all of the deferred tax assets as it is more likely than not that the deferred tax assets will not be realized. The net change in the valuation allowance was ($3.2) million in 2016. At December 31, 2016, the Company had approximately $136.8 million, $104.1 million and $7.5 million of net operating loss carryforwards for federal, state and foreign purposes, respectively, available to offset future taxable income. The federal and state net operating loss carryforwards begin to expire in 2018 and 2016, respectively. The tax losses in foreign jurisdictions, if not utilized sooner, will begin to expire no earlier than 2023. At December 31, 2016, the Company had federal and state research and development credit carryforwards of $5.9 million and $6.0 million, respectively, which begin to expire in 2021 for federal purposes and carry over indefinitely for state purposes. Utilization of the net operating loss and tax credit carryforwards will be subject to annual limitations under Sections 382 and 383 of the Internal Revenue Code of 1986 and similar state provisions due to several ownership changes that have occurred previously or that could occur in the future. These ownership changes will limit the amount of net operating loss and tax credit carryforwards and other deferred tax assets that can be utilized to offset future taxable income and tax. In general, all ownership changes as defined by Section 382 result from transactions increasing ownership of certain stockholders in the stock of the Company by more than 50 percentage points over a three‑year period. An analysis was performed by the Company which indicated that several ownership changes have occurred in previous years which created annual limitations on the Company’s ability to utilize net operating loss and tax credit carryforwards. Such limitations will result in approximately $0.2 million of tax benefits related to net operating loss and tax credit carryforwards that will expire unused. Accordingly, the related net operating loss and tax credit carryforwards have been removed from deferred tax assets accompanied by a corresponding reduction in the valuation allowance. Due to the existence of the valuation allowance, limitations created by future ownership changes, if any, will not impact the Company’s effective tax rate. The Company considers all earnings and profits of its foreign subsidiaries to be indefinitely reinvested. Due to losses incurred, there are no unrecorded income taxes associated with unrepatriated foreign earnings as of December 31, 2016. A reconciliation of the beginning and ending amount of gross unrecognized tax benefits for 2016, 2015 and 2014, excluding interest and penalties, is as follows (in thousands): December 31, Balance at beginning of the year $ $ $ Reductions for tax positions—prior years Additions for tax positions—current year Balance at end of the year $ $ $ As of December 31, 2016, there would be no impact on the effective tax rate if the uncertain tax benefits were recognized. The Company’s policy is to recognize interest expense and penalties related to income tax matters as a component of income tax expense. There was no accrued interest and penalties associated with uncertain tax positions as of December 31, 2016 and 2015. It is not anticipated that there will be a significant change in the unrecognized tax benefits over the next 12 months. Due to the Company’s net operating loss carryforwards, its federal, state and foreign income tax returns are open to examination by the Internal Revenue Service and state jurisdictions for all years since inception.

Employee Benefits

Employee Benefits	12 Months Ended
	Dec. 31, 2016
Employee Benefits
Employee Benefits	9. The Company sponsors a defined contribution plan pursuant to section 401(k) of the United States Internal Revenue Code that allows participating employees to contribute up to 100% of their salary, to an annual maximum of $18,000 in 2016 and 2015 ($24,000 in 2016 and 2015 for employees over the age of 50). Through December 31, 2016, the Company has only made “qualified nonelective contributions” to maintain compliance with IRS regulations. No plan contributions were made by the Company in 2016, 2015 and 2014. Beginning in 2017, the Company will contribute a $0.50 match for every $1.00 contributed by a participating employee up to 6%, with such Company contributions becoming vested when participating employees reach the 3-year anniversary from their date of hire, giving credit for past service.

Commitments and Contingencies

Commitments and Contingencies	12 Months Ended
	Dec. 31, 2016
Commitments and Contingencies
Commitments and Contingencies	10. The Company, from time to time, is involved in legal proceedings or regulatory encounters or other matters in the ordinary course of business that could result in unasserted or asserted claims or litigation. Management is not aware of any legal proceedings where the likelihood of a loss contingency is reasonably possible and the amount or range of reasonably possible losses is material to the Company’s results of operations, financial condition or cash flows. Operating leases The Company leases its main headquarters and manufacturing facility and facilities for its foreign subsidiaries. Certain of the Company’s leases contain renewal options, rent escalation clauses, and/or landlord incentives. Rent expense for noncancelable operating leases with scheduled rent increases and/or landlord incentives is recognized on a straight-line basis over the lease term beginning with the lease commencement date, or the date the Company takes control of the leased space, whichever is sooner. The excess of straight-line rent expense over scheduled payment amounts and landlord incentives is recorded as a deferred rent liability. In June 2015, the Company entered into a sublease for an approximately 37,700 square foot facility located in San Clemente, California effective September 1, 2015, and a five‑year direct lease for the facility that was effective January 1, 2017. In September 2016, the Company relocated its corporate headquarters and a majority of its manufacturing operations to this facility. Until this facility receives all final regulatory approvals, some manufacturing operations relating primarily to products sold outside of the United States will remain at the former Laguna Hills, California location, pursuant to a sublease of that space through March 2017. Once the Company receives all final regulatory approvals, all manufacturing operations will be consolidated to the San Clemente, California location. Rent under the direct lease began on January 1, 2017 at approximately $42,000 per month, with rent for the second and third months abated. The annual rent payments increase beginning on January 1, 2018 at percentages ranging from 2.5% to 3.5%. The direct lease agreement contains an option to extend the lease for up to two additional three-year periods at market rates. The direct lease landlord agreed to provide the Company with a tenant improvement allowance on January 1, 2017 in the amount of the cost of any leasehold improvements, not to exceed $264,000. The Company’s foreign subsidiaries lease office space totaling less than 2,000 square feet. The Company recorded deferred rent of $219,000 and $149,000 as of December 31, 2016 and 2015, respectively, in conjunction with its facilities lease agreements. Rent expense was $1.1 million, $0.6 million and $0.3 million for the years ended December 31, 2016, 2015 and 2014, respectively. Future minimum payments under the aforementioned noncancelable operating leases for each of the five succeeding years are as follows (in thousands): 2017 $ 2018 2019 2020 2021 Thereafter — $ Purchase commitment As of December 31, 2016, the Company had noncancelable, firm purchase commitments with certain vendors totaling approximately $3.7 million, due within one year. There are no material purchase commitments due beyond one year. Regents of the University of California On December 30, 2014, the Company executed an agreement (the UC Agreement) with the Regents of the University of California (the University) to correct inventorship in connection with a group of the Company’s U.S. patents (the Patent Rights) and to obtain from the University a covenant that it did not and would not claim any right or title to the Patent Rights and will not challenge or assist any others in challenging the Patent Rights. In connection with the Agreement, Glaukos paid the University the sum of $2.7 million in five payments during 2015, and, beginning with sales on or after January 1, 2015, is required to pay a low single‑digit percentage of worldwide net sales of certain current and future products, including the Company’s iStent products, with a required minimum annual payment of $500,000. This ongoing product payment terminates on the date that the last of the Patent Rights expires, which is currently expected to be in 2022. In 2016 and 2015, the Company recorded approximately $2.8 million and $1.8 million in cost of sales respectively, in connection with the product payment obligation. Under the terms of the UC Agreement, the payments comprising the $2.7 million obligation were due within 60 days of the IPO, and, accordingly, the Company paid the remaining balance due of $1.8 million prior to August 29, 2015.

Variable Interest Entity

Variable Interest Entity	12 Months Ended
	Dec. 31, 2016
Variable Interest Entity
Variable Interest Entity	11. In October 2009, the Company formed a wholly‑owned subsidiary, DOSE Medical Corporation and in April 2010, the Company distributed all of its shares of common stock of DOSE via a stock dividend to the Company’s stockholders of record as of the close of business on March 31, 2010. Since its formation, the Company had provided DOSE with a small number of leased employees, management services and space, all of which had been charged to DOSE and pursuant to written agreements between the parties. Additionally, the Company had provided DOSE the cash required to fund its operations that, together with accrued interest and charges for the aforementioned services, the Company had recorded in an intercompany receivable account. Up until the transaction on June 30, 2015 described below, the Company had accounted for DOSE as a variable interest entity in which it had a variable interest in all reporting periods since the formation of DOSE. Accordingly, the Company’s consolidated financial statements include the accounts of DOSE, with all intercompany balances eliminated and with the deficit balance of DOSE’s net assets reflected as noncontrolling interest, up to but excluding June 30, 2015. On June 30, 2015, the Company completed a transaction initially executed in July 2014, the closing of which was contingent upon the successful completion of an IPO. Pursuant to the terms of the asset purchase agreement, the Company acquired from DOSE certain assets, including the iDose product line, in exchange for payment of $15.0 million in cash and the elimination of the $10.9 million intercompany receivable owed by DOSE to the Company as of the closing date. In addition to the asset purchase agreement, the parties agreed to an amended and restated patent license agreement and an amended and restated transition services agreement that provides for limited support from the Company to DOSE for a period of up to three years. Either party can terminate the transition services agreement upon adequate written notice. Two members of the Company’s board of directors currently serve on the board of directors of DOSE. The Company reconsidered its relationship with DOSE as a result of the transaction and has determined that the Company is no longer considered to be the primary beneficiary with the power to direct operations and the right to receive benefits/absorb losses of DOSE; therefore, upon the close of the transaction, the Company derecognized DOSE and will no longer consider it a consolidated entity in its financial statements. Accordingly, in the three months ended June 30, 2015, the Company recorded a charge to other expense in the amount of $25.7 million to reflect the deconsolidation of DOSE’ non‑glaucoma related assets and noncontrolling interest. Consolidation of DOSE’s results of operations included the following (in thousands): Year ended December 31, Selling, general & administrative $ — $ $ Research and development — Interest expense — Net loss of DOSE $ — $ $ Consolidation of DOSE’s cash flows included the following (in thousands): Year ended December 31, Cash used in operating activities $ — $ $ Cash used in investing activities — Cash provided by financing activities — (Decrease) increase in cash and cash equivalents of DOSE $ — $ $

Business Segment Information

Business Segment Information	12 Months Ended
	Dec. 31, 2016
Business Segment Information
Business Segment Information	12. Operating segments are identified as components of an enterprise about which segment discrete financial information is available for evaluation by the chief operating decision maker in making decisions regarding resource allocation and assessing performance. The Company operates its business on the basis of one reportable segment—ophthalmic medical devices. Year ended December 31, Geographic net sales information (in thousands) United States $ $ $ International Total net sales $ $ $ Property and equipment, net Depreciation and amortization Capital expenditures As of December 31, Year ended December 31, Year ended December 31, United States $ $ $ $ $ $ $ $ $ International Total $ $ $ $ $ $ $ $ $

Selected Quarterly Financial In

Selected Quarterly Financial Information (Unaudited)	12 Months Ended
	Dec. 31, 2016
Selected Quarterly Financial Information (Unaudited)
Selected Quarterly Financial Information (Unaudited)	13. Three months ended March 31, June 30, September 30, December 31, (in thousands, except per share amounts) Net sales $ $ $ $ Cost of sales Gross profit Operating expenses: Selling, general and administrative Research and development Total operating expenses Income from operations Total other income (expense), net Provision for income taxes — — Net income $ $ $ $ Net income per share (1) : Basic $ $ $ $ Diluted $ $ $ $ Three months ended March 31, June 30, September 30, December 31, (in thousands, except per share amounts) Net sales $ $ $ $ Cost of sales Gross profit Operating expenses: Selling, general and administrative Research and development Total operating expenses Loss from operations Loss on deconsolidation of DOSE — — — Total other expense, net Provision for income taxes — — — Net loss $ $ $ $ Net loss attributable to Glaukos Corporation $ $ $ $ Net loss per share, basic and diluted, attributable to Glaukos Corporation stockholders(1) Basic $ $ $ $ Diluted $ $ $ $ (1) Net income or loss per share is computed independently for each of the quarters presented. Therefore, the sum of the quarterly per-share amounts will not necessarily equal the annual per share amount.

Subsequent Events

Subsequent Events	12 Months Ended
	Dec. 31, 2016
Subsequent Events
Subsequent Events	14. Subsequent events In January 2017, the Company entered into an additional lease for an approximately 39,300 square foot facility located adjacent to our San Clemente, California corporate headquarters. The new lease will become effective April 1, 2017 and expire on December 31, 2021 and will not have a material effect on the Company’s consolidated financial statements.

Summary of Significant Accoun24

Summary of Significant Accounting Policies (Policies)	12 Months Ended
	Dec. 31, 2016
Summary of Significant Accounting Policies
Basis of Presentation	Basis of presentation The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (GAAP).
Use of Estimates	Use of estimates The preparation of the financial statements in conformity with GAAP requires management to make informed estimates and assumptions that affect the reported amounts in the financial statements and accompanying notes. Actual results could differ materially from those estimates and assumptions. Management considers many factors in selecting appropriate financial accounting policies and controls and in developing the estimates and assumptions that are used in the preparation of these financial statements. Management must apply significant judgment in this process. In addition, other factors may affect estimates, including expected business and operational changes, sensitivity and volatility associated with the assumptions used in developing estimates, and whether historical trends are expected to be representative of future trends. The estimation process often may yield a range of potentially reasonable estimates of the ultimate future outcomes, and management must select an amount that falls within that range of reasonable estimates. The most significant estimates in the accompanying consolidated financial statements relate to revenue recognition, inventory reserves and stock‑based compensation expense. Although these estimates are based on the Company’s knowledge of current events and actions it may undertake in the future, this process may result in actual results differing materially from those estimated amounts used in the preparation of the financial statements.
Foreign Currency Translation	Foreign currency translation The accompanying consolidated financial statements are presented in U.S. dollars. The Company considers the local currency to be the functional currency for its international subsidiaries. Accordingly, their assets and liabilities are translated into U.S. dollars using the exchange rate in effect on the balance sheet date. Revenues and expenses are translated at average exchange rates prevailing throughout the periods presented. Currency translation adjustments arising from period to period are charged or credited to accumulated other comprehensive income (loss) in stockholders’ equity. For the years ended December 31, 2016, 2015 and 2014, the Company reported income from foreign currency translation adjustments of approximately $542,000, $155,000 and $42,000, respectively. Realized gains and losses resulting from foreign currency transactions are included in selling, general and administrative expense in the consolidated statements of operations. For the years ended December 31, 2016, 2015 and 2014, the Company reported foreign currency transaction losses of approximately $608,000, $287,000 and $38,000, respectively.
Cash, Cash Equivalents and Short-Term Investments	Cash, cash equivalents and short-term investments The Company invests its excess cash in marketable securities, including money market funds, money market securities, bank certificates of deposit, corporate bonds, and corporate commercial paper and U.S. government agency bonds. For financial reporting purposes, liquid investment instruments purchased with an original maturity of three months or less are considered to be cash equivalents. Cash and cash equivalents are recorded at face value or cost, which approximates fair market value. From time to time, the Company maintains cash balances in excess of amounts insured by the Federal Deposit Insurance Commission (FDIC). Investments are stated at fair value as determined by quoted market prices. Investments are considered available‑for‑sale and, accordingly, unrealized gains and losses are included in accumulated other comprehensive income (loss) within stockholders’ equity. The Company’s entire investment portfolio, except for restricted cash, is considered to be available for use in current operations and, accordingly, all such investments are stated at fair value using quoted market prices and classified as current assets, although the stated maturity of individual investments may be one year or more beyond the balance sheet date. The Company did not have any trading securities or restricted investments at December 31, 2016, 2015 and 2014. Realized gains and losses and declines in value, if any, judged to be other‑than‑temporary on available‑for‑sale securities, are reported in interest income or expense, net. When securities are sold, any associated unrealized gain or loss previously reported as a separate component of stockholders’ equity is reclassified out of stockholders’ equity and recorded in the statements of operations in the period sold using the specific identification method. Accrued interest and dividends are included in interest income. The Company periodically reviews its available‑for‑sale securities for other‑than‑temporary declines in fair value below the cost basis, and whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable.
Concentration of Credit Risk and Significant Customers	Concentration of credit risk and significant customers Financial instruments, which potentially subject the Company to significant concentration of credit risk, consist primarily of cash, cash equivalents, short-term investments and accounts receivable. The Company maintains deposits in federally insured financial institutions in excess of federally insured limits and management believes that the Company is not exposed to significant credit risk due to the financial position of the depository institutions in which those deposits are held. Additionally, the Company has established guidelines regarding investment instruments and their maturities which are designed to maintain preservation of principal and liquidity. The Company believes that the concentration of credit risk in its accounts receivable is mitigated by its credit evaluation process, relatively short collection terms and the level of credit worthiness of its customers. During 2016, 2015 and 2014, none of the Company’s customers accounted for more than 10% of revenues.
Restricted Cash	Restricted cash The Company has a credit card facility with a bank which is collateralized by certificates of deposit maintained at the bank.
Accounts Receivable	Accounts receivable The Company sells its products directly to hospitals, surgery centers and distributors in the U.S. and internationally. The Company periodically assesses the payment performance of these customers and establishes reserves for anticipated losses when necessary, which losses historically have not been significant and have not exceeded management’s estimates. Accounts receivable are recorded at the invoiced amount and do not bear interest. The Company maintains an allowance for doubtful accounts based on historical collection experience and expectations of future collection based on current market conditions. The allowance for doubtful accounts is management’s best estimate of the amount of probable credit losses. Account balances are charged against the allowance when it is probable the receivable will not be recovered. The Company’s allowance for bad debts was approximately $495,000 and $83,000 as of December 31, 2016 and 2015, respectively, and no customers accounted for more than 10% of net accounts receivable as of either date. The Company generally permits returns of product from customers if such product is returned in a timely manner and in good condition. Estimated allowances for sales returns are based upon the Company’s historical patterns of product returns matched against sales, and management’s evaluation of specific factors that may increase the risk of product returns.
Inventory	Inventory Inventory is valued at the lower of cost or market (net realizable value). Cost is determined by the first‑in, first‑out method. Management evaluates inventory for excess quantities and obsolescence and records an allowance to reduce the carrying value of inventory as determined necessary.
Long Lived Assets	Long lived assets Property and equipment is recorded at cost. Depreciation of property and equipment is generally provided using the straight‑line method over the estimated useful lives of the assets, which range from three to five years. Leasehold improvements are amortized over their estimated useful life or the related lease term, whichever is shorter. Maintenance and repairs are expensed as incurred. All long lived assets are reviewed for impairment in value when changes in circumstances dictate, based upon undiscounted future operating cash flows, and appropriate losses are recognized and reflected in current earnings to the extent the carrying amount of an asset exceeds its estimated fair value, determined by the use of appraisals, discounted cash flow analyses or comparable fair values of similar assets. The Company recorded $14,000 of impairment charges during 2016 and none in 2015.
Intangible Assets	Intangible assets Intangible assets are recorded at cost and are amortized over the estimated useful life. Intangible assets in the accompanying balance sheets are currently comprised of the cost of the Company’s buyout of a royalty payment obligation and the value of non-compete agreements entered into in 2015 with two former international distributors. See Note 5.
Fair Value Measurements	Fair value measurements Assets and liabilities are measured using quoted prices in active markets and total fair value is the published market price per unit multiplied by the number of units held without consideration of transaction costs. Assets and liabilities that are measured using significant other observable inputs are valued by reference to similar assets or liabilities, adjusted for contract restrictions and other terms specific to that asset or liability. For these items, a significant portion of fair value is derived by reference to quoted prices of similar assets or liabilities in active markets. For all remaining assets and liabilities, fair value is derived using a fair value model, such as a Black‑Scholes model.
Fair Value of Financial Instruments	Fair value of financial instruments The carrying amounts of cash equivalents, accounts receivable, accounts payable, and accrued liabilities are considered to be representative of their respective fair values because of the short‑term nature of those instruments. The valuation of assets and liabilities are subject to fair value measurements using a three‑tiered approach and fair value measurements are classified and disclosed by the Company in one of the following three categories: Level 1: Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities; Level 2: Quoted prices for similar assets and liabilities in active markets, quoted prices in markets that are not active, or inputs which are observable, either directly or indirectly, for substantially the full term of the asset or liability; and Level 3: Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (i.e., supported by little or no market activity).
Revenue Recognition	Revenue recognition The Company recognizes revenue from product sales when the following criteria are met: goods are shipped, title and risk of loss has transferred to its customers, persuasive evidence of an arrangement exists and collectability is reasonably assured. Persuasive evidence of an arrangement exists when there is a contractual arrangement in place with the customer. Delivery has occurred when a product is shipped. If persuasive evidence of an arrangement exists and delivery has occurred, the Company determines whether the invoiced amount is fixed or determinable and collectability of the invoiced amount is reasonably assured. The Company assesses whether the invoiced amount is fixed or determinable based on the existing arrangement with the customer, including whether the Company has sufficient history with a customer to reliably estimate the customer’s payment patterns. The Company assesses collectability by evaluating historical cash receipts and individual customer outstanding balances. To the extent all criteria set forth above are not satisfied at the time of shipment, revenue is recognized when cash is received from the customer. Customers are not granted specific rights of return; however, the Company may permit returns of product from customers if such product is returned in a timely manner and in good condition. The Company provides a warranty on its products for one year from the date of shipment, and any product found to be defective or out of specification will be replaced at no charge during the warranty period. Estimated allowances for sales returns and warranty replacements are recorded at the time of sale of the product and are estimated based upon the historical patterns of product returns matched against sales, and an evaluation of specific factors that may increase the risk of product returns. Product returns and warranty replacements to date have been consistent with amounts reserved or accrued and have not been significant.
Shipping and Handling Costs	Shipping and handling costs All shipping and handling costs are expensed as incurred and are charged to general and administrative expense. Charges to customers for shipping and handling are credited to general and administrative expense.
Advertising Costs	Advertising costs All advertising costs are expensed as incurred. Advertising costs incurred during the years ended December 31, 2016, 2015 and 2014 were approximately $1.6 million, $0.8 million and $0.4 million, respectively.
Income Taxes	Income taxes Income taxes are accounted for using an asset and liability approach that requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of temporary differences between the financial reporting basis and the tax basis of the Company’s assets and liabilities at the applicable tax rates, along with net operating loss and tax credit carryovers. The Company records a valuation allowance against its deferred tax assets to reduce the net carrying value to an amount that it believes is more likely than not to be realized. Management has considered estimated taxable income and ongoing prudent and feasible tax planning strategies in assessing the amount of the valuation allowance. Based upon the weight of available evidence, which includes the Company’s historical operating performance and limited potential to utilize tax credit carryforwards, the Company has determined that total deferred tax assets should be fully offset by a valuation allowance. When the Company establishes or reduces the valuation allowance against its deferred tax assets, its provision for income taxes will increase or decrease, respectively, in the period such determination is made. The Company is required to file federal and state income tax returns in the United States and various other state jurisdictions. The preparation of these state income tax returns requires the company to interpret the applicable tax laws and regulations in effect in such jurisdictions, which could affect the amount of tax paid by us. Additionally, the Company follows an accounting standard addressing the accounting for uncertainty in income taxes that prescribes rules for recognition, measurement, and classification in the financial statements of tax positions taken or expected to be taken in a tax return.
Research and Development Expenses	Research and development expenses Major components of research and development expense include personnel costs, preclinical studies, clinical trials and related clinical product manufacturing, materials and supplies, and fees paid to consultants. Research and development costs are expensed as goods are received or services are rendered. Costs to acquire technologies to be used in research and development that have not reached technological feasibility and have no alternative future use are also expensed as incurred. At each financial reporting date, the Company accrues the estimated costs of clinical study activities performed by third party clinical sites with whom the Company has agreements that provide for fees based upon the quantities of subjects enrolled and clinical evaluation visits that occur over the life of the study. The cost estimates are determined based upon a review of the agreements and data collected by internal and external clinical personnel as to the status of enrollment and subject visits, and are based upon the facts and circumstances known to the Company at each financial reporting date. If the actual performance of activities varies from the assumptions used in the cost estimates, the accruals are adjusted accordingly. There have been no material adjustments to the Company’s prior period accrued estimates for clinical trial activities through December 31, 2016.
Stock-Based Compensation	Stock‑based compensation The Company recognizes compensation expense for all stock‑based awards granted to employees and nonemployees, including members of its Board of Directors. The fair value of stock‑based awards made to employees is estimated at the grant date using the Black‑Scholes option‑pricing model, and the portion that is ultimately expected to vest is recognized as compensation cost over the requisite service period using the straight‑line method. The determination of the fair value‑based measurement of stock options on the date of grant using an option pricing model is affected by the determination of the fair value of the underlying stock as well as assumptions regarding a number of highly complex and subjective variables. These variables include, but are not limited to, the Company’s stock price volatility over the expected term of the grants, and actual and projected employee stock option exercise behaviors. In the future, as additional empirical evidence regarding these estimates becomes available, the Company may change or refine its approach of deriving them, and these changes could impact the fair value‑based measurement of stock options granted in the future. Changes in the fair value‑based measurement of stock awards could materially impact the Company’s operating results. The fair values of stock‑based awards made to nonemployees are remeasured at each reporting period using the Black‑Scholes option‑pricing model. Compensation expense for these stock‑based awards is determined by applying the remeasured fair values to the shares that have vested during a period.
Comprehensive Income (Loss)	Comprehensive income (loss) All components of comprehensive income (loss), including net income (loss), are reported in the financial statements in the period in which they are recognized. Comprehensive income (loss) is defined as the change in equity during a period from transactions and other events and circumstances from non‑owner sources, including unrealized gains and losses on marketable securities and foreign currency translation adjustments.
Net Income (Loss) Per Share	Net income (loss) per share Basic net income (loss) per share is calculated by dividing the net income (loss) by the weighted average number of common shares that were outstanding for the period, without consideration for common stock equivalents. Diluted net income (loss) per share is calculated by dividing the net income (loss) by the sum of the weighted average number of dilutive common share equivalents outstanding for the period determined using the treasury stock method. Common stock equivalents are comprised of convertible preferred stock, stock warrants, and stock options outstanding under the Company’s stock option plans. Potentially dilutive securities not included in the calculation of diluted net income (loss) per share attributable to common stockholders because to do so would be anti‑dilutive were as follows (in common stock equivalent shares, in thousands): As of December 31, Stock options outstanding Employee stock purchase plan — — Common stock warrants outstanding — — Convertible preferred stock outstanding — — Preferred stock warrants outstanding — —
Recent Accounting Pronouncements	Recent accounting pronouncements In May 2014, the Financial Accounting Standards Board (FASB) issued guidance in ASU 2014-09 which was codified in Accounting Standards Codification (ASC) 606, Revenue Recognition – Revenue from Contracts with Customers (ASC 606). ASC 606 provides a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers, and is principles-based, such that revenue is recognized to depict the transfer of goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. ASU 2015-14 deferred the effective date of ASC 606 to annual reporting periods beginning after December 15, 2017 (including interim periods within those periods) and while early adoption is permitted, the Company plans to adopt ASC 606 on January 1, 2018. Companies are required to apply ASC 606 retrospectively; however, companies may use either a full retrospective or a modified retrospective approach when adopting the standard. The Company intends to adopt using the modified retrospective approach, with a cumulative catch-up adjustment to the opening balance sheet of retained earnings at the effective date. The Company has performed a preliminary analysis and does not believe adoption of the standard will have a material impact on its consolidated financial statements. In the preliminary analysis, the Company has concluded it generally has one performance obligation, the transaction price is not impacted by any variable consideration or other factors noted in ASC 606, and the Company’s performance obligations are generally satisfied when products are shipped. The Company will continue to review variable consideration, potential disclosures, and the method of adoption in order to complete the evaluation of the impact on the consolidated financial statements. In addition, the Company will continue to monitor additional changes, modifications, clarifications or interpretations undertaken by the FASB, which may impact the current conclusions. In June 2014, the FASB issued an ASU that requires a performance target that affects vesting of a share‑based payment award and that could be achieved after the requisite service period to be treated as a performance condition. As such, the performance target should not be reflected in estimating the grant date fair value of the award. Compensation cost should be recognized over the required service period if it is probable that the performance target will be achieved. This guidance was effective for fiscal years beginning after December 15, 2015, which was the Company’s year ended December 31, 2016. Adoption of the guidance did not have a material impact on the Company’s consolidated financial statements. In July 2015, the FASB issued ASU 2015‑11, Inventory (Topic 330), Simplifying the Measurement of Inventory , which changes the measurement principle for inventory from the lower of cost or market to the lower of cost and net realizable value. ASU 2015‑11 defines net realizable value as estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. The new guidance was effective for the Company on January 1, 2016 and the adoption had no impact on the Company’s consolidated financial statements. In November 2015, the FASB issued guidance on balance sheet classification of deferred taxes. Previously, GAAP required an entity to separate deferred income tax liabilities and assets into current and noncurrent amounts in a classified statement of financial position. To simplify the presentation of deferred income taxes, the new guidance requires that deferred tax liabilities and assets be classified as noncurrent in a classified statement of financial position. The current requirement that deferred tax liabilities and assets of a tax-paying component of an entity be offset and presented as a single amount is not affected by this new guidance. The new guidance is effective for fiscal years beginning after December 15, 2016, and interim periods within those annual periods. Earlier application is permitted for all entities as of the beginning of an interim or annual reporting period. For the year ended December 31, 2015, the Company elected to early adopt this update and has presented all its deferred tax assets and liabilities as non-current for the years ended December 31, 2016 and 2015. The Company has applied the Standard on a prospective basis. Therefore, the classifications of deferred tax assets and liabilities in periods prior to the year ended December 31, 2015 have not been changed from the original presentation. In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842). The ASU requires management to recognize almost all leases with a term greater than one year as a right-of-use asset and corresponding liability, measured at the present value of the lease payments. The new standard must be adopted using the modified retrospective approach and will be effective for the Company starting in the first quarter of 2019. Early adoption is permitted. The Company is currently evaluating the impact this guidance will have on its consolidated financial statements, however, the Company anticipates recognition of additional assets and corresponding liabilities on its consolidated financial statements. In March 2016, the FASB issued ASU No. 2016-09 , Compensation – Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting (ASU 2016-09), which modifies certain aspects of the accounting for share-based payment transactions, including income taxes, classification of awards, and classification in the statement of cash flows. The amendments are intended to improve the accounting for employee share-based payments and affect all organizations that issue share-based payment awards to their employees. Several aspects of the accounting for share-based payment award transactions are simplified, including: (a) income tax consequences; (b) classification of awards as either equity or liabilities; and (c) classification on the statement of cash flows. The amendments are effective for annual periods beginning after December 15, 2016, and interim periods within those annual periods and the Company will adopt ASU 2016-09 in its first quarter 2017. As of December 31, 2016, the Company has excess tax benefits related to share-based compensation. As a result of the adoption of ASU 2016-09 on January 1, 2017, excess tax benefits of $13.1 million will be recorded to our net operating loss carryover resulting in an increase in our deferred tax assets and associated valuation allowance. In November 2016, the FASB issued ASU No. 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash (ASC 2016-18), which enhances and clarifies the guidance on the classification and presentation of restricted cash in the statement of cash flows. ASU 2016-18 will be effective for the Company starting in the first quarter of 2018. Currently, the Company's restricted cash balance is not significant and the Company is currently evaluating the impact this guidance will have on its consolidated financial statements. In January 2017, the FASB issued ASU No. 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business (ASU 2017-01), clarifying the definition of a business. The amendments are intended to help companies evaluate whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. When substantially all of the fair value of gross assets acquired is concentrated in a single asset (or a group of similar assets), the assets acquired would not represent a business. This introduces an initial required screening that, if met, eliminates the need for further assessment. To be considered a business, an acquisition would have to include an input and a substantive process that together significantly contribute to the ability to create outputs. To be a business without outputs, there will need to be an organized workforce. The ASU also narrows the definition of the term “outputs” to be consistent with how it is described in Topic 606, Revenue from Contracts with Customers. The amendments are effective for annual periods beginning after December 15, 2017, including interim periods within those periods with early adoption permitted. The Company is currently evaluating the impact this guidance will have on its consolidated financial statements.

Summary of Significant Accoun25

Summary of Significant Accounting Policies (Tables)	12 Months Ended
	Dec. 31, 2016
Summary of Significant Accounting Policies
Schedule of potentially dilutive securities not included in the calculation of diluted net loss per share attributable to common stockholders	Potentially dilutive securities not included in the calculation of diluted net income (loss) per share attributable to common stockholders because to do so would be anti‑dilutive were as follows (in common stock equivalent shares, in thousands): As of December 31, Stock options outstanding Employee stock purchase plan — — Common stock warrants outstanding — — Convertible preferred stock outstanding — — Preferred stock warrants outstanding — —

Balance Sheet Details (Tables)

Balance Sheet Details (Tables)	12 Months Ended
	Dec. 31, 2016
Balance Sheet Details
Schedule of short-term investments	Short-term investments consisted of the following (in thousands): At December 31, 2016 Maturity Amortized cost Unrealized Unrealized Estimated (in years) or cost gains losses fair value Government agency bonds 1-3 $ $ $ $ Bank certificates of deposit less than 2 Commercial paper less than 1 Corporate notes less than 3 Asset-backed securities less than 2 — Total $ $ $ $ At December 31, 2015 Maturity Amortized cost Unrealized Unrealized Estimated (in years) or cost gains losses fair value U.S. government agency bonds 1-3 $ $ — $ $ Commercial paper less than 1 — Corporate notes 1-3 — Asset-backed securities 1-3 — Total $ $ — $ $
Schedule of accounts receivable, net	Accounts receivable consisted of the following (in thousands): December 31, Accounts receivable $ $ Less allowance for doubtful accounts $ $
Schedule of inventory	Inventory consisted of the following (in thousands): December 31, Finished goods $ $ Work in process Raw material $ $
Schedule of property and equipment, net	Property and equipment consisted of the following (in thousands): December 31, Buildings $ $ — Equipment Furniture and fixtures Leasehold improvements Computer equipment and software Construction in progress Less accumulated depreciation and amortization $ $
Schedule of accrued liabilities	Accrued liabilities consisted of the following (in thousands): December 31, Accrued contract payments (see Note 10) $ $ Accrued sales commissions Accrued clinical study payments Accrued bonuses Accrued vacation benefits Other accrued liabilities $ $

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	12 Months Ended
	Dec. 31, 2016
Fair Value Measurements
Schedule of the Company's financial assets and financial liabilities measured at fair value on a recurring basis	At December 31, 2016 Significant Quoted prices in other Significant active markets for observable unobservable December 31, identical assets inputs inputs (Level 1) (Level 2) (Level 3) Assets Money market funds (i) $ $ $ — $ — U.S. government agency bonds (ii) — — Bank certificates of deposit (ii) — — Commercial paper (ii) — — Corporate notes (ii) — — Asset-backed securities (ii) — — Total assets $ $ $ $ — (i) Included in cash and cash equivalents with a maturity of three months or less from date of purchase on the consolidated balance sheets. (ii) Included in short-term investments on the consolidated balance sheets. At December 31, 2015 Significant Quoted prices in other Significant active markets for observable unobservable December 31, identical assets inputs inputs (Level 1) (Level 2) (Level 3) Assets Money market funds (i) $ $ $ — $ — U.S. government agency bonds (ii) — — Commercial paper (ii) — — Corporate notes (ii) — — Asset-backed securities (ii) — — Total assets $ $ $ $ — Liabilities Stock warrant liability $ $ — $ — $ Total liabilities $ $ — $ — $
Reconciliation of liabilities measured at fair value using level 3 significant unobservable inputs (Level 3) on a recurring basis	Warrant liability Balance at December 31, 2014 $ Issuance of common stock warrants Change in the fair value of stock warrants Issuance of Series D convertible preferred stock in connection with exercises of preferred stock warrants Issuance of common stock in connection with exercise of common stock warrant Balance at December 31, 2015 Change in the fair value of stock warrants Issuance of common stock in connection with exercise of common stock warrant Balance at December 31, 2016 $ —

Long-Term Debt and Intangible28

Long-Term Debt and Intangible Assets (Tables)	12 Months Ended
	Dec. 31, 2016
Long-Term Debt and Intangible Assets
Schedule of the Company’s debt balances	The Company’s debt balances, including current portions, were as follows (in thousands): December 31, Notes payable $ — $ Total debt — Less current portion of long-term debt — Total long-term debt $ — $
Schedule reflecting the composition of intangible assets, net	The following reflects the composition of intangible assets, net (in thousands): December 31, December 31, GMP royalty buyout $ $ Non-compete agreements Accumulated amortization Total $ $ Weighted average amortization period (in months)

Convertible Preferred Stock a29

Convertible Preferred Stock and Stockholders' Equity (Tables)	12 Months Ended
	Dec. 31, 2016
Convertible Preferred Stock
Convertible Preferred Stock
Schedule reflecting the composition of convertible preferred stock as of December 31, 2014	The following reflects the composition of convertible preferred stock as of December 31, 2014 (in thousands, except per share amounts): Series A convertible preferred stock, $0.001 par value; 3,000 shares authorized and 1,200 shares issued and outstanding at December 31, 2014; liquidation preference of $3,000 at December 31, 2014 $ Series B convertible preferred stock, $0.001 par value; 5,805 shares authorized and 2,322 shares issued and outstanding at December 31, 2014; liquidation preference of $12,538 at December 31, 2014 Series C convertible preferred stock, $0.001 par value; 14,750 shares authorized and 5,819 shares issued and outstanding at December 31, 2014 ; liquidation preference of $40,731 at December 31, 2014 Series D convertible preferred stock, $0.001 par value; 13,844 shares authorized and 5,410 shares issued and outstanding at December 31, 2014; liquidation preference of $41,387 at December 31, 2014 Series E convertible preferred stock, $0.001 par value; 8,754 shares authorized and 3,501 shares issued and outstanding at December 31, 2014; liquidation preference of $29,500 at December 31, 2014 Series F convertible preferred stock, $0.001 par value; 8,474 shares authorized and 3,390 shares issued and outstanding at December 31, 2014; liquidation preference of $30,000 at December 31, 2014 Total $

Stock-Based Compensation (Table

Stock-Based Compensation (Tables)	12 Months Ended
	Dec. 31, 2016
Stock-Based Compensation.
Schedule summarizing stock option activity under the 2001 Stock Plan, 2011 Stock Plan and 2015 Stock Plan	The following table summarizes stock option activity under the 2001 Stock Plan, 2011 Stock Plan and 2015 Stock Plan (in thousands): Number of Weighted- shares Weighted- average Aggregate underlying average remaining intrinsic options exercise price contractual value (in (in thousands) per share life (in years) thousands) Outstanding at December 31, 2013 $ $ Granted Exercised Canceled/forfeited/expired Outstanding at December 31, 2014 $ $ Granted Exercised Canceled/forfeited/expired Outstanding at December 31, 2015 $ $ Granted Exercised Canceled/forfeited/expired Outstanding at December 31, 2016 $ $ Vested and expected to vest at December 31, 2016 $ $ Exercisable at December 31, 2016 $ $
Schedule summarizing the allocation of stock-based compensation	The following table summarizes the allocation of stock‑based compensation in the accompanying consolidated statements of operations (in thousands): Year ended December 31, Cost of sales $ $ $ Selling, general & administrative Research and development Total $ $ $
Schedule of the weighted-average assumptions used to estimate the fair value of options granted to employees	Year ended December 31, Risk-free interest rate % % % Expected dividend yield % % % Expected volatility % % % Expected term (in years)
Schedule of Common stock reserved for issuance	Common stock reserved for issuance is as follows (in thousands): As of December 31, Stock options issued and outstanding—2001 Plan Stock options issued and outstanding—2011 Plan Stock options issued and outstanding—2015 Plan Employee stock purchase plan Authorized for future stock awards or option grants

Income Taxes (Tables)

Income Taxes (Tables)	12 Months Ended
	Dec. 31, 2016
Income Taxes
Schedule of United States and foreign loss before income taxes	United States and foreign income (loss) before income taxes was as follows (in thousands): Year ended December 31, United States $ $ $ Foreign Total $ $ $
Schedule of the provision for income taxes	The provision for income taxes was as follows (in thousands): December 31, Current: Federal $ $ — $ — State Foreign — — — Deferred: Federal — — — State — — — Foreign — — — — — — Provision for income taxes $ $ $
Schedule of reconciliations of the U.S. federal statutory tax rate to the combined effective tax rate	Year ended December 31, Statutory rate of tax expense % % % State income taxes, net of federal benefit Permanent and other items Deconsolidation of DOSE Nondeductible offering costs Research credits Uncertain tax positions Change in tax rate Valuation allowance Effective tax rate % % %
Schedule of significant components of the Company's deferred tax assets	Significant components of the Company’s net deferred tax assets at December 31, 2016 and 2015 are as follows (in thousands): December 31, Deferred tax assets: Net operating loss carryforwards $ $ Tax credits Depreciation and amortization Stock-based compensation Reserves and accruals Other net Total deferred tax assets Valuation allowance Net deferred tax assets $ — $ —
Schedule of reconciliation of the beginning and ending amount of gross unrecognized tax benefits, excluding interest and penalties	A reconciliation of the beginning and ending amount of gross unrecognized tax benefits for 2016, 2015 and 2014, excluding interest and penalties, is as follows (in thousands): December 31, Balance at beginning of the year $ $ $ Reductions for tax positions—prior years Additions for tax positions—current year Balance at end of the year $ $ $

Commitments and Contingencies (

Commitments and Contingencies (Tables)	12 Months Ended
	Dec. 31, 2016
Commitments and Contingencies
Schedule of future minimum lease payments under noncancelable operating leases	Future minimum payments under the aforementioned noncancelable operating leases for each of the five succeeding years are as follows (in thousands): 2017 $ 2018 2019 2020 2021 Thereafter — $

Variable Interest Entity (Table

Variable Interest Entity (Tables)	12 Months Ended
	Dec. 31, 2016
Variable Interest Entity
Schedule of DOSE's financial information included in the accompanying financial statements:	Consolidation of DOSE’s results of operations included the following (in thousands): Year ended December 31, Selling, general & administrative $ — $ $ Research and development — Interest expense — Net loss of DOSE $ — $ $ Consolidation of DOSE’s cash flows included the following (in thousands): Year ended December 31, Cash used in operating activities $ — $ $ Cash used in investing activities — Cash provided by financing activities — (Decrease) increase in cash and cash equivalents of DOSE $ — $ $

Business Segment Information (T

Business Segment Information (Tables)	12 Months Ended
	Dec. 31, 2016
Business Segment Information
Schedule of Geographic Net Sales Information	Year ended December 31, Geographic net sales information (in thousands) United States $ $ $ International Total net sales $ $ $
Schedule of Property and Equipment, net, Depreciation and Amortization, and Capital Expenditures by Geographic Area	Property and equipment, net Depreciation and amortization Capital expenditures As of December 31, Year ended December 31, Year ended December 31, United States $ $ $ $ $ $ $ $ $ International Total $ $ $ $ $ $ $ $ $

Selected Quarterly Financial 35

Selected Quarterly Financial Information (Unaudited) (Tables)	12 Months Ended
	Dec. 31, 2016
Selected Quarterly Financial Information (Unaudited)
Schedule of Quarterly Financial information	Three months ended March 31, June 30, September 30, December 31, (in thousands, except per share amounts) Net sales $ $ $ $ Cost of sales Gross profit Operating expenses: Selling, general and administrative Research and development Total operating expenses Income from operations Total other income (expense), net Provision for income taxes — — Net income $ $ $ $ Net income per share (1) : Basic $ $ $ $ Diluted $ $ $ $ Three months ended March 31, June 30, September 30, December 31, (in thousands, except per share amounts) Net sales $ $ $ $ Cost of sales Gross profit Operating expenses: Selling, general and administrative Research and development Total operating expenses Loss from operations Loss on deconsolidation of DOSE — — — Total other expense, net Provision for income taxes — — — Net loss $ $ $ $ Net loss attributable to Glaukos Corporation $ $ $ $ Net loss per share, basic and diluted, attributable to Glaukos Corporation stockholders(1) Basic $ $ $ $ Diluted $ $ $ $ (1) Net income or loss per share is computed independently for each of the quarters presented. Therefore, the sum of the quarterly per-share amounts will not necessarily equal the annual per share amount.

Organization and Basis of Pre36

Organization and Basis of Presentation - Liquidity (Details) - USD ($) $ in Thousands	3 Months Ended				12 Months Ended
	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Organization and Basis of Presentation
Net Income (Loss) Attributable to Parent, Total	$ (2,290)	$ (2,057)	$ (31,928)	$ (966)	$ 4,522	$ (37,241)	$ (12,126)
Cash used in operating activities					12,309	(2,188)	$ (7,107)
Accumulated deficit	$ (196,613)				(192,091)	$ (196,613)
Cash, cash equivalents, and short-term investments					95,800
Net working capital					$ 103,100

Organization and Basis of Pre37

Organization and Basis of Presentation - IPO (Details) - USD ($) $ / shares in Units, $ in Thousands	Jun. 30, 2015	Dec. 31, 2015	Dec. 31, 2015	Jun. 29, 2015
Organization and Basis of Presentation
Proceeds from public offering, net of issuance costs			$ 113,589
Common shares issued upon the conversion of convertible preferred stock (in shares)		21,736,367
Shares outstanding	0
Warrants to Purchase Shares of Series D Convertible Preferred Stock
Organization and Basis of Presentation
Warrants outstanding (in shares)	0
Convertible Preferred Stock
Organization and Basis of Presentation
Common shares issued upon the conversion of convertible preferred stock (in shares)	21,700,000
Shares outstanding	0	0	0	21,736,367
Common Stock
Organization and Basis of Presentation
Shares issued			6,900,000
Common shares issued upon the conversion of convertible preferred stock (in shares)			21,736,000
Common Stock | IPO
Organization and Basis of Presentation
Shares issued	6,900,000
Share price (in dollars per share)	$ 18
Proceeds from public offering, net of issuance costs	$ 113,600
Underwriting commissions	8,700
Stock issuance costs	$ 1,900
Omnibus Incentive Compensation Plan 2015
Organization and Basis of Presentation
Shares reserved for future issuance	4,500,000
Employee Stock Purchase Plan 2015
Organization and Basis of Presentation
Shares reserved for future issuance	450,000

Organization and Basis of Pre38

Organization and Basis of Presentation - DOSE Medical (Details) - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2015
Acquisition of certain DOSE Medical Corporation Assets
Cash payments for the acquisition of certain assets of related party		$ 15,000
DOSE Medical Corporation
Acquisition of certain DOSE Medical Corporation Assets
Cash payments for the acquisition of certain assets of related party	$ 15,000
Maximum period of support under transition services agreement	3 years

Summary of Significant Accoun39

Summary of Significant Accounting Policies - Summary (Details) - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Foreign Currency Translation
Foreign currency translation adjustments	$ 542,000	$ 155,000	$ 42,000
Foreign currency transaction loss	608,000	287,000	38,000
Trading Securities
Trading securities	0	0	0
Accounts Receivable
Allowance for bad debts	495,000	83,000
Long Lived Assets
Long-lived asset impairment	$ 14,000	0
Intangible Assets
Number of international distributors		2
Revenue Recognition
Warranty period from date of shipment	1 year
Advertising Costs
Advertising Costs	$ 1,600,000	$ 800,000	$ 400,000
Minimum
Long Lived Assets
Estimated useful lives of assets	3 years
Maximum
Long Lived Assets
Estimated useful lives of assets	5 years

Summary of Significant Accoun40

Summary of Significant Accounting Policies - Antidilutive Securities (Details) - shares shares in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Anti-dilutive securities
Anti-dilutive securities excluded from computation of earnings per share	1,099	5,796	27,427
Convertible Preferred Stock
Anti-dilutive securities
Anti-dilutive securities excluded from computation of earnings per share			21,642
Preferred Stock Warrants
Anti-dilutive securities
Anti-dilutive securities excluded from computation of earnings per share			128
Stock options
Anti-dilutive securities
Anti-dilutive securities excluded from computation of earnings per share	1,099	5,701	5,657
ESPP
Anti-dilutive securities
Anti-dilutive securities excluded from computation of earnings per share		89
Common Stock Warrants
Anti-dilutive securities
Anti-dilutive securities excluded from computation of earnings per share		6

Summary of Significant Accoun41

Summary of Significant Accounting Policies - Recent Accounting Pronouncements (Details) - USD ($) $ in Thousands	Jan. 01, 2017	Dec. 31, 2016	Dec. 31, 2015
Recent Accounting Pronouncements
Deferred tax assets		$ 72,268	$ 75,434
Deferred tax valuation allowance		$ 72,268	$ 75,434
ASU No. 2016-09 Compensation - Stock Compensation | Forecast
Recent Accounting Pronouncements
Deferred tax assets	$ 13,100
Deferred tax valuation allowance	$ 13,100

Balance Sheet Details - Short-T

Balance Sheet Details - Short-Term Investments (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Short-term investments
Amortized cost	$ 89,328	$ 69,700
Unrealized gains	26
Unrealized losses	(86)	(148)
Estimated fair value	89,268	69,552
U.S. Government agency bonds
Short-term investments
Amortized cost	9,535	5,513
Unrealized gains	2
Unrealized losses	(22)	(10)
Estimated fair value	$ 9,515	$ 5,503
U.S. Government agency bonds | Minimum
Short-term investments
Maturity	1 year	1 year
U.S. Government agency bonds | Maximum
Short-term investments
Maturity	3 years	3 years
Bank certificates of deposit
Short-term investments
Amortized cost	$ 11,101
Unrealized gains	13
Unrealized losses	(1)
Estimated fair value	$ 11,113
Bank certificates of deposit | Maximum
Short-term investments
Maturity	2 years
Commercial paper
Short-term investments
Amortized cost	$ 17,011	$ 12,342
Unrealized gains	1
Unrealized losses	(2)	(2)
Estimated fair value	$ 17,010	$ 12,340
Commercial paper | Maximum
Short-term investments
Maturity	1 year	1 year
Corporate notes
Short-term investments
Amortized cost	$ 45,178	$ 45,051
Unrealized gains	7
Unrealized losses	(61)	(110)
Estimated fair value	$ 45,124	$ 44,941
Corporate notes | Minimum
Short-term investments
Maturity		1 year
Corporate notes | Maximum
Short-term investments
Maturity	3 years	3 years
Asset-backed securities
Short-term investments
Amortized cost	$ 6,503	$ 6,794
Unrealized gains	3
Unrealized losses		(26)
Estimated fair value	$ 6,506	$ 6,768
Asset-backed securities | Minimum
Short-term investments
Maturity		1 year
Asset-backed securities | Maximum
Short-term investments
Maturity	2 years	3 years

Balance Sheet Details - Other (

Balance Sheet Details - Other (Details) - USD ($)	Dec. 31, 2016	Dec. 31, 2015
Accounts Receivable, Net
Accounts receivable	$ 14,800,000	$ 7,632,000
Less allowance for doubtful accounts	(495,000)	(83,000)
Accounts receivable, net	14,305,000	7,549,000
Inventory
Finished goods	2,014,000	953,000
Work in process	2,105,000	1,123,000
Raw materials	2,725,000	2,021,000
Total inventory	6,844,000	4,097,000
Accrued Liabilities
Accrued contract payments (see Note 10)	823,000	504,000
Accrued sales commissions	1,641,000	335,000
Accrued clinical study payments	1,167,000	654,000
Accrued bonuses	6,122,000	3,721,000
Accrued vacation benefits	1,382,000	1,007,000
Other accrued liabilities	2,776,000	1,572,000
Total accrued liabilities	$ 13,911,000	$ 7,793,000

Balance Sheet Details - Propert

Balance Sheet Details - Property and Equipment (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Property and equipment, net
Property and equipment, gross	$ 12,888	$ 6,831
Less accumulated depreciation and amortization	(5,295)	(4,677)
Property and equipment, net	7,593	2,154	$ 1,950
Depreciation and amortization	4,722	4,267	4,231
Buildings
Property and equipment, net
Property and equipment, gross	874
Equipment
Property and equipment, net
Property and equipment, gross	5,342	4,597
Furniture and fixtures
Property and equipment, net
Property and equipment, gross	639	387
Leasehold improvements
Property and equipment, net
Property and equipment, gross	3,474	999
Computer equipment and software
Property and equipment, net
Property and equipment, gross	1,239	836
Construction in progress
Property and equipment, net
Property and equipment, gross	1,320	12
Property, Plant and Equipment
Property and equipment, net
Depreciation and amortization	$ 1,100	$ 800	$ 700

Fair Value Measurements - Fair

Fair Value Measurements - Fair Value Hierarchy (Details) - Fair Value, Measurements, Recurring - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Assets
Total assets	$ 89,348	$ 86,719
Liabilities
Stock warrant liability		105
Total liabilities		105
Fair Value, Inputs, Level 1
Assets
Total assets	80	13,922
Fair Value, Inputs, Level 2
Assets
Total assets	89,268	72,797
Fair Value, Inputs, Level 3
Liabilities
Stock warrant liability		105
Total liabilities		105
Money market funds
Assets
Total assets	80	13,922
Money market funds | Fair Value, Inputs, Level 1
Assets
Total assets	80	13,922
U.S. Government agency bonds
Assets
Total assets	9,515	5,523
U.S. Government agency bonds | Fair Value, Inputs, Level 2
Assets
Total assets	9,515	5,523
Bank certificates of deposit
Assets
Total assets	11,113
Bank certificates of deposit | Fair Value, Inputs, Level 2
Assets
Total assets	11,113
Commercial paper.
Assets
Total assets	17,010	15,340
Commercial paper. | Fair Value, Inputs, Level 2
Assets
Total assets	17,010	15,340
Corporate notes
Assets
Total assets	45,124	45,159
Corporate notes | Fair Value, Inputs, Level 2
Assets
Total assets	45,124	45,159
Asset-backed securities
Assets
Total assets	6,506	6,775
Asset-backed securities | Fair Value, Inputs, Level 2
Assets
Total assets	$ 6,506	$ 6,775

Fair Value Measurements - Warra

Fair Value Measurements - Warrants and other (Details) - USD ($)	1 Months Ended			12 Months Ended
	Feb. 29, 2016	Sep. 30, 2015	Feb. 28, 2015	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2010	Dec. 31, 2006
Fair Value Measurements, Valuation
Change in fair value of stock warrant liability				$ 43,000	$ (1,132,000)	$ 5,000
Common shares issued, net settlement of warrants exercised (in shares)				44,914
Amount of transfers of assets and liabilities measured on a recurring basis between Levels 1, 2 and 3 of the fair value hierarchy				$ 0	0	0
Amended Agreement
Fair Value Measurements, Valuation
Change in fair value of stock warrant liability				43,000	(200,000)	0
Common Stock Warrants | Amended Agreement
Fair Value Measurements, Valuation
Shares that may be purchased under warrant (in shares)	5,649		11,298
Exercise price of warrants (in dollars per share)			$ 8.85
Stock warrant liabilities, fair value			$ 53,000		100,000
Warrants exercised (in shares)	5,649	5,649
Change in fair value of stock warrant liability					$ (200,000)
Common shares issued, net settlement of warrants exercised (in shares)		5,649			5,649
Fair Value Assumptions
Risk free interest rate (as a percent)			1.90%		1.90%
Dividend yield (as a percent)			0.00%		0.00%
Expected volatility rate (as a percent)			70.00%		54.80%
Expected life			7 years		6 years 2 months 12 days
Warrants To Purchase Shares Of Series C Convertible Preferred Stock Member
Fair Value Measurements, Valuation
Shares that may be purchased under warrant (in shares)								185,714
Exercise price of warrants (in dollars per share)								$ 7
Change in fair value of stock warrant liability				$ 0	$ 0	$ 0
Warrants to Purchase Shares of Series D Convertible Preferred Stock
Fair Value Measurements, Valuation
Shares that may be purchased under warrant (in shares)							156,860
Exercise price of warrants (in dollars per share)							$ 7.65
Warrants exercised (in shares)					127,526	29,334
Warrants exercised, settled in cash (in shares)				49,410
Warrants exercised, net settlement (in shares)				78,116
Warrants to Purchase Shares of Series D Convertible Preferred Stock | Amended Agreement
Fair Value Measurements, Valuation
Change in fair value of stock warrant liability				$ 0	$ (900,000)	$ 5,000
IPO
Fair Value Assumptions
Share price (in dollars per share)				$ 18

Fair Value Measurements - Level

Fair Value Measurements - Level 3 (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Reconciliation of liabilities measured at fair value using level 3 significant unobservable inputs (Level 3) on a recurring basis
Beginning balance	$ 105	$ 379
Issuance of common stock warrants		53
Change in the fair value of stock warrants	43	1,132
Ending balance		105
Common Stock
Reconciliation of liabilities measured at fair value using level 3 significant unobservable inputs (Level 3) on a recurring basis
Issuance of Shares in connection with the settlements	$ (62)	(139)
Series D convertible preferred stock
Reconciliation of liabilities measured at fair value using level 3 significant unobservable inputs (Level 3) on a recurring basis
Issuance of Shares in connection with the settlements		$ (1,320)

Long-term Debt and Intangible48

Long-term Debt and Intangible Assets - Notes Payable (Details)	1 Months Ended	12 Months Ended		13 Months Ended
	Nov. 30, 2013USD ($)item	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014USD ($)
Other disclosures
Useful life/amortization period		60 months	60 months
Buy-out Agreement with GMP
Other disclosures
Maximum payment allowed under the agreement in the event of a sale of the Company meeting certain criteria	$ 2,000,000
Buy-out Agreement with GMP | GMP royalty buyout
Other disclosures
Intangible asset purchase amount	$ 17,500,000
Useful life/amortization period	5 years
Notes Payable | GMP Note Parties | November 30, 2013 to December 31, 2014
Other disclosures
Monthly interest only payments				$ 72,900
Notes Payable | GMP Note Parties | January 31, 2015 to December 31, 2016
Other disclosures
Number of periodic payments of principal and interest | item	24
Monthly principal and interest payments	$ 767,700
Notes Payable | GMP Note Parties | Buy-out Agreement with GMP
Other disclosures
Face amount at time of issuance	$ 17,500,000
Interest rate (as a percent)	5.00%

Long-term Debt and Intangible49

Long-term Debt and Intangible Assets - Bank Loan Facility (Details) - USD ($)	1 Months Ended				12 Months Ended
	Feb. 29, 2016	Sep. 30, 2015	Jul. 31, 2015	Feb. 28, 2015	Dec. 31, 2016	Dec. 31, 2015
Long-Term Debt
Loss on extinguishment of debt						$ 195,000
Amended Agreement
Long-Term Debt
Repayments of debt			$ 7,000,000
Loss on extinguishment of debt			200,000
Amortization of debt discount and deferred asset to interest expense					$ 0	$ 15,000
Amended Agreement | Senior Secured Term Loan and Senior Secured Draw to Term Loan | Prime Rate
Long-Term Debt
Basis spread				2.00%
Amended Agreement | Senior Secured Term Loan and Senior Secured Draw to Term Loan | LIBOR
Long-Term Debt
Basis spread				3.00%
Amended Agreement | Senior Secured Term Loan
Long-Term Debt
Face amount at time of issuance				$ 5,000,000
Proceeds from issuance of debt				5,000,000
Loan origination fees recorded as debt discount				41,000
Debt issuance costs				100,000
Amended Agreement | Senior Secured Draw-to-term Loan
Long-Term Debt
Face amount at time of issuance				5,000,000
Gross long-term debt			$ 2,000,000
Amended Agreement | Senior Secured Revolving Credit Facility
Long-Term Debt
Face amount at time of issuance				$ 8,000,000
Amended Agreement | Senior Secured Revolving Credit Facility | Prime Rate
Long-Term Debt
Basis spread				1.75%
Amended Agreement | Senior Secured Revolving Credit Facility | LIBOR
Long-Term Debt
Basis spread				2.75%
Common Stock Warrants | Amended Agreement
Long-Term Debt
Shares that may be purchased under warrant (in shares)	5,649			11,298
Exercise price of warrants (in dollars per share)				$ 8.85
Warrants exercised (in shares)	5,649	5,649
Warrants outstanding (in shares)					0

Long-term Debt and Intangible50

Long-term Debt and Intangible Assets - Summary and Other (Details) - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Debt balances, including current portions:
Total debt		$ 9,696,000
Less current portion of long-term debt		(8,931,000)
Total long-term debt		765,000
Composition of intangible assets
Total gross amount	$ 17,743,000	17,743,000
Accumulated amortization	(11,176,000)	(7,525,000)
Total	$ 6,567,000	$ 10,218,000
Useful life/amortization period	60 months	60 months
Amortization expense	$ 3,700,000	$ 3,500,000	$ 3,500,000
Number of international distributors		2
Estimated amortization expense
2,017	3,600,000
2,018	3,000,000
GMP royalty buyout
Composition of intangible assets
Total gross amount	17,500,000	17,500,000
Non-compete agreements
Composition of intangible assets
Total gross amount	$ 243,000	243,000
Number of international distributors		2
The amount of fair value of the non-compete provisions recorded as intangible asset		$ 200,000
Non-compete agreements | Minimum
Composition of intangible assets
Useful life/amortization period		1 year
Non-compete agreements | Maximum
Composition of intangible assets
Useful life/amortization period		2 years
Notes Payable
Debt balances, including current portions:
Total debt		$ 9,696,000

Convertible Preferred Stock a51

Convertible Preferred Stock and Stockholders' Equity (Details) - USD ($) $ / shares in Units, $ in Thousands	Jun. 30, 2015	Dec. 31, 2015	Jun. 30, 2015	Dec. 31, 2015	Dec. 31, 2013	Dec. 31, 2016	Jun. 29, 2015	Dec. 31, 2014
Convertible Preferred Stock
Common shares issued upon the conversion of convertible preferred stock (in shares)		21,736,367
Adjustment to additional paid-in-capital, conversion of convertible preferred stock			$ 159,100
Convertible preferred stock								$ 157,379
Shares outstanding	0		0
Preferred stock, shares authorized		0		0		5,000,000
Preferred stock, shares issued		0		0		0
Repurchase of common stock, shares held in treasury (in shares)					28,000
Common Stock
Convertible Preferred Stock
Common shares issued upon the conversion of convertible preferred stock (in shares)				21,736,000
Shares issued				6,900,000
IPO | Common Stock
Convertible Preferred Stock
Shares issued	6,900,000
Share price (in dollars per share)	$ 18		$ 18
Convertible Preferred Stock
Convertible Preferred Stock
Common shares issued upon the conversion of convertible preferred stock (in shares)	21,700,000
Shares outstanding	0	0	0	0			21,736,367
Series A convertible preferred stock
Convertible Preferred Stock
Convertible preferred stock								$ 3,000
Par value								$ 0.001
Shares authorized								3,000,000
Shares issued								1,200,000
Shares outstanding								1,200,000
Liquidation preference								$ 3,000
Series B convertible preferred stock
Convertible Preferred Stock
Convertible preferred stock								$ 12,547
Par value								$ 0.001
Shares authorized								5,805,000
Shares issued								2,322,000
Shares outstanding								2,322,000
Liquidation preference								$ 12,538
Series C convertible preferred stock
Convertible Preferred Stock
Convertible preferred stock								$ 40,836
Par value								$ 0.001
Shares authorized								14,750,000
Shares issued								5,819,000
Shares outstanding								5,819,000
Liquidation preference								$ 40,731
Share price (in dollars per share)								$ 8
Series D convertible preferred stock
Convertible Preferred Stock
Convertible preferred stock								$ 41,496
Par value								$ 0.001
Shares authorized								13,844,000
Shares issued								5,410,000
Shares outstanding								5,410,000
Liquidation preference								$ 41,387
Share price (in dollars per share)		$ 18		$ 18				$ 11.38
Series E convertible preferred stock
Convertible Preferred Stock
Convertible preferred stock								$ 29,500
Par value								$ 0.001
Shares authorized								8,754,000
Shares issued								3,501,000
Shares outstanding								3,501,000
Liquidation preference								$ 29,500
Series F convertible preferred stock
Convertible Preferred Stock
Convertible preferred stock								$ 30,000
Par value								$ 0.001
Shares authorized								8,474,000
Shares issued								3,390,000
Shares outstanding								3,390,000
Liquidation preference								$ 30,000

Stock-Based Compensation - Plan

Stock-Based Compensation - Plan Information (Details) shares in Thousands	12 Months Ended
	Dec. 31, 2016itemshares	Jan. 01, 2017shares
Stock-based compensation
Number of stock plans | item	4
Shares reserved for future issuance	10,184
Expiration period	10 years
Vesting percentage on first anniversary of grant date	25.00%
Remaining vesting period	3 years
2015 Stock Plan
Stock-based compensation
Shares reserved for future issuance		7,800
Employee Stock Purchase Plan 2015
Stock-based compensation
Shares reserved for future issuance		1,100
Maximum employee contributions as a percentage of earnings under the ESPP	15.00%
Purchase price per share expressed as a percentage of the lower of the stock's fair market value on the offering date or purchase date under the ESPP	85.00%

Stock-Based Compensation - Stoc

Stock-Based Compensation - Stock Option Activity (Details) - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Unvested options
Period of time, from termination date, that unvested shares issued to an employee from early exercise of stock options can be repurchased by the Company	90 days
Unvested options exercised (in shares)	0	337	55,908
Unvested shares subject to repurchase right (in shares)	977	16,682
Liability related to share-based compensation	$ 4,000	$ 67,000
Employee stock options
Weighted Average Exercise Price
Granted (in dollars per share)	$ 21.24	$ 17.79	$ 7.13
2001 Stock Plan, 2011 Stock Plan and 2015 Stock Plan
Number of Shares Underlying Options
Outstanding at beginning of period (in shares)	5,701,000	5,657,000	4,472,000
Granted (in shares)	1,979,000	1,139,000	1,571,000
Exercised (in shares)	(1,660,000)	(1,022,000)	(348,000)
Canceled/forfeited/expired (in shares)	(109,000)	(73,000)	(38,000)
Outstanding at end of period (in shares)	5,911,000	5,701,000	5,657,000	4,472,000
Vested and expected to vest at end of period (in shares)	5,791,000
Exercisable at end of period (in shares)	2,977,000
Weighted Average Exercise Price
Outstanding at beginning of period (in dollars per share)	$ 7.10	$ 3.93	$ 2.65
Granted (in dollars per share)	21.24	18.07	7.13
Exercised (in dollars per share)	3.65	1.70	1.98
Canceled/forfeited/expired (in dollars per share)	20	6.56	4.85
Outstanding at end of period (in dollars per share)	12.57	$ 7.10	$ 3.93	$ 2.65
Vested and expected to vest at end of period (in dollars per share)	12.44
Exercisable at end of period (in dollars per share)	$ 6.20
Additional disclosures
Weighted Average Remaining Contractual Life	7 years 3 months 18 days	6 years 8 months 12 days	6 years 3 months 18 days	6 years 2 months 12 days
Outstanding, Aggregate Intrinsic Value	$ 129,591,000	$ 102,390,000	$ 16,131,000	$ 9,299,000
Exercised, Aggregate Intrinsic Value	42,458,000	$ 9,174,000	$ 1,249,000
Vested and expected to vest, Aggregate Intrinsic Value	127,711,000
Exercisable, Aggregate Intrinsic Value	$ 83,636,000

Stock-Based Compensation - Allo

Stock-Based Compensation - Allocation of Expense (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Allocation of stock-based compensation
Stock-based compensation expense	$ 8,786	$ 7,889	$ 1,530
Cost of sales
Allocation of stock-based compensation
Stock-based compensation expense	233	251	38
Selling, general and administrative
Allocation of stock-based compensation
Stock-based compensation expense	6,475	5,773	1,118
Research and development
Allocation of stock-based compensation
Stock-based compensation expense	$ 2,078	$ 1,865	$ 374

Stock-Based Compensation - Fair

Stock-Based Compensation - Fair Value Assumptions (Details) - USD ($) $ / shares in Units, $ in Thousands	1 Months Ended		12 Months Ended
	Jun. 30, 2015	Jul. 31, 2014	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Stock-based compensation
Stock-based compensation expense			$ 8,786	$ 7,889	$ 1,530
Non Employee
Stock-based compensation
Stock-based compensation expense			$ 800	$ 1,100	$ 300
Stock-based awards to employees - weighted average assumptions used to estimate fair value of options granted
Exercisable number of shares			891,400
Minimum | Non Employee
Stock-based awards to employees - weighted average assumptions used to estimate fair value of options granted
Exercise price (in dollars per share)			$ 0.25
Maximum | Non Employee
Stock-based awards to employees - weighted average assumptions used to estimate fair value of options granted
Exercise price (in dollars per share)			25.91
Stock options
Stock-based compensation
Weighted average estimated grant date fair value (per share)			$ 10.81	$ 9.77	$ 4.08
Unamortized stock-based compensation expense not yet recognized			$ 23,800
Options remaining vesting period			4 years
Weighted average period of recognition			3 years
Fair value of stock options vested			$ 5,700	$ 5,200
Employee stock options
Stock-based awards to employees - weighted average assumptions used to estimate fair value of options granted
Risk-free interest rate (as a percent)			1.59%	1.77%	1.91%
Expected dividend yield (as a percent)			0.00%	0.00%	0.00%
Expected volatility rate (as a percent)			52.90%	56.00%	60.70%
Expected term			6 years 15 days	6 years 26 days	6 years 26 days
Weighted-average exercise price of options granted (in dollars per share)			$ 21.24	$ 17.79	$ 7.13
Vesting based on performance | Stock options
Stock-based compensation
Options granted (in shares)		1,200,000
Cumulative compensation costs	$ 3,800
Vesting period			4 years

Stock-Based Compensation - Shar

Stock-Based Compensation - Shares Reserved for Future Issuance (Details) - shares shares in Thousands	Jan. 01, 2017	Dec. 31, 2016
Common Stock Reserved for Future Issuance
Total		10,184
2001 Stock Plan
Common Stock Reserved for Future Issuance
Stock options issued and outstanding (in shares)		1,074
2011 Stock Plan
Common Stock Reserved for Future Issuance
Stock options issued and outstanding (in shares)		2,338
2015 Stock Plan
Common Stock Reserved for Future Issuance
Stock options issued and outstanding (in shares)		2,499
Authorized for future stock awards or option grants (in shares)		3,673
Total	7,800
Employee Stock Purchase Plan 2015
Common Stock Reserved for Future Issuance
Authorized for future stock awards or option grants (in shares)		600
Total	1,100

Income Taxes - Provision, Recon

Income Taxes - Provision, Reconciliation and Deferred Taxes (Details) - USD ($) $ in Thousands	3 Months Ended			12 Months Ended
	Dec. 31, 2016	Sep. 30, 2016	Dec. 31, 2015	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
United States and foreign loss before income taxes:
United States				$ 12,214	$ (36,750)	$ (13,124)
Foreign				(7,649)	(1,538)	(915)
Income (loss) before taxes				4,565	(38,288)	(14,039)
Current:
Federal				(28)
State				71	33	18
Total current income tax provision				43	33	18
Provision for income taxes	$ (97)	$ 140	$ 33	$ 43	33	18
Tax provision for noncontrolling interest					$ 0	$ 0
Reconciliations of the U.S. federal statutory tax rate to the combined effective tax rate
Statutory rate of tax expense (as a percent)				34.00%	34.00%	34.00%
State income taxes, net of federal benefit (as a percent)				11.60%	3.50%	3.30%
Permanent and other items (as a percent)				17.30%	(3.40%)	(1.90%)
Deconsolidation of DOSE (as a percent)				0.00%	(11.90%)	0.00%
Nondeductible offering costs (as a percent)				0.10%	0.00%	(2.80%)
Research credits (as a percent)				(42.60%)	4.60%	9.60%
Uncertain tax positions (as a percent)				20.60%	(2.30%)	(4.70%)
Change in tax rate (as a percent)				29.30%	(0.20%)	(0.50%)
Valuation allowance (as a percent)				(69.40%)	(24.40%)	(35.70%)
Effective tax rate (as a percent)				0.90%	(0.10%)	1.30%
Components of deferred tax assets
Net operating loss carryforwards	41,144		45,870	$ 41,144	$ 45,870
Tax credits	4,913		3,973	4,913	3,973
Depreciation and amortization	16,748		19,472	16,748	19,472
Stock-based compensation	5,310		3,749	5,310	3,749
Reserves and accruals	3,920		2,241	3,920	2,241
Other	233		129	233	129
Total deferred tax assets	72,268		75,434	72,268	75,434
Valuation allowance	$ (72,268)		$ (75,434)	(72,268)	$ (75,434)
Net increase in valuation allowance				$ (3,200)

Income Taxes - Net Operating Lo

Income Taxes - Net Operating Loss Carryforwards (Details) $ in Millions	Dec. 31, 2016USD ($)
Federal
Net operating loss carryforwards
Net operating loss carryforwards	$ 136.8
State
Net operating loss carryforwards
Net operating loss carryforwards	104.1
Foreign
Net operating loss carryforwards
Net operating loss carryforwards	$ 7.5

Income Taxes - Tax Credit Carry

Income Taxes - Tax Credit Carryforwards (Details) - Research and development credit carryforward $ in Millions	Dec. 31, 2016USD ($)
Federal
Tax credit carryforwards
Tax credit carryforwards	$ 5.9
State
Tax credit carryforwards
Tax credit carryforwards	$ 6

Income Taxes - Unrecognized Tax

Income Taxes - Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Unrecognized tax benefits
Tax Benefits as a result of annul limitations under section 382	$ 200
Balance at beginning of the year	4,848	$ 4,066	$ 3,272
Reductions for tax positions - prior years	(49)	(284)	(27)
Additions for tax positions - current year	1,148	1,066	821
Balance at end of the year	5,947	4,848	$ 4,066
Accrued interest and penalties associated with uncertain tax positions	0	$ 0
Unrepatriated foreign earnings
Unrecorded income taxes associated with unrepatriated foreign earnings	$ 0

Employee Benefits (Details)

Employee Benefits (Details) - USD ($)	Jan. 01, 2017	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Employee Benefits
Maximum annual contribution per employee (as a percent)		100.00%
Maximum annual contributions per employee age 50 or less		$ 18,000	$ 18,000
Maximum annual contributions per employee over the age of 50		24,000	24,000
Employee contributions		$ 0	$ 0	$ 0
Employer matching percentage	50.00%
The maximum employer matching contribution percent	6.00%
Defined contribution plan employers matching contribution vesting period	3 years

Commitments and Contingencies -

Commitments and Contingencies - Leases (Details)	Jan. 01, 2017USD ($)item	Jun. 30, 2015ft²	Dec. 31, 2016USD ($)ft²	Dec. 31, 2015USD ($)	Dec. 31, 2014USD ($)
Operating Leases
Rent expense			$ 1,100,000	$ 600,000	$ 300,000
Future minimum lease payments under noncancelable operating leases
2,017			806,000
2,018			641,000
2,019			647,000
2,020			643,000
2,021			659,000
Total future minimum payments			3,396,000
Purchase commitments
Purchase commitment due within one year			3,700,000
Facilities Leases
Operating Leases
Deferred rent			$ 219,000	$ 149,000
Sublease, San Clemente, California
Operating Leases
Area of space subleased | ft²		37,700
Lease, San Clemente, California | Forecast
Operating Leases
Lease term upon expiration of the sublease	5 years
Monthly rent	$ 42,000
Optional lease extension term	3 years
Lease, San Clemente, California | Forecast | Minimum
Operating Leases
Annual rent increase (as a percent)	2.50%
Lease, San Clemente, California | Forecast | Maximum
Operating Leases
Annual rent increase (as a percent)	3.50%
Number of lease renewal periods | item	2
Tenant improvement allowance	$ 264,000
Foreign Subsidiaries Office Leases | Maximum
Operating Leases
Area of leased space | ft²			2,000

Commitments and Contingencies63

Commitments and Contingencies - Other (Details) - Agreement with the Regents	Dec. 30, 2014USD ($)item	Aug. 28, 2015USD ($)	Dec. 31, 2016USD ($)	Dec. 31, 2015USD ($)
Other commitments
Commitment obligation	$ 2,700,000
Number of payments to be made in current fiscal year | item	5
Minimum required annual payment of the commitment obligation, based on net sales of current and future products	$ 500,000
Commitment obligation payments		$ 1,800,000	$ 2,800,000	$ 1,800,000
Period of time for repayment of commitment obligation from date of IPO	60 days

Variable Interest Entity (Detai

Variable Interest Entity (Details) $ in Thousands	Jun. 30, 2015USD ($)	Dec. 31, 2016USD ($)director	Sep. 30, 2016USD ($)	Jun. 30, 2016USD ($)	Mar. 31, 2016USD ($)	Dec. 31, 2015USD ($)	Sep. 30, 2015USD ($)	Jun. 30, 2015USD ($)	Mar. 31, 2015USD ($)	Dec. 31, 2016USD ($)director	Dec. 31, 2015USD ($)	Dec. 31, 2014USD ($)
Variable Interest Entity
Cash payments for the acquisition of certain assets of related party											$ 15,000
Charge to other expense relating to deconsolidation of DOSE								$ 25,685			25,685
Consolidation of DOSE's results of operations:
Selling, general and administrative		$ 20,494	$ 16,854	$ 15,120	$ 12,288	$ 12,392	$ 11,237	12,516	$ 7,816	$ 64,756	43,961	$ 28,135
Research and development		7,399	7,807	6,955	7,062	6,295	6,173	7,339	5,240	29,223	25,047	19,205
Net loss of DOSE		$ (134)	$ (1,159)	$ (2,332)	$ (897)	$ 2,290	$ 2,057	32,512	$ 1,462	(4,522)	38,321	14,057
Consolidation of DOSE's cash flows:
Cash used in operating activities										12,309	(2,188)	(7,107)
Cash used in investing activities										(26,116)	(85,628)	(868)
Cash provided by financing activities										(1,642)	107,110	3,500
Net (decrease) increase in cash and cash equivalents										$ (15,078)	19,268	(4,424)
DOSE Medical Corporation
Variable Interest Entity
Cash payments for the acquisition of certain assets of related party	$ 15,000
Intercompany receivable eliminated	$ 10,900							10,900
Maximum period of support under transition services agreement	3 years
Number of members of the Company’s board of directors who serve on the board of directors of DOSE | director		2								2
Charge to other expense relating to deconsolidation of DOSE								$ 25,700
DOSE Medical Corporation | Variable Interest Entity, Primary Beneficiary
Consolidation of DOSE's results of operations:
Selling, general and administrative											105	243
Research and development											890	1,557
Interest expense											85	156
Net loss of DOSE											1,080	1,956
Consolidation of DOSE's cash flows:
Cash used in operating activities											(1,134)	(1,271)
Cash used in investing activities											(33)	(39)
Cash provided by financing activities											1,158	1,315
Net (decrease) increase in cash and cash equivalents											$ (9)	$ 5

Business Segment Information (D

Business Segment Information (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2016USD ($)segment	Dec. 31, 2015USD ($)segment	Dec. 31, 2014USD ($)segment
Business Segment Information
Number of reportable segments | segment	1	1	1
Total net sales	$ 114,397	$ 71,700	$ 45,587
Property and equipment, net	7,593	2,154	1,950
Depreciation and amortization	4,722	4,267	4,231
Capital expenditures	6,549	1,034	817
United States
Business Segment Information
Total net sales	104,995	67,698	42,932
Property and equipment, net	7,463	2,012	1,784
Depreciation and amortization	4,654	4,180	4,149
Capital expenditures	6,493	972	749
International
Business Segment Information
Total net sales	9,402	4,002	2,655
Property and equipment, net	130	142	166
Depreciation and amortization	68	87	82
Capital expenditures	$ 56	$ 62	$ 68

Selected Quarterly Financial 66

Selected Quarterly Financial Information (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Selected Quarterly Financial Information (Unaudited)
Net sales	$ 33,172	$ 29,577	$ 28,556	$ 23,092	$ 20,276	$ 19,004	$ 17,754	$ 14,666	$ 114,397	$ 71,700	$ 45,587
Cost of sales	4,811	3,886	4,359	3,121	3,594	3,319	3,281	2,794	16,177	12,988	11,418
Gross profit	28,361	25,691	24,197	19,971	16,682	15,685	14,473	11,872	98,220	58,712	34,169
Operating expenses:
Selling, general and administrative	20,494	16,854	15,120	12,288	12,392	11,237	12,516	7,816	64,756	43,961	28,135
Research and development	7,399	7,807	6,955	7,062	6,295	6,173	7,339	5,240	29,223	25,047	19,205
Total operating expenses	27,893	24,661	22,075	19,350	18,687	17,410	19,855	13,056	93,979	69,008	47,340
Income (loss) from operations	468	1,030	2,122	621	(2,005)	(1,725)	(5,382)	(1,184)	4,241	(10,296)	(13,171)
Loss on deconsolidation of DOSE							(25,685)			(25,685)
Total other income (expense), net	(431)	269	210	276	(252)	(332)	(1,445)	(278)
Provision for income taxes	(97)	140			33				43	33	18
Net income (loss)	$ 134	$ 1,159	$ 2,332	$ 897	(2,290)	(2,057)	(32,512)	(1,462)	4,522	(38,321)	(14,057)
Net income (loss) attributable to Glaukos Corporation stockholders					$ (2,290)	$ (2,057)	$ (31,928)	$ (966)	$ 4,522	$ (37,241)	$ (12,126)
Basic net income per share	$ 0	$ 0.03	$ 0.07	$ 0.03	$ (0.07)	$ (0.06)	$ (10.96)	$ (0.40)	$ 0.14	$ (2.13)	$ (5.29)
Diluted net income per share	$ 0	$ 0.03	$ 0.06	$ 0.03	$ (0.07)	$ (0.07)	$ (10.96)	$ (0.40)	$ 0.12	$ (2.13)	$ (5.29)

Subsequent Events (Details)

Subsequent Events (Details)	Jan. 31, 2017ft²
Subsequent Event | San Clemente, California
Subsequent Events
Area of leased space	39,300