Glaukos (GKOS) 10-Q 7 Aug 17 2017 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2017	Aug. 03, 2017
Document and Entity Information
Entity Registrant Name	GLAUKOS Corp
Entity Central Index Key	1,192,448
Document Type	10-Q
Document Period End Date	Jun. 30, 2017
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Current Reporting Status	Yes
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding		34,434,009
Document Fiscal Year Focus	2,017
Document Fiscal Period Focus	Q2

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Current assets:
Cash and cash equivalents	$ 13,370	$ 6,494
Short-term investments	90,420	89,268
Accounts receivable, net	16,702	14,305
Inventory, net	8,382	6,844
Prepaid expenses and other current assets	2,340	3,032
Restricted cash		80
Total current assets	131,214	120,023
Property and equipment, net	8,724	7,593
Intangible asset, net	5,029	6,567
Deposits and other assets	559	188
Total assets	145,526	134,371
Current liabilities:
Accounts payable	5,974	2,967
Accrued liabilities	13,061	13,911
Deferred rent	89	60
Total current liabilities	19,124	16,938
Other liabilities	468	159
Total liabilities	19,592	17,097
Commitments and contingencies (see Note 8)
Stockholders' equity:
Preferred stock, $0.001 par value; 5,000 shares authorized, no shares issued or outstanding
Common stock, $0.001 par value; 150,000 shares authorized, 34,461 and 33,971 shares issued and 34,433 and 33,943 shares outstanding at June 30, 2017 and December 31, 2016, respectively	34	34
Additional paid-in capital	320,500	308,815
Accumulated other comprehensive income	46	648
Accumulated deficit	(194,514)	(192,091)
Less treasury stock (28 shares as of June 30, 2017 and December 31, 2016)	(132)	(132)
Total stockholders' equity	125,934	117,274
Total liabilities and stockholders' equity	$ 145,526	$ 134,371

CONDENSED CONSOLIDATED BALANCE3

CONDENSED CONSOLIDATED BALANCE SHEETS (PARENTHETICAL) - $ / shares	Jun. 30, 2017	Dec. 31, 2016
CONDENSED CONSOLIDATED BALANCE SHEETS
Preferred stock, par value (in dollars per share)	$ 0.001	$ 0.001
Preferred stock, shares authorized	5,000,000	5,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, shares authorized	150,000,000	150,000,000
Common stock, shares issued	34,461,000	33,971,000
Common stock, shares outstanding	34,433,000	33,943,000
Treasury stock, shares	28,000	28,000

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
Net sales	$ 41,285,000	$ 28,556,000	$ 77,192,000	$ 51,648,000
Cost of sales	5,522,000	4,359,000	10,702,000	7,480,000
Gross profit	35,763,000	24,197,000	66,490,000	44,168,000
Operating expenses:
Selling, general and administrative	24,675,000	15,120,000	46,156,000	27,408,000
In-process research and development	5,320,000		5,320,000
Research and development	9,633,000	6,955,000	18,575,000	14,017,000
Total operating expenses	39,628,000	22,075,000	70,051,000	41,425,000
(Loss) income from operations	(3,865,000)	2,122,000	(3,561,000)	2,743,000
Other income, net
Interest and other income	598,000	286,000	1,234,000	621,000
Interest and other expense, net	(12,000)	(76,000)	(19,000)	(178,000)
Change in fair value of stock warrant liability				43,000
Total other income, net	586,000	210,000	1,215,000	486,000
(Loss) income before taxes	(3,279,000)	2,332,000	(2,346,000)	3,229,000
Provision for income taxes	22,000	0	77,000	0
Net (loss) income attributable to Glaukos Corporation stockholders	$ (3,301,000)	$ 2,332,000	$ (2,423,000)	$ 3,229,000
Basic net (loss) income per share, attributable to Glaukos Corporation stockholders	$ (0.10)	$ 0.07	$ (0.07)	$ 0.10
Diluted net (loss) income per share, attributable to Glaukos Corporation stockholders	$ (0.10)	$ 0.06	$ (0.07)	$ 0.09
Weighted average shares used to compute basic net (loss) income per share attributable to Glaukos Corporation stockholders	34,322	32,652	34,234	32,477
Weighted average shares used to compute diluted net (loss) income per share attributable to Glaukos Corporation stockholders	34,322	36,182	34,234	35,975

CONDENSED CONSOLIDATED STATEME5

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
Net (loss) income	$ (3,301)	$ 2,332	$ (2,423)	$ 3,229
Other comprehensive loss:
Foreign currency translation adjustments	(320)	(149)	(660)	(434)
Unrealized gain on short-term investments, net of tax	18	58	58	326
Other comprehensive loss	(302)	(91)	(602)	(108)
Comprehensive income (loss) attributable to Glaukos Corporation	$ (3,603)	$ 2,241	$ (3,025)	$ 3,121

CONDENSED CONSOLIDATED STATEME6

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016
Operating Activities
Net (loss) income	$ (2,423)	$ 3,229
Adjustments to reconcile net (loss) income to net cash provided by operating activities:
Depreciation and amortization	2,428	2,255
Loss on disposal of fixed assets	5
Stock-based compensation	7,935	3,465
Unrealized foreign currency gains	(624)	(229)
Change in fair value of stock warrant liability		(43)
Amortization of premium on short-term investments	58	161
Deferred rent	338	2
Change in operating assets and liabilities:
Accounts receivable, net	(2,289)	(4,051)
Inventory	(1,368)	(1,579)
Prepaid expenses and other current assets	721	(131)
Restricted cash	80
Accounts payable and accrued liabilities	2,145	2,028
Other assets	(368)	(5)
Net cash provided by operating activities	6,638	5,102
Investing activities
Purchases of short-term investments	(45,766)	(35,825)
Proceeds from sale and maturities of short-term investments	44,580	23,954
Purchases of property and equipment	(2,071)	(1,219)
Net cash used in investing activities	(3,257)	(13,090)
Financing activities
Proceeds from exercise of stock options	2,782	2,414
Proceeds from exercise of stock warrants		50
Payments of secured notes		(4,410)
Share purchases under Employee Stock Purchase Plan	968	793
Net cash provided by (used in) financing activities	3,750	(1,153)
Effect of exchange rate changes on cash and cash equivalents	(255)	(92)
Net increase (decrease) in cash and cash equivalents	6,876	(9,233)
Cash and cash equivalents at beginning of period	6,494	21,572
Cash and cash equivalents at end of period	13,370	12,339
Supplemental disclosures of cash flow information
Interest paid		197
Taxes paid	64	63
Supplemental schedule of noncash investing and financing activities
Reduction of liability upon vesting of stock options previously exercised for unvested stock	$ 3	$ 42

Organization and Basis of Prese

Organization and Basis of Presentation	6 Months Ended
	Jun. 30, 2017
Organization and Basis of Presentation
Organization and Basis of Presentation	Note 1. Organization and Basis of Presentation 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 condensed consolidated financial statements include the ac c ounts of Glaukos and its wholly owned subsidiaries. All significant intercompany balances and transactions among the consolidated entities have been eliminated in consolidation. Basis of presentation The accompanying condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (GAAP) for interim financial information and pursuant to the instructions to Form 10-Q and Article 10 of Regulation S-X. The unaudited interim financial statements have been prepared on a basis consistent with the audited financial statements . As permitted under those rules, certain footnotes and other financial information that are normally required by GAAP have been condensed or omitted. In the opinion of management, the unaudited interim financial statements reflect all adjustments, which include normal recurring adjustments, necessary for the fair presentation of the Company’s financial information, contained herein. The condensed consolidated balance sheet at December 31, 2016 has been derived from audited financial statements at that date, but excludes disclosures required by GAAP for complete financial statements. These interim financial statements do not include all disclosures required by GAAP and should be read in conjunction with the Company’s financial statements and accompanying notes for the fiscal year ended December 31, 2016, which are contained in the Company’s Annual Report on Form 10-K filed with the United States Securities and Exchange Commission (SEC) on March 15, 2017. The results for the period ended June 30, 2017 are not necessarily indicative of the results to be expected for the year ending December 31, 2017 or for any other interim period. Acquisition of IOP Sensor System from DOSE Medical On April 12, 2017, the Company entered into an IOP Sensor System Purchase Agreement (the Purchase Agreement), between the Company and DOSE Medical Corporation (DOSE), to purchase from DOSE its intraocular pressure (IOP) sensor system, including all patents, license rights and tangible assets, and to assume certain liabilities related thereto (collectively, the IOP Sensor System), for consideration consisting of an initial cash payment of $5.5 million, plus performance-based consideration of up to $9.5 million upon achievement of certain development, clinical and regulatory milestones. The Company completed the purchase of the IOP Sensor System concurrent with the execution of the Purchase Agreement. The transaction was accounted for as an asset acquisition. Of the $5.5 million initial cash payment, $5.3 million was immediately charged to in-process research and development expense as management determined there was no alternative future use related to the assets purchased. Of the remaining $0.2 million, the majority was capitalized to fixed assets and will be depreciated over the corresponding asset’s useful life, and a small portion was recorded as a prepaid asset and will be amortized to general and administrative expense as the underlying amounts are utilized. DOSE was previously a wholly-owned subsidiary of the Company. In 2010, it was spun-out as a standalone entity and was accounted for as a consolidated variable interest entity. In 2015, the Company acquired the iDose product line and related assets from DOSE and upon the acquisition, the Company derecognized DOSE as a consolidated entity in the financial statements. Thomas W. Burns, the Company’s President, Chief Executive and a member of its board of directors, and William J. Link, Ph.D., Chairman of the Company’s board of directors, currently serve on the board of directors of DOSE and certain members of the Company’s management and board of directors hold an equity interest in DOSE.

Summary of Significant Accounti

Summary of Significant Accounting Policies	6 Months Ended
	Jun. 30, 2017
Summary of Significant Accounting Policies
Summary of Significant Accounting Policies	Note 2. Summary of Significant Accounting Policies There have been no significant changes in the Company’s significant accounting policies during the six months ended June 30, 2017, as compared with those disclosed in its Annual Report on Form 10-K for the year ended December 31, 2016 filed with the SEC on March 15, 2017. Use of estimates The preparation of the financial statements in conformity with GAAP requires management to make 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 condensed 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 condensed 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 in stockholders’ equity. For the three month periods ended June 30, 2017 and 2016, the Company reported losses from foreign currency translation adjustments of approximately $0. 3 million and $0.1 million, respectively, and for the six month periods ended June 30, 2017 and 2016, the Company reported losses from foreign currency translation adjustments of approximately $0.7 million and $0.4 million, respectively. Realized gains and losses resulting from foreign currency transactions are included in selling, general and administrative expense in the condensed consolidated statements of operations. For the three month periods ended June 30, 2017 and 2016, the Company reported foreign currency transaction gains (losses) of $95,000 and $(38,000), respectively, and for the six month periods ended June 30, 2017 and 2016, the Company reported foreign currency transaction gains of $112,000 and $23,000, respectively. Transaction gains and losses that arise from exchange rate fluctuations on transactions denominated in a currency other than the functional currency, including gains and losses on intercompany loans, are included in the condensed consolidated statements of operations. For the three month periods ended June 30, 2017 and 2016, the Company reported net foreign currency transaction gains of $0.4 million and $42,000, respectively, and for the six month periods ended June 30, 2017 and 2016, the Company reported net foreign currency transaction gains of $0.7 million and $0.3 million, respectively. Cash, cash equivalents and short-term investments The Company invests its excess cash in marketable securities, including money market funds, money market securities, corporate bonds, 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. 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 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 June 30, 2017 or December 31, 2016. 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. 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 is 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. 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 June 30, 2017 . Net (loss) income per share Basic net (loss) income per share is calculated by dividing the net (loss) income by the weighted average number of common shares that were outstanding for the period, without consideration for common stock equivalents. In quarters when the Company realizes net income, diluted net income per share is calculated by dividing the net income by the weighted average number of common shares plus the sum of the weighted average number of dilutive common stock equivalents outstanding for the period determined using the treasury stock method. Common stock equivalents are comprised of stock warrants and stock options outstanding under the Company’s stock option plans. In quarters when the Company realizes a net loss, no common stock equivalents are included in the calculation of weighted average number of dilutive common stock equivalents as the effect of applying the treasury stock method is considered anti-dilutive. The Company’s computation of net (loss) income per share is as follows (in thousands, except per share amounts): Three Months Ended Six Months Ended June 30, June 30, 2017 2016 2017 2016 Numerator: Net (loss) income - basic $ (3,301) $ 2,332 $ (2,423) $ 3,229 Denominator: Weighted average number of common shares outstanding - basic 34,322 32,652 34,234 32,477 Common stock equivalents from outstanding common stock options - 3,510 - 3,485 Common stock equivalents for ESPP - 20 - 12 Common stock equivalents from outstanding common stock warrants - - - 1 Weighted average number of common shares outstanding - diluted 34,322 36,182 34,234 35,975 Basic net (loss) income per share $ (0.10) $ 0.07 $ (0.07) $ 0.10 Diluted net (loss) income per share $ (0.10) $ 0.06 $ (0.07) $ 0.09 Potentially dilutive securities not included in the calculation of diluted net (loss) income per share because to do so would be anti-dilutive were as follows (in thousands): Three Months Ended Six Months Ended June 30, June 30, 2017 2016 2017 2016 Stock options outstanding 5,737 2,151 5,805 2,157 ESPP 19 - 19 - 5,756 2,151 5,824 2,157 Recent accounting pronouncements In May 2014, the Financial Accounting Standards Board (FASB) issued guidance in Accounting Standards Update (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. The Company expects to complete its assessment process, including finalizing a transition method for adoption, by the end of the fourth quarter of 2017 and expects to complete its implementation process prior to the adoption of this ASU on January 1, 2018. 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 condensed 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 adopted ASU 2016-09 in its first quarter 2017. As a result of the prospective adoption of ASU 2016-09 on January 1, 2017, excess tax benefits of $13.1 million were recorded to the Company’s net operating loss carryover resulting in an increase in the Company’s deferred tax assets with an identical increase in the 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 condensed 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 ASC 606, Revenue Recognition - 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 condensed consolidated financial statements.

Balance Sheet Details

Balance Sheet Details	6 Months Ended
	Jun. 30, 2017
Balance Sheet Details
Balance Sheet Details	Note 3. Balance Sheet Details Short-term investments Short-term investments consisted of the following (in thousands): At June 30, 2017 Maturity Amortized cost Unrealized Unrealized Estimated (in years) or cost gains losses fair value U.S. government bonds 1-3 $ 1,799 $ - $ (12) $ 1,787 U.S. government agency bonds less than 3 3,697 - (12) 3,685 Bank certificates of deposit less than 1 15,450 8 - 15,458 Commercial paper less than 1 8,327 1 - 8,328 Corporate notes less than 3 53,435 20 (39) 53,416 Asset-backed securities less than 2 7,747 1 (2) 7,746 $ 90,455 $ 30 $ (65) $ 90,420 At December 31, 2016 Maturity Amortized cost Unrealized Unrealized Estimated (in years) or cost gains losses fair value U.S. government agency bonds 1-3 $ 9,535 $ 2 $ (22) $ 9,515 Bank certificates of deposit less than 2 11,101 13 (1) 11,113 Commercial paper less than 1 17,011 1 (2) 17,010 Corporate notes less than 3 45,178 7 (61) 45,124 Asset-backed securities less than 2 6,503 3 — 6,506 $ 89,328 $ 26 $ (86) $ 89,268 Accounts receivable, net Accounts receivable consisted of the following (in thousands): June 30, December 31, 2017 2016 Accounts receivable $ 17,196 $ 14,800 Less allowance for doubtful accounts (494) (495) $ 16,702 $ 14,305 Inventory, net Inventory consisted of the following (in thousands): June 30, December 31, 2017 2016 Finished goods $ 3,047 $ 2,014 Work in process 2,656 2,105 Raw material 2,679 2,725 $ 8,382 $ 6,844 Accrued liabilities Accrued liabilities consisted of the following (in thousands): June 30, December 31, 2017 2016 Accrued contract payments (see Note 5) $ 1,025 $ 823 Accrued sales commissions 382 1,641 Accrued clinical study payments 783 1,167 Accrued bonuses 4,863 6,122 Accrued vacation benefits 1,731 1,382 Accrued Employee Stock Purchase Plan deductions 491 4 Other accrued liabilities 3,786 2,772 $ 13,061 $ 13,911

Fair Value Measurements

Fair Value Measurements	6 Months Ended
	Jun. 30, 2017
Fair Value Measurements
Fair Value Measurements	Note 4. Fair Value Measurements 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 June 30, 2017 and December 31, 2016, and indicate the fair value hierarchy of the valuation techniques utilized by the Company to determine such fair value (in thousands): At June 30, 2017 Quoted prices Significant in active other Significant markets for observable unobservable June 30, identical assets inputs inputs 2017 (Level 1) (Level 2) (Level 3) Assets Money market funds (i) $ 443 $ 443 $ - $ - U.S. government agency bonds (ii) 3,686 - 3,686 - U.S. government bonds (ii) 1,787 - 1,787 - Bank certificates of deposit (ii) 15,458 - 15,458 - Commercial paper (ii) 8,328 - 8,328 - Corporate notes (ii) 53,416 - 53,416 - Asset-backed securities (ii) 7,745 - 7,745 - $ 90,863 $ 443 $ 90,420 $ - At December 31, 2016 Quoted prices Significant in active other Significant markets for observable unobservable December 31, identical assets inputs inputs 2016 (Level 1) (Level 2) (Level 3) Assets Money market funds (i) $ 80 $ 80 $ - $ - U.S. government agency bonds (ii) 9,515 - 9,515 - Bank certificates of deposit (ii) 11,113 - 11,113 - Commercial paper (ii) 17,010 - 17,010 - Corporate notes (ii) 45,124 - 45,124 - Asset-backed securities (ii) 6,506 - 6,506 - $ 89,348 $ 80 $ 89,268 $ - (i) Included in cash and cash equivalents with a maturity of three months or less from date of purchase on the condensed consolidated balance sheets. (ii) Included in short-term investments on the condensed 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, U.S. government bonds, bank certificates 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. There were no transfers between levels within the fair value hierarchy during the periods presented.

Intangible Assets

Intangible Assets	6 Months Ended
	Jun. 30, 2017
Intangible Assets
Intangible Assets	Note 5. Intangible Assets GMP Vision Solutions intangible asset 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 exchange for 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 sub-licenses 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 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. For each of the three month periods ended June 30, 2017 and 2016 , the Company recorded amortization expense of $0.9 million and for each of the six month periods ended June 30, 2017 and 2016, the Company recorded amortization expense of $1.8 million related to this intangible asset in cost of sales. Other 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. In 2016 and 2017, the Company entered into agreements with two additional international distributors pursuant to which their distribution rights with the Company were terminated effective as of January 1, 2017 and March 31, 2017, respectively. 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 respective countries that had comprised their territories. Management recorded the estimated fair value of the non-compete provisions as intangible assets. As of June 30, 2017, the non-compete intangible assets totaled $0.5 million and will be amortized on a straight-line basis to selling, general and administrative expense over the one to two year periods. For the three month periods ended June 30, 2017 and 2016, the Company recorded amortization expense related to the non-compete provisions of approximately $66,000 and $23,000, respectively, and for the six month periods ended June 30, 2017 and 2016, the Company recorded amortization expense related to the non-compete provisions of approximately $129,000 and $46,000, respectively. The following reflects the composition of intangible assets, net (in thousands): June 30, December 31, 2017 2016 GMP royalty buyout $ 17,500 $ 17,500 Non-compete agreements 524 243 18,024 17,743 Accumulated amortization (12,995) (11,176) Total $ 5,029 $ 6,567 Weighted average amortization period (in months) 60 60 Estimated amortization expense will be $3.8 million in 2017 and $3.1 million in 2018 related to the above mentioned intangible assets .

Stock-Based Compensation

Stock-Based Compensation	6 Months Ended
	Jun. 30, 2017
Stock-Based Compensation.
Stock-Based Compensation	Note 6. Stock-Based Compensation 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 2015 Stock Plan permits grants of restricted stock units (RSUs). The Company has historically granted stock options, but the Company began to award RSU grants to certain employees during the three months ended June 30, 2017. RSU awards vest 25% on each of the first, second, third and fourth anniversaries of the grant date. The following table summarizes stock option and restricted stock activity under the 2001 Stock Plan, 2011 Number of Shares Underlying Options/ RSUs Outstanding at December 31, 2016 5,911 Granted 1,877 Exercised (453) Canceled/forfeited/expired (79) Outstanding at June 30, 2017 7,256 Exercisable at June 30, 2017 3,334 The following table summarizes the allocation of stock-based compensation related to stock options and restricted stock units in the accompanying condensed consolidated statements of operations (in thousands): Three Months Ended Six Months Ended June 30, June 30, 2017 2016 2017 2016 Cost of sales $ 141 $ 44 $ 270 $ 82 Selling, general and administrative 3,470 1,391 5,784 2,503 Research and development 1,123 613 1,881 880 Total $ 4,734 $ 2,048 $ 7,935 $ 3,465 Stock-based awards to employees and nonemployees 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 option awards 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 option awards made to nonemployees are remeasured at each reporting period using the Black-Scholes option pricing model. Compensation expense for these stock option awards is determined by applying the remeasured fair values to the shares that have vested during a period. The fair value of each option award is estimated on the date of grant using a Black-Scholes option valuation model applying the assumptions noted in the following table. The weighted average assumptions used to estimate the fair value of options granted to employees were as follows: Three Months Ended Six Months Ended June 30, June 30, 2017 2016 2017 2016 Risk-free interest rate 2.01 % 1.45 % 2.13 % 1.58 % Expected dividend yield % % % % Expected volatility 46.6 % % 46.6 % 52.8 % Expected term (in years) 6.09 5.78 6.09 6.05 The fair value of RSU awards made to employees and nonemployees is equal to the closing market price of the Company’s common stock on the grant date.

Income Taxes

Income Taxes	6 Months Ended
	Jun. 30, 2017
Income Taxes
Income Taxes	Note 7. Income Taxes The provision for income taxes is determined using an estimated annual effective tax rate which is generally lower than the U.S. federal statutory rate primarily due to the utilization of net operating loss carryforwards, the benefit of which had not previously been recognized due to the Company’s full valuation allowance. The annual effective tax rate may be subject to fluctuations during the year as new information is obtained which may affect the assumptions used to estimate the annual effective tax rate, including factors such as expected utilization of net operating loss carryforwards, changes in or the interpretation of tax laws in jurisdictions where the Company conducts business, the Company’s expansion into new states or foreign countries , and the amount of valuation allowances against deferred tax assets. For the three and six month periods ended June 30, 2017, the Company recorded a provision for income taxes of $22,000 and $77,000, respectively which was primarily comprised of federal alternative minimum tax and state income taxes. The Company recorded no provision for income taxes in the three and six month periods ended June 30, 2016. The Company recognizes deferred tax assets and liabilities for temporary differences between the financial reporting basis and the tax basis of its assets and liabilities along with net operating loss and tax credit carryforwards. The Company records a valuation allowance against its deferred tax assets to reduce the net carrying value to an amount it believes is more likely than not to be realized. When the Company establishes or reduces the valuation allowance against its deferred tax assets, the provision for income taxes will increase or decrease, respectively, in the period such determination is made. For each of the three and six month periods ended June 30, 2017 and 2016, the Company had established a valuation allowance for all deferred tax assets. 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.

Commitments and Contingencies

Commitments and Contingencies	6 Months Ended
	Jun. 30, 2017
Commitments and Contingencies
Commitments and Contingencies	Note 8. Commitments and Contingencies 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. The Company leases two adjacent facilities located in San Clemente, California, both of which are subject to leases that expire on December 31, 2021. The agreements each contain an option to extend the leases for up to two additional three-year periods at market rates. The total square footage of both facilities equals approximately 77,000. The lease landlord agreed to provide the Company with a tenant improvement allowance after January 1, 2017 in the amount of the cost of any leasehold improvements, not to exceed approximately $264,000 upon the Company providing the necessary documentation evidencing the costs of the allowable leasehold improvements. The Company’s foreign subsidiaries lease office space totaling less than 3,000 square feet. The Company recorded deferred rent of $253,000 and $219,000 as of June 30, 2017 and December 31, 2016, respectively, in conjunction with its facilities lease agreements. For each of the three month periods ended June 30, 2017 and 2016, rent expense was $0.3 million and for the six month periods ended June 30, 2017 and 2016, rent expense was $0.6 million and $0.5 million, respectively. Future minimum payments under the aforementioned non-cancelable operating leases for each of the five succeeding years are as follows (in thousands): Remainder of 2017 $ 799 2018 1,443 2019 1,294 2020 1,231 2021 1,246 Thereafter - $ 6,013 Purchase Commitments The Company is a party to various purchase arrangements related to components used in production and research and development activities. As of June 30, 2017 and December 31, 2016, the Company had non-cancelable, firm purchase commitments with certain vendors totaling approximately $ 0.6 million and $3.7 million, respectively, 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 UC Agreement, Glaukos agreed to pay to the University 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 $0.5 million. This ongoing product payment terminates on the date that the last of the Patent Rights expires, which is currently expected to be in 2022. For the three month periods ended June 30, 2017 and 2016, the Company recorded approximately $1. 0 million and $0. 7 million, respectively, in cost of sales in connection with this product payment obligation and approximately $1.9 million and $1.3 million, respectively, in cost of sales in connection with this product payment obligation for the six month periods ended June 30, 2017 and 2016. Executive Deferred Compensation Plan Effective April 1, 2017, the Company established a deferred compensation plan (the Deferred Compensation Plan) for eligible senior level employees. The plan is designed to permit eligible employees to make elective deferrals of compensation to which he or she will become entitled in the future. The Company also established a rabbi trust that serves as an investment to shadow the Deferred Compensation Plan liability. The investments of the rabbi trust consist of company-owned life insurance policies (COLIs). The fair value of the Deferred Compensation Plan liability, included in other liabilities on the condensed consolidated balance sheets, was approximately $0.2 million and zero as of June 30, 2017 and December 31, 2016, respectively, and the cash surrender value of the COLIs, included in deposits and other assets on the condensed consolidated balance sheets, which reflects the underlying assets at fair value, was approximately $0.2 million and zero as of June 30, 2017 and December 31, 2016, respectively.

Business Segment Information

Business Segment Information	6 Months Ended
	Jun. 30, 2017
Business Segment Information
Business Segment Information	Note 9. Business Segment Information 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. Three months ended Six months ended June 30, June 30, Geographic Net Sales Information (in thousands) 2017 2016 2017 2016 United States $ 37,075 $ 26,299 $ 68,952 $ 47,841 International 4,210 2,257 8,240 3,807 Total net sales $ 41,285 $ 28,556 $ 77,192 $ 51,648

Summary of Significant Accoun16

Summary of Significant Accounting Policies (Policies)	6 Months Ended
	Jun. 30, 2017
Summary of Significant Accounting Policies
Use of estimates	Use of estimates The preparation of the financial statements in conformity with GAAP requires management to make 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 condensed 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 condensed 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 in stockholders’ equity. For the three month periods ended June 30, 2017 and 2016, the Company reported losses from foreign currency translation adjustments of approximately $0. 3 million and $0.1 million, respectively, and for the six month periods ended June 30, 2017 and 2016, the Company reported losses from foreign currency translation adjustments of approximately $0.7 million and $0.4 million, respectively. Realized gains and losses resulting from foreign currency transactions are included in selling, general and administrative expense in the condensed consolidated statements of operations. For the three month periods ended June 30, 2017 and 2016, the Company reported foreign currency transaction gains (losses) of $95,000 and $(38,000), respectively, and for the six month periods ended June 30, 2017 and 2016, the Company reported foreign currency transaction gains of $112,000 and $23,000, respectively. Transaction gains and losses that arise from exchange rate fluctuations on transactions denominated in a currency other than the functional currency, including gains and losses on intercompany loans, are included in the condensed consolidated statements of operations. For the three month periods ended June 30, 2017 and 2016, the Company reported net foreign currency transaction gains of $0.4 million and $42,000, respectively, and for the six month periods ended June 30, 2017 and 2016, the Company reported net foreign currency transaction gains of $0.7 million and $0.3 million, 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, corporate bonds, 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. 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 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 June 30, 2017 or December 31, 2016. 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.
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 is 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.
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 June 30, 2017 .
Net (loss) income per share	Net (loss) income per share Basic net (loss) income per share is calculated by dividing the net (loss) income by the weighted average number of common shares that were outstanding for the period, without consideration for common stock equivalents. In quarters when the Company realizes net income, diluted net income per share is calculated by dividing the net income by the weighted average number of common shares plus the sum of the weighted average number of dilutive common stock equivalents outstanding for the period determined using the treasury stock method. Common stock equivalents are comprised of stock warrants and stock options outstanding under the Company’s stock option plans. In quarters when the Company realizes a net loss, no common stock equivalents are included in the calculation of weighted average number of dilutive common stock equivalents as the effect of applying the treasury stock method is considered anti-dilutive. The Company’s computation of net (loss) income per share is as follows (in thousands, except per share amounts): Three Months Ended Six Months Ended June 30, June 30, 2017 2016 2017 2016 Numerator: Net (loss) income - basic $ (3,301) $ 2,332 $ (2,423) $ 3,229 Denominator: Weighted average number of common shares outstanding - basic 34,322 32,652 34,234 32,477 Common stock equivalents from outstanding common stock options - 3,510 - 3,485 Common stock equivalents for ESPP - 20 - 12 Common stock equivalents from outstanding common stock warrants - - - 1 Weighted average number of common shares outstanding - diluted 34,322 36,182 34,234 35,975 Basic net (loss) income per share $ (0.10) $ 0.07 $ (0.07) $ 0.10 Diluted net (loss) income per share $ (0.10) $ 0.06 $ (0.07) $ 0.09 Potentially dilutive securities not included in the calculation of diluted net (loss) income per share because to do so would be anti-dilutive were as follows (in thousands): Three Months Ended Six Months Ended June 30, June 30, 2017 2016 2017 2016 Stock options outstanding 5,737 2,151 5,805 2,157 ESPP 19 - 19 - 5,756 2,151 5,824 2,157
Recent accounting pronouncements	Recent accounting pronouncements In May 2014, the Financial Accounting Standards Board (FASB) issued guidance in Accounting Standards Update (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. The Company expects to complete its assessment process, including finalizing a transition method for adoption, by the end of the fourth quarter of 2017 and expects to complete its implementation process prior to the adoption of this ASU on January 1, 2018. 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 condensed 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 adopted ASU 2016-09 in its first quarter 2017. As a result of the prospective adoption of ASU 2016-09 on January 1, 2017, excess tax benefits of $13.1 million were recorded to the Company’s net operating loss carryover resulting in an increase in the Company’s deferred tax assets with an identical increase in the 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 condensed 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 ASC 606, Revenue Recognition - 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 condensed consolidated financial statements.

Summary of Significant Accoun17

Summary of Significant Accounting Policies (Tables)	6 Months Ended
	Jun. 30, 2017
Summary of Significant Accounting Policies
Schedule of the Company's net income per share	The Company’s computation of net (loss) income per share is as follows (in thousands, except per share amounts): Three Months Ended Six Months Ended June 30, June 30, 2017 2016 2017 2016 Numerator: Net (loss) income - basic $ (3,301) $ 2,332 $ (2,423) $ 3,229 Denominator: Weighted average number of common shares outstanding - basic 34,322 32,652 34,234 32,477 Common stock equivalents from outstanding common stock options - 3,510 - 3,485 Common stock equivalents for ESPP - 20 - 12 Common stock equivalents from outstanding common stock warrants - - - 1 Weighted average number of common shares outstanding - diluted 34,322 36,182 34,234 35,975 Basic net (loss) income per share $ (0.10) $ 0.07 $ (0.07) $ 0.10 Diluted net (loss) income per share $ (0.10) $ 0.06 $ (0.07) $ 0.09
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 (loss) income per share because to do so would be anti-dilutive were as follows (in thousands): Three Months Ended Six Months Ended June 30, June 30, 2017 2016 2017 2016 Stock options outstanding 5,737 2,151 5,805 2,157 ESPP 19 - 19 - 5,756 2,151 5,824 2,157

Balance Sheet Details (Tables)

Balance Sheet Details (Tables)	6 Months Ended
	Jun. 30, 2017
Balance Sheet Details
Schedule of short-term investments	Short-term investments consisted of the following (in thousands): At June 30, 2017 Maturity Amortized cost Unrealized Unrealized Estimated (in years) or cost gains losses fair value U.S. government bonds 1-3 $ 1,799 $ - $ (12) $ 1,787 U.S. government agency bonds less than 3 3,697 - (12) 3,685 Bank certificates of deposit less than 1 15,450 8 - 15,458 Commercial paper less than 1 8,327 1 - 8,328 Corporate notes less than 3 53,435 20 (39) 53,416 Asset-backed securities less than 2 7,747 1 (2) 7,746 $ 90,455 $ 30 $ (65) $ 90,420 At December 31, 2016 Maturity Amortized cost Unrealized Unrealized Estimated (in years) or cost gains losses fair value U.S. government agency bonds 1-3 $ 9,535 $ 2 $ (22) $ 9,515 Bank certificates of deposit less than 2 11,101 13 (1) 11,113 Commercial paper less than 1 17,011 1 (2) 17,010 Corporate notes less than 3 45,178 7 (61) 45,124 Asset-backed securities less than 2 6,503 3 — 6,506 $ 89,328 $ 26 $ (86) $ 89,268
Schedule of accounts receivable, net	Accounts receivable consisted of the following (in thousands): June 30, December 31, 2017 2016 Accounts receivable $ 17,196 $ 14,800 Less allowance for doubtful accounts (494) (495) $ 16,702 $ 14,305
Schedule of inventory	Inventory consisted of the following (in thousands): June 30, December 31, 2017 2016 Finished goods $ 3,047 $ 2,014 Work in process 2,656 2,105 Raw material 2,679 2,725 $ 8,382 $ 6,844
Schedule of accrued liabilities	Accrued liabilities consisted of the following (in thousands): June 30, December 31, 2017 2016 Accrued contract payments (see Note 5) $ 1,025 $ 823 Accrued sales commissions 382 1,641 Accrued clinical study payments 783 1,167 Accrued bonuses 4,863 6,122 Accrued vacation benefits 1,731 1,382 Accrued Employee Stock Purchase Plan deductions 491 4 Other accrued liabilities 3,786 2,772 $ 13,061 $ 13,911

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	6 Months Ended
	Jun. 30, 2017
Fair Value Measurements
Schedule of the Company's financial assets and financial liabilities measured at fair value on a recurring basis	At June 30, 2017 Quoted prices Significant in active other Significant markets for observable unobservable June 30, identical assets inputs inputs 2017 (Level 1) (Level 2) (Level 3) Assets Money market funds (i) $ 443 $ 443 $ - $ - U.S. government agency bonds (ii) 3,686 - 3,686 - U.S. government bonds (ii) 1,787 - 1,787 - Bank certificates of deposit (ii) 15,458 - 15,458 - Commercial paper (ii) 8,328 - 8,328 - Corporate notes (ii) 53,416 - 53,416 - Asset-backed securities (ii) 7,745 - 7,745 - $ 90,863 $ 443 $ 90,420 $ - At December 31, 2016 Quoted prices Significant in active other Significant markets for observable unobservable December 31, identical assets inputs inputs 2016 (Level 1) (Level 2) (Level 3) Assets Money market funds (i) $ 80 $ 80 $ - $ - U.S. government agency bonds (ii) 9,515 - 9,515 - Bank certificates of deposit (ii) 11,113 - 11,113 - Commercial paper (ii) 17,010 - 17,010 - Corporate notes (ii) 45,124 - 45,124 - Asset-backed securities (ii) 6,506 - 6,506 - $ 89,348 $ 80 $ 89,268 $ - (i) Included in cash and cash equivalents with a maturity of three months or less from date of purchase on the condensed consolidated balance sheets. (ii) Included in short-term investments on the condensed consolidated balance sheets.

Intangible Assets (Tables)

Intangible Assets (Tables)	6 Months Ended
	Jun. 30, 2017
Intangible Assets
Schedule reflecting the composition of intangible assets, net	The following reflects the composition of intangible assets, net (in thousands): June 30, December 31, 2017 2016 GMP royalty buyout $ 17,500 $ 17,500 Non-compete agreements 524 243 18,024 17,743 Accumulated amortization (12,995) (11,176) Total $ 5,029 $ 6,567 Weighted average amortization period (in months) 60 60

Stock-Based Compensation (Table

Stock-Based Compensation (Tables)	6 Months Ended
	Jun. 30, 2017
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 and restricted stock activity under the 2001 Stock Plan, 2011 Number of Shares Underlying Options/ RSUs Outstanding at December 31, 2016 5,911 Granted 1,877 Exercised (453) Canceled/forfeited/expired (79) Outstanding at June 30, 2017 7,256 Exercisable at June 30, 2017 3,334
Schedule summarizing the allocation of stock-based compensation	The following table summarizes the allocation of stock-based compensation related to stock options and restricted stock units in the accompanying condensed consolidated statements of operations (in thousands): Three Months Ended Six Months Ended June 30, June 30, 2017 2016 2017 2016 Cost of sales $ 141 $ 44 $ 270 $ 82 Selling, general and administrative 3,470 1,391 5,784 2,503 Research and development 1,123 613 1,881 880 Total $ 4,734 $ 2,048 $ 7,935 $ 3,465
Schedule of the weighted-average assumptions used to estimate the fair value of options granted to employees	Three Months Ended Six Months Ended June 30, June 30, 2017 2016 2017 2016 Risk-free interest rate 2.01 % 1.45 % 2.13 % 1.58 % Expected dividend yield % % % % Expected volatility 46.6 % % 46.6 % 52.8 % Expected term (in years) 6.09 5.78 6.09 6.05

Commitments and Contingencies (

Commitments and Contingencies (Tables)	6 Months Ended
	Jun. 30, 2017
Commitments and Contingencies
Schedule of future minimum lease payments under noncancelable operating leases	Future minimum payments under the aforementioned non-cancelable operating leases for each of the five succeeding years are as follows (in thousands): Remainder of 2017 $ 799 2018 1,443 2019 1,294 2020 1,231 2021 1,246 Thereafter - $ 6,013

Business Segment Information (T

Business Segment Information (Tables)	6 Months Ended
	Jun. 30, 2017
Business Segment Information
Schedule of Geographic Net Sales Information	Three months ended Six months ended June 30, June 30, Geographic Net Sales Information (in thousands) 2017 2016 2017 2016 United States $ 37,075 $ 26,299 $ 68,952 $ 47,841 International 4,210 2,257 8,240 3,807 Total net sales $ 41,285 $ 28,556 $ 77,192 $ 51,648

Organization and Basis of Pre24

Organization and Basis of Presentation (Details) - USD ($) $ in Thousands	Apr. 12, 2017	Jun. 30, 2017	Jun. 30, 2017
Acquisition of IOP Sensor System
In-process research and development expensed		$ 5,320	$ 5,320
Purchase Agreement for an IOP System | DOSE Medical Corporation
Acquisition of IOP Sensor System
Cash payments for the acquisition of certain assets of related party	$ 5,500
Maximum performance-based consideration	9,500
In-process research and development expensed	5,300
Capitalized fixed assets	$ 200

Summary of Significant Accoun25

Summary of Significant Accounting Policies - Summary (Details) - USD ($) $ / shares in Units, shares in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016	Dec. 31, 2016
Foreign Currency Translation
Loss from foreign currency translation adjustments	$ 300,000	$ 100,000	$ 700,000	$ 400,000
Foreign currency transaction gains realized	95,000	(38,000)	112,000	23,000
Foreign currency transaction gains	400,000	42,000	700,000	300,000
Trading Securities
Trading securities	0		$ 0		$ 0
Revenue Recognition
Warranty period from date of shipment			1 year
Numerator:
Net income (loss) attributable to Glaukos Corporation - basic	$ (3,301,000)	$ 2,332,000	$ (2,423,000)	$ 3,229,000
Denominator:
Weighted average number of common shares outstanding - basic	34,322	32,652	34,234	32,477
Common stock equivalents from outstanding common stock options		3,510		3,485
Common stock equivalents for ESPP		20		12
Common stock equivalents from outstanding common stock warrants				1
Weighted average number of common shares outstanding - diluted	34,322	36,182	34,234	35,975
Basic net (loss) income per share, attributable to Glaukos Corporation stockholders	$ (0.10)	$ 0.07	$ (0.07)	$ 0.10
Diluted net (loss) income per share, attributable to Glaukos Corporation stockholders	$ (0.10)	$ 0.06	$ (0.07)	$ 0.09

Summary of Significant Accoun26

Summary of Significant Accounting Policies - Antidilutive Securities (Details) - shares shares in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Anti-dilutive securities
Anti-dilutive securities excluded from computation of earnings per share	5,756	2,151	5,824	2,157
Stock options
Anti-dilutive securities
Anti-dilutive securities excluded from computation of earnings per share	5,737	2,151	5,805	2,157
ESPP
Anti-dilutive securities
Anti-dilutive securities excluded from computation of earnings per share	19		19

Summary of Significant Accoun27

Summary of Significant Accounting Policies - Recent Accounting Pronouncements (Details) - ASU No. 2016-09 Compensation - Stock Compensation $ in Millions	Jan. 01, 2017USD ($)
Recent Accounting Pronouncements
Deferred tax assets	$ 13.1
Deferred tax valuation allowance	$ 13.1

Balance Sheet Details - Short-T

Balance Sheet Details - Short-Term Investments (Details) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2017	Dec. 31, 2016
Short-term investments
Amortized cost	$ 90,455	$ 89,328
Unrealized gains	30	26
Unrealized losses	(65)	(86)
Estimated fair value	90,420	89,268
U.S. Government bonds
Short-term investments
Amortized cost	1,799
Unrealized losses	(12)
Estimated fair value	$ 1,787
U.S. Government bonds | Minimum
Short-term investments
Maturity	1 year
U.S. Government bonds | Maximum
Short-term investments
Maturity	3 years
U.S. Government agency bonds
Short-term investments
Amortized cost	$ 3,697	9,535
Unrealized gains		2
Unrealized losses	(12)	(22)
Estimated fair value	$ 3,685	$ 9,515
U.S. Government agency bonds | Minimum
Short-term investments
Maturity		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	$ 15,450	$ 11,101
Unrealized gains	8	13
Unrealized losses		(1)
Estimated fair value	$ 15,458	$ 11,113
Bank certificates of deposit | Maximum
Short-term investments
Maturity	1 year	2 years
Commercial paper
Short-term investments
Amortized cost	$ 8,327	$ 17,011
Unrealized gains	1	1
Unrealized losses		(2)
Estimated fair value	$ 8,328	$ 17,010
Commercial paper | Maximum
Short-term investments
Maturity	1 year	1 year
Corporate notes
Short-term investments
Amortized cost	$ 53,435	$ 45,178
Unrealized gains	20	7
Unrealized losses	(39)	(61)
Estimated fair value	$ 53,416	$ 45,124
Corporate notes | Maximum
Short-term investments
Maturity	3 years	3 years
Asset-backed securities
Short-term investments
Amortized cost	$ 7,747	$ 6,503
Unrealized gains	1	3
Unrealized losses	(2)
Estimated fair value	$ 7,746	$ 6,506
Asset-backed securities | Maximum
Short-term investments
Maturity	2 years	2 years

Balance Sheet Details - Other (

Balance Sheet Details - Other (Details) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Accounts Receivable, Net
Accounts receivable	$ 17,196	$ 14,800
Less allowance for doubtful accounts	(494)	(495)
Accounts receivable, net	16,702	14,305
Inventory
Finished goods	3,047	2,014
Work in process	2,656	2,105
Raw materials	2,679	2,725
Total inventory	8,382	6,844
Accrued Liabilities
Accrued contract payments (see Note 5)	1,025	823
Accrued sales commissions	382	1,641
Accrued clinical study payments	783	1,167
Accrued bonuses	4,863	6,122
Accrued vacation benefits	1,731	1,382
Accrued Employee Stock Purchase Plan deductions	491	4
Other accrued liabilities	3,786	2,772
Total accrued liabilities	$ 13,061	$ 13,911

Fair Value Measurements - Fair

Fair Value Measurements - Fair Value Hierarchy (Details) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Assets
Total assets	$ 90,863	$ 89,348
Fair Value, Inputs, Level 1
Assets
Total assets	443	80
Fair Value, Inputs, Level 2
Assets
Total assets	90,420	89,268
Money market funds
Assets
Total assets	443	80
Money market funds | Fair Value, Inputs, Level 1
Assets
Total assets	443	80
U.S. Government agency bonds
Assets
Total assets	3,686	9,515
U.S. Government agency bonds | Fair Value, Inputs, Level 2
Assets
Total assets	3,686	9,515
U.S. Government bonds
Assets
Total assets	1,787
U.S. Government bonds | Fair Value, Inputs, Level 2
Assets
Total assets	1,787
Bank certificates of deposit
Assets
Total assets	15,458	11,113
Bank certificates of deposit | Fair Value, Inputs, Level 2
Assets
Total assets	15,458	11,113
Commercial paper.
Assets
Total assets	8,328	17,010
Commercial paper. | Fair Value, Inputs, Level 2
Assets
Total assets	8,328	17,010
Corporate notes
Assets
Total assets	53,416	45,124
Corporate notes | Fair Value, Inputs, Level 2
Assets
Total assets	53,416	45,124
Asset-backed securities
Assets
Total assets	7,745	6,506
Asset-backed securities | Fair Value, Inputs, Level 2
Assets
Total assets	$ 7,745	$ 6,506

Fair Value Measurements - Warra

Fair Value Measurements - Warrants and other (Details) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Fair Value Measurements
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

Intangible Assets - Summary and

Intangible Assets - Summary and Other (Details)	1 Months Ended	3 Months Ended		6 Months Ended		12 Months Ended		18 Months Ended
	Nov. 30, 2013USD ($)	Jun. 30, 2017USD ($)	Jun. 30, 2016USD ($)	Jun. 30, 2017USD ($)	Jun. 30, 2016USD ($)	Dec. 31, 2016USD ($)	Dec. 31, 2015item	Jun. 30, 2017USD ($)item
Composition of intangible assets
Total gross amount		$ 18,024,000		$ 18,024,000		$ 17,743,000		$ 18,024,000
Accumulated amortization		(12,995,000)		(12,995,000)		(11,176,000)		(12,995,000)
Total		5,029,000		$ 5,029,000		$ 6,567,000		$ 5,029,000
Useful life/amortization period				60 months		60 months
Amortization expense		900,000	$ 900,000	$ 1,800,000	$ 1,800,000
Number of international distributors | item								2
Estimated amortization expense
2,017		3,800,000		3,800,000				$ 3,800,000
2,018		3,100,000		3,100,000				3,100,000
GMP royalty buyout
Composition of intangible assets
Total gross amount		17,500,000		17,500,000		$ 17,500,000		17,500,000
Non-compete agreements
Composition of intangible assets
Total gross amount		524,000		524,000		$ 243,000		$ 524,000
Amortization expense		$ 66,000	$ 23,000	129,000	$ 46,000
Number of international distributors | item							2
The amount of fair value of the non-compete provisions recorded as intangible asset				$ 500,000
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
Buy-out Agreement with GMP | GMP royalty buyout
Composition of intangible assets
Intangible asset purchase amount	$ 17,500,000
Useful life/amortization period	5 years
Buy-out Agreement with GMP | GMP Note Parties
Composition of intangible assets
Face amount at time of issuance	$ 17,500,000

Stock-Based Compensation - Stoc

Stock-Based Compensation - Stock Option Activity (Details) shares in Thousands	6 Months Ended
	Jun. 30, 2017itemshares
Stock-based compensation
Number of stock plans | item	4
Number of Shares Underlying Options
Outstanding at beginning of period (in shares)	5,911
Granted (in shares)	1,877
Exercised (in shares)	(453)
Canceled/forfeited/expired (in shares)	(79)
Outstanding at end of period (in shares)	7,256
Exercisable at end of period (in shares)	3,334
RSU | First anniversary
Stock-based compensation
Vesting (as a percent)	25.00%
RSU | Second anniversary
Stock-based compensation
Vesting (as a percent)	25.00%
RSU | Third anniversary
Stock-based compensation
Vesting (as a percent)	25.00%
RSU | Fourth anniversary
Stock-based compensation
Vesting (as a percent)	25.00%

Stock-Based Compensation - Allo

Stock-Based Compensation - Allocation of Expense (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Allocation of stock-based compensation
Stock-based compensation expense	$ 4,734	$ 2,048	$ 7,935	$ 3,465
Cost of sales
Allocation of stock-based compensation
Stock-based compensation expense	141	44	270	82
Selling, general and administrative
Allocation of stock-based compensation
Stock-based compensation expense	3,470	1,391	5,784	2,503
Research and development
Allocation of stock-based compensation
Stock-based compensation expense	$ 1,123	$ 613	$ 1,881	$ 880

Stock-Based Compensation - Fair

Stock-Based Compensation - Fair Value Assumptions (Details) - Employee stock options	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Stock-based awards to employees - weighted average assumptions used to estimate fair value of options granted
Risk-free interest rate (as a percent)	2.01%	1.45%	2.13%	1.58%
Expected dividend yield (as a percent)	0.00%	0.00%	0.00%	0.00%
Expected volatility rate (as a percent)	46.60%	53.20%	46.60%	52.80%
Expected term	6 years 1 month 2 days	5 years 9 months 11 days	6 years 1 month 2 days	6 years 18 days

Income Taxes (Details)

Income Taxes (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Income Taxes
Provision for income taxes	$ 22,000	$ 0	$ 77,000	$ 0

Commitments and Contingencies -

Commitments and Contingencies - Leases (Details) $ in Thousands	Jan. 01, 2017USD ($)	Jun. 30, 2017USD ($)ft²	Jun. 30, 2016USD ($)	Jun. 30, 2017USD ($)ft²item	Jun. 30, 2016USD ($)	Dec. 31, 2016USD ($)
Operating Leases
Deferred rent		$ 253		$ 253		$ 219
Rent expense		300	$ 300	600	$ 500
Future minimum lease payments under noncancelable operating leases
Reminder of 2017		799		799
2,018		1,443		1,443
2,019		1,294		1,294
2,020		1,231		1,231
2,021		1,246		1,246
Total future minimum payments		6,013		6,013
Purchase commitments
Purchase commitment due within one year		600		600		$ 3,700
Purchase commitment due beyond one year		$ 0		$ 0
Domestic Office Leases
Operating Leases
The number of adjacent facilities rented | item				2
Number of lease renewal periods | item				2
Optional lease extension term				3 years
Area of leased space | ft²		77,000		77,000
Domestic Office Leases | Maximum
Operating Leases
Tenant improvement allowance	$ 264
Foreign Subsidiaries Office Leases
Operating Leases
Area of leased space | ft²		3,000		3,000

Commitments and Contingencies38

Commitments and Contingencies - Other (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016	Dec. 31, 2016
Other commitments
Deferred compensation plan liability	$ 0.2		$ 0.2		$ 0
Deferred compensation plan assets	0.2		0.2		$ 0
Agreement with the Regents
Other commitments
Minimum required annual payment of the commitment obligation, based on net sales of current and future products	0.5		0.5
Cost of sales | Agreement with the Regents
Other commitments
Commitment obligation payments	$ 1	$ 0.7	$ 1.9	$ 1.3

Business Segment Information (D

Business Segment Information (Details) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017USD ($)	Jun. 30, 2016USD ($)	Jun. 30, 2017USD ($)segment	Jun. 30, 2016USD ($)
Business Segment Information
Number of Reportable Segments | segment			1
Total net sales	$ 41,285	$ 28,556	$ 77,192	$ 51,648
United States
Business Segment Information
Total net sales	37,075	26,299	68,952	47,841
International
Business Segment Information
Total net sales	$ 4,210	$ 2,257	$ 8,240	$ 3,807