Cardiff Oncology (CRDF) 10-Q 10 Aug 15 2015 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2015	Jul. 31, 2015
Document and Entity Information
Entity Registrant Name	Trovagene, Inc.
Entity Central Index Key	1,213,037
Document Type	10-Q
Document Period End Date	Jun. 30, 2015
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		29,622,602
Document Fiscal Year Focus	2,015
Document Fiscal Period Focus	Q2

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($)	Jun. 30, 2015	Dec. 31, 2014
Current assets:
Cash and cash equivalents	$ 41,293,784	$ 27,293,798
Accounts receivable	99,717	56,694
Prepaid expenses and other assets	508,408	369,259
Total current assets	41,901,909	27,719,751
Property and equipment, net	1,378,941	840,387
Other assets	362,946	336,708
Total Assets	43,643,796	28,896,846
Current liabilities:
Accounts payable	1,110,749	747,799
Accrued expenses	1,519,212	1,841,808
Current portion of long-term debt	2,320,084	1,898,548
Total current liabilities	4,950,045	4,488,155
Long-term debt, less current portion	12,881,673	13,053,117
Derivative financial instruments	7,693,138	3,006,021
Total Liabilities	$ 25,524,856	$ 20,547,293
Commitments and contingencies (Note 8)
Stockholders' equity
Preferred stock, $0.001 par value, 20,000,000 shares authorized; 60,600 shares outstanding at June 30, 2015 and December 31, 2014: designated as Series A Convertible Preferred Stock with liquidation preference of $606,000 at June 30, 2015 and December 31, 2014	$ 60	$ 60
Common stock, $0.0001 par value, 150,000,000 shares authorized; 24,872,602, and 18,915,794 shares issued and outstanding at June 30, 2015 and December 31, 2014, respectively	2,487	1,891
Additional paid-in capital	116,874,837	89,739,511
Accumulated deficit	(98,758,444)	(81,391,909)
Total stockholders' equity	18,118,940	8,349,553
Total liabilities and stockholders' equity	$ 43,643,796	$ 28,896,846

CONDENSED CONSOLIDATED BALANCE3

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($)	Jun. 30, 2015	Dec. 31, 2014
CONDENSED CONSOLIDATED BALANCE SHEETS
Preferred stock, par value (in dollars per share)	$ 0.001	$ 0.001
Preferred stock, shares authorized	20,000,000	20,000,000
Preferred stock, shares outstanding	60,600	60,600
Series A Convertible Preferred Stock, liquidation preference (in dollars)	$ 606,000	$ 606,000
Common stock, par value (in dollars per share)	$ 0.0001	$ 0.0001
Common stock, shares authorized	150,000,000	150,000,000
Common stock, shares issued	24,872,602	18,915,794
Common stock, shares outstanding	24,872,602	18,915,794

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
Royalty income	$ 46,826	$ 45,628	$ 171,630	$ 156,581
License fees		10,000		10,000
Diagnostic service revenue	2,520		4,686
Total revenues	49,346	55,628	176,316	166,581
Costs and expenses:
Cost of revenue	80,030		256,455
Research and development	2,684,157	1,397,173	4,881,816	2,839,694
Selling and marketing	1,915,850	589,814	2,710,503	1,159,404
General and administrative	2,001,516	1,310,239	3,807,501	2,668,719
Total operating expenses	6,681,553	3,297,226	11,656,275	6,667,817
Loss from operations	(6,632,207)	(3,241,598)	(11,479,959)	(6,501,236)
Interest income	9,251	2,079	15,620	4,470
Interest expense	(390,503)	(54,714)	(780,341)	(64,210)
(Loss) gain from change in fair value of derivative instruments-warrants	(3,175,754)	2,217,142	(5,122,482)	2,249,988
Other income, net	9,179		12,747	44,101
Net loss and comprehensive loss	(10,180,034)	(1,077,091)	(17,354,415)	(4,266,887)
Preferred stock dividend	(6,060)	(1,685)	(12,120)	(10,895)
Net loss and comprehensive loss attributable to common stockholders	$ (10,186,094)	$ (1,078,776)	$ (17,366,535)	$ (4,277,782)
Net loss per common share - basic	$ (0.41)	$ (0.06)	$ (0.75)	$ (0.23)
Net loss per common share - diluted	$ (0.41)	$ (0.17)	$ (0.75)	$ (0.34)
Weighted average shares outstanding - basic	24,592,883	18,902,782	23,212,963	18,902,782
Weighted average shares outstanding - diluted	24,592,883	19,232,759	23,212,963	19,067,770

CONDENSED CONSOLIDATED STATEME5

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)	6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
Operating activities
Net loss	$ (17,354,415)	$ (4,266,887)
Adjustments to reconcile net loss to net cash used in operating activities:
Net gain on disposal of fixed assets	(3,568)	(44,101)
Depreciation and amortization	152,979	111,300
Stock based compensation expense	1,835,187	979,260
Amortization of debt costs	193,066
Accretion of discount on debt	57,026
Loss (gain) from the change in fair value of derivative instruments - warrants	5,122,482	(2,249,988)
Changes in operating assets and liabilities:
Increase in other assets	(26,238)	(10,452)
(Increase) decrease in accounts receivable	(43,023)	19,084
Increase in prepaid expenses	(139,149)	(142,966)
Increase in accounts payable and accrued expenses	28,234	152,605
Net cash used in operating activities	(10,177,419)	(5,452,145)
Investing activities:
Capital expenditures, net	(687,965)	(133,658)
Net cash used in investing activities	(687,965)	(133,658)
Financing activities:
Proceeds from sales of common stock, net of expenses	23,816,292
Proceeds from exercise of options	564,051
Net borrowings under debt agreements		14,422,759
Proceeds from exercise of warrants	485,027
Net cash provided by financing activities	24,865,370	14,422,759
Net change in cash and equivalents	13,999,986	8,836,956
Cash and cash equivalents-Beginning of period	27,293,798	25,836,937
Cash and cash equivalents-End of period	41,293,784	34,673,893
Supplementary disclosure of cash flow activity:
Cash paid for taxes	800	2,400
Cash paid for interest	530,250	71,756
Supplemental disclosure of non-cash investing and financing activities:
Preferred stock dividends accrued	12,120	10,895
Warrants issued in connection with Loan and Security Agreement		$ 235,857
Reclassification of derivative financial instruments to additional paid in capital	$ 435,365

Organization and Basis of Prese

Organization and Basis of Presentation	6 Months Ended
	Jun. 30, 2015
Organization and Basis of Presentation
Organization and Basis of Presentation	1. Organization and Basis of Presentation Business Organization and Overview On April 26, 2002, the Company was incorporated in the State of Florida. On July 2, 2004, the Company acquired Xenomics, a California corporation, which was in business to develop and commercialize urine-based molecular diagnostics technology. In 2007, the Company changed its fiscal year end from January 31 to December 31. In January 2010, the Company re-domesticated its state of incorporation from Florida to Delaware and changed its name to Trovagene, Inc. In June 2012, the Company’s common stock was listed on The NASDAQ Capital Market under the ticker symbol TROV. Trovagene, Inc. (“Trovagene” or the “Company”) is a molecular diagnostic company that focuses on the development and commercialization of a proprietary urine-based cell-free molecular diagnostic technology for use in disease detection and monitoring across a variety of medical disciplines. Trovagene’s primary internal focus is to leverage its novel urine-based molecular diagnostic platform to facilitate improvements in the field of oncology, while the Company’s external focus includes entering into collaborations to develop the Company’s technology in areas such as infectious disease, transplant medicine, and prenatal genetics. The Company’s goal is to improve treatment outcomes for cancer patients using its proprietary technology to detect and quantitatively monitor cell-free DNA in urine. Circulating tumor DNA (“ctDNA”) is a subtype of cell-free DNA, and represents the mutant cell-free DNA that we use to detect and monitor cancer. Basis of Presentation The accompanying consolidated financial statements of Trovagene, which include its wholly owned subsidiaries Xenomics, Inc., a California corporation and Etherogen, Inc., a Delaware corporation, have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”). All intercompany balances and transactions have been eliminated. The accompanying unaudited interim condensed consolidated financial statements have been prepared in accordance with GAAP and the rules and regulations of the Securities and Exchange Commission (“SEC”) related to a quarterly report on Form 10-Q. Certain information and note disclosures normally included in annual financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to those rules and regulations. The unaudited interim condensed consolidated financial statements reflect all adjustments which, in the opinion of management, are necessary for a fair statement of the results for the periods presented. All such adjustments are of a normal and recurring nature. The operating results presented in these unaudited interim condensed consolidated financial statements are not necessarily indicative of the results that may be expected for any future periods. These unaudited interim condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and the notes thereto for the year ended December 31, 2014 included in the Company’s annual report on Form 10-K filed with the SEC on March 12, 2015.

Summary of Significant Accounti

Summary of Significant Accounting Policies	6 Months Ended
	Jun. 30, 2015
Summary of Significant Accounting Policies
Summary of Significant Accounting Policies	2. Summary of Significant Accounting Policies Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Revenue Recognition Revenue is recognized when persuasive evidence that an arrangement exists, delivery has occurred, the price is fixed or determinable, and collection is reasonably assured. Milestone, Royalty and License Revenues The Company licenses and sublicenses its patent rights to healthcare companies, medical laboratories and biotechnology partners. These agreements may involve multiple elements such as license fees, royalties and milestone payments. Revenue is recognized when the criteria described above have been met as well as the following: · Up-front nonrefundable license fees pursuant to agreements under which the Company has no continuing performance obligations are recognized as revenues on the effective date of the agreement and when collection is reasonably assured. · Minimum royalties are recognized as earned, and royalties in excess of minimum amounts are recognized upon receipt of payment when collection is assured. · Milestone payments are recognized when both the milestone is achieved and the related payment is received. Diagnostic Service Revenues Revenue for clinical laboratory tests may come from several sources, including commercial third-party payors, such as insurance companies and health maintenance organizations, government payors, such as Medicare and Medicaid in the United States, patient self-pay and, in some cases, from hospitals or referring laboratories who, in turn, might bill third-party payors for testing. The Company is recognizing diagnostic service revenue on the cash collection basis until such time as it is able to properly estimate collections on third party reimbursements. Derivative Financial Instruments—Warrants The Company has issued common stock warrants in connection with the execution of certain equity financings. Such warrants are classified as derivative liabilities under the provisions of FASB ASC 815 Derivatives and Hedging (“ASC 815”) and are recorded at their fair market value as of each reporting period. Such warrants do not meet the exemption that a contract should not be considered a derivative instrument if it is (1) indexed to its own stock and (2) classified in stockholders’ equity. Changes in fair value of derivative liabilities are recorded in the consolidated statement of operations under the caption “Change in fair value of derivative instruments.” The fair value of warrants is determined using the Black-Scholes option-pricing model using assumptions regarding volatility of Trovagene’s common share price, remaining life of the warrant, and risk-free interest rates at each period end. The Company thus uses model-derived valuations where inputs are observable in active markets to determine the fair value and accordingly classifies such warrants in Level 3 per ASC 820, Fair Value Measurements . At June 30, 2015, and December 31, 2014, the fair value of these warrants was $7,693,138 and $3,006,021, respectively, and were included in the derivative financial instruments liability on the balance sheet. Net Loss Per Share Basic and diluted net loss per share is presented in conformity with ASC Topic 260, Earnings per Share , for all periods presented. In accordance with this guidance, basic net loss per common share was determined by dividing net loss applicable to common stockholders by the weighted-average common shares outstanding during the period. Preferred dividends are included in income available to common stockholders in the computation of basic and diluted earnings per share. Diluted net loss per share is computed by dividing the net loss by the weighted average number of common shares and common share equivalents outstanding for the period. Common share equivalents are only included when their effect is dilutive. The following table sets forth the computation of basic and diluted earnings per share: Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 Numerator: Net loss attributable to common shareholders $ ) $ ) $ ) $ ) Adjustment for change in fair value of derivative instruments - warrants — ) — ) Net loss used for diluted loss per share $ ) $ ) $ ) $ ) Denominator for basic and diluted net loss per share: Weighted average shares used to compute basic loss per share Adjustments to reflect assumed exercise of warrants — — Weighted average shares used to compute diluted net loss per share Net loss per share attributable to common stockholders: Basic $ ) $ ) $ ) $ ) Diluted $ ) $ ) $ ) $ ) The following table sets forth the outstanding potentially dilutive securities that have been excluded in the calculation of diluted net loss per share because their effect was anti-dilutive: June 30, 2015 2014 Options to purchase Common Stock Warrants to purchase Common Stock Series A Convertible Preferred Stock Recent Accounting Pronouncements In April 2015, a new accounting standard was issued that amends the presentation for debt issuance costs. Upon adoption, such costs shall be presented on our consolidated balance sheets as a direct deduction from the carrying amount of the related debt liability and not as a deferred charge presented in other assets on our consolidated balance sheets. This new standard will be effective for interim and annual periods beginning on January 1, 2016, and is required to be retrospectively adopted. Adoption of this new standard is not expected to have a material impact on our consolidated balance sheets or related disclosures. In August 2014, the FASB issued an amendment to the accounting guidance related to the evaluation of an entity to continue as a going concern. The amendment establishes management’s responsibility to evaluate whether there is substantial doubt about an entity’s ability to continue as a going concern in connection with preparing financial statements for each annual and interim reporting period. The amendment also gives guidance to determine whether to disclose information about relevant conditions and events when there is substantial doubt about an entity’s ability to continue as a going concern. The amended guidance is effective prospectively for fiscal years beginning after December 15, 2016. The new guidance will not have an impact on the Company’s financial position, results of operations or cash flows. In May 2014, the FASB issued Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers (“ASU 2014-09”). The standard provides companies with a single model for accounting for revenue arising from contracts with customers and supersedes current revenue recognition guidance, including industry-specific revenue guidance. The core principle of the model is to recognize revenue when control of the goods or services transfers to the customer, as opposed to recognizing revenue when the risks and rewards transfer to the customer under the existing revenue guidance. ASU 2014-09 is effective for annual reporting periods beginning after December 15, 2016. Early adoption is not permitted. The guidance permits companies to either apply the requirements retrospectively to all prior periods presented, or apply the requirements in the year of adoption, through a cumulative adjustment. The Company is in the process of evaluating the impact of adoption on its consolidated financial statements.

Fair Value Measurements

Fair Value Measurements	6 Months Ended
	Jun. 30, 2015
Fair Value Measurements
Fair Value Measurements	3. Fair Value Measurements The following table presents the Company’s assets and liabilities that are measured and recognized at fair value on a recurring basis classified under the appropriate level of the fair value hierarchy as of June 30, 2015 and December 31, 2014: Fair Value Measurements at June 30, 2015 Quoted Prices in Active Markets for Identical Assets and Liabilities (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Assets: Money market fund (1) $ $ — $ — $ Total Assets $ $ — $ — $ Liabilities: Derivative liabilities related to warrants $ — $ — $ $ Total Liabilities $ — $ — $ $ Fair Value Measurements at December 31, 2014 Quoted Prices in Active Markets for Identical Assets and Liabilities (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Assets: Money market fund (1) $ $ — $ — $ Total Assets $ $ — $ — $ Liabilities: Derivative liabilities related to warrants — $ — $ $ Total Liabilities $ — $ — $ $ (1) Included as a component of cash and cash equivalents on the accompanying condensed consolidated balance sheets. The following table sets forth a summary of changes in the fair value of the Company’s Level 3 liabilities for the six months ended June 30, 2015: Description Balance at December 31, 2014 Fair Value of Warrants Reclassified to Additional Paid in Capital Unrealized Loss Balance at June 30, 2015 Derivative liabilities related to Warrants $ $ ) $ $ The unrealized loss on the derivative liabilities is recorded as a change in fair value of derivative liabilities in the Company’s condensed consolidated statement of operations. A financial instrument’s level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. At each reporting period, the Company reviews the assets and liabilities that are subject to ASC Topic 815-40. At each reporting period, all assets and liabilities for which the fair value measurement is based on significant unobservable inputs or instruments which trade infrequently and therefore have little or no price transparency are classified as Level 3.

Property and Equipment

Property and Equipment	6 Months Ended
	Jun. 30, 2015
Property and Equipment
Property and Equipment	4. Property and Equipment Property and equipment consist of the following: As of June 30, As of December 31, 2015 2014 Furniture and office equipment $ $ Leasehold Improvements Laboratory equipment Less—accumulated depreciation and amortization ) ) Property and equipment, net $ $

Debt

Debt	6 Months Ended
	Jun. 30, 2015
Debt
Debt	5. Debt Equipment Line of Credit In June 2013, the Company entered into a Loan and Security Agreement (“Equipment Line of Credit”) with Silicon Valley Bank that provided for cash borrowings for equipment of up to $1.0 million, secured by the equipment financed. Under the terms of the agreement, interest was the greater of 5% or 4.6% above the U.S. Treasury Note as of the date of each borrowing. Interest only payments were due on borrowings through December 31, 2013, with both interest and principal payments commencing in January 2014. Any equipment advances after December 31, 2013 were subject to principal and interest payments immediately over a 30-month period following the advance. In June 2014, the equipment loan was paid in full, the Company had no further obligations thereunder, and the bank released its security interest in such assets. The Company recorded approximately $61,000 in interest expense related to the Equipment Line of Credit during the six months ended June 30, 2014. Loan and Security Agreement In June 2014, the Company entered into a $15,000,000 loan and security agreement (“Agreement”) under which the lenders provided the Company a term loan, which was funded at closing. The interest rate is 7.07% per annum. Under the Agreement, the Company makes interest only payments on the outstanding amount of the loan on a monthly basis through July 2015, after which equal monthly payments of principal and interest are due until the loan maturity date of July 1, 2018. Included in the Agreement was a provision to extend the interest only payment to February 1, 2016 upon the Company’s receipt of unrestricted net cash proceeds from the sale of equity securities of not less than $30 million by June 30, 2015. In June 2015, the Company entered into an amendment to the Agreement (“Amendment”), which reduced the amount of unrestricted net cash proceeds to not less than $21 million from the sale of equity securities to qualify for an interest extension. The Company met the conditions in the Amendment related to the interest extension, as a result, the interest only payments that were to expire on August 1, 2015 have been extended for six months to February 1, 2016, when both interest and principal payments will commence. The loan is secured by a security interest in all of the Company’s assets except intellectual property, which is subject to a negative pledge. In connection with the loan, the lenders received a warrant to purchase an aggregate 85,470 shares of the Company’s common stock at an exercise price of $3.51 per share exercisable for ten years from the date of issuance. The original value of the warrants, totaling $235,857, was recorded as debt discount and additional paid-in capital as the warrants were equity classified. As of June 30, 2015, a warrant to purchase 42,735 shares of common stock remains outstanding. At the Company’s option, it may prepay all of the outstanding principal balance, subject to certain pre-payment fees ranging from 1% to 3% of the prepayment amount. In the event of a final payment of the loans under the loan agreement, either in the event of repayment of the loan at maturity or upon any prepayment, the Company is obligated to pay the amortized portion of the final fee of $1,050,000. The Company is also subject to certain affirmative and negative covenants under the Agreement, including limitations on its ability to: undergo certain change of control events; convey, sell, lease, license, transfer or otherwise dispose of any equipment financed by loans under the loan agreement; create, incur, assume, guarantee or be liable with respect to indebtedness, subject to certain exceptions; grant liens on any equipment financed under the loan agreement; and make or permit any payment on specified subordinated debt. In addition, under the Agreement, subject to certain exceptions, the Company is required to maintain with the lender its primary operating, other deposit and securities accounts. Furthermore, under the amendment to the Agreement, the Company is required to be in compliance with healthcare laws and regulations and terms and conditions of healthcare permits. The Company was in compliance with all covenants as of June 30, 2015. As of June 30, 2015, amounts due under the Agreement include $2,320,084 in current liabilities and $12,881,673 in long-term liabilities. The Company recorded $780,341 in interest expense related to the Agreement during the six months ended June 30, 2015. Future minimum principal payments under the loan and security agreement are as follows: June 30, 2015 $ — 2016 2017 2018 Total long-term obligations $

Derivative Financial Instrument

Derivative Financial Instruments - Warrants	6 Months Ended
	Jun. 30, 2015
Derivative Financial Instruments - Warrants
Derivative Financial Instruments - Warrants	6. Derivative Financial Instruments — Warrants Based upon the Company’s analysis of the criteria contained in ASC Topic 815-40, Contracts in Entity’s Own Equity, Trovagene determined that certain warrants issued in connection with the execution of certain equity financings must be recorded as derivative liabilities. In accordance with ASC Topic 815-40, the warrants are also being re-measured at each balance sheet date based on estimated fair value, and any resultant change in fair value is being recorded in the Company’s statement of operations. The Company estimates the fair value of these warrants using the Black-Scholes option pricing model. The range of assumptions used to determine the fair value of the warrants valued using the Black-Scholes option pricing model during the periods indicated was: Six Months Ended June 30, 2015 2014 Estimated fair value of Trovagene common stock $ 6.81-10.15 $ 3.50-5.73 Expected warrant term 3.5-3.8 years 4.5-4.8 years Risk-free interest rate 0.89-1.01 % 1.62-1.73 % Expected volatility 75-77 % 74-83 % Dividend yield % % Expected volatility is based on the volatility of a peer group of companies with attributes similar to Trovagene. The warrants have a transferability provision and based on guidance provided in SAB 107 for instruments issued with such a provision, Trovagene used the full contractual term as the expected term of the warrants. The risk free rate is based on the U.S. Treasury security rates consistent with the expected remaining term of the warrants at each balance sheet date. The following table sets forth the components of changes in the Company’s derivative financial instruments liability balance, valued using the Black-Scholes option pricing method, for the periods indicated. Date Description Warrants Derivative Instrument Liability December 31, 2014 Balance of derivative financial instruments liability $ Exercised warrants ) ) Change in fair value of warrants during the period recognized as a loss in the condensed consolidated statement of operations — June 30, 2015 Balance of derivative financial instruments liability $

Stockholders' Equity

Stockholders' Equity	6 Months Ended
	Jun. 30, 2015
Stockholders' Equity
Stockholders' Equity	7. Stockholders’ Equity Common Stock On January 25, 2013, the Company filed a Form S-3 Registration Statement to offer and sell in one or more offerings, any combination of common stock, preferred stock, warrants, or units having an aggregate initial offering price not exceeding $150,000,000. The preferred stock, warrants, and units may be convertible or exercisable or exchangeable for common stock or preferred stock or other Trovagene securities. This form was declared effective on February 4, 2013. In addition, in connection with the Form S-3, the Company entered into an agreement with Cantor Fitzgerald & Co. (“Agent”) on January 25, 2013 to issue and sell up to $30,000,000 of shares of common stock through the Agent. As payment for its services, the Agent is entitled to a 3% commission on gross proceeds. During the six month period ended June 30, 2015, the Company issued a total of 5,956,808 shares of Common Stock. The Company received gross proceeds of approximately $23.0 million from the sale of 5,111,110 shares of its common stock through an underwritten public offering in February 2015. The Company also received gross proceeds of approximately $2.8 million from the sale of 285,421 shares of its common stock at a weighted average price of $9.66 under the agreement with the Agent. In addition, 170,166 shares were issued upon exercise of options for a weighted average price of $3.31, 112,975 shares were issued upon exercise of warrants for a weighted average price of $4.29, and 277,136 shares were issued upon net exercise of 449,403 warrants at a weighted average exercise price of $3.05. Stock Options Stock-based compensation expense related to Trovagene options have been recognized in operating results as follow: Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 Included in research and development expense $ $ $ $ Included in cost of revenue — — Included in selling and marketing expense Included in general and administrative expense Total stock-based compensation expense $ $ $ $ The unrecognized compensation cost related to non-vested stock options outstanding at June 30, 2015 and 2014, net of expected forfeitures, was $8,918,735 and $3,364,401, respectively, both to be recognized over a weighted-average remaining vesting period of approximately three years. The weighted average remaining contractual term of outstanding options as of June 30, 2015 was approximately eight years. The estimated fair value of stock option awards was determined on the date of grant using the Black-Scholes option valuation model with the following assumptions during the following periods indicated: Six Months Ended June 30, 2015 2014 Risk-free interest rate 1.60-2.15 % 1.46-1.69 % Dividend yield % % Expected volatility 75-77 % 74-84 % Expected term 6.2 years 5.0 years A summary of stock option activity and of changes in stock options outstanding under the Trovagene Stock Option Plan is presented below: Total Options Weighted Average Exercise Price Per Share Intrinsic Value Balance outstanding, December 31, 2014 $ $ Granted Exercised ) Cancelled / Forfeited ) Expired ) Balance outstanding, June 30, 2015 Exercisable at June 30, 2015 The Trovagene Inc. 2014 Equity Incentive Plan (the “2014 EIP”) authorizing up to 2,500,000 shares of common stock for issuance under the Plan was approved by the Board of Directors in June 2014 and approved by the Shareholders at the September 17, 2014 Annual Shareholders’ Meeting. An additional 2,500,000 shares of common stock for issuance was authorized by the Board of Directors in June 2015 and approved by the Shareholders at June 10, 2015 Annual Shareholders’ Meeting. As of June 30, 2015 there were 2,563,332 shares available for issuance under the 2014 EIP. Warrants A summary of warrant activity and changes in warrants outstanding, including both liability and equity classifications is presented below: Total Warrants Weighted Average Exercise Price Per Share Weighted Average Remaining Contractual Term Balance outstanding, December 31, 2014 $ Exercised ) Balance outstanding, June 30, 2015

Commitments and Contingencies

Commitments and Contingencies	6 Months Ended
	Jun. 30, 2015
Commitments and Contingencies.
Commitments and Contingencies	8. Commitments and Contingencies Executive and Consulting Agreements The Company has longer-term contractual commitments with various consultants and employees, including the Company’s Chief Executive Officer (“CEO”) and Chief Financial Officer (“CFO”). The executive agreements with the CEO, CFO and Chief Commercial Officer (“CCO”) provide for severance payments. The executive agreement with the CEO also provides for a bonus payment in cash or stock upon the earlier of meeting certain trading volumes and market price of Trovagene’s common stock for a minimum period of ninety days or in the event of a change in control where the Company’s per share enterprise value equal or exceeds $7.50. If the market price and volume target is realized, the bonus is approximately $3.5 million. If a change of control occurs at the targeted enterprise values, the bonus is equal to 4% of the enterprise value. Lease Agreement The Company currently leases approximately 13,000 square feet of office space at a monthly rental rate of approximately $30,000. On June 11, 2015, the Company entered into an amendment to the lease agreement which will expand the square footage of its office space to approximately 22,600 square feet at a monthly rental rate of approximately $60,000. The new lease will expire on December 31, 2021. The new monthly rental rate will not be effective until the Company commences business operations in the expanded premises. Research and Development Agreements The Company has entered into a variety of collaboration and specimen transfer agreements relating to its development efforts. Included in research and development expense, the Company has recorded approximately $423,000 for the six months ended June 30, 2015 relating to services provided by the collaborators in connection with these agreements. The Company is a party to various agreements under which it licenses technology on an exclusive basis in the field of human diagnostics. License fees are generally calculated as a percentage of product revenues, with rates that vary by agreement. To date, payments have not been material.

Subsequent Events

Subsequent Events	6 Months Ended
	Jun. 30, 2015
Subsequent Events
Subsequent Events	9. Subsequent Events Public Offering On July 22, 2015, the Company closed an underwritten public offering of 4,600,000 shares of its common stock, which includes 600,000 shares that were issued upon the full exercise by the underwriters of their overallotment option. The offering price was $8.75 per share and net proceeds to the Company were approximately $37.4 million.

Summary of Significant Accoun15

Summary of Significant Accounting Policies (Policies)	6 Months Ended
	Jun. 30, 2015
Summary of Significant Accounting Policies
Use of Estimates	Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.
Revenue Recognition	Revenue Recognition Revenue is recognized when persuasive evidence that an arrangement exists, delivery has occurred, the price is fixed or determinable, and collection is reasonably assured. Milestone, Royalty and License Revenues The Company licenses and sublicenses its patent rights to healthcare companies, medical laboratories and biotechnology partners. These agreements may involve multiple elements such as license fees, royalties and milestone payments. Revenue is recognized when the criteria described above have been met as well as the following: · Up-front nonrefundable license fees pursuant to agreements under which the Company has no continuing performance obligations are recognized as revenues on the effective date of the agreement and when collection is reasonably assured. · Minimum royalties are recognized as earned, and royalties in excess of minimum amounts are recognized upon receipt of payment when collection is assured. · Milestone payments are recognized when both the milestone is achieved and the related payment is received. Diagnostic Service Revenues Revenue for clinical laboratory tests may come from several sources, including commercial third-party payors, such as insurance companies and health maintenance organizations, government payors, such as Medicare and Medicaid in the United States, patient self-pay and, in some cases, from hospitals or referring laboratories who, in turn, might bill third-party payors for testing. The Company is recognizing diagnostic service revenue on the cash collection basis until such time as it is able to properly estimate collections on third party reimbursements.
Derivative Financial Instruments-Warrants	Derivative Financial Instruments—Warrants The Company has issued common stock warrants in connection with the execution of certain equity financings. Such warrants are classified as derivative liabilities under the provisions of FASB ASC 815 Derivatives and Hedging (“ASC 815”) and are recorded at their fair market value as of each reporting period. Such warrants do not meet the exemption that a contract should not be considered a derivative instrument if it is (1) indexed to its own stock and (2) classified in stockholders’ equity. Changes in fair value of derivative liabilities are recorded in the consolidated statement of operations under the caption “Change in fair value of derivative instruments.” The fair value of warrants is determined using the Black-Scholes option-pricing model using assumptions regarding volatility of Trovagene’s common share price, remaining life of the warrant, and risk-free interest rates at each period end. The Company thus uses model-derived valuations where inputs are observable in active markets to determine the fair value and accordingly classifies such warrants in Level 3 per ASC 820, Fair Value Measurements . At June 30, 2015, and December 31, 2014, the fair value of these warrants was $7,693,138 and $3,006,021, respectively, and were included in the derivative financial instruments liability on the balance sheet.
Net Loss Per Share	Net Loss Per Share Basic and diluted net loss per share is presented in conformity with ASC Topic 260, Earnings per Share , for all periods presented. In accordance with this guidance, basic net loss per common share was determined by dividing net loss applicable to common stockholders by the weighted-average common shares outstanding during the period. Preferred dividends are included in income available to common stockholders in the computation of basic and diluted earnings per share. Diluted net loss per share is computed by dividing the net loss by the weighted average number of common shares and common share equivalents outstanding for the period. Common share equivalents are only included when their effect is dilutive. The following table sets forth the computation of basic and diluted earnings per share: Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 Numerator: Net loss attributable to common shareholders $ ) $ ) $ ) $ ) Adjustment for change in fair value of derivative instruments - warrants — ) — ) Net loss used for diluted loss per share $ ) $ ) $ ) $ ) Denominator for basic and diluted net loss per share: Weighted average shares used to compute basic loss per share Adjustments to reflect assumed exercise of warrants — — Weighted average shares used to compute diluted net loss per share Net loss per share attributable to common stockholders: Basic $ ) $ ) $ ) $ ) Diluted $ ) $ ) $ ) $ ) The following table sets forth the outstanding potentially dilutive securities that have been excluded in the calculation of diluted net loss per share because their effect was anti-dilutive: June 30, 2015 2014 Options to purchase Common Stock Warrants to purchase Common Stock Series A Convertible Preferred Stock
Recent Accounting Pronouncements	Recent Accounting Pronouncements In April 2015, a new accounting standard was issued that amends the presentation for debt issuance costs. Upon adoption, such costs shall be presented on our consolidated balance sheets as a direct deduction from the carrying amount of the related debt liability and not as a deferred charge presented in other assets on our consolidated balance sheets. This new standard will be effective for interim and annual periods beginning on January 1, 2016, and is required to be retrospectively adopted. Adoption of this new standard is not expected to have a material impact on our consolidated balance sheets or related disclosures. In August 2014, the FASB issued an amendment to the accounting guidance related to the evaluation of an entity to continue as a going concern. The amendment establishes management’s responsibility to evaluate whether there is substantial doubt about an entity’s ability to continue as a going concern in connection with preparing financial statements for each annual and interim reporting period. The amendment also gives guidance to determine whether to disclose information about relevant conditions and events when there is substantial doubt about an entity’s ability to continue as a going concern. The amended guidance is effective prospectively for fiscal years beginning after December 15, 2016. The new guidance will not have an impact on the Company’s financial position, results of operations or cash flows. In May 2014, the FASB issued Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers (“ASU 2014-09”). The standard provides companies with a single model for accounting for revenue arising from contracts with customers and supersedes current revenue recognition guidance, including industry-specific revenue guidance. The core principle of the model is to recognize revenue when control of the goods or services transfers to the customer, as opposed to recognizing revenue when the risks and rewards transfer to the customer under the existing revenue guidance. ASU 2014-09 is effective for annual reporting periods beginning after December 15, 2016. Early adoption is not permitted. The guidance permits companies to either apply the requirements retrospectively to all prior periods presented, or apply the requirements in the year of adoption, through a cumulative adjustment. The Company is in the process of evaluating the impact of adoption on its consolidated financial statements.

Summary of Significant Accoun16

Summary of Significant Accounting Policies (Tables)	6 Months Ended
	Jun. 30, 2015
Summary of Significant Accounting Policies
Schedule of computation of basic and diluted earnings per share	Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 Numerator: Net loss attributable to common shareholders $ ) $ ) $ ) $ ) Adjustment for change in fair value of derivative instruments - warrants — ) — ) Net loss used for diluted loss per share $ ) $ ) $ ) $ ) Denominator for basic and diluted net loss per share: Weighted average shares used to compute basic loss per share Adjustments to reflect assumed exercise of warrants — — Weighted average shares used to compute diluted net loss per share Net loss per share attributable to common stockholders: Basic $ ) $ ) $ ) $ ) Diluted $ ) $ ) $ ) $ )
Schedule of antidilutive securities excluded from the calculation of diluted net loss per share	June 30, 2015 2014 Options to purchase Common Stock Warrants to purchase Common Stock Series A Convertible Preferred Stock

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	6 Months Ended
	Jun. 30, 2015
Fair Value Measurements
Schedule of the Company's assets and liabilities that are measured and recognized at fair value on a recurring basis classified under the appropriate level of the fair value hierarchy	Fair Value Measurements at June 30, 2015 Quoted Prices in Active Markets for Identical Assets and Liabilities (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Assets: Money market fund (1) $ $ — $ — $ Total Assets $ $ — $ — $ Liabilities: Derivative liabilities related to warrants $ — $ — $ $ Total Liabilities $ — $ — $ $ Fair Value Measurements at December 31, 2014 Quoted Prices in Active Markets for Identical Assets and Liabilities (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Assets: Money market fund (1) $ $ — $ — $ Total Assets $ $ — $ — $ Liabilities: Derivative liabilities related to warrants — $ — $ $ Total Liabilities $ — $ — $ $ (1) Included as a component of cash and cash equivalents on the accompanying condensed consolidated balance sheets.
Schedule of changes in the fair value of the Company's Level 3 liabilities	Description Balance at December 31, 2014 Fair Value of Warrants Reclassified to Additional Paid in Capital Unrealized Loss Balance at June 30, 2015 Derivative liabilities related to Warrants $ $ ) $ $

Property and Equipment (Tables)

Property and Equipment (Tables)	6 Months Ended
	Jun. 30, 2015
Property and Equipment
Schedule of components of property and equipment	As of June 30, As of December 31, 2015 2014 Furniture and office equipment $ $ Leasehold Improvements Laboratory equipment Less—accumulated depreciation and amortization ) ) Property and equipment, net $ $

Debt (Tables)

Debt (Tables)	6 Months Ended
	Jun. 30, 2015
Debt
Schedule of future minimum principal payments under loan and security agreement	June 30, 2015 $ — 2016 2017 2018 Total long-term obligations $

Derivative Financial Instrume20

Derivative Financial Instruments - Warrants (Tables) - Black Scholes Option Pricing Method	6 Months Ended
	Jun. 30, 2015
Derivative financial instruments
Schedule of assumptions used to determine the fair value of the warrants	Six Months Ended June 30, 2015 2014 Estimated fair value of Trovagene common stock $ 6.81-10.15 $ 3.50-5.73 Expected warrant term 3.5-3.8 years 4.5-4.8 years Risk-free interest rate 0.89-1.01 % 1.62-1.73 % Expected volatility 75-77 % 74-83 % Dividend yield % %
Schedule of components of changes in the Company's derivative financial instruments liability balance	Date Description Warrants Derivative Instrument Liability December 31, 2014 Balance of derivative financial instruments liability $ Exercised warrants ) ) Change in fair value of warrants during the period recognized as a loss in the condensed consolidated statement of operations — June 30, 2015 Balance of derivative financial instruments liability $

Stockholders' Equity (Tables)

Stockholders' Equity (Tables)	6 Months Ended
	Jun. 30, 2015
Stockholders' Equity
Schedule of stock-based compensation expense	Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 Included in research and development expense $ $ $ $ Included in cost of revenue — — Included in selling and marketing expense Included in general and administrative expense Total stock-based compensation expense $ $ $ $
Schedule of assumptions to estimate fair value of stock option awards	Six Months Ended June 30, 2015 2014 Risk-free interest rate 1.60-2.15 % 1.46-1.69 % Dividend yield % % Expected volatility 75-77 % 74-84 % Expected term 6.2 years 5.0 years
Summary of stock option activity and of changes in stock options outstanding	Total Options Weighted Average Exercise Price Per Share Intrinsic Value Balance outstanding, December 31, 2014 $ $ Granted Exercised ) Cancelled / Forfeited ) Expired ) Balance outstanding, June 30, 2015 Exercisable at June 30, 2015
Summary of warrant activity and changes in warrants outstanding	Total Warrants Weighted Average Exercise Price Per Share Weighted Average Remaining Contractual Term Balance outstanding, December 31, 2014 $ Exercised ) Balance outstanding, June 30, 2015

Summary of Significant Accoun22

Summary of Significant Accounting Policies (Details) - USD ($)	Jun. 30, 2015	Dec. 31, 2014
Derivative financial instruments
Derivative liabilities related to warrants	$ 7,693,138	$ 3,006,021
Warrants | Black Scholes Option Pricing Method
Derivative financial instruments
Derivative liabilities related to warrants	$ 7,693,138	$ 3,006,021

Summary of Significant Accoun23

Summary of Significant Accounting Policies (Details 2) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Numerator:
Net loss	$ (10,186,094)	$ (1,078,776)	$ (17,366,535)	$ (4,277,782)
Adjustment for change in fair value of derivative instruments		(2,217,142)		(2,217,142)
Net loss used for diluted loss per share	$ (10,186,094)	$ (3,295,918)	$ (17,366,535)	$ (6,494,924)
Denominator for basic and diluted net loss per share:
Weighted average shares used to compute basic loss per share	24,592,883	18,902,782	23,212,963	18,902,782
Adjustments to reflect assumed exercise of warrants		329,977		164,988
Weighted average shares used to compute diluted net loss	24,592,883	19,232,759	23,212,963	19,067,770
Net loss per share attributable to common stockholders:
Net loss per common share - basic	$ (0.41)	$ (0.06)	$ (0.75)	$ (0.23)
Net loss per common share - diluted	$ (0.41)	$ (0.17)	$ (0.75)	$ (0.34)

Summary of Significant Accoun24

Summary of Significant Accounting Policies (Details 3) - shares	6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
Net Loss Per Share
Antidilutive securities excluded from the calculation of basic and diluted loss per share (in shares)	11,664,964	9,248,699
Stock options
Net Loss Per Share
Antidilutive securities excluded from the calculation of basic and diluted loss per share (in shares)	5,898,597	3,897,249
Warrants
Net Loss Per Share
Antidilutive securities excluded from the calculation of basic and diluted loss per share (in shares)	5,703,242	5,288,325
Series A Convertible Preferred Stock
Net Loss Per Share
Antidilutive securities excluded from the calculation of basic and diluted loss per share (in shares)	63,125	63,125

Fair Value Measurements (Detail

Fair Value Measurements (Details) - USD ($)	Jun. 30, 2015	Dec. 31, 2014
Liabilities:
Derivative liabilities related to warrants	$ 7,693,138	$ 3,006,021
Recurring basis | Quoted Prices in Active Markets for Identical Assets and Liabilities (Level 1)
Assets:
Money market fund	41,057,557	27,123,587
Total Assets	41,057,557	27,123,587
Recurring basis | Significant Unobservable Inputs (Level 3)
Liabilities:
Derivative liabilities related to warrants	7,693,138	3,006,021
Total Liabilities	7,693,138	3,006,021
Recurring basis | Total
Assets:
Money market fund	41,057,557	27,123,587
Total Assets	41,057,557	27,123,587
Liabilities:
Derivative liabilities related to warrants	7,693,138	3,006,021
Total Liabilities	$ 7,693,138	$ 3,006,021

Fair Value Measurements (Deta26

Fair Value Measurements (Details 2) - Warrants	6 Months Ended
	Jun. 30, 2015USD ($)
Reconciliation of the beginning and ending balances
Balance at the beginning of the period	$ 3,006,021
Fair Value of Warrants Reclassified to Additional Paid in Capital	(435,365)
Unrealized Loss	5,122,482
Balance at the end of the period	$ 7,693,138

Property and Equipment (Details

Property and Equipment (Details) - USD ($)	Jun. 30, 2015	Dec. 31, 2014
Property, equipment and depreciation and amortization
Property and equipment, gross	$ 2,023,085	$ 1,374,257
Less-accumulated depreciation and amortization	(644,144)	(533,870)
Property and equipment, net	1,378,941	840,387
Furniture and office equipment
Property, equipment and depreciation and amortization
Property and equipment, gross	455,169	365,955
Leasehold Improvements
Property, equipment and depreciation and amortization
Property and equipment, gross	39,401	39,401
Laboratory equipment
Property, equipment and depreciation and amortization
Property and equipment, gross	$ 1,528,515	$ 968,901

Debt (Details)

Debt (Details) - USD ($)	Aug. 01, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014	Dec. 31, 2014	Jun. 30, 2013
Debt
Amount borrowed included in current liabilities			$ 2,320,084		$ 1,898,548
Amount borrowed, long-term liabilities			12,881,673		$ 13,053,117
Minimum unrestricted net cash proceeds required to extend the interest only payment to a later date			30,000,000
Amended minimum unrestricted net cash proceeds required to extend the interest only payment to a later date			21,000,000
Value of warrants recorded as debt discount and additional paid in capital		$ 235,857		$ 235,857
Subsequent Event
Debt
Period of extension for interest only payment	6 months
Secured Debt
Debt
Interest expenses recorded			780,341
Face value of term loan			$ 15,000,000
Interest rate (as a percent)		7.07%		7.07%
Number of common shares that can be purchased upon exercise of warrant		85,470	42,735	85,470
Exercise price of warrants (in dollars per share)		$ 3.51		$ 3.51
Exercisable term		10 years
Value of warrants recorded as debt discount and additional paid in capital		$ 235,857		$ 235,857
Amortized portion of final fee upon repayment			$ 1,050,000
Future minimum principal payments
2,016			5,195,650
2,017			6,064,315
2,018			3,740,035
Total long-term obligations			$ 15,000,000
Secured Debt | Minimum
Debt
Pre-payment fees (as a percent)			1.00%
Secured Debt | Maximum
Debt
Pre-payment fees (as a percent)			3.00%
Loan and Security Agreement
Debt
Maximum borrowing capacity of credit facility						$ 1,000,000
Fixed interest rate to determine variable interest (as a percent)			5.00%
Variable spread over U.S. Treasury Note rate of interest (as a percent)			4.60%
Period for payment of principal and interest after date of advances			30 months
Interest expenses recorded				$ 61,000

Derivative Financial Instrume29

Derivative Financial Instruments - Warrants (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Changes in the Company's derivative financial instruments liability balance
Balance of warrants outstanding at the beginning of the period (in shares)			6,265,620
Exercised (in shares)			(562,378)
Balance of warrants outstanding at the end of the period (in shares)	5,703,242		5,703,242
Balance of derivative financial instruments liability at the beginning of the period			$ 3,006,021
Derivative instrument liability			(435,365)
Change in fair value of warrants during the period recognized as a gain in the condensed consolidated statement of operations	$ 3,175,754	$ (2,217,142)	5,122,482	$ (2,249,988)
Balance of derivative financial instruments liability at the end of the period	$ 7,693,138		$ 7,693,138
Warrants | Black Scholes Option Pricing Method
Range of assumptions used to determine the fair value of warrants
Dividend yield (as a percent)			0.00%	0.00%
Changes in the Company's derivative financial instruments liability balance
Balance of warrants outstanding at the beginning of the period (in shares)			1,013,961
Exercised (in shares)			(46,666)
Balance of warrants outstanding at the end of the period (in shares)	967,295		967,295
Balance of derivative financial instruments liability at the beginning of the period			$ 3,006,021
Balance of derivative financial instruments liability at the end of the period	$ 7,693,138		$ 7,693,138
Warrants | Black Scholes Option Pricing Method | Minimum
Range of assumptions used to determine the fair value of warrants
Estimated fair value of Trovagene common stock (in dollars per share)			$ 6.81	$ 3.50
Expected warrant term			3 years 6 months	4 years 6 months
Risk-free interest rate (as a percent)			0.89%	1.62%
Expected volatility (as a percent)			75.00%	74.00%
Warrants | Black Scholes Option Pricing Method | Maximum
Range of assumptions used to determine the fair value of warrants
Estimated fair value of Trovagene common stock (in dollars per share)			$ 10.15	$ 5.73
Expected warrant term			3 years 9 months 18 days	4 years 9 months 18 days
Risk-free interest rate (as a percent)			1.01%	1.73%
Expected volatility (as a percent)			77.00%	83.00%

Stockholders' Equity (Details)

Stockholders' Equity (Details) - USD ($)	Jan. 25, 2013	Jun. 30, 2015
Proceeds from sales of common stock, net of expenses		$ 23,816,292
Exercised warrants (in shares)		562,378
Exercise price of warrants exercised (in dollars per share)		$ 3.30
Warrant exercise price of $3.05 per share
Exercised warrants (in shares)		449,403
Common Stock
Shares of common stock issued		5,956,808
Common Stock | Option exercise price, weighted average of $3.31 per share
Shares issued upon exercise of options		170,166
Exercise price of stock options exercised (in dollars per share)		$ 3.31
Common Stock | Warrant exercise price, weighted average of $4.29
Exercised warrants (in shares)		112,975
Exercise price of warrants (in dollars per share)		$ 4.29
Common Stock | Warrant exercise price of $3.05 per share
Issuance of common stock upon net exercise of warrant (in shares)		277,136
Exercise price of warrants (in dollars per share)		$ 3.05
Public Offering and Controlled Equity Offering | Underwritten Public Offering 2015 | Common Stock
Shares of common stock issued		5,111,110
Price per share (in dollars per share)		$ 9.66
Proceeds from sales of common stock, net of expenses		$ 23,000,000
Agent | Public Offering and Controlled Equity Offering
Commission as percentage of gross proceeds	3.00%
Agent | Public Offering and Controlled Equity Offering | Underwritten Public Offering 2015 | Common Stock
Shares of common stock issued		285,421
Proceeds from sales of common stock, net of expenses		$ 2,800,000
Maximum | Public Offering and Controlled Equity Offering
Aggregate initial offering price	$ 150,000,000
Maximum | Agent | Public Offering and Controlled Equity Offering
Aggregate initial offering price	$ 30,000,000

Stockholders' Equity (Details 2

Stockholders' Equity (Details 2) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Stock-based compensation expense
Total stock based compensation expense	$ 1,123,446	$ 419,487	$ 1,835,187	$ 979,260
Research and Development Expense
Stock-based compensation expense
Total stock based compensation expense	409,304	166,019	712,321	355,653
Cost of Revenue
Stock-based compensation expense
Total stock based compensation expense	4,641		14,950
Selling and Marketing Expense.
Stock-based compensation expense
Total stock based compensation expense	171,049	29,989	254,114	52,670
General and Administrative Expense.
Stock-based compensation expense
Total stock based compensation expense	$ 538,452	$ 223,479	$ 853,802	$ 570,937

Stockholders' Equity (Details 3

Stockholders' Equity (Details 3) - USD ($)	Jun. 10, 2015	Jun. 30, 2015	Jun. 30, 2014	Dec. 31, 2014	Sep. 17, 2014
Stock options
Weighted-average assumptions
Dividend yield (as a percent)		0.00%	0.00%
Expected term		6 years 2 months 12 days	5 years
Unrecognized compensation cost
Unrecognized compensation cost		$ 8,918,735	$ 3,364,401
Weighted-average remaining vesting period for recognition		3 years	3 years
Number of Options
Balance outstanding at the beginning of the period (in shares)		4,913,472
Granted (in shares)		1,396,500
Exercised (in shares)		(170,166)
Cancelled / Forfeited (in shares)		(130,875)
Expired (in shares)		(110,334)
Balance outstanding at the end of the period (in shares)		5,898,597
Vested and exercisable at the end of the period (in shares)		2,441,739
Weighted Average Exercise Price Per Share
Balance outstanding at the beginning of the period (in dollars per share)		$ 4.66
Granted (in dollars per share)		7.64
Exercised (in dollars per share)		3.31
Canceled / Forfeited (in dollars per share)		5.03
Expired (in dollars per share)		14.43
Balance outstanding at the end of the period (in dollars per share)		5.21
Vested and exercisable at the end of the period (in dollars per share)		$ 4.39
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures
Options Outstanding, Intrinsic Value		$ 29,847,486		$ 2,808,083
Vested and Exercisable at the end of the period, Intrinsic Value		$ 14,183,710
Options Outstanding, Weighted Average Contractual Life		8 years
Stock options | Minimum
Weighted-average assumptions
Risk-free interest rate (as a percent)		1.60%	1.46%
Expected volatility (as a percent)		75.00%	74.00%
Stock options | Maximum
Weighted-average assumptions
Risk-free interest rate (as a percent)		2.15%	1.69%
Expected volatility (as a percent)		77.00%	84.00%
2014 EIP
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures
Authorized shares under the plan					2,500,000
Additional shares under the plan	2,500,000
Number of remaining shares available for issuance		2,563,332

Stockholders' Equity (Details 4

Stockholders' Equity (Details 4) - $ / shares	6 Months Ended	12 Months Ended
	Jun. 30, 2015	Dec. 31, 2014
Number of Warrants
Balance of warrants outstanding at the beginning of the period (in shares)	6,265,620
Exercised (in shares)	(562,378)
Balance of warrants outstanding at the end of the period (in shares)	5,703,242	6,265,620
Weighted Average Exercise Price Per Share
Weighted average exercise price of warrants at the beginning of the period (in dollars per share)	$ 3.85
Exercised (in dollars per share)	3.30
Weighted average exercise price of warrants at the end of the period (in dollars per share)	$ 3.90	$ 3.85
Term
ClassOfWarrantOrRightTermOfOutstandingWarrantsOrRights	3 years 4 days	3 years 6 months 26 days
ClassOfWarrantOrRightTermOfOutstandingWarrantsOrRights	3 years 4 days	3 years 6 months 26 days

Commitments and Contingencies (

Commitments and Contingencies (Details)	Jun. 11, 2015USD ($)ft²	Jun. 10, 2015USD ($)ft²	Jun. 30, 2015USD ($)$ / shares
Lease Agreements
Area under lease (in square feet) | ft²		13,000
Area Of Land After Expansion | ft²	22,600
Monthly rental rate	$ 60,000	$ 30,000
Executive Agreement With Chief Executive Office
Executive and Consulting Agreements
Bonus payment threshold for number of days related to trading volumes and market price			90 days
Potential bonus payment related to the executive agreement with the CEO			$ 3,500,000
Potential bonus payment if a change in control occurs at the targeted enterprise values (as a percent)			4.00%
Executive Agreement With Chief Executive Office | Minimum
Executive and Consulting Agreements
Enterprise value threshold for the executive agreement with the CEO (in dollars per share) | $ / shares			$ 7.50
Research and Development Agreements | Research and Development Expense
Lease Agreements
Revenue and license fee expense			$ 423,000

Subsequent Events (Details)

Subsequent Events (Details) - USD ($)	Jul. 22, 2015	Jun. 30, 2015
Subsequent Events
Proceeds from sales of common stock, net of expenses		$ 23,816,292
Common Stock
Subsequent Events
Shares of common stock issued		5,956,808
Public Offering and Controlled Equity Offering | Common Stock | Underwritten Public Offering 2015
Subsequent Events
Shares of common stock issued		5,111,110
Price per share (in dollars per share)		$ 9.66
Proceeds from sales of common stock, net of expenses		$ 23,000,000
Subsequent Event | Public Offering and Controlled Equity Offering | Common Stock
Subsequent Events
Shares of common stock issued	4,600,000
Price per share (in dollars per share)	$ 8.75
Proceeds from sales of common stock, net of expenses	$ 37,400,000
Subsequent Event | Public Offering and Controlled Equity Offering | Common Stock | Over-Allotment Option
Subsequent Events
Shares of common stock issued	600,000