Gi Dynamics (GIDYL) 10-Q 10 Aug 16 2016 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2016	Aug. 01, 2016
Document Information [Line Items]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Jun. 30, 2016
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	Q2
Trading Symbol	GIDYL
Entity Registrant Name	GI DYNAMICS, INC.
Entity Central Index Key	1,245,791
Current Fiscal Year End Date	--12-31
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		9,510,557

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Current assets:
Cash and cash equivalents	$ 12,254	$ 19,590
Restricted cash	150
Accounts receivable, net	22	40
Inventory	504	1,025
Prepaid expenses and other current assets	487	726
Total current assets	13,417	21,381
Property and equipment, net	95	401
Total assets	13,512	21,782
Current liabilities:
Accounts payable	435	435
Accrued expenses	1,518	2,810
Other current liabilities	97	276
Total current liabilities	2,050	3,521
Other liabilities	19	3
Commitments (Note 10)
Stockholders' equity:
Preferred stock, $0.01 par value - 500,000 shares authorized; no shares issued and outstanding at June 30, 2016 and December 31, 2015
Common stock	95	95
Additional paid-in capital	253,763	253,250
Accumulated deficit	(242,415)	(235,087)
Total stockholders' equity	11,443	18,258
Total liabilities and stockholders' equity	$ 13,512	$ 21,782

Condensed Consolidated Balance3

Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares	Jun. 30, 2016	Dec. 31, 2015
Preferred stock, par value	$ 0.01	$ 0.01
Preferred stock, shares authorized	500,000	500,000
Preferred stock, issued	0	0
Preferred stock, outstanding	0	0
Common stock, par value	$ 0.01	$ 0.01
Common stock, shares authorized	13,000,000	13,000,000
Common stock, shares issued	9,510,557	9,505,557
Common stock, shares outstanding	9,510,557	9,505,389
Class B common stock
Common stock, par value	$ 0.01	$ 0.01
Common stock, shares authorized	1,000,000	1,000,000
Common stock, shares issued	0	0
Common stock, shares outstanding	0	0

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations and Comprehensive Loss - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Revenue	$ 132	$ 310	$ 341	$ 926
Cost of revenue	637	2,012	990	2,898
Gross loss	(505)	(1,702)	(649)	(1,972)
Operating expenses:
Research and development	1,181	4,631	2,031	10,277
Sales and marketing	610	1,482	1,274	3,142
General and administrative	1,559	2,437	3,366	4,731
Total operating expenses	3,350	8,550	6,671	18,150
Loss from operations	(3,855)	(10,252)	(7,320)	(20,122)
Other income (expense):
Interest income	13	24	27	54
Interest expense	0		0
Foreign exchange gain (loss)	(14)	28	3	(465)
Remeasurement of warrant liability	(17)	(8)	(17)	(10)
Other income (expense), net	(18)	44	13	(421)
Loss before income tax expense	(3,873)	(10,208)	(7,307)	(20,543)
Income tax expense	17	26	21	40
Net loss	$ (3,890)	$ (10,234)	$ (7,328)	$ (20,583)
Basic and diluted net loss per common share	$ (0.41)	$ (1.08)	$ (0.77)	$ (2.17)
Weighted-average number of common shares used in basic and diluted net loss per common share	9,510,557	9,481,171	9,508,296	9,481,099
Comprehensive loss	$ (3,890)	$ (10,234)	$ (7,328)	$ (20,583)

Condensed Consolidated Stateme5

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
Operating activities
Net loss	$ (7,328)	$ (20,583)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	155	312
Stock-based compensation expense	508	1,613
Remeasurement of warrant liability	17	10
Impairment loss on fixed assets	145
Change in inventory reserve	(191)	1,487
Gain on sale of property and equipment	2
Changes in operating assets and liabilities:
Accounts receivable	18	187
Prepaid expenses and other current assets	239	160
Inventory	712	776
Accounts payable		312
Accrued expenses	(1,384)	(2,111)
Other current liabilities	(82)	(367)
Net cash used in operating activities	(7,189)	(18,204)
Investing activities
Change in restricted cash	(150)
Purchases of property and equipment		(169)
Proceeds from sale of property and equipment	4
Net cash used in investing activities	(146)	(169)
Financing activities
Proceeds from exercise of stock options		2
Payments on capital lease	(1)	(1)
Net cash (used in) provided by financing activities	(1)	1
Net decrease in cash and cash equivalents	(7,336)	(18,372)
Cash and cash equivalents at beginning of period	19,590	51,191
Cash and cash equivalents at end of period	12,254	32,819
Supplemental cash flow disclosures
Income taxes paid	$ 19	52
Equipment acquired under capital lease		$ 8

Nature of Business

Nature of Business	6 Months Ended
	Jun. 30, 2016
Nature of Business	1. Nature of Business GI Dynamics, Inc. (the “Company”) was incorporated on March 24, 2003, as a Delaware corporation, with operations based in Lexington, Massachusetts. The Company is dedicated to restoring health and improving quality of life through the design and application of device and disease management solutions for treatment of metabolic disease. The Company’s vision is to make our first product, EndoBarrier Therapy, a valued treatment option for patients suffering from type 2 diabetes and obesity by restoring more manageable blood sugar levels and reducing body weight. The Company is the developer of EndoBarrier ® > 2 > 2 > 2 In 2011, the Company began commercial sales of its product, EndoBarrier, which is approved and commercially available in multiple countries outside the U.S. In the U.S., the Company received approval from the Food and Drug Administration (“FDA”), to commence its pivotal trial of EndoBarrier Therapy (the “ENDO Trial”), which the Company began in 2013. The multi-center, randomized, double-blinded study planned to enroll 500 patients with uncontrolled type 2 diabetes and obesity at 25 sites in the U.S. The primary endpoint was improvement in diabetes control as measured by HbA1c levels. On March 5, 2015, the Company announced that the FDA recommended discontinuing placement of any additional devices in the ENDO Trial as a result of, at that date, four cases of hepatic abscess among the 325 subjects then enrolled in the ENDO Trial. Hepatic abscess, a bacterial infection of the liver, is a known event related to the use of EndoBarrier. As a result, the Company stopped enrollment in the ENDO Trial, although monitoring and data collection of patients then enrolled in the ENDO Trial continued. On July 30, 2015, the Company announced its decision to stop the ENDO Trial. The decision followed discussions with the FDA regarding resumption of ENDO Trial enrollment, which despite collaborative efforts by both parties were unable to yield a feasible path forward for the mitigation of a higher than anticipated incidence of hepatic abscess. The Company concluded that stopping the ENDO Trial was in the best interest of all stakeholders. On August 21, 2015, the Company announced that it was reducing headcount by approximately 46% as part of its efforts to restructure its business and expenses in response to stopping the ENDO Trial and to ensure sufficient cash remains available for it to establish new priorities, continue limited market development and research, and to evaluate strategic options. On May 10, 2016, the Company announced that it was reducing headcount by approximately 30% as part of its previously announced efforts to restructure its expenses in order to extend its cash runway. The Company is subject to a number of risks similar to other medical device companies, including, but not limited to, market acceptance of the Company’s products, development by its competitors of new technological innovations, safety and efficacy of the products in clinical trials, the regulatory approval process governing medical devices and protection of proprietary technology. In addition, the Company will require additional funding to support its operations. Any such financing may or may not be similar to transactions in which it has engaged in the past and there can be no assurance that any such financing opportunities will be available on acceptable terms, if at all. The Company has incurred operating losses since inception and at June 30, 2016, had an accumulated deficit of approximately $242.4 million. Based on the Company’s decision to stop the ENDO Trial, it continues to evaluate which markets are appropriate to continue pursuing reimbursement, market awareness and general market development efforts, and continues to restructure its business and costs, establish new priorities, continue limited research, and evaluate strategic options. As a result, the Company expects to incur significant operating losses for the next several years. At June 30, 2016, the Company had approximately $12.4 million in cash, cash equivalents and restricted cash. The Company does not expect its current cash balances will be sufficient to enable it to conduct an additional clinical trial for the purpose of seeking regulatory approval from the FDA and complete development of an improved EndoBarrier for its current use and potential new indications. The Company is restructuring its costs and will need to raise additional funds in order to implement its new business objectives and to continue to fund its operations in 2017. These factors raise substantial doubt about the Company’s ability to continue as a going concern. The Company may seek to raise additional funds through any combination of collaborative arrangements, strategic alliances, and additional equity and debt financings or from other sources. There can be no assurance that any such financing opportunities will be available on acceptable terms, if at all. If the Company is unable to raise capital when needed, it could be forced to significantly delay or discontinue research and development activities and further commercialization of EndoBarrier, which could have a material adverse effect on its business, financial condition and results of operations. In addition, the Company could be required to cease operations if it is unable to raise capital when needed. The accompanying condensed consolidated financial statements have been prepared assuming the Company will continue as a going concern, which contemplates the realization of assets and liabilities and commitments in the normal course of business. The condensed consolidated financial statements as of June 30, 2016 and December 31, 2015 and for the three and six months ended June 30, 2016, and 2015 do not include any adjustments to reflect the possible future effects on the recoverability and classification of assets or the amounts and classification of liabilities that may result from uncertainty related to the Company’s ability to continue as a going concern.

Summary of Significant Accounti

Summary of Significant Accounting Policies and Basis of Presentation	6 Months Ended
	Jun. 30, 2016
Summary of Significant Accounting Policies and Basis of Presentation	2. Summary of Significant Accounting Policies and Basis of Presentation The accompanying condensed consolidated financial statements and the related disclosures as of June 30, 2016, and for the three and six months ended June 30, 2016 and 2015, are unaudited and have been prepared in accordance with accounting principles generally accepted in the U.S. (“GAAP”) and the applicable rules and regulations of the Securities and Exchange Commission (“SEC”) for interim financial information. Accordingly, they do not include all of the information and notes required by GAAP for complete financial statements. These interim condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto contained in the Company’s Annual Report on Form 10-K (“Form 10-K”), filed with the SEC on March 30, 2016. The December 31, 2015 condensed consolidated balance sheet included herein was derived from the audited financial statements as of that date, but does not include all disclosures including notes required by GAAP for complete financial statements. The unaudited interim condensed consolidated financial statements have been prepared on the same basis as the audited consolidated financial statements and, in the opinion of management, reflect all adjustments of a normal recurring nature considered necessary to present fairly the Company’s financial position as of June 30, 2016, results of its operations for the three and six months ended June 30, 2016 and 2015, and its cash flows for the six months ended June, 2016 and 2015. The interim results for the three and six months ended June 30, 2016 are not necessarily indicative of the results that may be expected for the year ending December 31, 2016. The Company’s significant accounting policies are as described in Note 2, Summary of Significant Accounting Policies and Basis of Presentation Error Correction During the six months ended June 30, 2016, the Company recorded an out-of-period adjustment reducing the accrual for clinical trial related expenses and research and development expense by approximately $0.4 million. The adjustment corrected an error in the calculation of certain accrued expenses related to the Company’s ENDO Trial during the fourth quarter of 2015. The Company evaluated the materiality of the error from a qualitative and quantitative perspective as required by authoritative guidance and does not believe that the amount is material to any prior period financial statements, and the impact of correcting the error in the six months ended June 30, 2016 is not material to those financial statements. As a result, the Company has not restated any prior period amounts. Principles of Consolidation The accompanying condensed consolidated financial statements include the accounts of GI Dynamics, Inc. and its wholly owned subsidiaries. All intercompany transactions and balances are eliminated in consolidation. Use of Estimates The preparation of consolidated financial statements in accordance with GAAP requires the Company’s management to make estimates and judgments that may affect the reported amounts of assets, liabilities, revenues and expenses, and the related disclosure of contingent assets and liabilities. On an ongoing basis, the Company’s management evaluates its estimates, including those related to revenue recognition, allowance for doubtful accounts, inventory valuation including reserves for excess and obsolete inventory, impairment of long-lived assets, income taxes including the valuation allowance for deferred tax assets, research and development, contingencies, stock-based compensation, going concern considerations, and warrant valuations. The Company bases its estimates on historical experience and on various other assumptions that are believed to be reasonable, the results of which form the basis for making judgments about the carrying values of assets and liabilities. Actual results may differ from these estimates under different assumptions or conditions. Changes in estimates are reflected in reported results in the period in which they become known. Guarantees The Company has identified the guarantees described below as disclosable, in accordance with ASC 460, Guarantees As permitted under Delaware law, the Company indemnifies its officers and directors for certain events or occurrences while the officer or director is, or was, serving at the Company’s request in such capacity. The maximum potential amount of future payments the Company could be required to make is unlimited; however, the Company has directors’ and officers’ insurance coverage that should limit its exposure and enable it to recover a portion of any future amounts paid. The Company is a party to a number of agreements entered into in the ordinary course of business that contain typical provisions that obligate the Company to indemnify the other parties to such agreements upon the occurrence of certain events. Such indemnification obligations are usually in effect from the date of execution of the applicable agreement for a period equal to the applicable statute of limitations. The aggregate maximum potential future liability of the Company under such indemnification provisions is uncertain. The Company leases office space under non-cancelable operating leases. The Company has standard indemnification arrangements under these leases that require it to indemnify its landlords against all costs, expenses, fines, suits, claims, demands, liabilities, and actions directly resulting from any breach, violation, or nonperformance of any covenant or condition of the respective lease. The aggregate maximum potential future liability of the Company under such indemnification provisions is uncertain. As of June 30, 2016 and December 31, 2015, the Company had not experienced any material losses related to these indemnification obligations, and no material claims with respect thereto were outstanding. The Company does not expect significant claims related to these indemnification obligations and, consequently, concluded that the fair value of these obligations is negligible. As a result, no related reserves have been established. Restricted Cash Restricted balances of cash, which are shown under current financial assets as restricted funds, relate to funds set aside to secure a letter of credit to the lessor in lieu of a rental deposit for the property at 25 Hartwell Avenue, Lexington MA. The current/non-current classification is based on the expected timing of the expiration of the lease. Subsequent Events The Company evaluates events occurring after the date of its condensed consolidated balance sheet for potential recognition or disclosure in its condensed consolidated financial statements. There have been no subsequent events that have occurred through the date the Company issued its condensed consolidated financial statements that require disclosure in or adjustment to its condensed consolidated financial statements. New Accounting Pronouncements From time to time, new accounting pronouncements are issued by the Financial Accounting Standards Board (“FASB”) or other standard setting bodies that are adopted by the Company as of the specified effective date. Unless otherwise discussed, the Company believes that the effect of recently issued standards that are not yet effective will not have a material effect on its consolidated financial position or results of operations upon adoption. In May 2014, the FASB issued Accounting Standards Update (“ASU”) No. 2014-09 (“ASU 2014-09”), Revenue from Contracts with Customers Revenue Recognition In August 2014, the FASB issued ASU No. 2014-15, Presentation of Financial Statements-Going Concern: Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) In March 2016, the FASB issued ASU No. 2016-09, Compensation—Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting

Net Loss per Common Share

Net Loss per Common Share	6 Months Ended
	Jun. 30, 2016
Net Loss per Common Share	3. Net Loss per Common Share Basic net loss per common share is computed by dividing net loss by the weighted-average number of common shares outstanding during the period. Potential common stock equivalents are determined using the treasury stock method. For diluted net loss per share purposes, the Company excludes stock options and other stock-based awards, including shares issued as a result of option exercises but which are subject to repurchase by the Company, whose effect would be anti-dilutive from the calculation. During the three and six months ended June 30, 2016 and 2015, common stock equivalents were excluded from the calculation of diluted net loss per common share, as their effect was anti-dilutive due to the net loss incurred. Therefore, basic and diluted net loss per share was the same in all periods presented. The following potentially dilutive securities have been excluded from the computation of diluted weighted-average shares outstanding as of June 30, 2016 and 2015, as they would be anti-dilutive: Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 Warrants to purchase common stock 78,532 50,000 78,532 50,000 Options to purchase common stock and other stock-based awards 1,034,070 1,506,880 1,034,070 1,506,880 1,112,602 1,556,880 1,112,602 1,556,880

Common Stock Warrants

Common Stock Warrants	6 Months Ended
	Jun. 30, 2016
Common Stock Warrants	4. Common Stock Warrants In connection with the Company’s initial public offering (“IPO”) in September 2011, the Company issued warrants (“IPO Warrants”) in an aggregate amount of 50,000 shares of common stock at an exercise price of A$55.00 per share to the lead manager of the IPO and certain other investors. The IPO Warrants will expire on the fifth anniversary of their date of grant. The IPO Warrants may be converted on a cashless basis at the option of the holder. The Company has reserved 50,000 shares of common stock related to the IPO Warrants. As of June 30, 2016, no IPO Warrants had been exercised. On May 4, 2016, the Company entered into a consulting agreement pursuant to which the consulting firm will provide strategic advisory, finance, accounting, human resources and administrative functions, including chief financial officer services, to the Company. In connection with the consulting agreement, the Company granted the consulting firm a warrant (“Consultant Warrant,” together with the IPO Warrants, the “Warrants”) to purchase up to 28,532 shares of the Company’s common stock at an exercise price per share equal to $0.64. The Consultant Warrant vests on a monthly basis over two years and has a term of five years. The Company has reserved 28,532 shares of common stock related to the Consultant Warrant. As of June 30, 2016, no Consultant Warrants had been exercised. The Company accounts for the Warrants under Accounting Standards Codification 815, Derivatives and Hedging Because the Warrants are classified as liabilities, the fair value of the Warrants must be remeasured at each reporting period. At the time the Warrants were issued, the Company estimated the fair value of the Warrants using the Black-Scholes option pricing model. The Company remeasures the fair value of the Warrants at each reporting period using current assumptions, and in the case of the IPO Warrants the current foreign exchange rates, with changes in value recorded as other income or expense (Note 5).

Fair Value of Financial Instrum

Fair Value of Financial Instruments	6 Months Ended
	Jun. 30, 2016
Fair Value of Financial Instruments	5. Fair Value of Financial Instruments The tables below present information about the Company’s assets and liabilities that are measured at fair value on a recurring basis as of June 30, 2016 and December 31, 2015, and indicates the fair value hierarchy of the valuation techniques the Company used to determine such fair value. In general, fair values determined by Level 1 inputs utilize observable inputs such as quoted prices in active markets for identical assets or liabilities. Fair values determined by Level 2 inputs utilize data points that are either directly or indirectly observable, such as quoted prices, interest rates and yield curves. Fair values determined by Level 3 inputs utilize unobservable data points in which there is little or no market data, requiring the Company to develop its own assumptions for the asset or liability. The following tables present the assets and liabilities the Company has measured at fair value on a recurring basis (in thousands): Fair Value Measurements at Reporting Date Using Description June 30, 2016 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets Money market funds (included in cash, cash equivalents and restricted cash) $ 9,881 $ 9,881 $ — $ — Total assets $ 9,881 $ 9,881 $ — $ — Liabilities Warrants to purchase common stock $ 17 $ — $ — $ 17 Total liabilities $ 17 $ — $ — $ 17 Fair Value Measurements at Reporting Date Using Description December 31, Quoted Prices in Significant Other Significant Assets Money market funds (included in cash and cash equivalents) $ 17,207 $ 17,207 $ — $ — Total assets $ 17,207 $ 17,207 $ — $ — Liabilities Warrants to purchase common stock $ — $ — $ — $ — Total liabilities $ — $ — $ — $ — The assumptions used in the Black-Scholes option pricing model to determine the fair value of the IPO Warrants at June 30, 2016 and December 31, 2015 were as follows: June 30, 2016 December 31, 2015 Exercise price (A$55.00 at the then current exchange rate) $ 40.84 $ 40.18 Fair value of common stock $ 0.89 $ 1.06 Expected volatility 128.4 % 165.6 % Expected term (in years) 0.2 0.7 Risk-free interest rate 0.2 % 0.5 % Expected dividend yield — % — % The assumptions used in the Black-Scholes option pricing model to determine the fair value of the Consultant Warrant at the time the Consultant Warrant was issued and at June 30, 2016 were as follows: At Issuance June 30, 2016 Exercise price $ 0.64 $ 0.64 Fair value of common stock $ 0.64 $ 0.89 Expected volatility 74.1 % 76.8 % Expected term (in years) 5.0 4.9 Risk-free interest rate 1.2 % 1.0 % Expected dividend yield — % — % The following table rolls forward the fair value of the Warrants, where fair value is determined by Level 3 inputs (in thousands): Balance at December 31, 2015 $ — Issuance of Consultant Warrant 11 Increase in fair value of Warrants upon remeasurement included in other income (expense) 6 Balance at June 30, 2016 $ 17 Cash equivalents, restricted cash, accounts receivable, prepaid expenses and other current assets, accounts payable, accrued expenses and other current liabilities at June 30, 2016 and December 31, 2015 are carried at amounts that approximate fair value due to their short-term maturities and highly liquid nature of these instruments.

Concentrations of Credit Risk,

Concentrations of Credit Risk, Accounts Receivable and Related Valuation Accounts	6 Months Ended
	Jun. 30, 2016
Concentrations of Credit Risk, Accounts Receivable and Related Valuation Accounts	6. Concentrations of Credit Risk, Accounts Receivable and Related Valuation Accounts Financial instruments that subject the Company to credit risk primarily consist of cash and cash equivalents, restricted cash and accounts receivable. The Company maintains its cash and cash equivalents and restricted cash balances with high quality financial institutions, and consequently, the Company believes that such funds are subject to minimal credit risk. Accounts receivable primarily consist of amounts due from customers, including distributors and health care providers in different countries. In light of the current economic state of many foreign countries, the Company continues to monitor the creditworthiness of its customers. At June 30, 2016, one distributor accounted for approximately 44% of the Company’s accounts receivable and one customer accounted for approximately 46% of the outstanding receivables. At December 31, 2015, one health care provider accounted for approximately 15% of the Company’s accounts receivable, two health care providers accounted for approximately 11% each and a fourth health care provider accounted for approximately 10%. No other customer accounted for greater than 10% of the Company’s accounts receivable at June 30, 2016 and December 31, 2015. The Company grants credit to customers in the normal course of business but generally does not require collateral or any other security to support its receivables. The Company makes judgments as to its ability to collect outstanding receivables and provides an allowance for receivables when collection becomes doubtful. Provisions are made based upon a specific review of all significant outstanding invoices and the overall quality and age of those invoices not individually reviewed. Amounts determined to be uncollectible are written off against this reserve. In the three and six months ended June 30, 2015, the Company did not write-off any uncollectible accounts receivable. In the second quarter ending June 30, 2016 the Company wrote off approximately $48,000 in accounts receivable against the bad debt reserve. There were no adjustments against the reserve to write off accounts receivable in the first quarter ending March 31, 2016. As of June 30, 2016 and December 31, 2015, the Company believes its allowance for doubtful accounts of approximately $12,000 and $59,000, respectively, is adequate based on its review. In certain circumstances the Company allows customers to return defective or nonconforming products for credit or replacement products. Defective or nonconforming products typically include those products that resulted in an unsuccessful implant procedure. The Company records an estimate for product returns based upon historical trends. The associated reserve for product returns is recorded as a reduction of the Company’s accounts receivable. As of June 30, 2016 and December 31, 2015, the Company believes its allowance for sales returns of approximately $14,000 and $22,000, respectively, is adequate based on its review. The following table shows the components of the Company’s accounts receivable at June 30, 2016 and December 31, 2015 (in thousands): June 30, 2016 December 31, 2015 Accounts receivable $ 48 $ 121 Less: allowance for doubtful accounts (12 ) (59 ) Less: allowance for sales returns (14 ) (22 ) Total $ 22 $ 40 The following is a roll forward of the Company’s allowance for doubtful accounts (in thousands): Six Months Ended June 30, 2016 2015 Beginning balance $ 59 $ 41 Net charges to expenses 1 73 Utilization of allowances (48 ) — Ending balance $ 12 $ 114

Inventory

Inventory	6 Months Ended
	Jun. 30, 2016
Inventory	7. Inventory The Company states inventory at the lower of first-in, first-out cost or market. The Company records a provision for excess, expired, and obsolete inventory based primarily on estimates of forecasted revenues. A significant change in the timing or level of demand for products as compared to forecasted amounts may result in recording additional provisions for excess, expired, and obsolete inventory in the future. When capitalizing inventory, the Company considers factors such as status of regulatory approval, alternative use of inventory, and anticipated commercial use of the product. The determination of obsolete or excess inventory requires the Company to estimate the future demand for its products within appropriate time horizons. The estimated future demand is compared to inventory levels to determine the amount, if any, of obsolete and excess inventory. The demand forecast includes the Company’s estimates of market growth and various internal estimates, and is based on assumptions that are consistent with the plans and estimates the Company is using to manage its underlying business and short-term manufacturing plans. Forecasting demand for EndoBarrier in a market in which there are few, if any, comparable approved devices and for which reimbursement from third-party payers is limited has been difficult. To the extent the Company’s demand forecast is less than its inventory on-hand, the Company could be required to record additional reserves for excess, expired or obsolete inventory in the future. In 2015, the Company performed an analysis of its inventory on hand and due to current evidence that the utility of certain amounts of its inventory as it was expected to be used will be less than its cost recorded an approximately $3.2 million charge for excess, expired and obsolete inventory. Factors contributing to the inventory write-down included: the effect that the ENDO Trial enrollment hold and subsequent stopping of the ENDO Trial had on commercial activity and the Company’s inventory levels, the expected timing of third-party payer reimbursement in its commercial markets, its conclusion that certain inventory will not be used for sales inside or outside the U.S. and the historical accuracy of its demand forecasts. As of June 30, 2016 and December 31, 2015, the Company has reserves totaling approximately $4.8 million and $5.0 million, respectively for excess, expired and obsolete inventory. The Company continues to review any evidence that may indicate that the utility of additional amounts of inventory, as it was expected to be used, will be less than cost. Inventory, net, at June 30, 2016 and December 31, 2015 was as follows (in thousands): June 30, 2016 December 31, 2015 Finished goods $ 504 $ 391 Work-in-process — 605 Raw materials — 29 Total $ 504 $ 1,025 The Company has entered into consignment arrangements in which the Company delivers product to the customer but retains title to the product until it is implanted or otherwise consumed. At June 30, 2016 and December 31, 2015, approximately 6 % of the finished goods inventory was at customer locations pursuant to these arrangements.

Property and Equipment

Property and Equipment	6 Months Ended
	Jun. 30, 2016
Property and Equipment	8. Property and Equipment Property and equipment consisted of the following (in thousands): June 30, 2016 December 31, 2015 Laboratory equipment and manufacturing equipment $ 339 $ 457 Computer equipment and software 1,116 1,118 Office furniture and equipment 175 229 Leasehold improvements — 848 1,631 2,652 Less accumulated depreciation and amortization (1,536 ) (2,251 ) Total $ 95 $ 401 The Company plans to leave its facility in Lexington Massachusetts in the 3 rd Three Months Ended Six Months Ended 2016 2015 2016 2015 Cost of revenue $ 24 $ — $ 24 $ — Research and development 79 — 74 — Sales and marketing — — — — General and administrative 42 — 42 — $ 145 $ — $ 145 $ — In January 2015, the Company entered into a capital lease for certain office equipment. As of June 30, 2016, the Company had approximately $8,000 of assets under capital leases with an accumulated amortization balance of approximately $3,400. Depreciation and amortization expense of property and equipment, including equipment recorded under capital leases, totaled approximately $0.1 and $0.1 million for the three months ended June 30, 2016 and 2015, respectively. Depreciation and amortization expense of property and equipment, including equipment recorded under capital leases, totaled approximately $0.2 and $0.3 million for the six months ended June 30, 2016 and 2015, respectively.

Accrued Expenses and Other Curr

Accrued Expenses and Other Current Liabilities	6 Months Ended
	Jun. 30, 2016
Accrued Expenses and Other Current Liabilities	9. Accrued Expenses and Other Current Liabilities Accrued expenses and other current liabilities consisted of the following (in thousands): June 30, 2016 December 31, 2015 Clinical trials $ 395 $ 1,809 Payroll and related liabilities 543 501 Professional fees 425 454 Deferred rent, current portion 86 168 Other 166 154 Total $ 1,615 $ 3,086 Included in payroll and related liabilities at December 31, 2015, were approximately $0.1 million of separation related expenses which were paid in the six months ended June 30, 2016.

Commitments and Contingencies

Commitments and Contingencies	6 Months Ended
	Jun. 30, 2016
Commitments and Contingencies	10. Commitments and Contingencies Lease Commitments In June 2013, the Company entered into a noncancelable agreement to sublease 33,339 square feet of office, laboratory and manufacturing space in Lexington, Massachusetts. The sublease commenced in June 2013 and expires in December 2016, subject to earlier termination under certain conditions. Base rent during the initial rent period is approximately $0.6 million per year and increases annually by approximately $17,000. The space was delivered to the Company in June 2013 and rent payments commenced in May 2014. The rent expense, inclusive of the escalating rent payments and free rent period, is recognized on a straight-line basis over the term of the sublease agreement. In accordance with the terms of the sublease agreement, the Company maintains a secured letter of credit of approximately $0.2 million securing its obligations under the sublease agreement. In June 2016, the Company entered into a noncancelable agreement to lease approximately 4,200 square feet of office and laboratory space in Boston, Massachusetts. The lease commenced in June 2016 and expires in April 2018. Rent during the term is $11,900 per month. In March 2012, the Company’s subsidiary, GID Germany GmbH, entered into a noncancelable operating lease for office space in Dusseldorf, Germany. The lease was renewed in September 2013 and again in January 2015. In April 2016 this lease expired and the Company vacated this space. Rent expense on noncancelable operating leases was approximately $0.1 million for each of the three-month periods ended June 30, 2016 and 2015, respectively. Rent expense on noncancelable operating leases was approximately $0.2 million for each of the six-month periods ended June 30, 2016 and 2015, respectively. In March 2015, the Company entered into a capital lease for certain office equipment totaling approximately $8,000. The capital lease has a three-year term and an interest rate of 14.1%. Future minimum lease payments under all noncancelable lease arrangements at June 30, 2016, are as follows (in thousands): Year Ending December 31, 2016 $ 322 2017 146 2018 48 Total $ 516

Stockholders' Equity

Stockholders' Equity	6 Months Ended
	Jun. 30, 2016
Stockholders' Equity	11. Stockholders’ Equity The authorized capital stock of the Company consists of 14,500,000 shares, of which 13,000,000 shares are designated as common stock, 1,000,000 shares are designated as Class B common stock, and 500,000 shares are designated as preferred stock. Common Stock The Company authorized Class B common stock in order to meet the Listing Rules of the Australian Securities Exchange (“ASX”) so far as they apply to escrowed securities. In the event that holders of common stock, who were subject to ASX-imposed escrow, breached the terms of their escrow agreement or the Listing Rules as they apply to escrowed securities, their common stock would have been automatically converted into Class B common stock until the earlier to occur of the expiration of the escrow period or the breach being rectified. The Class B common stock is identical to and ranks equally with the common stock except that Class B common stock has no voting rights and is not entitled to any dividends. No shares of common stock are currently subject to such an escrow.

Stock Plans

Stock Plans	6 Months Ended
	Jun. 30, 2016
Stock Plans	12. Stock Plans The Company has two stock-based compensation plans under which incentive stock options, nonqualified stock options, restricted and unrestricted stock awards, and other stock-based awards are available for grant to employees, directors and consultants of the Company. At June 30, 2016, there were 1,304,275 shares available for future grant under both plans. The 2011 Employee, Director and Consultant Equity Incentive Plan (the “2011 Plan”, together with the 2003 Omnibus Stock Plan, the “Plans”) allows for an annual increase in the number of shares available for issue under the 2011 Plan commencing on the first day of each fiscal year during the period beginning in fiscal year 2012 and ending in fiscal year 2020. The annual increase in the number of shares shall be equal to the lowest of: • 500,000 shares; • 4% of the number of common shares outstanding as of such date; and • an amount determined by the Board of Directors or the Company’s compensation committee. Accordingly, in the first quarter of fiscal 2016, 380,222 options available for future grant were added to the 2011 Plan. Stock-Based Compensation Stock-based compensation is reflected in the condensed consolidated statements of operations and comprehensive loss as follows for the three and six months ended June 30, 2016 and 2015 (in thousands): Three Months Ended Six Months Ended 2016 2015 2016 2015 Cost of revenue $ 16 $ 25 $ 34 $ 47 Research and development 20 162 44 348 Sales and marketing 38 111 95 256 General and administrative 154 621 336 962 $ 228 $ 919 $ 509 $ 1,613 During the six months ended June 30, 2015, the Company modified the post-employment exercise period of stock awards previously granted to the Company’s former chief financial officer in relation to his separation from the Company. The modification extended the exercise period to December 8, 2015. The modification resulted in an approximately $19,000 increase in stock-based compensation for the six months ended June 30, 2015. The Company accounted for the modification of these stock awards in accordance with the provisions of ASC 718, Stock Compensation In calculating stock-based compensation costs, the Company estimated the fair value of stock options using the Black-Scholes option-pricing model. The Black-Scholes option-pricing model was developed for use in estimating the fair value of short-lived, exchange-traded options that have no vesting restrictions and are fully transferable. The Company estimates the number of awards that will be forfeited in calculating compensation costs. Such costs are then recognized over the requisite service period of the awards on a straight-line basis. Determining the fair value of stock-based awards using the Black-Scholes option-pricing model requires the use of highly subjective assumptions, including the expected term of the award and expected stock price volatility. The weighted-average assumptions used to estimate the fair value of employee stock options using the Black-Scholes option-pricing model were as follows for the three and six months ended June 30, 2016 and 2015: Three Months Ended Six Months Ended 2016 2015 2016 2015 Expected volatility 69.6 % 56.8 % 68.9 % 56.8 % Expected term (in years) 6.05 6.04 6.05 6.04 Risk-free interest rate 1.4 % 1.6 % 1.5 % 1.6 % Expected dividend yield — % — % — % — % The Company uses historical data to estimate forfeiture rates. The Company’s estimated forfeiture rates were 15% and 10% at June 30, 2016 and 2015, respectively. Stock Options The following table summarizes share-based activity under the Company’s stock option plans: Shares of Weighted- Weighted- Aggregate (in years) (in thousands) Outstanding at December 31, 2015 779,028 $ 23.92 7.64 $ — Granted 345,106 $ 0.76 Exercised — $ — Cancelled (493,565 ) $ 20.26 Outstanding at June 30, 2016 630,569 $ 14.11 7.12 $ 44 Vested or expected to vest at June 30, 2016 574,093 $ 15.28 6.87 $ 38 Exercisable at June 30, 2016 254,071 $ 31.73 3.39 $ — As of June 30, 2016, there was approximately $0.4 million of unrecognized stock-based compensation, net of estimated forfeitures, related to unvested stock option grants having service-based vesting under the Plans which is expected to be recognized over a weighted-average period of 3.0 years. The total unrecognized stock-based compensation cost will be adjusted for future changes in estimated forfeitures. The weighted-average grant date fair value of options granted during the three months ended June 30, 2016 and 2015 was $0.41 and $2.89, respectively, and $0.47 and $2.91 for the six months ended June 30, 2016 and 2015, respectively. No options were exercised during the three months ended June 30, 2016 and 2015. The total intrinsic value of options exercised during the six months ended June 30, 2016 and 2015, was none and approximately $10,000, respectively. The intrinsic value represents the difference between the fair value of the Company’s common stock on the date of exercise and the exercise price of the stock option. Cash received from option exercises during the six months ended June 30, 2015 was approximately $1,500. No tax benefits were realized from options and other stock-based payment arrangements during these periods. The stock-based compensation plans provide that grantees may have the right to exercise an option prior to vesting. Shares purchased upon the exercise of unvested options will be subject to the same vesting schedule as the underlying options, and are subject to repurchase at the original exercise price by the Company should the grantee discontinue providing services to the Company for any reason, prior to becoming fully vested in such shares. At June 30, 2016 and December 31, 2015, there were no shares and 168 shares of common stock, respectively, issued pursuant to the exercise of unvested options that remain unvested and subject to repurchase by the Company. The exercise of these unvested shares is not substantive and as a result, the cash paid for the exercise price is considered a deposit or prepayment of the exercise price and is recorded as a liability. The liability related to these shares was approximately $4,000 at December 31, 2015. Additionally, while the shares of common stock subject to repurchase are included in the legally issued shares, they are excluded from the calculation of outstanding shares. Restricted Stock Units Each restricted stock unit (“RSU”) represents a contingent right to receive one share of the Company’s common stock. The RSUs outstanding at June 30, 2016 vest upon the achievement of certain product revenue, regulatory and reimbursement milestones. There is no consideration payable on the vesting of RSUs issued under the Plans. Upon vesting, the RSUs are exercised automatically and settled in shares of the Company’s common stock. The following table summarizes information related to the unvested RSUs and activity during the six months ended June 30, 2016: Number Weighted- Aggregate (in years) (in thousands) Outstanding at December 31, 2015 262,126 4.30 $ 278 Granted 392,659 Vested (5,000 ) Cancelled (246,284 ) Outstanding at June 30, 2016 403,501 9.62 $ 359 The aggregate intrinsic value at June 30, 2016 and December 31, 2015 noted in the table above represents the closing price of the Company’s common stock multiplied by the number of RSUs outstanding. The fair value of each RSU award equals the closing price of the Company’s common stock on the date of grant. The weighted-average grant date fair value per share of RSUs granted in the three and six months ended June 30, 2016 was $0.66 and $0.75, respectively. The weighted average grant date fair value per share of RSUs granted during the three and six months ended June 30, 2015 was $5.39. At June 30, 2016, all of the RSUs outstanding are subject to performance-based vesting criteria as described above. For these awards, the vesting will occur upon the achievement of certain product revenue, regulatory and reimbursement milestones. When achievement of the milestone is deemed probable, the Company expenses the compensation of the respective stock award over the implicit service period. During the three and six months ended June 30, 2016, the Company did not recognize any stock-based compensation for RSUs subject to performance-based vesting criteria. During the three months ended June 30, 2015 the Company did not recognize any stock-based compensation for RSUs subject to performance-based vesting criteria. During the six months ended June 30, 2015, the Company determined that a milestone previously deemed probable was now not probable of being achieved prior to the expiration of the award. This change in estimate was recognized through a cumulative adjustment in the six months ended June 30, 2015, resulting in a reduction of stock-based compensation of approximately $0.3 million, all of which was previously recognized in the year ended December 31, 2014. During the six months ended June 30, 2016, the cancellation of RSUs having service-based vesting resulted in a reduction of stock-based compensation of approximately $0.1 million, all of which was previously recognized. During the three and six months ended June 30, 2015, the Company recognized stock-based compensation related to RSUs having service-based vesting of approximately $0.1 million and $0.2 million, respectively. At June 30, 2016, no RSUs that have performance-based vesting criteria are considered probable of achievement and there remains approximately $0.3 million, net of estimated forfeitures, of unrecognized stock-based compensation.

Segment Reporting

Segment Reporting	6 Months Ended
	Jun. 30, 2016
Segment Reporting	13. Segment Reporting Operating segments are components of an enterprise for which separate financial information is available and is evaluated regularly by the Company’s chief operating decision-maker in deciding how to allocate resources and in assessing performance. The Company has one reportable segment which designs, develops, manufactures and markets medical devices for non-surgical approaches to treating type 2 diabetes and obesity. Geographic Reporting All the Company’s revenue is attributable to customers outside the U.S. The Company is dependent on favorable economic and regulatory environments for its products. Products are sold to customers located in Europe, the Middle East, the Asia Pacific region and South America and sales are attributed to a country or region based on the location of the customer to whom the products are sold. At June 30, 2016, long-lived assets, comprised of property and equipment, of approximately $0.1 million are all held in the U.S. Product sales by geographic location for the three and six months ended June 30, 2016 and 2015 are listed in the table below (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 Europe $ 65 $ 242 $ 207 $ 683 Middle East 43 17 87 118 South America — 5 — 34 Asia Pacific 24 46 47 91 Total Revenue $ 132 $ 310 $ 341 $ 926 Major Customers For the three months ended June 30, 2016, one health care provider accounted for approximately 18% of the Company’s revenue, and one distributor accounted for approximately 34%. For the three months ended June 30, 2015, one distributor and one health care provider each accounted for approximately 10% of the Company’s revenue. No other customer accounted for greater than 10% of the Company’s revenue during the three months ended June 30, 2016 and 2015. For the six months ended June 30, 2016, one health care provider accounted for approximately 13% of the Company’s revenue and two distributors each accounted for approximately 33%. For the six months ended June 30, 2015, one distributor accounted for approximately 18% of the Company’s revenue. No other customer accounted for greater than 10% of the Company’s revenue during the six months ended June 30, 2016 and 2015.

Summary of Significant Accoun19

Summary of Significant Accounting Policies and Basis of Presentation (Policies)	6 Months Ended
	Jun. 30, 2016
Principles of Consolidation	Principles of Consolidation The accompanying condensed consolidated financial statements include the accounts of GI Dynamics, Inc. and its wholly owned subsidiaries. All intercompany transactions and balances are eliminated in consolidation.
Use of Estimates	Use of Estimates The preparation of consolidated financial statements in accordance with GAAP requires the Company’s management to make estimates and judgments that may affect the reported amounts of assets, liabilities, revenues and expenses, and the related disclosure of contingent assets and liabilities. On an ongoing basis, the Company’s management evaluates its estimates, including those related to revenue recognition, allowance for doubtful accounts, inventory valuation including reserves for excess and obsolete inventory, impairment of long-lived assets, income taxes including the valuation allowance for deferred tax assets, research and development, contingencies, stock-based compensation, going concern considerations, and warrant valuations. The Company bases its estimates on historical experience and on various other assumptions that are believed to be reasonable, the results of which form the basis for making judgments about the carrying values of assets and liabilities. Actual results may differ from these estimates under different assumptions or conditions. Changes in estimates are reflected in reported results in the period in which they become known.
Guarantees	Guarantees The Company has identified the guarantees described below as disclosable, in accordance with ASC 460, Guarantees As permitted under Delaware law, the Company indemnifies its officers and directors for certain events or occurrences while the officer or director is, or was, serving at the Company’s request in such capacity. The maximum potential amount of future payments the Company could be required to make is unlimited; however, the Company has directors’ and officers’ insurance coverage that should limit its exposure and enable it to recover a portion of any future amounts paid. The Company is a party to a number of agreements entered into in the ordinary course of business that contain typical provisions that obligate the Company to indemnify the other parties to such agreements upon the occurrence of certain events. Such indemnification obligations are usually in effect from the date of execution of the applicable agreement for a period equal to the applicable statute of limitations. The aggregate maximum potential future liability of the Company under such indemnification provisions is uncertain. The Company leases office space under non-cancelable operating leases. The Company has standard indemnification arrangements under these leases that require it to indemnify its landlords against all costs, expenses, fines, suits, claims, demands, liabilities, and actions directly resulting from any breach, violation, or nonperformance of any covenant or condition of the respective lease. The aggregate maximum potential future liability of the Company under such indemnification provisions is uncertain. As of June 30, 2016 and December 31, 2015, the Company had not experienced any material losses related to these indemnification obligations, and no material claims with respect thereto were outstanding. The Company does not expect significant claims related to these indemnification obligations and, consequently, concluded that the fair value of these obligations is negligible. As a result, no related reserves have been established.
Restricted Cash	Restricted Cash Restricted balances of cash, which are shown under current financial assets as restricted funds, relate to funds set aside to secure a letter of credit to the lessor in lieu of a rental deposit for the property at 25 Hartwell Avenue, Lexington MA. The current/non-current classification is based on the expected timing of the expiration of the lease.
Subsequent Events	Subsequent Events The Company evaluates events occurring after the date of its condensed consolidated balance sheet for potential recognition or disclosure in its condensed consolidated financial statements. There have been no subsequent events that have occurred through the date the Company issued its condensed consolidated financial statements that require disclosure in or adjustment to its condensed consolidated financial statements.
New Accounting Pronouncements	New Accounting Pronouncements From time to time, new accounting pronouncements are issued by the Financial Accounting Standards Board (“FASB”) or other standard setting bodies that are adopted by the Company as of the specified effective date. Unless otherwise discussed, the Company believes that the effect of recently issued standards that are not yet effective will not have a material effect on its consolidated financial position or results of operations upon adoption. In May 2014, the FASB issued Accounting Standards Update (“ASU”) No. 2014-09 (“ASU 2014-09”), Revenue from Contracts with Customers Revenue Recognition In August 2014, the FASB issued ASU No. 2014-15, Presentation of Financial Statements-Going Concern: Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) In March 2016, the FASB issued ASU No. 2016-09, Compensation—Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting

Net Loss per Common Share (Tabl

Net Loss per Common Share (Tables)	6 Months Ended
	Jun. 30, 2016
Potentially Dilutive Securities Excluded from Computation of Diluted Weighted Average Shares	The following potentially dilutive securities have been excluded from the computation of diluted weighted-average shares outstanding as of June 30, 2016 and 2015, as they would be anti-dilutive: Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 Warrants to purchase common stock 78,532 50,000 78,532 50,000 Options to purchase common stock and other stock-based awards 1,034,070 1,506,880 1,034,070 1,506,880 1,112,602 1,556,880 1,112,602 1,556,880

Fair Value of Financial Instr21

Fair Value of Financial Instruments (Tables)	6 Months Ended
	Jun. 30, 2016
Fair Value of Assets and Liabilities Measured on Recurring Basis	The following tables present the assets and liabilities the Company has measured at fair value on a recurring basis (in thousands): Fair Value Measurements at Reporting Date Using Description June 30, 2016 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets Money market funds (included in cash, cash equivalents and restricted cash) $ 9,881 $ 9,881 $ — $ — Total assets $ 9,881 $ 9,881 $ — $ — Liabilities Warrants to purchase common stock $ 17 $ — $ — $ 17 Total liabilities $ 17 $ — $ — $ 17 Fair Value Measurements at Reporting Date Using Description December 31, Quoted Prices in Significant Other Significant Assets Money market funds (included in cash and cash equivalents) $ 17,207 $ 17,207 $ — $ — Total assets $ 17,207 $ 17,207 $ — $ — Liabilities Warrants to purchase common stock $ — $ — $ — $ — Total liabilities $ — $ — $ — $ —
Rollforward of Fair Value of Warrants	The following table rolls forward the fair value of the Warrants, where fair value is determined by Level 3 inputs (in thousands): Balance at December 31, 2015 $ — Issuance of Consultant Warrant 11 Increase in fair value of Warrants upon remeasurement included in other income (expense) 6 Balance at June 30, 2016 $ 17
IPO Warrants
Assumptions Used in the Black-Scholes Option Pricing Model to Determine the Fair Value of the IPO Warrants	The assumptions used in the Black-Scholes option pricing model to determine the fair value of the IPO Warrants at June 30, 2016 and December 31, 2015 were as follows: June 30, 2016 December 31, 2015 Exercise price (A$55.00 at the then current exchange rate) $ 40.84 $ 40.18 Fair value of common stock $ 0.89 $ 1.06 Expected volatility 128.4 % 165.6 % Expected term (in years) 0.2 0.7 Risk-free interest rate 0.2 % 0.5 % Expected dividend yield — % — %
Consultant Warrant
Assumptions Used in the Black-Scholes Option Pricing Model to Determine the Fair Value of the IPO Warrants	The assumptions used in the Black-Scholes option pricing model to determine the fair value of the Consultant Warrant at the time the Consultant Warrant was issued and at June 30, 2016 were as follows: At Issuance June 30, 2016 Exercise price $ 0.64 $ 0.64 Fair value of common stock $ 0.64 $ 0.89 Expected volatility 74.1 % 76.8 % Expected term (in years) 5.0 4.9 Risk-free interest rate 1.2 % 1.0 % Expected dividend yield — % — %

Concentrations of Credit Risk22

Concentrations of Credit Risk, Accounts Receivable and Related Valuation Accounts (Tables)	6 Months Ended
	Jun. 30, 2016
Components of Company's Accounts Receivable	The following table shows the components of the Company’s accounts receivable at June 30, 2016 and December 31, 2015 (in thousands): June 30, 2016 December 31, 2015 Accounts receivable $ 48 $ 121 Less: allowance for doubtful accounts (12 ) (59 ) Less: allowance for sales returns (14 ) (22 ) Total $ 22 $ 40
Roll Forward of Allowance for Doubtful Accounts	The following is a roll forward of the Company’s allowance for doubtful accounts (in thousands): Six Months Ended June 30, 2016 2015 Beginning balance $ 59 $ 41 Net charges to expenses 1 73 Utilization of allowances (48 ) — Ending balance $ 12 $ 114

Inventory (Tables)

Inventory (Tables)	6 Months Ended
	Jun. 30, 2016
Inventory Net	Inventory, net, at June 30, 2016 and December 31, 2015 was as follows (in thousands): June 30, 2016 December 31, 2015 Finished goods $ 504 $ 391 Work-in-process — 605 Raw materials — 29 Total $ 504 $ 1,025

Property and Equipment (Tables)

Property and Equipment (Tables)	6 Months Ended
	Jun. 30, 2016
Property and Equipment	Property and equipment consisted of the following (in thousands): June 30, 2016 December 31, 2015 Laboratory equipment and manufacturing equipment $ 339 $ 457 Computer equipment and software 1,116 1,118 Office furniture and equipment 175 229 Leasehold improvements — 848 1,631 2,652 Less accumulated depreciation and amortization (1,536 ) (2,251 ) Total $ 95 $ 401
Recognized Charge for Impaired Property and Equipment	As a result, in June 2015 the Company recognized a charge for impaired property and equipment related to the facility as follows for the three and six months ended June 30, 2016 (in thousands): Three Months Ended Six Months Ended 2016 2015 2016 2015 Cost of revenue $ 24 $ — $ 24 $ — Research and development 79 — 74 — Sales and marketing — — — — General and administrative 42 — 42 — $ 145 $ — $ 145 $ —

Accrued Expenses and Other Cu25

Accrued Expenses and Other Current Liabilities (Tables)	6 Months Ended
	Jun. 30, 2016
Accrued Expenses and Other Current Liabilities	Accrued expenses and other current liabilities consisted of the following (in thousands): June 30, 2016 December 31, 2015 Clinical trials $ 395 $ 1,809 Payroll and related liabilities 543 501 Professional fees 425 454 Deferred rent, current portion 86 168 Other 166 154 Total $ 1,615 $ 3,086

Commitments and Contingencies (

Commitments and Contingencies (Tables)	6 Months Ended
	Jun. 30, 2016
Future Minimum Lease Payments under All Noncancelable Lease Arrangements	Future minimum lease payments under all noncancelable lease arrangements at June 30, 2016, are as follows (in thousands): Year Ending December 31, 2016 $ 322 2017 146 2018 48 Total $ 516

Stock Plans (Tables)

Stock Plans (Tables)	6 Months Ended
	Jun. 30, 2016
Stock-Based Compensation	Stock-based compensation is reflected in the condensed consolidated statements of operations and comprehensive loss as follows for the three and six months ended June 30, 2016 and 2015 (in thousands): Three Months Ended Six Months Ended 2016 2015 2016 2015 Cost of revenue $ 16 $ 25 $ 34 $ 47 Research and development 20 162 44 348 Sales and marketing 38 111 95 256 General and administrative 154 621 336 962 $ 228 $ 919 $ 509 $ 1,613
Weighted-average Assumptions used to Estimate Fair Value of Stock Options	The weighted-average assumptions used to estimate the fair value of employee stock options using the Black-Scholes option-pricing model were as follows for the three and six months ended June 30, 2016 and 2015: Three Months Ended Six Months Ended 2016 2015 2016 2015 Expected volatility 69.6 % 56.8 % 68.9 % 56.8 % Expected term (in years) 6.05 6.04 6.05 6.04 Risk-free interest rate 1.4 % 1.6 % 1.5 % 1.6 % Expected dividend yield — % — % — % — %
Share-Based Activity	The following table summarizes share-based activity under the Company’s stock option plans: Shares of Weighted- Weighted- Aggregate (in years) (in thousands) Outstanding at December 31, 2015 779,028 $ 23.92 7.64 $ — Granted 345,106 $ 0.76 Exercised — $ — Cancelled (493,565 ) $ 20.26 Outstanding at June 30, 2016 630,569 $ 14.11 7.12 $ 44 Vested or expected to vest at June 30, 2016 574,093 $ 15.28 6.87 $ 38 Exercisable at June 30, 2016 254,071 $ 31.73 3.39 $ —
Unvested Restricted Stock Units and Activity	The following table summarizes information related to the unvested RSUs and activity during the six months ended June 30, 2016: Number Weighted- Aggregate (in years) (in thousands) Outstanding at December 31, 2015 262,126 4.30 $ 278 Granted 392,659 Vested (5,000 ) Cancelled (246,284 ) Outstanding at June 30, 2016 403,501 9.62 $ 359

Segment Reporting (Tables)

Segment Reporting (Tables)	6 Months Ended
	Jun. 30, 2016
Product Sales by Geographic Location	Product sales by geographic location for the three and six months ended June 30, 2016 and 2015 are listed in the table below (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 Europe $ 65 $ 242 $ 207 $ 683 Middle East 43 17 87 118 South America — 5 — 34 Asia Pacific 24 46 47 91 Total Revenue $ 132 $ 310 $ 341 $ 926

Nature of Business - Additional

Nature of Business - Additional Information (Detail) $ in Thousands	May 10, 2016	Aug. 21, 2015	Jun. 30, 2016USD ($)SegmentPatient	Dec. 31, 2015USD ($)
Nature Of Operations [Line Items]
Number of reportable segments | Segment			1
Number of patients to enroll under double-blinded study plan with uncontrolled type 2 diabetes and obesity | Patient			500
Percentage of reducing headcount	30.00%	46.00%
Accumulated deficit			$ (242,415)	$ (235,087)
Cash, cash equivalents and restricted cash			$ 12,400

Summary of Significant Accoun30

Summary of Significant Accounting Policies and Basis of Presentation - Additional Information (Detail) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
Summary Of Significant Accounting Policies [Line Items]
Decrease in accrual for clinical trial related expenses and research and development expenses	$ (1,384)	$ (2,111)
Clinical Trial Related Expenses And Research And Development Expense
Summary Of Significant Accounting Policies [Line Items]
Decrease in accrual for clinical trial related expenses and research and development expenses	$ (400)

Potentially Dilutive Securities

Potentially Dilutive Securities Excluded from Computation of Diluted Weighted Average Shares (Detail) - shares	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share	1,112,602	1,556,880	1,112,602	1,556,880
Warrant
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share	78,532	50,000	78,532	50,000
Options to purchase common stock and other stock-based awards
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share	1,034,070	1,506,880	1,034,070	1,506,880

Common Stock Warrants - Additio

Common Stock Warrants - Additional Information (Detail)	May 04, 2016$ / sharesshares	Jun. 30, 2016shares	Sep. 30, 2011AUD / sharesshares
Class of Warrant or Right [Line Items]
Common stock warrants, shares issued in connection with IPO			50,000
Common stock warrant, exercise price | AUD / shares			AUD 55
Common stock warrant, share reserved			50,000
IPO
Class of Warrant or Right [Line Items]
Common stock warrant, shares exercised		0
Consulting Agreement | Consultant Warrant and IPO Warrants
Class of Warrant or Right [Line Items]
Common stock warrants, shares issued in connection with IPO	28,532
Common stock warrant, exercise price | $ / shares	$ 0.64
Consulting Agreement | Consultant Warrant
Class of Warrant or Right [Line Items]
Common stock warrant, share reserved	28,532
Common stock warrant, shares exercised		0
Vesting period of warrants	2 years
Contractual life of warrants	5 years

Fair Value of Assets and Liabil

Fair Value of Assets and Liabilities Measured on Recurring Basis (Detail) - Fair Value, Measurements, Recurring - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets	$ 9,881	$ 17,207
Total liabilities	17
Money Market Funds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
cash equivalents and restricted cash	9,881
Cash and cash equivalents		17,207
Other Liabilities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Warrants to purchase common stock	17
Quoted Prices in Active Markets for Identical Assets (Level 1)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets	9,881	17,207
Quoted Prices in Active Markets for Identical Assets (Level 1) | Money Market Funds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
cash equivalents and restricted cash	9,881
Cash and cash equivalents		$ 17,207
Significant Unobservable Inputs (Level 3)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total liabilities	17
Significant Unobservable Inputs (Level 3) | Other Liabilities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Warrants to purchase common stock	$ 17

Assumptions used in Black-Schol

Assumptions used in Black-Scholes Option Pricing Model to Determine the Fair Value of Warrants (Detail)	May 04, 2016$ / shares	Jun. 30, 2016$ / shares	Dec. 31, 2015$ / shares	Jun. 30, 2016AUD / shares	Dec. 31, 2015AUD / shares
IPO Warrants
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Exercise price | (per share)		$ 40.84	$ 40.18	AUD 55	AUD 55
Fair value of common stock		$ 0.89	$ 1.06
Expected volatility		128.40%	165.60%
Expected term		2 months 12 days	8 months 12 days
Risk-free interest rate		0.20%	0.50%
Expected dividend yield		0.00%	0.00%
Consultant Warrant
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Exercise price	$ 0.64	$ 0.64
Fair value of common stock	$ 0.64	$ 0.89
Expected volatility	74.10%	76.80%
Expected term	5 years	4 years 10 months 24 days
Risk-free interest rate	1.20%	1.00%
Expected dividend yield	0.00%	0.00%

Assumptions used in Black-Sch35

Assumptions used in Black-Scholes Option Pricing Model to Determine the Fair Value of Warrants (Parenthetical) (Detail)	Jun. 30, 2016$ / shares	Jun. 30, 2016AUD / shares	Dec. 31, 2015$ / shares	Dec. 31, 2015AUD / shares
IPO Warrants
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Exercise price | (per share)	$ 40.84	AUD 55	$ 40.18	AUD 55

Rollforward of Fair Value of Wa

Rollforward of Fair Value of Warrants (Detail) - Warrant $ in Thousands	6 Months Ended
	Jun. 30, 2016USD ($)
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Issuance of Consultant Warrant	$ 11
Increase in fair value of Warrants upon remeasurement included in other income (expense)	6
Ending balance	$ 17

Concentrations of Credit Risk37

Concentrations of Credit Risk, Accounts Receivable and Related Valuation Accounts - Additional Information (Detail)	3 Months Ended			6 Months Ended		12 Months Ended
	Jun. 30, 2016USD ($)	Mar. 31, 2016USD ($)	Jun. 30, 2015USD ($)	Jun. 30, 2016USD ($)CustomerDistributor	Jun. 30, 2015USD ($)	Dec. 31, 2015USD ($)Customer
Accounts, Notes, Loans and Financing Receivable [Line Items]
Allowance for doubtful accounts | $	$ 12,000			$ 12,000		$ 59,000
Write-offs of uncollectible accounts receivable | $	48,000	$ 0	$ 0		$ 0
Allowance for sales returns | $	$ 14,000			$ 14,000		$ 22,000
Accounts Receivable | Credit Concentration Risk | Health Care Provider One
Accounts, Notes, Loans and Financing Receivable [Line Items]
Number of customers						1
Concentration risk percentage						15.00%
Accounts Receivable | Credit Concentration Risk | Health Care Provider Two
Accounts, Notes, Loans and Financing Receivable [Line Items]
Number of customers						1
Concentration risk percentage						11.00%
Accounts Receivable | Credit Concentration Risk | Health Care Provider Three
Accounts, Notes, Loans and Financing Receivable [Line Items]
Number of customers						1
Concentration risk percentage						11.00%
Accounts Receivable | Credit Concentration Risk | Health Care Provider Four
Accounts, Notes, Loans and Financing Receivable [Line Items]
Number of customers						1
Concentration risk percentage						10.00%
Accounts Receivable | Credit Concentration Risk | Other Customer
Accounts, Notes, Loans and Financing Receivable [Line Items]
Number of customers				0		0
Accounts Receivable | Credit Concentration Risk | Distributor One
Accounts, Notes, Loans and Financing Receivable [Line Items]
Number of customers | Distributor				1
Concentration risk percentage				44.00%
Accounts Receivable | Credit Concentration Risk | Customer One
Accounts, Notes, Loans and Financing Receivable [Line Items]
Number of customers						1
Concentration risk percentage						46.00%

Components of Company's Account

Components of Company's Accounts Receivable (Detail) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Valuation and Qualifying Accounts Disclosure [Line Items]
Accounts receivable	$ 48	$ 121
Less: allowance for doubtful accounts	(12)	(59)
Less: allowance for sales returns	(14)	(22)
Total	$ 22	$ 40

Roll Forward of Allowance for D

Roll Forward of Allowance for Doubtful Accounts (Detail) - Allowance for Doubtful Accounts - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
Valuation and Qualifying Accounts Disclosure [Line Items]
Beginning balance	$ 59	$ 41
Net charges to expenses	1	73
Utilization of allowances	(48)
Ending balance	$ 12	$ 114

Inventory - Additional Informat

Inventory - Additional Information (Detail) - USD ($) $ in Thousands	6 Months Ended		12 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Dec. 31, 2015
Inventory [Line Items]
Change in inventory reserves	$ (191)	$ 1,487	$ 3,200
Raw material inventory reserve	$ 4,800		$ 5,000
Percentage of consignment inventories	6.00%		6.00%

Inventory Net (Detail)

Inventory Net (Detail) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Inventory [Line Items]
Finished goods	$ 504	$ 391
Work-in-process		605
Raw materials		29
Total	$ 504	$ 1,025

Property and Equipment (Detail)

Property and Equipment (Detail) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Property, Plant and Equipment [Line Items]
Property Plant and equipment gross	$ 1,631	$ 2,652
Less: accumulated depreciation and amortization	(1,536)	(2,251)
Total	95	401
Laboratory equipment and manufacturing equipment
Property, Plant and Equipment [Line Items]
Property Plant and equipment gross	339	457
Computer equipment and software
Property, Plant and Equipment [Line Items]
Property Plant and equipment gross	1,116	1,118
Office furniture and equipment
Property, Plant and Equipment [Line Items]
Property Plant and equipment gross	$ 175	229
Leasehold Improvements
Property, Plant and Equipment [Line Items]
Property Plant and equipment gross		$ 848

Recognized Charge for Impaired

Recognized Charge for Impaired Property and Equipment (Detail) - USD ($) $ in Thousands	3 Months Ended	6 Months Ended
	Jun. 30, 2016	Jun. 30, 2016
Impaired Long-Lived Assets Held and Used [Line Items]
Impairment of fixed assets	$ 145	$ 145
Cost of revenue
Impaired Long-Lived Assets Held and Used [Line Items]
Impairment of fixed assets	24	24
Research and Development Expense
Impaired Long-Lived Assets Held and Used [Line Items]
Impairment of fixed assets	79	74
General and Administrative Expense
Impaired Long-Lived Assets Held and Used [Line Items]
Impairment of fixed assets	$ 42	$ 42

Property and Equipment - Additi

Property and Equipment - Additional Information (Detail) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015	Mar. 31, 2015
Property, Plant and Equipment [Line Items]
Assets under capital leases	$ 8,000		$ 8,000		$ 8,000
Depreciation and amortization expense including equipment recorded under capital leases	100,000	$ 100,000	200,000	$ 300,000
Office Equipment
Property, Plant and Equipment [Line Items]
Capital Leased assets accumulated amortization	$ 3,400		$ 3,400

Accrued Expenses and Other Cu45

Accrued Expenses and Other Current Liabilities (Detail) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Accrued Liabilities [Line Items]
Clinical trials	$ 395	$ 1,809
Payroll and related liabilities	543	501
Professional fees	425	454
Deferred rent, current portion	86	168
Other	166	154
Total	$ 1,615	$ 3,086

Accrued Expenses - Additional I

Accrued Expenses - Additional Information (Detail) $ in Millions	6 Months Ended
	Jun. 30, 2016USD ($)
Accrued Liabilities [Line Items]
Separation related expenses	$ 0.1

Commitments and Contingencies -

Commitments and Contingencies - Additional Information (Detail)	1 Months Ended			3 Months Ended		6 Months Ended
	Jun. 30, 2016USD ($)ft²	Mar. 31, 2015USD ($)	Jun. 30, 2013USD ($)ft²	Jun. 30, 2016USD ($)ft²	Jun. 30, 2015USD ($)	Jun. 30, 2016USD ($)ft²	Jun. 30, 2015USD ($)
Loss Contingencies [Line Items]
Rentable area of leased premises | ft²	4,200		33,339	4,200		4,200
Annual base rent under lease			$ 600,000
Annual increase to base rent			17,000
Letter of credit			$ 200,000
Rent expense	$ 11,900			$ 100,000	$ 100,000	$ 200,000	$ 200,000
Assets under capital leases	$ 8,000	$ 8,000		$ 8,000		$ 8,000
Capital lease term		3 years
Capital lease interest rate		14.10%

Future Minimum Lease Payments U

Future Minimum Lease Payments Under All Noncancelable Lease Arrangements (Detail) $ in Thousands	Jun. 30, 2016USD ($)
Operating Leased Assets [Line Items]
2,016	$ 322
2,017	146
2,018	48
Total	$ 516

Stockholders' Equity - Addition

Stockholders' Equity - Additional Information (Detail) - shares	Jun. 30, 2016	Dec. 31, 2015
Class of Stock [Line Items]
Capital stock, shares authorized	14,500,000
Common stock, shares authorized	13,000,000	13,000,000
Preferred stock, shares authorized	500,000	500,000
Class B common stock
Class of Stock [Line Items]
Common stock, shares authorized	1,000,000	1,000,000
Common stock
Class of Stock [Line Items]
Common stock, shares authorized	13,000,000

Stock Plans - Additional Inform

Stock Plans - Additional Information (Detail)	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2016USD ($)CompensationPlan$ / sharesshares	Jun. 30, 2015USD ($)$ / sharesshares	Jun. 30, 2016USD ($)CompensationPlan$ / sharesshares	Jun. 30, 2015USD ($)$ / shares	Dec. 31, 2015USD ($)shares	Dec. 31, 2014USD ($)	Mar. 31, 2016shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of stock-based compensation plans | CompensationPlan	2		2
Shares available for future grants | shares	1,304,275		1,304,275				380,222
Annual increase in number of shares available for grant | shares			500,000
Percentage of common shares outstanding			4.00%
Expense associated with modification and vesting of options granted			$ 19,000
Estimated forfeiture rates			15.00%	10.00%
Unrecognized stock-based compensation	$ 400,000		$ 400,000
Weighted-average grant date fair value of options granted | $ / shares	$ 0.41	$ 2.89	$ 0.47	$ 2.91
Exercised | shares	0	0
Option exercised total intrinsic value			$ 0	$ 10,000
Proceeds from exercise of stock options				2,000
Tax benefits realized from options and other stock-based payment			$ 0
Shares of common stock issued pursuant to exercise of unvested options | shares	0		0		168
Cash paid for the exercise price					$ 4,000
Share-based compensation expense	$ 228,000	$ 919,000	$ 509,000	$ 1,613,000
Stock Option
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Recognized weighted-average period years			3 years
Performance Shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized stock based compensation	$ 300,000		$ 300,000
Restricted Stock Units (RSUs)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares of common stock to be received, per restricted stock unit	1		1
Weighted average grant date fair value per share | $ / shares	$ 0.66	$ 5.39	$ 0.75	$ 5.39
Share-based compensation expense	$ 0	$ 0	$ 0			$ 300,000
Restricted Stock Units (RSUs) Having Service-Based Vesting
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation expense		$ 100,000	$ 100,000	$ 200,000

Stock-Based compensation Reflec

Stock-Based compensation Reflected in Consolidated Statements of Operations and Comprehensive Loss (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation expense	$ 228	$ 919	$ 509	$ 1,613
Cost of revenue
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation expense	16	25	34	47
Research and Development Expense
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation expense	20	162	44	348
Sales and marketing
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation expense	38	111	95	256
General and Administrative Expense
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation expense	$ 154	$ 621	$ 336	$ 962

Weighted-average Assumptions us

Weighted-average Assumptions used to Estimate Fair Value of Stock Options (Detail)	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected volatility	69.60%	56.80%	68.90%	56.80%
Expected term (in years)	6 years 18 days	6 years 15 days	6 years 18 days	6 years 15 days
Risk-free interest rate	1.40%	1.60%	1.50%	1.60%
Expected dividend yield	0.00%	0.00%	0.00%	0.00%

Share-Based Activity (Detail)

Share-Based Activity (Detail) - USD ($) $ / shares in Units, $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2016	Dec. 31, 2015
Options
Outstanding, beginning balance	779,028
Granted	345,106
Exercised	0
Cancelled	(493,565)
Outstanding, ending balance	630,569	779,028
Vested or expected to vest at June 30, 2016	574,093
Exercisable at June 30, 2016	254,071
Weighted Average Exercise Price
Outstanding, beginning balance	$ 23.92
Granted	0.76
Exercised	0
Cancelled	20.26
Outstanding, ending balance	14.11	$ 23.92
Vested or expected to vest at June 30, 2016	15.28
Exercisable at June 30, 2016	$ 31.73
Weighted Average Contractual Life (in Years)
Outstanding at end of period	7 years 1 month 13 days	7 years 7 months 21 days
Vested or expected to vest at June 30, 2016	6 years 10 months 13 days
Exercisable at June 30, 2016	3 years 4 months 21 days
Aggregate Intrinsic Value
Outstanding at end of period	$ 44
Vested or expected to vest at June 30, 2016	38
Exercisable at June 30, 2016	$ 0

Unvested Restricted Stock Units

Unvested Restricted Stock Units and Activity (Detail) - Restricted Stock Units (RSUs) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2016	Dec. 31, 2015
Number of Units
Outstanding, beginning balance	262,126
Granted	392,659
Vested	(5,000)
Cancelled	(246,284)
Outstanding, ending balance	403,501	262,126
Weighted Average Contractual Life (in years)
Outstanding at end of period	9 years 7 months 13 days	4 years 3 months 18 days
Aggregate Intrinsic Value
Outstanding Aggregate Intrinsic Value	$ 359	$ 278

Segment Reporting - Additional

Segment Reporting - Additional Information (Detail) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2016USD ($)Customer	Jun. 30, 2015Customer	Jun. 30, 2016USD ($)CustomerSegment	Jun. 30, 2015Customer
Revenues from External Customers and Long-Lived Assets [Line Items]
Number of reportable segments | Segment			1
Long-lived assets | $	$ 0.1		$ 0.1
Sales Revenue, Net | Customer Concentration Risk | Health Care Provider
Revenues from External Customers and Long-Lived Assets [Line Items]
Number of customers	1	1	1
Concentration risk percentage	18.00%	10.00%	13.00%
Sales Revenue, Net | Customer Concentration Risk | Distributor One
Revenues from External Customers and Long-Lived Assets [Line Items]
Number of customers	1	1	2	1
Concentration risk percentage	34.00%	10.00%	33.00%	18.00%
Sales Revenue, Net | Customer Concentration Risk | Other Customer
Revenues from External Customers and Long-Lived Assets [Line Items]
Number of customers	0	0	0	0

Product Sales by Geographic Loc

Product Sales by Geographic Location (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue	$ 132	$ 310	$ 341	$ 926
Europe
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue	65	242	207	683
Middle East
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue	43	17	87	118
South America
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue		5		34
Asia Pacific
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue	$ 24	$ 46	$ 47	$ 91