Gi Dynamics (GIDYL) 10-K 30 Mar 17 2016 FY Annual report Financial data

Document and Entity Information

Document and Entity Information	12 Months Ended
	Dec. 31, 2016	Mar. 15, 2017shares	Jun. 30, 2016AUD	Jun. 30, 2016USD ($)
Document Information [Line Items]
Document Type	10-K
Amendment Flag	false
Document Period End Date	Dec. 31, 2016
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	FY
Trading Symbol	GIDYL
Entity Registrant Name	GI DYNAMICS, INC.
Entity Central Index Key	1,245,791
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	No
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Filer Category	Non-accelerated Filer
Entity Common Stock, Shares Outstanding		11,157,489
Entity Public Float			AUD 11,412,668	$ 8,475,047

Consolidated Balance Sheets

Consolidated Balance Sheets $ in Thousands, € in Millions, AUD in Millions	Dec. 31, 2016USD ($)	Dec. 31, 2015USD ($)
Current assets:
Cash and cash equivalents	$ 8,293	$ 19,590
Restricted Cash	30
Accounts receivable, net	30	40
Inventory	213	1,025
Prepaid expenses and other current assets	483	726
Total current assets	9,049	21,381
Property and equipment, net	149	401
Total assets	9,198	21,782
Current liabilities:
Accounts payable	1,006	435
Accrued expenses	1,160	3,068
Deferred revenue	11	11
Other current liabilities	214	7
Total current liabilities	2,391	3,521
Other liabilities		3
Warrants liability	17
Commitments (Note 11)
Stockholders' equity:
Preferred stock, $0.01 par value - 500,000 shares authorized; no shares issued and outstanding at December 31, 2016 and 2015
Common stock	109	95
Additional paid-in capital	254,884	253,250
Accumulated deficit	(248,203)	(235,087)
Total stockholders' equity	6,790	18,258
Total liabilities and stockholders' equity	$ 9,198	$ 21,782

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - $ / shares	Dec. 31, 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	10,907,857	9,505,557
Common stock, shares outstanding	10,907,857	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

Consolidated Statements of Oper

Consolidated Statements of Operations and Comprehensive Loss - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016		Dec. 31, 2015		Dec. 31, 2014
Revenue	$ 545		$ 1,316		$ 2,828
Cost of revenue	1,291		5,723		4,089
Gross loss	(746)	[1]	(4,407)	[1]	(1,261)
Operating expenses:
Research and development	3,928		16,635		26,654
Sales and marketing	2,194		5,073		10,023
General and administrative	6,250		8,391		10,252
Total operating expenses	12,372		30,099		46,929
Loss from operations	(13,118)		(34,506)		(48,190)
Other income (expense):
Interest income	42		68		253
Interest expense			(1)		(1)
Foreign exchange loss	10		(647)		(514)
Re-measurement of warrant liability	(17)		9		317
Other income (expense), net	35		(571)		55
Loss before income tax expense	(13,083)		(35,077)		(48,135)
Income tax expense	33		84		70
Net loss	$ (13,116)		$ (35,161)		$ (48,205)
Basic and diluted net loss per common share	$ (1.37)		$ (3.71)		$ (5.36)
Weighted-average number of common shares used in basic and diluted net loss per common share	9,555,246		9,488,063		8,997,754
Comprehensive loss	$ (13,116)		$ (35,161)		$ (48,205)
[1]	In the second quarter of 2016 the Company recorded a reduction of cost of revenue of approximately $0.2 million and in the fourth quarter 2016 the Company recorded a change of approximately $0.1 million to cost of revenue for excess, expired and obsolete inventory, In the second and fourth quarter of 2015, the Company recorded a charge to cost of revenue of approximately $1.7 million and $1.5 million, respectively, for excess, expired and obsolete inventory.

Consolidated Statements of Stoc

Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands	Total	Common stock	Additional Paid-in Capital	Accumulated Deficit
Beginning Balance at Dec. 31, 2013	$ 62,385	$ 80	$ 214,026	$ (151,721)
Beginning Balance (in shares) at Dec. 31, 2013		8,008,772
Issuance of common stock upon exercise of stock options/vesting of shares subject to repurchase	546	$ 2	544
Issuance of common stock upon exercise of stock options/vesting of shares subject to repurchase (in share)		152,374
Issuance of shares upon private placement and share purchase plan, net of issuance costs	30,782	$ 13	30,769
Issuance of shares upon private placement and share purchase plan, net of issuance costs (in shares)		1,319,025
Stock-based compensation expense	4,670		4,670
Net loss	(48,205)			(48,205)
Ending Balance at Dec. 31, 2014	50,178	$ 95	250,009	(199,926)
Ending Balance (in shares) at Dec. 31, 2014		9,480,171
Issuance of common stock upon exercise of stock options and vesting of restricted stock	2		2
Issuance of common stock upon exercise of stock options and vesting of restricted stock (in shares)		21,886
Issuance of common stock upon exercise of stock options/vesting of shares subject to repurchase	78		78
Issuance of common stock upon exercise of stock options/vesting of shares subject to repurchase (in share)		3,332
Stock-based compensation expense	3,161		3,161
Net loss	(35,161)			(35,161)
Ending Balance at Dec. 31, 2015	18,258	$ 95	253,250	(235,087)
Ending Balance (in shares) at Dec. 31, 2015		9,505,389
Issuance of common stock upon exercise of stock options and vesting of restricted stock (in shares)		5,000
Issuance of common stock upon exercise of stock options/vesting of shares subject to repurchase	3		3
Issuance of common stock upon exercise of stock options/vesting of shares subject to repurchase (in share)		168
Issuance of shares upon private placement, net of issuance costs	978	$ 14	964
Issuance of shares upon private placement, net of issuance costs (in shares)		1,397,300
Stock-based compensation expense	667		667
Net loss	(13,116)			(13,116)
Ending Balance at Dec. 31, 2016	$ 6,790	$ 109	$ 254,884	$ (248,203)
Ending Balance (in shares) at Dec. 31, 2016		10,907,857

Consolidated Statements of Sto6

Consolidated Statements of Stockholders' Equity (Parenthetical) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2014
Issuance of shares upon private placement and share purchase plan, issuance costs	$ 0.1	$ 1.4

Consolidated Statements of Cash

Consolidated Statements of Cash Flows $ in Thousands, € in Millions, AUD in Millions	12 Months Ended
	Dec. 31, 2016USD ($)	Dec. 31, 2015USD ($)	Dec. 31, 2014USD ($)
Operating activities
Net loss	$ (13,116)	$ (35,161)	$ (48,205)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	190	486	656
Impairment and abandonment of fixed assets	145	389
Stock-based compensation expense	667	3,161	4,670
Re-measurement of warrant liability	17	(9)	(317)
Loss on sale of property and equipment	7
Change in inventory reserve	(77)	3,155	1,527
Changes in operating assets and liabilities:
Accounts receivable	10	430	190
Prepaid expenses and other current assets	243	439	123
Inventory	889	1,308	256
Other assets		97	(97)
Accounts payable	571	(447)	(385)
Accrued expenses	(1,908)	(4,772)	3,273
Deferred revenue		(401)	(310)
Other liabilities		(97)	97
Net cash used in operating activities	(12,362)	(31,422)	(38,522)
Investing activities
Purchases of property and equipment	(94)	(179)	(255)
Proceeds from sale of property and equipment	3
Change in restricted cash	(30)
Net cash used in investing activities	(121)	(179)	(255)
Financing activities
Proceeds from exercise of stock options	0	2	628
Proceeds from issuance of shares	978		30,782
Proceeds from borrowings	305
Payments on capital leases	(2)	(2)
Payments on long-term debt	(95)		(58)
Net cash provided by financing activities	1,186		31,352
Net decrease in cash and cash equivalents	(11,297)	(31,601)	(7,425)
Cash and cash equivalents at beginning of year	19,590	51,191	58,616
Cash and cash equivalents at end of year	8,293	19,590	51,191
Supplemental cash flow disclosures
Cash paid for interest		1	1
Income taxes paid	73	140	$ 46
Payments for equipment acquired under capital lease		$ 8
Issuance of common stock upon vesting of shares subject to repurchase	$ 3

Nature of Business

Nature of Business	12 Months Ended
	Dec. 31, 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 Boston, 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 near-term goal is to establish EndoBarrier Therapy as a vital 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 ® non-anatomy In 2011, the Company began commercial sales of its product, the 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. In the second half of fiscal 2015, the Company announced its decision to stop the ENDO Trial. 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 remained available for it to establish new priorities, continue limited market development and research, and to evaluate strategic options. In the second and third quarters of fiscal 2016, the Company took additional actions that it thought necessary to allow the opportunity to evolve its strategic options. These actions resulted in non-recurring In October 2016 we received final cancellation notification from the Therapeutic Goods Administration ( TGA ARTG Currently, the Company is focused on commercialization efforts within select European Union and Middle East countries and is re-engaging The Company has incurred operating losses since inception and at December 31, 2016, had an accumulated deficit of approximately $248.2 million. GI Dynamics expects to incur significant operating losses for the next several years. At December 31, 2016, the Company had approximately $8.3 million in cash and 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 will need to raise additional funding prior to September 30, 2017 in order to continue to pursue its current business objectives as planned and to continue to fund its operations. 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 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 consolidated financial statements for the year ended December 31, 2016 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. In September 2011, the Company completed its initial public offering (“IPO”) of common stock in the form of CHESS Depositary Interests (“CDIs”) in Australia. As a result of the IPO and simultaneous private placement in the U.S., the Company raised a total of approximately $72.5 million in proceeds, net of expenses and repayment of $6.0 million of the Company’s Convertible Term Promissory Notes. Additionally, in July and August 2013, the Company sold CDIs on the Australian Securities Exchange (“ASX”) through a private placement and Share Purchase Plan (“SPP”), which raised a total of approximately $52.5 million, net of expenses. In May 2014, the Company raised an additional approximately $30.8 million, net of expenses, when it sold CDIs on the ASX through a private placement. On December 20, 2016 the company completed a private placement sale of 69,865,000 CDI’s (1,397,300 shares) for approximately $1.0 million, net of expenses.

Summary of Significant Accounti

Summary of Significant Accounting Policies and Basis of Presentation	12 Months Ended
	Dec. 31, 2016
Summary of Significant Accounting Policies and Basis of Presentation	2. Summary of Significant Accounting Policies and Basis of Presentation Principles of Consolidation The accompanying consolidated financial statements include the accounts of GI Dynamics, Inc. and its wholly owned subsidiaries. All intercompany transactions and balances are eliminated in consolidation. The functional currency of GID Europe Holding B.V., GID Europe B.V., GID Germany GmbH and GI Dynamics Australia Pty Ltd is the U.S. dollar. Consolidated balance sheet accounts of the Company’s subsidiaries are translated into U.S. dollars using the exchange rate in effect at the consolidated balance sheet date while expenses are translated using the average exchange rate in effect during the period. Gains and losses arising from translation of the wholly owned subsidiaries’ financial statements are included in the determination of net loss. Use of Estimates The preparation of consolidated financial statements in accordance with generally accepted accounting principles in the U.S. 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, valuation of warrant liabilities, estimates used to assess its ability to continue as a going concern and stock-based compensation. 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. Cash and Cash Equivalents The Company considers all highly liquid investment instruments with an original maturity when purchased of three months or less to be cash equivalents. Investments qualifying as cash equivalents primarily consist of money market funds and have a carrying amount that approximates fair value. The amount of cash equivalents included in cash and cash equivalents was approximately $6.3 million and $17.2 million at December 31, 2016 and 2015, respectively. At December 31, 2016 and 2015, the Company had approximately $0.1 million and $0.2 million, respectively, of cash and cash equivalents denominated in Australian dollars that is subject to foreign currency gain and loss. At December 31, 2016 and 2015, the Company had approximately $0.2 million and $0.5 million, respectively, of cash and cash equivalents denominated in euros that is subject to foreign currency gain and loss. Property and Equipment Property and equipment, including leasehold improvements, are recorded at cost and are depreciated when placed in service using the straight-line method based on their estimated useful lives as follows: Asset Description Estimated Useful Life Laboratory and manufacturing equipment 5 Computer equipment and software 3 Office furniture and equipment 5 Included in property and equipment are certain costs of software obtained for internal use. Costs incurred during the preliminary project stage are expensed as incurred, while costs incurred during the application development stage are capitalized and amortized over the estimated useful life of the software. The Company also capitalizes costs related to specific upgrades and enhancements when it is probable the expenditures will result in additional functionality. Maintenance and training costs related to software obtained for internal use are expensed as incurred. Leasehold improvements are amortized over the shorter of the estimated useful life of the asset or the remaining lease term. Costs for capital assets not yet placed into service have been capitalized as construction in progress and will be depreciated in accordance with the above guidelines once placed into service. Maintenance and repair costs are expensed as incurred. Revenue Recognition The Company generates all of its revenue from sales of its EndoBarrier to health care providers and third- party distributors who resell the product to health care providers. The Company considers revenue to be realized or realizable and earned when all of the following criteria are met: persuasive evidence of a sales arrangement exists, delivery has occurred or services have been rendered, the price is fixed or determinable, and collectability is reasonably assured. Revenue is recognized upon passage of title and risk of loss to customers, unless a consignment arrangement exists and provided an estimate can be made for sales returns. With respect to these criteria: • The evidence of an arrangement generally consists of a health care provider or distributor purchase order with the necessary approvals and acceptance by the Company. • Transfer of title and risk and rewards of ownership are passed to the health care provider or third-party distributor upon delivery of the products. • The selling prices for all sales are fixed and agreed with the health care provider or third-party distributor. Provisions for discounts and rebates to customers are established as a reduction to revenue in the same period the related sales are recorded. When doubt exists about collectability from specific customers, the Company defers revenue from sales of products to those customers until payment is received. GI Dynamics, Inc. and Subsidiaries 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 considers these transactions to be product returns and bases its estimate for sales returns upon historical trends and records the amount as a reduction to revenue upon the initial sale of the product. In the event the Company is unable to reasonably estimate future returns, it recognizes revenue when the right of return lapses. Prior to the fourth quarter of 2013, the Company did not have sufficient historical experience on which to base an estimate of returns, and therefore recognized revenue when the right of return lapsed. The Company determined this point to be when the product was implanted or otherwise consumed and payment was received from the customer, which indicated that the Company had no further obligations to the customer and that the sale was complete. As a result, starting in the fourth quarter of 2013, the Company began to recognize revenue at the time of delivery net of these return estimates. Prospectively, the Company will continue to evaluate whether it has sufficient data to determine return estimates as it enters new markets. The Company has certain relationships in which title to delivered product passes to a buyer, but the substance of the transaction is that of a consignment arrangement. In these cases, the Company recognizes revenue when the product is implanted or otherwise consumed and payment is received from the customer, which indicates that the Company has no further obligations to the customer and that the sale is complete. For these transactions, revenue recognition is deferred until the sale is complete. At December 31, 2016 and 2015, the Company had deferred revenue of approximately $11,000. In addition, the Company has entered into consignment arrangements in which the Company delivers the product to the customer but retains title to the product until it is implanted or otherwise consumed. In these arrangements, the Company recognizes revenue once it receives proof of third party purchase, usually in the form of a customer purchase order. Shipping and Handling Costs Shipping and handling costs are included in costs of revenue. Research and Development Costs Research and development costs are expensed when incurred. Research and development costs include costs of all basic research activities as well as other research, engineering, and technical effort required to develop a new product or service or make significant improvement to an existing product or manufacturing process. Research and development costs also include pre-approval Patent Costs The Company expenses as incurred all costs, including legal expenses, associated with obtaining patents until the patented technology becomes feasible. All costs incurred after the patented technology is feasible will be capitalized as an intangible asset. As of December 31, 2016, no such costs had been capitalized since inception of the Company. The Company has expensed approximately $0.4 million, $0.5 million and $0.5 million of patent costs within general and administrative expenses in the consolidated statements of operations and comprehensive loss for the years ended December 31, 2016, 2015 and 2014, respectively. Stock-Based Compensation The Company accounts for stock-based compensation in accordance with the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 718, Stock Compensation For awards that vest based on service conditions, the Company uses the straight-line method to allocate compensation expense to reporting periods. The grant date fair value of options granted is calculated using the Black-Scholes option pricing model, which requires the use of subjective assumptions including volatility, expected term and the fair value of the underlying common stock, among others. The Company periodically issues performance-based awards. For these awards, vesting will occur upon the achievement of certain milestones. When achievement of the milestone is deemed probable, the Company expenses the compensation of the respective stock award over the implicit service period. Stock awards to non-employees 505-50, Equity-Based Payments to Non-Employees 505-50”). non-employee non-employee non-employee non- non-employee. non-employee 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. Impairment of Long-Lived Assets The Company regularly reviews the carrying amount of its long-lived assets to determine whether indicators of impairment may exist that warrant adjustments to carrying values or estimated useful lives. If indications of impairment exist, projected future undiscounted cash flows associated with the asset are compared to the carrying amount to determine whether the asset’s value is recoverable. If the carrying value of the asset exceeds such projected undiscounted cash flows, the asset will be written down to its estimated fair value. Comprehensive Loss Comprehensive loss is the change in equity of a company during a period from transactions and other events and circumstances, excluding transactions resulting from investments by owners and distributions to owners. The Company currently does not have any changes in equity from non-owner Loss Contingencies In accordance with ASC 450, Contingencies Income Taxes The Company provides for income taxes under the liability method. The Company records deferred tax assets and liabilities for the expected future tax consequences of temporary differences between the Company’s financial reporting and the tax bases of assets and liabilities measured using the enacted tax rates expected to be in effect in the years in which the differences are expected to reverse. Deferred tax assets are reduced by a valuation allowance to reflect the uncertainty associated with their ultimate realization. The Company accounts for uncertain tax positions recognized in the consolidated financial statements by applying a more-likely-than-not 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. As of December 31, 2016 and 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. Reverse Stock Split In November 2014, the Company’s stockholders approved a one-for-ten paid-in one-tenth paid-in Subsequent Events The Company evaluates events occurring after the date of its consolidated balance sheet for potential recognition or disclosure in its consolidated financial statements. There have been no subsequent events that have occurred through the date the Company issued its consolidated financial statements that require disclosure in or adjustment to its consolidated financial statements. New Accounting Pronouncements From time to time, new accounting pronouncements are issued by the 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 2014-09”), Revenue from Contracts with Customers Revenue Recognition 2014-09 2014-09 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 2014-15”) . In April 2015, the FASB issued ASU No. 2015-05, Intangibles — Goodwill and Other — Internal-Use 2015-05”). 2015-05 2015-05 In July 2015, the FASB issued ASU No. 2015-11, Simplifying the Measurement of Inventory 2015-11, first-in, first-out last-in, first-out In November 2015, the FASB issued ASU 2015-17, Income Taxes — Balance Sheet Reclassification of Deferred Taxes (Topic 740) 2015-17”). 2015-17 2015-17 2015-17 non-current In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) 2016-02. 2016-02 right-of-use 2016-02 In March 2016, the FASB issued ASU No. 2016-09, Compensation — Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting 2016-09. 2016-09 2016-09 2016-09 In August, 2016, the FASB issued ASU No. 2016-15, Classification of Certain Cash Receipts and Cash Payments (a consensus of the Emerging Issues Task Force) 2016-15. 2016-15 Statement of Cash Flows 2016-15 No. 2016-15 In November 2016, the FASB issued ASU No. 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash (a consensus of the FASB Emerging Issue Task Force) 2016-18. 2016-18 beginning-of-period end-of-period 20116-18

Net Loss per Common Share

Net Loss per Common Share	12 Months Ended
	Dec. 31, 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 each of the years ended December 31, 2016, 2015 and 2014, 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 December 31, 2016, 2015 and 2014, as they would be anti-dilutive: Years Ended December 31, 2016 2015 2014 Warrants to purchase common stock 28,532 50,000 50,000 Options to purchase common stock and other stock-based awards 1,152,072 1,041,322 1,410,736 Total 1,180,604 1,091,322 1,460,736

Common Stock Warrants

Common Stock Warrants	12 Months Ended
	Dec. 31, 2016
Common Stock Warrants	4. Common Stock Warrants In connection with the Company’s IPO in September 2011, the Company issued 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 warrants expired on the fifth anniversary of their date of grant. 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 December 31, 2016, no Consultant Warrants had been exercised. The Company accounts for the warrants under ASC 815, Derivatives and Hedging

Fair Value of Financial Instrum

Fair Value of Financial Instruments	12 Months Ended
	Dec. 31, 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 December 31, 2016 and 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 December 31, 2016 Quoted Prices in Significant Other (Level 2) Significant (Level 3) Assets Money market funds (included in cash and cash equivalents) $ 6,344 $ 6,344 $ — $ — Total assets $ 6,344 $ 6,344 $ — $ — Liabilities Warrant liability $ 17 $ — $ — $ 17 Total liabilities $ 17 $ — $ — $ 17 Fair Value Measurements at Reporting Date Using Description December 31, Quoted Prices in Significant Other (Level 2) Significant (Level 3) Assets Money market funds (included in cash and cash equivalents) $ 17,207 $ 17,207 $ — $ — Total assets $ 17,207 $ 17,207 $ — $ — Liabilities Warrant liability $ — $ — $ — $ — Total liabilities $ — $ — $ — $ — The assumptions used in the Black-Scholes option pricing model to determine the fair value of the common stock warrants at December 31, 2016, 2015 and 2014 were as follows: December 31, 2016 2015 2014 Exercise price (A$55.00 at the then current exchange rate) $ 0.64 $ 40.18 $ 45.11 Fair value of common stock $ 0.59 $ 1.06 $ 9.84 Expected volatility 90.5 % 165.6 % 62.2 % Expected term (in years) 4.34 0.7 1.7 Risk-free interest rate 1.78 % 0.5 % 0.5 % 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, 2014 $ 9 Decrease in fair value of warrants upon re-measurement (9 ) Balance at December 31, 2015 $ — Grant of Consulting warrants May 2016 $ 12 Increase in fair value of warrants upon re-measurement 5 Balance at December 31, 2016 $ 17 Cash equivalents, accounts receivable, prepaid expenses and other current assets, accounts payable, accrued expenses and other current liabilities at December 31, 2016 and 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 Account	12 Months Ended
	Dec. 31, 2016
Concentrations of Credit Risk, Accounts Receivable and Related Valuation Account	6. Concentrations of Credit Risk, Accounts Receivable and Related Valuation Account Financial instruments that subject the Company to credit risk primarily consist of cash and cash equivalents and accounts receivable. The Company maintains its cash and cash equivalent balances with high quality financial institutions, and consequently, the Company believes that such funds are subject to minimal credit risk. The Company’s short-term investments potentially subject the Company to concentrations of credit risk. The Company has adopted an investment policy that limits the amounts the Company may invest in any one type of investment and requires all investments held by the Company to hold at least an A rating from a recognized credit rating agency, thereby reducing credit risk concentration. 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 December 31, 2016 one health care provider accounted for approximately 43% of the Company’s accounts receivable and another health care provider accounted for approximately 22% of the Company’s accounts receivable. At December 31, 2015, one health care provider accounted for approximately 15% of the Company’s accounts receivable and 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 December 31, 2016 and 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. The Company recorded write-offs of uncollectible accounts receivable of approximately $48,000 in the year ended December 31, 2016 and approximately $31,000 in 2015 and none in 2014. As of December 31, 2016, the Company believes its allowance for doubtful accounts of approximately $16,000 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. The following table shows the components of the Company’s accounts receivable at December 31, 2016 and 2015 (in thousands): December 31, 2016 2015 Accounts receivable $ 68 $ 121 Less: allowance for doubtful accounts (16 ) (59 ) Less: allowance for sales returns (22 ) (22 ) Total $ 30 $ 40 The following is a roll forward of the Company’s allowance for doubtful accounts (in thousands): Year Ended December 31, 2016 2015 2014 Beginning balance $ 59 $ 41 $ — Net charges to expenses 5 49 41 Utilization of allowances (48 ) (31 ) — Ending balance $ 16 $ 59 $ 41

Inventory

Inventory	12 Months Ended
	Dec. 31, 2016
Inventory	7. Inventory The Company states inventory at the lower of first-in, first-out 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, 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 termination 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 December 31, 2016 and 2015, the Company has a reserve totaling approximately $5.0 million of which approximately $3.3 million was for its inventory of sleeve material. 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. In 2014, the Company determined that its raw material sleeve inventory was in excess of its anticipated commercial demand for future sales. Accordingly, for the year ended December 31, 2014, the Company recorded a provision for excess inventory of approximately $1.6 million to reduce the carrying value of the raw material sleeve inventory. Inventory, net of reserves, at December 31, 2016 and 2015 was as follows (in thousands): December 31, 2016 2015 Finished goods $ 213 $ 391 Work-in-process — 605 Raw materials — 29 Total $ 213 $ 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 December 31, 2016 and 2015, approximately 5% and 2% of the finished goods inventory was at customer locations pursuant to these arrangements.

Property and Equipment

Property and Equipment	12 Months Ended
	Dec. 31, 2016
Property and Equipment	8. Property and Equipment Property and equipment consisted of the following (in thousands): December 31, 2016 2015 Laboratory and manufacturing equipment $ 591 $ 457 Computer equipment and software 1,174 1,118 Office furniture and equipment 183 229 Leasehold improvements 21 848 1,969 2,652 Less accumulated depreciation and amortization (1,820 ) (2,251 ) Total $ 149 $ 401 As part of the Company’s restructuring in 2015 and then in 2016 in connection with the abandonment of its Company headquarters in Lexington, Massachusetts, the Company recognized a charge for impaired fixed assets as follows (in thousands): Years Ended December 31, 2016 2015 2014 Cost of revenue $ 24 $ 265 $ — Research and development 79 100 — Sales and marketing — 5 — General and administrative 42 19 — $ 145 $ 389 $ — In January 2015, the Company entered into a capital lease for certain office equipment. The company disposed of the certain office equipment during the 4 th Depreciation and amortization expense of property and equipment, including equipment recorded under capital leases, totaled approximately $0.2 million, $0.5 million and $0.7 million for the years ended December 31, 2016, 2015, and 2014, respectively.

Accrued Expenses

Accrued Expenses	12 Months Ended
	Dec. 31, 2016
Accrued Expenses	9. Accrued Expenses Accrued expenses consisted of the following (in thousands): December 31, 2016 2015 Clinical trials $ 16 $ 1,809 Payroll and related liabilities 430 501 Professional fees 617 454 Deferred rent, current portion — 168 Other 97 136 Total $ 1,160 $ 3,068 In both 2016 and 2015, the Company recorded approximately $0.6 million of separation related expenses of which approximately none and $0.1 million is included in payroll and related liabilities at December 31, 2016 and 2015, respectively.

Short-Term Notes Payable

Short-Term Notes Payable	12 Months Ended
	Dec. 31, 2016
Short-Term Notes Payable	10. Short-Term Notes Payable GI Dynamics, Inc. entered into a short-term loan agreement with First Insurance Funding Corp to borrow $306,380 to be used to purchase insurance. The agreement calls for ten monthly payments of $30,638 which includes principal and interest. The annual interest rate on the borrowing is 1.95%. The outstanding balance at December 31, 2016 was $214,466 and has been included in other current liabilities in the accompanying balance sheet.

Commitments and Contingencies

Commitments and Contingencies	12 Months Ended
	Dec. 31, 2016
Commitments and Contingencies	11. Commitments and Contingencies Lease Commitments In June 2016, the Company entered into a non-cancelable Future minimum lease payments under all non-cancelable Year Ending December 31, 2017 $ 143 2018 48 2019 — Total future minimum lease payments $ 191 Rent expense on non-cancelable License Agreement In 2003, the Company entered into a license agreement (“License Agreement”) for certain intellectual property. The License Agreement required the Company to pay $75,000 at execution, make payments of $12,500 in 2004, and $25,000 each year thereafter, until the date of first commercial sale of the product, as defined in the License Agreement. In 2011, the Company began commercial sales of the product as defined in the License Agreement and as a result ceased making the yearly payments. The royalty obligation begins with U.S. commercial sales of products as defined in the License Agreement, if any. The royalty percentage may vary on products covered by the License Agreement, but in any case, the royalties are not considered significant. The Company will cease paying royalties, if any, at the time the patent covered by the License Agreement expires in 2017.

Stockholders' Equity

Stockholders' Equity	12 Months Ended
	Dec. 31, 2016
Stockholders' Equity	12. Stockholders’ Equity On April 9, 2015, the Company amended its certificate of incorporation to reflect the one-for-ten The Company has raised net proceeds of approximately $232.6 million through sales of its equity from inception. Common Stock The Company authorized Class B common stock in order to meet the Listing Rules of the ASX so far as they apply to escrowed securities. In the event that holders of common stock, who were subject to ASX-imposed In December 2016, GI Dynamics raised approximately $1.0 million, net of expenses, in an offering of 1,397,300 shares of common stock (69,865,000 CDIs) to sophisticated and professional investors in Australia and certain other jurisdictions.

Stock Plans

Stock Plans	12 Months Ended
	Dec. 31, 2016
Stock Plans	13. Stock Plans The Company has two stock-based compensation plans. The Board of Directors adopted the 2003 Omnibus Stock Plan (the “2003 Plan”), which provides for the grant of qualified incentive stock options and nonqualified stock options or other awards to the Company’s employees, officers, directors, advisors, and outside consultants to purchase up to an aggregate of 922,086 shares of the Company’s common stock. In August 2011, the Board of Directors adopted the 2011 Employee, Director and Consultant Equity Incentive Plan (the “2011 Plan”, together with the 2003 Plan, the “Plans”) as the successor to the 2003 Plan. Under the 2011 Plan, the Company may grant incentive stock options, nonqualified stock options, restricted and unrestricted stock awards and other stock-based awards. The Company had initially reserved 450,000 shares of its common stock for issue under the 2011 Plan. Awards that are returned to the Company’s 2003 Plan as a result of their forfeiture, expiration or cancellation without delivery of common stock shares or that result in the forfeiture of shares back to the Company on or after August 1, 2011, the date the 2011 Plan became effective, are automatically made available for issuance under the 2011 Plan. At August 1, 2011, 80,235 shares available for grant under the 2003 Plan were transferred to the 2011 Plan. At December 31, 2016, 1,060,920 shares were available for grant under the 2011 Plan. In addition, the 2011 Plan 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, during 2016, 380,222 shares were added to the 2011 Plan. Stock-Based Compensation Stock-based compensation is reflected in the consolidated statements of operations and comprehensive loss as follows for the years ended December 31, 2016, 2015 and 2014 (in thousands): Years Ended December 31, 2016 2015 2014 Cost of revenue $ 34 $ 89 $ 126 Research and development 56 456 1,179 Sales and marketing 159 425 1,367 General and administrative 418 2,191 1,998 $ 667 $ 3,161 $ 4,670 The stock options granted under the Plans generally vest over a four-year period and expire ten years from the date of grant. From time to time, the Company grants stock options to purchase common stock subject to performance-based milestones. The vesting of these stock options will occur upon the achievement of certain milestones. When achievement of the milestone is deemed probable, the Company expenses the compensation of the respective stock option over the implicit service period. At December 31, 2014, the Company had options for the purchase of 20,000 shares of common stock subject to performance-based milestone vesting. During the years ended December 31, 2016, 2015 and 2014, the Company did not recognize any expense associated with options subject to performance-based milestones as the vesting of the underlying awards was not deemed probable. At December 31, 2015, there were no options subject to performance-based milestone vesting outstanding. During the year ended December 31, 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 in 2015. The Company accounted for the modification of these stock awards in accordance with the provisions of ASC 718. In calculating stock-based compensation costs, the Company estimates 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 years ended December 31, 2016, 2015 and 2014: Years Ended December 31, 2016 2015 2014 Expected volatility 75.8 % 56.8 % 61.6 % Expected term (in years) 6.05 6.04 6.05 Risk-free interest rate 2.1 % 1.6 % 2.1 % Expected dividend yield — % — % — % Expected Volatility Volatility measures the amount that a stock price has fluctuated or is expected to fluctuate during a period. As the Company was not publicly traded prior to September 2011 and therefore had no trading history, stock price volatility was estimated based on an analysis of historical and implied volatility of comparable public companies. Expected Term The Company has limited historical information to develop reasonable expectations about future exercise patterns and post-vesting employment termination behavior for its stock option grants. As a result, for stock option grants made during the years ended December 31, 2016, 2015 and 2014, the expected term was estimated using the “simplified method.” The simplified method is based on the average of the contractual term of the option and the weighted-average vesting period of the option. For options granted to non-employees, non-employee Risk-Free Interest Rate The risk-free interest rate used for each grant is based on a zero-coupon Expected Dividend Yield The Company has not paid and does not anticipate paying cash dividends on its shares of common stock in the foreseeable future; therefore, the expected dividend yield is assumed to be zero. Forfeitures Forfeitures are estimated at the time of grant and revised, if necessary, in subsequent periods if actual forfeitures differ from the Company’s estimates. Subsequent changes in estimated forfeitures are recognized through a cumulative adjustment in the period of change and will also impact the amount of stock-based compensation expense in future periods. The Company uses historical data to estimate forfeiture rates. The Company’s estimated forfeiture rates were 15.0%, 15.0% and 5.0% as of December 31, 2016, 2015 and 2014, respectively. Stock Options The following table summarizes share-based activity under the Company’s stock option plans: Shares of Common Attributable to Options Weighted- Price Weighted- Aggregate (in years) (in thousands) Outstanding at December 31, 2015 779,028 $ 23.92 7.64 — Granted 575,106 $ 1.00 Exercised — $ — Cancelled (605,563 ) $ 20.99 Outstanding at December 31, 2016 748,571 $ 8.67 8.38 $ — Vested or expected to vest at December 31, 2016 660,760 $ 9.63 8.25 $ — Exercisable at December 31, 2016 163,156 $ 34.39 4.88 $ — As of December 31, 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 2.67 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 years ended December 31, 2016, 2015 and 2014 was $1.00, $2.91 and $15.22, respectively. The total intrinsic value of options exercised during the years ended December 31, 2016, 2015 and 2014 was approximately none, $10,000 and $4.4 million, 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 years ended December 31, 2016, 2015 and 2014 was approximately none, $1,500 and $0.6 million respectively. 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 December 31, 2016 and 2015, there were none 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 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 none and $4,000, respectively, at December 31, 2016 and 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. 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. During the years ended December 31, 2016 and 2015, the Company awarded a total of 392,659 and 143,506 RSUs to employees and directors of the Company, respectively. The following table summarizes information related to the RSUs and activity during the year ended December 31, 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 December 31, 2016 403,501 9.11 $ 365 The aggregate intrinsic value at December 31, 2016 and 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 years ended December 31, 2016 and 2015 was $0.75 and $5.39, respectively. At December 31, 2016, 403,501 of the RSUs outstanding are subject to performance-based vesting criteria. 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 year ended December 31, 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 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 years ended December 31, 2016 and 2015, the Company recognized stock-based compensation related to RSUs having service-based vesting of approximately $(0.1) million and $0.5 million, respectively. As of December 31, 2016, there was approximately $0.1 million of unrecognized stock-based compensation expense, net of estimated forfeitures, related to non-vested Non-employee The Company accounts for non-employee 505-50. non-employees non- non-employees. non-employees. During the years ended December 31, 2014 and 2013, the Company modified the terms of stock awards previously granted to certain employees upon their change in status from employee to non-employee. The Company has recorded non-employee 505-50

Segment Reporting

Segment Reporting	12 Months Ended
	Dec. 31, 2016
Segment Reporting	14. 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 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 December 31, 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 years ended December 31, 2016, 2015 and 2014 are listed in the table below (in thousands). Years Ended December 31, 2016 2015 2014 Europe $ 309 $ 1,007 $ 1,687 Middle East 154 146 247 South America 0 41 466 Asia Pacific 82 122 428 Total $ 545 $ 1,316 $ 2,828 Germany is a significant component of revenue in Europe for the year ended December 31, 2016. Germany and the United Kingdom comprised a significant component of revenue in Europe for the year ended December 31, 2015. Germany, Chile and Australia comprised a significant component of revenue in their respective regions for the year ended December 31, 2014. Major Customers For the year ended December 31, 2016, one distributor accounted for approximately 24% of the Company’s revenue. For the year ended December 31, 2015, one distributor accounted for approximately 15% of the Company’s revenue. For the year ended December 31, 2014, one distributor accounted for approximately 16% of the Company’s revenue. No other customer accounted for greater than 10% of the Company’s revenue during the years ended December 31, 2016, 2015 and 2014.

Retirement Plans

Retirement Plans	12 Months Ended
	Dec. 31, 2016
Retirement Plans	15. Retirement Plans The Company has a 401(k) retirement and savings plan (“401(k) Plan”) covering all qualified U.S. employees. The 401(k) Plan is a defined contribution plan and allows each participant to contribute up to 100% of the participant’s base wages up to an amount not to exceed an annual statutory maximum. The Company has made discretionary contributions to the 401(k) Plan and recorded expenses of approximately $0.1 million, $0.2 million and $0.3 million for the years ended December 31, 2016, 2015 and 2014, respectively. The Company maintains a defined contribution plan for certain international employees. The Company contributes 100% of the cost of the defined contribution. The Company recorded expenses of approximately $7,000, $21,000 and $30,000 for the years ended December 31, 2016, 2015 and 2014, respectively, under this plan.

Income Taxes

Income Taxes	12 Months Ended
	Dec. 31, 2016
Income Taxes	16. Income Taxes Loss before provision for income taxes consisted of the following (in thousands): Years Ended December 31, 2016 2015 2014 Domestic $ (13,124 ) $ (35,190 ) $ (48,298 ) Foreign 41 113 163 Total $ (13,083 ) $ (35,077 ) $ (48,135 ) The provision for income taxes in the accompanying consolidated statements of operations and comprehensive loss consisted of the following (in thousands): Years Ended December 31, 2016 2015 2014 Current Provision: Federal $ — $ — $ — State 17 2 3 Foreign 16 59 90 Total 33 61 93 Deferred Provision: Federal — — — State — — — Foreign — 23 (23 ) Total — 23 (23 ) Total provision $ 33 $ 84 $ 70 A reconciliation of income taxes from operations computed using the U.S. federal statutory rate of 34% to that reflected in operations follows (in thousands): Years Ended December 31, 2016 2015 2014 Income tax benefit using U.S. federal statutory rate $ (4,449 ) $ (11,926 ) $ (16,366 ) Permanent differences 16 23 (60 ) State income taxes, net of federal benefit (661 ) (383 ) (2,254 ) Stock compensation 1,218 556 900 Tax credits (42 ) (459 ) (626 ) Foreign tax rate differential 1 (2 ) (11 ) Change in the valuation allowance 1,303 12,234 18,500 Unrealized gain 2,673 — — Other (26 ) 41 (13 ) Total $ 33 $ 84 $ 70 Components of the Company’s deferred tax assets and liabilities are as follows (in thousands): December 31, 2016 2015 Deferred tax assets: Net operating loss carryforwards $ 79,648 $ 73,260 Research and development credit carryforwards 3,713 3,655 Capitalized research and development costs 1,366 2,196 Capitalized start-up 4,594 5,105 Depreciation and other 3,081 6,883 Total deferred tax assets 92,402 91,099 Valuation allowance (92,402 ) (91,099 ) Net deferred tax asset $ — $ — In accordance with ASU No. 2015-17, non-current Management of the Company has evaluated the positive and negative evidence bearing upon the realizability of the Company’s deferred tax assets and determined that it is more likely than not that the Company will not recognize the benefits of the deferred tax assets related to the U.S. As a result, a valuation allowance of approximately $92.4 million and $91.1 million was established at December 31, 2016 and 2015, respectively. The valuation allowance increased by approximately $1.3 million during the year ended December 31, 2016, primarily due to the increase in the Company’s net operating loss carryforwards. At December 31, 2016, the Company had federal and state net operating loss carryforwards (excluding ASC 718 additional paid-in In addition, at December 31, 2016, the Company also has federal and state research and development tax credit carryforwards (excluding ASC 740, Income Taxes Utilization of net operating loss carryforwards and research and development credit carryforwards may be subject to a substantial annual limitation due to ownership change limitations that have occurred previously or that could occur in the future in accordance with Section 382 of the Internal Revenue Code of 1986 (“IRC Section 382”) and with Section 383 of the Internal Revenue Code of 1986, as well as similar state provisions. These ownership changes may limit the amount of net operating loss carryforwards and research and development credit carryforwards that can be utilized annually to offset future taxable income and taxes, respectively. In general, an ownership change, as defined by IRC Section 382, results from transactions increasing the ownership of certain stockholders or public groups in the stock of a corporation by more than 50 percentage points over a three-year period. The Company has completed several financings since its inception, which may have resulted in a change in control as defined by IRC Section 382 or could result in a change in control in the future. As of December 31, 2016, the Company has not, as yet, conducted an IRC Section 382 study, which could impact its ability to utilize net operating loss and tax credit carryforwards annually in the future to offset the Company’s taxable income, if any. The Company applies ASC 740-10, The following is a roll forward of the Company’s unrecognized tax benefits (in thousands): December 31, 2016 2015 Unrecognized tax benefit – as of the beginning of the year $ 1,426 $ 1,252 Gross increases – tax positions of the prior periods — — Gross increases – current period tax positions 23 174 Unrecognized tax benefits – as of the end of the year $ 1,449 $ 1,426 The Company will recognize interest and penalties related to uncertain tax positions, should they be assessed, in income tax expense. As of December 31, 2016 and 2015, the Company had no accrued interest or penalties related to uncertain tax positions, and no amounts have been recognized in the Company’s consolidated statements of comprehensive loss. The statute of limitations for assessment by the Internal Revenue Service (“IRS”) and state tax authorities is open for tax years ended December 31, 2012 through December 31, 2016, although carryforward attributes that were generated prior to tax year 2012 may still be adjusted upon examination by the IRS or state tax authorities if they either have been or will be used in a future period. The statute of limitations for assessment by foreign tax authorities is open for tax years ended December 31, 2012 through December 31, 2016. There are currently no federal or state audits in progress. The Company has not, as yet, completed a study of its research and development credit carryforwards. Once completed, this study may result in an adjustment to the Company’s research and development credit carryforwards. A full valuation allowance has been provided against the Company’s research and development credits, and if an adjustment is required at the time the study is completed, this adjustment would be offset by an adjustment to the deferred tax asset established for the research and development credit carryforward and the valuation allowance.

Selected Quarterly Financial In

Selected Quarterly Financial Information - (Unaudited)	12 Months Ended
	Dec. 31, 2016
Selected Quarterly Financial Information - (Unaudited)	17. Selected Quarterly Financial Information — (Unaudited) First Quarter Second Third Fourth Total Year 2016 Revenue $ 209 $ 132 $ 136 $ 68 $ 545 Gross loss* (144 ) (505 ) (2 ) (95 ) (746 ) Loss from operations (3,465 ) (3,855 ) (2,764 ) (3,034 ) (13,118 ) Net loss (3,438 ) (3,890 ) (2,754 ) (3,034 ) (13,116 ) Basic and diluted net loss per common share $ (0.36 ) $ (0.41 ) $ (0.29 ) $ (0.31 ) $ (1.37 ) 2015 Revenue $ 616 $ 310 $ 175 $ 215 $ 1,316 Gross profit (loss)* (270 ) (1,702 ) (743 ) (1,692 ) (4,407 ) Loss from operations (9,870 ) (10,252 ) (7,905 ) (6,479 ) (34,506 ) Net loss (10,349 ) (10,234 ) (8,089 ) (6,489 ) (35,161 ) Basic and diluted net loss per common share $ (1.09 ) $ (1.08 ) $ (0.85 ) $ (0.68 ) $ (3.71 ) * In the second quarter of 2016 the Company recorded a reduction of cost of revenue of approximately $0.2 million and in the fourth quarter of 2016 the Company recorded a change of approximately $0.1 million to cost of revenue for excess, expired and obsolete inventory. In the second and fourth quarter of 2015, the Company recorded a charge to cost of revenue of approximately $1.7 million and $1.5 million, respectively, for excess, expired and obsolete inventory.

Subsequent Events

Subsequent Events	12 Months Ended
	Dec. 31, 2016
Subsequent Events	18. Subsequent Events In January 2017, the Company completed the sale of 249,632 shares (12,481,600 CDI’s) to eligible investors under a Security Purchase Plan for approximately $0.83 per share resulting in net proceeds after expenses of approximately $0.2 million.

Summary of Significant Accoun26

Summary of Significant Accounting Policies and Basis of Presentation (Policies)	12 Months Ended
	Dec. 31, 2016
Principles of Consolidation	Principles of Consolidation The accompanying consolidated financial statements include the accounts of GI Dynamics, Inc. and its wholly owned subsidiaries. All intercompany transactions and balances are eliminated in consolidation. The functional currency of GID Europe Holding B.V., GID Europe B.V., GID Germany GmbH and GI Dynamics Australia Pty Ltd is the U.S. dollar. Consolidated balance sheet accounts of the Company’s subsidiaries are translated into U.S. dollars using the exchange rate in effect at the consolidated balance sheet date while expenses are translated using the average exchange rate in effect during the period. Gains and losses arising from translation of the wholly owned subsidiaries’ financial statements are included in the determination of net loss.
Use of Estimates	Use of Estimates The preparation of consolidated financial statements in accordance with generally accepted accounting principles in the U.S. 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, valuation of warrant liabilities, estimates used to assess its ability to continue as a going concern and stock-based compensation. 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.
Cash and Cash Equivalents	Cash and Cash Equivalents The Company considers all highly liquid investment instruments with an original maturity when purchased of three months or less to be cash equivalents. Investments qualifying as cash equivalents primarily consist of money market funds and have a carrying amount that approximates fair value. The amount of cash equivalents included in cash and cash equivalents was approximately $6.3 million and $17.2 million at December 31, 2016 and 2015, respectively. At December 31, 2016 and 2015, the Company had approximately $0.1 million and $0.2 million, respectively, of cash and cash equivalents denominated in Australian dollars that is subject to foreign currency gain and loss. At December 31, 2016 and 2015, the Company had approximately $0.2 million and $0.5 million, respectively, of cash and cash equivalents denominated in euros that is subject to foreign currency gain and loss.
Property and Equipment	Property and Equipment Property and equipment, including leasehold improvements, are recorded at cost and are depreciated when placed in service using the straight-line method based on their estimated useful lives as follows: Asset Description Estimated Useful Life Laboratory and manufacturing equipment 5 Computer equipment and software 3 Office furniture and equipment 5 Included in property and equipment are certain costs of software obtained for internal use. Costs incurred during the preliminary project stage are expensed as incurred, while costs incurred during the application development stage are capitalized and amortized over the estimated useful life of the software. The Company also capitalizes costs related to specific upgrades and enhancements when it is probable the expenditures will result in additional functionality. Maintenance and training costs related to software obtained for internal use are expensed as incurred. Leasehold improvements are amortized over the shorter of the estimated useful life of the asset or the remaining lease term. Costs for capital assets not yet placed into service have been capitalized as construction in progress and will be depreciated in accordance with the above guidelines once placed into service. Maintenance and repair costs are expensed as incurred.
Revenue Recognition	Revenue Recognition The Company generates all of its revenue from sales of its EndoBarrier to health care providers and third- party distributors who resell the product to health care providers. The Company considers revenue to be realized or realizable and earned when all of the following criteria are met: persuasive evidence of a sales arrangement exists, delivery has occurred or services have been rendered, the price is fixed or determinable, and collectability is reasonably assured. Revenue is recognized upon passage of title and risk of loss to customers, unless a consignment arrangement exists and provided an estimate can be made for sales returns. With respect to these criteria: • The evidence of an arrangement generally consists of a health care provider or distributor purchase order with the necessary approvals and acceptance by the Company. • Transfer of title and risk and rewards of ownership are passed to the health care provider or third-party distributor upon delivery of the products. • The selling prices for all sales are fixed and agreed with the health care provider or third-party distributor. Provisions for discounts and rebates to customers are established as a reduction to revenue in the same period the related sales are recorded. When doubt exists about collectability from specific customers, the Company defers revenue from sales of products to those customers until payment is received. GI Dynamics, Inc. and Subsidiaries 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 considers these transactions to be product returns and bases its estimate for sales returns upon historical trends and records the amount as a reduction to revenue upon the initial sale of the product. In the event the Company is unable to reasonably estimate future returns, it recognizes revenue when the right of return lapses. Prior to the fourth quarter of 2013, the Company did not have sufficient historical experience on which to base an estimate of returns, and therefore recognized revenue when the right of return lapsed. The Company determined this point to be when the product was implanted or otherwise consumed and payment was received from the customer, which indicated that the Company had no further obligations to the customer and that the sale was complete. As a result, starting in the fourth quarter of 2013, the Company began to recognize revenue at the time of delivery net of these return estimates. Prospectively, the Company will continue to evaluate whether it has sufficient data to determine return estimates as it enters new markets. The Company has certain relationships in which title to delivered product passes to a buyer, but the substance of the transaction is that of a consignment arrangement. In these cases, the Company recognizes revenue when the product is implanted or otherwise consumed and payment is received from the customer, which indicates that the Company has no further obligations to the customer and that the sale is complete. For these transactions, revenue recognition is deferred until the sale is complete. At December 31, 2016 and 2015, the Company had deferred revenue of approximately $11,000. In addition, the Company has entered into consignment arrangements in which the Company delivers the product to the customer but retains title to the product until it is implanted or otherwise consumed. In these arrangements, the Company recognizes revenue once it receives proof of third party purchase, usually in the form of a customer purchase order.
Shipping and Handling Costs	Shipping and Handling Costs Shipping and handling costs are included in costs of revenue.
Research and Development Costs	Research and Development Costs Research and development costs are expensed when incurred. Research and development costs include costs of all basic research activities as well as other research, engineering, and technical effort required to develop a new product or service or make significant improvement to an existing product or manufacturing process. Research and development costs also include pre-approval
Patent Costs	Patent Costs The Company expenses as incurred all costs, including legal expenses, associated with obtaining patents until the patented technology becomes feasible. All costs incurred after the patented technology is feasible will be capitalized as an intangible asset. As of December 31, 2016, no such costs had been capitalized since inception of the Company. The Company has expensed approximately $0.4 million, $0.5 million and $0.5 million of patent costs within general and administrative expenses in the consolidated statements of operations and comprehensive loss for the years ended December 31, 2016, 2015 and 2014, respectively.
Stock-Based Compensation	Stock-Based Compensation The Company accounts for stock-based compensation in accordance with the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 718, Stock Compensation For awards that vest based on service conditions, the Company uses the straight-line method to allocate compensation expense to reporting periods. The grant date fair value of options granted is calculated using the Black-Scholes option pricing model, which requires the use of subjective assumptions including volatility, expected term and the fair value of the underlying common stock, among others. The Company periodically issues performance-based awards. For these awards, vesting will occur upon the achievement of certain milestones. When achievement of the milestone is deemed probable, the Company expenses the compensation of the respective stock award over the implicit service period. Stock awards to non-employees 505-50, Equity-Based Payments to Non-Employees 505-50”). non-employee non-employee non-employee non- non-employee. non-employee 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.
Impairment of Long-Lived Assets	Impairment of Long-Lived Assets The Company regularly reviews the carrying amount of its long-lived assets to determine whether indicators of impairment may exist that warrant adjustments to carrying values or estimated useful lives. If indications of impairment exist, projected future undiscounted cash flows associated with the asset are compared to the carrying amount to determine whether the asset’s value is recoverable. If the carrying value of the asset exceeds such projected undiscounted cash flows, the asset will be written down to its estimated fair value.
Comprehensive Loss	Comprehensive Loss Comprehensive loss is the change in equity of a company during a period from transactions and other events and circumstances, excluding transactions resulting from investments by owners and distributions to owners. The Company currently does not have any changes in equity from non-owner
Loss Contingencies	Loss Contingencies In accordance with ASC 450, Contingencies
Income Taxes	Income Taxes The Company provides for income taxes under the liability method. The Company records deferred tax assets and liabilities for the expected future tax consequences of temporary differences between the Company’s financial reporting and the tax bases of assets and liabilities measured using the enacted tax rates expected to be in effect in the years in which the differences are expected to reverse. Deferred tax assets are reduced by a valuation allowance to reflect the uncertainty associated with their ultimate realization. The Company accounts for uncertain tax positions recognized in the consolidated financial statements by applying a more-likely-than-not
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. As of December 31, 2016 and 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.
Reverse Stock Split	Reverse Stock Split In November 2014, the Company’s stockholders approved a one-for-ten paid-in one-tenth paid-in
Subsequent Events	Subsequent Events The Company evaluates events occurring after the date of its consolidated balance sheet for potential recognition or disclosure in its consolidated financial statements. There have been no subsequent events that have occurred through the date the Company issued its consolidated financial statements that require disclosure in or adjustment to its consolidated financial statements.
New Accounting Pronouncements	New Accounting Pronouncements From time to time, new accounting pronouncements are issued by the 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 2014-09”), Revenue from Contracts with Customers Revenue Recognition 2014-09 2014-09 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 2014-15”) . In April 2015, the FASB issued ASU No. 2015-05, Intangibles — Goodwill and Other — Internal-Use 2015-05”). 2015-05 2015-05 In July 2015, the FASB issued ASU No. 2015-11, Simplifying the Measurement of Inventory 2015-11, first-in, first-out last-in, first-out In November 2015, the FASB issued ASU 2015-17, Income Taxes — Balance Sheet Reclassification of Deferred Taxes (Topic 740) 2015-17”). 2015-17 2015-17 2015-17 non-current In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) 2016-02. 2016-02 right-of-use 2016-02 In March 2016, the FASB issued ASU No. 2016-09, Compensation — Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting 2016-09. 2016-09 2016-09 2016-09 In August, 2016, the FASB issued ASU No. 2016-15, Classification of Certain Cash Receipts and Cash Payments (a consensus of the Emerging Issues Task Force) 2016-15. 2016-15 Statement of Cash Flows 2016-15 No. 2016-15 In November 2016, the FASB issued ASU No. 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash (a consensus of the FASB Emerging Issue Task Force) 2016-18. 2016-18 beginning-of-period end-of-period 20116-18

Summary of Significant Accoun27

Summary of Significant Accounting Policies and Basis of Presentation (Tables)	12 Months Ended
	Dec. 31, 2016
Property and Equipment	Property and equipment, including leasehold improvements, are recorded at cost and are depreciated when placed in service using the straight-line method based on their estimated useful lives as follows: Asset Description Estimated Useful Life Laboratory and manufacturing equipment 5 Computer equipment and software 3 Office furniture and equipment 5

Net Loss per Common Share (Tabl

Net Loss per Common Share (Tables)	12 Months Ended
	Dec. 31, 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 December 31, 2016, 2015 and 2014, as they would be anti-dilutive: Years Ended December 31, 2016 2015 2014 Warrants to purchase common stock 28,532 50,000 50,000 Options to purchase common stock and other stock-based awards 1,152,072 1,041,322 1,410,736 Total 1,180,604 1,091,322 1,460,736

Fair Value of Financial Instr29

Fair Value of Financial Instruments (Tables)	12 Months Ended
	Dec. 31, 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 December 31, 2016 Quoted Prices in Significant Other (Level 2) Significant (Level 3) Assets Money market funds (included in cash and cash equivalents) $ 6,344 $ 6,344 $ — $ — Total assets $ 6,344 $ 6,344 $ — $ — Liabilities Warrant liability $ 17 $ — $ — $ 17 Total liabilities $ 17 $ — $ — $ 17 Fair Value Measurements at Reporting Date Using Description December 31, Quoted Prices in Significant Other (Level 2) Significant (Level 3) Assets Money market funds (included in cash and cash equivalents) $ 17,207 $ 17,207 $ — $ — Total assets $ 17,207 $ 17,207 $ — $ — Liabilities Warrant liability $ — $ — $ — $ — Total liabilities $ — $ — $ — $ —
Assumptions Used in the Black-Scholes Option Pricing Model to Determine the Fair Value of the Common Stock Warrants	The assumptions used in the Black-Scholes option pricing model to determine the fair value of the common stock warrants at December 31, 2016, 2015 and 2014 were as follows: December 31, 2016 2015 2014 Exercise price (A$55.00 at the then current exchange rate) $ 0.64 $ 40.18 $ 45.11 Fair value of common stock $ 0.59 $ 1.06 $ 9.84 Expected volatility 90.5 % 165.6 % 62.2 % Expected term (in years) 4.34 0.7 1.7 Risk-free interest rate 1.78 % 0.5 % 0.5 % Expected dividend yield — % — % — %
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, 2014 $ 9 Decrease in fair value of warrants upon re-measurement (9 ) Balance at December 31, 2015 $ — Grant of Consulting warrants May 2016 $ 12 Increase in fair value of warrants upon re-measurement 5 Balance at December 31, 2016 $ 17

Concentrations of Credit Risk30

Concentrations of Credit Risk, Accounts Receivable and Related Valuation Account (Tables)	12 Months Ended
	Dec. 31, 2016
Components of Company's Accounts Receivable	The following table shows the components of the Company’s accounts receivable at December 31, 2016 and 2015 (in thousands): December 31, 2016 2015 Accounts receivable $ 68 $ 121 Less: allowance for doubtful accounts (16 ) (59 ) Less: allowance for sales returns (22 ) (22 ) Total $ 30 $ 40
Roll Forward of Allowance for Doubtful Accounts	The following is a roll forward of the Company’s allowance for doubtful accounts (in thousands): Year Ended December 31, 2016 2015 2014 Beginning balance $ 59 $ 41 $ — Net charges to expenses 5 49 41 Utilization of allowances (48 ) (31 ) — Ending balance $ 16 $ 59 $ 41

Inventory (Tables)

Inventory (Tables)	12 Months Ended
	Dec. 31, 2016
Inventory, Net of Reserves	Inventory, net of reserves, at December 31, 2016 and 2015 was as follows (in thousands): December 31, 2016 2015 Finished goods $ 213 $ 391 Work-in-process — 605 Raw materials — 29 Total $ 213 $ 1,025

Property and Equipment (Tables)

Property and Equipment (Tables)	12 Months Ended
	Dec. 31, 2016
Property and Equipment	Property and equipment consisted of the following (in thousands): December 31, 2016 2015 Laboratory and manufacturing equipment $ 591 $ 457 Computer equipment and software 1,174 1,118 Office furniture and equipment 183 229 Leasehold improvements 21 848 1,969 2,652 Less accumulated depreciation and amortization (1,820 ) (2,251 ) Total $ 149 $ 401
Recognized Charge for Impaired Fixed Assets	As part of the Company’s restructuring in 2015 and then in 2016 in connection with the abandonment of its Company headquarters in Lexington, Massachusetts, the Company recognized a charge for impaired fixed assets as follows (in thousands): Years Ended December 31, 2016 2015 2014 Cost of revenue $ 24 $ 265 $ — Research and development 79 100 — Sales and marketing — 5 — General and administrative 42 19 — $ 145 $ 389 $ —

Accrued Expenses (Tables)

Accrued Expenses (Tables)	12 Months Ended
	Dec. 31, 2016
Accrued Expenses	Accrued expenses consisted of the following (in thousands): December 31, 2016 2015 Clinical trials $ 16 $ 1,809 Payroll and related liabilities 430 501 Professional fees 617 454 Deferred rent, current portion — 168 Other 97 136 Total $ 1,160 $ 3,068

Commitments and Contingencies (

Commitments and Contingencies (Tables)	12 Months Ended
	Dec. 31, 2016
Future Minimum Lease Payments Under All Non-cancelable Lease Arrangements	Future minimum lease payments under all non-cancelable Year Ending December 31, 2017 $ 143 2018 48 2019 — Total future minimum lease payments $ 191

Stock Plans (Tables)

Stock Plans (Tables)	12 Months Ended
	Dec. 31, 2016
Stock-Based Compensation	Stock-based compensation is reflected in the consolidated statements of operations and comprehensive loss as follows for the years ended December 31, 2016, 2015 and 2014 (in thousands): Years Ended December 31, 2016 2015 2014 Cost of revenue $ 34 $ 89 $ 126 Research and development 56 456 1,179 Sales and marketing 159 425 1,367 General and administrative 418 2,191 1,998 $ 667 $ 3,161 $ 4,670
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 years ended December 31, 2016, 2015 and 2014: Years Ended December 31, 2016 2015 2014 Expected volatility 75.8 % 56.8 % 61.6 % Expected term (in years) 6.05 6.04 6.05 Risk-free interest rate 2.1 % 1.6 % 2.1 % Expected dividend yield — % — % — %
Share-Based Activity	The following table summarizes share-based activity under the Company’s stock option plans: Shares of Common Attributable to Options Weighted- Price Weighted- Aggregate (in years) (in thousands) Outstanding at December 31, 2015 779,028 $ 23.92 7.64 — Granted 575,106 $ 1.00 Exercised — $ — Cancelled (605,563 ) $ 20.99 Outstanding at December 31, 2016 748,571 $ 8.67 8.38 $ — Vested or expected to vest at December 31, 2016 660,760 $ 9.63 8.25 $ — Exercisable at December 31, 2016 163,156 $ 34.39 4.88 $ —
Restricted Stock Units and Activity	The following table summarizes information related to the RSUs and activity during the year ended December 31, 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 December 31, 2016 403,501 9.11 $ 365

Segment Reporting (Tables)

Segment Reporting (Tables)	12 Months Ended
	Dec. 31, 2016
Product Sales by Geographic Location	Product sales by geographic location for the years ended December 31, 2016, 2015 and 2014 are listed in the table below (in thousands). Years Ended December 31, 2016 2015 2014 Europe $ 309 $ 1,007 $ 1,687 Middle East 154 146 247 South America 0 41 466 Asia Pacific 82 122 428 Total $ 545 $ 1,316 $ 2,828

Income Taxes (Tables)

Income Taxes (Tables)	12 Months Ended
	Dec. 31, 2016
Loss Before Provision for Income Taxes	Loss before provision for income taxes consisted of the following (in thousands): Years Ended December 31, 2016 2015 2014 Domestic $ (13,124 ) $ (35,190 ) $ (48,298 ) Foreign 41 113 163 Total $ (13,083 ) $ (35,077 ) $ (48,135 )
Summary of Provision for Income Taxes in Accompanying Consolidated Statements of Operations and Comprehensive Loss	The provision for income taxes in the accompanying consolidated statements of operations and comprehensive loss consisted of the following (in thousands): Years Ended December 31, 2016 2015 2014 Current Provision: Federal $ — $ — $ — State 17 2 3 Foreign 16 59 90 Total 33 61 93 Deferred Provision: Federal — — — State — — — Foreign — 23 (23 ) Total — 23 (23 ) Total provision $ 33 $ 84 $ 70
Reconciliation of Income Taxes from Operations Computed using U.S. Federal Statutory Rate	A reconciliation of income taxes from operations computed using the U.S. federal statutory rate of 34% to that reflected in operations follows (in thousands): Years Ended December 31, 2016 2015 2014 Income tax benefit using U.S. federal statutory rate $ (4,449 ) $ (11,926 ) $ (16,366 ) Permanent differences 16 23 (60 ) State income taxes, net of federal benefit (661 ) (383 ) (2,254 ) Stock compensation 1,218 556 900 Tax credits (42 ) (459 ) (626 ) Foreign tax rate differential 1 (2 ) (11 ) Change in the valuation allowance 1,303 12,234 18,500 Unrealized gain 2,673 — — Other (26 ) 41 (13 ) Total $ 33 $ 84 $ 70
Summary of Net Deferred Tax Assets and Liabilities	Components of the Company’s deferred tax assets and liabilities are as follows (in thousands): December 31, 2016 2015 Deferred tax assets: Net operating loss carryforwards $ 79,648 $ 73,260 Research and development credit carryforwards 3,713 3,655 Capitalized research and development costs 1,366 2,196 Capitalized start-up 4,594 5,105 Depreciation and other 3,081 6,883 Total deferred tax assets 92,402 91,099 Valuation allowance (92,402 ) (91,099 ) Net deferred tax asset $ — $ —
Rollforward of Unrecognized Tax Benefits	The following is a roll forward of the Company’s unrecognized tax benefits (in thousands): December 31, 2016 2015 Unrecognized tax benefit – as of the beginning of the year $ 1,426 $ 1,252 Gross increases – tax positions of the prior periods — — Gross increases – current period tax positions 23 174 Unrecognized tax benefits – as of the end of the year $ 1,449 $ 1,426

Selected Quarterly Financial 38

Selected Quarterly Financial Information - (Unaudited) (Tables)	12 Months Ended
	Dec. 31, 2016
Selected Quarterly Financial Information - (Unaudited)	First Quarter Second Third Fourth Total Year 2016 Revenue $ 209 $ 132 $ 136 $ 68 $ 545 Gross loss* (144 ) (505 ) (2 ) (95 ) (746 ) Loss from operations (3,465 ) (3,855 ) (2,764 ) (3,034 ) (13,118 ) Net loss (3,438 ) (3,890 ) (2,754 ) (3,034 ) (13,116 ) Basic and diluted net loss per common share $ (0.36 ) $ (0.41 ) $ (0.29 ) $ (0.31 ) $ (1.37 ) 2015 Revenue $ 616 $ 310 $ 175 $ 215 $ 1,316 Gross profit (loss)* (270 ) (1,702 ) (743 ) (1,692 ) (4,407 ) Loss from operations (9,870 ) (10,252 ) (7,905 ) (6,479 ) (34,506 ) Net loss (10,349 ) (10,234 ) (8,089 ) (6,489 ) (35,161 ) Basic and diluted net loss per common share $ (1.09 ) $ (1.08 ) $ (0.85 ) $ (0.68 ) $ (3.71 ) * In the second quarter of 2016 the Company recorded a reduction of cost of revenue of approximately $0.2 million and in the fourth quarter of 2016 the Company recorded a change of approximately $0.1 million to cost of revenue for excess, expired and obsolete inventory. In the second and fourth quarter of 2015, the Company recorded a charge to cost of revenue of approximately $1.7 million and $1.5 million, respectively, for excess, expired and obsolete inventory.

Nature of Business - Additional

Nature of Business - Additional Information (Detail) $ in Thousands	Dec. 20, 2016USD ($)shares	Aug. 21, 2015	May 31, 2014USD ($)	Sep. 30, 2011USD ($)	Aug. 31, 2013USD ($)	Sep. 30, 2016USD ($)	Jun. 30, 2016USD ($)	Dec. 31, 2016USD ($)SegmentPatientshares	Dec. 31, 2015USD ($)
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		46.00%
Non-recurring charges						$ 1,100	$ 1,100
Accumulated deficit								$ (248,203)	$ (235,087)
Cash, cash equivalents and restricted cash								8,300
Issuance of shares, value			$ 30,800	$ 72,500	$ 52,500			978
Repayment of convertible term promissory notes				$ 6,000
Private placement amount received	$ 1,000
Employee Severance
Nature Of Operations [Line Items]
Non-recurring charges						600	600
Facility Closing
Nature Of Operations [Line Items]
Non-recurring charges						$ 100	100
CHESS Depositary Interests
Nature Of Operations [Line Items]
Stock issued, shares | shares	69,865,000
Restructuring Charges
Nature Of Operations [Line Items]
Non-recurring charges							$ 400
Common stock
Nature Of Operations [Line Items]
Issuance of shares, value								$ 14
Stock issued, shares | shares	1,397,300							1,397,300

Summary of Significant Accoun40

Summary of Significant Accounting Policies and Basis of Presentations - Additional Information (Detail) € in Millions, AUD in Millions	12 Months Ended
	Dec. 31, 2016USD ($)	Dec. 31, 2015USD ($)	Dec. 31, 2014USD ($)	Dec. 31, 2016AUD	Dec. 31, 2016USD ($)	Dec. 31, 2016EUR (€)	Dec. 31, 2015AUD	Dec. 31, 2015USD ($)	Dec. 31, 2015EUR (€)	Dec. 31, 2013USD ($)
Summary Of Significant Accounting Policies [Line Items]
Cash and cash equivalents			$ 51,191,000	AUD 0.1	$ 8,293,000	€ 0.2	AUD 0.2	$ 19,590,000	€ 0.5	$ 58,616,000
Deferred revenue					11,000			11,000
General and administrative	$ 6,250,000	$ 8,391,000	10,252,000
Other current liabilities					214,000			7,000
Accounting Standards Update 2015-17 | Restatement Adjustment [Member]
Summary Of Significant Accounting Policies [Line Items]
Other long-term assets								(97,000)
Other current liabilities								(97,000)
Patents
Summary Of Significant Accounting Policies [Line Items]
General and administrative	$ 400,000	$ 500,000	$ 500,000
Cash and Cash Equivalents
Summary Of Significant Accounting Policies [Line Items]
Cash equivalents					$ 6,300,000			$ 17,200,000

Property and Equipment, Includi

Property and Equipment, Including Leasehold Improvements (Detail)	12 Months Ended
	Dec. 31, 2016
Laboratory and manufacturing equipment
Property, Plant and Equipment [Line Items]
Estimated useful life	5 years
Computer equipment and software
Property, Plant and Equipment [Line Items]
Estimated useful life	3 years
Office furniture and equipment
Property, Plant and Equipment [Line Items]
Estimated useful life	5 years

Potentially Dilutive Securities

Potentially Dilutive Securities Excluded from Computation of Diluted Weighted Average Shares (Detail) - shares	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share	1,180,604	1,091,322	1,460,736
Warrant
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share	28,532	50,000	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	1,152,072	1,041,322	1,410,736

Common Stock Warrants - Additio

Common Stock Warrants - Additional Information (Detail)	May 04, 2016$ / sharesshares	Sep. 30, 2011AUD / sharesshares	Dec. 31, 2016shares
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
IPO
Class of Warrant or Right [Line Items]
Class of warrants expired		Sep. 30, 2016
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]
Vesting period of warrants	2 years
Contractual life of warrants	5 years
Common stock warrant, share reserved	28,532
Common stock warrant, shares exercised			0

Fair Value of Assets and Liabil

Fair Value of Assets and Liabilities Measured on Recurring Basis (Detail) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Warrant liability	$ 17
Fair Value, Measurements, Recurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets	6,344	$ 17,207
Warrant liability	17
Total liabilities	17
Fair Value, Measurements, Recurring | Money Market Funds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash and cash equivalents	6,344	17,207
Quoted Prices in Active Markets for Identical Assets (Level 1) | Fair Value, Measurements, Recurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets	6,344	17,207
Quoted Prices in Active Markets for Identical Assets (Level 1) | Fair Value, Measurements, Recurring | Money Market Funds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash and cash equivalents	6,344	$ 17,207
Significant Unobservable Inputs (Level 3) | Fair Value, Measurements, Recurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Warrant liability	17
Total liabilities	$ 17

Assumptions Used in the Black-S

Assumptions Used in the Black-Scholes Option Pricing Model to Determine the Fair Value of the Common Stock Warrants (Detail) - Warrant	12 Months Ended
	Dec. 31, 2016$ / shares	Dec. 31, 2015$ / shares	Dec. 31, 2014$ / shares	Dec. 31, 2016AUD / shares	Dec. 31, 2015AUD / shares	Dec. 31, 2014AUD / shares
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Exercise price | (per share)	$ 0.64	$ 40.18	$ 45.11	AUD 55	AUD 55	AUD 55
Fair value of common stock	$ 0.59	$ 1.06	$ 9.84
Expected volatility	90.50%	165.60%	62.20%
Expected term	4 years 4 months 2 days	8 months 12 days	1 year 8 months 12 days
Risk-free interest rate	1.78%	0.50%	0.50%
Expected dividend yield	0.00%	0.00%	0.00%

Assumptions Used in the Black46

Assumptions Used in the Black-Scholes Option Pricing Model to Determine the Fair Value of the Common Stock Warrants (Parenthetical) (Detail)	Dec. 31, 2016$ / shares	Dec. 31, 2016AUD / shares	Dec. 31, 2015$ / shares	Dec. 31, 2015AUD / shares	Dec. 31, 2014$ / shares	Dec. 31, 2014AUD / shares
Warrant
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Exercise price | (per share)	$ 0.64	AUD 55	$ 40.18	AUD 55	$ 45.11	AUD 55

Rollforward of Fair Value of Wa

Rollforward of Fair Value of Warrants (Detail) - Warrant - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Beginning balance		$ 9
Grant of Consulting warrants May 2016	$ 12
Increase (decrease) in fair value of warrants upon re-measurement included in other income (expense)	5	$ (9)
Ending balance	$ 17

Concentrations of Credit Risk48

Concentrations of Credit Risk, Accounts Receivable and Related Valuation Account - Additional Information (Detail)	12 Months Ended
	Dec. 31, 2016USD ($)Customer	Dec. 31, 2015USD ($)Customer	Dec. 31, 2014USD ($)
Accounts, Notes, Loans and Financing Receivable [Line Items]
Write-offs of uncollectible accounts receivable | $	$ 48,000	$ 31,000	$ 0
Allowance for doubtful accounts | $	$ 16,000	$ 59,000
Accounts Receivable | Credit Concentration Risk | Health Care Provider One
Accounts, Notes, Loans and Financing Receivable [Line Items]
Number of customers	1	1
Concentration risk percentage	43.00%	15.00%
Accounts Receivable | Credit Concentration Risk | Health Care Provider Two
Accounts, Notes, Loans and Financing Receivable [Line Items]
Number of customers	1	1
Concentration risk percentage	22.00%	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

Components of Company's Account

Components of Company's Accounts Receivable (Detail) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Valuation and Qualifying Accounts Disclosure [Line Items]
Accounts receivable	$ 68	$ 121
Less: allowance for doubtful accounts	(16)	(59)
Less: allowance for sales returns	(22)	(22)
Total	$ 30	$ 40

Roll Forward of Allowance for D

Roll Forward of Allowance for Doubtful Accounts (Detail) - Allowance for Doubtful Accounts - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Valuation and Qualifying Accounts Disclosure [Line Items]
Beginning balance	$ 59	$ 41
Net charges to expenses	5	49	$ 41
Utilization of allowances	(48)	(31)
Ending balance	$ 16	$ 59	$ 41

Inventory - Additional Informat

Inventory - Additional Information (Detail) - USD ($) $ in Thousands	3 Months Ended				12 Months Ended
	Dec. 31, 2016	Jun. 30, 2016	Dec. 31, 2015	Jun. 30, 2015	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Inventory [Line Items]
Change in inventory reserves	$ 100	$ 200	$ 1,500	$ 1,700	$ (77)	$ 3,155	$ 1,527
Raw material inventory reserve	$ 5,000		$ 5,000		$ 5,000	$ 5,000
Percentage of consignment inventories	5.00%		2.00%		5.00%	2.00%
Sleeve Material
Inventory [Line Items]
Raw material inventory reserve	$ 3,300		$ 3,300		$ 3,300	$ 3,300

Inventory, Net of Reserves (Det

Inventory, Net of Reserves (Detail) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Inventory [Line Items]
Finished goods	$ 213	$ 391
Work-in-process		605
Raw materials		29
Total	$ 213	$ 1,025

Property and Equipment (Detail)

Property and Equipment (Detail) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Property, Plant and Equipment [Line Items]
Property Plant and equipment gross	$ 1,969	$ 2,652
Less accumulated depreciation and amortization	(1,820)	(2,251)
Total	149	401
Laboratory and manufacturing equipment
Property, Plant and Equipment [Line Items]
Property Plant and equipment gross	591	457
Computer equipment and software
Property, Plant and Equipment [Line Items]
Property Plant and equipment gross	1,174	1,118
Office furniture and equipment
Property, Plant and Equipment [Line Items]
Property Plant and equipment gross	183	229
Leasehold Improvements
Property, Plant and Equipment [Line Items]
Property Plant and equipment gross	$ 21	$ 848

Recognized Charge for Impaired

Recognized Charge for Impaired Fixed Assets (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Impaired Long-Lived Assets Held and Used [Line Items]
Impairment of fixed assets	$ 145	$ 389
Cost of revenue
Impaired Long-Lived Assets Held and Used [Line Items]
Impairment of fixed assets	24	265
Research and Development Expense
Impaired Long-Lived Assets Held and Used [Line Items]
Impairment of fixed assets	79	100
Sales and marketing
Impaired Long-Lived Assets Held and Used [Line Items]
Impairment of fixed assets		5
General and Administrative Expense
Impaired Long-Lived Assets Held and Used [Line Items]
Impairment of fixed assets	$ 42	$ 19

Property and Equipment - Additi

Property and Equipment - Additional Information (Detail) - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Property, Plant and Equipment [Line Items]
Assets under capital leases	$ 0
Depreciation and amortization expense including equipment recorded under capital leases	$ 200,000	$ 500,000	$ 700,000

Accrued Expenses (Detail)

Accrued Expenses (Detail) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Accrued Liabilities [Line Items]
Clinical trials	$ 16	$ 1,809
Payroll and related liabilities	430	501
Professional fees	617	454
Deferred rent, current portion		168
Other	97	136
Total	$ 1,160	$ 3,068

Accrued Expenses - Additional I

Accrued Expenses - Additional Information (Detail) - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Accrued Liabilities [Line Items]
Separation related expenses	$ 600,000	$ 600,000
Payroll and related liabilities	$ 0	$ 100,000

Short-Term Notes Payable - Addi

Short-Term Notes Payable - Additional Information (Detail) - First Insurance Funding Corp - Short Term Loan Agreement	12 Months Ended
	Dec. 31, 2016USD ($)Installment
Short-term Debt [Line Items]
Short term loan, maximum borrowing capacity	$ 306,380
Number of monthly payments | Installment	10
Monthly payments, including principal and interest	$ 30,638
Annual interest rate	1.95%
Other Current Liabilities
Short-term Debt [Line Items]
Short term loan payable	$ 214,466

Commitments and Contingencies -

Commitments and Contingencies - Additional Information (Detail)	1 Months Ended	12 Months Ended
	Jun. 30, 2016USD ($)ft²	Dec. 31, 2016USD ($)	Dec. 31, 2015USD ($)	Dec. 31, 2014USD ($)	Dec. 31, 2010USD ($)	Dec. 31, 2009USD ($)	Dec. 31, 2008USD ($)	Dec. 31, 2007USD ($)	Dec. 31, 2006USD ($)	Dec. 31, 2005USD ($)	Dec. 31, 2004USD ($)	Dec. 31, 2003USD ($)
Loss Contingencies [Line Items]
Rentable area of leased premises | ft²	4,200
Rent expense	$ 11,900	$ 500,000	$ 500,000	$ 500,000
License agreement payment					$ 25,000	$ 25,000	$ 25,000	$ 25,000	$ 25,000	$ 25,000	$ 12,500	$ 75,000

Future Minimum Lease Payments U

Future Minimum Lease Payments Under All Non-cancelable Lease Arrangements (Detail) $ in Thousands	Dec. 31, 2016USD ($)
Operating Leased Assets [Line Items]
2,017	$ 143
2,018	48
2,019	0
Total future minimum lease payments	$ 191

Stockholders' Equity - Addition

Stockholders' Equity - Additional Information (Detail) $ in Thousands	Dec. 20, 2016USD ($)shares	Apr. 09, 2015USD ($)shares	Dec. 31, 2016USD ($)shares	Dec. 31, 2014USD ($)	Dec. 31, 2015shares
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		500,000
Reverse stock split ratio		0.1
Reverse stock split ratio, description		On April 9, 2015, the Company amended its certificate of incorporation to reflect the one-for-ten reverse stock split approved by its shareholders.
Proceeds from issuance of shares | $		$ 232,600	$ 978	$ 30,782
Private placement amount received | $	$ 1,000
Class B common stock
Class of Stock [Line Items]
Common stock, shares authorized		1,000,000	1,000,000		1,000,000
CHESS Depositary Interests
Class of Stock [Line Items]
Stock issued, shares	69,865,000
Common stock
Class of Stock [Line Items]
Common stock, shares authorized		13,000,000
Stock issued, shares	1,397,300		1,397,300

Stock Plans - Additional Inform

Stock Plans - Additional Information (Detail)	12 Months Ended
	Dec. 31, 2016USD ($)CompensationPlan$ / sharesshares	Dec. 31, 2015USD ($)$ / sharesshares	Dec. 31, 2014USD ($)$ / sharesshares	Dec. 31, 2013USD ($)shares	Aug. 31, 2011shares	Aug. 01, 2011shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of stock-based compensation plans | CompensationPlan	2
Annual increase in number of shares available for grant | shares	500,000
Percentage of common shares outstanding	4.00%
Number of shares available for issue, additional shares | shares	380,222
Stock options, vesting period	4 years
Stock options, expire period	10 years
Options granted, outstanding | shares	748,571	779,028
Expense associated with modification and vesting of options granted		$ 19,000
Estimated forfeiture rates	15.00%	15.00%	5.00%
Unrecognized stock-based compensation	$ 400,000
Weighted-average grant date fair value of options granted | $ / shares	$ 1	$ 2.91	$ 15.22
Option exercised total intrinsic value	$ 0	$ 10,000	$ 4,400,000
Proceeds from exercise of stock options	0	2,000	628,000
Tax benefits realized from options and other stock-based payment	$ 0	$ 0	0
Shares of common stock issued pursuant to exercise of unvested options | shares	0	168
Cash paid for the exercise price	$ 0	$ 4,000
Stock-based compensation expense	$ 667,000	3,161,000	4,670,000
Options granted, shares | shares	575,106
Stock-based compensation expense	$ 667,000	$ 3,161,000	$ 4,670,000
Stock Incentive Plan 2011
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares available for future grants | shares	1,060,920					80,235
Share reserved for incentive plan | shares					450,000
Stock Incentive Plan 2003
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares available for future grants | shares	922,086
Performance Shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Options granted, outstanding | shares		0	20,000
Expense associated with modification and vesting of options granted	$ 0	$ 0	$ 0
Restricted stock units outstanding | shares	403,501
Unrecognized stock based compensation	$ 100,000
Stock Option
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Recognized weighted-average period years	2 years 8 months 1 day
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
Shares granted to employees | shares	392,659	143,506
Weighted average grant date fair value per share | $ / shares	$ 0.75	$ 5.39
Stock-based compensation expense			300,000
Restricted stock units outstanding | shares	403,501	262,126
Restricted Stock Units (RSUs) Having Service-Based Vesting
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation expense (benefit)	$ (100,000)	$ 500,000
Non Employees
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Options granted, shares | shares	50,000	0		30,000
Options granted, aggregate fair value				$ 600,000
Stock-based compensation expense	$ 500,000	$ 6,000	$ 200,000

Stock-Based compensation Reflec

Stock-Based compensation Reflected in Consolidated Statements of Operations and Comprehensive Loss (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation expense	$ 667	$ 3,161	$ 4,670
Cost of revenue
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation expense	34	89	126
Research and Development Expense
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation expense	56	456	1,179
Sales and marketing
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation expense	159	425	1,367
General and Administrative Expense
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation expense	$ 418	$ 2,191	$ 1,998

Weighted-average Assumptions us

Weighted-average Assumptions used to Estimate Fair Value of Stock Options (Detail)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected volatility	75.80%	56.80%	61.60%
Expected term (in years)	6 years 18 days	6 years 15 days	6 years 18 days
Risk-free interest rate	2.10%	1.60%	2.10%
Expected dividend yield	0.00%	0.00%	0.00%

Share-Based Activity (Detail)

Share-Based Activity (Detail) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Options
Outstanding, beginning balance	779,028
Granted	575,106
Exercised	0
Cancelled	(605,563)
Outstanding, ending balance	748,571	779,028
Vested or expected to vest at December 31, 2016	660,760
Exercisable at December 31, 2016	163,156
Weighted Average Exercise Price
Outstanding, beginning balance	$ 23.92
Granted	1
Exercised	0
Cancelled	20.99
Outstanding, ending balance	8.67	$ 23.92
Vested or expected to vest at December 31, 2016	9.63
Exercisable at December 31, 2016	$ 34.39
Weighted Average Contractual Life (in Years)
Outstanding at end of period	8 years 4 months 17 days	7 years 7 months 21 days
Vested or expected to vest at December 31, 2016	8 years 3 months
Exercisable at December 31, 2016	4 years 10 months 17 days
Aggregate Intrinsic Value
Outstanding at end of period	$ 0	$ 0
Vested or expected to vest at December 31, 2016	0
Exercisable at December 31, 2016	$ 0

Restricted Stock Units and Acti

Restricted Stock Units and Activity (Detail) - Restricted Stock Units (RSUs) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Number of Units
Outstanding, beginning balance	262,126
Granted	392,659	143,506
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 1 month 10 days	4 years 3 months 18 days
Aggregate Intrinsic Value
Outstanding Aggregate Intrinsic Value	$ 365	$ 278

Segment Reporting - Additional

Segment Reporting - Additional Information (Detail) $ in Millions	12 Months Ended
	Dec. 31, 2016USD ($)CustomerSegment	Dec. 31, 2015Customer	Dec. 31, 2014Customer
Revenues from External Customers and Long-Lived Assets [Line Items]
Number of reportable segments | Segment	1
Long-lived assets | $	$ 0.1
Sales Revenue, Net | Customer Concentration Risk | Distributors
Revenues from External Customers and Long-Lived Assets [Line Items]
Number of customers	1	1	1
Sales Revenue, Net | Customer Concentration Risk | Distributor One
Revenues from External Customers and Long-Lived Assets [Line Items]
Concentration risk percentage	24.00%	15.00%	16.00%
Sales Revenue, Net | Customer Concentration Risk | Other Customer
Revenues from External Customers and Long-Lived Assets [Line Items]
Number of customers	0	0	0

Product Sales by Geographic Loc

Product Sales by Geographic Location (Detail) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue	$ 68	$ 136	$ 132	$ 209	$ 215	$ 175	$ 310	$ 616	$ 545	$ 1,316	$ 2,828
Europe
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue									309	1,007	1,687
Middle East
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue									154	146	247
South America
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue									0	41	466
Asia Pacific
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue									$ 82	$ 122	$ 428

Retirement Plans - Additional I

Retirement Plans - Additional Information (Detail) - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Defined Benefit Plan Disclosure [Line Items]
Defined contribution plan company contribution percentage	100.00%
Defined contribution plan cost recognized	$ 100,000	$ 200,000	$ 300,000
International employees
Defined Benefit Plan Disclosure [Line Items]
Defined contribution plan company contribution percentage	100.00%
Defined contribution plan cost recognized	$ 7,000	$ 21,000	$ 30,000

Loss before Provision for Incom

Loss before Provision for Income Taxes (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Summarizes Income Loss From Continuing Operations Before Income Tax Expense [Line Items]
Domestic	$ (13,124)	$ (35,190)	$ (48,298)
Foreign	41	113	163
Loss before income tax expense	$ (13,083)	$ (35,077)	$ (48,135)

Summary Provision for Income Ta

Summary Provision for Income Taxes in Accompanying Consolidated Statements of Operations and Comprehensive Loss (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Current Provision:
Federal	$ 0	$ 0	$ 0
State	17	2	3
Foreign	16	59	90
Total	33	61	93
Deferred Provision:
Federal	0	0	0
State	0	0	0
Foreign		23	(23)
Total		23	(23)
Total provision	$ 33	$ 84	$ 70

Income Tax - Additional Informa

Income Tax - Additional Information (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Income Taxes [Line Items]
U.S. federal statutory rate	34.00%
Net operating loss carryforwards	$ 208,500	$ 198,900
Decrease in net operating loss carryforwards	(1,500)
Unrecognized tax liabilities	1,449	1,426	$ 1,252
UNITED STATES
Income Taxes [Line Items]
Deferred tax assets valuation allowance	92,400	$ 91,100
Increase in deferred tax valuation allowance	1,300
Research and development | Federal
Income Taxes [Line Items]
Tax credit carryforwards	2,700
Research and development | State
Income Taxes [Line Items]
Tax credit carryforwards	$ 1,000

Reconciliation of Income Taxes

Reconciliation of Income Taxes from Operations (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Schedule Of Effective Income Tax Rate Reconciliation [Line Items]
Income tax benefit using U.S. federal statutory rate	$ (4,449)	$ (11,926)	$ (16,366)
Permanent differences	16	23	(60)
State income taxes, net of federal benefit	(661)	(383)	(2,254)
Stock compensation	1,218	556	900
Tax credits	(42)	(459)	(626)
Foreign tax rate differential	1	(2)	(11)
Change in the valuation allowance	1,303	12,234	18,500
Unrealized gain	2,673
Other	(26)	41	(13)
Total provision	$ 33	$ 84	$ 70

Summary of Net Deferred Tax Ass

Summary of Net Deferred Tax Assets and Liabilities (Detail) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Deferred tax assets
Net operating loss carryforwards	$ 79,648	$ 73,260
Research and development credit carryforwards	3,713	3,655
Capitalized research and development costs	1,366	2,196
Capitalized start-up expenses	4,594	5,105
Depreciation and other	3,081	6,883
Total deferred tax assets	92,402	91,099
Valuation allowance	(92,402)	(91,099)
Net deferred tax asset	$ 0	$ 0

Unrecognized Tax Benefits (Deta

Unrecognized Tax Benefits (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items]
Unrecognized tax benefit - as of the beginning of the year	$ 1,426	$ 1,252
Gross increases - tax positions of the prior periods	0	0
Gross increases - current period tax positions	23	174
Unrecognized tax benefits - as of the end of the year	$ 1,449	$ 1,426

Selected Quarterly Financial 76

Selected Quarterly Financial Information - (Unaudited) (Detail) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended																12 Months Ended
	Dec. 31, 2016		Sep. 30, 2016		Jun. 30, 2016		Mar. 31, 2016		Dec. 31, 2015		Sep. 30, 2015		Jun. 30, 2015		Mar. 31, 2015		Dec. 31, 2016		Dec. 31, 2015		Dec. 31, 2014
Quarterly Financial Information [Line Items]
Revenue	$ 68		$ 136		$ 132		$ 209		$ 215		$ 175		$ 310		$ 616		$ 545		$ 1,316		$ 2,828
Gross profit (loss)	(95)	[1]	(2)	[1]	(505)	[1]	(144)	[1]	(1,692)	[1]	(743)	[1]	(1,702)	[1]	(270)	[1]	(746)	[1]	(4,407)	[1]	(1,261)
Loss from operations	(3,034)		(2,764)		(3,855)		(3,465)		(6,479)		(7,905)		(10,252)		(9,870)		(13,118)		(34,506)		(48,190)
Net loss	$ (3,034)		$ (2,754)		$ (3,890)		$ (3,438)		$ (6,489)		$ (8,089)		$ (10,234)		$ (10,349)		$ (13,116)		$ (35,161)		$ (48,205)
Basic and diluted net loss per common share	$ (0.31)		$ (0.29)		$ (0.41)		$ (0.36)		$ (0.68)		$ (0.85)		$ (1.08)		$ (1.09)		$ (1.37)		$ (3.71)		$ (5.36)
[1]	In the second quarter of 2016 the Company recorded a reduction of cost of revenue of approximately $0.2 million and in the fourth quarter 2016 the Company recorded a change of approximately $0.1 million to cost of revenue for excess, expired and obsolete inventory, In the second and fourth quarter of 2015, the Company recorded a charge to cost of revenue of approximately $1.7 million and $1.5 million, respectively, for excess, expired and obsolete inventory.

Selected Quarterly Financial 77

Selected Quarterly Financial Information - (Unaudited) (Parenthetical) (Detail) - USD ($) $ in Thousands	3 Months Ended				12 Months Ended
	Dec. 31, 2016	Jun. 30, 2016	Dec. 31, 2015	Jun. 30, 2015	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Quarterly Financial Information [Line Items]
Change in inventory reserves	$ 100	$ 200	$ 1,500	$ 1,700	$ (77)	$ 3,155	$ 1,527

Subsequent Events - Additional

Subsequent Events - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands	Dec. 20, 2016	Apr. 09, 2015	Jan. 31, 2017	Dec. 31, 2016	Dec. 31, 2014
Subsequent Event [Line Items]
Proceeds from issuance of shares		$ 232,600		$ 978	$ 30,782
CHESS Depositary Interests
Subsequent Event [Line Items]
Stock issued, shares	69,865,000
Common stock
Subsequent Event [Line Items]
Stock issued, shares	1,397,300			1,397,300
Subsequent Event
Subsequent Event [Line Items]
Common stock issued, price per share			$ 0.83
Proceeds from issuance of shares			$ 200
Subsequent Event | CHESS Depositary Interests
Subsequent Event [Line Items]
Stock issued, shares			12,481,600
Subsequent Event | Common stock
Subsequent Event [Line Items]
Stock issued, shares			249,632