Gi Dynamics (GIDYL) 10-Q 14 Nov 17 2017 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2017	Nov. 01, 2017
Document Information [Line Items]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Sep. 30, 2017
Document Fiscal Year Focus	2,017
Document Fiscal Period Focus	Q3
Trading Symbol	GIDYL
Entity Registrant Name	GI DYNAMICS, INC.
Entity Central Index Key	1,245,791
Current Fiscal Year End Date	--12-31
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		11,157,489

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Current assets:
Cash and cash equivalents	$ 5,510	$ 8,293
Restricted cash	30	30
Accounts receivable, net	41	30
Inventory, net		213
Prepaid expenses and other current assets	430	483
Total current assets	6,011	9,049
Property and equipment, net	108	149
Total assets	6,119	9,198
Current liabilities:
Accounts payable	1,128	1,006
Accrued expenses	1,128	1,160
Deferred revenue	11	11
Other current liabilities		214
Total current liabilities	2,267	2,391
Long term debt-related party, net of debt issuance costs	4,910
Warrant liability	50	17
Total liabilities	7,227	2,408
Commitments (Note 12)
Stockholders' equity (deficit):
Preferred stock, $0.01 par value - 500,000 shares authorized; no shares issued and outstanding at September 30, 2017 and December 31, 2016
Common stock	112	109
Additional paid-in capital	255,269	254,884
Accumulated deficit	(256,489)	(248,203)
Total stockholders' equity (deficit)	(1,108)	6,790
Total liabilities and stockholders' equity (deficit)	$ 6,119	$ 9,198

Condensed Consolidated Balance3

Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares	Sep. 30, 2017	Dec. 31, 2016
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	50,000,000	13,000,000
Common stock, shares issued	11,157,489	10,907,857
Common stock, shares outstanding	11,157,489	10,907,857
Class B common stock
Common stock, par value	$ 0.01	$ 0.01
Common stock, shares authorized	0	1,000,000
Common stock, shares issued	0	0
Common stock, shares outstanding	0	0

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations and Comprehensive Loss - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Revenue	$ 23	$ 136	$ 173	$ 477
Cost of revenue	15	138	223	1,128
Gross margin (loss)	8	(2)	(50)	(651)
Operating expenses:
Research and development	960	962	3,010	2,993
Sales and marketing	494	479	1,474	1,753
General and administrative	1,095	1,321	3,624	4,687
Total operating expenses	2,549	2,762	8,108	9,433
Loss from operations	(2,541)	(2,764)	(8,158)	(10,084)
Other income (expense):
Interest income	13	9	25	36
Interest expense	(82)		(100)
Foreign exchange gain (loss)		6	(6)	9
Other Income			23
Re-measurement of warrant liability	7	3	(33)	(14)
Other income (expense), net	(62)	18	(91)	31
Loss before income tax expense	(2,603)	(2,746)	(8,249)	(10,053)
Income tax expense	6	8	9	29
Net loss	$ (2,609)	$ (2,754)	$ (8,258)	$ (10,082)
Basic and diluted net loss per common share	$ (0.23)	$ (0.29)	$ (0.74)	$ (1.06)
Weighted-average number of common shares used in basic and diluted net loss per common share	11,157,489	9,510,557	11,143,773	9,509,055

Condensed Consolidated Stateme5

Condensed Consolidated Statements of Cash Flows $ in Thousands	9 Months Ended
	Sep. 30, 2017USD ($)	Sep. 30, 2016USD ($)
Operating activities
Net loss	$ (8,258)	$ (10,082)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	46	171
Amortization of debt issuance costs	25
Stock-based compensation expense	162	609
Remeasurement of warrant liability	33	14
Impairment loss on fixed assets	0	145
Change in inventory reserve	(76)	(187)
Gain on sale of property and equipment		4
Changes in operating assets and liabilities:
Accounts receivable	(11)	(66)
Prepaid expenses and other current assets	53	201
Inventory	289	799
Accounts payable	122	94
Accrued expenses	(32)	(1,447)
Deferred rent		(263)
Net cash used in operating activities	(7,647)	(10,008)
Investing activities
Change in restricted cash		(150)
Purchases of property and equipment	(5)	(79)
Proceeds from sale of property and equipment		4
Net cash used in investing activities	(5)	(225)
Financing activities
Proceeds from issuance of common stock	198	307
Debt issuance costs	(115)
Proceeds from long term borrowing, related party	5,000
Payments on short term note payable	(214)	(2)
Net cash provided by financing activities	4,869	305
Net decrease in cash and cash equivalents	(2,783)	(9,928)
Cash and cash equivalents at beginning of period	8,293	19,590
Cash and cash equivalents at end of period	5,510	9,662
Supplemental cash flow disclosures
Income taxes paid	31	56
Equipment acquired under capital lease		$ 2
Effect on accumulated deficit of adopting ASU No. 2016-09 in 2017	$ 28

Nature of Business

Nature of Business	9 Months Ended
	Sep. 30, 2017
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 and long-term goal is to establish EndoBarrier 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 (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 to provide additional time to evaluate and develop its strategic options. These actions resulted in non-recurring In October 2016, the Company received final cancellation notification from the Therapeutic Goods Administration (“TGA”) for the listing of EndoBarrier on the Australian Register of Therapeutic Goods (“ARTG”). The TGA stated that the Company failed to provide adequate evidence of compliance with certain provisions of the TGA Essential Principles within the required number of working days in 2015. In May 2017, the Company received notification from its notified body SGS United Kingdom Limited (“SGS”) that the CE Mark for its EndoBarrier ® non-conformances non-conformances To date, the Company has focused its commercialization efforts within select European Union and Middle East countries and is re-engaging From its inception in 2003 to its initial public offering (“IPO”) in 2011, the Company was financed by a series of preferred stock financings. In September 2011, the Company completed its IPO of common stock in the form of CHESS Depositary Interests (“CDIs”) in Australia and has completed a number of equity financings since that time. On December 20, 2016, the Company completed a private placement sale of 69,865,000 CDIs (1,397,300 shares) for approximately $1.0 million, net of expenses. In January 2017, the Company completed the sale of 249,632 shares (12,481,600 CDIs) 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. To date, GI Dynamics has raised approximately $238 million in net proceeds through issuance of debt and sales of its equity. In June 2017, the Company completed a Convertible Term Promissory Note (the “Note”) financing for a gross amount of $5.0 million that accrues interest at 5% per annum compounded annually. The Note is due by December 31, 2018 and contains provisions for conversion during the term of the Note (See Note 11 of the Condensed Consolidated Financial Statements for a more complete description of the terms and conditions). Going Concern Evaluation As of September 30, 2017, the Company’s primary source of liquidity is its cash and cash equivalents balances. The Company continues to evaluate which markets are appropriate to continue pursuing reimbursement, market awareness and general market development and selling efforts, and continue to restructure its business and costs, establish new priorities, and evaluate strategic options. As a result, if the Company remains in business, it expects to incur significant operating losses for the next several years. The Company does not expect its current cash balances will be sufficient to continue to fund its operations after February 2018. In addition, as previously disclosed, in May 2017, it received notification from its notified body SGS United Kingdom Limited (SGS) that the CE Mark for EndoBarrier has been suspended pending closure of non-conformances related to its quality management system required under ISO 13485:2003 and 93/42/EEC. As disclosed in the Company’s Form 8-K filed on November 13, 2017, on November 10, 2017 (November 11, 2017 Australian Eastern Daylight Time), the Company received notification from SGS that it will withdraw the CE Certificate of Conformity for EndoBarrier effective November 12, 2017. Withdrawal of the CE Certificate of Conformity means that the Company will not be able to affix the CE Mark and sell EndoBarrier in European Union countries until another Certificate of Conformity is issued by SGS or another notified body or any appeal is successful. The company is evaluating its options including grounds for appeal of the decision, consulting with its advisors and has initiated communications with SGS to clarify certain procedural and substantive matters relating to the notice. If the Company decides to initiate an appeal process and the appeal is not resolved favorably by November 17, 2017, the Company expects that it will be required to make further significant reductions in its operations which could include an orderly wind down of the Company. If an appeal of the withdrawal by SGS is successful, the Company will need to raise additional capital before February 2018 in order to continue to pursue its current business objectives as planned and to continue to fund its operations. The Company is looking to raise additional funds through any combination of additional equity and debt financings or from other sources. However, the Company has no guaranteed source of capital that will sustain operations after February 2018 and there can be no assurance that any such potential 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 cease operations, including discontinuing research and development activities and further commercialization of EndoBarrier. As such, if access to capital is not achieved in the near term, it will materially harm the Company’s business, financial condition and results of operations. These factors raise substantial doubt about the Company’s ability to continue as a going concern. The Company has incurred operating losses since inception and at September 30, 2017 had an accumulated deficit of approximately $256.5 million. GI Dynamics expects to incur significant operating losses for the next several years. At September 30, 2017, the Company had approximately $5.5 million in cash, cash equivalents and restricted cash. The Company does not expect its current cash balances will be sufficient to fund its operations after February 2018. The accompanying condensed consolidated financial statements have been prepared assuming the Company will continue as a going concern, which contemplates the realization of assets and liabilities and commitments in the normal course of business. The condensed consolidated financial statements as of September 30, 2017, and December 31, 2016 and the three and nine months ended September 30, 2017 and 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.

Summary of Significant Accounti

Summary of Significant Accounting Policies and Basis of Presentation	9 Months Ended
	Sep. 30, 2017
Summary of Significant Accounting Policies and Basis of Presentation	2. Summary of Significant Accounting Policies and Basis of Presentation The accompanying condensed consolidated financial statements and the related disclosures as of September 30, 2017, and for the three and nine months ended September 30, 2017 and 2016, are unaudited and have been prepared in accordance with accounting principles generally accepted in the U.S. (“GAAP”) and the applicable rules and regulations of the Securities and Exchange Commission (“SEC”) for interim financial information. Accordingly, they do not include all of the information and notes required by GAAP for complete financial statements. These interim condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto contained in the Company’s Annual Report on Form 10-K (“Form 10-K”), The unaudited interim condensed consolidated financial statements have been prepared on the same basis as the audited consolidated financial statements and, in the opinion of management, reflect all adjustments of a normal recurring nature considered necessary to present fairly the Company’s financial position as of September 30, 2017, results of its operations for the three and nine months ended September 30, 2017 and 2016, and its cash flows for the nine months ended September 30, 2017 and 2016. The interim results for the nine months ended September 30, 2017 are not necessarily indicative of the results that may be expected for the year ending December 31, 2017. The Company’s significant accounting policies are as described in Note 2, Summary of Significant Accounting Policies and Basis of Presentation 10-K. Principles of Consolidation The accompanying condensed consolidated financial statements include the accounts of GI Dynamics, Inc. and its wholly owned subsidiaries. All intercompany transactions and balances are eliminated in consolidation. Use of Estimates The preparation of consolidated financial statements in accordance with GAAP requires the Company’s management to make estimates and judgments that may affect the reported amounts of assets, liabilities, revenues and expenses, and the related disclosure of contingent assets and liabilities. On an ongoing basis, the Company’s management evaluates its estimates, including those related to revenue recognition, allowance for doubtful accounts, inventory valuation including reserves for excess and obsolete inventory, impairment of long-lived assets, income taxes including the valuation allowance for deferred tax assets, research and development, contingencies, stock-based compensation, going concern considerations, and warrant valuations. The Company bases its estimates on historical experience and on various other assumptions that are believed to be reasonable, the results of which form the basis for making judgments about the carrying values of assets and liabilities. Actual results may differ from these estimates under different assumptions or conditions. Changes in estimates are reflected in reported results in the period in which they become known. Guarantees The Company has identified the guarantees described below as disclosable, in accordance with ASC 460, Guarantees As permitted under Delaware law, the Company indemnifies its officers and directors for certain events or occurrences while the officer or director is, or was, serving at the Company’s request in such capacity. The maximum potential amount of future payments the Company could be required to make is unlimited; however, the Company has directors’ and officers’ insurance coverage that should limit its exposure and enable it to recover a portion of any future amounts paid. The Company is a party to a number of agreements entered into in the ordinary course of business that contain typical provisions that obligate the Company to indemnify the other parties to such agreements upon the occurrence of certain events. Such indemnification obligations are usually in effect from the date of execution of the applicable agreement for a period equal to the applicable statute of limitations. The aggregate maximum potential future liability of the Company under such indemnification provisions is uncertain. As of September 30, 2017, and December 31, 2016, the Company had not experienced any material losses related to these indemnification obligations, and no material claims with respect thereto were outstanding. The Company does not expect significant claims related to these indemnification obligations and, consequently, concluded that the fair value of these obligations is negligible. As a result, no related reserves have been established. Restricted Cash Restricted balances of cash, which are shown under current assets as restricted cash, relate to funds set aside to secure amounts outstanding on company supported credit card balances. New Accounting Pronouncements From time to time, new accounting pronouncements are issued by the Financial Accounting Standards Board (“FASB”) or other standard setting bodies that are adopted by the Company as of the specified effective date. Unless otherwise discussed, the Company believes that the effect of recently issued standards that are not yet effective will not have a material effect on its consolidated financial position or results of operations upon adoption. In 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 No. 2016-09 No. 2016-09 In August, 2016, the FASB issued ASU No. 2016-15—Classification 2016-15 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 or restricted cash equivalents. Therefore, amounts generally described as restricted cash and restricted cash equivalents should be included with cash and cash equivalents when reconciling the beginning-of-period end-of-period 20116-18

Net Loss per Common Share

Net Loss per Common Share	9 Months Ended
	Sep. 30, 2017
Net Loss per Common Share	3. Net Loss per Common Share Basic net loss per common share is computed by dividing net loss by the weighted-average number of common shares outstanding during the period. Potential common stock equivalents are determined using the treasury stock method. For diluted net loss per share purposes, the Company excludes stock options and other stock-based awards, including shares issued as a result of option exercises but which are subject to repurchase by the Company, whose effect would be anti-dilutive from the calculation. During the three and nine months ended September 30, 2017 and 2016, 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 September 30, 2017 and 2016, as they would be anti-dilutive: Three Months Ended Nine Months Ended 2017 2016 2017 2016 Warrants to purchase common stock 28,532 28,532 28,532 28,532 Options to purchase common stock and other stock-based awards 1,504,938 1,165,427 1,504,938 1,165,427 Total 1,533,470 1,193,959 1,533,470 1,193,959

Common Stock Warrants

Common Stock Warrants	9 Months Ended
	Sep. 30, 2017
Common Stock Warrants	4. Common Stock Warrants In connection with the Company’s initial public offering (“IPO”) in September 2011, the Company issued warrants (“IPO Warrants”) in an aggregate amount of 50,000 shares of common stock at an exercise price of A$55.00 per share to the lead manager of the IPO and certain other investors. The IPO Warrants expired on September 1, 2016. On May 4, 2016, the Company entered into a consulting agreement pursuant to which a consulting firm provides 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 September 30, 2017, the Consultant Warrants had not been exercised. The Company accounts for the Warrants under Accounting Standards Codification 815, Derivatives and Hedging indexed to the Company’s own stock, and therefore, the IPO Warrants were classified as a liability. The Consultant Warrant contains a cashless exercise provision which meets the net settlement criteria of ASC 815 and is therefore considered a derivative and is classified as a liability. The Consultant Warrant is classified as a liability and as such the fair value of the Warrant must be remeasured at each reporting period. At the time the Warrant was issued, the Company estimated the fair value of the Warrant using the Black-Scholes option pricing model. The Company remeasures the fair value of the Warrant at each reporting period using current assumptions. Changes in value recorded are as other income or expense (Note 5).

Fair Value of Financial Instrum

Fair Value of Financial Instruments	9 Months Ended
	Sep. 30, 2017
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 September 30, 2017 and December 31, 2016, 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 Quoted Prices in Significant Other Significant Description September 30, 2017 (Level 1) (Level 2) (Level 3) Assets Money market funds (included in cash and cash equivalents) $ 5,510 $ 5,510 $ — $ — Total assets $ 5,510 $ 5,510 $ — $ — Liabilities Warrants to purchase common stock $ 50 $ — $ — $ 50 Total liabilities $ 50 $ — $ — $ 50 Fair Value Measurements at Reporting Date Using Quoted Prices in Significant Other Significant Unobservable Inputs Description December 31, 2016 (Level 1) (Level 2) (Level 3) Assets Money market funds (included in cash and cash equivalents) $ 6,344 $ 6,344 $ — $ — Total assets $ 6,344 $ 6,344 $ — $ — Liabilities Warrants to purchase common stock $ 17 $ — $ — $ 17 Total liabilities $ 17 $ — $ — $ 17 The assumptions used in the Black-Scholes option pricing model to determine the fair value of the Consultant Warrant as of September 30, 2017, and December 31, 2016 were as follows: September 30, 2017 December 31, 2016 Exercise price $ 0.64 $ 0.64 Fair value of common stock $ 1.96 $ 0.59 Expected volatility 135.96 % 90.5 % Expected term (in years) 3.59 4.34 Risk-free interest rate 1.71 % 1.78 % 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, 2016 $ 17 Issuance of Consultant Warrant — Increase in fair value of Warrants upon remeasurement included in other income (expense) 33 Balance at September 30, 2017 $ 50 Cash equivalents, restricted cash, accounts receivable, prepaid expenses and other current assets, accounts payable, accrued expenses, short term loans payable and other current liabilities at September 30, 2017 and December 31, 2016 are carried at amounts that approximate fair value due to their short-term maturities and highly liquid nature of these instruments. The carrying value of the Company’s Senior Secured Convertible Promissory Note approximates fair value based on certain industry studies obtained by the Company.

Concentrations of Credit Risk,

Concentrations of Credit Risk, Accounts Receivable and Related Valuation Accounts	9 Months Ended
	Sep. 30, 2017
Concentrations of Credit Risk, Accounts Receivable and Related Valuation Accounts	6. Concentrations of Credit Risk, Accounts Receivable and Related Valuation Accounts Financial instruments that subject the Company to credit risk primarily consists of cash and cash equivalents, restricted cash and accounts receivable. The Company maintains its cash, cash equivalents and restricted cash balances with high quality financial institutions, and consequently, the Company believes that such funds are subject to minimal credit risk. Accounts receivable primarily consist of amounts due from customers, including distributors and health care providers in different countries. In light of the current economic state of many foreign countries, the Company continues to monitor the creditworthiness of its customers. In May 2017, the Company entered into a sales arrangement with certain distributors totaling $517,000 of EndoBarrier inventory. Due to certain extended right of return periods and payment terms, the Company determined that the revenue and related product costs associated with this transaction should be deferred for accounting purposes. No revenue or cost of sales have been recorded for the three and nine months ended September 30, 2017 related to this transaction. Additionally, no payments have been received from distributors in connection with the transaction. As a result, the Company has recorded an adjustment to accounts receivable of $559,000 for the unpaid portion of deferred revenue which includes an adjustment of approximately $42,000 for revaluation of receivables denominated in foreign currency at September 30, 2017. As of September 30, 2017, the Company has also reported deferred product costs, which represents the value of the inventory transferred to distributors in connection with this sale transaction of approximately $27,000 in other current assets. The Company expects to recognize revenue and the related costs for this transaction after payment has been received and the right of return periods are elapsed or once an estimate for returns can be established, as appropriate. At September 30, 2017, one distributor accounted for approximately 29.6% and a second distributor accounted for approximately 13.3% of the Company’s accounts receivable. One healthcare provider accounted for approximately 14.9 % and a second healthcare provider accounted for approximately 14.0 % and a third healthcare provider accounted for approximately 13.7% of the Company’s accounts receivables. 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. No other customer accounted for greater than 10% of the Company’s accounts receivable at September 30, 2017 and December 31, 2016. 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. During the three and nine months ended September 30, 2017 the company wrote off approximately $0 and $22,000 in accounts receivable, respectively, against the allowance for doubtful accounts. During the three and nine months ended September 30, 2016 the Company wrote off approximately $0 and $48,000 respectively, in accounts receivable against the allowance for doubtful accounts. 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 September 30, 2017 and December 31, 2016 (in thousands): September 30, 2017 December 31, 2016 Accounts receivable $ 85 $ 68 Less: allowance for doubtful accounts (42 ) (16 ) Less: allowance for sales returns (2 ) (22 ) Total $ 41 $ 30 The following is a roll forward of the Company’s allowance for doubtful accounts (in thousands): Nine Months Ended September 30, 2017 2016 Beginning balance $ 16 $ 59 Net charges to expenses 48 5 Utilization of allowances (22 ) (48 ) Ending balance $ 42 $ 16

Inventory

Inventory	9 Months Ended
	Sep. 30, 2017
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 is challenging. To the extent the Company’s demand forecast is less than its inventory on-hand, The Company has reserves totaling approximately $4.5 million and $5.0 million for excess, expired and obsolete inventory as of September 30, 2017 and December 31, 2016, respectively. The Company continues to review any evidence that may indicate that the utility of additional amounts of inventory, as it was expected to be used, will be less than cost. Inventory, net, at September 30, 2017 and December 31, 2016 was as follows (in thousands): September 30, 2017 December 31, 2016 Finished goods $ — $ 213 Work-in-process — — Raw materials — — Total $ — $ 213 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, approximately 5% of the finished goods inventory was at customer locations pursuant to these arrangements.

Property and Equipment

Property and Equipment	9 Months Ended
	Sep. 30, 2017
Property and Equipment	8. Property and Equipment Property and equipment consisted of the following (in thousands): September 30, 2017 December 31, 2016 Laboratory equipment and manufacturing equipment $ 591 $ 591 Computer equipment and software 1,179 1,174 Office furniture and equipment 183 183 Leasehold improvements 21 21 1,974 1,969 Less accumulated depreciation and amortization (1,866 ) (1,820 ) Total $ 108 $ 149 Depreciation and amortization expense of property and equipment, including equipment recorded under capital leases, and the charge for impaired property and equipment totaled approximately $11,000 and $16,000 for the three months ended September 30, 2017 and 2016, respectively and $46,000 and $0.3 million for the nine months ended September 30, 2017 and 2016, respectively. The Company recognized a charge for the impaired property and equipment related to abandonment of its former facility in Lexington, MA, for the nine months ended September 30, 2017 and September 30, 2016 (in thousands). Nine Months Ended September 30, 2017 2016 Cost of revenue $ — $ 24 Research and development — 79 General and administrative — 42 Total $ — $ 145 The Company did not recognize a charge for impaired property and equipment for the three months ended September 30, 2017 and September 30, 2016.

Accrued Expenses

Accrued Expenses	9 Months Ended
	Sep. 30, 2017
Accrued Expenses	9. Accrued Expenses Accrued expenses consisted of the following (in thousands): September 30, 2017 December 31, 2016 Payroll and related liabilities $ 386 $ 430 Professional fees 498 617 Interest payable 73 — Other 171 113 Total $ 1,128 $ 1,160

Short Term Notes Payable

Short Term Notes Payable	9 Months Ended
	Sep. 30, 2017
Short Term Notes Payable	10. Short Term Notes Payable In September 2016, 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%. There was no outstanding balance at September 30, 2017 and $214,466 was outstanding at December 31, 2016, and amounts are included in other current liabilities in the accompanying balance sheet.

Long-Term Debt

Long-Term Debt	9 Months Ended
	Sep. 30, 2017
Long-Term Debt	11. Long-Term Debt On June 15, 2017, the Company entered into a Note Purchase Agreement by and between the Company, as borrower, and Crystal Amber Fund Limited, as purchaser (the “Purchaser”). Pursuant to the Note Purchase Agreement, the Company issued and sold to the Purchaser a Senior Secured Convertible Promissory Note in an aggregate original principal amount of $5.0 million (the “Note”). The Purchaser is a related party and is the Company’s largest shareholder. The Note accrues interest at a rate equal to 5% per annum, compounded annually, other than during the continuance of an event of default, when the Note accrues interest at a rate of 8% per annum. The entire outstanding principal balance and all unpaid accrued interest thereon is due on the maturity date, December 31, 2018. The Note is secured by a first priority security interest in substantially all personal property assets of the Company, including intellectual property. Subject to the receipt of any required shareholder approval (as described in the Listing Rules of the Australian Securities Exchange (the “ASX”), the entire outstanding principal balance under the Note and all unpaid accrued interest thereon is convertible into CHESS Depositary Interests (“CDIs”), each representing 1/50th of a share of the Company’s common stock, (i) at the option of the Purchaser at a conversion price calculated based on the five-day In the event that the Borrower issues additional CDIs in a subsequent equity financing at a price per CDI that is less than the then-effective optional conversion price (based on the five-day 30-day In addition, upon a change of control of the Company (other than a change of control resulting from a Qualified Financing) in which the Company’s stockholders receive cash consideration, the Company is obligated to prepay all accrued and unpaid interest plus 110% of the remaining outstanding unconverted principal balance. Other than as described above, the Company may not prepay the Note without the consent of the Purchaser. The Note Purchase Agreement contains customary events of default including a failure to perform obligations under the Note Purchase Agreement, bankruptcy, a decision by the board of directors of the Company to wind up the Company, or if the Company otherwise ceases to carry on its ongoing business operations. If a default occurs and is not cured within the applicable cure period or is not waived, any outstanding obligations under the Note may be accelerated. The Note Purchase Agreement and related Note documents also contain additional representations and warranties, covenants and conditions, in each case customary for transactions of this type. The company has recorded the $5.0 million note net of its debt issuance costs and will amortize this cost over life of the note. For the three and nine months ended September 30, 2017, the Company recognized interest expense of $63,000 and $73,000 and amortization of the issuance costs of $18,500 and $24,700 related to the Senior Secured Convertible Promissory Note.

Commitments and Contingencies

Commitments and Contingencies	9 Months Ended
	Sep. 30, 2017
Commitments and Contingencies	12. Commitments and Contingencies Lease Commitments In June 2013, the Company entered into a noncancelable agreement to sublease 33,339 square feet of office, laboratory and manufacturing space in Lexington, Massachusetts. The sublease commenced in June 2013 and expired in December 2016. The rent expense, inclusive of the escalating rent payments and free rent period, was recognized on a straight-line basis over the term of the sublease agreement. In accordance with the terms of the sublease agreement, the Company maintained a secured letter of credit of approximately 0.2 million securing its obligations under the sublease agreement. In July 2016, the Company left this facility prior to the expiration of the lease. In June 2016, the Company entered into a noncancelable agreement to lease approximately 4,200 square feet of office and laboratory space in Boston, Massachusetts. The lease commenced in June 2016 and expires in April 2018. Rent during the term is $11,900 per month. Rent expense on noncancelable operating leases was approximately $36,000 and $0.3 million for the three months ended September 30, 2017 and 2016, respectively and $107,000 and $0.5 million for the nine months ended September 30, 2017 and 2016, respectively. Future minimum lease payments under all noncancelable lease arrangements at September 30, 2017, are as follows (in thousands): Year Ending December 31, 2017 $ 36 2018 48 Total $ 84

Stockholders' Equity (Deficit)

Stockholders' Equity (Deficit)	9 Months Ended
	Sep. 30, 2017
Stockholders' Equity (Deficit)	13. Stockholders’ Equity (Deficit) On May 22, 2017, the Stockholders of the Company approved an increase of its authorized shares of Common Stock from 13,000,000 to 50,000,000 and to eliminate Class B shares of Common Stock of the Company. As of September 30, 2017, the authorized capital stock of the Company consists of 50,500,000 shares, of which 50,000,000 shares are designated as Common Stock and 500,000 shares are designated as Preferred Stock.

Stock Plans

Stock Plans	9 Months Ended
	Sep. 30, 2017
Stock Plans	14. Stock Plans The Company has two stock-based compensation plans under which incentive stock options, nonqualified stock options, restricted and unrestricted stock awards, and other stock-based awards are available for grant to employees, directors and consultants of the Company. At September 30, 2017, there were 1,269,721 shares available for future grant under both plans. The 2011 Employee, Director and Consultant Equity Incentive Plan (the “2011 Plan”, together with the 2003 Omnibus Stock Plan, the “Plans”) allows for an annual increase in the number of shares available for issue under the 2011 Plan commencing on the first day of each fiscal year during the period beginning in fiscal year 2012 and ending in fiscal year 2020. The annual increase in the number of shares shall be equal to the lowest of: a. 500,000 shares; b. 4% of the number of common shares outstanding as of such date; and c. an amount determined by the Board of Directors or the Company’s compensation committee. Accordingly, in the first quarter of fiscal 2017, 436,314 options available for future grant were added to the 2011 Plan. Stock-Based Compensation Stock-based compensation is reflected in the condensed consolidated statements of operations and comprehensive loss as follows for the three and nine months ended September 30, 2017 and 2016 (in thousands): Three Months Ended Nine Months Ended September 30, September 30, 2017 2016 2017 2016 Cost of revenue $ — $ — $ — $ 34 Research and development 11 6 24 49 Sales and marketing 38 35 67 130 General and administrative 32 59 71 396 $ 81 $ 100 $ 162 $ 609 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. 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. Such costs are then recognized over the requisite service period of the awards on a straight-line basis. Determining the fair value of stock-based awards using the Black-Scholes option-pricing model requires the use of highly subjective assumptions, including the expected term of the award and expected stock price volatility. The weighted-average assumptions used to estimate the fair value of employee stock options using the Black-Scholes option-pricing model were as follows for the three and nine months ended September 30, 2017 and 2016: Three Months Ended Nine Months Ended 2017 2016 2017 2016 Expected volatility 88.2 % 73.4 % 87.8 % 71.0 % Expected term (in years) 6.05 6.05 6.05 6.05 Risk-free interest rate 2.05 % 1.36 % 2.05 % 1.27 % Expected dividend yield — % — % — % — % Stock Options The following table summarizes share-based activity under the Company’s stock option plans for the nine months ended September 30, 2017: Shares of Weighted- Average Exercise Price Weighted- Average Contractual Life Aggregate (in years) (in thousands) Outstanding at December 31, 2016 748,571 $ 8.67 8.38 $ — Granted 408,635 $ 1.07 Exercised — Cancelled (55,769 ) $ 33.81 Outstanding at September 30, 2017 1,101,437 $ 4.58 8.37 $ 913 Vested or expected to vest at September 30, 2017 1,101,437 $ 4.58 8.37 $ 913 Exercisable at September 30, 2017 342,447 $ 11.98 6.97 $ 218 As of September 30, 2017, there was approximately $0.5 million of unrecognized stock-based compensation 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 2.8 years. The intrinsic value in the table above represents the difference between the fair value of the Company’s common stock on the measurement date and the exercise price of the stock option. 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. Restricted Stock Units Each restricted stock unit (“RSU”) represents a contingent right to receive one share of the Company’s common stock. The RSUs outstanding at September 30, 2017 vest upon the achievement of certain product revenue, regulatory and reimbursement milestones. There is no consideration payable on the vesting of RSUs issued under the Plans. Upon vesting, the RSUs are exercised automatically and settled in shares of the Company’s common stock. The following table summarizes information related to the unvested RSUs and activity during the nine months ended September 30, Number of Weighted- Average Contractual Life Aggregate (in years) (in thousands) Outstanding at December 31, 2016 403,501 9.11 $ 365 Granted — Vested — Cancelled — Outstanding at September 30, 2017 403,501 8.37 $ 791 The aggregate intrinsic value at September 30, 2017 and December 31, 2016 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 At September 30, 2017, all of the RSUs outstanding are subject to performance-based vesting criteria as described in the applicable award agreement. For these awards, 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. At September 30, 2017 and 2016, no RSUs that have performance-based vesting criteria are considered probable of achievement. For the three and nine months ended September 30, 2017 and 2016, the Company did not recognize any stock-based compensation for RSUs subject to performance-based vesting criteria. As of September 30, 2017, there remains approximately $0.3 million of unrecognized stock-based compensation.

Segment Reporting

Segment Reporting	9 Months Ended
	Sep. 30, 2017
Segment Reporting	15. 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 and the Asia Pacific region and sales are attributed to a country or region based on the location of the customer to whom the products are sold. At September 30, 2017, long-lived assets, comprised of property and equipment, of approximately $0.1 million are all held in the U.S. Product sales by geographic location for the three and nine months ended September 30, 2017 and 2016 are listed in the table below (in thousands). Three Months Ended Nine Months Ended 2017 2016 2017 2016 Europe $ 23 $ 26 $ 155 $ 232 Middle East — 72 18 159 Asia Pacific — 38 — 86 Total Revenue $ 23 $ 136 $ 173 $ 477 Germany comprised a significant component of revenue in Europe for the three and nine months ended September 30, 2017. Germany and the United Kingdom comprised a significant component of revenue in Europe for the three and nine months ended September 30, 2016. Major Customers For the three months ended September 30, 2017 we recognized as revenue a reversal of prior year rebate accruals of approximately $27,000 originally granted to health care providers which was deemed to no longer be required, in addition we deferred a previously recognized sale. For the three months ended September 30, 2016, one health care provider accounted for approximately 18% of the Company’s revenue, and one distributor accounted for approximately 34% of the company’s revenue. No other customer accounted for greater than 10% of the Company’s revenue during the three months ended September 30, 2017 and 2016. For the nine months ended September 30, 2017 one health care provider accounted for 20.7% of the company’s revenue. A second health care provider accounted for 15.3% of the company’s revenue. For the nine months ended September 30, 2016, one health care provider accounted for approximately 12 % of the Company’s revenue and one distributor accounted for approximately 29 %. No other customer accounted for greater than 10% of the Company’s revenue during the nine months ended September 30, 2017 and 2016.

Subsequent Event

Subsequent Event	9 Months Ended
	Sep. 30, 2017
Subsequent Event	16. Subsequent Event The Company evaluates events occurring after the date of its condensed consolidated balance sheet for potential recognition or disclosure in its condensed consolidated financial statements. As disclosed in the Company’s Form 8-K

Summary of Significant Accoun22

Summary of Significant Accounting Policies and Basis of Presentation (Policies)	9 Months Ended
	Sep. 30, 2017
Principles of Consolidation	Principles of Consolidation The accompanying condensed consolidated financial statements include the accounts of GI Dynamics, Inc. and its wholly owned subsidiaries. All intercompany transactions and balances are eliminated in consolidation.
Use of Estimates	Use of Estimates The preparation of consolidated financial statements in accordance with GAAP requires the Company’s management to make estimates and judgments that may affect the reported amounts of assets, liabilities, revenues and expenses, and the related disclosure of contingent assets and liabilities. On an ongoing basis, the Company’s management evaluates its estimates, including those related to revenue recognition, allowance for doubtful accounts, inventory valuation including reserves for excess and obsolete inventory, impairment of long-lived assets, income taxes including the valuation allowance for deferred tax assets, research and development, contingencies, stock-based compensation, going concern considerations, and warrant valuations. The Company bases its estimates on historical experience and on various other assumptions that are believed to be reasonable, the results of which form the basis for making judgments about the carrying values of assets and liabilities. Actual results may differ from these estimates under different assumptions or conditions. Changes in estimates are reflected in reported results in the period in which they become known.
Guarantees	Guarantees The Company has identified the guarantees described below as disclosable, in accordance with ASC 460, Guarantees As permitted under Delaware law, the Company indemnifies its officers and directors for certain events or occurrences while the officer or director is, or was, serving at the Company’s request in such capacity. The maximum potential amount of future payments the Company could be required to make is unlimited; however, the Company has directors’ and officers’ insurance coverage that should limit its exposure and enable it to recover a portion of any future amounts paid. The Company is a party to a number of agreements entered into in the ordinary course of business that contain typical provisions that obligate the Company to indemnify the other parties to such agreements upon the occurrence of certain events. Such indemnification obligations are usually in effect from the date of execution of the applicable agreement for a period equal to the applicable statute of limitations. The aggregate maximum potential future liability of the Company under such indemnification provisions is uncertain. As of September 30, 2017, and December 31, 2016, the Company had not experienced any material losses related to these indemnification obligations, and no material claims with respect thereto were outstanding. The Company does not expect significant claims related to these indemnification obligations and, consequently, concluded that the fair value of these obligations is negligible. As a result, no related reserves have been established.
Restricted Cash	Restricted Cash Restricted balances of cash, which are shown under current assets as restricted cash, relate to funds set aside to secure amounts outstanding on company supported credit card balances.
New Accounting Pronouncements	New Accounting Pronouncements From time to time, new accounting pronouncements are issued by the Financial Accounting Standards Board (“FASB”) or other standard setting bodies that are adopted by the Company as of the specified effective date. Unless otherwise discussed, the Company believes that the effect of recently issued standards that are not yet effective will not have a material effect on its consolidated financial position or results of operations upon adoption. In 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 No. 2016-09 No. 2016-09 In August, 2016, the FASB issued ASU No. 2016-15—Classification 2016-15 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 or restricted cash equivalents. Therefore, amounts generally described as restricted cash and restricted cash equivalents should be included with cash and cash equivalents when reconciling the beginning-of-period end-of-period 20116-18

Net Loss per Common Share (Tabl

Net Loss per Common Share (Tables)	9 Months Ended
	Sep. 30, 2017
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 September 30, 2017 and 2016, as they would be anti-dilutive: Three Months Ended Nine Months Ended 2017 2016 2017 2016 Warrants to purchase common stock 28,532 28,532 28,532 28,532 Options to purchase common stock and other stock-based awards 1,504,938 1,165,427 1,504,938 1,165,427 Total 1,533,470 1,193,959 1,533,470 1,193,959

Fair Value of Financial Instr24

Fair Value of Financial Instruments (Tables)	9 Months Ended
	Sep. 30, 2017
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 Quoted Prices in Significant Other Significant Description September 30, 2017 (Level 1) (Level 2) (Level 3) Assets Money market funds (included in cash and cash equivalents) $ 5,510 $ 5,510 $ — $ — Total assets $ 5,510 $ 5,510 $ — $ — Liabilities Warrants to purchase common stock $ 50 $ — $ — $ 50 Total liabilities $ 50 $ — $ — $ 50 Fair Value Measurements at Reporting Date Using Quoted Prices in Significant Other Significant Unobservable Inputs Description December 31, 2016 (Level 1) (Level 2) (Level 3) Assets Money market funds (included in cash and cash equivalents) $ 6,344 $ 6,344 $ — $ — Total assets $ 6,344 $ 6,344 $ — $ — Liabilities Warrants to purchase common stock $ 17 $ — $ — $ 17 Total liabilities $ 17 $ — $ — $ 17
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 Consultant Warrant as of September 30, 2017, and December 31, 2016 were as follows: September 30, 2017 December 31, 2016 Exercise price $ 0.64 $ 0.64 Fair value of common stock $ 1.96 $ 0.59 Expected volatility 135.96 % 90.5 % Expected term (in years) 3.59 4.34 Risk-free interest rate 1.71 % 1.78 % 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, 2016 $ 17 Issuance of Consultant Warrant — Increase in fair value of Warrants upon remeasurement included in other income (expense) 33 Balance at September 30, 2017 $ 50

Concentrations of Credit Risk25

Concentrations of Credit Risk, Accounts Receivable and Related Valuation Accounts (Tables)	9 Months Ended
	Sep. 30, 2017
Components of Company's Accounts Receivable	The following table shows the components of the Company’s accounts receivable at September 30, 2017 and December 31, 2016 (in thousands): September 30, 2017 December 31, 2016 Accounts receivable $ 85 $ 68 Less: allowance for doubtful accounts (42 ) (16 ) Less: allowance for sales returns (2 ) (22 ) Total $ 41 $ 30
Roll Forward of Allowance for Doubtful Accounts	The following is a roll forward of the Company’s allowance for doubtful accounts (in thousands): Nine Months Ended September 30, 2017 2016 Beginning balance $ 16 $ 59 Net charges to expenses 48 5 Utilization of allowances (22 ) (48 ) Ending balance $ 42 $ 16

Inventory (Tables)

Inventory (Tables)	9 Months Ended
	Sep. 30, 2017
Inventory, Net of Reserves	Inventory, net, at September 30, 2017 and December 31, 2016 was as follows (in thousands): September 30, 2017 December 31, 2016 Finished goods $ — $ 213 Work-in-process — — Raw materials — — Total $ — $ 213

Property and Equipment (Tables)

Property and Equipment (Tables)	9 Months Ended
	Sep. 30, 2017
Property and Equipment	Property and equipment consisted of the following (in thousands): September 30, 2017 December 31, 2016 Laboratory equipment and manufacturing equipment $ 591 $ 591 Computer equipment and software 1,179 1,174 Office furniture and equipment 183 183 Leasehold improvements 21 21 1,974 1,969 Less accumulated depreciation and amortization (1,866 ) (1,820 ) Total $ 108 $ 149
Recognized Charge for Impaired Property and Equipment	The Company recognized a charge for the impaired property and equipment related to abandonment of its former facility in Lexington, MA, for the nine months ended September 30, 2017 and September 30, 2016 (in thousands). Nine Months Ended September 30, 2017 2016 Cost of revenue $ — $ 24 Research and development — 79 General and administrative — 42 Total $ — $ 145

Accrued Expenses (Tables)

Accrued Expenses (Tables)	9 Months Ended
	Sep. 30, 2017
Accrued Expenses	Accrued expenses consisted of the following (in thousands): September 30, 2017 December 31, 2016 Payroll and related liabilities $ 386 $ 430 Professional fees 498 617 Interest payable 73 — Other 171 113 Total $ 1,128 $ 1,160

Commitments and Contingencies (

Commitments and Contingencies (Tables)	9 Months Ended
	Sep. 30, 2017
Future Minimum Lease Payments Under All Non-cancelable Lease Arrangements	Future minimum lease payments under all noncancelable lease arrangements at September 30, 2017, are as follows (in thousands): Year Ending December 31, 2017 $ 36 2018 48 Total $ 84

Stock Plans (Tables)

Stock Plans (Tables)	9 Months Ended
	Sep. 30, 2017
Stock-Based Compensation	Stock-based compensation is reflected in the condensed consolidated statements of operations and comprehensive loss as follows for the three and nine months ended September 30, 2017 and 2016 (in thousands): Three Months Ended Nine Months Ended September 30, September 30, 2017 2016 2017 2016 Cost of revenue $ — $ — $ — $ 34 Research and development 11 6 24 49 Sales and marketing 38 35 67 130 General and administrative 32 59 71 396 $ 81 $ 100 $ 162 $ 609
Weighted-average Assumptions used to Estimate Fair Value of Stock Options	The weighted-average assumptions used to estimate the fair value of employee stock options using the Black-Scholes option-pricing model were as follows for the three and nine months ended September 30, 2017 and 2016: Three Months Ended Nine Months Ended 2017 2016 2017 2016 Expected volatility 88.2 % 73.4 % 87.8 % 71.0 % Expected term (in years) 6.05 6.05 6.05 6.05 Risk-free interest rate 2.05 % 1.36 % 2.05 % 1.27 % Expected dividend yield — % — % — % — %
Share-Based Activity	The following table summarizes share-based activity under the Company’s stock option plans for the nine months ended September 30, 2017: Shares of Weighted- Average Exercise Price Weighted- Average Contractual Life Aggregate (in years) (in thousands) Outstanding at December 31, 2016 748,571 $ 8.67 8.38 $ — Granted 408,635 $ 1.07 Exercised — Cancelled (55,769 ) $ 33.81 Outstanding at September 30, 2017 1,101,437 $ 4.58 8.37 $ 913 Vested or expected to vest at September 30, 2017 1,101,437 $ 4.58 8.37 $ 913 Exercisable at September 30, 2017 342,447 $ 11.98 6.97 $ 218
Restricted Stock Units and Activity	The following table summarizes information related to the unvested RSUs and activity during the nine months ended September 30, Number of Weighted- Average Contractual Life Aggregate (in years) (in thousands) Outstanding at December 31, 2016 403,501 9.11 $ 365 Granted — Vested — Cancelled — Outstanding at September 30, 2017 403,501 8.37 $ 791

Segment Reporting (Tables)

Segment Reporting (Tables)	9 Months Ended
	Sep. 30, 2017
Product Sales by Geographic Location	Product sales by geographic location for the three and nine months ended September 30, 2017 and 2016 are listed in the table below (in thousands). Three Months Ended Nine Months Ended 2017 2016 2017 2016 Europe $ 23 $ 26 $ 155 $ 232 Middle East — 72 18 159 Asia Pacific — 38 — 86 Total Revenue $ 23 $ 136 $ 173 $ 477

Nature of Business - Additional

Nature of Business - Additional Information (Detail) $ / shares in Units, $ in Thousands	Dec. 20, 2016USD ($)shares	Aug. 21, 2015	Jun. 30, 2017USD ($)	Jan. 31, 2017USD ($)$ / sharesshares	Jun. 30, 2016USD ($)	Sep. 30, 2016USD ($)	Sep. 30, 2017USD ($)SegmentPatientSite	Sep. 30, 2016USD ($)	Jun. 15, 2017USD ($)	Dec. 31, 2016USD ($)
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
Number of sites consider for trial of EndoBarrier Therapy | Site							25
Percentage of reducing headcount		46.00%
Non-recurring charges						$ 1,100
Private placement amount received	$ 1,000
Common stock issued, price per share | $ / shares				$ 0.83
Proceeds from issuance of common stock				$ 200			$ 198	$ 307
Net proceeds through sales of equity							238,000
Accumulated deficit							(256,489)			$ (248,203)
Cash, cash equivalents and restricted cash							$ 5,500
Employee Severance
Nature Of Operations [Line Items]
Non-recurring charges						600
Facility Closing
Nature Of Operations [Line Items]
Non-recurring charges						$ 100
CHESS Depositary Interests
Nature Of Operations [Line Items]
Stock issued, shares | shares	69,865,000			12,481,600
Senior Secured Convertible Promissory Notes
Nature Of Operations [Line Items]
Debt principal amount			$ 5,000						$ 5,000
Interest rate during period			5.00%				5.00%
Maturity Date			Dec. 31, 2018				Dec. 31, 2018
Restructuring Charges
Nature Of Operations [Line Items]
Non-recurring charges					$ 400
Common stock
Nature Of Operations [Line Items]
Stock issued, shares | shares	1,397,300			249,632

Summary of Significant Accoun33

Summary of Significant Accounting Policies and Basis of Presentation - Additional Information (Detail) $ in Thousands	Sep. 30, 2017USD ($)
Summary Of Significant Accounting Policies [Line Items]
Accumulated deficit	$ 28

Potentially Dilutive Securities

Potentially Dilutive Securities Excluded from Computation of Diluted Weighted Average Shares (Detail) - shares	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share	1,533,470	1,193,959	1,533,470	1,193,959
Warrant
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share	28,532	28,532	28,532	28,532
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	1,504,938	1,165,427	1,504,938	1,165,427

Common Stock Warrants - Additio

Common Stock Warrants - Additional Information (Detail)	May 04, 2016$ / sharesshares	Sep. 30, 2011AUD / sharesshares	Sep. 30, 2017shares
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. 1, 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	Sep. 30, 2017	Dec. 31, 2016
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Warrant liability	$ 50	$ 17
Fair Value, Measurements, Recurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets	5,510	6,344
Warrant liability	50	17
Total liabilities	50	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	5,510	6,344
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	5,510	6,344
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	5,510	6,344
Significant Unobservable Inputs (Level 3) | Fair Value, Measurements, Recurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Warrant liability	50	17
Total liabilities	$ 50	$ 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 - $ / shares	9 Months Ended	12 Months Ended
	Sep. 30, 2017	Dec. 31, 2016
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Exercise price	$ 0.64	$ 0.64
Fair value of common stock	$ 1.96	$ 0.59
Expected volatility	135.96%	90.50%
Expected term	3 years 7 months 2 days	4 years 4 months 2 days
Risk-free interest rate	1.71%	1.78%
Expected dividend yield	0.00%	0.00%

Rollforward of Fair Value of Wa

Rollforward of Fair Value of Warrants (Detail) - Warrant $ in Thousands	9 Months Ended
	Sep. 30, 2017USD ($)
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Beginning balance	$ 17
Increase in fair value of Warrants upon remeasurement included in other income (expense)	33
Ending balance	$ 50

Concentrations of Credit Risk39

Concentrations of Credit Risk, Accounts Receivable and Related Valuation Accounts - Additional Information (Detail)	1 Months Ended	3 Months Ended		9 Months Ended		12 Months Ended
	May 31, 2017USD ($)	Sep. 30, 2017USD ($)	Sep. 30, 2016USD ($)	Sep. 30, 2017USD ($)Customer	Sep. 30, 2016USD ($)	Dec. 31, 2016Customer
Accounts, Notes, Loans and Financing Receivable [Line Items]
Revenue		$ 23,000	$ 136,000	$ 173,000	$ 477,000
Cost of sales		15,000	138,000	223,000	1,128,000
Adjustment to account receivable				11,000	66,000
Write-offs of uncollectible accounts receivable		0	$ 0	22,000	$ 48,000
Sales Arrangement
Accounts, Notes, Loans and Financing Receivable [Line Items]
Sales arrangement entered	$ 517,000
Revenue		0		0
Cost of sales		0		0
Payments received from distributors				0
Adjustment to account receivable				559,000
Sales Arrangement | Foreign Currency
Accounts, Notes, Loans and Financing Receivable [Line Items]
Adjustment to account receivable				42,000
Sales Arrangement | Other Current Assets
Accounts, Notes, Loans and Financing Receivable [Line Items]
Deferred product costs		$ 27,000		$ 27,000
Accounts Receivable | Credit Concentration Risk | Distributor One
Accounts, Notes, Loans and Financing Receivable [Line Items]
Number of customers | Customer				1
Concentration risk percentage				29.60%
Accounts Receivable | Credit Concentration Risk | Distributor Two
Accounts, Notes, Loans and Financing Receivable [Line Items]
Number of customers | Customer				1
Concentration risk percentage				13.30%
Accounts Receivable | Credit Concentration Risk | Health Care Provider One
Accounts, Notes, Loans and Financing Receivable [Line Items]
Number of customers | Customer				1		1
Concentration risk percentage				14.90%		43.00%
Accounts Receivable | Credit Concentration Risk | Health Care Provider Two
Accounts, Notes, Loans and Financing Receivable [Line Items]
Number of customers | Customer				1		1
Concentration risk percentage				14.00%		22.00%
Accounts Receivable | Credit Concentration Risk | Health Care Provider Three
Accounts, Notes, Loans and Financing Receivable [Line Items]
Number of customers | Customer				1
Concentration risk percentage				13.70%

Components of Company's Account

Components of Company's Accounts Receivable (Detail) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Valuation and Qualifying Accounts Disclosure [Line Items]
Accounts receivable	$ 85	$ 68
Less: allowance for doubtful accounts	(42)	(16)
Less: allowance for sales returns	(2)	(22)
Total	$ 41	$ 30

Roll Forward of Allowance for D

Roll Forward of Allowance for Doubtful Accounts (Detail) - Allowance for Doubtful Accounts - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016
Valuation and Qualifying Accounts Disclosure [Line Items]
Beginning balance	$ 16	$ 59
Net charges to expenses	48	5
Utilization of allowances	(22)	(48)
Ending balance	$ 42	$ 16

Inventory - Additional Informat

Inventory - Additional Information (Detail) - USD ($) $ in Millions	Sep. 30, 2017	Dec. 31, 2016
Inventory [Line Items]
Inventory reserves for excess, expired and obsolete	$ 4.5	$ 5
Percentage of consignment inventories		5.00%

Inventory, Net of Reserves (Det

Inventory, Net of Reserves (Detail) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Inventory [Line Items]
Finished goods		$ 213
Work-in-process	$ 0	0
Raw materials	$ 0	0
Total		$ 213

Property and Equipment (Detail)

Property and Equipment (Detail) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Property, Plant and Equipment [Line Items]
Property Plant and equipment gross	$ 1,974	$ 1,969
Less accumulated depreciation and amortization	(1,866)	(1,820)
Total	108	149
Laboratory and manufacturing equipment
Property, Plant and Equipment [Line Items]
Property Plant and equipment gross	591	591
Computer equipment and software
Property, Plant and Equipment [Line Items]
Property Plant and equipment gross	1,179	1,174
Office furniture and equipment
Property, Plant and Equipment [Line Items]
Property Plant and equipment gross	183	183
Leasehold Improvements
Property, Plant and Equipment [Line Items]
Property Plant and equipment gross	$ 21	$ 21

Property and Equipment - Additi

Property and Equipment - Additional Information (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Property, Plant and Equipment [Line Items]
Depreciation and amortization expense including equipment recorded under capital leases	$ 11	$ 16	$ 46	$ 300

Recognized Charge for Impaired

Recognized Charge for Impaired Property and Equipment (Detail) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016
Impaired Long-Lived Assets Held and Used [Line Items]
Impairment loss on fixed assets	$ 0	$ 145
Cost of revenue
Impaired Long-Lived Assets Held and Used [Line Items]
Impairment loss on fixed assets		24
Research and Development Expense
Impaired Long-Lived Assets Held and Used [Line Items]
Impairment loss on fixed assets		79
General and Administrative Expense
Impaired Long-Lived Assets Held and Used [Line Items]
Impairment loss on fixed assets		$ 42

Accrued Expenses (Detail)

Accrued Expenses (Detail) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Accrued Liabilities [Line Items]
Payroll and related liabilities	$ 386	$ 430
Professional fees	498	617
Interest payable	73
Other	171	113
Total	$ 1,128	$ 1,160

Short Term Notes Payable - Addi

Short Term Notes Payable - Additional Information (Detail) - First Insurance Funding Corp - Short Term Loan Agreement	1 Months Ended
	Sep. 30, 2016USD ($)Installment	Sep. 30, 2017USD ($)	Dec. 31, 2016USD ($)
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%
Short term loan payable		$ 0	$ 214,466

Long-Term Debt - Additional inf

Long-Term Debt - Additional information (Detail) - USD ($)	1 Months Ended	3 Months Ended	9 Months Ended
	Jun. 30, 2017	Sep. 30, 2017	Sep. 30, 2017	Jun. 15, 2017
Debt Instrument [Line Items]
Amortization of the issuance costs			$ 25,000
Senior Secured Convertible Promissory Notes
Debt Instrument [Line Items]
Debt principal amount	$ 5,000,000			$ 5,000,000
Interest rate during period	5.00%		5.00%
Interest rate during default		8.00%	8.00%
Maturity Date	Dec. 31, 2018		Dec. 31, 2018
Interest expense		$ 63,000	$ 73,000
Amortization of the issuance costs		$ 18,500	24,700
Senior Secured Convertible Promissory Notes | Chess Deposit Interest
Debt Instrument [Line Items]
Qualified financing least amount raised			$ 10,000,000
Percentage of remaining outstanding unconverted principal balance payment obligation		110.00%	110.00%

Commitments and Contingencies -

Commitments and Contingencies - Additional Information (Detail)	1 Months Ended	3 Months Ended		9 Months Ended
	Jun. 30, 2016USD ($)ft²	Sep. 30, 2017USD ($)	Sep. 30, 2016USD ($)	Sep. 30, 2017USD ($)	Sep. 30, 2016USD ($)	Jun. 30, 2013USD ($)ft²
Loss Contingencies [Line Items]
Rentable area of leased premises | ft²	4,200					33,339
Letter of credit secured under sublease agreement						$ 200,000
Rent expense	$ 11,900	$ 36,000	$ 300,000	$ 107,000	$ 500,000

Future Minimum Lease Payments U

Future Minimum Lease Payments Under All Non-cancelable Lease Arrangements (Detail) $ in Thousands	Sep. 30, 2017USD ($)
Operating Leased Assets [Line Items]
2,017	$ 36
2,018	48
Total	$ 84

Stockholders' Equity (Deficit)

Stockholders' Equity (Deficit) - Additional Information (Detail) - shares	Sep. 30, 2017	May 22, 2017	Dec. 31, 2016
Class of Stock [Line Items]
Common stock, shares authorized	50,000,000	50,000,000	13,000,000
Capital stock, shares authorized	50,500,000
Preferred stock, shares authorized	500,000		500,000

Stock Plans - Additional Inform

Stock Plans - Additional Information (Detail)	3 Months Ended		9 Months Ended
	Sep. 30, 2017USD ($)CompensationPlanshares	Sep. 30, 2016USD ($)	Sep. 30, 2017USD ($)CompensationPlanshares	Sep. 30, 2016USD ($)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of stock-based compensation plans | CompensationPlan	2		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			436,314
Stock options, vesting period			4 years
Stock options, expire period			10 years
Unrecognized stock-based compensation	$ 500,000		$ 500,000
Stock-based compensation expense	$ 81,000	$ 100,000	$ 162,000	$ 609,000
Stock Option
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Recognized weighted-average period years			2 years 9 months 18 days
Restricted Stock Units (RSUs)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares of common stock to be received, per restricted stock unit	1		1
Stock-based compensation expense	$ 0	$ 0	$ 0	$ 0
Unrecognized stock based compensation	$ 300,000		$ 300,000
Stock Incentive Plan 2003
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares available for future grants | shares	1,269,721		1,269,721

Stock-Based compensation Reflec

Stock-Based compensation Reflected in Consolidated Statements of Operations and Comprehensive Loss (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation expense	$ 81	$ 100	$ 162	$ 609
Cost of revenue
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation expense				34
Research and Development Expense
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation expense	11	6	24	49
Sales and marketing
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation expense	38	35	67	130
General and Administrative Expense
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation expense	$ 32	$ 59	$ 71	$ 396

Weighted-average Assumptions us

Weighted-average Assumptions used to Estimate Fair Value of Stock Options (Detail)	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected volatility	88.20%	73.40%	87.80%	71.00%
Expected term (in years)	6 years 18 days	6 years 18 days	6 years 18 days	6 years 18 days
Risk-free interest rate	2.05%	1.36%	2.05%	1.27%
Expected dividend yield	0.00%	0.00%	0.00%	0.00%

Share-Based Activity (Detail)

Share-Based Activity (Detail) - USD ($) $ / shares in Units, $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2017	Dec. 31, 2016
Options
Outstanding, beginning balance	748,571
Granted	408,635
Exercised	0
Cancelled	(55,769)
Outstanding, ending balance	1,101,437	748,571
Vested or expected to vest at September 30, 2017	1,101,437
Exercisable at September 30, 2017	342,447
Weighted Average Exercise Price
Outstanding, beginning balance	$ 8.67
Granted	1.07
Exercised	0
Cancelled	33.81
Outstanding, ending balance	4.58	$ 8.67
Vested or expected to vest at September 30, 2017	4.58
Exercisable at September 30, 2017	$ 11.98
Weighted Average Contractual Life (in Years)
Outstanding at end of period	8 years 4 months 13 days	8 years 4 months 17 days
Vested or expected to vest at September 30, 2017	8 years 4 months 13 days
Exercisable at September 30, 2017	6 years 11 months 19 days
Aggregate Intrinsic Value
Outstanding at end of period	$ 913
Vested or expected to vest at September 30, 2017	913
Exercisable at September 30, 2017	$ 218

Restricted Stock Units and Acti

Restricted Stock Units and Activity (Detail) - Restricted Stock Units (RSUs) - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2017	Dec. 31, 2016
Number of Units
Outstanding, beginning balance	403,501
Granted	0
Vested	0
Cancelled	0
Outstanding, ending balance	403,501	403,501
Weighted Average Contractual Life (in years)
Outstanding at end of period	8 years 4 months 13 days	9 years 1 month 9 days
Aggregate Intrinsic Value
Outstanding Aggregate Intrinsic Value	$ 791	$ 365

Segment Reporting - Additional

Segment Reporting - Additional Information (Detail)	3 Months Ended		9 Months Ended
	Sep. 30, 2017USD ($)	Sep. 30, 2016Customer	Sep. 30, 2017USD ($)SegmentCustomer	Sep. 30, 2016Customer
Revenues from External Customers and Long-Lived Assets [Line Items]
Number of reportable segments | Segment			1
Long-lived assets | $	$ 100,000		$ 100,000
Sales Revenue, Net | Customer Concentration Risk
Revenues from External Customers and Long-Lived Assets [Line Items]
Rebate accrual recognised as revenue | $	$ 27,000
Sales Revenue, Net | Customer Concentration Risk | Health Care Provider One
Revenues from External Customers and Long-Lived Assets [Line Items]
Number of customers		1	1	1
Concentration risk percentage		18.00%	20.70%	12.00%
Sales Revenue, Net | Customer Concentration Risk | Distributor One
Revenues from External Customers and Long-Lived Assets [Line Items]
Number of customers		1		1
Concentration risk percentage		34.00%		29.00%
Sales Revenue, Net | Customer Concentration Risk | Health Care Provider Two
Revenues from External Customers and Long-Lived Assets [Line Items]
Number of customers			1
Concentration risk percentage			15.30%

Product Sales by Geographic Loc

Product Sales by Geographic Location (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue	$ 23	$ 136	$ 173	$ 477
Europe
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue	$ 23	26	155	232
Middle East
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue		72	$ 18	159
Asia Pacific
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue		$ 38		$ 86