Apollo Endosurgery (APEN) 10-Q 1 Aug 17 2017 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2017	Jul. 26, 2017
Document and Entity Information [Abstract]
Entity Registrant Name	APOLLO ENDOSURGERY, INC.
Entity Central Index Key	1,251,769
Document Type	10-Q
Document Period End Date	Jun. 30, 2017
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		17,252,299
Document Fiscal Year Focus	2,017
Document Fiscal Period Focus	Q2

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Current assets:
Cash and cash equivalents	$ 5,302	$ 19,111
Accounts receivable, net of allowance for doubtful accounts of $452 and $479, respectively	12,808	10,509
Inventory, net	11,377	12,163
Prepaid expenses and other current assets	1,880	1,838
Total current assets	31,367	43,621
Restricted cash	938	930
Property and equipment, net of accumulated depreciation of $5,505 and $4,404, respectively	6,827	6,889
Goodwill	6,828	6,828
Intangible assets, net	39,883	43,315
Other assets	368	541
Total assets	86,211	102,124
Current liabilities:
Accounts payable	18,074	13,650
Accrued expenses	7,003	6,630
Total current liabilities	25,077	20,280
Long-term debt	33,034	39,427
Total liabilities	58,111	59,707
Commitments and contingencies
Stockholders' equity:
Common stock; $0.001 par value; 100,000,000 shares authorized; 10,709,846 and 10,688,992 shares issued and outstanding at June 30, 2017 and December 31, 2016, respectively	11	11
Additional paid-in capital	191,037	190,664
Accumulated other comprehensive income	1,856	1,471
Accumulated deficit	(164,804)	(149,729)
Total stockholders' equity	28,100	42,417
Total liabilities and stockholders' equity	$ 86,211	$ 102,124

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Statement of Financial Position [Abstract]
Allowance for doubtful accounts	$ 452	$ 479
Accumulated depreciation	$ 5,505	$ 4,404
Common stock, par value (USD per share)	$ 0.001	$ 0.001
Common stock, shares authorized (shares)	100,000,000	100,000,000
Common stock, shares issued (shares)	10,709,846	10,688,992
Common stock, shares outstanding (shares)	10,709,846	10,688,992

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations and Comprehensive Loss - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Income Statement [Abstract]
Revenues	$ 17,136	$ 17,341	$ 31,758	$ 33,618
Cost of sales	6,636	9,194	11,732	14,103
Gross margin	10,500	8,147	20,026	19,515
Operating expenses:
Sales and marketing	8,607	8,473	16,986	16,794
General and administrative	3,248	2,331	7,435	4,966
Research and development	2,285	1,786	4,242	3,440
Amortization of intangible assets	1,827	1,821	3,641	3,600
Total operating expenses	15,967	14,411	32,304	28,800
Loss from operations	(5,467)	(6,264)	(12,278)	(9,285)
Other expenses:
Interest expense, net	1,051	2,522	2,532	5,348
Other expense	277	632	152	690
Net loss before income taxes	(6,795)	(9,418)	(14,962)	(15,323)
Income tax expense	63	100	113	199
Net loss	(6,858)	(9,518)	(15,075)	(15,522)
Current dividends on convertible preferred stock	0	(2,259)	0	(4,517)
Net loss attributable to common stockholders	(6,858)	(11,777)	(15,075)	(20,039)
Other comprehensive income:
Foreign currency translation	243	814	385	1,205
Comprehensive loss	$ (6,615)	$ (8,704)	$ (14,690)	$ (14,317)
Net loss per share, basic and diluted (USD per share)	$ (0.64)	$ (35.30)	$ (1.41)	$ (60.84)
Shares used in computing net loss per share, basic and diluted (shares)	10,702,627	333,639	10,700,431	329,354

Condensed Consolidated Stateme5

Condensed Consolidated Statements of Changes in Stockholders’ Equity - 6 months ended Jun. 30, 2017 - USD ($) $ in Thousands	Total	Common Stock [Member]	Additional Paid-in Capital [Member]	Accumulated Other Comprehensive Income [Member]	Accumulated Deficit [Member]
Beginning balance, shares at Dec. 31, 2016	10,688,992	10,688,992
Beginning balance at Dec. 31, 2016	$ 42,417	$ 11	$ 190,664	$ 1,471	$ (149,729)
Stockholders' Equity:
Exercise of common stock options, shares		20,854
Exercise of common stock options	46		46
Stock based compensation	327		327
Foreign currency translation	385			385
Net loss	(15,075)				(15,075)
Ending balance at Jun. 30, 2017	$ 28,100	$ 11	$ 191,037	$ 1,856	$ (164,804)
Ending balance, shares at Jun. 30, 2017	10,709,846	10,709,846

Condensed Consolidated Stateme6

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016
Cash flows from operating activities:
Net loss	$ (15,075)	$ (15,522)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	4,877	4,385
Amortization of deferred financing costs	215	184
Non-cash interest expense	392	3,113
Change in fair value of warrant liability	0	(216)
Provision for doubtful accounts receivable	36	123
Change in inventory reserve	169	3,215
Stock based compensation	327	207
Foreign exchange on short-term intercompany loans	(74)	892
Changes in operating assets and liabilities:
Accounts receivable	(2,014)	(1,498)
Inventory	653	(2,657)
Prepaid expenses and other assets	119	964
Accounts payable and accrued expenses	4,839	2,074
Net cash used in operating activities	(5,536)	(4,736)
Cash flows from investing activities:
Purchases of property and equipment	(1,046)	(572)
Purchase of intangibles and other assets	(329)	(809)
Net cash used in investing activities	(1,375)	(1,381)
Cash flows from financing activities:
Proceeds from exercise of stock options	46	36
Payment of debt	(7,000)	0
Payment of contingent consideration	0	(5,000)
Net cash used in financing activities	(6,954)	(4,964)
Effect of exchange rate changes on cash	64	56
Net decrease in cash, cash equivalents and restricted cash	(13,801)	(11,025)
Cash, cash equivalents and restricted cash at beginning of year	20,041	22,586
Cash, cash equivalents and restricted cash at end of period	6,240	11,561
Supplemental disclosure of cash flow information:
Cash paid for interest	1,966	2,302
Supplemental disclosure of non-cash investing and financing activity:
Accretion of dividends on preferred stock	$ 0	$ 4,517

Organization and Business Descr

Organization and Business Description	6 Months Ended
	Jun. 30, 2017
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Organization and Business Description	Organization and Business Description Apollo Endosurgery, Inc. is a Delaware corporation with both domestic and foreign wholly-owned subsidiaries. Throughout these Notes "Apollo" and the "Company" refer to Apollo Endosurgery, Inc. and its consolidated subsidiaries. Apollo is a medical technology company primarily focused on the design, development, and commercialization of innovative medical devices that can be used for the treatment of obesity. The Company develops and distributes minimally invasive surgical and non-surgical devices for bariatric and gastrointestinal procedures that are used by general surgeons, bariatric surgeons and gastroenterologists in a variety of settings to provide interventional therapy to patients who suffer from obesity and the many co-morbidities associated with obesity. The Company's core products include the Orbera® intra-gastric balloon system, the OverStitch™ endoscopic suturing system and the Lap-Band® adjustable gastric banding system. All devices are regulated by the United States Food and Drug Administration (the "FDA") and equivalent regulatory bodies outside the United States. The Company's products are sold throughout the world with principal markets in the United States of America, Europe, Australia, Brazil and Canada. The Company also has a manufacturing facility located in Costa Rica.

Significant Accounting Policies

Significant Accounting Policies	6 Months Ended
	Jun. 30, 2017
Accounting Policies [Abstract]
Significant Accounting Policies	Significant Accounting Policies (a) Basis of Presentation The Company prepared its interim condensed consolidated financial statements in conformity with accounting principles generally accepted in the United States of America ("GAAP"). They do not include all of the information and footnotes required by GAAP for complete financial statements. The accompanying condensed consolidated financial statements include the Company's accounts and the accounts of its wholly-owned subsidiaries. The Company has eliminated all intercompany balances and transactions. The Company has made estimates and judgments affecting the amounts reported in its condensed consolidated financial statements and the accompanying notes. The actual results that the Company experiences may differ materially from the Company's estimates. The accounting estimates that require the Company's most significant, difficult and subjective judgments include useful lives of intangible assets and long-lived assets, valuation of inventory, allowance for doubtful accounts, stock compensation, and deferred tax asset valuation. (b) Unaudited Interim Results In management's opinion, the unaudited financial information for the interim periods presented includes all adjustments necessary for a fair presentation of the results of operations, financial position, and cash flows. All adjustments are of a normal recurring nature unless otherwise disclosed. Revenues, expenses, assets and liabilities can vary during each quarter of the year. Therefore, the results and trends in these interim financial statements may not be the same as those for the full year. This interim information should be read in conjunction with the audited consolidated financial statements in our Annual Report on Form 10-K for the year ended December 31, 2016 . Certain reclassifications of prior period amounts have been made to conform to the current presentation. (c) Recent Accounting Pronouncements In May 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2014-09, Revenue from Contracts with Customers ("ASU 2014-09"), which requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. ASU 2014-09 replaces most existing revenue recognition guidance in GAAP. In July 2015, the FASB approved a one-year deferral of this standard, with a revised effective date for annual and interim reporting in fiscal years beginning after December 15, 2017. In March 2016 and April 2016, the FASB issued ASU 2016-08, Principal versus Agent Considerations (Reporting Revenue Gross versus Net ) and ASU 2016-10, Identifying Performance Obligations and Licensing , respectively. ASU 2014-09 permits the use of either the retrospective or modified retrospective (cumulative effect) transition method. While we are currently assessing the impact of the new standard, our revenue is primarily generated from the sale of finished product to customers. Those sales predominantly contain a single delivery element and revenue is recognized at a single point in time when ownership, risks and rewards transfer. These are largely unimpacted by the new standard. Therefore, we do not expect this new guidance to have a material impact on the Company's consolidated financial statements. The Company continues to review this guidance, potential disclosures and the Company’s method of adoption to complete its evaluation of the impact on its consolidated financial statements. In addition, the Company continues to monitor additional changes, modifications, clarifications or interpretations being undertaken by the FASB, which may impact the Company’s current conclusions. The Company has adopted the provisions of ASU 2015-11, Simplifying the Measurement of Inventory ("ASU 2015-11"), which simplifies the subsequent measurement of inventory by requiring inventory to be measured at the lower of cost and net realizable value. Net realizable value is the estimated selling price in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation. The adoption of ASU 2015-11 resulted in no material impact on the Company's consolidated financial statements. The Company has adopted the provisions of ASU 2015-17, Balance Sheet Classification of Deferred Taxes ("ASU 2015-17") which requires that all deferred tax assets and liabilities, along with any related valuation allowance, be classified as noncurrent on the balance sheet. The adoption of ASU 2015-17 resulted in no material impact on the Company's consolidated financial statements. In February 2016, the FASB issued ASU 2016-02, Leases ("ASU 2016-02") which requires a lessee to recognize assets and liabilities for leases with a maximum possible term of more than 12 months. A lessee would recognize a liability to make lease payments (the lease liability) and a right-of-use asset representing its right to use the leased asset (the underlying asset) for the lease term which will require companies to recognize most leases on the balance sheet, thereby increasing reported assets and liabilities. Extensive quantitative and qualitative disclosures, including significant judgments made by management, will be required. ASU 2016-02 requires adoption using a modified retrospective transition with application of the guidance at the beginning of the earliest comparative period presented. ASU 2016-02 will be effective for the Company on January 1, 2019. Early adoption is permitted. The Company is evaluating the effect that ASU 2016-02 will have on its consolidated financial statements. The Company has adopted the provisions of ASU 2016-09, Improvements to Employee Share-Based Payment Accounting ("ASU 2016-09"), which contains guidance on accounting for certain aspects of share-based payments to employees. ASU 2016-09 requires excess tax benefits and tax deficiencies to be recorded in the income statement when the awards vest or are settled. Furthermore, cash flows related to excess tax benefits will no longer be separately classified as a financing activity apart from other income tax cash flows. ASU 2016-09 also allows companies to repurchase more of an employee's shares for tax withholding purposes without triggering liability accounting, clarifying that all cash payments made on an employee's behalf for withheld shares should be presented as a financing activity in the consolidated statements of cash flows and provides an accounting policy election to account for forfeitures as they occur. The adoption of ASU 2016-09 resulted in no material impact on the Company's consolidated financial statements. In January 2017, the FASB issued ASU 2017-01, Business Combinations: Clarifying the Definition of a Business ("ASU 2017-01") which changes the definition of a business. If substantially all of the fair value of the gross assets acquired is concentrated in a single identifiable asset or group of similar identifiable assets, then the acquisition is not a business. ASU 2017-01 requires a business to include at least one substantive process. ASU 2017-01 will be effective for the Company on January 1, 2018. Early adoption is permitted. The effect of ASU 2017-01 on the Company's consolidated financial statements will be dependent on any future acquisitions. In January 2017, the FASB issued ASU 2017-04, Intangibles - Goodwill and Other: Simplifying the Test for Goodwill Impairment (“ASU 2017-04”) to simplify the accounting for goodwill impairment. The guidance removes Step 2 of the goodwill impairment test, which requires a hypothetical purchase price allocation. A goodwill impairment will now be the amount by which a reporting unit’s carrying value exceeds its fair value, not to exceed the carrying amount of goodwill. Entities will continue to have the option to perform a qualitative assessment to determine if a quantitative impairment test is necessary. ASU 2017-04 will be effective for the Company for annual and interim reporting in fiscal years beginning after December 15, 2019. Early adoption is permitted. The effect of ASU 2017-04 on the Company's consolidated financial statements will be dependent on any future impairments. In May 2017, the FASB issued ASU 2017-09, Compensation - Stock Compensation (“ASU 2017-09”) to address how to account for a change to the terms or conditions of a share-based payment award and will be effective for the Company for annual and interim reporting beginning in 2018. The effect of ASU 2017-09 on the Company's consolidated financial statements will be dependent on any future changes to the terms or conditions of an issued share-based payment award. In July 2017, the FASB issued ASU 2017-11, I. Accounting for Certain Financial Instruments With Down Round Features and II. Replacement of the Indefinite Deferral for Mandatorily Redeemable Financial Instruments of Certain Nonpublic Entities and Certain Mandatorily Redeemable Noncontrolling Interests With a Scope Exception (“ASU 2017-11”) to address how to account for down round features in equity-linked instruments and will be effective for the Company for annual and interim reporting beginning in 2019. Early adoption is permitted. The effect of ASU 2017-11 on the Company's consolidated financial statements will be dependent on any future equity-linked instruments with down round features.

Acquisitions

Acquisitions	6 Months Ended
	Jun. 30, 2017
Business Combinations [Abstract]
Acquisitions	Acquisitions On December 29, 2016 , the Company completed a business combination with Lpath, Inc. ("Lpath"), a publicly held company, in accordance with the terms of the Agreement and Plan of Merger and Reorganization dated September 8, 2016, (the "Merger"). The following summary pro forma condensed consolidated financial information reflects the Merger with Lpath as if it had occurred on January 1, 2016 for purposes of the statements of operations. This summary pro forma information is not necessarily representative of what the Company’s results of operations would have been had the Merger in fact occurred on January 1, 2016, and is not intended to project the Company’s results of operations for any future period. Pro forma condensed consolidated financial information for the six months ended June 30, 2016 (unaudited): Pro forma combined revenues $ 33,637 Pro forma combined net loss $ (17,113 ) Pro forma combined loss per share $ (1.61 ) Pro forma combined net loss includes an adjustment to reduce historical interest expense by $3,017 for the six months ended June 30, 2016 , due to the conversion of the convertible notes and the principal repayments of long-term debt of $11,000 .

Concentrations

Concentrations	6 Months Ended
	Jun. 30, 2017
Risks and Uncertainties [Abstract]
Concentrations	Concentrations Consolidated financial instruments that potentially subject the Company to a concentration of credit risk principally consist of cash and cash equivalents and accounts receivable. At June 30, 2017 , the Company's cash and cash equivalents and restricted cash are held in deposit accounts at three different banks totaling $6,240 . The Company has not experienced any losses in such accounts, and management does not believe the Company is exposed to any significant credit risk. Management further believes that the concentration of credit risk in the Company's accounts receivable is substantially mitigated by the Company's evaluation process, relatively short collection terms, and the high level of creditworthiness of its customers. The Company continually evaluates the status of each of its customers, but generally requires no collateral.

Inventory

Inventory	6 Months Ended
	Jun. 30, 2017
Inventory Disclosure [Abstract]
Inventory	Inventory Inventory consists of the following as of: June 30, December 31, 2016 (unaudited) Raw materials $ 4,472 $ 5,031 Work in progress 249 346 Finished goods 9,452 10,520 Less inventory reserve (2,796 ) (3,734 ) Total inventory, net $ 11,377 $ 12,163 The Company reviews the components of its inventory on a periodic basis for excess, obsolete or impaired inventory and records a reserve for items identified. During the three and six months ended June 30, 2017 the Company recorded an impairment charge of $89 and $169 , respectively. During the six months ended June 30, 2017 the Company disposed of $1,106 of expired product which was fully reserved.

Other Intangible Assets

Other Intangible Assets	6 Months Ended
	Jun. 30, 2017
Goodwill and Intangible Assets Disclosure [Abstract]
Other Intangible Assets	Other Intangible Assets Other intangible assets consist of the following as of: June 30, December 31, 2016 (unaudited) Original cost $ 64,603 $ 64,274 Less accumulated amortization (24,720 ) (20,959 ) Intangible assets, net $ 39,883 $ 43,315

Accrued Expenses

Accrued Expenses	6 Months Ended
	Jun. 30, 2017
Payables and Accruals [Abstract]
Accrued Expenses	Accrued Expenses Accrued expenses consist of the following: June 30, December 31, 2016 (unaudited) Accrued employee compensation and expenses $ 3,178 $ 3,040 Accrued professional service fees 882 1,521 Accrued returns and rebates 602 366 Accrued insurance, property and sales taxes 711 256 Other 1,630 1,447 Total accrued expenses $ 7,003 $ 6,630

Long-Term Debt

Long-Term Debt	6 Months Ended
	Jun. 30, 2017
Debt Disclosure [Abstract]
Long-Term Debt	Long-Term Debt Long-term debt consists of the following as of: June 30, December 31, 2016 (unaudited) Senior secured credit facility $ 32,000 $ 39,000 Payment-in-kind interest 2,144 2,046 Long-term debt 34,144 41,046 Discount on long-term debt (658 ) (952 ) Deferred financing costs (452 ) (667 ) Long-term debt $ 33,034 $ 39,427 On March 7, 2017, the Company entered into a Fifth Amendment (the "Fifth Amendment") to the senior secured credit facility (the "Credit Agreement") with its lender, Athyrium Opportunities II Acquisition LP ("Athyrium"). The Fifth Amendment (i) reduced the minimum cash balance requirement to $0 from $8,000 , (ii) reduced the minimum quarterly revenue requirement to $13,000 from $18,000 , (iii) increased the maximum debt-to-revenue ratio to 0.65 from 0.60 and (iv) required Apollo to make a principal repayment of $7,000 . The minimum quarterly revenue requirement will increase by $1,000 quarterly over the remaining term of the facility, and the maximum debt-to-revenue ratio will decline gradually each quarter, from 0.65 to 0.25 , over the remaining term of the facility. Unamortized deferred financing costs of $113 and unamortized discount of $162 were written off in March 2017 in connection with the principal repayment of $7,000 . As of June 30, 2017 , the Company was in compliance with the financial covenants.

Stock Based Compensation

Stock Based Compensation	6 Months Ended
	Jun. 30, 2017
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Stock Based Compensation	Stock Based Compensation On June 9, 2017, the 2017 Equity Incentive Plan (the "2017 Plan") was approved by the Company's shareholders and replaced the Company's 2016 Equity Incentive Plan (the "2016 Plan"), which was the successor to the 2006 Stock Option Plan ("the 2006 Plan"), and the Lpath Amended and Restated 2005 Equity Incentive Plan (the "Lpath Plan") (collectively with the 2016 Plan and the 2006 Plan, the "Prior Plans"). Grants will no longer be made under the Prior Plans, but the awards that remain outstanding will continue to be governed by the terms of the applicable Prior Plan and the applicable award agreement. A summary of the stock option activity under the Company's 2017 Plan and Prior Plans as of June 30, 2017 is presented below. Options Weighted Average Exercise Price Weighted Average Remaining Contractual Term Aggregate Intrinsic Value (Number) (Price) (Years) ($000's) Options outstanding, December 31, 2016 1,016,647 $2.94 7.0 years $9,343 Options granted 617,006 $7.67 Options exercised (20,854 ) $2.37 Options forfeited (14,342 ) $3.89 Options outstanding, June 30, 2017 1,598,457 $4.83 6.1 years $5,537 Options vested and expected to vest 1,598,457 $4.83 6.1 years $5,537 Options exercisable 629,842 $3.07 6.1 years $3,139 Shares subject to awards granted under the 2017 Plan which expire, are repurchased, or are canceled or forfeited will again become available for issuance under the 2017 Plan. The shares available will not be reduced by awards settled in cash or by shares withheld to satisfy tax withholding obligations. Only the net number of shares issued upon the exercise of stock appreciation rights or options exercised by means of a net exercise will be deducted from the shares available under the 2017 Plan. The fair value of stock option grants has been estimated at the date of grant using the Black-Scholes option pricing model with the following weighted average assumptions: Six Months Ended June 30, 2017 Six Months Ended June 30, 2016 Risk free interest rate 1.9% 0.5% Expected dividend yield —% —% Estimated volatility 65.3% 19.9% Expected life 3.2 years 4.5 years Additional information regarding options is as follows: Six Months Ended June 30, 2017 Six Months Ended June 30, 2016 Weighted-average grant date fair value of options granted during the period $ 3.28 $ 0.32 Aggregate intrinsic value of options exercised during the period $ 151 $ 14 The total compensation cost recognized for stock-based awards was $217 and $327 for the three and six months ended June 30, 2017 , respectively, and $103 and $207 for the three and six months ended June 30, 2016 , respectively. The aggregate intrinsic value in the table above represents the total pre-tax value of the options shown, calculated as the difference between the Company’s closing stock price on June 30, 2017 and the exercise prices of the options shown, multiplied by the number of in-the money options. This is the aggregate amount that would have been received by the option holders if they had all exercised their options on June 30, 2017 and sold the shares thereby received at the closing price of the Company’s stock on that date. This amount changes based on the closing price of the Company’s stock. The Company has granted 139,513 options to purchase common shares that will vest upon the Company's achievement of certain global revenue and EBITDA targets for calendar years 2016 and 2017. Achievement of these performance targets are deemed not probable and thus no amounts have been recognized associated with these amounts. Unrecognized compensation expense related to unvested options was approximately $2,283 at June 30, 2017 , with a remaining amortization period of less than four years . In addition, the Company granted 39,348 time-based restricted stock units with a weighted-average grant date fair value of $6.50 during the six months ended June 30, 2017 . Intrinsic value of the restricted stock units was $310 and unrecognized compensation expense related to unvested restricted stock units was approximately $246 at June 30, 2017 , with a remaining amortization period of less than four years .

Income Taxes

Income Taxes	6 Months Ended
	Jun. 30, 2017
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes The provision for income taxes for the three and six months ended June 30, 2017 and 2016 includes both domestic and foreign income taxes at applicable statutory rates. The provision primarily consists of foreign income taxes. The Company has established a valuation allowance equal to the total net domestic deferred tax asset due to uncertainties regarding the realization of deferred tax assets based on the Company's lack of earnings history. As of June 30, 2017 , the Company has no unrecognized tax benefits or accrued interest or penalties associated with uncertain tax positions.

Net Loss Per Share

Net Loss Per Share	6 Months Ended
	Jun. 30, 2017
Earnings Per Share [Abstract]
Net Loss Per Share	Net Loss Per Share The basic and diluted net loss per common share presented in the condensed consolidated statement of operations and comprehensive loss is calculated by dividing net loss attributable to common stockholders by the weighted-average number of common shares outstanding during the period, without consideration for common stock equivalents. Net loss attributable to common stock is computed by deducting current dividends on convertible preferred stock from net loss. Potentially dilutive shares, which include convertible preferred stock, warrants for the purchase of common and preferred stock, options outstanding under the Company's equity incentive plans, and restricted stock units are considered to be common stock equivalents and are only included in the calculation of diluted net loss per share when their effect is dilutive. Potentially dilutive securities not included in the calculation of diluted net loss per share attributable to common stockholders because to do so would be anti-dilutive are as follows (in common stock equivalent shares on a weighted-average basis): Three Months Ended June 30, Six Months Ended June 30, 2017 2016 2017 2016 Preferred stock — 7,113,590 — 7,113,590 Warrants for common and preferred stock 251,943 495,144 256,460 495,144 Common stock options 1,304,881 1,129,892 1,212,484 1,063,285 Restricted stock units 15,566 — 7,826 — 1,572,390 8,738,626 1,476,770 8,672,019

Liquidity and Capital Resources

Liquidity and Capital Resources	6 Months Ended
	Jun. 30, 2017
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Liquidity and Capital Resources	Liquidity and Capital Resources The Company has experienced operating losses since inception and occasional debt covenant violations and has an accumulated deficit of $164,804 as of June 30, 2017 . To date, the Company has funded its operating losses and acquisitions through private equity offerings and the issuance of debt instruments. The Company's ability to fund future operations will depend upon its level of future operating cash flow and its ability to access additional funding through either equity offerings, issuances of debt instruments or both. In July 2017, the Company completed a public offering selling 6,542,453 shares. In February 2015, the Company entered into the Credit Facility which requires the Company to meet minimum revenue requirements and other covenants each quarter and provides a cure provision in the event this requirement is not met. If the Company is not able to meet its ongoing quarterly covenant requirements or utilize the remaining cure provision rights, the repayment of the Credit Facility could be accelerated at the lender's discretion. The Company believes its existing cash and cash equivalents and remaining cure provision rights will be sufficient to meet liquidity and capital requirements for at least the next twelve months.

Fair Value Measurements

Fair Value Measurements	6 Months Ended
	Jun. 30, 2017
Fair Value Disclosures [Abstract]
Fair Value Measurements	Fair Value Measurements The carrying amounts of the Company's financial instruments, which primarily include cash and cash equivalents, accounts receivable, accounts payable and accrued expenses, approximate their fair values due to their short maturities. The fair value of the Company's long-term debt is estimated by management to approximate $31,900 at June 30, 2017 . Management's estimates are based on comparisons of the characteristics of the Company's obligations, comparable ranges of interest rates on recently issued debt, and maturity. Such valuation inputs are considered a Level 3 measurement in the fair value valuation hierarchy. The accounting guidance defines fair value, establishes a consistent framework for measuring fair value and expands disclosure for each major asset and liability category measured at fair value on either a recurring or nonrecurring basis. Fair value is defined as an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or liability. As a basis for considering such assumptions, the accounting guidance establishes a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value as follows: Level 1: Observable inputs such as quoted prices in active markets; Level 2: Inputs, other than the quoted prices in active markets, that are observable either directly or indirectly; and Level 3: Unobservable inputs in which there is little or no market data, which require the reporting entity to develop its own assumptions.

Segment and Geographic Informat

Segment and Geographic Information	6 Months Ended
	Jun. 30, 2017
Segment Reporting [Abstract]
Segment and Geographic Information	Segment and Geographic Information Operating segments are defined as components of an enterprise for which separate financial information is available and evaluated regularly by the chief operating decision maker, or decision-making group, in deciding how to allocate resources and in assessing performance. The Company globally manages the business within one reportable segment. Segment information is consistent with how management reviews the business, makes investing and resource allocation decisions and assesses operating performance. The Company’s products are principally sold in the U.S. No other countries are individually significant. Product sales by product group and geographic market, based on the location of the customer, for the periods shown were as follows: Three Months Ended June 30, 2017 Three Months Ended June 30, 2016 (unaudited) U.S. OUS Total Revenues % Total Revenues U.S. OUS Total Revenues % Total Revenues Endo-bariatric $ 4,086 $ 5,433 $ 9,519 55.5 % $ 3,986 $ 4,437 $ 8,423 48.6 % Surgical 4,779 2,636 7,415 43.3 % 5,833 2,946 8,779 50.6 % Other 194 8 202 1.2 % 130 9 139 0.8 % Total revenues $ 9,059 $ 8,077 $ 17,136 100.0 % $ 9,949 $ 7,392 $ 17,341 100.0 % % Total revenues 52.9 % 47.1 % 57.4 % 42.6 % Six Months Ended June 30, 2017 Six Months Ended June 30, 2016 (unaudited) U.S. OUS Total Revenues % Total Revenues U.S. OUS Total Revenues % Total Revenues Endo-bariatric $ 7,582 $ 9,271 $ 16,853 53.1 % $ 8,535 $ 8,092 $ 16,627 49.5 % Surgical 8,981 5,559 14,540 45.8 % 11,035 5,718 16,753 49.8 % Other 351 14 365 1.1 % 223 15 238 0.7 % Total revenues $ 16,914 $ 14,844 $ 31,758 100.0 % $ 19,793 $ 13,825 $ 33,618 100.0 % % Total revenues 53.3 % 46.7 % 58.9 % 41.1 % The following table represents property and equipment, net based on the physical geographic location of the asset: June 30, December 31, 2016 (unaudited) United States $ 2,713 $ 2,426 Costa Rica 3,834 4,195 Other 280 268 Total property and equipment, net $ 6,827 $ 6,889

Subsequent Events

Subsequent Events	6 Months Ended
	Jun. 30, 2017
Subsequent Events [Abstract]
Subsequent Events	Subsequent Events On July 25, 2017, the Company completed a public offering selling 6,542,453 shares at a price of $5.50 per share, including 853,363 shares sold to the underwriters upon the full exercise of the over-allotment option to purchase additional shares, before the underwriting discount. We estimate that the public offering will generate net proceeds of approximately $33.6 million , after deducting the underwriting discount and estimated offering expenses of $2.4 million .

Significant Accounting Polici22

Significant Accounting Policies (Policies)	6 Months Ended
	Jun. 30, 2017
Accounting Policies [Abstract]
Recent Accounting Pronouncements	Recent Accounting Pronouncements In May 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2014-09, Revenue from Contracts with Customers ("ASU 2014-09"), which requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. ASU 2014-09 replaces most existing revenue recognition guidance in GAAP. In July 2015, the FASB approved a one-year deferral of this standard, with a revised effective date for annual and interim reporting in fiscal years beginning after December 15, 2017. In March 2016 and April 2016, the FASB issued ASU 2016-08, Principal versus Agent Considerations (Reporting Revenue Gross versus Net ) and ASU 2016-10, Identifying Performance Obligations and Licensing , respectively. ASU 2014-09 permits the use of either the retrospective or modified retrospective (cumulative effect) transition method. While we are currently assessing the impact of the new standard, our revenue is primarily generated from the sale of finished product to customers. Those sales predominantly contain a single delivery element and revenue is recognized at a single point in time when ownership, risks and rewards transfer. These are largely unimpacted by the new standard. Therefore, we do not expect this new guidance to have a material impact on the Company's consolidated financial statements. The Company continues to review this guidance, potential disclosures and the Company’s method of adoption to complete its evaluation of the impact on its consolidated financial statements. In addition, the Company continues to monitor additional changes, modifications, clarifications or interpretations being undertaken by the FASB, which may impact the Company’s current conclusions. The Company has adopted the provisions of ASU 2015-11, Simplifying the Measurement of Inventory ("ASU 2015-11"), which simplifies the subsequent measurement of inventory by requiring inventory to be measured at the lower of cost and net realizable value. Net realizable value is the estimated selling price in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation. The adoption of ASU 2015-11 resulted in no material impact on the Company's consolidated financial statements. The Company has adopted the provisions of ASU 2015-17, Balance Sheet Classification of Deferred Taxes ("ASU 2015-17") which requires that all deferred tax assets and liabilities, along with any related valuation allowance, be classified as noncurrent on the balance sheet. The adoption of ASU 2015-17 resulted in no material impact on the Company's consolidated financial statements. In February 2016, the FASB issued ASU 2016-02, Leases ("ASU 2016-02") which requires a lessee to recognize assets and liabilities for leases with a maximum possible term of more than 12 months. A lessee would recognize a liability to make lease payments (the lease liability) and a right-of-use asset representing its right to use the leased asset (the underlying asset) for the lease term which will require companies to recognize most leases on the balance sheet, thereby increasing reported assets and liabilities. Extensive quantitative and qualitative disclosures, including significant judgments made by management, will be required. ASU 2016-02 requires adoption using a modified retrospective transition with application of the guidance at the beginning of the earliest comparative period presented. ASU 2016-02 will be effective for the Company on January 1, 2019. Early adoption is permitted. The Company is evaluating the effect that ASU 2016-02 will have on its consolidated financial statements. The Company has adopted the provisions of ASU 2016-09, Improvements to Employee Share-Based Payment Accounting ("ASU 2016-09"), which contains guidance on accounting for certain aspects of share-based payments to employees. ASU 2016-09 requires excess tax benefits and tax deficiencies to be recorded in the income statement when the awards vest or are settled. Furthermore, cash flows related to excess tax benefits will no longer be separately classified as a financing activity apart from other income tax cash flows. ASU 2016-09 also allows companies to repurchase more of an employee's shares for tax withholding purposes without triggering liability accounting, clarifying that all cash payments made on an employee's behalf for withheld shares should be presented as a financing activity in the consolidated statements of cash flows and provides an accounting policy election to account for forfeitures as they occur. The adoption of ASU 2016-09 resulted in no material impact on the Company's consolidated financial statements. In January 2017, the FASB issued ASU 2017-01, Business Combinations: Clarifying the Definition of a Business ("ASU 2017-01") which changes the definition of a business. If substantially all of the fair value of the gross assets acquired is concentrated in a single identifiable asset or group of similar identifiable assets, then the acquisition is not a business. ASU 2017-01 requires a business to include at least one substantive process. ASU 2017-01 will be effective for the Company on January 1, 2018. Early adoption is permitted. The effect of ASU 2017-01 on the Company's consolidated financial statements will be dependent on any future acquisitions. In January 2017, the FASB issued ASU 2017-04, Intangibles - Goodwill and Other: Simplifying the Test for Goodwill Impairment (“ASU 2017-04”) to simplify the accounting for goodwill impairment. The guidance removes Step 2 of the goodwill impairment test, which requires a hypothetical purchase price allocation. A goodwill impairment will now be the amount by which a reporting unit’s carrying value exceeds its fair value, not to exceed the carrying amount of goodwill. Entities will continue to have the option to perform a qualitative assessment to determine if a quantitative impairment test is necessary. ASU 2017-04 will be effective for the Company for annual and interim reporting in fiscal years beginning after December 15, 2019. Early adoption is permitted. The effect of ASU 2017-04 on the Company's consolidated financial statements will be dependent on any future impairments. In May 2017, the FASB issued ASU 2017-09, Compensation - Stock Compensation (“ASU 2017-09”) to address how to account for a change to the terms or conditions of a share-based payment award and will be effective for the Company for annual and interim reporting beginning in 2018. The effect of ASU 2017-09 on the Company's consolidated financial statements will be dependent on any future changes to the terms or conditions of an issued share-based payment award. In July 2017, the FASB issued ASU 2017-11, I. Accounting for Certain Financial Instruments With Down Round Features and II. Replacement of the Indefinite Deferral for Mandatorily Redeemable Financial Instruments of Certain Nonpublic Entities and Certain Mandatorily Redeemable Noncontrolling Interests With a Scope Exception (“ASU 2017-11”) to address how to account for down round features in equity-linked instruments and will be effective for the Company for annual and interim reporting beginning in 2019. Early adoption is permitted. The effect of ASU 2017-11 on the Company's consolidated financial statements will be dependent on any future equity-linked instruments with down round features.
Net Loss Per Share	The basic and diluted net loss per common share presented in the condensed consolidated statement of operations and comprehensive loss is calculated by dividing net loss attributable to common stockholders by the weighted-average number of common shares outstanding during the period, without consideration for common stock equivalents. Net loss attributable to common stock is computed by deducting current dividends on convertible preferred stock from net loss. Potentially dilutive shares, which include convertible preferred stock, warrants for the purchase of common and preferred stock, options outstanding under the Company's equity incentive plans, and restricted stock units are considered to be common stock equivalents and are only included in the calculation of diluted net loss per share when their effect is dilutive.

Acquisitions (Tables)

Acquisitions (Tables)	6 Months Ended
	Jun. 30, 2017
Business Combinations [Abstract]
Schedule of Pro Forma Information	Pro forma condensed consolidated financial information for the six months ended June 30, 2016 (unaudited): Pro forma combined revenues $ 33,637 Pro forma combined net loss $ (17,113 ) Pro forma combined loss per share $ (1.61 )

Inventory (Tables)

Inventory (Tables)	6 Months Ended
	Jun. 30, 2017
Inventory Disclosure [Abstract]
Schedule of Inventory	Inventory consists of the following as of: June 30, December 31, 2016 (unaudited) Raw materials $ 4,472 $ 5,031 Work in progress 249 346 Finished goods 9,452 10,520 Less inventory reserve (2,796 ) (3,734 ) Total inventory, net $ 11,377 $ 12,163

Other Intangible Assets (Tables

Other Intangible Assets (Tables)	6 Months Ended
	Jun. 30, 2017
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of Intangible Assets	Other intangible assets consist of the following as of: June 30, December 31, 2016 (unaudited) Original cost $ 64,603 $ 64,274 Less accumulated amortization (24,720 ) (20,959 ) Intangible assets, net $ 39,883 $ 43,315

Accrued Expenses (Tables)

Accrued Expenses (Tables)	6 Months Ended
	Jun. 30, 2017
Payables and Accruals [Abstract]
Schedule of Accrued Expenses	Accrued expenses consist of the following: June 30, December 31, 2016 (unaudited) Accrued employee compensation and expenses $ 3,178 $ 3,040 Accrued professional service fees 882 1,521 Accrued returns and rebates 602 366 Accrued insurance, property and sales taxes 711 256 Other 1,630 1,447 Total accrued expenses $ 7,003 $ 6,630

Long-Term Debt (Tables)

Long-Term Debt (Tables)	6 Months Ended
	Jun. 30, 2017
Debt Disclosure [Abstract]
Schedule of Long-term Debt	Long-term debt consists of the following as of: June 30, December 31, 2016 (unaudited) Senior secured credit facility $ 32,000 $ 39,000 Payment-in-kind interest 2,144 2,046 Long-term debt 34,144 41,046 Discount on long-term debt (658 ) (952 ) Deferred financing costs (452 ) (667 ) Long-term debt $ 33,034 $ 39,427

Stock Based Compensation (Table

Stock Based Compensation (Tables)	6 Months Ended
	Jun. 30, 2017
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Schedule of Stock Option Activity	A summary of the stock option activity under the Company's 2017 Plan and Prior Plans as of June 30, 2017 is presented below. Options Weighted Average Exercise Price Weighted Average Remaining Contractual Term Aggregate Intrinsic Value (Number) (Price) (Years) ($000's) Options outstanding, December 31, 2016 1,016,647 $2.94 7.0 years $9,343 Options granted 617,006 $7.67 Options exercised (20,854 ) $2.37 Options forfeited (14,342 ) $3.89 Options outstanding, June 30, 2017 1,598,457 $4.83 6.1 years $5,537 Options vested and expected to vest 1,598,457 $4.83 6.1 years $5,537 Options exercisable 629,842 $3.07 6.1 years $3,139
Schedule of Fair Value of Stock Options	The fair value of stock option grants has been estimated at the date of grant using the Black-Scholes option pricing model with the following weighted average assumptions: Six Months Ended June 30, 2017 Six Months Ended June 30, 2016 Risk free interest rate 1.9% 0.5% Expected dividend yield —% —% Estimated volatility 65.3% 19.9% Expected life 3.2 years 4.5 years
Schedule of Other Stock Option Information	Additional information regarding options is as follows: Six Months Ended June 30, 2017 Six Months Ended June 30, 2016 Weighted-average grant date fair value of options granted during the period $ 3.28 $ 0.32 Aggregate intrinsic value of options exercised during the period $ 151 $ 14

Net Loss Per Share (Tables)

Net Loss Per Share (Tables)	6 Months Ended
	Jun. 30, 2017
Earnings Per Share [Abstract]
Schedule of Antidilutive Securities Excluded from Computation of Diluted Loss Per Share	Potentially dilutive securities not included in the calculation of diluted net loss per share attributable to common stockholders because to do so would be anti-dilutive are as follows (in common stock equivalent shares on a weighted-average basis): Three Months Ended June 30, Six Months Ended June 30, 2017 2016 2017 2016 Preferred stock — 7,113,590 — 7,113,590 Warrants for common and preferred stock 251,943 495,144 256,460 495,144 Common stock options 1,304,881 1,129,892 1,212,484 1,063,285 Restricted stock units 15,566 — 7,826 — 1,572,390 8,738,626 1,476,770 8,672,019

Segment and Geographic Inform30

Segment and Geographic Information (Tables)	6 Months Ended
	Jun. 30, 2017
Segment Reporting [Abstract]
Schedule of Product Sales by Product Group and Geographic Market	Product sales by product group and geographic market, based on the location of the customer, for the periods shown were as follows: Three Months Ended June 30, 2017 Three Months Ended June 30, 2016 (unaudited) U.S. OUS Total Revenues % Total Revenues U.S. OUS Total Revenues % Total Revenues Endo-bariatric $ 4,086 $ 5,433 $ 9,519 55.5 % $ 3,986 $ 4,437 $ 8,423 48.6 % Surgical 4,779 2,636 7,415 43.3 % 5,833 2,946 8,779 50.6 % Other 194 8 202 1.2 % 130 9 139 0.8 % Total revenues $ 9,059 $ 8,077 $ 17,136 100.0 % $ 9,949 $ 7,392 $ 17,341 100.0 % % Total revenues 52.9 % 47.1 % 57.4 % 42.6 % Six Months Ended June 30, 2017 Six Months Ended June 30, 2016 (unaudited) U.S. OUS Total Revenues % Total Revenues U.S. OUS Total Revenues % Total Revenues Endo-bariatric $ 7,582 $ 9,271 $ 16,853 53.1 % $ 8,535 $ 8,092 $ 16,627 49.5 % Surgical 8,981 5,559 14,540 45.8 % 11,035 5,718 16,753 49.8 % Other 351 14 365 1.1 % 223 15 238 0.7 % Total revenues $ 16,914 $ 14,844 $ 31,758 100.0 % $ 19,793 $ 13,825 $ 33,618 100.0 % % Total revenues 53.3 % 46.7 % 58.9 % 41.1 %
Schedule of Long-Lived Assets by Geographic Area	The following table represents property and equipment, net based on the physical geographic location of the asset: June 30, December 31, 2016 (unaudited) United States $ 2,713 $ 2,426 Costa Rica 3,834 4,195 Other 280 268 Total property and equipment, net $ 6,827 $ 6,889

Acquisitions (Details)

Acquisitions (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Business Acquisition [Line Items]
Net loss	$ 6,858,000	$ 9,518,000	$ 15,075,000	$ 15,522,000
Lpath [Member]
Business Acquisition [Line Items]
Pro forma combined revenues				33,637
Pro forma combined net loss				$ (17,113)
Pro forma combined loss per share (USD per share)				$ (1.61)
Conversion of convertible notes and repayments of long-term debt				$ 11,000,000
Lpath [Member] | Acquisition-related Costs [Member]
Business Acquisition [Line Items]
Net loss				$ 3,017

Concentrations (Details)

Concentrations (Details) $ in Thousands	Jun. 30, 2017USD ($)bank
Risks and Uncertainties [Abstract]
Number of banks | bank	3
Cash and cash equivalents and restricted cash | $	$ 6,240

Inventory (Details)

Inventory (Details) - USD ($) $ in Thousands	3 Months Ended	6 Months Ended
	Jun. 30, 2017	Jun. 30, 2017	Jun. 30, 2016	Dec. 31, 2016
Inventory Disclosure [Abstract]
Raw materials	$ 4,472	$ 4,472		$ 5,031
Work in progress	249	249		346
Finished goods	9,452	9,452		10,520
Less inventory reserve	(2,796)	(2,796)		(3,734)
Total inventory, net	11,377	11,377		$ 12,163
Change in inventory reserve	$ 89	169	$ 3,215
Disposal of expired product		$ 1,106

Other Intangible Assets (Detail

Other Intangible Assets (Details) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Goodwill and Intangible Assets Disclosure [Abstract]
Original cost	$ 64,603	$ 64,274
Less accumulated amortization	(24,720)	(20,959)
Total	$ 39,883	$ 43,315

Accrued Expenses (Details)

Accrued Expenses (Details) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Payables and Accruals [Abstract]
Accrued employee compensation and expenses	$ 3,178	$ 3,040
Accrued professional service fees	882	1,521
Accrued returns and rebates	602	366
Accrued insurance, property and sales taxes	711	256
Other	1,630	1,447
Total accrued expenses	$ 7,003	$ 6,630

Long-Term Debt (Schedule of Lon

Long-Term Debt (Schedule of Long-term Debt) (Details) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Debt Instrument [Line Items]
Long-term debt, gross	$ 34,144	$ 41,046
Discount on long-term debt	(658)	(952)
Deferred financing costs	(452)	(667)
Long-term debt	33,034	39,427
Payment in Kind Interest [Member]
Debt Instrument [Line Items]
Long-term debt, gross	2,144	2,046
Line of Credit [Member] | Secured Debt [Member] | Credit Facility [Member]
Debt Instrument [Line Items]
Long-term debt, gross	$ 32,000	$ 39,000

Long-Term Debt (Narrative) (Det

Long-Term Debt (Narrative) (Details) - Secured Debt [Member] - Line of Credit [Member]	Mar. 07, 2017USD ($)	Mar. 31, 2017USD ($)	Dec. 31, 2016USD ($)
Credit Facility Fifth Amendment [Member]
Debt Instrument [Line Items]
Covenant, minimum cash on hand	$ 0		$ 8,000,000
Quarterly revenue requirement	$ 13,000,000		$ 18,000,000
Minimum debt to revenue ratio	0.65		0.60
Repayments of debt		$ 7,000,000
Increase in quarterly revenue	$ 1,000,000
Credit Facility Fifth Amendment [Member] | Gradual Decline Each Quarter [Member]
Debt Instrument [Line Items]
Minimum debt to revenue ratio	0.25		0.65
Credit Facility [Member]
Debt Instrument [Line Items]
Unamortized deferred financing costs		113,000
Discount on long-term debt		$ 162,000

Stock Based Compensation (Stock

Stock Based Compensation (Stock Option Activity) (Details) - Stock Option [Member] - USD ($) $ / shares in Units, $ in Thousands	6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Dec. 31, 2016
Options
Options outstanding, beginning balance (in shares)	1,016,647
Options granted (in shares)	617,006
Options exercised (in shares)	(20,854)
Options forfeited (in shares)	(14,342)
Options outstanding, ending balance (in shares)	1,598,457
Options vested and expected to vest (in shares)	1,598,457
Options exercisable (in shares)	629,842
Weighted Average Exercise Price
Weighted average exercise price, beginning balance (in USD per share)	$ 2.94
Options granted (in USD per share)	7.67
Options exercised (in USD per share)	2.37
Options forfeited (in USD per share)	3.89
Weighted average exercise price, ending balance (in USD per share)	4.83
Options vested and expected to vest (in USD per share)	4.83
Options exercisable (in USD per share)	$ 3.07
Weighted Average Remaining Contractual Term
Weighted average remaining contractual term	6 years 1 month	7 years
Options vested and expected to vest	6 years 1 month
Options exercisable	6 years 1 month
Aggregate Intrinsic Value
Aggregate intrinsic value	$ 5,537		$ 9,343
Options vested and expected to vest	5,537
Options exercisable	$ 3,139

Stock Based Compensation (Fair

Stock Based Compensation (Fair Value of Stock Options) (Details) - Stock Option [Member]	6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Risk free interest rate	1.90%	0.50%
Expected dividend yield	0.00%	0.00%
Estimated volatility	65.30%	19.90%
Expected life	3 years 2 months	4 years 6 months

Stock Based Compensation (Addit

Stock Based Compensation (Additional Information) (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended		18 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock compensation cost			$ 327	$ 207
Unrecognized compensation expense related to unvested options	$ 2,283		$ 2,283		$ 2,283
Remaining amortization period, less then			4 years
Stock Option [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted-average grant date fair value of options granted during the period (USD per share)			$ 3.28	$ 0.32
Aggregate intrinsic value of options exercised during the period			$ 151	$ 14
Stock compensation cost	$ 217	$ 103	$ 327	$ 207
Options granted in period (in shares)			617,006
Performance Shares [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Options granted in period (in shares)					139,513
Restricted stock units [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Remaining amortization period, less then			4 years
Awards granted (shares)			39,348
Weighted-average grant date fair value (USD per share)	$ 6.50		$ 6.50		$ 6.50
Intrinsic value	$ 310		$ 310		$ 310
Unrecognized compensation expense related to unvested restricted stock units	$ 246		$ 246		$ 246

Income Taxes (Details)

Income Taxes (Details)	Jun. 30, 2017USD ($)
Income Tax Disclosure [Abstract]
Unrecognized tax benefits	$ 0
Accrued interest	0
Tax penalties	$ 0

Net Loss Per Share (Details)

Net Loss Per Share (Details) - shares	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of diluted loss per share	1,572,390	8,738,626	1,476,770	8,672,019
Preferred stock [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of diluted loss per share	0	7,113,590	0	7,113,590
Warrants for common and preferred stock [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of diluted loss per share	251,943	495,144	256,460	495,144
Common stock options [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of diluted loss per share	1,304,881	1,129,892	1,212,484	1,063,285
Restricted stock units [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of diluted loss per share	15,566	0	7,826	0

Liquidity and Capital Resourc43

Liquidity and Capital Resources (Details) - USD ($) $ in Thousands	Jul. 25, 2017	Jun. 30, 2017	Dec. 31, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Accumulated deficit		$ 164,804	$ 149,729
Subsequent Event [Member]
Subsequent Event [Line Items]
Shares sold in public offering (in shares)	6,542,453

Fair Value Measurements (Detail

Fair Value Measurements (Details) $ in Thousands	Jun. 30, 2017USD ($)
Fair Value Disclosures [Abstract]
Fair value of long-term debt	$ 31,900

Segment and Geographic Inform45

Segment and Geographic Information (Segment Information) (Details) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017USD ($)	Jun. 30, 2016USD ($)	Jun. 30, 2017USD ($)segment	Jun. 30, 2016USD ($)
Segment Reporting [Abstract]
Number of reportable segments | segment			1
Revenue, Major Customer [Line Items]
Revenues	$ 17,136	$ 17,341	$ 31,758	$ 33,618
Segment Revenue [Member] | Product Risk [Member]
Revenue, Major Customer [Line Items]
Percentage of total revenue	100.00%	100.00%	100.00%	100.00%
United States [Member]
Revenue, Major Customer [Line Items]
Revenues	$ 9,059	$ 9,949	$ 16,914	$ 19,793
United States [Member] | Segment Revenue [Member] | Product Risk [Member]
Revenue, Major Customer [Line Items]
Percentage of total revenue	52.90%	57.40%	53.30%	58.90%
Other countries [Member]
Revenue, Major Customer [Line Items]
Revenues	$ 8,077	$ 7,392	$ 14,844	$ 13,825
Other countries [Member] | Segment Revenue [Member] | Product Risk [Member]
Revenue, Major Customer [Line Items]
Percentage of total revenue	47.10%	42.60%	46.70%	41.10%
Endo-Bariatric [Member]
Revenue, Major Customer [Line Items]
Revenues	$ 9,519	$ 8,423	$ 16,853	$ 16,627
Endo-Bariatric [Member] | Segment Revenue [Member] | Product Risk [Member]
Revenue, Major Customer [Line Items]
Percentage of total revenue	55.50%	48.60%	53.10%	49.50%
Endo-Bariatric [Member] | United States [Member]
Revenue, Major Customer [Line Items]
Revenues	$ 4,086	$ 3,986	$ 7,582	$ 8,535
Endo-Bariatric [Member] | Other countries [Member]
Revenue, Major Customer [Line Items]
Revenues	5,433	4,437	9,271	8,092
Surgical [Member]
Revenue, Major Customer [Line Items]
Revenues	$ 7,415	$ 8,779	$ 14,540	$ 16,753
Surgical [Member] | Segment Revenue [Member] | Product Risk [Member]
Revenue, Major Customer [Line Items]
Percentage of total revenue	43.30%	50.60%	45.80%	49.80%
Surgical [Member] | United States [Member]
Revenue, Major Customer [Line Items]
Revenues	$ 4,779	$ 5,833	$ 8,981	$ 11,035
Surgical [Member] | Other countries [Member]
Revenue, Major Customer [Line Items]
Revenues	2,636	2,946	5,559	5,718
Other [Member]
Revenue, Major Customer [Line Items]
Revenues	$ 202	$ 139	$ 365	$ 238
Other [Member] | Segment Revenue [Member] | Product Risk [Member]
Revenue, Major Customer [Line Items]
Percentage of total revenue	1.20%	0.80%	1.10%	0.70%
Other [Member] | United States [Member]
Revenue, Major Customer [Line Items]
Revenues	$ 194	$ 130	$ 351	$ 223
Other [Member] | Other countries [Member]
Revenue, Major Customer [Line Items]
Revenues	$ 8	$ 9	$ 14	$ 15

Segment and Geographic Inform46

Segment and Geographic Information (Long-Lived Assets by Geographic Area) (Details) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Revenues from External Customers and Long-Lived Assets [Line Items]
Total property and equipment, net	$ 6,827	$ 6,889
United States [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Total property and equipment, net	2,713	2,426
Costa Rica [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Total property and equipment, net	3,834	4,195
Other countries [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Total property and equipment, net	$ 280	$ 268

Subsequent Events (Details)

Subsequent Events (Details) - Subsequent Event [Member] $ / shares in Units, $ in Millions	Jul. 25, 2017USD ($)$ / sharesshares
Subsequent Event [Line Items]
Shares sold in public offering (in shares) | shares	6,542,453
Share price of shares sold (in USD per share) | $ / shares	$ 5.50
Proceeds from public offering | $	$ 33.6
Underwriting discount and estimated offering expenses | $	$ 2.4
Underwriters [Member]
Subsequent Event [Line Items]
Shares sold in public offering (in shares) | shares	853,363