Intersect ENT (XENT) 10-Q 9 May 16 2016 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2016	Apr. 30, 2016
Document And Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Mar. 31, 2016
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	Q1
Trading Symbol	XENT
Entity Registrant Name	Intersect ENT, Inc.
Entity Central Index Key	1,271,214
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		28,326,471

Condensed Balance Sheets

Condensed Balance Sheets - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015	[1]
Current assets:
Cash and cash equivalents	$ 37,960	$ 34,809
Short-term investments, available-for-sale	79,045	89,491
Accounts receivable, net	9,467	11,468
Inventory	4,933	3,949
Prepaid expenses and other current assets	1,767	1,495
Total current assets	133,172	141,212
Property and equipment, net	3,395	3,183
Other non-current assets	253	240
Total assets	136,820	144,635
Current liabilities:
Accounts payable	2,863	1,908
Accrued compensation	7,064	9,588
Other current liabilities	1,418	1,574
Total current liabilities	11,345	13,070
Deferred rent	1,282	1,334
Total liabilities	$ 12,627	$ 14,404
Commitments and contingencies (note 8)
Stockholders' equity:
Preferred stock, $0.001 par value; Authorized shares: 10,000 at March 31, 2016 and December 31, 2015; Issued and outstanding shares: none
Common stock, $0.001 par value; Authorized shares: 150,000 at March 31, 2016 and December 31, 2015; Issued and outstanding shares: 28,283 at March 31, 2016 and 28,159 at December 31, 2015	$ 28	$ 28
Additional paid-in capital	255,536	253,450
Accumulated other comprehensive income	105	8
Accumulated deficit	(131,476)	(123,255)
Total stockholders' equity	124,193	130,231
Total liabilities and stockholders' equity	$ 136,820	$ 144,635
[1]	Amounts have been derived from the December 31, 2015 audited financial statements included in the Company's Annual Report on Form 10-K filed with the Securities and Exchange Commission.

Condensed Balance Sheets (Paren

Condensed Balance Sheets (Parenthetical) - $ / shares	Mar. 31, 2016	Dec. 31, 2015	[1]
Statement of Financial Position [Abstract]
Preferred stock, par value	$ 0.001	$ 0.001
Preferred stock, shares authorized	10,000,000	10,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value	$ 0.001	$ 0.001
Common stock, shares authorized	150,000,000	150,000,000
Common stock, shares issued	28,283,000	28,159,000
Common stock, shares outstanding	28,283,000	28,159,000
[1]	Amounts have been derived from the December 31, 2015 audited financial statements included in the Company's Annual Report on Form 10-K filed with the Securities and Exchange Commission.

Condensed Statements of Operati

Condensed Statements of Operations and Comprehensive Loss - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Income Statement [Abstract]
Revenue	$ 16,692	$ 13,372
Cost of sales	3,210	2,792
Gross profit	13,482	10,580
Operating expenses:
Selling, general and administrative	17,393	12,620
Research and development	4,495	3,326
Total operating expenses	21,888	15,946
Loss from operations	(8,406)	(5,366)
Interest and other income (expense), net	185	28
Net loss	(8,221)	(5,338)
Other comprehensive income:
Unrealized gain on short-term investments	97
Comprehensive loss	$ (8,124)	$ (5,338)
Net loss per share, basic and diluted	$ (0.29)	$ (0.23)
Weighted average common shares used to compute net loss per share, basic and diluted	28,207	23,488

Condensed Statements of Cash Fl

Condensed Statements of Cash Flows - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016		Mar. 31, 2015
Operating activities:
Net loss	$ (8,221)		$ (5,338)
Adjustments to reconcile net loss to cash used in operating activities:
Depreciation and amortization	261		140
Stock-based compensation expense	1,887		778
Amortization of net investment premium paid	117		96
Changes in operating assets and liabilities:
Accounts receivable, net	2,001		339
Inventory	(984)		(279)
Prepaid expenses and other current assets	(272)		(317)
Other non-current assets	(13)
Accounts payable	989		(255)
Accrued compensation	(2,524)		(791)
Other current liabilities and deferred rent	(208)		55
Net cash used in operating activities	(6,967)		(5,572)
Investing activities:
Purchases of short-term investments	(41,673)		(8,286)
Maturities of short-term investments	52,099		14,548
Purchases of property and equipment	(508)		(293)
Net cash provided by investing activities	9,918		5,969
Financing activities:
Proceeds from issuance of common stock	200		424
Net cash provided by financing activities	200		424
Net increase in cash and cash equivalents	3,151		821
Cash and cash equivalents:
Beginning of the period	34,809	[1]	13,403
End of the period	$ 37,960		$ 14,224
[1]	Amounts have been derived from the December 31, 2015 audited financial statements included in the Company's Annual Report on Form 10-K filed with the Securities and Exchange Commission.

Organization

Organization	3 Months Ended
	Mar. 31, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Organization	1. Organization Description of Business Intersect ENT, Inc. (the “Company”) is incorporated in the state of Delaware and its facilities are located in Menlo Park, California. The Company is a commercial stage drug-device company committed to improving the quality of life for patients with ear, nose and throat conditions. The Company’s sole commercial products are the PROPEL and PROPEL mini drug releasing implants for patients undergoing sinus surgery to treat chronic sinusitis. The Company received approval from the U.S. Food and Drug Administration (“FDA”) for PROPEL in August 2011 and for PROPEL mini in November 2012. In the first half of 2013, the Company began scaling its U.S. direct commercial presence and currently sells its products only in the United States. Liquidity and Business Risks As of March 31, 2016, the Company had cash, cash equivalents and short-term investments of $117.0 million, and an accumulated deficit of $131.5 million. The Company expects its cash, cash equivalents and short-term investments will be sufficient to fund its operations through at least the next twelve months.

Summary of Significant Accounti

Summary of Significant Accounting Policies	3 Months Ended
	Mar. 31, 2016
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	2. Summary of Significant Accounting Policies Basis of Preparation The financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) and pursuant to the rules and regulations of the United States Securities and Exchange Commission (“SEC”). The interim financial data as of March 31, 2016, is unaudited and is not necessarily indicative of the results for the full year. In the opinion of the Company’s management, the interim data includes only normal and recurring adjustments necessary for a fair presentation of the Company’s financial results for the three months ended March 31, 2016 and 2015. Certain information and footnote disclosures normally included in annual financial statements prepared in accordance with U.S. GAAP have been condensed or omitted pursuant to SEC rules and regulations relating to interim financial statements. The accompanying condensed financial statements should be read in conjunction with the Company’s audited financial statements and notes thereto included in the Company’s Annual Report on Form 10-K (“Annual Report”) for the year ended December 31, 2015 filed with the SEC on February 25, 2016. Follow-on Offering In June 2015, the Company completed a follow-on offering by issuing 4,119,300 shares of common stock, including 537,300 shares pursuant to the full exercise by the underwriters of their option to purchase additional shares, at an offering price of $25.00 per share, for net proceeds of approximately $96.4 million, after deducting underwriting discounts and commissions of $6.2 million and offering expenses of $0.4 million. Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts and disclosures reported in the financial statements. Management uses significant judgment when making estimates related to its common stock valuation and related stock-based compensation, as well as certain accrued liabilities. Management bases its estimates on historical experience and on various other assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results could differ from those estimates. Significant Accounting Policies There have been no significant changes to the accounting policies during the three months ended March 31, 2016, as compared to the significant accounting policies described in Note 2 of the “Notes to Financial Statements” in the Company’s audited financial statements included in its Annual Report. Recent Accounting Pronouncements There have been no significant changes to the recent accounting pronouncements during the three months ended March 31, 2016, as compared to the recent accounting pronouncements described in Note 2 of the “Notes to Financial Statements” in the Company’s audited financial statements included in its Annual Report except as described below. In March 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2016-9, Improvements to Employee Share-Based Payment Accounting In February 2016, the FASB issued ASU No. 2016-2, Leases: Amendments to the FASB Accounting Standards Codification In January 2016, the FASB issued ASU No. 2016-1, Recognition and Measurement of Financial Assets and Financial Liabilities

Composition of Certain Financia

Composition of Certain Financial Statement Items	3 Months Ended
	Mar. 31, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Composition of Certain Financial Statement Items	3. Composition of Certain Financial Statement Items Accounts Receivable (in thousands): March 31, December 31, 2016 2015 Accounts receivable $ 9,611 $ 11,554 Allowance for doubtful accounts (144 ) (86 ) $ 9,467 $ 11,468 Inventory (in thousands): March 31, December 31, 2016 2015 Raw materials $ 1,072 $ 911 Work-in-process 296 187 Finished goods 3,565 2,851 $ 4,933 $ 3,949

Cash, Cash Equivalents and Shor

Cash, Cash Equivalents and Short-term Investments	3 Months Ended
	Mar. 31, 2016
Cash and Cash Equivalents [Abstract]
Cash, Cash Equivalents and Short-term Investments	4. Cash, Cash Equivalents and Short-term Investments The following is a summary of cash, cash equivalents and short-term investments, available-for-sale, by type of instrument (in thousands): March 31, December 31, 2016 2015 Amortized Gross Unrealized Estimated Amortized Gross Unrealized Estimated Cost Gains Losses Fair Value Cost Gains Losses Fair Value Cash $ 3,026 $ — $ — $ 3,026 $ 2,702 $ — $ — $ 2,702 Money market funds 26,934 — — 26,934 26,856 — — 26,856 Corporate debt securities 47,582 12 (1 ) 47,593 57,546 — (29 ) 57,517 Commercial paper 39,358 94 — 39,452 37,188 37 — 37,225 $ 116,900 $ 106 $ (1 ) $ 117,005 $ 124,292 $ 37 $ (29 ) $ 124,300 Reported as: Cash and cash equivalents $ 37,960 $ 34,809 Short-term investments, available-for-sale 79,045 89,491 $ 117,005 $ 124,300 Management has the intent and ability, if necessary, to liquidate any of the Company’s investments in order to meet the Company’s liquidity needs in the next 12 months. Accordingly, investments with contractual maturities greater than one year from the date of purchase, if any, are available-for-sale and classified as short-term on the accompanying balance sheets. As of March 31, 2016 and December 31, 2015, the Company had no investments with a maturity of greater than one year. Based on an evaluation of securities that have been in a loss position, the Company did not recognize any other-than-temporary impairment charges during the three months ended March 31, 2016 and year ended December 31, 2015. The Company considered various factors which included a credit and liquidity assessment of the underlying securities and the Company’s intent and ability to hold the underlying securities until the estimated date of recovery of its amortized cost.

Fair Value of Financial Instrum

Fair Value of Financial Instruments	3 Months Ended
	Mar. 31, 2016
Fair Value Disclosures [Abstract]
Fair Value of Financial Instruments	5. Fair Value of Financial Instruments The Company measures certain financial assets and liabilities at fair value on a recurring basis, including cash equivalents, short-term investments, the convertible preferred stock warrant liability and the convertible preferred stock financing option. Fair value is 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 a liability. A three-tier fair value hierarchy is established as a basis for considering such assumptions and for inputs used in the valuation methodologies in measuring fair value: Level 1 – Observable inputs such as quoted prices (unadjusted) for identical assets or liabilities in active markets. Level 2 – Include other inputs that are based upon quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active and model-based valuation techniques for which all significant inputs are observable in the market or can be derived from observable market data. Where applicable, these models project future cash flows and discount the future amounts to a present value using market-based observable inputs including interest rate curves, foreign exchange rates, and credit ratings. Level 3 – Unobservable inputs that are supported by little or no market activities, which would require the Company to develop its own assumptions. The fair value hierarchy also requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. Cash, Cash Equivalents and Short-term Investments The following is a summary of cash, cash equivalents and short-term investments, available-for-sale, by type of instrument measured at fair value on a recurring basis (in thousands): March 31, 2016 December 31, 2015 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Cash $ 3,026 $ — $ — $ 3,026 $ 2,702 $ — $ — $ 2,702 Money market funds 26,934 — — 26,934 26,856 — — 26,856 Corporate debt securities — 47,593 — 47,593 — 57,517 — 57,517 Commercial paper — 39,452 — 39,452 — 37,225 — 37,225 $ 29,960 $ 87,045 $ — $ 117,005 $ 29,558 $ 94,742 $ — $ 124,300 Reported as: Cash and cash equivalents $ 37,960 $ 34,809 Short-term investments, available-for-sale 79,045 89,491 $ 117,005 $ 124,300 There were no transfers in and out of Level 1 and Level 2 during the three months ended March 31, 2016 and year ended December 31, 2015.

Stock-based Compensation Expens

Stock-based Compensation Expense	3 Months Ended
	Mar. 31, 2016
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Stock-based Compensation Expense	6. Stock-based Compensation Expense 2014 Equity Incentive Plan Under the Company’s 2014 Equity Incentive Plan (the “2014 Plan”), the number of shares of common stock reserved for issuance will automatically increase on January 1 of each year, beginning on January 1, 2015, and continuing through and including January 1, 2024, by 3% of the total number of shares of the Company’s capital stock outstanding on December 31 of the preceding calendar year, or a lesser number of shares determined by the Company’s board of directors. On January 1, 2016, the total number of shares of common stock reserved for issuance increased by 844,774 shares to 6,296,102 shares. A summary of the Company’s stock option activity and related information is as follows (options in thousands): Three Months Ended March 31, 2016 Options Price Outstanding, beginning of period 2,946 $ 12.24 Granted 1,124 18.78 Exercised (123 ) 1.62 Forfeited (30 ) 5.66 Expired (72 ) 21.78 Outstanding, end of period 3,845 14.36 Vested and expected to vest 3,654 14.01 Exercisable 1,618 8.06 As of March 31, 2016, the aggregate pre-tax intrinsic value of options outstanding was $22.0 million and options outstanding and exercisable was $18.8 million, the weighted-average remaining contractual term of options outstanding was 8.5 years and options outstanding and exercisable was 7.4 years. The aggregate pre-tax intrinsic value of options exercised was $2.0 million and $4.6 million during the three months ended March 31, 2016 and 2015, respectively. Total stock-based compensation expense recognized is as follows (in thousands): Three Months Ended March 31, 2016 2015 Cost of sales $ 115 $ 39 Selling, general and administrative 1,437 638 Research and development 335 101 $ 1,887 $ 778 As of March 31, 2016, the amount of unearned stock-based compensation currently estimated to be expensed from now through the year 2020 related to unvested employee stock-based payment awards was $18.8 million and the weighted average period over which the unearned stock-based compensation is expected to be recognized was 3.1 years. If there are any modifications or cancellations of the underlying unvested securities, the Company may be required to accelerate, increase or cancel any remaining unearned stock-based compensation expense. Future stock-based compensation expense and unearned stock-based compensation will increase to the extent that the Company grants additional share-based payments. The fair value of options granted to employees or directors during the periods presented below were estimated as of the grant date using the Black-Scholes model assuming the weighted average assumptions listed in the following table: Three Months Ended March 31, 2016 2015 Expected term (years) 6.0 6.0 Expected volatility 44 % 49 % Risk-free interest rate 1.6 % 1.6 % Dividend yield 0.0 % 0.0 % Weighted average fair value $ 8.23 $ 10.51 2014 Employee Stock Purchase Plan In July 2014, the Company’s board of directors approved the 2014 Employee Stock Purchase Plan (“2014 ESPP”). The 2014 ESPP became effective on the effective date of the IPO. A total of 496,092 shares were initially reserved for issuance under the 2014 ESPP. In March 2015, the Company approved the implementation of the 2014 ESPP to begin in May 2015. In November 2015, 53,242 shares were issued. No shares were issued during the three months ended March 31, 2016. The fair value of options granted under the 2014 ESPP to employees was estimated as of the grant date using the Black-Scholes model assuming the weighted average assumptions listed in the following table: Three Months Ended 2016 2015 Expected term (years) 1.3 — Expected volatility 47 % — Risk-free interest rate 0.6 % — Dividend yield 0.0 % — Weighted average fair value $ 6.28 $ —

Net Loss per Share

Net Loss per Share	3 Months Ended
	Mar. 31, 2016
Earnings Per Share [Abstract]
Net Loss per Share	7. Net Loss per Share Basic net loss per share is computed by dividing the net loss by the weighted average number of shares of common stock outstanding during the period. Diluted net loss per share is computed by dividing the net loss by the weighted average number of shares of common stock and dilutive potential shares of common stock outstanding during the period. Because the Company has reported a net loss for all periods presented, diluted net loss per share is the same as basic net loss per share for those periods as all potentially dilutive shares consisting of stock options were antidilutive in those periods. The Company allocates no loss to participating securities because the participating securities have no contractual obligation to share in the losses of the Company. Net loss per share was determined as follows (in thousands, except per share amounts): Three Months Ended 2016 2015 Net loss $ (8,221 ) $ (5,338 ) Weighted average common stock outstanding 28,207 23,488 Net loss per share, basic and diluted $ (0.29 ) $ (0.23 ) The following potentially dilutive securities outstanding have been excluded from the computations of weighted average shares outstanding because such securities have an antidilutive impact due to losses reported (in common stock equivalent shares, in thousands): Three Months Ended 2016 2015 Common stock options 3,845 3,126 ESPP 252 — 4,097 3,126

Commitments and Contingencies

Commitments and Contingencies	3 Months Ended
	Mar. 31, 2016
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	8. Commitments and Contingencies Contingencies In the normal course of business, the Company enters into contracts and agreements that contain a variety of representations and warranties and provide for general indemnifications. The Company’s exposure under these agreements is unknown because it involves claims that may be made against the Company in the future, but have not yet been made. The Company accrues a liability for such matters when it is probable that future expenditures will be made and such expenditures can be reasonably estimated. Indemnification The Company’s amended and restated certificate of incorporation contains provisions limiting the liability of directors, and its amended and restated bylaws provide that the Company will indemnify each of its directors to the fullest extent permitted under Delaware law. The Company’s amended and restated certificate of incorporation and amended and restated bylaws also provide its board of directors with discretion to indemnify its officers and employees when determined appropriate by the board. In addition, the Company has entered and expects to continue to enter into agreements to indemnify its directors and executive officers. Litigation The Company is not currently a party to any material legal proceedings. The Company may at times be involved in litigation and other legal claims in the ordinary course of business. When appropriate in the Company’s estimation, it may record reserves in its financial statements for pending litigation and other claims.

Summary of Significant Accoun14

Summary of Significant Accounting Policies (Policies)	3 Months Ended
	Mar. 31, 2016
Accounting Policies [Abstract]
Basis of Preparation	Basis of Preparation The financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) and pursuant to the rules and regulations of the United States Securities and Exchange Commission (“SEC”). The interim financial data as of March 31, 2016, is unaudited and is not necessarily indicative of the results for the full year. In the opinion of the Company’s management, the interim data includes only normal and recurring adjustments necessary for a fair presentation of the Company’s financial results for the three months ended March 31, 2016 and 2015. Certain information and footnote disclosures normally included in annual financial statements prepared in accordance with U.S. GAAP have been condensed or omitted pursuant to SEC rules and regulations relating to interim financial statements. The accompanying condensed financial statements should be read in conjunction with the Company’s audited financial statements and notes thereto included in the Company’s Annual Report on Form 10-K (“Annual Report”) for the year ended December 31, 2015 filed with the SEC on February 25, 2016.
Follow-on Offering	Follow-on Offering In June 2015, the Company completed a follow-on offering by issuing 4,119,300 shares of common stock, including 537,300 shares pursuant to the full exercise by the underwriters of their option to purchase additional shares, at an offering price of $25.00 per share, for net proceeds of approximately $96.4 million, after deducting underwriting discounts and commissions of $6.2 million and offering expenses of $0.4 million.
Use of Estimates	Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts and disclosures reported in the financial statements. Management uses significant judgment when making estimates related to its common stock valuation and related stock-based compensation, as well as certain accrued liabilities. Management bases its estimates on historical experience and on various other assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results could differ from those estimates.
Significant Accounting Policies	Significant Accounting Policies There have been no significant changes to the accounting policies during the three months ended March 31, 2016, as compared to the significant accounting policies described in Note 2 of the “Notes to Financial Statements” in the Company’s audited financial statements included in its Annual Report.
Recent Accounting Pronouncements	Recent Accounting Pronouncements There have been no significant changes to the recent accounting pronouncements during the three months ended March 31, 2016, as compared to the recent accounting pronouncements described in Note 2 of the “Notes to Financial Statements” in the Company’s audited financial statements included in its Annual Report except as described below. In March 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2016-9, Improvements to Employee Share-Based Payment Accounting In February 2016, the FASB issued ASU No. 2016-2, Leases: Amendments to the FASB Accounting Standards Codification In January 2016, the FASB issued ASU No. 2016-1, Recognition and Measurement of Financial Assets and Financial Liabilities

Composition of Certain Financ15

Composition of Certain Financial Statement Items (Tables)	3 Months Ended
	Mar. 31, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Schedule of Accounts Receivable	Accounts Receivable (in thousands): March 31, December 31, 2016 2015 Accounts receivable $ 9,611 $ 11,554 Allowance for doubtful accounts (144 ) (86 ) $ 9,467 $ 11,468
Components of Inventory	Inventory (in thousands): March 31, December 31, 2016 2015 Raw materials $ 1,072 $ 911 Work-in-process 296 187 Finished goods 3,565 2,851 $ 4,933 $ 3,949

Cash, Cash Equivalents and Sh16

Cash, Cash Equivalents and Short-term Investments (Tables)	3 Months Ended
	Mar. 31, 2016
Cash and Cash Equivalents [Abstract]
Summary of Cash, Cash Equivalents and Available-for-Sale Investments by Type of Instrument	The following is a summary of cash, cash equivalents and short-term investments, available-for-sale, by type of instrument (in thousands): March 31, December 31, 2016 2015 Amortized Gross Unrealized Estimated Amortized Gross Unrealized Estimated Cost Gains Losses Fair Value Cost Gains Losses Fair Value Cash $ 3,026 $ — $ — $ 3,026 $ 2,702 $ — $ — $ 2,702 Money market funds 26,934 — — 26,934 26,856 — — 26,856 Corporate debt securities 47,582 12 (1 ) 47,593 57,546 — (29 ) 57,517 Commercial paper 39,358 94 — 39,452 37,188 37 — 37,225 $ 116,900 $ 106 $ (1 ) $ 117,005 $ 124,292 $ 37 $ (29 ) $ 124,300 Reported as: Cash and cash equivalents $ 37,960 $ 34,809 Short-term investments, available-for-sale 79,045 89,491 $ 117,005 $ 124,300

Fair Value of Financial Instr17

Fair Value of Financial Instruments (Tables)	3 Months Ended
	Mar. 31, 2016
Fair Value Disclosures [Abstract]
Summary of Cash, Cash Equivalents and Available-for-Sale Investments Measured at Fair Value on Recurring Basis	The following is a summary of cash, cash equivalents and short-term investments, available-for-sale, by type of instrument measured at fair value on a recurring basis (in thousands): March 31, 2016 December 31, 2015 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Cash $ 3,026 $ — $ — $ 3,026 $ 2,702 $ — $ — $ 2,702 Money market funds 26,934 — — 26,934 26,856 — — 26,856 Corporate debt securities — 47,593 — 47,593 — 57,517 — 57,517 Commercial paper — 39,452 — 39,452 — 37,225 — 37,225 $ 29,960 $ 87,045 $ — $ 117,005 $ 29,558 $ 94,742 $ — $ 124,300 Reported as: Cash and cash equivalents $ 37,960 $ 34,809 Short-term investments, available-for-sale 79,045 89,491 $ 117,005 $ 124,300

Stock-based Compensation Expe18

Stock-based Compensation Expense (Tables)	3 Months Ended
	Mar. 31, 2016
Summary of Stock Option Activity	A summary of the Company’s stock option activity and related information is as follows (options in thousands): Three Months Ended March 31, 2016 Options Price Outstanding, beginning of period 2,946 $ 12.24 Granted 1,124 18.78 Exercised (123 ) 1.62 Forfeited (30 ) 5.66 Expired (72 ) 21.78 Outstanding, end of period 3,845 14.36 Vested and expected to vest 3,654 14.01 Exercisable 1,618 8.06
2014 Equity Incentive Plan [Member]
Summary of Stock Based Compensation Recognized	Total stock-based compensation expense recognized is as follows (in thousands): Three Months Ended March 31, 2016 2015 Cost of sales $ 115 $ 39 Selling, general and administrative 1,437 638 Research and development 335 101 $ 1,887 $ 778
Summary of Weighted Average Assumptions Used to Estimate Options Using Black-Scholes Model	The fair value of options granted to employees or directors during the periods presented below were estimated as of the grant date using the Black-Scholes model assuming the weighted average assumptions listed in the following table: Three Months Ended March 31, 2016 2015 Expected term (years) 6.0 6.0 Expected volatility 44 % 49 % Risk-free interest rate 1.6 % 1.6 % Dividend yield 0.0 % 0.0 % Weighted average fair value $ 8.23 $ 10.51
2014 Employee Stock Purchase Plan [Member]
Summary of Weighted Average Assumptions Used to Estimate Options Using Black-Scholes Model	The fair value of options granted under the 2014 ESPP to employees was estimated as of the grant date using the Black-Scholes model assuming the weighted average assumptions listed in the following table: Three Months Ended 2016 2015 Expected term (years) 1.3 — Expected volatility 47 % — Risk-free interest rate 0.6 % — Dividend yield 0.0 % — Weighted average fair value $ 6.28 $ —

Net Loss per Share (Tables)

Net Loss per Share (Tables)	3 Months Ended
	Mar. 31, 2016
Earnings Per Share [Abstract]
Schedule of Net Loss Per Share	Net loss per share was determined as follows (in thousands, except per share amounts): Three Months Ended 2016 2015 Net loss $ (8,221 ) $ (5,338 ) Weighted average common stock outstanding 28,207 23,488 Net loss per share, basic and diluted $ (0.29 ) $ (0.23 )
Schedule of Potentially Dilutive Securities Outstanding Excluded from the Computations of Diluted Weighted Average Shares Outstanding	The following potentially dilutive securities outstanding have been excluded from the computations of weighted average shares outstanding because such securities have an antidilutive impact due to losses reported (in common stock equivalent shares, in thousands): Three Months Ended 2016 2015 Common stock options 3,845 3,126 ESPP 252 — 4,097 3,126

Organization - Additional Infor

Organization - Additional Information (Detail) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015	[1]
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Cash, cash equivalents and short-term investments	$ 117,000
Accumulated deficit	$ (131,476)	$ (123,255)
[1]	Amounts have been derived from the December 31, 2015 audited financial statements included in the Company's Annual Report on Form 10-K filed with the Securities and Exchange Commission.

Summary of Significant Accoun21

Summary of Significant Accounting Policies - Additional Information (Detail) - Common Stock [Member] $ / shares in Units, $ in Millions	1 Months Ended
	Jun. 30, 2015USD ($)$ / sharesshares
Over-Allotment Option [Member]
Summary Of Significant Accounting Policies [Line Items]
Number of shares issued | shares	537,300
Follow-on Public Offering [Member]
Summary Of Significant Accounting Policies [Line Items]
Number of shares issued | shares	4,119,300
Common stock issued during period, price per share | $ / shares	$ 25
Net proceeds from public offering	$ 96.4
Underwriting discounts and commissions	6.2
Public offering, expenses	$ 0.4

Composition of Certain Financ22

Composition of Certain Financial Statement Items - Accounts Receivable (Detail) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Receivables [Abstract]
Accounts receivable	$ 9,611	$ 11,554
Allowance for doubtful accounts	(144)	(86)
Accounts receivable, net	$ 9,467	$ 11,468	[1]
[1]	Amounts have been derived from the December 31, 2015 audited financial statements included in the Company's Annual Report on Form 10-K filed with the Securities and Exchange Commission.

Composition of Certain Financ23

Composition of Certain Financial Statement Items - Components of Inventory (Detail) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Inventory Disclosure [Abstract]
Raw materials	$ 1,072	$ 911
Work-in-process	296	187
Finished goods	3,565	2,851
Inventory, net	$ 4,933	$ 3,949	[1]
[1]	Amounts have been derived from the December 31, 2015 audited financial statements included in the Company's Annual Report on Form 10-K filed with the Securities and Exchange Commission.

Cash, Cash Equivalents and Sh24

Cash, Cash Equivalents and Short-term Investments - Summary of Cash, Cash Equivalents and Available-for-Sale Investments by Type of Instrument (Detail) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Net Investment [Line Items]
Cash, cash equivalents and available-for-sale investments, Amortized Cost	$ 116,900	$ 124,292
Cash, cash equivalents and available-for-sale investments, Gross Unrealized Gains	106	37
Cash, cash equivalents and available-for-sale investments, Gross Unrealized Losses	(1)	(29)
Cash, cash equivalents and available-for-sale investments, Estimated Fair Value	117,005	124,300
Cash and Cash Equivalents [Member]
Net Investment [Line Items]
Cash, cash equivalents and available-for-sale investments, Estimated Fair Value	37,960	34,809
Short-term investments, available-for-sale [Member]
Net Investment [Line Items]
Cash, cash equivalents and available-for-sale investments, Estimated Fair Value	79,045	89,491
Cash [Member]
Net Investment [Line Items]
Cash, cash equivalents and available-for-sale investments, Amortized Cost	3,026	2,702
Cash, cash equivalents and available-for-sale investments, Estimated Fair Value	3,026	2,702
Money Market Funds [Member]
Net Investment [Line Items]
Cash, cash equivalents and available-for-sale investments, Amortized Cost	26,934	26,856
Cash, cash equivalents and available-for-sale investments, Estimated Fair Value	26,934	26,856
Corporate Debt Securities [Member]
Net Investment [Line Items]
Cash, cash equivalents and available-for-sale investments, Amortized Cost	47,582	57,546
Cash, cash equivalents and available-for-sale investments, Gross Unrealized Gains	12
Cash, cash equivalents and available-for-sale investments, Gross Unrealized Losses	(1)	(29)
Cash, cash equivalents and available-for-sale investments, Estimated Fair Value	47,593	57,517
Commercial Paper [Member]
Net Investment [Line Items]
Cash, cash equivalents and available-for-sale investments, Amortized Cost	39,358	37,188
Cash, cash equivalents and available-for-sale investments, Gross Unrealized Gains	94	37
Cash, cash equivalents and available-for-sale investments, Estimated Fair Value	$ 39,452	$ 37,225

Cash, Cash Equivalents and Sh25

Cash, Cash Equivalents and Short-term Investments - Additional Information (Detail) - USD ($)	3 Months Ended	12 Months Ended
	Mar. 31, 2016	Dec. 31, 2015
Investments Schedule [Abstract]
Investments with a maturity of greater than one year	$ 0	$ 0
Other-than-temporary impairment charges	$ 0	$ 0

Fair Value of Financial Instr26

Fair Value of Financial Instruments - Summary of Cash, Cash Equivalents and Short-Term Investments, Available-for-Sale, by Type of Instrument (Detail) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015		Mar. 31, 2015	Dec. 31, 2014
Net Investment [Line Items]
Cash and cash equivalents	$ 37,960	$ 34,809	[1]	$ 14,224	$ 13,403
Cash and cash equivalents and short-term investments, available-for-sale	117,000
Fair Value on Recurring Basis [Member]
Net Investment [Line Items]
Cash and cash equivalents	37,960	34,809
Short-term investments, available-for-sale	79,045	89,491
Cash and cash equivalents and short-term investments, available-for-sale	117,005	124,300
Fair Value on Recurring Basis [Member] | Cash [Member]
Net Investment [Line Items]
Cash and cash equivalents and short-term investments, available-for-sale	3,026	2,702
Fair Value on Recurring Basis [Member] | Money Market Funds [Member]
Net Investment [Line Items]
Cash and cash equivalents and short-term investments, available-for-sale	26,934	26,856
Fair Value on Recurring Basis [Member] | Corporate Debt Securities [Member]
Net Investment [Line Items]
Cash and cash equivalents and short-term investments, available-for-sale	47,593	57,517
Fair Value on Recurring Basis [Member] | Commercial Paper [Member]
Net Investment [Line Items]
Cash and cash equivalents and short-term investments, available-for-sale	39,452	37,225
Level 1 [Member] | Fair Value on Recurring Basis [Member]
Net Investment [Line Items]
Cash and cash equivalents and short-term investments, available-for-sale	29,960	29,558
Level 1 [Member] | Fair Value on Recurring Basis [Member] | Cash [Member]
Net Investment [Line Items]
Cash and cash equivalents and short-term investments, available-for-sale	3,026	2,702
Level 1 [Member] | Fair Value on Recurring Basis [Member] | Money Market Funds [Member]
Net Investment [Line Items]
Cash and cash equivalents and short-term investments, available-for-sale	26,934	26,856
Level 2 [Member] | Fair Value on Recurring Basis [Member]
Net Investment [Line Items]
Cash and cash equivalents and short-term investments, available-for-sale	87,045	94,742
Level 2 [Member] | Fair Value on Recurring Basis [Member] | Corporate Debt Securities [Member]
Net Investment [Line Items]
Cash and cash equivalents and short-term investments, available-for-sale	47,593	57,517
Level 2 [Member] | Fair Value on Recurring Basis [Member] | Commercial Paper [Member]
Net Investment [Line Items]
Cash and cash equivalents and short-term investments, available-for-sale	$ 39,452	$ 37,225
[1]	Amounts have been derived from the December 31, 2015 audited financial statements included in the Company's Annual Report on Form 10-K filed with the Securities and Exchange Commission.

Fair Value of Financial Instr27

Fair Value of Financial Instruments - Additional Information (Detail) - USD ($)	Mar. 31, 2016	Dec. 31, 2015
Fair Value Disclosures [Abstract]
Transfer of assets from level 1 to level 2	$ 0	$ 0
Transfer of liabilities from level 1 to level 2	0	0
Transfer of assets from level 2 to level 1	0	0
Transfer of liabilities from level 2 to level 1	$ 0	$ 0

Stock-Based Compensation Expe28

Stock-Based Compensation Expense - Additional Information (Detail) - USD ($) $ in Millions	Jan. 01, 2016	Nov. 30, 2015	Mar. 31, 2016	Mar. 31, 2015	Jul. 23, 2014
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Aggregate pre-tax intrinsic value of options outstanding and exercisable			$ 18.8
Aggregate pre-tax intrinsic value of options outstanding			22
Aggregate pre-tax intrinsic value of options exercised			$ 2	$ 4.6
Weighted-average remaining contractual term of options outstanding			8 years 6 months
Weighted-average remaining contractual term of options exercisable			7 years 4 months 24 days
Unearned stock-based compensation			$ 18.8
Weighted average period for unearned stock-based compensation to be recognized			3 years 1 month 6 days
2014 Employee Stock Purchase Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares authorized for future issuance					496,092
Shares Issued		53,242	0
2014 Equity Incentive Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Percentage of shares outstanding			3.00%
Common stock, capital shares reserved for future issuance, increase during period	844,774
Shares reserved for issuance	6,296,102

Stock-Based Compensation Expe29

Stock-Based Compensation Expense - Summary of Stock Option Activity (Detail) shares in Thousands	3 Months Ended
	Mar. 31, 2016$ / sharesshares
Equity [Abstract]
Options outstanding, beginning of period | shares	2,946
Options granted | shares	1,124
Options exercised | shares	(123)
Options forfeited | shares	(30)
Options expired | shares	(72)
Options outstanding, end of period | shares	3,845
Options vested and expected to vest | shares	3,654
Options exercisable | shares	1,618
Options price, outstanding, beginning of period | $ / shares	$ 12.24
Options price, granted | $ / shares	18.78
Options price, exercised | $ / shares	1.62
Options price, forfeited | $ / shares	5.66
Option price, expired | $ / shares	21.78
Options price, outstanding, end of period | $ / shares	14.36
Options price, vested and expected to vest | $ / shares	14.01
Options price, exercisable | $ / shares	$ 8.06

Stock-Based Compensation Expe30

Stock-Based Compensation Expense - Summary of Stock Based Compensation Recognized (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense	$ 1,887	$ 778
Cost of Sales [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense	115	39
Selling, General and Administrative [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense	1,437	638
Research and Development [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense	$ 335	$ 101

Stock-Based Compensation Expe31

Stock-Based Compensation Expense - Summary of Weighted Average Assumptions Used to Estimate Options Using Black-Scholes Model (Detail) - $ / shares	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
2014 Employee Stock Purchase Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected term (years)	1 year 3 months 18 days
Expected volatility	47.00%
Risk-free interest rate	0.60%
Dividend yield	0.00%
Weighted average fair value	$ 6.28
2014 Equity Incentive Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected term (years)	6 years	6 years
Expected volatility	44.00%	49.00%
Risk-free interest rate	1.60%	1.60%
Dividend yield	0.00%	0.00%
Weighted average fair value	$ 8.23	$ 10.51

Net Loss per Share - Additional

Net Loss per Share - Additional Information (Detail)	3 Months Ended
	Mar. 31, 2016USD ($)
Earnings Per Share [Abstract]
Loss allocated to participating securities	$ 0
Contractual obligation	$ 0

Net Loss per Share - Schedule o

Net Loss per Share - Schedule of Net Loss Per Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Earnings Per Share [Abstract]
Net loss	$ (8,221)	$ (5,338)
Weighted average common stock outstanding	28,207	23,488
Net loss per share, basic and diluted	$ (0.29)	$ (0.23)

Net Loss per Share - Schedule34

Net Loss per Share - Schedule of Potentially Dilutive Securities Outstanding Excluded from the Computations of Diluted Weighted Average Shares Outstanding (Detail) - shares shares in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of diluted weighted average shares outstanding	4,097	3,126
2014 Employee Stock Purchase Plan [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of diluted weighted average shares outstanding	252
Common Stock Options [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of diluted weighted average shares outstanding	3,845	3,126