Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Jan. 31, 2018 | Jun. 30, 2017 | |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2017 | ||
Document Fiscal Year Focus | 2,017 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | XENT | ||
Entity Registrant Name | INTERSECT ENT, INC. | ||
Entity Central Index Key | 1,271,214 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 29,804,937 | ||
Entity Public Float | $ 702,909,000 |
Balance Sheets
Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Current assets: | ||
Cash and cash equivalents | $ 19,837 | $ 9,859 |
Short-term investments, available-for-sale | 82,483 | 94,086 |
Accounts receivable, net | 16,589 | 14,421 |
Inventory | 8,474 | 5,613 |
Prepaid expenses and other current assets | 2,908 | 1,313 |
Total current assets | 130,291 | 125,292 |
Property and equipment, net | 4,848 | 4,127 |
Other non-current assets | 436 | 358 |
Total assets | 135,575 | 129,777 |
Current liabilities: | ||
Accounts payable | 3,400 | 3,267 |
Accrued compensation | 13,152 | 10,152 |
Other current liabilities | 1,125 | 945 |
Total current liabilities | 17,677 | 14,364 |
Deferred rent and other non-current liabilities | 679 | 1,016 |
Total liabilities | 18,356 | 15,380 |
Commitments and contingencies (note 7) | ||
Stockholders' equity: | ||
Preferred stock, $0.001 par value; Authorized shares: 10,000 at December 31, 2017 and 2016; Issued and outstanding shares: none | ||
Common stock, $0.001 par value; Authorized shares: 150,000 at December 31, 2017 and 2016; Issued and outstanding shares: 29,678 and 28,673 at December 31, 2017 and 2016, respectively | 30 | 29 |
Additional paid-in capital | 282,121 | 262,882 |
Accumulated other comprehensive loss | (92) | (37) |
Accumulated deficit | (164,840) | (148,477) |
Total stockholders' equity | 117,219 | 114,397 |
Total liabilities and stockholders' equity | $ 135,575 | $ 129,777 |
Balance Sheets (Parenthetical)
Balance Sheets (Parenthetical) - $ / shares | Dec. 31, 2017 | Dec. 31, 2016 |
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 | 29,678,000 | 28,673,000 |
Common stock, shares outstanding | 29,678,000 | 28,673,000 |
Statements of Operations and Co
Statements of Operations and Comprehensive Loss - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Statement [Abstract] | |||
Revenue | $ 96,301 | $ 78,708 | $ 61,593 |
Cost of sales | 15,499 | 13,003 | 12,288 |
Gross profit | 80,802 | 65,705 | 49,305 |
Operating expenses: | |||
Selling, general and administrative | 80,045 | 72,926 | 59,637 |
Research and development | 18,360 | 18,890 | 16,608 |
Total operating expenses | 98,405 | 91,816 | 76,245 |
Loss from operations | (17,603) | (26,111) | (26,940) |
Interest income and other, net | 1,240 | 889 | 306 |
Net loss | (16,363) | (25,222) | (26,634) |
Other comprehensive (loss) income: | |||
Unrealized (loss) gain on short-term investments | (55) | (45) | 8 |
Comprehensive loss | $ (16,418) | $ (25,267) | $ (26,626) |
Net loss per share, basic and diluted | $ (0.56) | $ (0.89) | $ (1.02) |
Weighted average common shares used to compute net loss per share, basic and diluted | 29,119 | 28,420 | 26,159 |
Statements of Stockholder's Equ
Statements of Stockholder's Equity - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Accumulated Deficit [Member] |
Beginning balance, Value at Dec. 31, 2014 | $ 53,812 | $ 23 | $ 150,410 | $ (96,621) | |
Beginning balance, Shares at Dec. 31, 2014 | 23,379 | ||||
Issuance of common stock upon exercise of stock options, Value | 909 | $ 1 | 908 | ||
Issuance of common stock upon exercise of stock options, Shares | 560 | ||||
Issuance of common stock through employee stock purchase plan, Values | 811 | 811 | |||
Issuance of common stock through employee stock purchase plan, Shares | 53 | ||||
Issuance of common stock upon exercise of warrants, Value | 69 | 69 | |||
Issuance of common stock upon exercise of warrants, Shares | 48 | ||||
Issuance of common stock for initial public/follow-on offering, net of issuance costs, Value | 96,392 | $ 4 | 96,388 | ||
Issuance of common stock for initial public/follow-on offering, net of issuance costs, Shares | 4,119 | ||||
Stock-based compensation expense | 4,864 | 4,864 | |||
Unrealized gain (loss) on short-term investments | 8 | $ 8 | |||
Net loss | (26,634) | (26,634) | |||
Ending balance, Value at Dec. 31, 2015 | 130,231 | $ 28 | 253,450 | 8 | (123,255) |
Ending balance, Shares at Dec. 31, 2015 | 28,159 | ||||
Issuance of common stock upon exercise of stock options, Value | 552 | $ 1 | 551 | ||
Issuance of common stock upon exercise of stock options, Shares | 379 | ||||
Issuance of common stock through employee stock purchase plan, Values | 1,414 | 1,414 | |||
Issuance of common stock through employee stock purchase plan, Shares | 135 | ||||
Stock-based compensation expense | 7,467 | 7,467 | |||
Unrealized gain (loss) on short-term investments | (45) | (45) | |||
Net loss | (25,222) | (25,222) | |||
Ending balance, Value at Dec. 31, 2016 | 114,397 | $ 29 | 262,882 | (37) | (148,477) |
Ending balance, Shares at Dec. 31, 2016 | 28,673 | ||||
Issuance of common stock upon exercise of stock options, Value | 7,690 | $ 1 | 7,689 | ||
Issuance of common stock upon exercise of stock options, Shares | 849 | ||||
Issuance of common stock through employee stock purchase plan, Values | 1,730 | 1,730 | |||
Issuance of common stock through employee stock purchase plan, Shares | 156 | ||||
Stock-based compensation expense | 9,820 | 9,820 | |||
Unrealized gain (loss) on short-term investments | (55) | (55) | |||
Net loss | (16,363) | (16,363) | |||
Ending balance, Value at Dec. 31, 2017 | $ 117,219 | $ 30 | $ 282,121 | $ (92) | $ (164,840) |
Ending balance, Shares at Dec. 31, 2017 | 29,678 |
Statements of Cash Flows
Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Operating activities: | |||
Net loss | $ (16,363) | $ (25,222) | $ (26,634) |
Adjustments to reconcile net loss to cash used in operating activities: | |||
Depreciation and amortization | 1,464 | 1,166 | 826 |
Stock-based compensation expense | 9,820 | 7,467 | 4,864 |
Amortization of net investment premium | 19 | 148 | 682 |
Loss on sales of short-term investments | 20 | ||
Changes in operating assets and liabilities: | |||
Accounts receivable, net | (2,168) | (2,953) | (3,131) |
Inventory | (2,861) | (1,664) | (1,402) |
Prepaid expenses and other assets | (914) | 202 | (544) |
Accounts payable | 203 | 1,180 | (230) |
Accrued compensation | 3,000 | 564 | 4,503 |
Deferred rent and other liabilities | (241) | (947) | 959 |
Net cash used in operating activities | (8,041) | (20,059) | (20,087) |
Investing activities: | |||
Purchases of short-term investments | (116,622) | (153,919) | (184,672) |
Sales of short-term investments | 6,516 | ||
Maturities of short-term investments | 128,151 | 149,131 | 123,011 |
Purchases of property and equipment | (2,281) | (2,069) | (1,524) |
Net cash provided by (used in) investing activities | 9,248 | (6,857) | (56,669) |
Financing activities: | |||
Proceeds from issuance of common stock | 8,771 | 1,966 | 1,770 |
Proceeds from public offering, net of issuance costs | 96,392 | ||
Net cash provided by financing activities | 8,771 | 1,966 | 98,162 |
Net increase (decrease) in cash and cash equivalents | 9,978 | (24,950) | 21,406 |
Cash and cash equivalents: | |||
Beginning of the period | 9,859 | 34,809 | 13,403 |
End of the period | 19,837 | 9,859 | 34,809 |
Non-cash investing activities: | |||
Property and equipment included in accounts payable | $ 146 | $ 215 | $ 43 |
Organization
Organization | 12 Months Ended |
Dec. 31, 2017 | |
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 drug delivery company committed to improving the quality of life for patients with ear, nose and throat conditions. The Company’s approved and in-development ® ® ® ® TM Liquidity and Business Risks As of December 31, 2017, the Company had cash, cash equivalents and short-term investments of $102.3 million, and an accumulated deficit of $164.8 million. The Company expects its cash, cash equivalents and short-term investments will be sufficient to fund its operations through at least twelve months after the date the financial statements are issued. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2017 | |
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”). Follow-on In June 2015, the Company completed its follow-on 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 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. Cash and Cash Equivalents The Company considers all highly liquid securities, readily convertible to cash, that mature within 90 days or less from the date of purchase to be cash equivalents. Short-term Investments, Available-for-Sale Short-term investments, which are available-for-sale, Fair Value of Financial Instruments The Company measures certain financial assets and liabilities at fair value on a recurring basis, including cash equivalents and short-term investments, available-for-sale. Level 1 — Observable inputs such as quoted prices (unadjusted) for identical assets or liabilities in active markets. Level 2 — 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. 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. The following is a summary of cash, cash equivalents and short-term investments, available-for-sale, December 31, 2017 2016 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Cash $ 7,646 $ — $ — $ 7,646 $ 5,222 $ — $ — $ 5,222 Money market funds 12,191 — — 12,191 4,637 — — 4,637 Corporate debt securities — 61,627 — 61,627 — 51,738 — 51,738 Commercial paper — 20,856 — 20,856 — 42,348 — 42,348 $ 19,837 $ 82,483 $ — $ 102,320 $ 9,859 $ 94,086 $ — $ 103,945 Reported as: Cash and cash equivalents $ 19,837 $ 9,859 Short-term investments, available-for-sale 82,483 94,086 $ 102,320 $ 103,945 There were no transfers in and out of Level 1 and Level 2 during the years ended December 31, 2017 and 2016. Concentration of Credit Risk Financial instruments, which potentially subject the Company to concentrations of credit risk, consist principally of cash equivalents, short-term investments and accounts receivable. The Company believes that the credit risk in its accounts receivable is mitigated by its credit evaluation process, relatively short collection terms and diversity of its customer base. The Company generally does not require collateral and losses on accounts receivable have historically been within management’s expectations. The Company’s investment policy limits investments to certain types of debt securities issued by the U.S. government, its agencies, and institutions with investment-grade credit ratings, as well as corporate debt or commercial paper issued by the highest quality financial and non-financial Allowance for Doubtful Accounts The Company provides for uncollectible accounts receivable by recording an allowance for doubtful accounts for balances deemed uncollectible. The Company evaluates the collectability of its accounts receivable based on known collection risks and historical experience. In circumstances where the Company is aware of a specific customer’s inability to meet its financial obligations to the Company (e.g., bankruptcy filings, substantial downgrading of credit ratings), the Company records a specific allowance for bad debts against amounts due to reduce the carrying amount of accounts receivable to the amount it reasonably believes will be collected. Based on the high creditworthiness of the customers that the Company sells to, the Company has not experienced any significant collection issues. Inventory Inventory is valued at the lower of cost or market, computed on a first-in, first-out Property and Equipment Property and equipment are stated at cost, less accumulated depreciation and amortization. Depreciation is determined using the straight-line method over the estimated useful lives of the respective assets, generally three to five years. Leasehold improvements are amortized on a straight-line basis over the shorter of their estimated useful lives or the term of the lease. Any amortization of assets under capital leases is included in depreciation and amortization expense. Maintenance and repairs are charged to operations as incurred. Impairment of Long-lived Assets Long-lived assets consists primarily of property and equipment and are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. If circumstances require that a long-lived asset be tested for possible impairment, the Company compares the undiscounted cash flows expected to be generated by the asset group to the carrying amount of the asset group. If the carrying amount of the long-lived asset is not recoverable on an undiscounted cash flow basis, an impairment is recognized to the extent that the carrying amount exceeds its fair value. The Company determines fair value using the income approach based on the present value of expected future cash flows or other appropriate measures of estimated fair value. The Company’s cash flow assumptions consider historical and forecasted revenue and operating costs and other relevant factors. Since inception, the Company has not recorded impairment charges on its long-lived assets. Revenue Recognition Revenue is derived from the sale of the PROPEL family of products to hospitals and ambulatory surgery centers almost entirely in the United States. The Company recognizes revenue when persuasive evidence of an arrangement exists, product delivery has occurred or there is no further obligation, pricing is fixed or determinable and collection is reasonably assured. The Company must make assumptions regarding the future collectability of amounts receivable from customers to determine whether revenue recognition criteria have been met. If collectability is not reasonably assured at the time of shipment, the Company defers revenue until such criteria have been met. In general, the Company’s standard terms and conditions of sale do not allow for product returns. The Company expenses shipping and handling costs as incurred and includes them in the cost of sales. In those cases where shipping and handling costs are billed to customers, the Company classifies the amounts billed as a component of revenue. Cost of Sales Cost of sales consists primarily of manufacturing overhead costs, material costs and direct labor. A significant portion of the Company’s cost of sales currently consists of manufacturing overhead costs. These overhead costs include the cost of quality assurance, material procurement, inventory control, facilities, information technology, equipment and operations supervision and management. Cost of sales also includes depreciation expense for production equipment and certain direct costs such as shipping costs. Research and Development Research and development expenses consist primarily of product development, clinical and regulatory affairs, consulting services and other costs associated with products and technologies in development. These expenses include employee compensation, stock-based compensation, supplies, quality assurance and related travel and allocated facilities and information technology expenses. Clinical expenses include clinical trial design, clinical site reimbursement, data management and travel expenses, and the cost of manufacturing products for clinical trials. Stock-based Compensation The Company maintains equity incentive plans to provide long-term incentives for employees, consultants and members of the board of directors. The plans allow for the issuance of non-statutory non-statutory non-employee The Company is required to determine the fair value of equity incentive awards and recognize compensation expense for all equity incentive awards made to employees and directors, including employee stock options. Stock-based compensation expense is recognized over the requisite service period in the statements of operations and comprehensive loss. The Company uses the straight-line method for expense attribution. Effective January 1, 2017, the Company adopted Accounting Standards Update (“ASU”) No. 2016-9, Improvements to Employee Share-Based Payment Accounting 2016-9”), 2016-9, The valuation model used for calculating the fair value of awards for stock-based compensation expense is the Black-Scholes option-pricing model (the “Black-Scholes model”). The Black-Scholes model requires the Company to make assumptions and judgments about the variables used in the calculation, including the expected term (weighted average period of time that the options granted are expected to be outstanding), the volatility of common stock and an assumed risk-free interest rate. The risk-free rate is based on the U.S. Treasury yield curve in effect at the time of grant for periods corresponding with the expected term of the option. Deferred Rent Rent expense is recognized on a straight-line basis over the non-cancelable non-cancelable Advertising Expenses The Company expenses the costs of advertising, including promotional expenses, as incurred. Advertising expenses were $0.6 million, $0.6 million and $0.3 million during the years ended December 31, 2017, 2016 and 2015, respectively. Income Taxes The Company accounts for income taxes under the liability method. Under this method, deferred tax assets and liabilities are determined based on the differences between the financial reporting and tax bases of assets and liabilities and are measured using the enacted tax rates that will be in effect when the differences are expected to reverse. Valuation allowances against deferred tax assets are established when necessary to reduce deferred tax assets to the amounts expected to be realized. Currently, the Company has recorded a full valuation allowance against its deferred tax assets and there is no provision for income taxes, as the Company has incurred operating losses to-date. 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 securities were antidilutive in those periods. 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): Fiscal Years Ended December 31, 2017 2016 2015 Common stock options 3,788 3,585 2,946 RSUs 275 — — ESPP shares 190 221 252 4,253 3,806 3,198 Comprehensive Loss Comprehensive loss consists of net loss and changes in unrealized gains and losses on short-term investments, available-for-sale. Segment, Geographical and Customer Concentration The Company has one operating segment. The Company’s assets and revenue are almost entirely based in the U.S. No single customer accounted for more than 10% of revenue during the years ended December 31, 2017, 2016 and 2015, and no single customer accounted for more than 10% of accounts receivable at December 31, 2017 and 2016. Recent Accounting Pronouncements In June 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2016-13, Measurement of Credit Losses on Financial Instruments 2016-13”). 2016-13 available-for-sale 2016-13 2016-13 2016-13 In March 2016, the FASB issued ASU No. 2016-9, Improvements to Employee Share-Based Payment Accounting 2016-9”). 2016-9 2016-9 2016-9 In February 2016, the FASB issued ASU No. 2016-2, Leases: Amendments to the FASB Accounting Standards Codification 2016-2”). 2016-02, 2016-02 2016-02 2016-2 2016-2 In August 2015, the FASB issued ASU No. 2015-14, Revenue from Contracts with Customers: Deferral of the Effective Date 2015-14”), No. 2014-09, Revenue from Contracts with Customers 2014-09”) 2014-09, 2014-09 to-date, 2014-09 |
Composition of Certain Financia
Composition of Certain Financial Statement Items | 12 Months Ended |
Dec. 31, 2017 | |
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): December 31, 2017 2016 Accounts receivable $ 16,739 $ 14,583 Allowance for doubtful accounts (150 ) (162 ) $ 16,589 $ 14,421 Inventory (in thousands): December 31, 2017 2016 Raw materials $ 1,221 $ 778 Work-in-process 302 247 Finished goods 6,951 4,588 $ 8,474 $ 5,613 Property and Equipment (in thousands): December 31, 2017 2016 Computer equipment and software $ 1,330 $ 1,137 Furniture and office equipment 548 423 Laboratory equipment 5,892 4,314 Leasehold improvements 1,739 1,618 9,509 7,492 Less: accumulated depreciation and amortization (4,661 ) (3,365 ) $ 4,848 $ 4,127 |
Cash, Cash Equivalents and Shor
Cash, Cash Equivalents and Short-term Investments | 12 Months Ended |
Dec. 31, 2017 | |
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, December 31, 2017 2016 Amortized Cost Gross Unrealized Estimated Fair Value Amortized Cost Gross Unrealized Estimated Fair Value Gains Losses Gains Losses Cash $ 7,646 $ — $ — $ 7,646 $ 5,222 $ — $ — $ 5,222 Money market funds 12,191 — — 12,191 4,637 — — 4,637 Corporate debt securities 61,695 1 (69 ) 61,627 51,761 3 (26 ) 51,738 Commercial paper 20,880 — (24 ) 20,856 42,362 6 (20 ) 42,348 $ 102,412 $ 1 $ (93 ) $ 102,320 $ 103,982 $ 9 $ (46 ) $ 103,945 Reported as: Cash and cash equivalents $ 19,837 $ 9,859 Short-term investments, available-for-sale 82,483 94,086 $ 102,320 $ 103,945 As of December 31, 2017 and 2016, the Company had no investments with a contractual 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 years ended December 31, 2017, 2016 and 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. |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Dec. 31, 2017 | |
Equity [Abstract] | |
Stockholders' Equity | 5. Stockholders’ Equity 2014 Equity Incentive Plan In July 2014, the Company’s board of directors approved the 2014 Equity Incentive Plan (the “2014 Plan”). Under the 2014 Plan, the Company may grant stock options, stock appreciation rights, restricted stock, restricted stock units and certain other awards to individuals who are employees, officers, directors or consultants of the Company. A total of 4,750,000 shares of common stock were initially reserved for issuance under the 2014 Plan. The number of shares of common stock reserved for issuance under the 2014 Plan 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. The maximum number of shares that may be issued upon the exercise of ISOs under the 2014 Plan is 10.0 million. Incentive stock options (“ISOs”) and non-statutory A summary of the Company’s stock option activity and related information is as follows (in thousands, except price data): Fiscal Year Ended Options Weighted Average Exercise Price Outstanding, beginning of period 3,585 $ 14.81 Granted 1,286 16.04 Exercised (849 ) 9.06 Forfeited (230 ) 18.84 Expired (4 ) 2.62 Outstanding, end of period 3,788 16.28 Exercisable 1,881 14.77 As of December 31, 2017, the aggregate pre-tax pre-tax A summary of the Company’s RSU activity and related information (RSUs in thousands): Fiscal Year Ended RSUs Weighted Average Outstanding, beginning of period — $ — Awarded 288 13.74 Forfeited (13 ) 15.57 Outstanding, end of period 275 13.65 As of December 31, 2017, the aggregate pre-tax 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. Shares issued during each of the years ended December 31, 2017, 2016 and 2015 were 0.2 million, 0.1 million and 0.1 million, respectively. |
Stock-based Compensation Expens
Stock-based Compensation Expense | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-based Compensation Expense | 6. Stock-Based Compensation Expense Total stock-based compensation expense recognized is as follows (in thousands): Fiscal Years Ended 2017 2016 2015 Cost of sales $ 892 $ 708 $ 417 Selling, general and administrative 7,292 5,606 3,812 Research and development 1,636 1,153 635 $ 9,820 $ 7,467 $ 4,864 As of December 31, 2017, the amount of unearned stock-based compensation currently estimated to be expensed through the year 2021 related to unvested employee stock-based awards was $18.1 million and the weighted average period over which the unearned stock-based compensation is expected to be recognized was 2.4 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 Company estimates the fair value of stock-based compensation on the date of grant using the Black-Scholes option-pricing model. The Black-Scholes model determines the fair value of stock-based payment awards based on the fair market value of the Company’s common stock on the date of grant and is affected by assumptions regarding a number of highly complex and subjective variables. These variables include, but are not limited to, the fair market value of the Company’s common stock, volatility over the expected term of the awards and actual and projected employee stock option exercise behaviors. The Company has opted to use the “simplified method” for estimating the expected term of options, whereby the expected term equals the arithmetic average of the vesting term and the original contractual term of the option. Due to the Company’s limited operating history and a lack of company specific historical and implied volatility data, the Company has based its estimate of expected volatility on the historical volatility of a group of similar companies that are publicly traded. When selecting these public companies on which it has based its expected stock price volatility, the Company generally selected companies with comparable characteristics to it, including enterprise value, stages of clinical development, risk profiles, position within the industry and with historical share price information sufficient to meet the expected life of the stock-based awards. The historical volatility data was computed using the daily closing prices for the selected companies’ shares during the equivalent period of the calculated expected term of the share-based payments. The Company will continue to analyze the historical stock price volatility and expected term assumptions as more historical data for the Company’s common stock becomes available. The risk-free rate assumption is based on the U.S. Treasury instruments with maturities similar to the expected term of the Company’s stock options. The expected dividend assumption is based on the Company’s history of not paying dividends and its expectation that it will not declare dividends for the foreseeable future. Effective January 1, 2017, the Company adopted ASU 2016-9 2016-9, 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: Fiscal Years Ended 2017 2016 2015 Expected term (years) 6.0 6.0 6.0 Expected volatility 45 % 44 % 48 % Risk-free interest rate 2.1 % 1.5 % 1.6 % Dividend yield 0.0 % 0.0 % 0.0 % Fair value $ 7.24 $ 7.83 $ 10.66 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: Fiscal Years Ended 2017 2016 2015 Expected term (years) 1.3 1.3 1.3 Expected volatility 44 % 48 % 38 % Risk-free interest rate 1.3 % 0.7 % 0.4 % Dividend yield 0.0 % 0.0 % 0.0 % Fair value $ 8.71 $ 4.46 $ 7.29 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 7. 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 amounts 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. Building Lease As of December 31, 2017, the Company has one leased facility under an operating lease agreement entered into in March 2012. In December 2014, the operating lease agreement was amended for an additional 17,900 square feet for a total of 50,400 square feet and the expiration was extended to May 31, 2020. Rental payments are charged to expense on a straight-line basis over the period of the lease. The lease agreement requires the Company to pay executory costs such as real estate taxes, insurance and repairs, and includes a renewal provision allowing the Company to extend this lease for an additional three years at 95% of the then-current fair market rental rate. Because of the terms of the amended lease agreement, the Company is the deemed owner, for accounting purposes only, of the building improvements. Accordingly, the Company recorded an asset of $1.0 million, representing the total costs of the building improvements payable by the lessor, the legal owner of the building, with a corresponding offset recorded as deferred rent. The building improvements are being amortized over the life of the lease. Future minimum annual operating lease payments are as follows (in thousands): Fiscal Years Ending December 31, December 31, 2018 $ 1,580 2019 1,625 2020 685 Thereafter — $ 3,890 Rent expense was $1.9 million, $2.0 million and $1.9 million during the years ended December 31, 2017, 2016 and 2015, respectively. Purchase Commitments As of December 31, 2017, the Company had commitments to suppliers for purchases totaling $5.4 million. |
Employee Retirement Plan
Employee Retirement Plan | 12 Months Ended |
Dec. 31, 2017 | |
Retirement Benefits [Abstract] | |
Employee Retirement Plan | 8. Employee Retirement Plan In January 2007, the Company established a qualified retirement plan under section 401(k) of the Internal Revenue Code (“IRC”) under which participants may contribute up to 100% of their eligible compensation, subject to maximum deferral limits specified by the IRC. The Company may make a discretionary profit sharing contribution to each eligible employee, subject to limits specified by the IRC, on an annual basis, provided the employee is employed with the Company on the last day of the plan year which is December 31. In addition, the Company may also make matching contributions of up to 3% of an employee’s eligible compensation. The Company’s contributions will vest 25% per year over four years. Total matching contributions were $0.3 million, $0.3 million and $0.2 million during the years ended December 31, 2017, 2016 and 2015, respectively. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 9. Income Taxes The Company has a history of losses and therefore has made no provision for income taxes. The amount computed by applying the federal statutory rate to loss before income taxes reconciles to the provision for income taxes is as follows (in thousands): Fiscal Years Ended December 31, 2017 2016 2015 Tax at federal statutory rate $ (5,563 ) $ (8,575 ) $ (9,056 ) State tax, net of federal benefit (575 ) (1,210 ) (589 ) Permanent items 460 549 463 Stock-based compensation (2,919 ) 295 212 R&D tax credit (627 ) (536 ) (559 ) Change in U.S. federal tax rate 20,974 — — Change in valuation allowance (11,750 ) 9,477 9,529 $ — $ — $ — Significant components of net deferred tax assets are as follows (in thousands): December 31, 2017 2016 Deferred tax assets: Net operating losses $ 38,531 $ 46,478 R&D tax credit 5,983 4,612 Accruals and other 6,730 7,456 51,244 58,546 Deferred tax liabilities: Depreciation and amortization (212 ) (337 ) (212 ) (337 ) Net deferred tax assets: 51,032 58,209 Valuation allowance (51,032 ) (58,209 ) $ — $ — In December 2017, the U.S. government enacted comprehensive tax legislation, commonly referred to as the Tax Cuts and Jobs Act (“Tax Act”). The Tax Act makes broad and complex changes to the U.S. tax code, including, but not limited to, (1) reducing the U.S. federal corporate tax rate from 35 percent to 21 percent; (2) requiring companies to pay a one-time The Company has not historically had significant non-U.S. In December 2017, Staff Accounting Bulletin No. 118 (“SAB 118”) was issued to address the application of U.S. GAAP in situations when a registrant does not have the necessary information available, prepared, or analyzed in reasonable detail to complete the accounting for certain income tax effects of the Tax Act. As of December 31, 2017, due to the complexities of the new law, we have not completed our accounting for all the tax effects of the Tax Act, however, as noted above we have made a reasonable estimate of the effects on our existing deferred tax balances. We are still analyzing certain aspects of the Tax Act and refining our calculations, which could potentially affect the measurement of these balances or potentially give rise to new deferred tax amounts. In all cases, we will continue to make and refine our calculations as additional analysis is completed. In addition, our provisional estimates may also be adjusted as we gain a more thorough understanding of the tax law. Deferred income taxes reflect the tax effects of NOLs and tax credit carryforwards and the net temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Realization of the deferred tax assets is dependent upon the generation of future taxable income, if any, the amount and timing of which are uncertain. Based on available objective evidence, management believes it is more likely than not that the deferred tax assets are not recognizable and will not be recognizable until the Company has sufficient taxable income. Accordingly, the net deferred tax assets have been fully offset by a valuation allowance. The valuation allowance decreased by $7.2 million and increased by $9.5 million during the years ended December 31, 2017 and 2016, respectively. On January 1, 2017, the Company adopted ASU 2016-09, 2016-09 As of December 31, 2017, the Company’s federal NOL carryforwards of $149.1 million will expire at various dates beginning in 2026, if not utilized, and federal research and development tax credits of $4.4 million will begin to expire in 2026. In addition, NOL carryforwards for state income tax purposes of $53.0 million will begin to expire in 2028 and state research and development tax credits of $3.9 million do not expire. Utilization of the NOL carryforwards may be subject to an annual limitation due to the ownership change limitations provided by the Internal Revenue Code of 1986 and similar state provisions. The annual limitation may result in the expiration of the NOL before utilization. Due to the Company’s full valuation allowance against all net deferred tax assets, the Company’s unrecognized tax benefits, if recognized, would not affect the effective tax rate. A reconciliation of the change in the unrecognized tax benefit during the year is as follows (in thousands): December 31, 2017 2016 2015 Beginning of year $ 1,374 $ 1,094 $ 861 Additions for tax positions related to: Current year 286 294 227 Prior years — (14 ) 6 End of year $ 1,660 $ 1,374 $ 1,094 The Company does not expect a significant change to its unrecognized tax benefits over the next twelve months. The Company files income tax returns in the U.S. federal and various state jurisdictions. Tax years beginning in 2004 through 2017 remain open to examination by the major taxing authorities to which the Company is subject to. The Company’s policy is to record interest related to uncertain tax positions as interest expense and any penalties as other expense in its statements of operations and comprehensive loss. The Company has not recorded any interest expense or penalties associated with unrecognized tax benefits. |
Supplemental Quarterly Financia
Supplemental Quarterly Financial Information | 12 Months Ended |
Dec. 31, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |
Supplemental Quarterly Financial Information | Supplemental Quarterly Financial Information (unaudited) The following table sets forth unaudited statements of operations data for each of the Company’s last eight quarters. This quarterly information is unaudited and has been prepared on the same basis as the annual financial statements. In the Company’s opinion, this quarterly information reflects all adjustments necessary for a fair presentation of the periods presented. The operating results for any quarter are not necessarily indicative of results for any future period. Fiscal Years Ended December 31, 2017 2016 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Revenue $ 20,474 $ 23,985 $ 22,313 $ 29,529 $ 16,692 $ 19,317 $ 18,468 $ 24,231 Cost of sales 2,884 3,684 3,808 5,123 3,210 3,117 2,788 3,888 Gross profit 17,590 20,301 18,505 24,406 13,482 16,200 15,680 20,343 Gross margin 86 % 85 % 83 % 83 % 81 % 84 % 85 % 84 % Operating expenses: Sales, general and administrative 20,319 18,682 18,746 22,298 17,393 17,795 17,905 19,833 Research and development 4,220 4,176 4,346 5,618 4,495 4,588 4,237 5,570 Total operating expenses 24,539 22,858 23,092 27,916 21,888 22,383 22,142 25,403 Loss from operations (6,949 ) (2,557 ) (4,587 ) (3,510 ) (8,406 ) (6,183 ) (6,462 ) (5,060 ) Interest and other income, net 268 288 326 358 185 224 236 244 Net loss $ (6,681 ) $ (2,269 ) $ (4,261 ) $ (3,152 ) $ (8,221 ) $ (5,959 ) $ (6,226 ) $ (4,816 ) Basic and diluted net loss per share $ (0.23 ) $ (0.08 ) $ (0.15 ) $ (0.11 ) $ (0.29 ) $ (0.21 ) $ (0.22 ) $ (0.17 ) Shares used to compute basic and diluted net loss per share 28,708 28,950 29,269 29,538 28,207 28,379 28,479 28,610 |
Schedule II - Valuation and Qua
Schedule II - Valuation and Qualifying Accounts | 12 Months Ended |
Dec. 31, 2017 | |
Valuation and Qualifying Accounts [Abstract] | |
Schedule II - Valuation and Qualifying Accounts | SCHEDULE II — VALUATION AND QUALIFYING ACCOUNTS (in thousands) Fiscal Years Ended December 31, 2017 2016 2015 Allowance for doubtful accounts: Beginning $ 162 $ 86 $ — Charges 62 155 92 Write-offs (74 ) (79 ) (6 ) Ending $ 150 $ 162 $ 86 |
Summary of Significant Accoun18
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2017 | |
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”). |
Follow-on Offering | Follow-on In June 2015, the Company completed its follow-on |
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 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. |
Cash and Cash Equivalents | Cash and Cash Equivalents The Company considers all highly liquid securities, readily convertible to cash, that mature within 90 days or less from the date of purchase to be cash equivalents. |
Short-term Investments, Available-for-Sale | Short-term Investments, Available-for-Sale Short-term investments, which are available-for-sale, |
Fair Value of Financial Instruments | Fair Value of Financial Instruments The Company measures certain financial assets and liabilities at fair value on a recurring basis, including cash equivalents and short-term investments, available-for-sale. Level 1 — Observable inputs such as quoted prices (unadjusted) for identical assets or liabilities in active markets. Level 2 — 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. 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. The following is a summary of cash, cash equivalents and short-term investments, available-for-sale, December 31, 2017 2016 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Cash $ 7,646 $ — $ — $ 7,646 $ 5,222 $ — $ — $ 5,222 Money market funds 12,191 — — 12,191 4,637 — — 4,637 Corporate debt securities — 61,627 — 61,627 — 51,738 — 51,738 Commercial paper — 20,856 — 20,856 — 42,348 — 42,348 $ 19,837 $ 82,483 $ — $ 102,320 $ 9,859 $ 94,086 $ — $ 103,945 Reported as: Cash and cash equivalents $ 19,837 $ 9,859 Short-term investments, available-for-sale 82,483 94,086 $ 102,320 $ 103,945 There were no transfers in and out of Level 1 and Level 2 during the years ended December 31, 2017 and 2016. |
Concentration of Credit Risk | Concentration of Credit Risk Financial instruments, which potentially subject the Company to concentrations of credit risk, consist principally of cash equivalents, short-term investments and accounts receivable. The Company believes that the credit risk in its accounts receivable is mitigated by its credit evaluation process, relatively short collection terms and diversity of its customer base. The Company generally does not require collateral and losses on accounts receivable have historically been within management’s expectations. The Company’s investment policy limits investments to certain types of debt securities issued by the U.S. government, its agencies, and institutions with investment-grade credit ratings, as well as corporate debt or commercial paper issued by the highest quality financial and non-financial |
Allowance for Doubtful Accounts | Allowance for Doubtful Accounts The Company provides for uncollectible accounts receivable by recording an allowance for doubtful accounts for balances deemed uncollectible. The Company evaluates the collectability of its accounts receivable based on known collection risks and historical experience. In circumstances where the Company is aware of a specific customer’s inability to meet its financial obligations to the Company (e.g., bankruptcy filings, substantial downgrading of credit ratings), the Company records a specific allowance for bad debts against amounts due to reduce the carrying amount of accounts receivable to the amount it reasonably believes will be collected. Based on the high creditworthiness of the customers that the Company sells to, the Company has not experienced any significant collection issues. |
Inventory | Inventory Inventory is valued at the lower of cost or market, computed on a first-in, first-out |
Property and Equipment | Property and Equipment Property and equipment are stated at cost, less accumulated depreciation and amortization. Depreciation is determined using the straight-line method over the estimated useful lives of the respective assets, generally three to five years. Leasehold improvements are amortized on a straight-line basis over the shorter of their estimated useful lives or the term of the lease. Any amortization of assets under capital leases is included in depreciation and amortization expense. Maintenance and repairs are charged to operations as incurred. |
Impairment of Long-lived Assets | Impairment of Long-lived Assets Long-lived assets consists primarily of property and equipment and are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. If circumstances require that a long-lived asset be tested for possible impairment, the Company compares the undiscounted cash flows expected to be generated by the asset group to the carrying amount of the asset group. If the carrying amount of the long-lived asset is not recoverable on an undiscounted cash flow basis, an impairment is recognized to the extent that the carrying amount exceeds its fair value. The Company determines fair value using the income approach based on the present value of expected future cash flows or other appropriate measures of estimated fair value. The Company’s cash flow assumptions consider historical and forecasted revenue and operating costs and other relevant factors. Since inception, the Company has not recorded impairment charges on its long-lived assets. |
Revenue Recognition | Revenue Recognition Revenue is derived from the sale of the PROPEL family of products to hospitals and ambulatory surgery centers almost entirely in the United States. The Company recognizes revenue when persuasive evidence of an arrangement exists, product delivery has occurred or there is no further obligation, pricing is fixed or determinable and collection is reasonably assured. The Company must make assumptions regarding the future collectability of amounts receivable from customers to determine whether revenue recognition criteria have been met. If collectability is not reasonably assured at the time of shipment, the Company defers revenue until such criteria have been met. In general, the Company’s standard terms and conditions of sale do not allow for product returns. The Company expenses shipping and handling costs as incurred and includes them in the cost of sales. In those cases where shipping and handling costs are billed to customers, the Company classifies the amounts billed as a component of revenue. |
Cost of Sales | Cost of Sales Cost of sales consists primarily of manufacturing overhead costs, material costs and direct labor. A significant portion of the Company’s cost of sales currently consists of manufacturing overhead costs. These overhead costs include the cost of quality assurance, material procurement, inventory control, facilities, information technology, equipment and operations supervision and management. Cost of sales also includes depreciation expense for production equipment and certain direct costs such as shipping costs. |
Research and Development | Research and Development Research and development expenses consist primarily of product development, clinical and regulatory affairs, consulting services and other costs associated with products and technologies in development. These expenses include employee compensation, stock-based compensation, supplies, quality assurance and related travel and allocated facilities and information technology expenses. Clinical expenses include clinical trial design, clinical site reimbursement, data management and travel expenses, and the cost of manufacturing products for clinical trials. |
Stock-based Compensation | Stock-based Compensation The Company maintains equity incentive plans to provide long-term incentives for employees, consultants and members of the board of directors. The plans allow for the issuance of non-statutory non-statutory non-employee The Company is required to determine the fair value of equity incentive awards and recognize compensation expense for all equity incentive awards made to employees and directors, including employee stock options. Stock-based compensation expense is recognized over the requisite service period in the statements of operations and comprehensive loss. The Company uses the straight-line method for expense attribution. Effective January 1, 2017, the Company adopted Accounting Standards Update (“ASU”) No. 2016-9, Improvements to Employee Share-Based Payment Accounting 2016-9”), 2016-9, The valuation model used for calculating the fair value of awards for stock-based compensation expense is the Black-Scholes option-pricing model (the “Black-Scholes model”). The Black-Scholes model requires the Company to make assumptions and judgments about the variables used in the calculation, including the expected term (weighted average period of time that the options granted are expected to be outstanding), the volatility of common stock and an assumed risk-free interest rate. The risk-free rate is based on the U.S. Treasury yield curve in effect at the time of grant for periods corresponding with the expected term of the option. |
Deferred Rent | Deferred Rent Rent expense is recognized on a straight-line basis over the non-cancelable non-cancelable |
Advertising Expenses | Advertising Expenses The Company expenses the costs of advertising, including promotional expenses, as incurred. Advertising expenses were $0.6 million, $0.6 million and $0.3 million during the years ended December 31, 2017, 2016 and 2015, respectively. |
Income Taxes | Income Taxes The Company accounts for income taxes under the liability method. Under this method, deferred tax assets and liabilities are determined based on the differences between the financial reporting and tax bases of assets and liabilities and are measured using the enacted tax rates that will be in effect when the differences are expected to reverse. Valuation allowances against deferred tax assets are established when necessary to reduce deferred tax assets to the amounts expected to be realized. Currently, the Company has recorded a full valuation allowance against its deferred tax assets and there is no provision for income taxes, as the Company has incurred operating losses to-date. |
Net Loss per Share | 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 securities were antidilutive in those periods. 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): Fiscal Years Ended December 31, 2017 2016 2015 Common stock options 3,788 3,585 2,946 RSUs 275 — — ESPP shares 190 221 252 4,253 3,806 3,198 |
Comprehensive Loss | Comprehensive Loss Comprehensive loss consists of net loss and changes in unrealized gains and losses on short-term investments, available-for-sale. |
Segment, Geographical and Customer Concentration | Segment, Geographical and Customer Concentration The Company has one operating segment. The Company’s assets and revenue are almost entirely based in the U.S. No single customer accounted for more than 10% of revenue during the years ended December 31, 2017, 2016 and 2015, and no single customer accounted for more than 10% of accounts receivable at December 31, 2017 and 2016. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In June 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2016-13, Measurement of Credit Losses on Financial Instruments 2016-13”). 2016-13 available-for-sale 2016-13 2016-13 2016-13 In March 2016, the FASB issued ASU No. 2016-9, Improvements to Employee Share-Based Payment Accounting 2016-9”). 2016-9 2016-9 2016-9 In February 2016, the FASB issued ASU No. 2016-2, Leases: Amendments to the FASB Accounting Standards Codification 2016-2”). 2016-02, 2016-02 2016-02 2016-2 2016-2 In August 2015, the FASB issued ASU No. 2015-14, Revenue from Contracts with Customers: Deferral of the Effective Date 2015-14”), No. 2014-09, Revenue from Contracts with Customers 2014-09”) 2014-09, 2014-09 to-date, 2014-09 |
Summary of Significant Accoun19
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [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, December 31, 2017 2016 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Cash $ 7,646 $ — $ — $ 7,646 $ 5,222 $ — $ — $ 5,222 Money market funds 12,191 — — 12,191 4,637 — — 4,637 Corporate debt securities — 61,627 — 61,627 — 51,738 — 51,738 Commercial paper — 20,856 — 20,856 — 42,348 — 42,348 $ 19,837 $ 82,483 $ — $ 102,320 $ 9,859 $ 94,086 $ — $ 103,945 Reported as: Cash and cash equivalents $ 19,837 $ 9,859 Short-term investments, available-for-sale 82,483 94,086 $ 102,320 $ 103,945 |
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): Fiscal Years Ended December 31, 2017 2016 2015 Common stock options 3,788 3,585 2,946 RSUs 275 — — ESPP shares 190 221 252 4,253 3,806 3,198 |
Composition of Certain Financ20
Composition of Certain Financial Statement Items (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Accounts Receivable | Accounts Receivable (in thousands): December 31, 2017 2016 Accounts receivable $ 16,739 $ 14,583 Allowance for doubtful accounts (150 ) (162 ) $ 16,589 $ 14,421 |
Components of Inventory | Inventory (in thousands): December 31, 2017 2016 Raw materials $ 1,221 $ 778 Work-in-process 302 247 Finished goods 6,951 4,588 $ 8,474 $ 5,613 |
Property and Equipment | Property and Equipment (in thousands): December 31, 2017 2016 Computer equipment and software $ 1,330 $ 1,137 Furniture and office equipment 548 423 Laboratory equipment 5,892 4,314 Leasehold improvements 1,739 1,618 9,509 7,492 Less: accumulated depreciation and amortization (4,661 ) (3,365 ) $ 4,848 $ 4,127 |
Cash, Cash Equivalents and Sh21
Cash, Cash Equivalents and Short-term Investments (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
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, December 31, 2017 2016 Amortized Cost Gross Unrealized Estimated Fair Value Amortized Cost Gross Unrealized Estimated Fair Value Gains Losses Gains Losses Cash $ 7,646 $ — $ — $ 7,646 $ 5,222 $ — $ — $ 5,222 Money market funds 12,191 — — 12,191 4,637 — — 4,637 Corporate debt securities 61,695 1 (69 ) 61,627 51,761 3 (26 ) 51,738 Commercial paper 20,880 — (24 ) 20,856 42,362 6 (20 ) 42,348 $ 102,412 $ 1 $ (93 ) $ 102,320 $ 103,982 $ 9 $ (46 ) $ 103,945 Reported as: Cash and cash equivalents $ 19,837 $ 9,859 Short-term investments, available-for-sale 82,483 94,086 $ 102,320 $ 103,945 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Equity [Abstract] | |
Summary of Stock Option Activity | A summary of the Company’s stock option activity and related information is as follows (in thousands, except price data): Fiscal Year Ended Options Weighted Average Exercise Price Outstanding, beginning of period 3,585 $ 14.81 Granted 1,286 16.04 Exercised (849 ) 9.06 Forfeited (230 ) 18.84 Expired (4 ) 2.62 Outstanding, end of period 3,788 16.28 Exercisable 1,881 14.77 |
Summary of Restricted Stock Units Activity | A summary of the Company’s RSU activity and related information (RSUs in thousands): Fiscal Year Ended RSUs Weighted Average Outstanding, beginning of period — $ — Awarded 288 13.74 Forfeited (13 ) 15.57 Outstanding, end of period 275 13.65 |
Stock-based Compensation Expe23
Stock-based Compensation Expense (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Summary of Stock Based Compensation Expense | Total stock-based compensation expense recognized is as follows (in thousands): Fiscal Years Ended 2017 2016 2015 Cost of sales $ 892 $ 708 $ 417 Selling, general and administrative 7,292 5,606 3,812 Research and development 1,636 1,153 635 $ 9,820 $ 7,467 $ 4,864 |
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: Fiscal Years Ended 2017 2016 2015 Expected term (years) 6.0 6.0 6.0 Expected volatility 45 % 44 % 48 % Risk-free interest rate 2.1 % 1.5 % 1.6 % Dividend yield 0.0 % 0.0 % 0.0 % Fair value $ 7.24 $ 7.83 $ 10.66 |
Summary of Weighted Average Assumptions Used to Estimate ESPP 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: Fiscal Years Ended 2017 2016 2015 Expected term (years) 1.3 1.3 1.3 Expected volatility 44 % 48 % 38 % Risk-free interest rate 1.3 % 0.7 % 0.4 % Dividend yield 0.0 % 0.0 % 0.0 % Fair value $ 8.71 $ 4.46 $ 7.29 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Summary of Future Minimum Annual Operating Lease Payments | Future minimum annual operating lease payments are as follows (in thousands): Fiscal Years Ending December 31, December 31, 2018 $ 1,580 2019 1,625 2020 685 Thereafter — $ 3,890 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Schedule of Federal Statutory Rate to Loss Before Income Taxes Reconciles to Provision for Income Taxes | The amount computed by applying the federal statutory rate to loss before income taxes reconciles to the provision for income taxes is as follows (in thousands): Fiscal Years Ended December 31, 2017 2016 2015 Tax at federal statutory rate $ (5,563 ) $ (8,575 ) $ (9,056 ) State tax, net of federal benefit (575 ) (1,210 ) (589 ) Permanent items 460 549 463 Stock-based compensation (2,919 ) 295 212 R&D tax credit (627 ) (536 ) (559 ) Change in U.S. federal tax rate 20,974 — — Change in valuation allowance (11,750 ) 9,477 9,529 $ — $ — $ — |
Schedule of Significant Components of Net Deferred Tax Assets | Significant components of net deferred tax assets are as follows (in thousands): December 31, 2017 2016 Deferred tax assets: Net operating losses $ 38,531 $ 46,478 R&D tax credit 5,983 4,612 Accruals and other 6,730 7,456 51,244 58,546 Deferred tax liabilities: Depreciation and amortization (212 ) (337 ) (212 ) (337 ) Net deferred tax assets: 51,032 58,209 Valuation allowance (51,032 ) (58,209 ) $ — $ — |
Schedule of Reconciliation of Change in Unrecognized Tax Benefit | A reconciliation of the change in the unrecognized tax benefit during the year is as follows (in thousands): December 31, 2017 2016 2015 Beginning of year $ 1,374 $ 1,094 $ 861 Additions for tax positions related to: Current year 286 294 227 Prior years — (14 ) 6 End of year $ 1,660 $ 1,374 $ 1,094 |
Supplemental Quarterly Financ26
Supplemental Quarterly Financial Information (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Information of Statements of Operations | The following table sets forth unaudited statements of operations data for each of the Company’s last eight quarters. This quarterly information is unaudited and has been prepared on the same basis as the annual financial statements. In the Company’s opinion, this quarterly information reflects all adjustments necessary for a fair presentation of the periods presented. The operating results for any quarter are not necessarily indicative of results for any future period. Fiscal Years Ended December 31, 2017 2016 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Revenue $ 20,474 $ 23,985 $ 22,313 $ 29,529 $ 16,692 $ 19,317 $ 18,468 $ 24,231 Cost of sales 2,884 3,684 3,808 5,123 3,210 3,117 2,788 3,888 Gross profit 17,590 20,301 18,505 24,406 13,482 16,200 15,680 20,343 Gross margin 86 % 85 % 83 % 83 % 81 % 84 % 85 % 84 % Operating expenses: Sales, general and administrative 20,319 18,682 18,746 22,298 17,393 17,795 17,905 19,833 Research and development 4,220 4,176 4,346 5,618 4,495 4,588 4,237 5,570 Total operating expenses 24,539 22,858 23,092 27,916 21,888 22,383 22,142 25,403 Loss from operations (6,949 ) (2,557 ) (4,587 ) (3,510 ) (8,406 ) (6,183 ) (6,462 ) (5,060 ) Interest and other income, net 268 288 326 358 185 224 236 244 Net loss $ (6,681 ) $ (2,269 ) $ (4,261 ) $ (3,152 ) $ (8,221 ) $ (5,959 ) $ (6,226 ) $ (4,816 ) Basic and diluted net loss per share $ (0.23 ) $ (0.08 ) $ (0.15 ) $ (0.11 ) $ (0.29 ) $ (0.21 ) $ (0.22 ) $ (0.17 ) Shares used to compute basic and diluted net loss per share 28,708 28,950 29,269 29,538 28,207 28,379 28,479 28,610 |
Organization - Additional Infor
Organization - Additional Information (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Cash, cash equivalents and short-term investments | $ 102,320 | $ 103,945 |
Accumulated deficit | $ (164,840) | $ (148,477) |
Summary of Significant Accoun28
Summary of Significant Accounting Policies - Additional Information (Detail) | 1 Months Ended | 12 Months Ended | ||
Jun. 30, 2015USD ($)$ / sharesshares | Dec. 31, 2017USD ($)CustomerSegments | Dec. 31, 2016USD ($)Customer | Dec. 31, 2015USD ($)Customer | |
Summary Of Significant Accounting Policies [Line Items] | ||||
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 | ||
Advertising expenses | $ 600,000 | $ 600,000 | $ 300,000 | |
Number of operating segment | Segments | 1 | |||
Revenue [Member] | Customer Concentration Risk [Member] | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Number of customer accounted for more than 10% | Customer | 0 | 0 | 0 | |
Concentration risk, percentage | 10.00% | 10.00% | 10.00% | |
Accounts Receivable [Member] | Customer Concentration Risk [Member] | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Number of customer accounted for more than 10% | Customer | 0 | 0 | ||
Concentration risk, percentage | 10.00% | 10.00% | ||
Leasehold Improvements [Member] | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Estimated useful lives of lease | Straight-line basis over the shorter of their estimated useful lives or the term of the lease. | |||
Minimum [Member] | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Estimated useful life of property and equipment | 3 years | |||
Maximum [Member] | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Estimated useful life of property and equipment | 5 years | |||
Common Stock [Member] | Over-Allotment Option [Member] | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Number of shares issued | shares | 537,300 | |||
Common Stock [Member] | Follow-on 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 | $ 96,400,000 | |||
Underwriting discounts and commissions | 6,200,000 | |||
Public offering, expenses | $ 400,000 |
Summary of Significant Accoun29
Summary of Significant Accounting Policies - Summary of Cash, Cash Equivalents and Short-Term Investments, Available-for-Sale, by Type of Instrument (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Net Investment [Line Items] | ||||
Cash and cash equivalents | $ 19,837 | $ 9,859 | $ 34,809 | $ 13,403 |
Short-term investments, available-for-sale | 82,483 | 94,086 | ||
Cash and cash equivalents and short-term investments, available-for-sale | 102,320 | 103,945 | ||
Fair Value on Recurring Basis [Member] | ||||
Net Investment [Line Items] | ||||
Cash and cash equivalents | 19,837 | 9,859 | ||
Short-term investments, available-for-sale | 82,483 | 94,086 | ||
Cash and cash equivalents and short-term investments, available-for-sale | 102,320 | 103,945 | ||
Fair Value on Recurring Basis [Member] | Cash [Member] | ||||
Net Investment [Line Items] | ||||
Cash and cash equivalents and short-term investments, available-for-sale | 7,646 | 5,222 | ||
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 | 12,191 | 4,637 | ||
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 | 61,627 | 51,738 | ||
Fair Value on Recurring Basis [Member] | Commercial Paper [Member] | ||||
Net Investment [Line Items] | ||||
Cash and cash equivalents and short-term investments, available-for-sale | 20,856 | 42,348 | ||
Level 1 [Member] | Fair Value on Recurring Basis [Member] | ||||
Net Investment [Line Items] | ||||
Cash and cash equivalents and short-term investments, available-for-sale | 19,837 | 9,859 | ||
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 | 7,646 | 5,222 | ||
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 | 12,191 | 4,637 | ||
Level 2 [Member] | Fair Value on Recurring Basis [Member] | ||||
Net Investment [Line Items] | ||||
Cash and cash equivalents and short-term investments, available-for-sale | 82,483 | 94,086 | ||
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 | 61,627 | 51,738 | ||
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 | $ 20,856 | $ 42,348 |
Summary of Significant Accoun30
Summary of Significant Accounting Policies - Schedule of Potentially Dilutive Securities Outstanding Excluded from the Computations of Diluted Weighted Average Shares Outstanding (Detail) - shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities excluded from computation of diluted weighted average shares outstanding | 4,253 | 3,806 | 3,198 |
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 | 3,788 | 3,585 | 2,946 |
RSUs [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities excluded from computation of diluted weighted average shares outstanding | 275 | ||
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 | 190 | 221 | 252 |
Composition of Certain Financ31
Composition of Certain Financial Statement Items - Accounts Receivable (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Receivables [Abstract] | ||
Accounts receivable | $ 16,739 | $ 14,583 |
Allowance for doubtful accounts | (150) | (162) |
Accounts receivable, net | $ 16,589 | $ 14,421 |
Composition of Certain Financ32
Composition of Certain Financial Statement Items - Components of Inventory (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 1,221 | $ 778 |
Work-in-process | 302 | 247 |
Finished goods | 6,951 | 4,588 |
Inventory | $ 8,474 | $ 5,613 |
Composition of Certain Financ33
Composition of Certain Financial Statement Items - Property and Equipment (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Property, Plant and Equipment [Line Items] | ||
Plant and equipment, gross | $ 9,509 | $ 7,492 |
Less: accumulated depreciation and amortization | (4,661) | (3,365) |
Plant and equipment, net | 4,848 | 4,127 |
Computer Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Plant and equipment, gross | 1,330 | 1,137 |
Furniture and Fixtures [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Plant and equipment, gross | 548 | 423 |
Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Plant and equipment, gross | 5,892 | 4,314 |
Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Plant and equipment, gross | $ 1,739 | $ 1,618 |
Cash, Cash Equivalents and Sh34
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 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Net Investment [Line Items] | ||||
Cash, cash equivalents and available-for-sale investments, Amortized Cost | $ 102,412 | $ 103,982 | ||
Cash, cash equivalents and available-for-sale investments, Gross Unrealized Gains | 1 | 9 | ||
Cash, cash equivalents and available-for-sale investments, Gross Unrealized Losses | (93) | (46) | ||
Cash, cash equivalents and available-for-sale investments, Estimated Fair Value | 102,320 | 103,945 | ||
Cash, cash equivalents, Estimated Fair Value | 19,837 | 9,859 | $ 34,809 | $ 13,403 |
Short-term investments, available-for-sale, Estimated Fair Value | 82,483 | 94,086 | ||
Cash and cash equivalents and short-term investments, available-for-sale | 102,320 | 103,945 | ||
Cash [Member] | ||||
Net Investment [Line Items] | ||||
Cash, cash equivalents and available-for-sale investments, Amortized Cost | 7,646 | 5,222 | ||
Cash, cash equivalents and available-for-sale investments, Estimated Fair Value | 7,646 | 5,222 | ||
Money Market Funds [Member] | ||||
Net Investment [Line Items] | ||||
Cash, cash equivalents and available-for-sale investments, Amortized Cost | 12,191 | 4,637 | ||
Cash, cash equivalents and available-for-sale investments, Estimated Fair Value | 12,191 | 4,637 | ||
Corporate Debt Securities [Member] | ||||
Net Investment [Line Items] | ||||
Cash, cash equivalents and available-for-sale investments, Amortized Cost | 61,695 | 51,761 | ||
Cash, cash equivalents and available-for-sale investments, Gross Unrealized Gains | 1 | 3 | ||
Cash, cash equivalents and available-for-sale investments, Gross Unrealized Losses | (69) | (26) | ||
Cash, cash equivalents and available-for-sale investments, Estimated Fair Value | 61,627 | 51,738 | ||
Commercial Paper [Member] | ||||
Net Investment [Line Items] | ||||
Cash, cash equivalents and available-for-sale investments, Amortized Cost | 20,880 | 42,362 | ||
Cash, cash equivalents and available-for-sale investments, Gross Unrealized Gains | 6 | |||
Cash, cash equivalents and available-for-sale investments, Gross Unrealized Losses | (24) | (20) | ||
Cash, cash equivalents and available-for-sale investments, Estimated Fair Value | $ 20,856 | $ 42,348 |
Cash, Cash Equivalents and Sh35
Cash, Cash Equivalents and Short-term Investments - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Investments Schedule [Abstract] | |||
Investments with a contractual maturity of greater than one year | $ 0 | $ 0 | |
Other-than-temporary impairment charges | $ 0 | $ 0 | $ 0 |
Stockholders' Equity - Addition
Stockholders' Equity - Additional Information (Detail) - USD ($) $ in Millions | Jan. 01, 2017 | Jul. 23, 2014 | Jan. 31, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
RSUs [Member] | ||||||
Class of Stock [Line Items] | ||||||
Aggregate pre-tax intrinsic value of RSUs outstanding | $ 8.9 | |||||
Weighted-average remaining contractual term of RSUs outstanding | 2 years | |||||
Common Stock Options [Member] | ||||||
Class of Stock [Line Items] | ||||||
Aggregate pre-tax intrinsic value of options outstanding and exercisable | $ 33.2 | |||||
Aggregate pre-tax intrinsic value of options outstanding | 61 | |||||
Aggregate pre-tax intrinsic value of options exercised | $ 14.6 | $ 5.5 | $ 12.7 | |||
Weighted-average remaining contractual term of options outstanding | 7 years 10 months 25 days | |||||
Weighted-average remaining contractual term of options exercisable | 7 years 2 months 12 days | |||||
2014 Employee Stock Purchase Plan [Member] | ||||||
Class of Stock [Line Items] | ||||||
Shares authorized for future issuance | 496,092 | |||||
Shares Issued | 200,000 | 100,000 | 100,000 | |||
2014 Equity Incentive Plan [Member] | ||||||
Class of Stock [Line Items] | ||||||
Percentage of shares outstanding | 3.00% | |||||
Shares reserved for issuance | 7,156,121 | 4,750,000 | ||||
Maximum number of shares to be issued | 10,000,000 | |||||
Common stock, capital shares reserved for future issuance, increase during period | 860,019 | |||||
2014 Equity Incentive Plan [Member] | RSUs [Member] | ||||||
Class of Stock [Line Items] | ||||||
Vesting period | 3 years | |||||
2014 Equity Incentive Plan [Member] | Incentive Stock Option [Member] | ||||||
Class of Stock [Line Items] | ||||||
Price of options granted, percentage | 100.00% | |||||
ISOs vested , description | ISOs granted under the 2014 Plan generally vest 25% after the completion of twelve months of service and the balance vests in equal monthly installments over the next 36 months of service and expire 10 years from the grant date. | |||||
Expiry period of options granted | 10 years |
Stockholders' Equity - Summary
Stockholders' Equity - Summary of Stock Option Activity (Detail) - Common Stock Options [Member] shares in Thousands | 12 Months Ended |
Dec. 31, 2017$ / sharesshares | |
Class of Stock [Line Items] | |
Options outstanding, beginning of period | shares | 3,585 |
Options granted | shares | 1,286 |
Options exercised | shares | (849) |
Options forfeited | shares | (230) |
Options expired | shares | (4) |
Options outstanding, end of period | shares | 3,788 |
Options exercisable | shares | 1,881 |
Options price, outstanding, beginning of period | $ / shares | $ 14.81 |
Options price, granted | $ / shares | 16.04 |
Options price, exercised | $ / shares | 9.06 |
Options price, forfeited | $ / shares | 18.84 |
Option price, expired | $ / shares | 2.62 |
Options price, outstanding, end of period | $ / shares | 16.28 |
Options price, exercisable | $ / shares | $ 14.77 |
Stockholders' Equity - Summar38
Stockholders' Equity - Summary of Restricted Stock Units Activity (Detail) - RSUs [Member] shares in Thousands | 12 Months Ended |
Dec. 31, 2017$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Awarded | shares | 288 |
Forfeited | shares | (13) |
Outstanding, end of period | shares | 275 |
Awarded | $ / shares | $ 13.74 |
Forfeited | $ / shares | 15.57 |
Outstanding, end of period | $ / shares | $ 13.65 |
Stock-based Compensation Expe39
Stock-based Compensation Expense - Summary of Stock Based Compensation Expense (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense | $ 9,820 | $ 7,467 | $ 4,864 |
Cost of Sales [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense | 892 | 708 | 417 |
Selling, General and Administrative [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense | 7,292 | 5,606 | 3,812 |
Research and Development [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense | $ 1,636 | $ 1,153 | $ 635 |
Stock-Based Compensation Expe40
Stock-Based Compensation Expense - Additional Information (Detail) $ in Millions | 12 Months Ended |
Dec. 31, 2017USD ($) | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Unearned stock-based compensation | $ 18.1 |
Weighted average period for unearned stock-based compensation to be recognized | 2 years 4 months 24 days |
Stock-based Compensation Expe41
Stock-based Compensation Expense - Summary of Weighted Average Assumptions Used to Estimate Options Using Black-Scholes Model (Detail) - $ / shares | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 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 19 days | 1 year 3 months 19 days | 1 year 3 months 19 days |
Expected volatility | 44.00% | 48.00% | 38.00% |
Risk-free interest rate | 1.30% | 0.70% | 0.40% |
Dividend yield | 0.00% | 0.00% | 0.00% |
Fair value | $ 8.71 | $ 4.46 | $ 7.29 |
2014 Equity Incentive Plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected term (years) | 6 years | 6 years | 6 years |
Expected volatility | 45.00% | 44.00% | 48.00% |
Risk-free interest rate | 2.10% | 1.50% | 1.60% |
Dividend yield | 0.00% | 0.00% | 0.00% |
Fair value | $ 7.24 | $ 7.83 | $ 10.66 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017USD ($)ft² | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | |
Commitments and Contingencies Disclosure [Abstract] | |||
Operating lease, Date | 2012-03 | ||
Renewal provision allowing the Company to extend lease, percentage | 95.00% | ||
Lease agreement description | Rental payments are charged to expense on a straight-line basis over the period of the lease. The lease agreement requires the Company to pay executory costs such as real estate taxes, insurance and repairs, and includes a renewal provision allowing the Company to extend this lease for an additional three years at 95% of the then-current fair market rental rate. | ||
Additional area under operating lease agreement | ft² | 17,900 | ||
Total area under operating lease agreement | ft² | 50,400 | ||
Operating lease , expiration date | May 31, 2020 | ||
Building improvements payable by the lessor | $ 1 | ||
Rent expense | 1.9 | $ 2 | $ 1.9 |
Commitments to suppliers for purchases | $ 5.4 |
Commitments and Contingencies43
Commitments and Contingencies - Summary of Future Minimum Annual Operating Lease Payments (Detail) $ in Thousands | Dec. 31, 2017USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
2,018 | $ 1,580 |
2,019 | 1,625 |
2,020 | 685 |
Thereafter | 0 |
Total | $ 3,890 |
Employee Retirement Plan - Addi
Employee Retirement Plan - Additional Information (Detail) - USD ($) $ in Millions | 1 Months Ended | 12 Months Ended | ||
Jan. 31, 2007 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Defined Benefit Plan Disclosure [Line Items] | ||||
Maximum annual contribution per employee, percent | 100.00% | |||
Contributions, annual vesting percentage | 25.00% | |||
Contributions, vesting period | 4 years | |||
Matching contribution description | Company may also make matching contributions of up to 3% of an employee's eligible compensation. | |||
Profit sharing or matching contribution by employer | $ 0.3 | $ 0.3 | $ 0.2 | |
Maximum [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Matching contribution percentage | 3.00% |
Income Taxes - Schedule of Fede
Income Taxes - Schedule of Federal Statutory Rate to Loss Before Income Taxes Reconciles to Provision for Income Taxes (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |||
Tax at federal statutory rate | $ (5,563) | $ (8,575) | $ (9,056) |
State tax, net of federal benefit | (575) | (1,210) | (589) |
Permanent items | 460 | 549 | 463 |
Stock-based compensation | (2,919) | 295 | 212 |
R&D tax credit | (627) | (536) | (559) |
Change in U.S. federal tax rate | 20,974 | ||
Change in valuation allowance | (11,750) | 9,477 | 9,529 |
Provision for income taxes | $ 0 | $ 0 | $ 0 |
Income Taxes - Schedule of Sign
Income Taxes - Schedule of Significant Components of Net Deferred Tax Assets (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Deferred tax assets: | ||
Net operating losses | $ 38,531 | $ 46,478 |
R&D tax credit | 5,983 | 4,612 |
Accruals and other | 6,730 | 7,456 |
Gross deferred tax assets | 51,244 | 58,546 |
Deferred tax liabilities: | ||
Depreciation and amortization | (212) | (337) |
Deferred tax liabilities, gross | (212) | (337) |
Net deferred tax assets: | 51,032 | 58,209 |
Valuation allowance | (51,032) | (58,209) |
Net deferred tax assets | $ 0 | $ 0 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Jan. 01, 2017 | |
Income Tax Contingency [Line Items] | ||||
U.S. federal corporate tax rate | 35.00% | |||
Decrease in net deferred tax asset | $ 21,000 | |||
Increase (Decrease) in valuation allowance | (7,200) | $ 9,500 | ||
Net operating loss carryforwards, federal | 149,100 | |||
Net operating loss carryforwards, state | 53,000 | |||
Research and development tax credits | $ 5,983 | $ 4,612 | ||
Tax years beginning, description | Tax years beginning in 2004 through 2017 remain open to examination by the major taxing authorities to which the Company is subject to. | |||
Accounting Standards Update 2016-09 [Member] | ||||
Income Tax Contingency [Line Items] | ||||
Increase in deferred tax asset | $ 4,600 | |||
Scenario, Forecast [Member] | ||||
Income Tax Contingency [Line Items] | ||||
U.S. federal corporate tax rate | 21.00% | |||
Earliest Tax Year [Member] | ||||
Income Tax Contingency [Line Items] | ||||
Tax examination year | 2,004 | |||
Latest Tax Year [Member] | ||||
Income Tax Contingency [Line Items] | ||||
Tax examination year | 2,017 | |||
Federal [Member] | ||||
Income Tax Contingency [Line Items] | ||||
Research and development tax credits | $ 4,400 | |||
Operating loss carryforwards, expiration year | 2,026 | |||
Research and development tax credits, expiration year | 2,026 | |||
State [Member] | ||||
Income Tax Contingency [Line Items] | ||||
Research and development tax credits | $ 3,900 | |||
Operating loss carryforwards, expiration year | 2,028 |
Income Taxes - Schedule of Reco
Income Taxes - Schedule of Reconciliation of Change in Unrecognized Tax Benefit (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |||
Beginning of year | $ 1,374 | $ 1,094 | $ 861 |
Additions for tax positions related to: | |||
Current year | 286 | 294 | 227 |
Prior years | (14) | 6 | |
End of year | $ 1,660 | $ 1,374 | $ 1,094 |
Supplemental Quarterly Financ49
Supplemental Quarterly Financial Information - Quarterly Financial Information of Statements of Operations (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 30, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Revenue | $ 29,529 | $ 22,313 | $ 23,985 | $ 20,474 | $ 24,231 | $ 18,468 | $ 19,317 | $ 16,692 | $ 96,301 | $ 78,708 | $ 61,593 |
Cost of sales | 5,123 | 3,808 | 3,684 | 2,884 | 3,888 | 2,788 | 3,117 | 3,210 | 15,499 | 13,003 | 12,288 |
Gross profit | $ 24,406 | $ 18,505 | $ 20,301 | $ 17,590 | $ 20,343 | $ 15,680 | $ 16,200 | $ 13,482 | 80,802 | 65,705 | 49,305 |
Gross margin | 83.00% | 83.00% | 85.00% | 86.00% | 84.00% | 85.00% | 84.00% | 81.00% | |||
Operating expenses: | |||||||||||
Sales, general and administrative | $ 22,298 | $ 18,746 | $ 18,682 | $ 20,319 | $ 19,833 | $ 17,905 | $ 17,795 | $ 17,393 | 80,045 | 72,926 | 59,637 |
Research and development | 5,618 | 4,346 | 4,176 | 4,220 | 5,570 | 4,237 | 4,588 | 4,495 | 18,360 | 18,890 | 16,608 |
Total operating expenses | 27,916 | 23,092 | 22,858 | 24,539 | 25,403 | 22,142 | 22,383 | 21,888 | 98,405 | 91,816 | 76,245 |
Loss from operations | (3,510) | (4,587) | (2,557) | (6,949) | (5,060) | (6,462) | (6,183) | (8,406) | (17,603) | (26,111) | (26,940) |
Interest and other income, net | 358 | 326 | 288 | 268 | 244 | 236 | 224 | 185 | 1,240 | 889 | 306 |
Net loss | $ (3,152) | $ (4,261) | $ (2,269) | $ (6,681) | $ (4,816) | $ (6,226) | $ (5,959) | $ (8,221) | $ (16,363) | $ (25,222) | $ (26,634) |
Basic and diluted net loss per share | $ (0.11) | $ (0.15) | $ (0.08) | $ (0.23) | $ (0.17) | $ (0.22) | $ (0.21) | $ (0.29) | $ (0.56) | $ (0.89) | $ (1.02) |
Shares used to compute basic and diluted net loss per share | 29,538 | 29,269 | 28,950 | 28,708 | 28,610 | 28,479 | 28,379 | 28,207 | 29,119 | 28,420 | 26,159 |
Schedule II - Valuation and Q50
Schedule II - Valuation and Qualifying Accounts (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Allowance for doubtful accounts: | |||
Beginning | $ 162 | $ 86 | |
Charges | 62 | 155 | $ 92 |
Write-offs | (74) | (79) | (6) |
Ending | $ 150 | $ 162 | $ 86 |