Hansen Medical (HNSN) 10-Q 10 Aug 15 2015 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2015	Jul. 31, 2015
Document Information [Line Items]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Jun. 30, 2015
Document Fiscal Year Focus	2,015
Document Fiscal Period Focus	Q2
Trading Symbol	HNSN
Entity Registrant Name	HANSEN MEDICAL INC
Entity Central Index Key	1,276,591
Current Fiscal Year End Date	--12-31
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding		188,782,282

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
Current assets:
Cash and cash equivalents	$ 40,233	$ 24,528
Short-term investments	1,431	1,973
Accounts receivable, net of allowance of $35 as of June 30, 2015 and $0 as of December 31, 2014, respectively	2,497	5,121
Inventories	11,184	11,492
Prepaids and other current assets	986	1,678
Total current assets	56,331	44,792
Property and equipment, net	2,639	2,328
Restricted cash	5,380	5,376
Other assets	660	1,179
Total assets	65,010	53,675
Current liabilities:
Accounts payable	2,025	2,534
Accrued liabilities	3,309	4,942
Current portion of deferred revenue	2,494	3,422
Total current liabilities	7,828	10,898
Deferred rent, net of current portion	313	366
Deferred revenue, net of current portion	120	105
Long-term debt	34,528	34,385
Other long-term liabilities	152	152
Total liabilities	$ 42,941	$ 45,906
Commitments and contingencies (Note 7)
Series A convertible preferred stock, par value $0.0001, 10,000 shares authorized at June 30, 2015 and December 31, 2014, respectively; zero shares issued and outstanding at June 30, 2015 and December 31, 2014 (Note 9)
Stockholders' equity:
Common stock, par value $0.0001: Authorized: 200,000 shares; issued and outstanding: 188,762 and 133,262 shares at June 30, 2015 and December 31, 2014, respectively	$ 19	$ 13
Additional paid-in capital	454,535	414,361
Accumulated other comprehensive income (loss)	(323)	305
Accumulated deficit	(432,162)	(406,910)
Total stockholders' equity	22,069	7,769
Total liabilities, convertible preferred stock and stockholders' equity	$ 65,010	$ 53,675

Condensed Consolidated Balance3

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
Accounts receivable, allowance	$ 35	$ 0
Preferred stock, par value	$ 0.0001	$ 0.0001
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	$ 0.0001	$ 0.0001
Common stock, shares authorized	200,000,000	200,000,000
Common stock, shares issued	188,762,000	133,262,000
Common stock, shares outstanding	188,762,000	133,262,000

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Revenues:
Product	$ 1,677	$ 5,518	$ 6,151	$ 7,870
Service	1,415	1,369	2,735	2,716
Total revenues	3,092	6,887	8,886	10,586
Cost of revenues:
Product	1,866	4,283	5,762	7,027
Service	868	702	1,610	1,259
Total cost of revenues	2,734	4,985	7,372	8,286
Gross profit	358	1,902	1,514	2,300
Operating expenses:
Research and development	3,899	4,809	7,334	9,224
Selling, general and administrative	6,433	8,146	13,135	17,307
Total operating expenses	10,332	12,955	20,469	26,531
Loss from operations	(9,974)	(11,053)	(18,955)	(24,231)
Change in fair value of warrant liability	(1,317)		(2,993)
Interest and other expense, net	(1,201)	(1,222)	(2,468)	(2,471)
Loss before income taxes	(12,492)	(12,275)	(24,416)	(26,702)
Income tax expense	(15)	(15)	(24)	(33)
Net loss	(12,507)	(12,290)	(24,440)	(26,735)
Beneficial conversion feature of Series A convertible preferred stock	(20,224)		(20,224)
Cumulative dividend on Series A convertible preferred stock	(812)		(812)
Net loss attributable to common stockholders	$ (33,543)	$ (12,290)	$ (45,476)	$ (26,735)
Basic and diluted net loss per share	$ (0.21)	$ (0.11)	$ (0.31)	$ (0.25)
Shares used to compute basic and diluted net loss per share	163,107	112,003	148,280	107,692

Condensed Consolidated Stateme5

Condensed Consolidated Statement of Convertible Preferred Stock and Stockholders' Equity - 6 months ended Jun. 30, 2015 - USD ($) shares in Thousands, $ in Thousands	Total	Convertible Preferred Stock	Common Stock	Additional Paid- In Capital	Accumulated Other Comprehensive Income (Loss)	Accumulated Deficit
Beginning Balances (in shares) at Dec. 31, 2014			133,262
Beginning Balances at Dec. 31, 2014	$ 7,769		$ 13	$ 414,361	$ 305	$ (406,910)
Issuance of common stock under equity incentive plan (in shares)	5		5
Issuance of common stock under equity incentive plan	$ 3			3
Issuances of common stock from restricted stock units			159
Withholding taxes paid on vested restricted stock units	(25)			(25)
Issuance of common stock under employee stock purchase plan (in shares)			241
Issuance of common stock under employee stock purchase plan	165			165
Employee share-based compensation expense	1,772			1,772
Issuance of Series A convertible preferred stock, net of issuance cost (in shares)		54
Issuance of Series A convertible preferred stock, net of issuance cost		$ 19,678
Cumulative dividend on Series A convertible preferred stock	(812)	$ 812				(812)
Conversion of Series A convertible preferred stock to common stock (in shares)		(54)	55,095
Conversion of Series A convertible preferred stock to common stock	818	$ (812)	$ 6	812
Reclassification of issuance cost for Series A convertible preferred stock offering to equity	(546)	546		(546)
Beneficial conversion feature of Series A convertible preferred stock	20,224	$ (20,224)		20,224
Reclassification of warrant liability to equity	17,768			17,768
Net loss	(24,440)					(24,440)
Change in unrealized loss on investments	(544)				(544)
Translation adjustments	(84)				(84)
Ending Balances (in shares) at Jun. 30, 2015			188,762
Ending Balances at Jun. 30, 2015	$ 22,069		$ 19	$ 454,535	$ (323)	$ (432,162)

Condensed Consolidated Stateme6

Condensed Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Net loss	$ (12,507)	$ (12,290)	$ (24,440)	$ (26,735)
Other comprehensive loss, net:
Change in unrealized losses on investments	(442)	(125)	(544)	(42)
Foreign currency translation adjustment	(20)	17	(84)	19
Change in other comprehensive loss	(462)	(108)	(628)	(23)
Comprehensive loss	$ (12,969)	$ (12,398)	$ (25,068)	$ (26,758)

Condensed Consolidated Stateme7

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
Cash flows from operating activities:
Net loss	$ (24,440)	$ (26,735)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	514	1,345
Stock-based compensation	1,772	1,415
Payment-in-kind interest on loan	521	505
Amortization of deferred finance costs and discount on debt	193	193
Change in fair value of warrant liability	2,993
Provision (recovery) of doubtful accounts	35	(100)
Write-off of discontinued product line inventory	121
Gain from sales of property and equipment	(36)
Loss on sale of financing receivable		19
Changes in operating assets and liabilities:
Accounts receivable	2,625	1,159
Inventories	(518)	27
Deferred cost of revenues	70	78
Prepaids and other current assets	621	493
Other long-term assets	(52)	780
Accounts payable	(788)	(351)
Accrued liabilities	(1,633)	1,321
Deferred revenue	(913)	316
Other long-term liabilities	(53)	522
Net cash used in operating activities	(18,968)	(19,013)
Cash flows from investing activities:
Purchase of property and equipment	(156)	(331)
Proceeds from sales of property and equipment	36
Change in restricted cash	(4)	(11)
Net cash used in investing activities	(124)	(342)
Cash flows from financing activities:
Proceeds from issuance of Series A convertible preferred stock	35,000
Proceeds from exercise of Series A warrants		14,000
Costs related to issuance of Series A convertible preferred stock	(267)
Proceeds from exercise of common stock options	3	2,586
Proceeds from employee stock purchase plan	165	293
Withholding taxes paid on vested restricted stock units	(20)	(620)
Net cash provided by financing activities	34,881	16,259
Effect of exchange rate changes on cash and cash equivalents	(84)
Net increase (decrease) in cash and cash equivalents	15,705	(3,096)
Cash and cash equivalents at beginning of period	24,528	27,995
Cash and cash equivalents at end of period	40,233	24,899
Supplemental disclosure of:
Cash paid for interest	1,908	$ 1,851
Non-cash investing and financing activity:
Equipment transfer from inventories to property and equipment	705
Series A convertible preferred stock issuance costs not yet paid	279
Cumulative dividend on Series A convertible preferred stock	812
Beneficial conversion feature of Series A convertible preferred stock	20,224
Issuance of Series E Warrants	$ 14,775

The Company

The Company	6 Months Ended
	Jun. 30, 2015
The Company	1. The Company Nature of Operations Hansen Medical, Inc. (the “Company”) develops, manufactures and markets a new generation of medical robotics designed for accurate positioning, manipulation and stable control of catheters and catheter-based technologies. The Company was incorporated in the state of Delaware in September 2002 and is headquartered in Mountain View, California. The Company has wholly-owned subsidiaries located in the United Kingdom and Germany. Both subsidiaries are engaged in marketing the Company’s products in the Europe, Middle East and Africa (“EMEA”) region. Need to Raise Additional Capital These condensed consolidated financial statements are prepared on a going concern basis that contemplates the realization of assets and discharge of liabilities in the normal course of business. Since inception, the Company has incurred cumulative net losses of approximately $432.2 million. The Company expects such losses to continue as it commercializes its technologies and develop new applications and products. The Company continues to face significant uncertainties and challenges. The Company faces uncertainty related to the commercialization of its Magellan™ Robotic System (“Magellan System”) and its projected revenue is heavily dependent on a successful commercialization of this system and Sensei ® On March 11, 2015, the Company raised $35.0 million in gross proceeds from the sale of Series A convertible preferred stock and a related issuance of Series E warrants (“Series E Warrants”) to purchase common stock (see Note 9). As of June 30, 2015, the Company’s cash, cash equivalents, short-term investments and restricted cash balances were $47.0 million. The Company anticipates that its existing available capital resources as of June 30, 2015 and the estimated amounts received through the sale of its products and services will not be sufficient to meet its anticipated cash requirements for the next twelve months. These factors raise substantial doubt about the Company’s ability to continue as a going concern. The Company will need to obtain sufficient additional funding to satisfy its current and longer term liquidity requirements and may attempt to do so at any time by, for example, selling equity or debt securities, licensing core or non-core intellectual property assets, entering into future research and development funding arrangements, refinancing or restructuring existing debt arrangements or entering into a credit facility in order to meet its continuing cash needs. The Company cannot guarantee that future equity or debt financing or credit facilities will be available in amounts or on terms acceptable to it, if at all, nor can the Company guarantee that it will be able to license core or non-core intellectual property assets or enter into future research and development funding arrangements. If such financing, licensing, funding or credit arrangements do not meet the Company’s current and longer term needs, the Company may be required to extend its existing cash and liquidity by adopting additional cost-cutting measures, including reductions in its work force, reducing the scope of, delaying or eliminating some or all of its planned research, development and commercialization activities and/or reducing marketing, customer support or other resources devoted to the Company’s products. Any of these factors could harm the Company’s financial condition. Failure to raise additional funding or manage spending may adversely impact the Company’s ability to achieve its long term intended business objectives. The Company will continue to evaluate its financial condition based upon changing future economic conditions, and will consider the implementation of additional cost reductions if and as circumstances warrant. The accompanying consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty.

Summary of Significant Accounti

Summary of Significant Accounting Policies	6 Months Ended
	Jun. 30, 2015
Summary of Significant Accounting Policies	2. Summary of Significant Accounting Policies Basis of Presentation The accompanying unaudited condensed consolidated financial statements (the “condensed consolidated financial statements”) have been prepared in accordance with generally accepted accounting principles in the United States of America (“GAAP”) for interim financial information and therefore do not contain all of the information and footnotes required by GAAP and the rules and regulations of the Securities and Exchange Commission (the “SEC”) for annual financial statements. The Company’s fiscal year ends on December 31. The condensed consolidated balance sheet as of December 31, 2014 was derived from audited financial statements. In the opinion of the Company’s management, these unaudited financial statements include all adjustments, which are of a normal recurring nature, necessary for a fair presentation. Interim results are not necessarily indicative of results for a full year or any other interim period. The information included in this Quarterly Report on Form 10-Q should be read in conjunction with the Company’s Annual Report on Form 10-K for the year ended December 31, 2014 as filed with the SEC. The accompanying condensed consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All significant intercompany balances and transactions have been eliminated in consolidation. Reclassification of Prior Period Balances Certain reclassifications have been made to prior period amounts to conform to the current period presentation. Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Significant estimates relate to the recognition of revenue, the evaluation of customer credit risk, the valuation of investments, inventory valuations, the determination of impairment of assets, stock-based compensation, loss contingencies, the valuation of warrants, and deferred tax assets, among others. Actual results may differ from those estimates. Revenue Recognition The Company’s revenues are primarily derived from the sale of the Sensei System and the Magellan System and the associated catheters as well as the sale of customer service contracts, which include post-contract customer support (“PCS”). The Company sells its products directly to customers as well as through distributors. Under the Company’s revenue recognition policy, revenues are recognized when persuasive evidence of an arrangement exists, title and risk of loss has passed, delivery to the customer has occurred or the services have been fully rendered, the sales price is fixed or determinable and collectability is reasonably assured. • Persuasive Evidence of an Arrangement • Delivery • Systems and Disposable Products. • Customer Service Revenue. • Multiple-element Arrangements. • Sales Price Fixed or Determinable. • Collectability. Significant management judgments and estimates are made in connection with the determination of revenue to be recognized and the period in which it is recognized. If different judgments and estimates were utilized, the amount of revenue to be recognized and the period in which it is recognized could differ materially from the amounts reported. Concentration of Credit Risk and Other Risks and Uncertainties Financial instruments that potentially subject the Company to significant concentrations of credit risk consist primarily of cash and cash equivalents, short-term investments and accounts receivable. Cash and cash equivalents are deposited in demand and money market accounts at two financial institutions. At times, such deposits may be in excess of insured limits. The Company has not experienced any losses on its deposits of cash and cash equivalents. The Company had one customer who constituted 29% of the Company’s accounts receivable at June 30, 2015. The Company had four customers who constituted 26%, 14%, 12% and 12%, respectively, of the Company’s net accounts receivable at December 31, 2014. As of June 30, 2015, the Company has not experienced any significant losses on its accounts receivable. One customer accounted for 16% of total revenues during the three months ended June 30, 2015. Three customers accounted for 27%, 11% and 11%, respectively, of total revenues during the three months ended June 30, 2014. Three customers accounted for 15%, 11% and 10%, respectively, of total revenues during the six months ended June 30, 2015. Three customers accounted for 18%, 12% and 10%, respectively, of total revenues during the six months ended June 30, 2014. Most of the products developed by the Company require clearance from the U.S. Food and Drug Administration (“FDA”) or corresponding approval by foreign regulatory agencies prior to commercial sales. These clearances and approvals are required for both the Sensei and Magellan Systems and all related catheters and accessories: Sensei: The Company received CE Mark approval to market its Sensei System in Europe in the fourth quarter of 2006 and received CE Mark approval to market its Artisan ® Magellan: At the current time the Company has received clearance and approval for the Magellan System and the Magellan 6Fr, 9Fr and 10Fr Robotic Catheters and related accessories in various territories. The Company received CE Mark approval for its Magellan System in July 2011 and received CE Mark approval for the Magellan 9Fr Robotic Catheter and related accessories in October 2011. The Magellan 6Fr Robotic Catheter received CE Mark approval in October 2014, while the Magellan 10Fr Robotic Catheter received CE Mark approval in April 2015. The Company received FDA clearance for marketing its Magellan System, including the Magellan 9Fr Robotic Catheter and accessories in June 2012, the Magellan 6Fr Robotic Catheter in February 2014, and the Magellan 10Fr Robotic Catheter in July 2015. The FDA clearances and CE Mark approvals enable the company to initiate use of all Magellan Systems and catheters with its customers in the United States, the European Union and certain other geographies. However, there can be no assurance that current products or any new products the Company develops in the future will receive the clearances or approvals necessary to allow the Company to market those products in certain desirable markets. If the Company is denied clearance or approvals or clearance or approvals are delayed, it could have a material adverse impact on the Company. The medical device industry is characterized by frequent and extensive litigation and administrative proceedings over patent and other intellectual property rights. Whether a product infringes a patent involves complex legal and factual issues, the determination of which is often difficult to predict, and the outcome may be uncertain until the court has entered final judgment and all appeals are exhausted. The Company’s competitors may assert, and have asserted in the past, that the Company’s products or the use of the Company’s products are covered by United States or foreign patents held by them. This risk is heightened due to the numerous issued and pending patents relating to the use of catheter-based procedures in the medical technology field. Fair Value Measurements GAAP defines fair value as an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or liability. As a basis for considering such assumptions, authoritative guidance establishes a three-tier value hierarchy, which prioritizes the inputs used in measuring fair value as follows: • Level 1 Inputs Quoted prices (unadjusted) in active markets for identical assets or liabilities. • Level 2 Inputs Inputs other than quoted prices in active markets that are observable either directly or indirectly. • Level 3 Inputs Unobservable inputs in which there is little or no market data, which require the Company to develop its own assumptions. This hierarchy requires the use of observable market data when available and to minimize the use of unobservable inputs when determining fair value. Beneficial conversion feature In accordance with Financial Accounting Standards Board (“FASB”) Accounting Standard Codification (“ASC”) 470-20, Debt with Conversion and Other Options Stock-based Compensation The Company accounts for share-based compensation plan in accordance with the provisions of FASB ASC No. 718-10-30, Stock Compensation Initial Measurement, The BSM option valuation model determines the fair value of stock-based awards using the following assumptions • Expected Volatility • Expected Term • Risk-Free Interest Rate. • Dividend Yield. The Company measures the fair value of RSUs and PSUs using the closing stock price of a share of the Company’s common stock on the grant date. In addition, the Company also estimates a forfeiture rate for its stock options and RSUs. The Company estimates its forfeiture rate based on an analysis of its actual forfeitures based on actual forfeiture experience, analysis of employee turnover behavior and other factors. The impact from any forfeiture rate adjustment would be recognized in full in the period of adjustment and, if the actual number of future forfeitures differs from its estimates, the Company might be required to record adjustments to its stock-based compensation in future periods. For PSUs, the Company recognizes stock-based compensation expense based on the probable outcome that the performance condition will be achieved. Recent Accounting Pronouncements In May 2014, the FASB issued Accounting Standards Update (“ASU”) 2014-09, Revenue from Contracts with Customers (Topic 606), Revenue Recognition In April 2015, the FASB issued ASU 2015-03, Interest—Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Cost In January 2015, the FASB issued ASU 2015-01, Simplifying Income Statement Presentation by Eliminating the Concept of Extraordinary Items. In August 2014, the FASB issued ASU No. 2014-15, Presentation of Financial Statements—Going Concern (Subtopic 205-40 Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern

Fair Value of Assets and Liabil

Fair Value of Assets and Liabilities	6 Months Ended
	Jun. 30, 2015
Fair Value of Assets and Liabilities	3. Fair Value of Assets and Liabilities The Company’s financial instruments consist principally of cash and cash equivalents, short-term investments, accounts receivable, accounts payable and short-term and long-term debt. Cash and cash equivalents, short-term investments and accounts receivable, net of allowance, are reported at their respective fair values on the consolidated balance sheets. Short-term and long-term debt are reported at their amortized cost on the consolidated balance sheets. The remaining financial instruments are reported on the consolidated balance sheets at amounts that approximate current fair values. The amortized cost and fair value of assets, along with gross unrealized gains and losses, were as follows (in thousands): Cash, Cash Equivalents, Short-term Investments and Restricted Cash Balance Sheet Classification Gross Gross Cash and Amortized Unrealized Unrealized Fair cash Short-term Restricted Cost Gains Losses Value Equivalents Investments Cash June 30, 2015: Cash $ 11,281 $ — $ — $ 11,281 $ 11,281 $ — $ — Money market funds 34,332 — — 34,332 28,952 — 5,380 Corporate equity securities 1,572 (141 ) — 1,431 — 1,431 — $ 47,185 $ (141 ) $ — $ 47,044 $ 40,233 $ 1,431 $ 5,380 December 31, 2014: Cash $ 3,586 $ — $ — $ 3,586 $ 3,586 $ — $ — Money market funds 26,318 — — 26,318 20,942 — 5,376 Corporate equity securities 1,572 401 — 1,973 — 1,973 — $ 31,476 $ 401 $ — $ 31,877 $ 24,528 $ 1,973 $ 5,376 Fair Value Measurements The fair value hierarchy of the Company’s assets that are measured at fair value, by level, is as follows (in thousands): Fair Value Measurements Using Quoted Prices in Significant other Active Markets for Observable Unobservable Identical Assets Inputs Inputs (Level 1 Inputs) (Level 2 Inputs) (Level 3 Inputs) Total June 30, 2015: Money market funds $ 34,332 $ — $ — $ 34,332 Corporate equity securities 1,431 — — 1,431 $ 35,763 $ — $ — $ 35,763 December 31, 2014: Money market funds $ 26,318 $ — $ — $ 26,318 Corporate equity securities 1,973 1,973 $ 28,291 $ — $ — $ 28,291 Investment instruments valued using Level 1 inputs include the Company’s money market securities and certain of the corporate equity securities which were obtained by the Company as part of the Luna litigation settlement for which there is now not a significant non-marketability issue. The Company periodically assesses whether significant facts and circumstances have arisen to indicate that an impairment, which is other than temporary, of the fair value of any underlying investment has occurred. There were no transfers between Level 1 and Level 2, or into or out of Level 3, during the three and six months ended June 30, 2015. The changes in Level 3 liabilities measured at fair value on a recurring basis was as follow (in thousands): Level 3 Input for Six Months Ended June 30, 2015 (In thousands) Balance at December 31, 2014 $ — Additions at March 11, 2015 (14,776 ) Change in fair value of warrant liability (2,993 ) Reclass to additional paid-in capital 17,769 Balance at June 30, 2015 $ — Warrant liability In connection with the issuance of Series A convertible preferred stock on March 11, 2015, the Company also issued Series E Warrants to the participating investors to purchase an aggregate of 53,846,000 shares of common stock with an exercise period of two years from the date of issuance. On the date of issuance, the exercise price for the Series E Warrants was the lesser of $0.975 per share or a 50% premium on the per share trailing volume weighted average share price of the common stock on NASDAQ for the ten trading days ending on dates specified in the form of Series E Warrants filed with the SEC. The Series E Warrants were not exercisable until receipt of stockholder approval to among other things increase the number of authorized shares of common stock of the Company. The proposal relating to such approval was presented and received the stockholder approval at the 2015 Annual Meeting of the Company held on May 12, 2015 (the “Requisite Stockholder Approval”). As a result of the contingency which was deemed outside the Company’s control, such Series E Warrants did not originally meet the criteria for classification as equity under ASC 815. As such, the Company classified the Series E Warrants as current liabilities at fair value upon issuance of $14.8 million. The Company used a third party valuation that utilized the Monte Carlo simulation model to estimate the fair value of the Series A convertible preferred stock and Series E Warrants. The valuation used a simulation of the Company’s periodic stock price, expected volatility of the price, adjusted for conversion price, and the remaining contractual term of the warrants. The Series E Warrants were subject to re-measurement at each balance sheet date, with any change in fair value recognized as warrant expense, a component of other income (expense) reflected within the statement of operations. The Company recorded the change in fair value of $1.3 million and $3.0 million in other income (expense) on the condensed consolidated statements of operations for the three and six months ended June 30, 2015, respectively. Upon receipt of Requisite Stockholder Approval, all criteria for the Series E Warrants to be classified as equity were met. Using the BSM model with an exercise price of $0.975 per share for the Series E Warrants, the Company reclassified the warrant liability of $17.8 million, representing the fair value of the Company’s warrant liability as of the Requisite Stockholder Approval date, to additional paid-in capital. See Note 9 for further information regarding the Company’s 2015 private placement of Series A convertible preferred stock and Series E Warrants. All of the Series E Warrants are currently issued and outstanding as of June 30, 2015. Long-term Debt The fair value of the Company’s long-term debt was estimated to be $34.5 million as of June 30, 2015 and $34.2 million as of December 31, 2014 based on an internal valuation model that utilized the then-current rates available to the Company for debt of a similar term and remaining maturity, which constitutes Level 2 inputs under the fair value hierarchy. Considerable judgment is required in interpreting market data to develop estimates of fair value. Accordingly, the fair value estimate presented herein is not necessarily indicative of the amount that the Company or holders of the instruments could realize in a current market exchange. The use of different assumptions and/or estimation methodologies may have a material effect on the estimated fair value. See Note 8 for further information regarding the Company’s long-term debt.

Balance Sheet Components

Balance Sheet Components	6 Months Ended
	Jun. 30, 2015
Balance Sheet Components	4. Balance Sheet Components Inventories (in thousands) June 30, December 31, 2015 2014 Raw materials $ 4,887 $ 4,996 Work in process 2,934 4,571 Finished goods 3,363 1,925 Total Inventories $ 11,184 $ 11,492 Property and equipment, net (in thousands) June 30, December 31, 2015 2014 Furniture and leasehold improvements $ 11,267 $ 11,455 Laboratory equipment 12,041 11,374 Computer equipment and software 2,937 2,911 26,245 25,740 Less: Accumulated depreciation and amortization (23,606 ) (23,412 ) Property and equipment, net $ 2,639 $ 2,328 Accrued liabilities (in thousands) June 30, December 31, 2015 2014 Accrued salaries, commission, bonus and benefits $ 1,554 $ 2,835 Accrued royalties 439 594 Accrued legal and other professional fees 393 169 Tax accruals 323 274 Clinical related accruals 208 394 Other accrued expenses 392 676 Accrued liabilities $ 3,309 $ 4,942

Agreements with Intuitive Surgi

Agreements with Intuitive Surgical	6 Months Ended
	Jun. 30, 2015
Agreements with Intuitive Surgical	5. Agreements with Intuitive Surgical In October 2012, the Company signed an updated license agreement with Intuitive Surgical Operations, Inc. and Intuitive Surgical, Inc. (collectively, “Intuitive Surgical”), under which Intuitive Surgical paid the Company a $20.0 million licensing fee, and a stock purchase agreement to sell 5,291,005 shares of the Company’s common stock to Intuitive Surgical for an aggregate purchase price of $10.0 million. The amendment of the license agreement is an update to the co-exclusive cross license agreement signed by the companies in 2005. Under the terms of the amended agreement, Intuitive Surgical’s existing co-exclusive rights to the Company’s patent portfolio to certain non-vascular procedures have been extended to include patents filed or conceived by the Company subsequent to the original 2005 agreement up to and including the period three years subsequent to the amendment. However, the Company has no obligation to conduct any research activities under the amendment. The Company retains the right to use its intellectual property for all clinical applications, both vascular and non-vascular. The Company has concluded that the value associated with patents filed or conceived in the three years subsequent to the amendment is de minimis and therefore the $20.0 million upfront payments for the licensing of intellectual property was recognized in the statement of operations in fiscal year 2012. The $10.0 million associated with the stock purchase agreement was recorded to common stock and additional paid-in capital on the balance sheet in 2012. The Company has minimum royalty obligations of $0.2 million per year under the terms of its cross license agreement with Intuitive Surgical. For the three months ended June 30, 2015 and 2014, the Company incurred an immaterial amount and $0.1 million, respectively, of cost related to the royalty obligations to Intuitive Surgical. For both the six months ended June 30, 20l5 and 2014, the Company incurred royalty obligations to Intuitive Surgical of $0.1 million.

Agreements with Philips

Agreements with Philips	6 Months Ended
	Jun. 30, 2015
Agreements with Philips	6. Agreements with Philips In February 2011, the Company entered, directly and through a wholly-owned subsidiary, into various agreements with Koninklijke Philips Electronics N.V. (“Philips”) to allow Philips to develop and commercialize the non-robotic applications of the Company’s Fiber Optic Shape Sensing and Localization (“FOSSL”) technology (the “FOSSL Agreement”). Under the terms of the FOSSL Agreement, Philips obtained exclusive right to develop and commercialize the FOSSL technology in the non-robotic vascular, endoluminal and orthopedic fields. Philips also received non-exclusive rights in other non-robotic medical device fields, but not to any multi-degree of freedom robotic applications. Under the terms of the FOSSL Agreement, if Philips did not meet certain specified commercialization obligations, the Company reserved rights to re-acquire the licenses granted to Philips for pre-determined payments, which payments in the aggregate would be greater than the upfront payment amounts received by the Company from Philips in connection with the agreements related to the FOSSL technology. The FOSSL Agreement also contains customary representations, warranties and indemnification provisions by each party. Each party may terminate the agreement for material breach by the other party. Philips also has the right to terminate the agreement and its rights under the agreement if the Company is acquired by a competitor of the relevant business unit of Philips. In February 2011, the Company amended its extended joint development agreement with Philips (the “JDA”), increasing the amount of funding provided by Philips for the development of the Vascular System and potentially extending and increasing certain royalty fees to be paid to Philips based on sales of the Vascular System, subject to caps based on the amounts Philips contributed to the development of the system. Under the amendment, the Company was eligible to receive up to an additional $78.0 million in future payments associated with the successful commercialization by Philips or its collaborators of products containing FOSSL technology. Approximately two-thirds of these potential future payments could arise from Philips’ sublicensing the FOSSL technology and approximately one-third of the potential future payments were based on Philips’ royalty obligations on its sales of products containing the FOSSL technology. The Company would receive less than half of Philips’ proceeds for its sublicensing FOSSL technology if and following Philips entering into an applicable sublicensing transaction. Philips’ FOSSL-related royalty obligations were to be calculated on a consistent annual basis between 2014 and 2020 in any year only to the extent that Philips achieved a substantial number of commercial placements of FOSSL-enabled products in the calendar year. The Company’s royalty obligations under the JDA provided for the payment of royalties to Philips through October 2017. In August 2015, the Company and Philips entered into an amendment to the FOSSL Agreement and the JDA (the “Amended Agreements”), extinguishing the Company’s rights to re-acquire the licenses in the non-robotic vascular, endoluminal and orthopedic fields in FOSSL technology in exchange for a reduction of all royalties owed or due between the parties of fifty percent (50%). Under the Amended Agreements, the Company’s royalty obligations to Philips based on sales of the Vascular Systems were reduced by fifty percent (50%). The Company’s royalty obligations continue through October 2017. Similarly, Philips royalty obligations were also all reduced by fifty percent (50%), including but not limited to all royalty obligations due under the Amended Agreements that arise from Philips’ sublicensing the FOSSL technology. Under the Amended Agreements, Philips’ FOSSL-related royalty obligations will be calculated on a consistent basis for the royalty period starting with the first calendar year after the first sale by Philips of a FOSSL system and ending with the sixth calendar year after the first sale, but only to the extent that Philips achieves certain number of commercial placements of FOSSL-enabled products during the royalty period. The Amended Agreements contain customary representations, warranties and indemnification provisions by each party. Each party may terminate the agreements for material breach by the other party. Philips also has the right to terminate the agreement and its rights under the agreement if the Company is acquired by a competitor of the relevant business unit of Philips. Under the terms of the Amended Agreements, the Company continues to have no minimum obligation with Philips, and the royalty obligation is based on per unit sales of the Magellan Systems and vascular catheters. For the three months ended June 30, 2015 and 2014, the Company incurred an immaterial amount and $0.5 million, respectively, of cost related to the royalty obligations to Philips. For the six months ended June 30, 20l5 and 2014, the Company incurred royalty obligations to Philips of $0.7 million and $0.6 million, respectively.

Commitments and Contingencies

Commitments and Contingencies	6 Months Ended
	Jun. 30, 2015
Commitments and Contingencies	7. Commitments and Contingencies Operating Lease and Rental Commitments The Company leases its office and laboratory facilities in Mountain View, California under an operating lease which expires in January 2020, with an option to extend the lease for another five years. The Company also rents office space in London, England, under an office rental agreements that ends in April 2016. As of June 30, 2015, future minimum payments under the lease and rental are as follows (in thousands): Future Minimum Years Ending December 31, Lease Payments 2015 (remainder of year) $ 1,127 2016 2,204 2017 2,216 2018 2,282 2019 1,759 Total $ 9,588 Rent expense on a straight-line basis was $0.8 million and $0.6 million for the three months ended June 30, 2015 and 2014, respectively, and $1.4 million and $1.3 million for the six months ended June 30, 2015 and 2014, respectively. Other Royalty Obligations The Company has minimum royalty obligations of $100,000 per year under a license agreement with Mitsubishi Electric Research Laboratories, Inc. (“Mitsubishi”), which reduces to $55,000 per year if the license becomes non-exclusive. The royalty obligation expires in 2018. The Company incurred cost in the amount of $14,000 and $48,000, respectively, related to the royalty obligations to Mitsubishi for the three months ended June 30, 2015 and 2014. Royalty obligations to Mitsubishi for the six months ended June 30, 2015 and 2014 were $49,000 and $67,000, respectively. Indemnification The Company has agreements with each member of its Board of Directors, its President and Chief Executive Officer, its former President and its Interim Chief Financial Officer indemnifying them against liabilities arising from, among other things, actions taken against the Company. To date, the Company has not incurred any material costs as a result of such indemnifications and has not accrued any liabilities related to such obligations in the accompanying financial statements. The Company has agreements with certain customers indemnifying them against liabilities arising from legal actions relating to the customer’s use of intellectual property owned by the Company. To date, the Company has not incurred any material costs as a result of such indemnifications and has not accrued any liabilities related to such obligations in the accompanying financial statements. Legal Proceedings From time to time, the Company is involved in litigation that it believes is of the type common to companies engaged in its line of business, including commercial disputes and employment issues. As of the date of this Quarterly Report on Form 10-Q, the Company was not involved in any pending legal proceedings that it believes could have a material adverse effect on its financial condition, results of operations or cash flows. From time to time, the Company may pursue litigation to assert its legal right and such litigation may be costly and divert the efforts and attention of its management and technical personnel which could adversely affect its business.

Long-term Debt

Long-term Debt	6 Months Ended
	Jun. 30, 2015
Long-term Debt	8. Long-term Debt White Oak Loan In July 2013, the Company executed a secured term loan agreement with White Oak, as a lender and agent for several lenders. On August 23, 2013, the loan agreement was amended and restated and the loan was funded. The amended loan and security agreement provides for term loan debt financing of $33.0 million with a single principal balloon payment due at maturity on December 30, 2017. Cash interest accrues at an 11.0% per annum rate and is payable quarterly. Additionally, a 3.0% per annum payment-in-kind accrues quarterly and is accretive to the principal amount owed under the agreement. Substantially all of the proceeds from the loan were used to fully repay and extinguish previous indebtedness. In connection with the loan, the Company incurred costs of approximately $1.5 million, including payments to the lender agent totaling $0.7 million and the placement agent totaling $0.3 million, that in aggregate are accounted for as debt issuance costs and amortized to interest expense over the life of the loan. Under the loan and security agreement, the Company is obligated to pay White Oak certain servicing, administration and monitoring fees of $32,000 annually. The Company may prepay all or a portion of the outstanding principal balance, subject to paying a prepayment fee of 3.5% of the principal amount of the loan prepaid if the prepayment is made on or before the third anniversary of the funding of the loan or 1.0% of the principal amount of the loan prepaid if the prepayment is made after the third anniversary and on or before the fourth anniversary of the funding of the loan. The Company is also required to make mandatory prepayments upon certain events of loss and certain dispositions of the Company’s assets as described in the loan and security agreement. The Company recognized expense of $0.1 million for the amortization of debt issuance costs related to the White Oak loan for each of the three months ended June 30, 2015 and 2014. The Company recognized expense of $0.2 million for the amortization of debt issuance costs related to the White Oak loan for each of the six months ended June 30, 2015 and 2014. The loan is collateralized by substantially all of the Company’s assets then owned or thereafter acquired, other than its intellectual property, and all proceeds and products thereof. Two of the Company’s wholly-owned subsidiaries, AorTx, Inc. and Hansen Medical International, Inc., have entered into agreements to guarantee the Company’s obligations under the loan and security agreement and have granted first priority security interests in their assets, excluding any of their intellectual property, to secure their guarantee obligations. Under the loan and security agreement, neither the Company nor AorTx, Inc. and Hansen Medical International, Inc. may grant a lien on any intellectual property to third parties. The Company additionally agreed to pledge to lenders shares of each of its direct and indirect subsidiaries as collateral for the loan. Pursuant to the loan and security agreement, the Company is subject to certain affirmative and negative covenants and also to minimum liquidity requirements which require the Company to maintain $15.0 million in liquidity at all times, consisting of at least $13.0 million in cash, cash equivalents and investments, of which $5.0 million is required to be restricted subject to lenders’ control, and $2.0 million in eligible accounts receivable. The loan also limits the Company’s ability to (a) undergo certain change of control events; (b) convey, sell, lease, transfer, assign or otherwise dispose of any of its assets; (c) create, incur, assume, or be liable with respect to certain indebtedness, not including, among other items, subordinated debt; (d) grant liens; (e) pay dividends and make certain other restricted payments; (f) make certain investments; (g) make payments on any subordinated debt; or (h) enter into transactions with any of its affiliates outside of the ordinary course of business, or permit its subsidiaries to do the same. The Company is also required to make mandatory prepayments upon certain events of loss and certain dispositions of its assets described in the loan and security agreement. In the event the Company were to violate any covenants or if White Oak has reason to believe that the Company has violated any covenants, including a significant adverse event clause, and such violations are not cured pursuant to the terms of the loan and security agreement, the Company would be in default under the loan and security agreement, which would entitle lenders to exercise their remedies, including the right to accelerate the debt, upon which the Company may be required to repay all amounts then outstanding under the loan and security agreement. As of June 30, 2015, the Company was in compliance with all financial covenants. Future minimum payments due on the debt as of June 30, 2015 are as follows (in thousands): Years Ending December 31, 2015 (remainder of year) $ 1,970 2016 4,009 2017 41,782 Total remaining payments 47,761 Less: Amount representing interest (13,233 ) 34,528 Less: Current portion of long-term debt — Long-term debt, net of current portion $ 34,528

Convertible Preferred Stock, Co

Convertible Preferred Stock, Common Stock and Warrants	6 Months Ended
	Jun. 30, 2015
Convertible Preferred Stock, Common Stock and Warrants	9. Convertible Preferred Stock, Common Stock and Warrants 2015 Private Placement of Redeemable Convertible Preferred Stock and Warrants On March 11, 2015, the Company entered into a securities purchase agreement (“Purchase Agreement”) to sell an aggregate of 53,846 shares of Series A convertible preferred stock at a per share price of $650. After receipt of Requisite Stockholder Approval on May 12, 2015, the Series A convertible preferred stock converted into 55,094,915 shares of common stock. The conversion ratio was equal to the number obtained by dividing (i) the sum of $650 and the amount of any accrued but unpaid dividends by (ii) $0.65. The amount of accrued but unpaid dividends included as part of the conversion calculation included an initial rate of 2% (the “first period dividend”) plus an increase of 2% in the second quarter of 2015 (the “second period dividend”) based on the number of days the Series A convertible preferred stock remained outstanding. As a result of the Requisite Stockholder Approval, the first period dividend and second period dividend were the only dividends included in the conversion calculation. On the date of the issuance, the allocated fair value of the common stock was greater than the proceeds received for the Series A convertible preferred stock. As such, the Company accounted for potentially beneficial conversion features under ASC 470-20, Debt with Conversion and Other Options As part of the Purchase Agreement, the Company also issued Series E Warrants to the participating investors to purchase an aggregate of 53,846,000 shares of common stock with an exercise period of two years from the date of issuance. On the issuance date, the exercise price for the Series E Warrants was the lesser of $0.975 per share or a 50% premium on the per share trailing volume-weighted average share price of the common stock on NASDAQ for the ten trading days ending on dates specified in the form of Series E Warrants filed with the SEC. However, certain of the Series E Warrants could not be exercised until the Requisite Stockholder Approval was obtained. As a result of this contingency which was deemed outside the Company’s control as well as the variable number of underlying shares due to the floating exercise price, such Series E Warrants did not meet the criteria for classification as equity under ASC 815. As such, the Company classified the Series E Warrants as current liabilities at fair value upon issuance. The Series E Warrants were subject to re-measurement at each balance sheet date, with any change in fair value recognized as warrant expense, a component of other income (expense) reflected within the statement of operations. The Company used a third party valuation that utilized the Monte Carlo simulation model to estimate the fair value of the Series A convertible preferred stock and Series E Warrants. The valuation used a simulation of the Company’s periodic stock price, expected volatility of the price, adjusted for conversion price, and the remaining contractual term of the Series E Warrants. The fair value of the Series E Warrants was $14.8 million upon issuance. Once the Requisite Stockholder Approval was obtained on May 12, 2015, there was sufficient authorized shares underlying the warrants and the exercise price was fixed at $0.975 per share such that the variable number of shares that could be issued became fixed. As a result, all criteria for classification of the Series E Warrants as equity were met. The Company reclassified the warrant liability amounting to $17.8 million to additional paid-in capital, which equals to the fair value of the Company’s warrant liability on May 12, 2015. The change in fair value of $1.3 million and $3.0 million was recorded in other income (expense) on the condensed consolidated statements of operations for the three and six months ended June 30, 2015, respectively. The Company had incurred and capitalized approximately $0.5 million of costs associated with this offering, which were recorded as an addition to the paid-in capital on the condensed consolidated balance sheets. 2014 Warrant Exchange On July 30, 2014, the Company entered into a definitive agreement (the “Exchange Agreement”) with certain warrantholders to cancel and exchange (the “Exchange”) an aggregate of 10,221,173 of the Company’s outstanding Series B Warrants and an aggregate of 10,221,173 of the Company’s outstanding Series C Warrants. In exchange, the Company issued warrants (the “Exchange Warrants”) to purchase an aggregate of 26,728,369 shares of common stock. The Exchange was completed in August 2014. The Exchange Warrants are comprised of the following two tranches: (a) Series B/C exchange warrants (“Series B/C Exchange Warrants”) exercisable for an aggregate of 20,442,346 shares of common stock, with an exercise price equal to $1.13 per share, the NASDAQ consolidated closing bid price for the common stock on July 29, 2014, the last completed trading day before the Exchange Agreement was executed (the “Closing Bid Price”); and (b) Series D warrants (“Series D Warrants”) exercisable for an aggregate of 6,286,023 shares of common stock, with an exercise price per share equal to the Closing Bid Price. The Series B/C Exchange Warrants were subject to mandatory exercise within 14 days of issuance and were exercised in August 2014, resulting in gross proceeds to the Company of approximately $23.1 million. The Series D Warrants have an exercise period of five years, and, if fully exercised, would result in additional gross proceeds to the Company of approximately $7.1 million. The Series B Warrants and Series C Warrants previously carried an expiration date of August 2015. The remaining Series B Warrants and Series C Warrants not included in the Exchange will remain outstanding until their exercise or expiration. As a result of a change in the terms and conditions of the Series B and C Warrants, the transaction was treated as a modification of the original award using the accounting guidance in ASC 718-20-35-3; this guidance implies that the entity repurchases the original instrument by issuing a new instrument of equal or greater value, incurring additional incremental value. Incremental cost shall be measured as the excess, if any, of the fair value of the modified award over the fair value of the original award immediately before its terms are modified, measured based on the share price, BSM options pricing model and other pertinent factors at that date. These variables include the Company’s expected stock price volatility over the term of the award, expected term, risk-free interest rate and expected dividend rate. The Company recorded a $2.9 million warrant exchange charge in 2014 based upon the difference between the fair value of the Series B and C Warrants immediately prior to the Exchange and the fair value of the newly issued Series B/C Exchange and Series D Warrants. 2013 Private Placement Transaction On July 30, 2013, the Company entered into a securities purchase agreement to sell an aggregate of 28,455,284 shares of its common stock at a per share price of $1.23 and warrants to purchase an aggregate of 34,146,339 shares of common stock at a per warrant price of $0.125 in a private placement transaction. The warrants were comprised of the following three series: Series A warrants exercisable for an aggregate 11,382,113 shares of common stock, with an exercise price equal to $1.23 per share (the “Series A Warrants”); Series B warrants exercisable for an aggregate 11,382,113 shares of common stock, with an exercise price equal to $1.50 per share (the “Series B Warrants”); and Series C warrants exercisable for an aggregate 11,382,113 shares of common stock, with an exercise price equal to $2.00 per share (the “Series C Warrants”). The Series A Warrants were subject to mandatory exercise subsequent to the receipt of regulatory approval for the new Magellan 6Fr Robotic Catheter in the U.S., which occurred in February 2014. The financing resulted in gross proceeds to the Company of approximately $39.3 million prior to placement fees and offering costs of approximately $2.1 million. At the closing of the private placement financing, the Company entered into an investor rights agreement with the purchasers of the shares and warrants in which the Company agreed to file a registration statement covering resale of the shares (which occurred in November 2013) and the purchasers agreed not to transact in any shares of the Company’s common stock for a one-year period following the closing, subject to certain exceptions. In the first quarter of 2014, subsequent to the receipt of regulatory approval for the new Magellan 6Fr Robotic Catheter in the U.S., Series A Warrants for 11.4 million shares of the Company’s common stock were exercised for total proceeds of $14.0 million in accordance with the terms and conditions of a securities purchase agreement dated July 30, 2013. All of the Series A Warrants were mandatorily exercised in the first quarter of 2014 pursuant to the Company’s achievement of a regulatory milestone as set forth in the Series A Warrants.

Stock-based Compensation

Stock-based Compensation	6 Months Ended
	Jun. 30, 2015
Stock-based Compensation	10. Stock-based Compensation Total stock-based compensation expense consisted of the following (in thousands): Three Months Ended Six Months Ended June 30, June 30, 2015 2014 2015 2014 Cost of goods sold $ 127 $ 37 $ 174 $ 81 Research and development 388 222 535 402 Selling, general and administrative 647 399 1,063 932 Total $ 1,162 $ 658 $ 1,772 $ 1,415 The Company uses the BSM option pricing model to determine the fair value of stock options. The determination of the fair value of stock options on the date of grant is affected by the Company’s stock price as well as assumptions regarding a number of complex and subjective variables. These variables include the Company’s expected stock price volatility over the term of the award, expected term, risk-free interest rate and expected dividend rate. The Company estimates the expected term based on its historical experience of grants, exercise pattern and post-vesting cancellations. The Company considered its historical volatility over the expected term and implied volatility of traded stock options in developing its estimate of volatility. The estimated grant date fair values of the employee stock options under the 2006 Equity Incentive Plan for the three and six months ended June 30, 2015 and 2014 were calculated using the following weighted average assumptions: Employee Stock Options: Three Months Ended Six Months Ended June 30, June 30, 2015 2014 2015 2014 Expected volatility 73 % 83 % 73 % 75 % Risk-free interest rate 1.3 % 1.6 % 1.3 % 1.4 % Expected term (in years) 4.13 5.18 4.13 4.34 Expected dividend rate 0 % 0 % 0 % 0 % The estimated fair values of the shares issued under the Company’s Employee Stock Purchase Plan were calculated using the following weighted average assumptions: Employee Stock Purchase Plan: Three and Six Months Ended June 30, 2015 2014 Expected volatility 78 % 106 % Risk-free interest rate 0.07 % 0.10 % Expected term (in years) 0.50 0.50 Expected dividend rate 0 % 0 % Stock Option and Equity Incentive Plans The following table summarizes the option activity for the six month period ended June 30, 2015: Weighted- Average Weighted- Remaining Options Average Contractual Aggregate Outstanding Exercise Price Term Intrinsic Value (In thousands) (In years) (In thousands) Balance at December 31, 2014 9,191 $ 1.69 7.80 $ — Options granted 905 $ 0.92 Options exercised (5 ) $ 0.52 $ 2 Options cancelled (1,103 ) $ 3.34 $ 24 Balance at June 30, 2015 8,988 1.41 7.91 $ 966 Options vested at June 30, 2015 2,637 $ 2.43 5.38 $ — Options vested and expected to vest at June 30, 2015 7,144 $ 1.49 7.65 $ 633 The total fair value of options that vested in the three months ended June 30, 2015 and 2014 was $0.4 million and $0.4 million, respectively. The total fair value of options that vested in the six months ended June 30, 2015 and 2014 was $0.8 million and $1.0 million, respectively. As of June 30, 2015, total unamortized stock-based compensation related to unvested stock options was $2.5 million, with a weighted-average remaining recognition period of 2.36 years. The intrinsic value of exercised stock options is calculated based on the difference between the exercise price and the quoted closing market price of the Company’s common stock on the exercise date. The total intrinsic value of stock options exercised in the three months ended June 30, 2015 and 2014 was $1,000 and $0.4 million, respectively. The total intrinsic value of stock options exercised in the six months ended June 30, 2015 and 2014 was $2,000 and $0.6 million, respectively. Restricted stock unit activity for six month period ended June 30, 2015 is as follows: Weighted- Restricted Stock Average Fair Units Value When Outstanding Awarded (In thousands) Balance at December 31, 2014 841 $ 1.80 Awarded 5,439 $ 0.90 Vested (160 ) $ 1.37 Cancelled (299 ) $ 1.55 Balance at June 30, 2015 5,821 $ 0.99 The fair value of restricted stock units is the quoted market price of the Company’s common stock as of the close of the grant date. The total fair value of shares vested pursuant to restricted stock units in the three months ended June 30, 2015 and 2014 was $0.1 million and zero, respectively. The total fair value of shares vested pursuant to restricted stock units in the six months ended June 30, 2015 and 2014 was $0.2 million and $2.0 million, respectively. As of June 30, 2015, total unamortized stock-based compensation related to unvested restricted stock units was $2.2 million, with a weighted-average remaining recognition period of 2.08 years. In April 2015, the Company granted 3,089,505 PSUs to executives and employees in-lieu of cash bonuses with vesting based on the Company’s 2015 corporate goals and department goals over the vesting period of 1 year. Each PSU represents the right to receive one share of the Company’s common stock upon the vesting of such PSU, and is subject to the terms of the Company’s 2006 Equity Incentive Plan. Any PSUs not vesting on a vesting date due to the Company’s corporate goals and department goals for the fiscal year 2015 not meeting the target for such fiscal year established by the Compensation Committee shall be forfeited. The grant date fair value of these awards was $2.8 million. For PSUs, the Company recognizes stock-based compensation expense based on the probable outcome that the performance condition will be achieved. As of June 30, 2015, 1,985,627 shares of common stock were available for grant under the 2006 Equity Incentive Plan.

Income Taxes

Income Taxes	6 Months Ended
	Jun. 30, 2015
Income Taxes	11. Income Taxes The Company’s tax provision for the six months ended June 30, 2015 and 2014 was $24,000 and $33,000, respectively, which primarily consist of foreign taxes. The Company currently has uncertain tax positions in the amount of $4.3 million, none of which would affect the effective tax rate upon realization. The Company currently has a full valuation allowance against its net deferred tax asset which would impact the timing of the effective tax rate benefit should any of these uncertain tax positions be favorably settled in the future.

Net Loss Per Share

Net Loss Per Share	6 Months Ended
	Jun. 30, 2015
Net Loss Per Share	12. Net Loss Per Share The Company computes basic net loss per share by dividing net loss available to common stockholders by the weighted average number of common shares outstanding during the period. The beneficial conversion feature embedded within the Series A convertible preferred stock and a cumulative deemed dividend of $0.8 million are reflected as an adjustment in the calculation of earnings per share. To determine diluted shares, the Company applies the treasury stock method to determine the dilutive effect of outstanding stock option shares, restricted stock units, Employee Stock Purchase Plan shares and warrants. The following table sets forth the computation of basic and diluted net loss per share (in thousands, except per share data): Three Months Ended Six Months Ended June 30, June 30, 2015 2014 2015 2014 Net loss $ (12,507 ) $ (12,290 ) $ (24,440 ) $ (26,735 ) Adjust: Beneficial conversion feature of Series A convertible preferred stock (20,224 ) — (20,224 ) — Adjust: Cumulative dividend on Series A convertible preferred stock (812 ) — (812 ) — Net loss attributable to common stockholders $ (33,543 ) $ (12,290 ) $ (45,476 ) $ (26,735 ) Weighted average shares used to compute basic and diluted net loss per share 163,107 112,003 148,280 107,692 Basic and diluted net loss per share $ (0.21 ) $ (0.11 ) $ (0.31 ) $ (0.25 ) The following table sets forth potential shares of common stock equivalents that are not included in the calculation of diluted net loss per common share due to the anti-dilutive affect they would have for each period presented (in thousands): June 30, 2015 2014 Stock options outstanding 8,988 6,882 Unvested restricted stock units 5,821 600 Estimated shares issuable under the employee stock purchase plan 69 58 Warrants 63,115 23,425

Accumulated Other Comprehensive

Accumulated Other Comprehensive Income (Loss)	6 Months Ended
	Jun. 30, 2015
Accumulated Other Comprehensive Income (Loss)	13. Accumulated Other Comprehensive Income (Loss) The component of accumulated other comprehensive income (loss), net of tax for the three and six months ended June 30, 2015 and 2014 are as follows (in thousands): Unrealized Foreign Gain Currency (Losses) Translation on Gain Securities (Losses) Total Three Months Ended June 30, 2015: Beginning balance $ 290 $ (151 ) $ 139 Net current-period other comprehensive loss (442 ) (20 ) (462 ) Ending balance $ (152 ) $ (171 ) $ (323 ) Three Months Ended June 30, 2014: Beginning balance $ 456 $ (11 ) $ 445 Net current-period other comprehensive gain (loss) (125 ) 17 (108 ) Ending balance $ 331 $ 6 $ 337 Unrealized Foreign Gain Currency (Losses) Translation on Gain Securities (Losses) Total Six Months Ended June 30, 2015: Beginning balance $ 392 $ (87 ) $ 305 Net current-period other comprehensive loss (544 ) (84 ) (628 ) Ending balance $ (152 ) $ (171 ) $ (323 ) Six Months Ended June 30, 2014: Beginning balance $ 373 $ (13 ) $ 360 Net current-period other comprehensive gain (loss) (42 ) 19 (23 ) Ending balance $ 331 $ 6 $ 337

Segment Information

Segment Information	6 Months Ended
	Jun. 30, 2015
Segment Information	14. Segment Information The Company operates its business in one operating segment: the development and marketing of medical devices. The Company’s chief operating decision maker is its Chief Executive Officer who reviews the financial information presented on a consolidated basis for the purpose of making operating decisions and assessing financial performance. The Company’s medical robotics systems are developed and marketed to a broad base of hospitals and distributors in the United States and internationally. The Company considers all such sales to be part of a single operating segment. Information regarding total revenue is as follows (in thousands): Three Months Ended Six Months Ended June 30, June 30, 2015 2014 2015 2014 Revenues: United States $ 1,636 $ 2,181 $ 3,598 $ 4,671 International 1,456 4,706 5,288 5,915 Total $ 3,092 $ 6,887 $ 8,886 $ 10,586 Revenues are attributed to countries based on the location of the customer. Revenues in the United States and Belgium each accounted for 10% or more of total revenues for the three months ended June 30, 2015 at 53% and 10%, respectively. Revenues in the United States, China and Saudi Arabia each accounted for 10% or more of total revenues for the six months ended June 30, 2015 at 41%, 15% and 10%, respectively. Revenues in the United States, Japan, Kuwait and Saudi Arabia each accounted for 10% or more of total revenues for the three months ended June 30, 2014 at 32%, 27%, 11% and 11%, respectively. Revenues in the United States and Japan each accounted for 10% or more of total revenues for the six months ended June 30, 2014 at 44% and 18%, respectively. The majority of the Company’s long-lived assets are located in the United States.

Summary of Significant Accoun22

Summary of Significant Accounting Policies (Policies)	6 Months Ended
	Jun. 30, 2015
Basis of Presentation	Basis of Presentation The accompanying unaudited condensed consolidated financial statements (the “condensed consolidated financial statements”) have been prepared in accordance with generally accepted accounting principles in the United States of America (“GAAP”) for interim financial information and therefore do not contain all of the information and footnotes required by GAAP and the rules and regulations of the Securities and Exchange Commission (the “SEC”) for annual financial statements. The Company’s fiscal year ends on December 31. The condensed consolidated balance sheet as of December 31, 2014 was derived from audited financial statements. In the opinion of the Company’s management, these unaudited financial statements include all adjustments, which are of a normal recurring nature, necessary for a fair presentation. Interim results are not necessarily indicative of results for a full year or any other interim period. The information included in this Quarterly Report on Form 10-Q should be read in conjunction with the Company’s Annual Report on Form 10-K for the year ended December 31, 2014 as filed with the SEC. The accompanying condensed consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All significant intercompany balances and transactions have been eliminated in consolidation.
Reclassification of Prior Period Balances	Reclassification of Prior Period Balances Certain reclassifications have been made to prior period amounts to conform to the current period presentation.
Use of Estimates	Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Significant estimates relate to the recognition of revenue, the evaluation of customer credit risk, the valuation of investments, inventory valuations, the determination of impairment of assets, stock-based compensation, loss contingencies, the valuation of warrants, and deferred tax assets, among others. Actual results may differ from those estimates.
Revenue Recognition	Revenue Recognition The Company’s revenues are primarily derived from the sale of the Sensei System and the Magellan System and the associated catheters as well as the sale of customer service contracts, which include post-contract customer support (“PCS”). The Company sells its products directly to customers as well as through distributors. Under the Company’s revenue recognition policy, revenues are recognized when persuasive evidence of an arrangement exists, title and risk of loss has passed, delivery to the customer has occurred or the services have been fully rendered, the sales price is fixed or determinable and collectability is reasonably assured. • Persuasive Evidence of an Arrangement • Delivery • Systems and Disposable Products. • Customer Service Revenue. • Multiple-element Arrangements. • Sales Price Fixed or Determinable. • Collectability. Significant management judgments and estimates are made in connection with the determination of revenue to be recognized and the period in which it is recognized. If different judgments and estimates were utilized, the amount of revenue to be recognized and the period in which it is recognized could differ materially from the amounts reported.
Concentration of Credit Risk and Other Risks and Uncertainties	Concentration of Credit Risk and Other Risks and Uncertainties Financial instruments that potentially subject the Company to significant concentrations of credit risk consist primarily of cash and cash equivalents, short-term investments and accounts receivable. Cash and cash equivalents are deposited in demand and money market accounts at two financial institutions. At times, such deposits may be in excess of insured limits. The Company has not experienced any losses on its deposits of cash and cash equivalents. The Company had one customer who constituted 29% of the Company’s accounts receivable at June 30, 2015. The Company had four customers who constituted 26%, 14%, 12% and 12%, respectively, of the Company’s net accounts receivable at December 31, 2014. As of June 30, 2015, the Company has not experienced any significant losses on its accounts receivable. One customer accounted for 16% of total revenues during the three months ended June 30, 2015. Three customers accounted for 27%, 11% and 11%, respectively, of total revenues during the three months ended June 30, 2014. Three customers accounted for 15%, 11% and 10%, respectively, of total revenues during the six months ended June 30, 2015. Three customers accounted for 18%, 12% and 10%, respectively, of total revenues during the six months ended June 30, 2014. Most of the products developed by the Company require clearance from the U.S. Food and Drug Administration (“FDA”) or corresponding approval by foreign regulatory agencies prior to commercial sales. These clearances and approvals are required for both the Sensei and Magellan Systems and all related catheters and accessories: Sensei: The Company received CE Mark approval to market its Sensei System in Europe in the fourth quarter of 2006 and received CE Mark approval to market its Artisan ® Magellan: At the current time the Company has received clearance and approval for the Magellan System and the Magellan 6Fr, 9Fr and 10Fr Robotic Catheters and related accessories in various territories. The Company received CE Mark approval for its Magellan System in July 2011 and received CE Mark approval for the Magellan 9Fr Robotic Catheter and related accessories in October 2011. The Magellan 6Fr Robotic Catheter received CE Mark approval in October 2014, while the Magellan 10Fr Robotic Catheter received CE Mark approval in April 2015. The Company received FDA clearance for marketing its Magellan System, including the Magellan 9Fr Robotic Catheter and accessories in June 2012, the Magellan 6Fr Robotic Catheter in February 2014, and the Magellan 10Fr Robotic Catheter in July 2015. The FDA clearances and CE Mark approvals enable the company to initiate use of all Magellan Systems and catheters with its customers in the United States, the European Union and certain other geographies. However, there can be no assurance that current products or any new products the Company develops in the future will receive the clearances or approvals necessary to allow the Company to market those products in certain desirable markets. If the Company is denied clearance or approvals or clearance or approvals are delayed, it could have a material adverse impact on the Company. The medical device industry is characterized by frequent and extensive litigation and administrative proceedings over patent and other intellectual property rights. Whether a product infringes a patent involves complex legal and factual issues, the determination of which is often difficult to predict, and the outcome may be uncertain until the court has entered final judgment and all appeals are exhausted. The Company’s competitors may assert, and have asserted in the past, that the Company’s products or the use of the Company’s products are covered by United States or foreign patents held by them. This risk is heightened due to the numerous issued and pending patents relating to the use of catheter-based procedures in the medical technology field.
Fair Value Measurements	Fair Value Measurements GAAP defines fair value as an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or liability. As a basis for considering such assumptions, authoritative guidance establishes a three-tier value hierarchy, which prioritizes the inputs used in measuring fair value as follows: • Level 1 Inputs Quoted prices (unadjusted) in active markets for identical assets or liabilities. • Level 2 Inputs Inputs other than quoted prices in active markets that are observable either directly or indirectly. • Level 3 Inputs Unobservable inputs in which there is little or no market data, which require the Company to develop its own assumptions. This hierarchy requires the use of observable market data when available and to minimize the use of unobservable inputs when determining fair value.
Beneficial conversion feature	Beneficial conversion feature In accordance with Financial Accounting Standards Board (“FASB”) Accounting Standard Codification (“ASC”) 470-20, Debt with Conversion and Other Options
Stock-based Compensation	Stock-based Compensation The Company accounts for share-based compensation plan in accordance with the provisions of FASB ASC No. 718-10-30, Stock Compensation Initial Measurement, The BSM option valuation model determines the fair value of stock-based awards using the following assumptions • Expected Volatility • Expected Term • Risk-Free Interest Rate. • Dividend Yield. The Company measures the fair value of RSUs and PSUs using the closing stock price of a share of the Company’s common stock on the grant date. In addition, the Company also estimates a forfeiture rate for its stock options and RSUs. The Company estimates its forfeiture rate based on an analysis of its actual forfeitures based on actual forfeiture experience, analysis of employee turnover behavior and other factors. The impact from any forfeiture rate adjustment would be recognized in full in the period of adjustment and, if the actual number of future forfeitures differs from its estimates, the Company might be required to record adjustments to its stock-based compensation in future periods. For PSUs, the Company recognizes stock-based compensation expense based on the probable outcome that the performance condition will be achieved.
Recent Accounting Pronouncements	Recent Accounting Pronouncements In May 2014, the FASB issued Accounting Standards Update (“ASU”) 2014-09, Revenue from Contracts with Customers (Topic 606), Revenue Recognition In April 2015, the FASB issued ASU 2015-03, Interest—Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Cost In January 2015, the FASB issued ASU 2015-01, Simplifying Income Statement Presentation by Eliminating the Concept of Extraordinary Items. In August 2014, the FASB issued ASU No. 2014-15, Presentation of Financial Statements—Going Concern (Subtopic 205-40 Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern

Fair Value of Assets and Liab23

Fair Value of Assets and Liabilities (Tables)	6 Months Ended
	Jun. 30, 2015
Amortized Cost and Fair Value of Assets, with Gross Unrealized Gains and Losses	The amortized cost and fair value of assets, along with gross unrealized gains and losses, were as follows (in thousands): Cash, Cash Equivalents, Short-term Investments and Restricted Cash Balance Sheet Classification Gross Gross Cash and Amortized Unrealized Unrealized Fair cash Short-term Restricted Cost Gains Losses Value Equivalents Investments Cash June 30, 2015: Cash $ 11,281 $ — $ — $ 11,281 $ 11,281 $ — $ — Money market funds 34,332 — — 34,332 28,952 — 5,380 Corporate equity securities 1,572 (141 ) — 1,431 — 1,431 — $ 47,185 $ (141 ) $ — $ 47,044 $ 40,233 $ 1,431 $ 5,380 December 31, 2014: Cash $ 3,586 $ — $ — $ 3,586 $ 3,586 $ — $ — Money market funds 26,318 — — 26,318 20,942 — 5,376 Corporate equity securities 1,572 401 — 1,973 — 1,973 — $ 31,476 $ 401 $ — $ 31,877 $ 24,528 $ 1,973 $ 5,376
Fair Value Hierarchy of Company's Assets	The fair value hierarchy of the Company’s assets that are measured at fair value, by level, is as follows (in thousands): Fair Value Measurements Using Quoted Prices in Significant other Active Markets for Observable Unobservable Identical Assets Inputs Inputs (Level 1 Inputs) (Level 2 Inputs) (Level 3 Inputs) Total June 30, 2015: Money market funds $ 34,332 $ — $ — $ 34,332 Corporate equity securities 1,431 — — 1,431 $ 35,763 $ — $ — $ 35,763 December 31, 2014: Money market funds $ 26,318 $ — $ — $ 26,318 Corporate equity securities 1,973 1,973 $ 28,291 $ — $ — $ 28,291
Changes in Level 3 Liabilities Measured at Fair value on a Recurring Basis	The changes in Level 3 liabilities measured at fair value on a recurring basis was as follow (in thousands): Level 3 Input for Six Months Ended June 30, 2015 (In thousands) Balance at December 31, 2014 $ — Additions at March 11, 2015 (14,776 ) Change in fair value of warrant liability (2,993 ) Reclass to additional paid-in capital 17,769 Balance at June 30, 2015 $ —

Balance Sheet Components (Table

Balance Sheet Components (Tables)	6 Months Ended
	Jun. 30, 2015
Components of inventories, Net	Inventories (in thousands) June 30, December 31, 2015 2014 Raw materials $ 4,887 $ 4,996 Work in process 2,934 4,571 Finished goods 3,363 1,925 Total Inventories $ 11,184 $ 11,492
Property and equipment, net	Property and equipment, net (in thousands) June 30, December 31, 2015 2014 Furniture and leasehold improvements $ 11,267 $ 11,455 Laboratory equipment 12,041 11,374 Computer equipment and software 2,937 2,911 26,245 25,740 Less: Accumulated depreciation and amortization (23,606 ) (23,412 ) Property and equipment, net $ 2,639 $ 2,328
Accrued liabilities	Accrued liabilities (in thousands) June 30, December 31, 2015 2014 Accrued salaries, commission, bonus and benefits $ 1,554 $ 2,835 Accrued royalties 439 594 Accrued legal and other professional fees 393 169 Tax accruals 323 274 Clinical related accruals 208 394 Other accrued expenses 392 676 Accrued liabilities $ 3,309 $ 4,942

Commitments and Contingencies (

Commitments and Contingencies (Tables)	6 Months Ended
	Jun. 30, 2015
Future Minimum Payments under Operating Leases	As of June 30, 2015, future minimum payments under the lease and rental are as follows (in thousands): Future Minimum Years Ending December 31, Lease Payments 2015 (remainder of year) $ 1,127 2016 2,204 2017 2,216 2018 2,282 2019 1,759 Total $ 9,588

Long-term Debt (Tables)

Long-term Debt (Tables)	6 Months Ended
	Jun. 30, 2015
Future Annual Payments Due on Amounts Outstanding	Future minimum payments due on the debt as of June 30, 2015 are as follows (in thousands): Years Ending December 31, 2015 (remainder of year) $ 1,970 2016 4,009 2017 41,782 Total remaining payments 47,761 Less: Amount representing interest (13,233 ) 34,528 Less: Current portion of long-term debt — Long-term debt, net of current portion $ 34,528

Stock-based Compensation (Table

Stock-based Compensation (Tables)	6 Months Ended
	Jun. 30, 2015
Total Stock-based Compensation	Total stock-based compensation expense consisted of the following (in thousands): Three Months Ended Six Months Ended June 30, June 30, 2015 2014 2015 2014 Cost of goods sold $ 127 $ 37 $ 174 $ 81 Research and development 388 222 535 402 Selling, general and administrative 647 399 1,063 932 Total $ 1,162 $ 658 $ 1,772 $ 1,415
Weighted Average Assumptions Used to Estimate Grant Date Fair Values of Stock Options	The estimated grant date fair values of the employee stock options under the 2006 Equity Incentive Plan for the three and six months ended June 30, 2015 and 2014 were calculated using the following weighted average assumptions: Employee Stock Options: Three Months Ended Six Months Ended June 30, June 30, 2015 2014 2015 2014 Expected volatility 73 % 83 % 73 % 75 % Risk-free interest rate 1.3 % 1.6 % 1.3 % 1.4 % Expected term (in years) 4.13 5.18 4.13 4.34 Expected dividend rate 0 % 0 % 0 % 0 %
Weighted Average Assumptions Used to Estimate Grant Date Fair Values of Shares Issued Under the ESPP	The estimated fair values of the shares issued under the Company’s Employee Stock Purchase Plan were calculated using the following weighted average assumptions: Employee Stock Purchase Plan: Three and Six Months Ended June 30, 2015 2014 Expected volatility 78 % 106 % Risk-free interest rate 0.07 % 0.10 % Expected term (in years) 0.50 0.50 Expected dividend rate 0 % 0 %
Summary of Option Activity	The following table summarizes the option activity for the six month period ended June 30, 2015: Weighted- Average Weighted- Remaining Options Average Contractual Aggregate Outstanding Exercise Price Term Intrinsic Value (In thousands) (In years) (In thousands) Balance at December 31, 2014 9,191 $ 1.69 7.80 $ — Options granted 905 $ 0.92 Options exercised (5 ) $ 0.52 $ 2 Options cancelled (1,103 ) $ 3.34 $ 24 Balance at June 30, 2015 8,988 1.41 7.91 $ 966 Options vested at June 30, 2015 2,637 $ 2.43 5.38 $ — Options vested and expected to vest at June 30, 2015 7,144 $ 1.49 7.65 $ 633
Summary of Restricted Stock Unit Activity	Restricted stock unit activity for six months period ended June 30, 2015 is as follows: Weighted- Restricted Stock Average Fair Units Value When Outstanding Awarded (In thousands) Balance at December 31, 2014 841 $ 1.80 Awarded 5,439 $ 0.90 Vested (160 ) $ 1.37 Cancelled (299 ) $ 1.55 Balance at June 30, 2015 5,821 $ 0.99

Net Loss Per Share (Tables)

Net Loss Per Share (Tables)	6 Months Ended
	Jun. 30, 2015
Computation of Basic and Diluted Net Income (Loss) Per Share	The following table sets forth the computation of basic and diluted net loss per share (in thousands, except per share data): Three Months Ended Six Months Ended June 30, June 30, 2015 2014 2015 2014 Net loss $ (12,507 ) $ (12,290 ) $ (24,440 ) $ (26,735 ) Adjust: Beneficial conversion feature of Series A convertible preferred stock (20,224 ) — (20,224 ) — Adjust: Cumulative dividend on Series A convertible preferred stock (812 ) — (812 ) — Net loss attributable to common stockholders $ (33,543 ) $ (12,290 ) $ (45,476 ) $ (26,735 ) Weighted average shares used to compute basic and diluted net loss per share 163,107 112,003 148,280 107,692 Basic and diluted net loss per share $ (0.21 ) $ (0.11 ) $ (0.31 ) $ (0.25 )
Common Stock Equivalents that are Not Included In the Calculation of Diluted Net Loss Per Common Share	The following table sets forth potential shares of common stock equivalents that are not included in the calculation of diluted net loss per common share due to the anti-dilutive affect they would have for each period presented (in thousands): June 30, 2015 2014 Stock options outstanding 8,988 6,882 Unvested restricted stock units 5,821 600 Estimated shares issuable under the employee stock purchase plan 69 58 Warrants 63,115 23,425

Accumulated Other Comprehensi29

Accumulated Other Comprehensive Income (Loss) (Tables)	6 Months Ended
	Jun. 30, 2015
Component of Accumulated Other Comprehensive Income (Loss), Net of Tax	The component of accumulated other comprehensive income (loss), net of tax for the three and six months ended June 30, 2015 and 2014 are as follows (in thousands): Unrealized Foreign Gain Currency (Losses) Translation on Gain Securities (Losses) Total Three Months Ended June 30, 2015: Beginning balance $ 290 $ (151 ) $ 139 Net current-period other comprehensive loss (442 ) (20 ) (462 ) Ending balance $ (152 ) $ (171 ) $ (323 ) Three Months Ended June 30, 2014: Beginning balance $ 456 $ (11 ) $ 445 Net current-period other comprehensive gain (loss) (125 ) 17 (108 ) Ending balance $ 331 $ 6 $ 337 Unrealized Foreign Gain Currency (Losses) Translation on Gain Securities (Losses) Total Six Months Ended June 30, 2015: Beginning balance $ 392 $ (87 ) $ 305 Net current-period other comprehensive loss (544 ) (84 ) (628 ) Ending balance $ (152 ) $ (171 ) $ (323 ) Six Months Ended June 30, 2014: Beginning balance $ 373 $ (13 ) $ 360 Net current-period other comprehensive gain (loss) (42 ) 19 (23 ) Ending balance $ 331 $ 6 $ 337

Segment Information (Tables)

Segment Information (Tables)	6 Months Ended
	Jun. 30, 2015
Information Regarding Total Revenue	Information regarding total revenue is as follows (in thousands): Three Months Ended Six Months Ended June 30, June 30, 2015 2014 2015 2014 Revenues: United States $ 1,636 $ 2,181 $ 3,598 $ 4,671 International 1,456 4,706 5,288 5,915 Total $ 3,092 $ 6,887 $ 8,886 $ 10,586

The Company - Additional Inform

The Company - Additional Information (Detail) - USD ($) $ in Thousands	Mar. 11, 2015	Jun. 30, 2015	Dec. 31, 2014	Aug. 23, 2013
Description of Business [Line Items]
Accumulated net profit or loss from inception		$ (432,162)	$ (406,910)
Gross proceed from sale of convertible preferred stock and related issuance of warrants	$ 35,000
Cash, cash equivalents, short-term investments and restricted cash		47,000
White Oak Loan Agreement
Description of Business [Line Items]
Minimum liquidity requirement amount		15,000		$ 15,000
White Oak Loan Agreement | Cash, Cash Equivalents and Investments
Description of Business [Line Items]
Minimum liquidity requirement amount		13,000		13,000
White Oak Loan Agreement | Accounts Receivable
Description of Business [Line Items]
Minimum liquidity requirement amount		$ 2,000		$ 2,000

Summary of Significant Accoun32

Summary of Significant Accounting Policies - Additional Information (Detail)	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2015Customer	Jun. 30, 2014Customer	Jun. 30, 2015EntityCustomer	Jun. 30, 2014Customer	Dec. 31, 2014Customer
Summary Of Significant Accounting Policies [Line Items]
Deferred and amortized service period			1 year
Number of financial institutions in which cash deposited | Entity			2
Customer concentration risk | Accounts Receivable
Summary Of Significant Accounting Policies [Line Items]
Number of major customers			1		4
Customer concentration risk | Accounts Receivable | Customer 1
Summary Of Significant Accounting Policies [Line Items]
Concentration risk, percentage			29.00%		26.00%
Customer concentration risk | Accounts Receivable | Customer 2
Summary Of Significant Accounting Policies [Line Items]
Concentration risk, percentage					14.00%
Customer concentration risk | Accounts Receivable | Customer 3
Summary Of Significant Accounting Policies [Line Items]
Concentration risk, percentage					12.00%
Customer concentration risk | Accounts Receivable | Customer 4
Summary Of Significant Accounting Policies [Line Items]
Concentration risk, percentage					12.00%
Customer concentration risk | Sales
Summary Of Significant Accounting Policies [Line Items]
Number of major customers	1	3	3	3
Customer concentration risk | Sales | Customer 1 | Minimum
Summary Of Significant Accounting Policies [Line Items]
Concentration risk, percentage	16.00%	27.00%	15.00%	18.00%
Customer concentration risk | Sales | Customer 2 | Minimum
Summary Of Significant Accounting Policies [Line Items]
Concentration risk, percentage		11.00%	11.00%	12.00%
Customer concentration risk | Sales | Customer 3 | Minimum
Summary Of Significant Accounting Policies [Line Items]
Concentration risk, percentage		11.00%	10.00%	10.00%

Amortized Cost and Fair Value o

Amortized Cost and Fair Value of Assets, with Gross Unrealized Gains and Losses (Detail) - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014	Jun. 30, 2014	Dec. 31, 2013
Cash Cash Equivalents And Short Term Investments [Line Items]
Amortized Cost	$ 47,185	$ 31,476
Gross Unrealized Gains	(141)	401
Gross Unrealized Losses	0	0
Fair Value	47,044	31,877
Cash and cash equivalents	40,233	24,528	$ 24,899	$ 27,995
Short-term investments	1,431	1,973
Restricted cash	5,380	5,376
Cash
Cash Cash Equivalents And Short Term Investments [Line Items]
Amortized Cost	11,281	3,586
Gross Unrealized Losses	0	0
Fair Value	11,281	3,586
Cash and cash equivalents	11,281	3,586
Money Market Funds
Cash Cash Equivalents And Short Term Investments [Line Items]
Amortized Cost	34,332	26,318
Gross Unrealized Losses	0	0
Fair Value	34,332	26,318
Cash and cash equivalents	28,952	20,942
Restricted cash	5,380	5,376
Corporate Equity Securities
Cash Cash Equivalents And Short Term Investments [Line Items]
Amortized Cost	1,572	1,572
Gross Unrealized Gains	(141)	401
Gross Unrealized Losses	0	0
Fair Value	1,431	1,973
Short-term investments	$ 1,431	$ 1,973

Fair Value Hierarchy of Company

Fair Value Hierarchy of Company's Assets (Detail) - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets	$ 35,763	$ 28,291
Money Market Funds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets	34,332	26,318
Corporate Equity Securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets	1,431	1,973
Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets	35,763	28,291
Level 1 | Money Market Funds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets	34,332	26,318
Level 1 | Corporate Equity Securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets	$ 1,431	$ 1,973

Changes in Level 3 Liabilities

Changes in Level 3 Liabilities Measured at Fair value on a Recurring Basis (Detail) $ in Thousands	6 Months Ended
	Jun. 30, 2015USD ($)
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Reclass to additional paid-in capital	$ 17,769
Level 3 Inputs
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Balance at December 31, 2014	0
Additions at March 11, 2015	(14,776)
Change in fair value of warrant liability	(2,993)
Reclass to additional paid-in capital	17,769
Balance at June 30, 2015	$ 0

Fair Value of Assets and Liab36

Fair Value of Assets and Liabilities - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands	Mar. 11, 2015	Jun. 30, 2015	Jun. 30, 2015	Dec. 31, 2014	Jul. 30, 2013
Fair Value, Measurement Inputs, Disclosure [Line Items]
Common Stock issuable upon exercise of warrants	53,846,000				34,146,339
Warrants exercise period	2 years
Warrants exercise price	$ 0.975		$ 0.975
Premium on per share trailing weighted average share price	50.00%
Fair value of warrants upon issuance	$ 14,775
Warrant expense		$ 1,317	$ 2,993	$ 2,900
Warrant liability, reclassification to additional paid-in capital			17,769
Long term debt, fair value		34,500	34,500	$ 34,200
Other income (expense)
Fair Value, Measurement Inputs, Disclosure [Line Items]
Warrant expense		$ 1,300	$ 3,000

Components of Inventories, Net

Components of Inventories, Net (Detail) - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
Inventory [Line Items]
Raw materials	$ 4,887	$ 4,996
Work in process	2,934	4,571
Finished goods	3,363	1,925
Total Inventories	$ 11,184	$ 11,492

Property and Equipment, Net (De

Property and Equipment, Net (Detail) - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 26,245	$ 25,740
Less: Accumulated depreciation and amortization	(23,606)	(23,412)
Property and equipment, net	2,639	2,328
Furniture and leasehold improvements
Property, Plant and Equipment [Line Items]
Property and equipment, gross	11,267	11,455
Laboratory equipment
Property, Plant and Equipment [Line Items]
Property and equipment, gross	12,041	11,374
Computer equipment and software
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 2,937	$ 2,911

Components of Accrued Liabiliti

Components of Accrued Liabilities (Detail) - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
Schedule of Accrued Liabilities [Line Items]
Accrued salaries, commission, bonus and benefits	$ 1,554	$ 2,835
Accrued royalties	439	594
Accrued legal and other professional fees	393	169
Tax accruals	323	274
Clinical related accruals	208	394
Other accrued expenses	392	676
Total	$ 3,309	$ 4,942

Agreements with Intuitive Sur40

Agreements with Intuitive Surgical - Additional Information (Detail) - USD ($) $ in Millions	Jul. 30, 2013	Oct. 31, 2012	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014	Dec. 31, 2012
Licenses Agreements [Line Items]
Proceeds from licensing fees		$ 20
Stock purchase agreement to sell shares	28,455,284	5,291,005
Common stock agreement purchase price		$ 10
Agreement amendment period					3 years
Payment for licensing of intellectual property							$ 20
Stock purchase agreement recorded in common stock and additional paid-in capital							$ 10
Intuitive Surgical Inc
Licenses Agreements [Line Items]
Cost related to royalty obligations			$ 0.1	$ 0.1	$ 0.1	$ 0.1
Intuitive Surgical Inc | Minimum
Licenses Agreements [Line Items]
Royalty obligations per year			$ 0.2		$ 0.2

Agreements with Philips - Addit

Agreements with Philips - Additional Information (Detail) - USD ($)	1 Months Ended	3 Months Ended		6 Months Ended
	Aug. 31, 2015	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014	Feb. 28, 2011
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Technology commercialization cash payments to be received in future						$ 78,000,000
Potential future payment from sublicensing technology under agreement				Two-thirds
Potential future payment based on royalty obligation under agreement				One-third
FOSSL-related royalty obligations				Between 2014 and 2020
Amendment agreements
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Royalty payment obligation				2017-10
Royalty obligations period				Through October 2017
Amendment agreements | Scenario, Forecast
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Percentage of reduction of all royalties owed or due between parties	(50.00%)
Percentage of reduction of royalty obligations based on sales	(50.00%)
Koninklijke Philips Electronics Nv
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Royalty payment obligation				2017-10
Cost related to royalty obligations		$ 500,000	$ 500,000	$ 700,000	$ 600,000
Koninklijke Philips Electronics Nv | Amendment agreements | Scenario, Forecast
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Percentage of reduction of royalty obligations based on sales	(50.00%)
Koninklijke Philips Electronics Nv | Minimum
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Royalty obligations		$ 0		$ 0

Commitments and Contingencies -

Commitments and Contingencies - Additional Information (Detail) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Other Commitments [Line Items]
Rent expense	$ 800,000	$ 600,000	$ 1,400,000	$ 1,300,000
Mitsubishi
Other Commitments [Line Items]
Reduction royalty obligation			$ 55,000
Royalty obligation expiration Year			2,018
Cost related to royalty obligations	14,000	$ 48,000	$ 49,000	$ 67,000
Mitsubishi | Minimum
Other Commitments [Line Items]
Royalty obligations per year	$ 100,000		$ 100,000
California
Other Commitments [Line Items]
Operating lease expiration year			Jan. 31, 2020
Operating lease extended period			5 years
London, England | New Lease Arrangement
Other Commitments [Line Items]
Operating lease expiration year			Apr. 30, 2016

Future Minimum Payments under O

Future Minimum Payments under Operating Leases (Detail) $ in Thousands	Jun. 30, 2015USD ($)
Operating Leased Assets [Line Items]
2015 (remainder of year)	$ 1,127
2,016	2,204
2,017	2,216
2,018	2,282
2,019	1,759
Total	$ 9,588

Long - Term Debt - Additional I

Long - Term Debt - Additional Information (Detail) - USD ($)	Aug. 23, 2013	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
White Oak Loan Agreement
Debt Instrument [Line Items]
Loan and security agreement	$ 33,000,000
Loan and security agreement, due date	Dec. 30, 2017
Capitalized debt issue costs	$ 1,500,000
Administration and monitoring fee	32,000
Amortization of debt issuance costs		$ 100,000	$ 100,000	$ 200,000	$ 200,000
Minimum liquidity requirement amount	15,000,000	15,000,000		15,000,000
White Oak Loan Agreement | Cash, Cash Equivalents and Investments
Debt Instrument [Line Items]
Minimum liquidity requirement amount	13,000,000	13,000,000		13,000,000
White Oak Loan Agreement | Accounts Receivable
Debt Instrument [Line Items]
Minimum liquidity requirement amount	$ 2,000,000	$ 2,000,000		$ 2,000,000
White Oak Loan Agreement | Interest Payment in Cash
Debt Instrument [Line Items]
Loan and security agreement, interest rate	11.00%
White Oak Loan Agreement | Payment in Kind (PIK)
Debt Instrument [Line Items]
Loan and security agreement, interest rate	3.00%
White Oak Loan Agreement | Payment to Lender Agent
Debt Instrument [Line Items]
Capitalized debt issue costs	$ 700,000
White Oak Loan Agreement | Payment to Placement Agent
Debt Instrument [Line Items]
Capitalized debt issue costs	$ 300,000
White Oak Loan Agreement | Principal Prepaid Before Third Anniversary
Debt Instrument [Line Items]
Prepayment fee of the principal	3.50%
White Oak Loan Agreement | Principal Prepaid After Third Anniversary
Debt Instrument [Line Items]
Prepayment fee of the principal	1.00%
Luna Innovations Incorporated | Restricted Cash and Cash Equivalents
Debt Instrument [Line Items]
Minimum liquidity requirement amount	$ 5,000,000

Future Annual Payments Due on A

Future Annual Payments Due on Amounts Outstanding (Detail) - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
Debt Instrument [Line Items]
2015 (remainder of year)	$ 1,970
2,016	4,009
2,017	41,782
Total remaining payments	47,761
Less: Amount representing interest	(13,233)
Long-term debt, Net Total	34,528
Total remaining payments	47,761
Less: Current portion of long-term debt	0
Long-term debt, net of current portion	$ 34,528	$ 34,385

Convertible Preferred Stock, 46

Convertible Preferred Stock, Common Stock and Warrants - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands

May. 12, 2015

Mar. 11, 2015

Jul. 30, 2014

Jul. 30, 2013

Aug. 31, 2014

Oct. 31, 2012

Jun. 30, 2015

Mar. 31, 2015

Mar. 31, 2014

Jun. 30, 2015

Jun. 30, 2014

Dec. 31, 2014

Stockholders Equity Note [Line Items]

Convertible preferred stock sold

53,846

0

0

0

Convertible preferred stock Price

$ 650

$ 0.0001

$ 0.0001

$ 0.0001

Common stock at conversion price

$ 0.65

Preferred stock quarterly dividend

2.00%

Preferred stock increase in second quarter dividend

2.00%

Number of common shares issued for preferred shares converted

55,094,915

Beneficial conversion feature of Series A preferred stock

$ 20,224

$ 20,224

Cumulative dividend on Series A preferred stock

812

$ 812

Common Stock issuable upon exercise of warrants

53,846,000

34,146,339

Warrants exercise period

2 years

Warrants exercise price

$ 0.975

$ 0.975

Premium on per share trailing weighted average share price

50.00%

Fair value of warrants upon issuance

$ 14,775

Warrant liability, reclassification to additional paid-in capital

$ 17,769

Warrant exchange

1,317

2,993

$ 2,900

Capitalized offering cost

$ 500

Common stock per warrant price

$ 0.125

Gross proceed from exercise of warrants

$ 14,000

Securities purchase agreement to sell shares

28,455,284

5,291,005

Common stock per warrant price

$ 1.23

Proceeds from issuance of common stock and warrants

$ 39,300

Placement fees and offering costs related to issuance of common stock and warrants

$ 2,100

Restricted period for resales of common stock

1 year

Other income (expense)

Stockholders Equity Note [Line Items]

Warrant exchange

$ 1,300

$ 3,000

Exchange Agreement

Stockholders Equity Note [Line Items]

Common Stock issuable upon exercise of warrants

26,728,369

Series B Warrant

Stockholders Equity Note [Line Items]

Common Stock issuable upon exercise of warrants

11,382,113

Common stock per warrant price

$ 1.50

Expiration date of warrants

August 2,015

Series B Warrant | Exchange Agreement

Stockholders Equity Note [Line Items]

Common Stock issuable upon exercise of warrants

10,221,173

Series C Warrant

Stockholders Equity Note [Line Items]

Common Stock issuable upon exercise of warrants

11,382,113

Common stock per warrant price

$ 2

Expiration date of warrants

August 2,015

Series C Warrant | Exchange Agreement

Stockholders Equity Note [Line Items]

Common Stock issuable upon exercise of warrants

10,221,173

Series B/C Exchange Warrants | Exchange Agreement

Stockholders Equity Note [Line Items]

Common Stock issuable upon exercise of warrants

20,442,346

Common stock per warrant price

$ 1.13

Gross proceed from exercise of warrants

$ 23,100

Period at which warrants subject to mandatory exercise after issuance

14 days

Series D Warrants | Exchange Agreement

Stockholders Equity Note [Line Items]

Common Stock issuable upon exercise of warrants

6,286,023

Warrants exercise period

5 years

Gross proceed from exercise of warrants

$ 7,100

Series A Warrants

Stockholders Equity Note [Line Items]

Common Stock issuable upon exercise of warrants

11,382,113

Common stock per warrant price

$ 1.23

Gross proceed from exercise of warrants

$ 14,000

Number of warrants exercised

11,400,000

Total Stock-Based Compensation

Total Stock-Based Compensation (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Stock-based compensation	$ 1,162	$ 658	$ 1,772	$ 1,415
Cost of goods sold
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Stock-based compensation	127	37	174	81
Research and development
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Stock-based compensation	388	222	535	402
Selling, general and administrative
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Stock-based compensation	$ 647	$ 399	$ 1,063	$ 932

Weighted Average Assumptions Us

Weighted Average Assumptions Used to Estimate Grant Date Fair Values of Stock Options (Detail)	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Stock Options
Estimated grant date fair values
Expected volatility	73.00%	83.00%	73.00%	75.00%
Risk-free interest rate	1.30%	1.60%	1.30%	1.40%
Expected term (in years)	4 years 1 month 17 days	5 years 2 months 5 days	4 years 1 month 17 days	4 years 4 months 2 days
Expected dividend rate	0.00%	0.00%	0.00%	0.00%
Employee Stock Purchase Plan
Estimated grant date fair values
Expected volatility	78.00%	106.00%	78.00%	106.00%
Risk-free interest rate	0.07%	0.10%	0.07%	0.10%
Expected term (in years)	6 months	6 months	6 months	6 months
Expected dividend rate	0.00%	0.00%	0.00%	0.00%

Summary of Option Activity (Det

Summary of Option Activity (Detail) - USD ($) $ / shares in Units, shares in Thousands	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014	Dec. 31, 2014
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Options Outstanding, Balance at December 31, 2014			9,191
Options Outstanding, Options granted			905
Options Outstanding, Options exercised			(5)
Options Outstanding, Options cancelled			(1,103)
Options Outstanding, Balance at June 30, 2015	8,988		8,988		9,191
Options Outstanding, Options vested at June 30, 2015	2,637		2,637
Options Outstanding, Options vested and expected to vest at June 30,2015	7,144		7,144
Weighted- Average Exercise Price, Balance at December 31, 2014			$ 1.69
Weighted- Average Exercise Price, Options granted			0.92
Weighted- Average Exercise Price, Options exercised			0.52
Weighted- Average Exercise Price, Options cancelled			3.34
Weighted- Average Exercise Price, Balance at June 30, 2015	$ 1.41		1.41		$ 1.69
Weighted- Average Exercise Price, Options vested at June 30, 2015	2.43		2.43
Weighted- Average Exercise Price, Options vested and expected to vest at June 30,2015	$ 1.49		$ 1.49
Weighted- Average Remaining Contractual Term, Balance			7 years 10 months 28 days		7 years 9 months 18 days
Weighted- Average Remaining Contractual Term, Options vested at March 31, 2015			5 years 4 months 17 days
Weighted- Average Remaining Contractual Term, Options vested and expected to vest at June 30, 2015			7 years 7 months 24 days
Aggregate Intrinsic Value, Options exercised	$ 1,000	$ 400,000	$ 2,000	$ 600,000
Aggregate Intrinsic Value, Options cancelled			24,000
Aggregate Intrinsic Value, Balance at June 30, 2015	966,000		966,000
Aggregate Intrinsic Value, Options vested at June 30, 2015	0		0
Aggregate Intrinsic Value, Options vested and expected to vest at June 30, 2015	$ 633,000		$ 633,000

Stock-Based Compensation - Addi

Stock-Based Compensation - Additional Information (Detail) - USD ($)	Apr. 01, 2015	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total fair value of options vested		$ 400,000	$ 400,000	$ 800,000	$ 1,000,000
Total unamortized stock-based compensation related to unvested stock options		2,500,000		$ 2,500,000
Weighted-average recognition period, unvested stock options				2 years 4 months 10 days
Total intrinsic value of stock options exercised		$ 1,000	400,000	$ 2,000	600,000
Shares of common stock were available for grant under 2006 Equity Incentive Plan		1,985,627		1,985,627
Restricted Stock Units (RSUs)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted-average recognition period, unvested stock options		2 years 29 days
Total fair value of shares vested pursuant to restricted stock units		$ 100,000	$ 0	$ 200,000	$ 2,000,000
Unamortized stock-based compensation related to unvested restricted stock units		$ 2,200,000		$ 2,200,000
Executives and employees cash bonus with vesting				5,439,000
Grant date fair value awards				$ 0.90
Performance Stock Unit [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Executives and employees cash bonus with vesting	3,089,505
Grant date fair value awards	$ 2,800,000

Summary of Restricted Stock Uni

Summary of Restricted Stock Unit Activity (Detail) - 6 months ended Jun. 30, 2015 - Restricted Stock Units (RSUs) - $ / shares shares in Thousands	Total
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Restricted Stock Units Outstanding, Balance at December 31, 2014	841
Restricted Stock Units Outstanding, Awarded	5,439
Restricted Stock Units Outstanding, Vested	(160)
Restricted Stock Units Outstanding, Cancelled	(299)
Restricted Stock Units Outstanding, Balance at June 30, 2015	5,821
Weighted-Average Fair Value When Awarded, Balance at December 31, 2014	$ 1.80
Weighted-Average Fair Value When Awarded, Awarded	0.90
Weighted-Average Fair Value When Awarded, Vested	1.37
Weighted-Average Fair Value When Awarded, Cancelled	1.55
Weighted-Average Fair Value When Awarded,Balance at June 30, 2015	$ 0.99

Income Taxes - Additional Infor

Income Taxes - Additional Information (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Income Tax Disclosure [Line Items]
Income tax provision	$ 15	$ 15	$ 24	$ 33
Uncertain benefit that none would affect effective tax rate	$ 4,300		$ 4,300

Net Loss Per Share - Additional

Net Loss Per Share - Additional Information (Detail) - Jun. 30, 2015 - USD ($) $ in Thousands	Total	Total
Earnings Per Share [Line Items]
Cumulative dividend on preferred stock	$ 812	$ 812

Computation of Basic and Dilute

Computation of Basic and Diluted Net Income (Loss) per Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Schedule Of Computation Of Basic And Diluted Earnings Per Common Share [Line Items]
Net loss	$ (12,507)	$ (12,290)	$ (24,440)	$ (26,735)
Adjust: Beneficial conversion feature of Series A convertible preferred stock	(20,224)		(20,224)
Adjust: Cumulative dividend on Series A convertible preferred stock	(812)		(812)
Net loss attributable to common stockholders	$ (33,543)	$ (12,290)	$ (45,476)	$ (26,735)
Weighted average shares used to compute basic and diluted net loss per share	163,107	112,003	148,280	107,692
Basic and diluted net loss per share	$ (0.21)	$ (0.11)	$ (0.31)	$ (0.25)

Securities That could Potential

Securities That could Potentially Dilute Basic Net Loss Per Share Not Included In Calculation of Diluted Net Loss per Common Share (Detail) - shares shares in Thousands	6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
Stock Options
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share	8,988	6,882
Unvested restricted stock units
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share	5,821	600
Estimated shares issuable under the employee stock purchase plan
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share	69	58
Warrants
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share	63,115	23,425

Component of Accumulated Other

Component of Accumulated Other Comprehensive Income (Loss), Net of Tax (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Accumulated Other Comprehensive Income (Loss) [Line Items]
Accumulated other comprehensive income (loss), beginning balance	$ 139	$ 445	$ 305	$ 360
Net current-period other comprehensive gain (loss)	(462)	(108)	(628)	(23)
Accumulated other comprehensive income (loss), ending balance	(323)	337	(323)	337
Unrealized Gains (Losses) on Securities
Accumulated Other Comprehensive Income (Loss) [Line Items]
Accumulated other comprehensive income (loss), beginning balance	290	456	392	373
Net current-period other comprehensive gain (loss)	(442)	(125)	(544)	(42)
Accumulated other comprehensive income (loss), ending balance	(152)	331	(152)	331
Foreign Currency Translation Gains (Losses)
Accumulated Other Comprehensive Income (Loss) [Line Items]
Accumulated other comprehensive income (loss), beginning balance	(151)	(11)	(87)	(13)
Net current-period other comprehensive gain (loss)	(20)	17	(84)	19
Accumulated other comprehensive income (loss), ending balance	$ (171)	$ 6	$ (171)	$ 6

Segment Information - Additiona

Segment Information - Additional Information (Detail) - Segment	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Segment Reporting Information [Line Items]
Number of operating segments			1
Sales | Geographic Concentration Risk | United States
Segment Reporting Information [Line Items]
Concentration risk, percentage	53.00%	32.00%	41.00%	44.00%
Sales | Geographic Concentration Risk | China
Segment Reporting Information [Line Items]
Concentration risk, percentage			15.00%
Sales | Geographic Concentration Risk | Saudi Arabia
Segment Reporting Information [Line Items]
Concentration risk, percentage		11.00%	10.00%
Sales | Geographic Concentration Risk | Belgium
Segment Reporting Information [Line Items]
Concentration risk, percentage	10.00%
Sales | Geographic Concentration Risk | Japan
Segment Reporting Information [Line Items]
Concentration risk, percentage		27.00%		18.00%
Sales | Geographic Concentration Risk | KUWAIT
Segment Reporting Information [Line Items]
Concentration risk, percentage		11.00%

Information Regarding Total Rev

Information Regarding Total Revenue (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Revenue, Major Customer [Line Items]
Revenues	$ 3,092	$ 6,887	$ 8,886	$ 10,586
United States
Revenue, Major Customer [Line Items]
Revenues	1,636	2,181	3,598	4,671
International
Revenue, Major Customer [Line Items]
Revenues	$ 1,456	$ 4,706	$ 5,288	$ 5,915