Hansen Medical (HNSN) 10-Q 16 May 16 2016 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2016	May. 11, 2016
Document Information [Line Items]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Mar. 31, 2016
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	Q1
Trading Symbol	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		18,989,610

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands		Mar. 31, 2016	Dec. 31, 2015
Current assets:
Cash and cash equivalents		$ 12,504	$ 20,375
Short-term investments		0	1,501
Accounts receivable, net of allowance of $23 as of March 31, 2016 and $23 as of December 31, 2015		2,609	4,551
Inventories		9,603	8,659
Prepaids and other current assets		1,310	1,814
Total current assets		26,026	36,900
Property and equipment, net		2,399	2,325
Restricted cash		6,098	6,113
Other assets		145	380
Total assets		34,668	45,718
Current liabilities:
Accounts payable		991	664
Accrued liabilities		4,011	4,113
Current portion of deferred revenue		3,124	3,923
Current portion of deferred rent		335	0
Short-term debt		33,824	35,141
Total current liabilities		42,285	43,841
Deferred rent, net of current portion		0	262
Deferred revenue, net of current portion		36	91
Other long-term liabilities		79	76
Total liabilities		$ 42,400	$ 44,270
Commitments and contingencies (Note 7)
Preferred stock, par value $0.0001, 10,000 shares authorized; zero shares issued and outstanding		$ 0	$ 0
Stockholders’ equity:
Common stock, par value $0.0001: Authorized: 30,000 shares; issued and outstanding: 18,872 and 13,326 shares at September 30, 2015 and December 31, 2014, respectively	[1]	2	2
Additional paid-in capital		455,989	455,585
Accumulated other comprehensive loss		(122)	(210)
Accumulated deficit		(463,601)	(453,929)
Total stockholders’ equity		(7,732)	1,448
Total liabilities, preferred stock and stockholders’ equity		$ 34,668	$ 45,718
[1]	The Company’s financial statements have been retroactively adjusted to reflect the reverse stock split of its outstanding shares of common stock at a ratio of one-for-ten effective on September 22, 2015.

Condensed Consolidated Balance3

Condensed Consolidated Balance Sheets (Parenthetical) $ in Thousands	Mar. 31, 2016USD ($)$ / sharesshares	Dec. 31, 2015USD ($)$ / sharesshares
Statement of Financial Position [Abstract]
Accounts receivable, allowance | $	$ 23	$ 23
Preferred stock, par value (in USD per share) | $ / shares	$ 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 (in USD per share) | $ / shares	$ 0.0001	$ 0.0001
Common stock, shares authorized	30,000,000	30,000,000
Common stock, shares issued	18,992,000	18,897,000
Common stock, shares outstanding	18,992,000	18,897,000

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands		3 Months Ended
		Mar. 31, 2016	Mar. 31, 2015
Income Statement [Abstract]
Income (Loss) From Continuing Operations, Per Basic And Diluted Share, Excluding Preferred Dividends Adjustment	[1]	$ (0.51)	$ (0.90)
Revenues:
Product		$ 1,633	$ 4,474
Service		1,409	1,320
Total revenues		3,042	5,794
Cost of revenues:
Product		1,299	3,896
Service		777	742
Total cost of revenues		2,076	4,638
Gross profit		966	1,156
Operating expenses:
Research and development		3,050	3,435
Selling, general and administrative		5,865	6,702
Total operating expenses		8,915	10,137
Loss from operations		(7,949)	(8,981)
Change in fair value of warrant liability		0	(1,676)
Interest and other expense, net		(1,715)	(1,267)
Loss before income taxes		(9,664)	(11,924)
Income tax expense		(8)	(9)
Net loss		$ (9,672)	$ (11,933)
Basic and diluted net loss per share (in USD per share)		$ (0.51)	$ (0.91)
Shares used to compute basic and diluted net loss per share (in shares)	[1]	18,947	13,328
[1]	The Company’s financial statements have been retroactively adjusted to reflect the reverse stock split of its outstanding shares of common stock at a ratio of one-for-ten effective on September 22, 2015.

Condensed Consolidated Stateme5

Condensed Consolidated Statements of Operations (Parenthetical)	Sep. 22, 2015	May. 12, 2015
Income Statement [Abstract]
Reverse stock split conversion ratio	0.10	0.10

Condensed Consolidated Stateme6

Condensed Consolidated Statement of Stockholders' Equity - USD ($) shares in Thousands, $ in Thousands		Total	Common Stock	Additional Paid- In Capital	Accumulated Other Comprehensive Loss	Accumulated Deficit
Beginning Balances at Dec. 31, 2014					$ 305
Net loss		$ (11,933)
Unrealized loss on investment reclassified to other expense		(102)
Foreign currency translation adjustments		(64)
Ending Balances at Mar. 31, 2015					139
Beginning Balances (in shares) at Dec. 31, 2015	[1]		18,897
Beginning Balances at Dec. 31, 2015		1,448	$ 2	$ 455,585	(210)	$ (453,929)
Issuances of common stock from restricted stock units (in shares)	[1]		95
Withholding taxes paid on vested restricted stock units		(9)		(9)
Employee share-based compensation expense		413		413
Net loss		(9,672)				(9,672)
Unrealized loss on investment reclassified to other expense		72			72
Foreign currency translation adjustments		16			16
Ending Balances (in shares) at Mar. 31, 2016	[1]		18,992
Ending Balances at Mar. 31, 2016		$ (7,732)	$ 2	$ 455,989	$ (122)	$ (463,601)
[1]	The Company’s financial statements have been retroactively adjusted to reflect the reverse stock split of its outstanding shares of common stock at a ratio of one-for-ten effective on September 22, 2015.

Condensed Consolidated Stateme7

Condensed Consolidated Statement of Stockholders' Equity (Parenthetical)	Sep. 22, 2015	May. 12, 2015
Statement of Stockholders' Equity [Abstract]
Reverse stock split conversion ratio	0.10	0.10

Condensed Consolidated Stateme8

Condensed Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Statement of Comprehensive Income [Abstract]
Net loss	$ (9,672)	$ (11,933)
Other comprehensive loss, net:
Amount reclassified to other expense	72	(102)
Foreign currency translation adjustment	16	(64)
Change in other comprehensive income (loss)	88	(166)
Comprehensive loss	$ (9,584)	$ (12,099)

Condensed Consolidated Stateme9

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Net Cash Provided by (Used in) Operating Activities, Continuing Operations [Abstract]
Net loss	$ (9,672)	$ (11,933)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	234	244
Stock-based compensation	413	610
Payment-in-kind interest on loan	269	258
Amortization of deferred finance costs and discount on debt	35	97
Change in fair value of warrant liability	0	1,676
Provision of doubtful accounts	15	0
Inventory write-off	16	0
Realized loss on investment	357	0
Changes in operating assets and liabilities:
Accounts receivable	1,927	1,375
Inventories	(1,253)	608
Prepaids and other current assets	274	161
Other long-term assets	60	(65)
Accounts payable	327	(81)
Accrued liabilities	(30)	(464)
Deferred revenue	(853)	(427)
Other long-term liabilities	3	17
Net cash used in operating activities	(7,878)	(7,924)
Net Cash Provided by (Used in) Investing Activities, Continuing Operations [Abstract]
Purchase of property and equipment	(15)	(47)
Proceeds from sale of short-term investment	1,215	0
Change in restricted cash	15	14
Net cash provided by (used in) investing activities	1,215	(33)
Net Cash Provided by (Used in) Financing Activities, Continuing Operations [Abstract]
Proceeds from issuance of Series A convertible preferred stock	0	35,000
Payment of short-term debt	(1,215)	0
Costs related to issuance of Series A convertible preferred stock and common stock	0	(107)
Withholding taxes paid on vested restricted stock units	(9)	0
Net cash provided by (used in) financing activities	(1,224)	34,893
Effect of exchange rate changes on cash and cash equivalents	16	(64)
Net increase (decrease) in cash and cash equivalents	(7,871)	26,872
Cash and cash equivalents at beginning of period	20,375	24,528
Cash and cash equivalents at end of period	12,504	51,400
Supplemental disclosure of:
Cash paid for interest	954	945
Non-cash investing and financing activity:
Equipment transfer from inventories to property and equipment	$ 293	$ 692

The Company

The Company	3 Months Ended
	Mar. 31, 2016
Accounting Policies [Abstract]
The Company	The Company Nature of Operations Hansen Medical, Inc. (the “Company”) develops, manufactures, markets and sells 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 and selling the Company’s products in the Europe, Middle East and Africa (“EMEA”) region. Going Concern 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 $463.6 million . The Company expects such losses to continue through at least the year ending December 31, 2016 as it continues to commercialize its technologies and develop new applications and products. The Company also has a negative working capital of $16.3 million . The Company continues to face significant uncertainties and challenges. The Company faces uncertainty related to the commercialization of its Magellan TM Robotic System ("Magellan System") and its projected revenue is heavily dependent on a successful commercialization of this system. In addition, the Company is also subject to minimum liquidity requirements under its existing borrowing arrangements with White Oak Global Advisors, LLC ("White Oak"), 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, restricted cash and investments and the lesser of $2.0 million or 65% in eligible accounts receivable. Additionally, the Company is required by White Oak to obtain an audit opinion from its independent certified public accountants on the annual financial statements that does not include an explanatory uncertainty paragraph raising substantial doubt about its ability to continue as a going concern or any qualification or exception as to the scope of such audit. As of March 31, 2016, the Company was not in compliance with certain covenants and events of default listed in Sections 6.1(c), 6.2(a)(i), 6.2(a)(iv), 6.10, 8.2(a) and 8.2(b) of the loan and security agreement with White Oak (the “Specified Events of Default”). On April 19, 2016, the Company entered into a Forbearance Agreement with White Oak (“Forbearance Agreement”) whereby White Oak granted forbearance of the Specified Events of Default until August 17, 2016 in exchange for a $150,000 non-refundable transaction fee. Pursuant to the Forbearance Agreement, on April 21, 2016, the Company made a prepayment to White Oak, with respect to its obligations under the loan and security agreement with White Oak, in the amount of $5.0 million from the Company’s restricted account. In the first quarter of 2016, the Company sold its investment in the corporate equity securities and used the proceeds in the amount of $1.2 million to pay a portion of its short-term debt with White Oak. Additionally, the outstanding obligations under the White Oak loan will become due on or before August 17, 2016. As of March 31, 2016, the debt was classified as a short-term liability. As of March 31, 2016, the Company’s cash, cash equivalents, and restricted cash balances were $18.6 million . The Company anticipates that its existing available capital resources as of March 31, 2016 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, that it will achieve or maintain compliance with debt covenants, 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. On April 20, 2016, the Company, Auris Surgical Robotics, Inc. ("Parent"), and Pineco Acquisition Corp., a wholly owned subsidiary of Parent ("Merger Sub"), entered into an Agreement and Plan of Merger (the "Merger Agreement"), pursuant to which, subject to satisfaction or waiver of the conditions therein, Merger Sub will merge with and into the Company (the "Merger"), with the Company surviving the Merger as a wholly owned subsidiary of Parent. At the effective time of the Merger (the "Effective Time"), each share of Hansen common stock issued and outstanding immediately prior to the Effective Time (other than shares owned by Parent or any of its subsidiaries, shares held by Hansen as treasury stock, and shares held by stockholders who have perfected their statutory rights of appraisal under Section 262 of the Delaware General Corporation Law) will be converted into the right to receive $4.00 in cash, without interest (the "Merger Consideration"). The completion of the merger is subject to normal closing and other conditions and is expected during the third quarter of 2016. Additionally, concurrently with entering into the Merger Agreement, certain Company stockholders owning approximately 64.6% of the outstanding shares of the Company common stock, including Larry Feinberg and certain affiliated entities, Jack Schuler and certain affiliated entities and an affiliated entity of Lawrence T. Kennedy, Jr. (the "Rollover Stockholders"), executed and delivered a stock purchase agreement with Parent whereby each Rollover Stockholder has unconditionally agreed to acquire shares of preferred stock of Parent immediately following the Effective Time on the terms set forth therein, in exchange for an investment of approximately $49 million (representing the aggregate amount of consideration payable to the Rollover Stockholders in the Merger). The accompanying condensed 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	3 Months Ended
	Mar. 31, 2016
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	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, 2015 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, 2015 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. Reverse Split of Common Stock On May 12, 2015, at the Annual Meeting of Stockholders of the Company, the stockholders approved a series of alternate amendments to the Company’s Certificate of Incorporation (the "Certificate") to effect, at the discretion of the Company’s Board of Directors (the "Board"), a reverse stock split of the Company’s common stock whereby each outstanding four, six, eight or ten shares would be combined into one share of common stock and a proportional reduction in the number of authorized shares of common stock. On September 18, 2015, the Board approved a reverse stock split of the Company’s outstanding shares of common stock at a ratio of one-for-ten and the related amendment to the Certificate providing for the combination of each outstanding ten shares of Company common stock into one share of Company common stock. The amendment to the Certificate was filed with the Secretary of State of the State of Delaware on September 22, 2015, decreasing the Company’s authorized common stock from 300,000,000 to 30,000,000 . Historical share information presented in the accompanying financial statements has been retroactively adjusted to reflect this reverse stock split. 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 preferred stock, and deferred tax assets, among others. Actual results may materially 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 Magellan Transport System (“MTS”) and associated catheters and drapes, 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 . Persuasive evidence of an arrangement for sales of systems is generally determined by a sales contract signed and dated by both the customer and the Company, including approved terms and conditions, or the receipt of an approved purchase order. Evidence of an arrangement for the sale of disposable products is determined through an approved purchase order from the customer. Evidence of an arrangement for the sale of customer service is determined through either a signed sales contract or an approved purchase order from the customer. Sales to customers are generally not subject to any performance, cancellation, termination or return rights. • Delivery . • Systems and Disposable Products. Typically, ownership of systems, catheters and other disposable products passes to customers upon shipment, at which time delivery is deemed to be complete. • Customer Service Revenue. The Company recognizes customer service revenue from the sale of its PCS contracts which include planned and corrective maintenance services, software updates, bug fixes, and warranties. Revenue from customer services, whether sold individually or as a separate unit of accounting in a multi-element arrangement, is deferred and amortized over the service period, which is typically one year. • Multiple-element Arrangements. It is common for the sale of Sensei and Magellan Systems to include multiple elements which have standalone value and qualify as separate units of accounting. These elements commonly include the sale of the system and a product maintenance plan, in addition to installation of the system and initial training. Less commonly, these elements may include the sale of certain disposable products or other elements. For multiple-element arrangements revenue is allocated to each element based on their relative selling prices. Relative selling prices are based first on vendor specified objective evidence (“VSOE”), then on third-party evidence of selling price (“TPE”) when VSOE does not exist, and then on management’s best estimate of the selling price (“ESP”) when VSOE and TPE do not exist. Because the Company has neither VSOE nor TPE for its system, the allocation of revenue is based on ESP for the systems sold. The objective of ESP is to determine the price at which the Company would transact a sale, had the product been sold on a stand-alone basis. The Company determines ESP for its systems by considering multiple factors, including, but not limited to, features and functionality of the system, geographies, type of customer, and market conditions. The Company regularly reviews ESP and maintains internal controls over the establishment and updates of these estimates. • Sales Price Fixed or Determinable. The Company assesses whether the sales price is fixed or determinable at the time of the transaction. Sales prices are documented in the executed sales contract or purchase order received prior to shipment. The Company’s standard terms do not allow for contingencies, such as trial or evaluation periods, refundable orders, or extended payment terms or payments contingent upon the customer obtaining financing or other contingencies which would impact the customer’s obligation. In situations where these or other contingencies are included, all related revenue is deferred until the contingency is resolved. The Company also ships under a limited commercial evaluation program to allow certain strategic accounts to install and utilize systems for a limited trial period of three to six months (or longer, in certain limited circumstances) while the purchase opportunity is being evaluated by the hospital. Systems under this program remain the property of the Company and are recorded in inventory and a sale only occurs upon the issuance of a purchase order from the customer. • Collectability. The Company assesses whether collection is reasonably assured based on a number of factors, including the customer’s past transaction history and credit worthiness. If collection of the sales price is not deemed reasonably assured, the revenue is deferred and recognized at the time collection becomes reasonably assured, which is usually upon receipt of cash. The Company’s sales contracts generally do not allow the customer the right of cancellation, refund or return, except as provided under the Company’s standard warranty. If such rights were allowed, all related revenues would be deferred until such rights expired. 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 and accounts receivable. Cash and cash equivalents are deposited in demand and money market accounts at one financial institution. 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 30% of the Company’s net accounts receivable at March 31, 2016. The Company had four customers who constituted 19% , 18% , 12% and 12% , respectively, of the Company’s net accounts receivable at December 31, 2015. As of March 31, 2016, the Company has not experienced any significant losses on its accounts receivable. Two customers accounted for 15% and 10% , respectively, of total revenues during the three months ended March 31, 2016. Three customers accounted for 22% , 13% and 10% , respectively, of total revenues during the three months ended March 31, 2015. 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 ® Control Catheter in Europe in May 2007. The Company received FDA clearance for the marketing of its Sensei System and Artisan catheters for manipulation, positioning and control of certain mapping catheters during electrophysiology (“EP”) procedures in the United States in May 2007. Magellan: At the current time the Company has received clearance and approval for the Magellan System and the Magellan 6Fr, 9Fr, 10Fr and eKit 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 and the Magellan eKit in February 2016. 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. Stock-based Compensation The Company accounts for share-based compensation plan in accordance with the provisions of The Financial Accounting Standards Board (“FASB”) Accounting Standards Codification ("ASC”) No. 718-10-30, Stock Compensation Initial Measurement, which requires the measurement and recognition of compensation expense for all stock-based awards made to employees and directors including employee stock options, restricted stock units (“RSUs”), performance stock units (“PSUs”) and employee stock purchases under our Employee Stock Purchase Plan (“ESPP”) based on estimated fair values and recognizes stock-based compensation expense, net of estimated forfeitures, on a ratable basis over the requisite service period. The Company estimates the fair value of stock options granted using the Black-Scholes-Merton (“BSM”) option valuation model. The BSM option valuation model determines the fair value of stock-based awards using the following assumptions • Expected Volatility . The Company’s estimate of volatility is based on the historical volatilities of its stock price. • Expected Term . The Company estimates the expected term based on its historical settlement experience related to vesting and contractual terms while giving consideration to awards that have life cycles less than the contractual terms and vesting schedules in accordance with authoritative guidance. • Risk-Free Interest Rate. The risk-free interest rate that the Company uses in the BSM option valuation model is the implied yield in effect at the time of option grant based on U.S. Treasury zero-coupon issues with a remaining term equivalent to the expected term of the option grants. For ESPP grants, the Company uses the 6-month Constant Maturity Treasury rate. • Dividend Yield. The Company has never paid any cash dividends on its common stock and it does not anticipate paying any cash dividends in the foreseeable future. Consequently, the Company uses a dividend yield of zero in the BSM option valuation model. 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 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), which supersedes the revenue recognition requirements in ASC 605, Revenue Recognition . ASU 2014-09 is based on the principle that revenue is recognized to depict the transfer of goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. ASU 2014-09 also requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments and assets recognized from costs incurred to obtain or fulfill a contract. In July 2015, the FASB deferred the effective date of this ASU from December 15, 2016 to December 15, 2017, with early adoption permitted before annual periods beginning after December 15, 2016. The principles may be applied retrospectively to each prior period presented or retrospectively with the cumulative effect recognized as of the date of initial application. The Company is currently assessing the impact of the adoption of ASU 2014-09 on its condensed consolidated financial statements. 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. The ASU provides guidance on determining when and how to disclose going-concern uncertainties in the financial statements. The new standard requires management to perform interim and annual assessments of an entity’s ability to continue as a going concern within one year of the date the financial statements are issued. An entity must provide certain disclosures if “conditions or events raise substantial doubt about the entity’s ability to continue as a going concern.” The ASU applies to all entities and is effective for annual periods ending after December 15, 2016, and interim periods thereafter, with early adoption permitted. The Company has been assessing the going concern issue since 2010 on an interim and annual basis and will continue to assess whether the financial conditions based on this new guidance have an impact on the Company’s condensed consolidated financial statements or footnotes. In April 2015, the FASB issued ASU 2015-03, Interest-Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Cost , which changes the presentation of debt issuance costs in financial statements. Under the ASU, an entity presents costs in the balance sheet as a direct deduction from the related debt liability rather than as an asset. Amortization of the costs is reported as interest expense. Under current guidance, an entity reports debt issuance costs in the balance sheet as deferred charges (i.e. as an asset). For public companies, the ASU is effective for fiscal years beginning after December 15, 2015, and interim periods within those fiscal years, with early adoption permitted. Entities would apply the new guidance retrospectively to all prior periods. The Company adopted the ASU 2015-03 on its condensed consolidated financial statements beginning in the quarter ended March 31, 2016 and the impact was $0.4 million deduction to its short-term debt presentation on its condensed consolidated balance sheets. In July 2015, the FASB issued ASU 2015-11, Simplifying the Measurement of Inventory . Under this ASU, inventory will be measured at the “lower of cost and net realizable value” and options that currently exist for “market value” will be eliminated. The ASU defines net realizable value as the “estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation.” No other changes were made to the current guidance on inventory measurement. ASU 2015-11 is effective for interim and annual periods beginning after December 15, 2016. Early adoption is permitted and should be applied prospectively. The Company does not expect the adoption of this accounting standard update to impact its condensed consolidated financial statements. In February 2016, the FASB issued ASU 2016-02, Leases , which require a lessee to recognize lease assets and liabilities on the balance sheet for all arrangements with terms longer than 12 months. Lessor accounting remains largely consistent with existing U.S. GAAP. The new standard takes effect in 2019 for public business entities and 2020 for all other entities. The Company is currently assessing the impact of the adoption of ASU 2016-02 on its condensed consolidated financial statements. In March 2016, the FASB issued ASU 2016-09, Compensation-Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting . ASU 2016-09 requires among other things that all excess tax benefits and tax deficiencies (including tax benefits of dividends on share-based payment awards) to be recognized as income tax expense or benefit in the income statement. The tax effects of exercised or vested awards should be treated as discrete items in the reporting period in which they occur. An entity also should recognize excess tax benefits, and assess the need for a valuation allowance, regardless of whether the benefit reduces taxes payable in the current period. The ASU also requires excess tax benefits to be classified along with other income tax cash flows as an operating activity in the statement of cash flows. This new guidance is effective for annual reporting periods beginning after December 15, 2016, including interim periods within those fiscal years. Early adoption is permitted. The Company is currently assessing the impact of the adoption of ASU 2016-09 on its condensed consolidated financial statements.

Fair Value of Assets and Liabil

Fair Value of Assets and Liabilities	3 Months Ended
	Mar. 31, 2016
Fair Value Disclosures [Abstract]
Fair Value of Assets and Liabilities	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 debt. Cash and cash equivalents, short-term investments and accounts receivable, net of allowance, are reported at their respective fair values on the condensed consolidated balance sheets. Short-term debt is reported at its amortized cost on the condensed consolidated balance sheets. The remaining financial instruments are reported on the condensed 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 Amortized Cost Gross Unrealized Losses Fair Value Cash and cash Equivalents Short-term Investments Restricted Cash March 31, 2016: Cash $ 1,029 $ — $ 1,029 $ 1,029 $ — $ — Money market funds 17,573 — 17,573 11,475 — 6,098 Corporate equity securities — — — — — — $ 18,602 $ — $ 18,602 $ 12,504 $ — $ 6,098 December 31, 2015: Cash $ 1,408 $ — $ 1,408 $ 1,408 $ — $ — Money market funds 25,080 — 25,080 18,967 — 6,113 Corporate equity securities 1,572 (71 ) 1,501 — 1,501 — $ 28,060 $ (71 ) $ 27,989 $ 20,375 $ 1,501 $ 6,113 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 Active Markets for Identical Assets (Level 1 Inputs) Significant other Observable Inputs (Level 2 Inputs) Unobservable Inputs (Level 3 Inputs) Total March 31, 2016: Money market funds $ 17,573 $ — $ — $ 17,573 Corporate equity securities — — — — $ 17,573 $ — $ — $ 17,573 December 31, 2015: Money market funds $ 25,080 $ — $ — $ 25,080 Corporate equity securities 1,501 1,501 $ 26,581 $ — $ — $ 26,581 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. In the first quarter of 2016, the Company sold its investment in the corporate equity securities and used the proceeds in the amount of $1.2 million to pay a portion of its short-term debt with White Oak. 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 months ended March 31, 2016. 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 5,384,600 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 $9.75 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 Stockholders 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 change in fair value of $1.7 million and $3.0 million was recorded in the condensed consolidated statements of operations for the three months ended March 31, 2015 and the year ended December 31, 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 $9.75 per share for the Series E Warrants, the Company revalued the warrants and 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 10 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 March 31, 2016. Short-term Debt The fair value of the Company’s short-term debt was estimated to be $35.7 million as of March 31, 2016 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 short-term debt.

Balance Sheet Components

Balance Sheet Components	3 Months Ended
	Mar. 31, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Balance Sheet Components	Balance Sheet Components Inventories (in thousands) March 31, 2016 December 31, 2015 Raw materials $ 3,662 $ 2,613 Work in process 3,354 3,575 Finished goods 2,587 2,471 Total Inventories $ 9,603 $ 8,659 Property and equipment, net (in thousands) March 31, 2016 December 31, 2015 Furniture and leasehold improvements $ 11,329 $ 11,329 Laboratory equipment 12,466 12,158 Computer equipment and software 2,955 2,956 26,750 26,443 Less: Accumulated depreciation and amortization (24,351 ) (24,118 ) Property and equipment, net $ 2,399 $ 2,325 Accrued liabilities (in thousands) March 31, 2016 December 31, 2015 Accrued salaries, commission, bonus and benefits $ 1,242 $ 1,094 Accrued restructuring 921 1,581 Accrued legal and other professional fees 645 228 Tax accruals 359 333 Accrued royalties 278 330 Clinical related accruals 178 60 Other accrued expenses 388 487 Accrued liabilities $ 4,011 $ 4,113

Agreements with Intuitive Surgi

Agreements with Intuitive Surgical	3 Months Ended
	Mar. 31, 2016
Text Block [Abstract]
Agreements with Intuitive Surgical	Agreements with Intuitive Surgical, Inc. In October 2012, the Company signed an updated license agreement with Intuitive Surgical Operations, Inc. and Intuitive Surgical, Inc. (collectively, “Intuitive”), under which Intuitive paid the Company a $20.0 million licensing fee, and entered into a stock purchase agreement to buy 529,101 shares of the Company’s common stock for an aggregate purchase price of $10.0 million . The amendment of the license agreement updated the co-exclusive cross license agreement signed by the companies in 2005. Under the terms of the amended agreement, Intuitive’s co-exclusive rights extended to include intellectual property rights filed or conceived by the Company in the non-vascular space subsequent to the original 2005 agreement through October 26, 2015. The Company retained the right to use its intellectual property for all clinical applications, both vascular and non-vascular. The Company previously concluded that the value associated with patents filed or conceived in the three years subsequent to the amendment was de minimis and therefore the $20.0 million upfront payment 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 term of the intellectual property capture period expired on October 26, 2015. The cross-licenses and royalty obligations remain in effect. The Company has minimum royalty obligations of $0.2 million per year under the terms of its cross license agreement with Intuitive. For the three months ended March 31, 2016 and 2015, the Company incurred zero and $0.1 million , respectively, related to the royalty obligations to Intuitive.

Agreements with Philips

Agreements with Philips	3 Months Ended
	Mar. 31, 2016
Text Block [Abstract]
Agreements with Philips	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 March 31, 2016 and 2015, the Company incurred immaterial and $0.6 million , respectively, of cost related to the royalty obligations to Philips.

Commitments and Contingencies

Commitments and Contingencies	3 Months Ended
	Mar. 31, 2016
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	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 originally was scheduled to expire in January 2020 , with an option to extend the lease for another five years . On December 15, 2015, the Company entered into a Lease Termination Agreement with its landlord for the termination of the Company's existing lease in Mountain View, California (the "Lease Termination"). The Lease Termination is to become effective not earlier than June 1, 2016 but no later than August 31, 2016. Upon the effective date of the Lease Termination, the Company will be released from all of its obligations under the existing lease, except for certain expenses and indemnification obligations as set forth in the Lease Termination. Concurrently, the Company entered into a lease agreement with LBA Realty Fund11-WBP VII, Inc. to rent 32,552 square feet of office and manufacturing space located in San Jose, California with a commencement date of June 1, 2016 but no later than August 1, 2016, and expiring in February 2027. The Company also rents office space in London, England under an office rental agreement that ends in April 2016 . As of March 31, 2016, future minimum payments under the lease and rental are as follows (in thousands): Years Ending December 31, Future Minimum Lease Payments 2016 (remainder of year) $ 1,153 2017 297 2018 610 2019 628 2020 647 Thereafter 4,443 Total $ 7,778 Rent expense on a straight-line basis was $0.6 million for both the three months ended March 31, 2016 and 2015. 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 costs in the amount of $100,000 and $35,000 , respectively, related to the royalty obligations to Mitsubishi for the three months ended March 31, 2016 and 2015. 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. Except as set forth below, 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. Between April 25, 2016 and May 6, 2016, four putative class action lawsuits were filed in the Superior Court of the State of California, County of Santa Clara (the “California Court”) against the Company, its directors, Auris, and Sub in connection with the proposed Merger. The lawsuits are captioned Joseph Liu v. Hansen Medical, Inc., et al. , 16CV294288 (April 25, 2016), Dawn Stevens-Juhl v. Hansen Medical, Inc., et al. , 16CV294354 (April 26, 2016), Howard Huggins v. Hansen Medical, Inc., et al. , 16CV294552 (May 2, 2016) and David Simonson v. Cary G. Vance, et al. , 16CV294862 (May 6, 2016) (naming the Company’s directors, Auris, and Sub as defendants). On May 12, 2016, the plaintiff in the Stevens-Juhl action requested that the California Court dismiss her complaint without prejudice. The California Court has not yet acted on that request. These lawsuits each allege that the Company’s directors breached their fiduciary duties to Company stockholders by, among other things, seeking to sell the Company through an allegedly unfair process, for an unfair price, and on unfair terms. The lawsuits also allege that Auris and Sub aided and abetted those alleged breaches of fiduciary duties. The lawsuits seek, among other things, equitable relief that would enjoin the consummation of the proposed Merger, rescission of the Merger Agreement (to the extent it has already been implemented) or rescissory damages, and attorneys’ fees and costs. The Liu and Simonson actions additionally seek an order directing the Company’s directors to exercise their fiduciary duties to obtain a transaction that is in the best interests of the Company’s stockholders and the imposition of a constructive trust, in favor of the plaintiff and the class, upon any benefits improperly received by defendants as a result of their alleged wrongdoing. The Stevens-Juhl and Huggins actions additionally seek an accounting for any damages suffered by the plaintiff and the class as a result of the defendants’ alleged wrongdoing. On May 10, 2016 a putative class action was filed in the Court of Chancery of the State of Delaware against the Company, its directors, twelve entities that are Company stockholders along with two individuals that allegedly control some of those entities (the “Stockholder Defendants”), Auris, and Sub. The lawsuit is captioned Windward Venture Partners, LP v. Hansen Medical, Inc., et al. , Civil Action No. 12316 (the “Delaware Action”). The Delaware Action alleges that the Company’s directors breached their fiduciary duties to Company stockholders by, among other things, seeking to sell the Company through an allegedly unfair process, for an unfair price, and on unfair terms. The lawsuit also alleges that the Stockholder Defendants were controlling stockholders of the Company and breached fiduciary duties they owed to the Company’s other stockholders by, among other things, causing the Company to engage in an unfair transaction to the benefit of the Stockholder Defendants. Auris and Sub are alleged to have aided and abetted these breaches of fiduciary duties. The Delaware Action seeks equitable relief that would enjoin the consummation of the proposed Merger, rescission of the Merger Agreement (to the extent it has already been implemented) or rescissory damages, an accounting for any damages suffered by the plaintiff and the class as a result of the defendants’ alleged wrongdoing, and attorneys’ fees and costs. The Company and its directors believe that the foregoing lawsuits are entirely without merit and intend to vigorously defend against the actions.

Short-term Debt

Short-term Debt	3 Months Ended
	Mar. 31, 2016
Debt Disclosure [Abstract]
Short-term Debt	Short-term Debt White Oak Loan In July 2013, the Company executed a loan and security 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 which in aggregate are accounted for as a discount 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 March 31, 2016 and 2015. 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 pledged to the 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 the lesser of $2.0 million or 65% of eligible accounts receivable. Additionally, the Company is required to obtain an audit opinion from its independent certified public accountants on the annual financial statements that does not include an explanatory uncertainty paragraph raising substantial doubt about its ability to continue as a going concern or any qualification or exception as to the scope of such audit. 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 March 31, 2016, the Company was not in compliance with certain covenants and events of default listed in Sections 6.1(c), 6.2(a)(i), 6.2(a)(iv), 6.10, 8.2(a) and 8.2(b) of the loan and security agreement with White Oak (the “Specified Events of Default”). On April 19, 2016, the Company entered into a Forbearance Agreement with White Oak (“Forbearance Agreement”) whereby White Oak granted forbearance of the Specified Events of Default until August 17, 2016 in exchange for a $150,000 non-refundable transaction fee. Pursuant to the Forbearance Agreement, on April 21, 2016, the Company made a prepayment to White Oak, with respect to our obligations under the loan and security agreement with White Oak, in the amount of $5.0 million from the Company’s restricted account. In the first quarter of 2016, the Company sold its investment in the corporate equity securities and used the proceeds in the amount of $1.2 million to pay a portion of its short-term debt with White Oak. Additionally, the outstanding obligations under the White Oak loan will become due on or before August 17, 2016. As of March 31, 2016, the debt was classified as a short-term liability. Future minimum payments due on the debt as of March 31, 2016 are as follows (in thousands): Years Ending December 31, Total remaining payments 43,277 Less: Amount representing interest (9,047 ) Less: Debt discount (406 ) 33,824 Less: Current portion of long-term debt (33,824 ) Long-term debt, net of current portion $ —

Restructuring

Restructuring	3 Months Ended
	Mar. 31, 2016
Restructuring and Related Activities [Abstract]
Restructuring	Restructuring In November 2015, the Company initiated a cost-saving restructuring plan in order to align its headcount to reduce operating expenses, consolidate its back-office operations by closing its office in the United Kingdom and relocating its headquarter. This restructuring plan would impact approximately 35 full-time positions in its Mountain View, California office and 9 full-time employees in its international offices. The Company recorded restructuring charges of approximately $1.7 million consisting of employee severance and termination benefits, operating lease cancellation fees and expenses related to closing down its United Kingdom office. The Company recorded employee severance costs provided under an ongoing benefit arrangement once they are both probable and estimable in accordance with the provisions of ASC 712. The Company accounted for lease cancellation fees and closing down its United Kingdom office in accordance with ASC 420. Under ASC 420, the Company established a liability for a cost associated with an exit or disposal activity, when the liability was incurred, rather than at the date that the Company committed to an exit plan. The Company reassesses the expected cost to complete the exit or disposal activities at the end of each reporting period and adjusts its remaining estimated liabilities, if necessary. The Company paid $0.5 million of broker commission to the third party who assisted the Company to negotiate an early termination of its office in Mountain View, California in the first quarter of 2016. The Company recorded $0.2 million as exit costs related to the closing off its office in the United Kingdom. The Company has classified approximately $1.5 million of these charges as restructuring expense and $188,000 as a component of cost of sales. The Company has completed phase one of its restructuring activities in the fourth quarter of 2015 and expects to complete phase 2 by the end of 2016. The table below presents the restructuring activities for the quarter ended March 31, 2016 (in thousands): Employee Severance and Termination Benefits Operating Lease Cancellation Exit Cost Total Accrued restructuring balance as of January 1, 2016 $ 881 $ 500 $ 200 $ 1,581 Additional accruals — — — — Cash payments (79 ) (500 ) (81 ) (660 ) Accrued restructuring balance as of March 31, 2016 $ 802 $ — $ 119 $ 921

Convertible Preferred Stock, Co

Convertible Preferred Stock, Common Stock and Warrants	3 Months Ended
	Mar. 31, 2016
Equity [Abstract]
Convertible Preferred Stock, Common Stock and Warrants	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 5,509,492 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 the beneficial conversion features under ASC 470-20, Debt with Conversion and Other Options . Upon conversion of the preferred stock during the second quarter of 2015, the Company recorded a deemed dividend charge of $35.5 million for the accretion of a discount on the Series A convertible preferred stock resulting from an allocation of a portion of the proceeds to the warrants and a beneficial conversion feature embedded within the Series A convertible preferred stock, which equals the amount by which the estimated fair value of the common stock issuable upon conversion of the issued Series A convertible preferred stock exceeded the proceeds from such issuance, and a cumulative Series A convertible preferred stock dividend of $0.8 million . The deemed dividend and cumulative dividend were non-cash transactions during the second quarter of 2015 and reflected below net loss to arrive at net loss allocable to common stockholders. As part of the Purchase Agreement, the Company also issued Series E Warrants to the participating investors to purchase an aggregate of 5,384,600 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 $9.75 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 $9.75 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 $1.7 million and $3.0 million was recorded on the condensed consolidated statements of operations for the three months ended March 31, 2015 and the year ended December 31, 2015, respectively. The Company had incurred and capitalized approximately $0.5 million of costs associated with this offering, which were recorded as an offset to additional 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 1,022,117 of the Company’s outstanding Series B Warrants and an aggregate of 1,022,117 of the Company’s outstanding Series C Warrants. In exchange, the Company issued warrants (the “Exchange Warrants”) to purchase an aggregate of 2,672,837 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 2,044,235 shares of common stock, with an exercise price equal to $11.30 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 628,602 shares of common stock, with an exercise price 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, Black-Scholes 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 $2.9 million warrant exchange charge in the consolidated statement of operations during the year ended December 31, 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 Warrants and Series D Warrants. 2013 Private Placement Transaction In March 2013, the Company executed an “at the market” agreement pursuant to which the Company may have offered to sell shares of common stock up to an aggregate offering price of up to $25.0 million . In July 2013, the Company exercised its right to terminate the agreement. No shares were offered or sold pursuant to the agreement. On July 30, 2013, the Company entered into a securities purchase agreement to sell an aggregate of 2,845,528 shares of its common stock at a per share price of $12.30 and warrants to purchase an aggregate of 3,414,634 shares of common stock at a per warrant price of $1.25 in a private placement transaction. The warrants were comprised of the following three series: Series A warrants exercisable for an aggregate 1,138,211 shares of common stock, with an exercise price equal to $12.30 ; Series B warrants exercisable for an aggregate 1,138,211 shares of common stock, with an exercise price equal to $15.00 per share; and Series C warrants exercisable for an aggregate 1,138,211 shares of common stock, with an exercise price equal to $20.00 per share. Series A warrants were subject to mandatory exercise subsequent to the receipt of regulatory approval for the new 6Fr Magellan 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 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 1.1 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	3 Months Ended
	Mar. 31, 2016
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Stock-based Compensation	Stock-based Compensation On September 22, 2015, the Company effected a reverse stock split of its common stock by a ratio of 1-for-10 (the “Reverse Split”). As a result of the Reverse Split every ten outstanding shares of common stock became one share of common stock. No fractional shares were issued in connection with the Reverse Split. A stockholder who would otherwise have been entitled to receive a fractional share of common stock received a cash payment equal to the closing sales price of the Company’s common stock on September 22, 2015 as reported on the NASDAQ times the amount of the fractional share. The Reverse Split also changed the number of shares of common stock that the Company is authorized to issue from 300,000,000 to 30,000,000 but did not change the par value of the Company’s common or preferred stock or the number of authorized shares of preferred stock. The Reverse Split resulted in a proportionate adjustment to the per share exercise price and the number of shares of common stock issuable upon the exercise of outstanding warrants and stock options, as well as the number of shares of common stock issuable upon the vesting of restricted stock units. All of the information in these financial statements has been presented to reflect the impact of the 1-for-10 Reverse Split on a retroactive basis. Total stock-based compensation expense consisted of the following (in thousands): Three Months Ended March 31, 2016 2015 Cost of goods sold $ 95 $ 47 Research and development 117 147 Selling, general and administrative 201 416 Total $ 413 $ 610 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. No stock options were granted under the 2006 Equity Incentive Plan for the three months ended March 31, 2016 and 2015. 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 Months Ended 2016 2015 Expected volatility 98 % 75 % Risk-free interest rate 0.42 % 0.08 % Expected term (in years) 0.5 0.5 Expected dividend rate — % — % Stock Option and Equity Incentive Plans The following table summarizes the option activity for the three month period ended March 31, 2016 Options Outstanding Weighted- Average Exercise Price Weighted- Average Remaining Contractual Term Aggregate Intrinsic Value (In thousands) (In years) (In thousands) Balance at December 31, 2015 790 $ 14.08 7.4 $ — Options granted — $ — $ — Options exercised — $ — $ — Options cancelled (90 ) $ 14.92 $ — Balance at March 31, 2016 700 $ 13.97 7.3 $ — Exercisable as of March 31, 2016 357 $ 18.47 6.2 $ — Exercisable as of March 31, 2016 and expected to vest thereafter (1) 587 $ 14.47 7.1 $ — (1) Options expected to vest reflect an estimated forfeiture rate The total fair value of options that vested in the three months ended March 31, 2016 and 2015 was $0.2 million and $0.4 million , respectively. As of March 31, 2016, total unamortized stock-based compensation related to unvested stock options was $1.1 million , with a weighted-average remaining recognition period of 2.10 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 March 31, 2016 and 2015 was $0 and immaterial, respectively. Restricted stock unit activity for three month period ended March 31, 2016 is as follows: Restricted Stock Units Outstanding Weighted- Average Fair Value When Awarded (In thousands) Balance at December 31, 2015 485 $ 9.57 Awarded 845 $ 3.24 Vested (95 ) $ 9.29 Cancelled (208 ) $ 9.29 Balance at March 31, 2016 1,027 $ 4.46 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 March 31, 2016 and 2015 was $0.1 million and $0.1 million , respectively. As of March 31, 2016, total unamortized stock-based compensation related to unvested restricted stock units was $2.3 million , with a weighted-average remaining recognition period of 1.92 years. For the three months ended March 31, 2016, the Company has granted 272,775 PSUs to executives and employees in-lieu of cash bonuses with vesting based on the Company’s 2016 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 2016 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 $1.0 million . For PSUs, the Company recognizes stock-based compensation expense based on the probable outcome that the performance condition will be achieved. For the three months ended March 31, 2016, the Company recognized stock-based compensation related to PSUs of $80,000 . As of March 31, 2016, 139,159 shares of common stock were available for grant under the 2006 Equity Incentive Plan.

Income Taxes

Income Taxes	3 Months Ended
	Mar. 31, 2016
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes The Company’s tax provision for the three months ended March 31, 2016 and 2015 was $8,000 and $9,000 , respectively, which relates to foreign taxes. The Company currently has uncertain tax positions in the amount of $2.1 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	3 Months Ended
	Mar. 31, 2016
Earnings Per Share [Abstract]
Net Loss Per Share	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. 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 March 31, 2016 2015 Net loss $ (9,672 ) $ (11,933 ) Cumulative dividend on Series A convertible preferred stock — (156 ) Net loss attributable to common stockholders $ (9,672 ) $ (12,089 ) Weighted average shares used to compute basic and diluted net loss per share 18,947 13,328 Basic and diluted net loss per share $ (0.51 ) $ (0.91 ) 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): March 31, 2016 2015 Stock options outstanding 700 848 Unvested restricted stock units 1,027 284 Estimated shares issuable under the employee stock purchase plan 6 41 Warrants 6,079 6,312

Accumulated Other Comprehensive

Accumulated Other Comprehensive Income (Loss)	3 Months Ended
	Mar. 31, 2016
Equity [Abstract]
Accumulated Other Comprehensive Income (Loss)	Accumulated Other Comprehensive Income (Loss) The component of accumulated other comprehensive income (loss), net of tax for the three months ended March 31, 2016 and 2015 are as follows (in thousands): Unrealized Gain (Losses) on Securities Foreign Currency Translation Gain (Losses) Total Three Months Ended March 31, 2016: Beginning balance $ (72 ) $ (138 ) $ (210 ) Net current-period other comprehensive gain 72 16 88 Ending balance $ — $ (122 ) $ (122 ) Three Months Ended March 31, 2015: Beginning balance $ 392 $ (87 ) $ 305 Net current-period other comprehensive loss (102 ) (64 ) (166 ) Ending balance $ 290 $ (151 ) $ 139

Segment Information

Segment Information	3 Months Ended
	Mar. 31, 2016
Segment Reporting [Abstract]
Segment Information	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 March 31, 2016 2015 Revenues: United States $ 1,593 $ 1,962 International 1,449 3,832 Total $ 3,042 $ 5,794 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 March 31, 2016 at 52% and 14% , respectively. Revenues in the United States, China, Saudi Arabia and Italy each accounted for 10% or more of total revenues for the three months ended March 31, 2015 at 34% , 22% , 14% and 10% , respectively. The majority of the Company’s long-lived assets are located in the United States.

Subsequent Events

Subsequent Events	3 Months Ended
	Mar. 31, 2016
Subsequent Events [Abstract]
Subsequent Events	Subsequent Events As disclosed in the Company’s Current Report on Form 8-K filed with the SEC on April 20, 2016, the Company, Auris Surgical Robotics, Inc. ("Parent"), and Pineco Acquisition Corp., a wholly owned subsidiary of Parent ("Merger Sub"), entered into an Agreement and Plan of Merger (the "Merger Agreement"), pursuant to which, subject to satisfaction or waiver of the conditions therein, Merger Sub will merge with and into the Company (the "Merger"), with the Company surviving the Merger as a wholly owned subsidiary of Parent. Subject to the terms of the Merger Agreement, which has been unanimously approved by the board of directors of the Company, at the effective time of the Merger (the "Effective Time"), each share of Company common stock issued and outstanding immediately prior to the Effective Time (other than shares owned by Parent or any of its subsidiaries, shares held by the Company as treasury stock, and shares held by stockholders who have perfected their statutory rights of appraisal under Section 262 of the Delaware General Corporation Law) will be converted into the right to receive $4.00 in cash, without interest (the "Merger Consideration"). Immediately prior to the Effective Time, each outstanding option to purchase shares of Company common stock granted under a Company stock plan will be cancelled for no consideration. Additionally, immediately prior to the Effective Time, each outstanding award of restricted stock units with respect to shares of Company common stock (each, an "RSU Award") granted pursuant to a Company stock plan will be fully vested and cancelled and, in exchange therefor, each holder of any such cancelled RSU Award will be entitled to receive, in consideration of the cancellation of such RSU Award and in settlement therefor, a payment in cash of an amount equal to the product of (i) the Merger Consideration multiplied by (ii) the number of restricted stock units subject to such RSU Award, without interest (less any required tax withholdings). To the extent an RSU Award is subject to performance conditions, the number of restricted stock units that vest will be determined (A) for RSU Awards with a performance period that by its terms has ended prior to the Effective Time, based on actual performance through the end of such performance period, and (B) for RSU Awards with a performance period that by its terms has not ended prior to the Effective Time, by deeming such performance conditions to have been satisfied at 100% of the target levels specified in the applicable equity plans and award agreements. The Merger Agreement contains customary representations, warranties and covenants of the Company, Parent and Merger Sub, including, among others, covenants by the Company to conduct its business in the ordinary course during the interim period between execution of the Merger Agreement and consummation of the Merger and not to engage in certain kinds of transactions during such period. The Company has also agreed, subject to certain exceptions, not to enter into discussions concerning, or provide confidential information in connection with, any alternative transaction. Parent has agreed, promptly following the Effective Time, to pay or cause to be paid in full all of the Company’s obligations under the loan and security agreement with White Oak. In addition, each of the parties has agreed to use its reasonable best efforts to cause the Merger to be consummated. The board of directors of the Company has agreed to hold a stockholder meeting to consider and vote upon the adoption of the Merger Agreement. The Merger is subject to satisfaction of the conditions set forth in the Merger Agreement, including the approval by the stockholders of the Company; that none of the lender parties to the loan and security agreement with White Oak shall have exercised any of the rights and remedies available to any of them under either the loan and security agreement with White Oak or the Forbearance Agreement upon the occurrence and during the continuance of an Event of Default (as defined in the loan and security agreement with White Oak) or as a result of the Company breaching or being in default of any of the covenants, agreements or other provisions of the Forbearance Agreement, other than delivering notice of such Event of Default under the loan and security agreement with White Oak or such breach or default under the Forbearance Agreement; that none of the Rollover Stockholders (as defined below) shall have invalidated or terminated the stock purchase agreement with Parent (as described below); and other customary closing conditions. The obligation of each party to consummate the Merger is also conditioned upon the other party’s representations and warranties being true and correct (subject to certain materiality exceptions), and the other party having performed in all material respects its obligations under the Merger Agreement, and the obligation of Parent to consummate the Merger is conditioned upon the Company not having suffered a material adverse effect. The Merger Agreement contains certain termination rights for both the Company and Parent, and provides that, upon termination of the Merger Agreement under specified circumstances, the Company may be required to pay Parent a termination fee of $3.325 million , including if the Company were to terminate the Merger Agreement in order to accept an unsolicited superior acquisition proposal. Concurrently with the Company, Parent and Merger Sub entering into the Merger Agreement, holders of approximately 65.4% of the outstanding shares of Company common stock, including all of the directors and executive officers of the Company, Larry Feinberg and certain affiliated entities, Jack Schuler and certain affiliated entities, and an affiliated entity of Lawrence T. Kennedy, Jr., entered into voting agreements in favor of Parent and the Company (collectively, the "Voting Agreements") pursuant to which they agreed, among other things, to vote their shares of Company common stock in favor of the adoption of the Merger Agreement, against any alternative acquisition proposal, and against any reorganization, recapitalization, dissolution, liquidation or winding-up of the Company or any other extraordinary transaction involving the Company other than the Merger. The Voting Agreements terminate upon the termination of the Merger Agreement in accordance with its terms, including if the Company were to terminate the Merger Agreement in order to accept an unsolicited superior acquisition proposal. Additionally, concurrently with entering into the Merger Agreement, certain Company stockholders owning approximately 64.6% of the outstanding shares of the Company common stock, including Larry Feinberg and certain affiliated entities, Jack Schuler and certain affiliated entities and an affiliated entity of Lawrence T. Kennedy, Jr. (the "Rollover Stockholders"), executed and delivered a stock purchase agreement with Parent whereby each Rollover Stockholder has unconditionally agreed to acquire shares of preferred stock of Parent immediately following the Effective Time on the terms set forth therein, in exchange for an investment of approximately $49 million (representing the aggregate amount of consideration payable to the Rollover Stockholders in the Merger). Further, concurrently with the Company entering into the Merger Agreement, the Company and the lender parties under the loan and security agreement with White Oak entered into the Forbearance Agreement. The "going concern" qualification in the opinion and report for this report constitutes an Event of Default (as defined in the loan and security agreement with White Oak). Pursuant to the Forbearance Agreement, the lender parties have agreed not to pursue any remedies related to such "going concern" default during the period from the date of the Forbearance Agreement through the earlier of (x) August 17, 2016 and (y) the date when the forbearance period under the Forbearance Agreement is otherwise terminated (such period, the "Forbearance Period"). In addition, the Company expects that it will fail to comply with the minimum liquidity required by Section 6.10(a) of the loan and security agreement with White Oak at some point during the Forbearance Period. The Company’s failure to comply with such minimum liquidity requirement would constitute an Event of Default under the loan and security agreement with White Oak. Under the Forbearance Agreement, the Lender Parties have agreed not to pursue any remedies related to such minimum liquidity default during the Forbearance Period. The Forbearance Agreement provides that the Company shall, as promptly as reasonably practicable and in any event at or before the expiration of the Forbearance Period, (x) consummate the Merger and (y) pay and satisfy all obligations owed by the Company to the Lender Parties in full in cash. The failure to consummate the Merger during the Forbearance Period would constitute a default under the Forbearance Agreement. Pursuant to the Forbearance Agreement, the Company has prepaid $5.0 million of the outstanding principal amount of the term loan under the loan and security agreement with White Oak. For additional details regarding the terms and conditions of the Merger Agreement, refer to the Merger Agreement and other documentation filed as exhibits to the Current Report on Form 8-K filed with the SEC on April 20, 2016. Additional information regarding the proposed transaction, including risks associated with the proposed transaction, will be contained in a definitive proxy statement to be filed by the Company with the SEC. No assurance can be given that the Merger will be completed.

Summary of Significant Accoun26

Summary of Significant Accounting Policies (Policies)	3 Months Ended
	Mar. 31, 2016
Accounting Policies [Abstract]
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, 2015 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, 2015 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 preferred stock, and deferred tax assets, among others. Actual results may materially 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 Magellan Transport System (“MTS”) and associated catheters and drapes, 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 . Persuasive evidence of an arrangement for sales of systems is generally determined by a sales contract signed and dated by both the customer and the Company, including approved terms and conditions, or the receipt of an approved purchase order. Evidence of an arrangement for the sale of disposable products is determined through an approved purchase order from the customer. Evidence of an arrangement for the sale of customer service is determined through either a signed sales contract or an approved purchase order from the customer. Sales to customers are generally not subject to any performance, cancellation, termination or return rights. • Delivery . • Systems and Disposable Products. Typically, ownership of systems, catheters and other disposable products passes to customers upon shipment, at which time delivery is deemed to be complete. • Customer Service Revenue. The Company recognizes customer service revenue from the sale of its PCS contracts which include planned and corrective maintenance services, software updates, bug fixes, and warranties. Revenue from customer services, whether sold individually or as a separate unit of accounting in a multi-element arrangement, is deferred and amortized over the service period, which is typically one year. • Multiple-element Arrangements. It is common for the sale of Sensei and Magellan Systems to include multiple elements which have standalone value and qualify as separate units of accounting. These elements commonly include the sale of the system and a product maintenance plan, in addition to installation of the system and initial training. Less commonly, these elements may include the sale of certain disposable products or other elements. For multiple-element arrangements revenue is allocated to each element based on their relative selling prices. Relative selling prices are based first on vendor specified objective evidence (“VSOE”), then on third-party evidence of selling price (“TPE”) when VSOE does not exist, and then on management’s best estimate of the selling price (“ESP”) when VSOE and TPE do not exist. Because the Company has neither VSOE nor TPE for its system, the allocation of revenue is based on ESP for the systems sold. The objective of ESP is to determine the price at which the Company would transact a sale, had the product been sold on a stand-alone basis. The Company determines ESP for its systems by considering multiple factors, including, but not limited to, features and functionality of the system, geographies, type of customer, and market conditions. The Company regularly reviews ESP and maintains internal controls over the establishment and updates of these estimates. • Sales Price Fixed or Determinable. The Company assesses whether the sales price is fixed or determinable at the time of the transaction. Sales prices are documented in the executed sales contract or purchase order received prior to shipment. The Company’s standard terms do not allow for contingencies, such as trial or evaluation periods, refundable orders, or extended payment terms or payments contingent upon the customer obtaining financing or other contingencies which would impact the customer’s obligation. In situations where these or other contingencies are included, all related revenue is deferred until the contingency is resolved. The Company also ships under a limited commercial evaluation program to allow certain strategic accounts to install and utilize systems for a limited trial period of three to six months (or longer, in certain limited circumstances) while the purchase opportunity is being evaluated by the hospital. Systems under this program remain the property of the Company and are recorded in inventory and a sale only occurs upon the issuance of a purchase order from the customer. • Collectability. The Company assesses whether collection is reasonably assured based on a number of factors, including the customer’s past transaction history and credit worthiness. If collection of the sales price is not deemed reasonably assured, the revenue is deferred and recognized at the time collection becomes reasonably assured, which is usually upon receipt of cash. The Company’s sales contracts generally do not allow the customer the right of cancellation, refund or return, except as provided under the Company’s standard warranty. If such rights were allowed, all related revenues would be deferred until such rights expired. 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 and accounts receivable. Cash and cash equivalents are deposited in demand and money market accounts at one financial institution. 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 30% of the Company’s net accounts receivable at March 31, 2016. The Company had four customers who constituted 19% , 18% , 12% and 12% , respectively, of the Company’s net accounts receivable at December 31, 2015. As of March 31, 2016, the Company has not experienced any significant losses on its accounts receivable. Two customers accounted for 15% and 10% , respectively, of total revenues during the three months ended March 31, 2016. Three customers accounted for 22% , 13% and 10% , respectively, of total revenues during the three months ended March 31, 2015. 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 ® Control Catheter in Europe in May 2007. The Company received FDA clearance for the marketing of its Sensei System and Artisan catheters for manipulation, positioning and control of certain mapping catheters during electrophysiology (“EP”) procedures in the United States in May 2007. Magellan: At the current time the Company has received clearance and approval for the Magellan System and the Magellan 6Fr, 9Fr, 10Fr and eKit 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 and the Magellan eKit in February 2016. 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.
Stock-based Compensation	Stock-based Compensation The Company accounts for share-based compensation plan in accordance with the provisions of The Financial Accounting Standards Board (“FASB”) Accounting Standards Codification ("ASC”) No. 718-10-30, Stock Compensation Initial Measurement, which requires the measurement and recognition of compensation expense for all stock-based awards made to employees and directors including employee stock options, restricted stock units (“RSUs”), performance stock units (“PSUs”) and employee stock purchases under our Employee Stock Purchase Plan (“ESPP”) based on estimated fair values and recognizes stock-based compensation expense, net of estimated forfeitures, on a ratable basis over the requisite service period. The Company estimates the fair value of stock options granted using the Black-Scholes-Merton (“BSM”) option valuation model. The BSM option valuation model determines the fair value of stock-based awards using the following assumptions • Expected Volatility . The Company’s estimate of volatility is based on the historical volatilities of its stock price. • Expected Term . The Company estimates the expected term based on its historical settlement experience related to vesting and contractual terms while giving consideration to awards that have life cycles less than the contractual terms and vesting schedules in accordance with authoritative guidance. • Risk-Free Interest Rate. The risk-free interest rate that the Company uses in the BSM option valuation model is the implied yield in effect at the time of option grant based on U.S. Treasury zero-coupon issues with a remaining term equivalent to the expected term of the option grants. For ESPP grants, the Company uses the 6-month Constant Maturity Treasury rate. • Dividend Yield. The Company has never paid any cash dividends on its common stock and it does not anticipate paying any cash dividends in the foreseeable future. Consequently, the Company uses a dividend yield of zero in the BSM option valuation model. 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 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), which supersedes the revenue recognition requirements in ASC 605, Revenue Recognition . ASU 2014-09 is based on the principle that revenue is recognized to depict the transfer of goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. ASU 2014-09 also requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments and assets recognized from costs incurred to obtain or fulfill a contract. In July 2015, the FASB deferred the effective date of this ASU from December 15, 2016 to December 15, 2017, with early adoption permitted before annual periods beginning after December 15, 2016. The principles may be applied retrospectively to each prior period presented or retrospectively with the cumulative effect recognized as of the date of initial application. The Company is currently assessing the impact of the adoption of ASU 2014-09 on its condensed consolidated financial statements. 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. The ASU provides guidance on determining when and how to disclose going-concern uncertainties in the financial statements. The new standard requires management to perform interim and annual assessments of an entity’s ability to continue as a going concern within one year of the date the financial statements are issued. An entity must provide certain disclosures if “conditions or events raise substantial doubt about the entity’s ability to continue as a going concern.” The ASU applies to all entities and is effective for annual periods ending after December 15, 2016, and interim periods thereafter, with early adoption permitted. The Company has been assessing the going concern issue since 2010 on an interim and annual basis and will continue to assess whether the financial conditions based on this new guidance have an impact on the Company’s condensed consolidated financial statements or footnotes. In April 2015, the FASB issued ASU 2015-03, Interest-Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Cost , which changes the presentation of debt issuance costs in financial statements. Under the ASU, an entity presents costs in the balance sheet as a direct deduction from the related debt liability rather than as an asset. Amortization of the costs is reported as interest expense. Under current guidance, an entity reports debt issuance costs in the balance sheet as deferred charges (i.e. as an asset). For public companies, the ASU is effective for fiscal years beginning after December 15, 2015, and interim periods within those fiscal years, with early adoption permitted. Entities would apply the new guidance retrospectively to all prior periods. The Company adopted the ASU 2015-03 on its condensed consolidated financial statements beginning in the quarter ended March 31, 2016 and the impact was $0.4 million deduction to its short-term debt presentation on its condensed consolidated balance sheets. In July 2015, the FASB issued ASU 2015-11, Simplifying the Measurement of Inventory . Under this ASU, inventory will be measured at the “lower of cost and net realizable value” and options that currently exist for “market value” will be eliminated. The ASU defines net realizable value as the “estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation.” No other changes were made to the current guidance on inventory measurement. ASU 2015-11 is effective for interim and annual periods beginning after December 15, 2016. Early adoption is permitted and should be applied prospectively. The Company does not expect the adoption of this accounting standard update to impact its condensed consolidated financial statements. In February 2016, the FASB issued ASU 2016-02, Leases , which require a lessee to recognize lease assets and liabilities on the balance sheet for all arrangements with terms longer than 12 months. Lessor accounting remains largely consistent with existing U.S. GAAP. The new standard takes effect in 2019 for public business entities and 2020 for all other entities. The Company is currently assessing the impact of the adoption of ASU 2016-02 on its condensed consolidated financial statements. In March 2016, the FASB issued ASU 2016-09, Compensation-Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting . ASU 2016-09 requires among other things that all excess tax benefits and tax deficiencies (including tax benefits of dividends on share-based payment awards) to be recognized as income tax expense or benefit in the income statement. The tax effects of exercised or vested awards should be treated as discrete items in the reporting period in which they occur. An entity also should recognize excess tax benefits, and assess the need for a valuation allowance, regardless of whether the benefit reduces taxes payable in the current period. The ASU also requires excess tax benefits to be classified along with other income tax cash flows as an operating activity in the statement of cash flows. This new guidance is effective for annual reporting periods beginning after December 15, 2016, including interim periods within those fiscal years. Early adoption is permitted. The Company is currently assessing the impact of the adoption of ASU 2016-09 on its condensed consolidated financial statements.

Fair Value of Assets and Liab27

Fair Value of Assets and Liabilities (Tables)	3 Months Ended
	Mar. 31, 2016
Fair Value Disclosures [Abstract]
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 Amortized Cost Gross Unrealized Losses Fair Value Cash and cash Equivalents Short-term Investments Restricted Cash March 31, 2016: Cash $ 1,029 $ — $ 1,029 $ 1,029 $ — $ — Money market funds 17,573 — 17,573 11,475 — 6,098 Corporate equity securities — — — — — — $ 18,602 $ — $ 18,602 $ 12,504 $ — $ 6,098 December 31, 2015: Cash $ 1,408 $ — $ 1,408 $ 1,408 $ — $ — Money market funds 25,080 — 25,080 18,967 — 6,113 Corporate equity securities 1,572 (71 ) 1,501 — 1,501 — $ 28,060 $ (71 ) $ 27,989 $ 20,375 $ 1,501 $ 6,113
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 Active Markets for Identical Assets (Level 1 Inputs) Significant other Observable Inputs (Level 2 Inputs) Unobservable Inputs (Level 3 Inputs) Total March 31, 2016: Money market funds $ 17,573 $ — $ — $ 17,573 Corporate equity securities — — — — $ 17,573 $ — $ — $ 17,573 December 31, 2015: Money market funds $ 25,080 $ — $ — $ 25,080 Corporate equity securities 1,501 1,501 $ 26,581 $ — $ — $ 26,581

Balance Sheet Components (Table

Balance Sheet Components (Tables)	3 Months Ended
	Mar. 31, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Components of inventories, Net	Inventories (in thousands) March 31, 2016 December 31, 2015 Raw materials $ 3,662 $ 2,613 Work in process 3,354 3,575 Finished goods 2,587 2,471 Total Inventories $ 9,603 $ 8,659
Property and equipment, net	Property and equipment, net (in thousands) March 31, 2016 December 31, 2015 Furniture and leasehold improvements $ 11,329 $ 11,329 Laboratory equipment 12,466 12,158 Computer equipment and software 2,955 2,956 26,750 26,443 Less: Accumulated depreciation and amortization (24,351 ) (24,118 ) Property and equipment, net $ 2,399 $ 2,325
Accrued liabilities	Accrued liabilities (in thousands) March 31, 2016 December 31, 2015 Accrued salaries, commission, bonus and benefits $ 1,242 $ 1,094 Accrued restructuring 921 1,581 Accrued legal and other professional fees 645 228 Tax accruals 359 333 Accrued royalties 278 330 Clinical related accruals 178 60 Other accrued expenses 388 487 Accrued liabilities $ 4,011 $ 4,113

Commitments and Contingencies (

Commitments and Contingencies (Tables)	3 Months Ended
	Mar. 31, 2016
Commitments and Contingencies Disclosure [Abstract]
Future Minimum Payments under Operating Leases	As of March 31, 2016, future minimum payments under the lease and rental are as follows (in thousands): Years Ending December 31, Future Minimum Lease Payments 2016 (remainder of year) $ 1,153 2017 297 2018 610 2019 628 2020 647 Thereafter 4,443 Total $ 7,778

Short-term Debt (Tables)

Short-term Debt (Tables)	3 Months Ended
	Mar. 31, 2016
Debt Disclosure [Abstract]
Future Annual Payments Due on Amounts Outstanding	Future minimum payments due on the debt as of March 31, 2016 are as follows (in thousands): Years Ending December 31, Total remaining payments 43,277 Less: Amount representing interest (9,047 ) Less: Debt discount (406 ) 33,824 Less: Current portion of long-term debt (33,824 ) Long-term debt, net of current portion $ —

Restructuring (Tables)

Restructuring (Tables)	3 Months Ended
	Mar. 31, 2016
Restructuring and Related Activities [Abstract]
Restructuring and Related Costs	The table below presents the restructuring activities for the quarter ended March 31, 2016 (in thousands): Employee Severance and Termination Benefits Operating Lease Cancellation Exit Cost Total Accrued restructuring balance as of January 1, 2016 $ 881 $ 500 $ 200 $ 1,581 Additional accruals — — — — Cash payments (79 ) (500 ) (81 ) (660 ) Accrued restructuring balance as of March 31, 2016 $ 802 $ — $ 119 $ 921

Stock-based Compensation (Table

Stock-based Compensation (Tables)	3 Months Ended
	Mar. 31, 2016
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Total Stock-based Compensation	Total stock-based compensation expense consisted of the following (in thousands): Three Months Ended March 31, 2016 2015 Cost of goods sold $ 95 $ 47 Research and development 117 147 Selling, general and administrative 201 416 Total $ 413 $ 610
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 Months Ended 2016 2015 Expected volatility 98 % 75 % Risk-free interest rate 0.42 % 0.08 % Expected term (in years) 0.5 0.5 Expected dividend rate — % — %
Summary of Option Activity	The following table summarizes the option activity for the three month period ended March 31, 2016 Options Outstanding Weighted- Average Exercise Price Weighted- Average Remaining Contractual Term Aggregate Intrinsic Value (In thousands) (In years) (In thousands) Balance at December 31, 2015 790 $ 14.08 7.4 $ — Options granted — $ — $ — Options exercised — $ — $ — Options cancelled (90 ) $ 14.92 $ — Balance at March 31, 2016 700 $ 13.97 7.3 $ — Exercisable as of March 31, 2016 357 $ 18.47 6.2 $ — Exercisable as of March 31, 2016 and expected to vest thereafter (1) 587 $ 14.47 7.1 $ — (1) Options expected to vest reflect an estimated forfeiture rate
Summary of Restricted Stock Unit Activity	Restricted stock unit activity for three month period ended March 31, 2016 is as follows: Restricted Stock Units Outstanding Weighted- Average Fair Value When Awarded (In thousands) Balance at December 31, 2015 485 $ 9.57 Awarded 845 $ 3.24 Vested (95 ) $ 9.29 Cancelled (208 ) $ 9.29 Balance at March 31, 2016 1,027 $ 4.46

Net Loss Per Share (Tables)

Net Loss Per Share (Tables)	3 Months Ended
	Mar. 31, 2016
Earnings Per Share [Abstract]
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 March 31, 2016 2015 Net loss $ (9,672 ) $ (11,933 ) Cumulative dividend on Series A convertible preferred stock — (156 ) Net loss attributable to common stockholders $ (9,672 ) $ (12,089 ) Weighted average shares used to compute basic and diluted net loss per share 18,947 13,328 Basic and diluted net loss per share $ (0.51 ) $ (0.91 )
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): March 31, 2016 2015 Stock options outstanding 700 848 Unvested restricted stock units 1,027 284 Estimated shares issuable under the employee stock purchase plan 6 41 Warrants 6,079 6,312

Accumulated Other Comprehensi34

Accumulated Other Comprehensive Income (Loss) (Tables)	3 Months Ended
	Mar. 31, 2016
Equity [Abstract]
Component of Accumulated Other Comprehensive Income (Loss), Net of Tax	The component of accumulated other comprehensive income (loss), net of tax for the three months ended March 31, 2016 and 2015 are as follows (in thousands): Unrealized Gain (Losses) on Securities Foreign Currency Translation Gain (Losses) Total Three Months Ended March 31, 2016: Beginning balance $ (72 ) $ (138 ) $ (210 ) Net current-period other comprehensive gain 72 16 88 Ending balance $ — $ (122 ) $ (122 ) Three Months Ended March 31, 2015: Beginning balance $ 392 $ (87 ) $ 305 Net current-period other comprehensive loss (102 ) (64 ) (166 ) Ending balance $ 290 $ (151 ) $ 139

Segment Information (Tables)

Segment Information (Tables)	3 Months Ended
	Mar. 31, 2016
Segment Reporting [Abstract]
Information Regarding Total Revenue	Information regarding total revenue is as follows (in thousands): Three Months Ended March 31, 2016 2015 Revenues: United States $ 1,593 $ 1,962 International 1,449 3,832 Total $ 3,042 $ 5,794

The Company - Additional Inform

The Company - Additional Information (Detail) - USD ($)	Apr. 21, 2016	Apr. 20, 2016	Apr. 19, 2016	Mar. 31, 2016	Mar. 31, 2015	Dec. 31, 2015	Aug. 23, 2013
Description of Business [Line Items]
Accumulated deficit				$ 463,601,000		$ 453,929,000
Working capital				(16,300,000)
Payment of a portion of short-term debt				1,215,000	$ 0
Cash, cash equivalents, short-term investments and restricted cash				18,600,000
Subsequent Event
Description of Business [Line Items]
Ownership percentage of outstanding common stock by Rollover Stockholders		64.60%
Subsequent Event | Scenario, Forecast
Description of Business [Line Items]
Amount of aggregate investment by Rollover Stockholders		$ 49,000,000
Subsequent Event | Scenario, Forecast | Merger with Auris Surgical Robotics, Inc
Description of Business [Line Items]
Acquisition price per share (in dollars per share)		$ 4
White Oak Loan Agreement
Description of Business [Line Items]
Minimum liquidity requirement amount							$ 15,000,000
White Oak Loan Agreement
Description of Business [Line Items]
Minimum liquidity requirement amount				15,000,000
Payment of a portion of short-term debt				1,200,000
White Oak Loan Agreement | Subsequent Event
Description of Business [Line Items]
Non-refundable transaction fee			$ 150,000
Repayments of secured debt	$ 5,000,000	$ 5,000,000
Cash, Cash Equivalents and Investments | White Oak Loan Agreement
Description of Business [Line Items]
Minimum liquidity requirement amount							13,000,000
Cash, Cash Equivalents and Investments | White Oak Loan Agreement
Description of Business [Line Items]
Minimum liquidity requirement amount				13,000,000
Accounts Receivable | White Oak Loan Agreement
Description of Business [Line Items]
Minimum liquidity requirement amount							$ 2,000,000
Accounts Receivable | White Oak Loan Agreement
Description of Business [Line Items]
Minimum liquidity requirement amount				$ 2,000,000
Percent of eligible accounts receivable				65.00%			65.00%

Summary of Significant Accoun37

Summary of Significant Accounting Policies - Additional Information (Detail) $ in Millions	Sep. 22, 2015shares	May. 12, 2015	Mar. 31, 2016USD ($)EntityCustomershares	Mar. 31, 2015Customer	Dec. 31, 2015Customershares	Sep. 21, 2015shares
Summary Of Significant Accounting Policies [Line Items]
Proposed reverse stock split conversion ratio 1		0.25
Proposed reverse stock split conversion ratio 2		0.1667
Proposed reverse stock split conversion ratio 3		0.125
Reverse stock split conversion ratio	0.10	0.10
Common stock, shares authorized | shares	30,000,000		30,000,000		30,000,000	300,000,000
Deferred and amortized service period			1 year
Number of financial institutions in which cash deposited | Entity			1
Debt issuance costs deducted from short-term debt | $			$ 0.4
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			30.00%		19.00%
Customer concentration risk | Accounts Receivable | Customer 2
Summary Of Significant Accounting Policies [Line Items]
Concentration risk, percentage					18.00%
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			2	3
Customer concentration risk | Sales | Customer 1
Summary Of Significant Accounting Policies [Line Items]
Concentration risk, percentage			15.00%	22.00%
Customer concentration risk | Sales | Customer 2
Summary Of Significant Accounting Policies [Line Items]
Concentration risk, percentage			10.00%	13.00%
Customer concentration risk | Sales | Customer 3
Summary Of Significant Accounting Policies [Line Items]
Concentration risk, percentage				10.00%

Fair Value of Assets and Liab38

Fair Value of Assets and Liabilities Amortized Cost and Fair Value of Assets, with Gross Unrealized Gains and Losses (Detail) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015	Mar. 31, 2015	Dec. 31, 2014
Cash Cash Equivalents And Short Term Investments [Line Items]
Amortized Cost	$ 18,602	$ 28,060
Gross unrealized losses	0	(71)
Fair Value	18,602	27,989
Cash and cash equivalents	12,504	20,375	$ 51,400	$ 24,528
Short-term investments	0	1,501
Restricted cash	6,098	6,113
Cash
Cash Cash Equivalents And Short Term Investments [Line Items]
Amortized Cost	1,029	1,408
Gross unrealized losses	0	0
Fair Value	1,029	1,408
Cash and cash equivalents	1,029	1,408
Short-term investments	0	0
Restricted cash	0	0
Money Market Funds
Cash Cash Equivalents And Short Term Investments [Line Items]
Amortized Cost	17,573	25,080
Gross unrealized losses	0	0
Fair Value	17,573	25,080
Cash and cash equivalents	11,475	18,967
Short-term investments	0	0
Restricted cash	6,098	6,113
Corporate Equity Securities
Cash Cash Equivalents And Short Term Investments [Line Items]
Amortized Cost	0	1,572
Gross unrealized losses	0	(71)
Fair Value	0	1,501
Cash and cash equivalents	0	0
Short-term investments	0	1,501
Restricted cash	$ 0	$ 0

Fair Value of Assets and Liab39

Fair Value of Assets and Liabilities Fair Value Hierarchy of Company's Assets (Detail) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets	$ 17,573	$ 26,581
Money Market Funds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets	17,573	25,080
Corporate Equity Securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets	0	1,501
Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets	17,573	26,581
Level 1 | Money Market Funds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets	17,573	25,080
Level 1 | Corporate Equity Securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets	0	1,501
Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets	0	0
Level 2 | Money Market Funds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets	0	0
Level 2 | Corporate Equity Securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets	0
Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets	0	0
Level 3 | Money Market Funds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets	0	$ 0
Level 3 | Corporate Equity Securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets	$ 0

Fair Value of Assets and Liab40

Fair Value of Assets and Liabilities - Additional Information (Detail) $ / shares in Units, $ in Thousands	May. 12, 2015USD ($)$ / shares	Mar. 11, 2015USD ($)day$ / sharesshares	Mar. 31, 2016USD ($)$ / shares	Mar. 31, 2015USD ($)	Dec. 31, 2015USD ($)	Dec. 31, 2014USD ($)	Jul. 30, 2013shares
Fair Value, Measurement Inputs, Disclosure [Line Items]
Payment of a portion of short-term debt			$ 1,215	$ 0
Common Stock issuable upon exercise of warrants | shares		5,384,600					3,414,634
Warrants exercise period		2 years
Warrants exercise price (in USD per share) | $ / shares	$ 9.75	$ 9.75	$ 9.75
Premium on per share trailing weighted average share price		50.00%
Number trading days | day		10
Fair value of warrants upon issuance		$ 14,800
Warrant expense			$ 0	$ 1,676		$ 2,900
Warrant liability, reclassification to additional paid-in capital	$ 17,800		17,800
Long term debt, fair value			35,700
Other income (expense)
Fair Value, Measurement Inputs, Disclosure [Line Items]
Warrant expense			1,700		$ 3,000
White Oak Loan Agreement
Fair Value, Measurement Inputs, Disclosure [Line Items]
Payment of a portion of short-term debt			$ 1,200

Balance Sheet Components - Comp

Balance Sheet Components - Components of Inventories, Net (Detail) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Inventory Disclosure [Abstract]
Raw materials	$ 3,662	$ 2,613
Work in process	3,354	3,575
Finished goods	2,587	2,471
Total Inventories	$ 9,603	$ 8,659

Balance Sheet Components - Prop

Balance Sheet Components - Property and Equipment, Net (Detail) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 26,750	$ 26,443
Less: Accumulated depreciation and amortization	(24,351)	(24,118)
Property and equipment, net	2,399	2,325
Furniture and leasehold improvements
Property, Plant and Equipment [Line Items]
Property and equipment, gross	11,329	11,329
Laboratory equipment
Property, Plant and Equipment [Line Items]
Property and equipment, gross	12,466	12,158
Computer equipment and software
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 2,955	$ 2,956

Balance Sheet Components - Co43

Balance Sheet Components - Components of Accrued Liabilities (Detail) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Payables and Accruals [Abstract]
Accrued salaries, commission, bonus and benefits	$ 1,242	$ 1,094
Accrued restructuring	921	1,581
Accrued legal and other professional fees	645	228
Tax accruals	359	333
Accrued royalties	278	330
Clinical related accruals	178	60
Other accrued expenses	388	487
Total	$ 4,011	$ 4,113

Agreements with Intuitive Sur44

Agreements with Intuitive Surgical - Additional Information (Detail) - USD ($) $ in Millions	Jul. 30, 2013	Oct. 31, 2012	Mar. 31, 2016	Mar. 31, 2015	Dec. 31, 2012
Licenses Agreements [Line Items]
Proceeds from licensing fees		$ 20			$ 20
Stock purchase agreement to sell shares	2,845,528	529,101
Common stock agreement purchase price		$ 10
Agreement amendment period					3 years
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	$ 0.1
Intuitive Surgical Inc | Minimum
Licenses Agreements [Line Items]
Royalty obligations per year			$ 0.2

Agreements with Philips - Addit

Agreements with Philips - Additional Information (Detail) - USD ($)	1 Months Ended		3 Months Ended
	Aug. 31, 2015	Feb. 28, 2011	Mar. 31, 2015	Mar. 31, 2016
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		66.70%
Potential future payment based on royalty obligation under agreement		33.30%
FOSSL-related royalty obligations		between 2014 and 2020
Koninklijke Philips Electronics Nv
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Cost related to royalty obligations			$ 600,000
Koninklijke Philips Electronics Nv | Minimum
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Royalty obligations				$ 0
Amendment agreements
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Royalty obligations period		through October 2017
Percentage of reduction of all royalties owed or due between parties	(50.00%)
Percentage of reduction of royalty obligations based on sales	(50.00%)
Amendment agreements | Koninklijke Philips Electronics Nv
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Percentage of reduction of royalty obligations based on sales	(50.00%)

Commitments and Contingencies -

Commitments and Contingencies - Additional Information (Detail)	Dec. 15, 2015ft²	Mar. 31, 2016USD ($)	Mar. 31, 2015USD ($)
Other Commitments [Line Items]
Rent expense		$ 600,000	$ 600,000
California
Other Commitments [Line Items]
Operating lease expiration year		Jan. 31, 2020
Operating lease extended period		5 years
Operating lease, area rented | ft²	32,552
London, England | New Lease Arrangement
Other Commitments [Line Items]
Operating lease expiration year		Apr. 30, 2016
Mitsubishi
Other Commitments [Line Items]
Reduction royalty obligation		$ 55,000
Royalty obligation expiration Year		2,018
Cost related to royalty obligations		$ 100,000	$ 35,000
Mitsubishi | Minimum
Other Commitments [Line Items]
Royalty obligations per year		$ 100,000

Commitments and Contingencies F

Commitments and Contingencies Future Minimum Payments under Operating Leases (Detail) $ in Thousands	Mar. 31, 2016USD ($)
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract]
2016 (remainder of year)	$ 1,153
2,017	297
2,018	610
2,019	628
2,020	647
Thereafter	4,443
Total	$ 7,778

Commitments and Contingencies48

Commitments and Contingencies - Legal Proceedings (Detail) - Subsequent Event - Pending Litigation - lawsuit	May. 10, 2016	May. 06, 2016
California Actions
Loss Contingencies [Line Items]
Number of lawsuits filed		4
Delaware Action
Loss Contingencies [Line Items]
Number of entities named defendants that are the Company's stockholders	12
Number of individuals named defendants that allegedly control entities that are stockholders	2

Short-term Debt - Additional In

Short-term Debt - Additional Information (Detail)	Apr. 21, 2016USD ($)	Apr. 20, 2016USD ($)	Apr. 19, 2016USD ($)	Aug. 23, 2013USD ($)subsidiary	Mar. 31, 2016USD ($)	Mar. 31, 2015USD ($)
Debt Instrument [Line Items]
Payment of a portion of short-term debt					$ 1,215,000	$ 0
White Oak Loan Agreement
Debt Instrument [Line Items]
Number of subsidiaries providing guarantees | subsidiary				2
Minimum liquidity requirement amount				$ 15,000,000
White Oak Loan Agreement
Debt Instrument [Line Items]
Loan and security agreement				$ 33,000,000
Loan and security agreement, due date				Dec. 30, 2017
Debt issuance costs				$ 1,500,000
Administration and monitoring fee				$ 32,000
Amortization of debt issuance costs					100,000	$ 100,000
Minimum liquidity requirement amount					15,000,000
Payment of a portion of short-term debt					1,200,000
White Oak Loan Agreement | Subsequent Event
Debt Instrument [Line Items]
Non-refundable transaction fee			$ 150,000
Repayments of secured debt	$ 5,000,000	$ 5,000,000
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 | 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%
White Oak Loan Agreement | Payment to Lender Agent
Debt Instrument [Line Items]
Debt issuance costs				$ 700,000
White Oak Loan Agreement | Payment to Placement Agent
Debt Instrument [Line Items]
Debt issuance costs				300,000
Cash, Cash Equivalents and Investments | White Oak Loan Agreement
Debt Instrument [Line Items]
Minimum liquidity requirement amount				13,000,000
Cash, Cash Equivalents and Investments | White Oak Loan Agreement
Debt Instrument [Line Items]
Minimum liquidity requirement amount					13,000,000
Restricted Cash and Cash Equivalents | White Oak Loan Agreement
Debt Instrument [Line Items]
Minimum liquidity requirement amount				5,000,000
Accounts Receivable | White Oak Loan Agreement
Debt Instrument [Line Items]
Minimum liquidity requirement amount				$ 2,000,000
Accounts Receivable | White Oak Loan Agreement
Debt Instrument [Line Items]
Minimum liquidity requirement amount					$ 2,000,000
Percent of eligible accounts receivable				65.00%	65.00%

Short-term Debt Future Annual P

Short-term Debt Future Annual Payments Due on Amounts Outstanding (Detail) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Debt Disclosure [Abstract]
Total remaining payments	$ 43,277
Less: Amount representing interest	(9,047)
Less: Debt discount	(406)
Long-term debt, Net Total	33,824
Less: Current portion of long-term debt	(33,824)	$ (35,141)
Long-term debt, net of current portion	$ 0

Restructuring (Details)

Restructuring (Details) - November 2015 Restructuring Plan $ in Thousands	1 Months Ended	3 Months Ended
	Nov. 30, 2015USD ($)employee	Mar. 31, 2016USD ($)
Restructuring Cost and Reserve [Line Items]
Restructuring expense	$ 1,700	$ 0
Cash payments		660
Restructuring Expense
Restructuring Cost and Reserve [Line Items]
Restructuring expense	1,500
Cost of Revenues
Restructuring Cost and Reserve [Line Items]
Restructuring expense	$ 188
Operating Lease Cancellation
Restructuring Cost and Reserve [Line Items]
Restructuring expense		0
Cash payments		500
Exit Cost
Restructuring Cost and Reserve [Line Items]
Restructuring expense		0
Cash payments		$ 81
California
Restructuring Cost and Reserve [Line Items]
Number of positions eliminated | employee	35
International
Restructuring Cost and Reserve [Line Items]
Number of positions eliminated | employee	9
United Kingdom | Exit Cost
Restructuring Cost and Reserve [Line Items]
Restructuring expense	$ 200

Restructuring - Restructuring R

Restructuring - Restructuring Reserve (Details) - November 2015 Restructuring Plan - USD ($) $ in Thousands	1 Months Ended	3 Months Ended
	Nov. 30, 2015	Mar. 31, 2016
Restructuring Reserve [Roll Forward]
Accrued restructuring balance as of January 1, 2016		$ 1,581
Restructuring expense	$ 1,700	0
Cash payments		(660)
Accrued restructuring balance as of March 31, 2016		921
Employee Severance and Termination Benefits
Restructuring Reserve [Roll Forward]
Accrued restructuring balance as of January 1, 2016		881
Restructuring expense		0
Cash payments		(79)
Accrued restructuring balance as of March 31, 2016		802
Operating Lease Cancellation
Restructuring Reserve [Roll Forward]
Accrued restructuring balance as of January 1, 2016		500
Restructuring expense		0
Cash payments		(500)
Accrued restructuring balance as of March 31, 2016		0
Exit Cost
Restructuring Reserve [Roll Forward]
Accrued restructuring balance as of January 1, 2016		200
Restructuring expense		0
Cash payments		(81)
Accrued restructuring balance as of March 31, 2016		$ 119

Convertible Preferred Stock, 53

Convertible Preferred Stock, Common Stock and Warrants - Additional Information (Detail)

May. 12, 2015USD ($)$ / sharesshares

Mar. 11, 2015USD ($)$ / sharesshares

Jul. 30, 2014USD ($)tranche$ / sharesshares

Jul. 30, 2013USD ($)series$ / sharesshares

Aug. 31, 2014USD ($)

Mar. 31, 2013USD ($)

Oct. 31, 2012shares

Mar. 31, 2016USD ($)$ / shares

Jun. 30, 2015USD ($)

Mar. 31, 2015USD ($)

Mar. 31, 2014USD ($)shares

Dec. 31, 2015USD ($)

Dec. 31, 2014USD ($)

Stockholders Equity Note [Line Items]

Convertible preferred stock sold | shares

53,846

Convertible preferred stock price (in USD per share) | $ / shares

$ 650

Number of common shares issued for preferred shares converted | shares

5,509,492

Common stock at conversion price | $ / shares

$ 0.65

Preferred stock quarterly dividend

2.00%

Preferred stock increase in second quarter dividend

2.00%

Common Stock issuable upon exercise of warrants | shares

5,384,600

3,414,634

Class of Warrant or Rights, Number of Tranches | tranche

2

Warrants exercise period

2 years

Warrants exercise price (in USD per share) | $ / shares

$ 9.75

$ 9.75

$ 9.75

Premium on per share trailing weighted average share price

50.00%

Class of Warrant or Right, Number of Trading Days

10 days

Fair value of warrants upon issuance | $

$ 14,800,000

Warrant liability, reclassification to additional paid-in capital | $

$ 17,800,000

$ 17,800,000

Warrant exchange | $

0

$ 1,676,000

$ 2,900,000

Maximum Common Stock Offering Amount Under Equity Sale Agreement | $

$ 25,000,000

Capitalized offering cost | $

500,000

Common stock per warrant price (in USD per share) | $ / shares

$ 1.25

Class of Warrant or Right, Number of Series | series

3

Securities purchase agreement to sell shares | shares

2,845,528

529,101

Common stock per warrant price (in USD per share) | $ / shares

$ 12.3

Proceeds from issuance of common stock and warrants | $

$ 39,300,000

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

$ 2,100,000

Restricted period for resales of common stock

1 year

Temporary Equity, Accretion to Redemption Value, Adjustment | $

$ 35,546,000

Temporary Equity, Dividends, Adjustment | $

0

$ 812,000

$ 156,000

Series B Warrant

Stockholders Equity Note [Line Items]

Common Stock issuable upon exercise of warrants | shares

1,138,211

Common stock per warrant price (in USD per share) | $ / shares

$ 15

Expiration date of warrants

August 2,015

Series C Warrant

Stockholders Equity Note [Line Items]

Common Stock issuable upon exercise of warrants | shares

1,138,211

Common stock per warrant price (in USD per share) | $ / shares

$ 20

Expiration date of warrants

August 2,015

Series A Warrants

Stockholders Equity Note [Line Items]

Common Stock issuable upon exercise of warrants | shares

1,138,211

Common stock per warrant price (in USD per share) | $ / shares

$ 12.3

Gross proceed from exercise of warrants | $

$ 14,000,000

Number of warrants exercised | shares

1,100,000

Exchange Agreement

Stockholders Equity Note [Line Items]

Common Stock issuable upon exercise of warrants | shares

2,672,837

Exchange Agreement | Series B Warrant

Stockholders Equity Note [Line Items]

Common Stock issuable upon exercise of warrants | shares

1,022,117

Exchange Agreement | Series C Warrant

Stockholders Equity Note [Line Items]

Common Stock issuable upon exercise of warrants | shares

1,022,117

Exchange Agreement | Series B/C Exchange Warrants

Stockholders Equity Note [Line Items]

Common Stock issuable upon exercise of warrants | shares

2,044,235

Common stock per warrant price (in USD per share) | $ / shares

$ 11.3

Period at which warrants subject to mandatory exercise after issuance

14 days

Gross proceed from exercise of warrants | $

$ 23,100,000

Exchange Agreement | Series D Warrants

Stockholders Equity Note [Line Items]

Common Stock issuable upon exercise of warrants | shares

628,602

Warrants exercise period

5 years

Gross proceed from exercise of warrants | $

$ 7,100,000

Other income (expense)

Stockholders Equity Note [Line Items]

Warrant exchange | $

$ 1,700,000

$ 3,000,000

Stock-Based Compensation - Addi

Stock-Based Compensation - Additional Information (Detail) $ in Thousands	Sep. 22, 2015shares	May. 12, 2015	Mar. 31, 2016USD ($)shares	Mar. 31, 2015USD ($)	Dec. 31, 2015shares	Sep. 21, 2015shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Reverse stock split conversion ratio	0.10	0.10
Common stock, shares authorized | shares	30,000,000		30,000,000		30,000,000	300,000,000
Total fair value of options vested			$ 200	$ 400
Total unamortized stock-based compensation related to unvested stock options			$ 1,100
Weighted-average recognition period, unvested stock options			2 years 1 month 5 days
Total intrinsic value of stock options exercised			$ 0
Stock-based compensation			$ 413	610
Shares of common stock were available for grant under 2006 Equity Incentive Plan | shares			139,159
Restricted Stock Units (RSUs)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted-average recognition period, unvested stock options			1 year 9 months 61 days
Total fair value of shares vested pursuant to restricted stock units			$ 100	$ 100
Unamortized stock-based compensation related to unvested restricted stock units			$ 2,300
Executives and employees cash bonus with vesting (in shares) | shares			845,000
PSUs
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Executives and employees cash bonus with vesting (in shares) | shares			272,775
Award vesting period			1 year
Fair value of PSU's granted			$ 1,000
Stock-based compensation			$ 80

Stock-based Compensation Total

Stock-based Compensation Total Stock-Based Compensation (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Stock-based compensation	$ 413	$ 610
Cost of Revenues
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Stock-based compensation	95	47
Research and development
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Stock-based compensation	117	147
Selling, general and administrative
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Stock-based compensation	$ 201	$ 416

Stock-based Compensation Weight

Stock-based Compensation Weighted Average Assumptions Used to Estimate Grant Date Fair Values of Stock Options (Detail) - Employee Stock Purchase Plan	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Estimated grant date fair values
Expected volatility	98.00%	75.00%
Risk-free interest rate	0.42%	0.08%
Expected term (in years)	6 months	6 months
Expected dividend rate	0.00%	0.00%

Stock-based Compensation Summar

Stock-based Compensation Summary of Option Activity (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2016	Dec. 31, 2015
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward]
Options Outstanding, Balance at December 31, 2015 (in shares)	790
Options Outstanding, Options granted (in shares)	0
Options Outstanding, Options exercised (in shares)	0
Options Outstanding, Options canceled (in shares)	(90)
Options Outstanding, Balance at March 31, 2016 (in shares)	700	790
Options Outstanding, Exercisable at March 31, 2016 (in shares)	357
Options Outstanding, Exercisable as of March 31, 2016 and expected to vest thereafter (in shares)	587
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract]
Weighted- Average Exercise Price, Balance at December 31, 2015 (in USD per share)	$ 14.08
Weighted- Average Exercise Price, Options granted (in USD per share)	0
Weighted- Average Exercise Price, Options exercised (in USD per share)	0
Weighted- Average Exercise Price, Options cancelled (in USD per share)	14.92
Weighted- Average Exercise Price, Balance at March 31, 2016 (in USD per share)	13.97	$ 14.08
Weighted- Average Exercise Price, Exercisable at March 31, 2016 (in USD per share)	18.47
Weighted- Average Exercise Price, Exercisable as of March 31, 2016 and expected to vest thereafter (in USD per share)	$ 14.47
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract]
Weighted- Average Remaining Contractual Term, Balance Beginning of Period	7 years 3 months 19 days	7 years 4 months 24 days
Weighted- Average Remaining Contractual Term, Exercisable at March 31, 2016	6 years 2 months 12 days
Weighted- Average Remaining Contractual Term, Exercisable as of March 31, 2016 and expected to vest thereafter	7 years 1 month 6 days
Aggregate Intrinsic Value, Balance at December 31, 2015	$ 0
Aggregate Intrinsic Value, Options exercised	0
Aggregate Intrinsic Value, Options cancelled	0
Aggregate Intrinsic Value, Balance at March 31, 2016	0	$ 0
Aggregate Intrinsic Value, Exercisable at March 31, 2016	0
Aggregate Intrinsic Value, Exercisable as of March 31, 2016 and expected to vest thereafter	$ 0

Stock-based Compensation Summ58

Stock-based Compensation Summary of Restricted Stock Unit Activity (Detail) - Restricted Stock Units (RSUs) shares in Thousands	3 Months Ended
	Mar. 31, 2016$ / sharesshares
Restricted Stock Units Outstanding [Rollforward]
Restricted Stock Units Outstanding, Balance at December 31, 2015 (in shares) | shares	485
Awarded (in shares) | shares	845
Vested (in shares) | shares	(95)
Cancelled (in shares) | shares	(208)
Restricted Stock Units Outstanding, Balance at March 31, 2016 (in shares) | shares	1,027
Restricted Stock Units, Weighted Average Grant Date Fair Value
Weighted-Average Fair Value When Awarded, Balance at December 31, 2015 (in USD per share) | $ / shares	$ 9.57
Weighted-Average Fair Value When Awarded, Awarded (in USD per share) | $ / shares	3.24
Weighted-Average Fair Value When Awarded, Vested (in USD per share) | $ / shares	9.29
Weighted-Average Fair Value When Awarded, Cancelled (in USD per share) | $ / shares	9.29
Weighted-Average Fair Value When Awarded, Balance at March 31, 2016 (in USD per share) | $ / shares	$ 4.46

Income Taxes - Additional Infor

Income Taxes - Additional Information (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Income Tax Disclosure [Abstract]
Income tax provision	$ 8	$ 9
Uncertain benefit that none would affect effective tax rate	$ 2,100

Net Loss Per Share Computation

Net Loss Per Share Computation of Basic and Diluted Net Income (Loss) per Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands		3 Months Ended
		Mar. 31, 2016	Jun. 30, 2015	Mar. 31, 2015
Earnings Per Share [Abstract]
Net loss		$ (9,672)		$ (11,933)
Cumulative dividend on Series A convertible preferred stock		0	$ (812)	(156)
Net loss attributable to common stockholders		$ (9,672)		$ (12,089)
Weighted average shares used to compute basic and diluted net loss per share	[1]	18,947		13,328
Basic and diluted net loss per share (in USD per share)		$ (0.51)		$ (0.91)
[1]	The Company’s financial statements have been retroactively adjusted to reflect the reverse stock split of its outstanding shares of common stock at a ratio of one-for-ten effective on September 22, 2015.

Net Loss Per Share Securities T

Net Loss Per Share 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	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Stock Options
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share	700	848
Unvested restricted stock units
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share	1,027	284
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	6	41
Warrants
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share	6,079	6,312

Accumulated Other Comprehensi62

Accumulated Other Comprehensive Income Component of Accumulated Other Comprehensive Income (Loss), Net of Tax (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning Balances	$ 1,448
Net current-period other comprehensive gain (loss)	88	$ (166)
Ending Balances	(7,732)
Unrealized Gains (Losses) on Securities
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning Balances	(72)	392
Net current-period other comprehensive gain (loss)	72	(102)
Ending Balances	0	290
Foreign Currency Translation Gains (Losses)
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning Balances	(138)	(87)
Net current-period other comprehensive gain (loss)	16	(64)
Ending Balances	(122)	(151)
Accumulated Other Comprehensive Loss
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning Balances	(210)	305
Ending Balances	$ (122)	$ 139

Segment Information - Additiona

Segment Information - Additional Information (Detail) - Segment	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Segment Reporting Information [Line Items]
Number of operating segments	1
Sales | Geographic Concentration Risk | United States
Segment Reporting Information [Line Items]
Concentration risk, percentage	52.00%	34.00%
Sales | Geographic Concentration Risk | Belgium
Segment Reporting Information [Line Items]
Concentration risk, percentage	14.00%
Sales | Geographic Concentration Risk | China
Segment Reporting Information [Line Items]
Concentration risk, percentage		22.00%
Sales | Geographic Concentration Risk | Saudi Arabia
Segment Reporting Information [Line Items]
Concentration risk, percentage		14.00%
Sales | Geographic Concentration Risk | Italy
Segment Reporting Information [Line Items]
Concentration risk, percentage		10.00%

Segment Information - Informati

Segment Information - Information Regarding Total Revenue (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Revenue, Major Customer [Line Items]
Revenues	$ 3,042	$ 5,794
United States
Revenue, Major Customer [Line Items]
Revenues	1,593	1,962
International
Revenue, Major Customer [Line Items]
Revenues	$ 1,449	$ 3,832

Subsequent Events - Additional

Subsequent Events - Additional Information (Detail) - Subsequent Event - USD ($) $ / shares in Units, $ in Thousands	Apr. 21, 2016	Apr. 20, 2016
Subsequent Event [Line Items]
Ownership percentage of outstanding common stock by Rollover Stockholders		64.60%
White Oak Loan Agreement
Subsequent Event [Line Items]
Repayments of secured debt	$ 5,000	$ 5,000
Restricted Stock Units (RSUs)
Subsequent Event [Line Items]
Percent of performance conditions met		100.00%
Scenario, Forecast
Subsequent Event [Line Items]
Amount of aggregate investment by Rollover Stockholders		$ 49,000
Scenario, Forecast | Merger with Auris Surgical Robotics, Inc
Subsequent Event [Line Items]
Acquisition price per share (in dollars per share)		$ 4
Termination fee		$ 3,325
Percent of outstanding shares approving merger		65.40%