TearLab (TEAR) 10-K 9 Mar 16 2015 FY Annual report Financial data

Document and Entity Information

Document and Entity Information - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Mar. 04, 2016	Jun. 30, 2015
Document And Entity Information
Entity Registrant Name	TearLab Corp
Entity Central Index Key	1,299,139
Document Type	10-K
Document Period End Date	Dec. 31, 2015
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity a Well-known Seasoned Issuer	No
Entity a Voluntary Filer	No
Entity's Reporting Status Current	Yes
Entity Filer Category	Accelerated Filer
Entity Public Float			$ 61,100
Entity Common Stock, Shares Outstanding		33,828,647
Trading Symbol	TEAR
Document Fiscal Period Focus	FY
Document Fiscal Year Focus	2,015

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Current assets
Cash	$ 13,838	$ 16,338
Accounts receivable, net	3,021	2,480
Inventory	3,972	2,986
Prepaid expenses and other current assets	790	890
Total current assets	21,621	22,694
Fixed assets, net	5,352	4,504
Patents and trademarks, net	52	80
Intangible assets, net	1,145	3,596
Other non-current assets	181	157
Total assets	28,351	31,031
Current liabilities
Accounts payable	2,292	2,202
Accrued liabilities	5,047	3,765
Deferred Rent	114	174
Obligations under warrants	29	256
Total current liabilities	7,482	$ 6,397
Long-term debt	24,859
Total liabilities	32,341	$ 6,397
Exchange right	$ 250	$ 250
Stockholders' equity (deficit)
Preferred Stock, $0.001 par value, authorized 10,000,000, none issued and outstanding
Common stock, $0.001 par value, 65,000,000 authorized, 33,760,904 and 33,641,302 issued and outstanding at December 31, 2015 and December 31, 2014, respectively	$ 34	$ 34
Additional paid-in capital	488,514	483,909
Accumulated deficit	(492,788)	(459,559)
Total stockholders' equity (deficit)	(4,240)	24,384
Total liabilities and stockholders' equity (deficit)	$ 28,351	$ 31,031

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - $ / shares	Dec. 31, 2015	Dec. 31, 2014
Statement of Financial Position [Abstract]
Preferred stock, par value	$ 0.001	$ 0.001
Preferred stock, authorized	10,000,000	10,000,000
Preferred stock, issued	0	0
Preferred stock, outstanding	0	0
Common stock, par value	$ 0.001	$ 0.001
Common stock, authorized	65,000,000	65,000,000
Common stock, issued	33,760,904	33,641,302
Common stock, outstanding	33,760,904	33,641,302

Consolidated Statements of Oper

Consolidated Statements of Operations and Comprehensive Loss - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Revenue
Product sales	$ 20,325	$ 16,086	$ 12,593
Reader equipment rentals	4,831	3,632	2,052
Total revenue	25,156	19,718	14,645
Cost of goods sold
Cost of goods sold (excluding amortization of intangible assets)	10,825	8,804	7,607
Cost of goods sold - reader equipment depreciation	1,732	1,292	539
Gross profit	12,599	9,622	6,499
Operating expenses
Amortization of intangible assets	1,501	1,462	1,215
General and administrative	14,935	13,555	8,942
Clinical, regulatory and research & development	6,951	2,792	1,095
Sales and marketing	19,349	$ 16,817	$ 13,021
Impairment of long-lived assets	1,372
Total operating expenses	44,108	$ 34,626	$ 24,273
Loss from operations	(31,509)	(25,004)	(17,774)
Other income (expense)
Interest income (expense)	(2,023)	28	35
Changes in fair value of warrant obligations	227	1,175	(11,105)
Other, net	76	79	(146)
Total other income (expense)	(1,720)	1,282	(11,216)
Net loss and comprehensive loss	$ (33,229)	$ (23,722)	$ (28,990)
Weighted average shares outstanding - basic	33,698,086	33,578,820	30,759,305
Net loss per share - basic	$ (0.99)	$ (0.71)	$ (0.94)
Weighted average shares outstanding - diluted	33,731,807	33,717,344	30,759,035
Net loss per share - diluted	$ (0.99)	$ (0.74)	$ (0.94)

Consolidated Statements of Stoc

Consolidated Statements of Stockholders' Equity (Deficit) - USD ($) $ in Thousands	Common Stock [Member]	Additional Paid-In Capital [Member]	Accumulated Deficit [Member]	Total
Balance at Dec. 31, 2012	$ 29	$ 421,662	$ (406,847)	$ 14,844
Balance, Shares at Dec. 31, 2012	28,741,653
Stock-based compensation		3,738		3,738
Warrants exercised	$ 1	13,988		13,989
Warrants exercised, shares	1,375,194
Shares issued in public offerings and registered direct offerings	$ 3	40,362		40,365
Shares issued in public offerings and registered direct offerings, shares	2,990,000
Issue costs of equity financings		(3,036)		(3,036)
Options exercised		$ 458		$ 458
Options exercised, shares	181,854			(181,854)
Net loss and comprehensive loss			$ (28,990)	$ (28,990)
Balance at Dec. 31, 2013	$ 33	$ 477,172	$ (435,837)	41,368
Balance, Shares at Dec. 31, 2013	33,288,701
Stock-based compensation		3,824		3,824
Warrants exercised	$ 1	2,615		2,616
Warrants exercised, shares	246,936
Options exercised		184		$ 184
Options exercised, shares	57,763			(57,763)
Issuance of employee purchase plan shares		$ 114		$ 114
Issuance of employee purchase plan shares, shares	47,902
Net loss and comprehensive loss			$ (23,722)	(23,722)
Balance at Dec. 31, 2014	$ 34	$ 483,909	$ (459,559)	24,384
Balance, Shares at Dec. 31, 2014	33,641,302
Stock-based compensation		4,117		4,117
Warrants issued		290		290
Options exercised		99		$ 99
Options exercised, shares	65,391			(65,391)
Issuance of employee purchase plan shares		$ 99		$ 99
Issuance of employee purchase plan shares, shares	54,211
Net loss and comprehensive loss			$ (33,229)	(33,229)
Balance at Dec. 31, 2015	$ 34	$ 488,514	$ (492,788)	$ (4,240)
Balance, Shares at Dec. 31, 2015	33,760,904

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
OPERATING ACTIVITIES
Net loss for the period	$ (33,229)	$ (23,722)	$ (28,990)
Adjustments to reconcile net loss to cash used in operating activities:
Stock-based compensation	4,117	3,824	3,738
Depreciation of fixed assets	2,075	1,448	624
Amortization of patents and trademarks	28	28	28
Amortization of intangible assets	1,501	$ 1,462	$ 1,215
Impairment of long-lived assets	1,372
Changes in fair value of warrant obligations	(227)	$ (1,175)	$ 11,105
(Gain) loss on disposal of fixed assets	(3)		$ 7
Amortization of deferred financing charges	74
Net change in working capital and non-current asset balances related to operations	578	$ (37)	$ (961)
Cash used in operating activities	(23,703)	(18,172)	(13,234)
INVESTING ACTIVITIES
Additions to fixed assets, net of proceeds	$ (3,388)	(2,416)	$ (2,905)
Cash paid for business acquisition		(1,400)
Cash used in investing activities	$ (3,388)	$ (3,816)	$ (2,905)
FINANCING ACTIVITIES
Proceeds from the issuance of term loan	$ 24,393
Proceeds from the issuance of shares in a public offering			$ 40,365
Proceeds from the issuance of employee stock purchase plan shares	$ 99	$ 114
Proceeds from the exercise of options	$ 99	$ 184	$ 458
Proceeds from the exercise of warrants			$ 693
Exchange right		$ 250
Cost of issuance of shares			$ (3,036)
Cash provided by financing activities	$ 24,591	$ 548	38,480
Net Increase (decrease) in cash and cash equivalents during the year	(2,500)	(21,440)	22,341
Cash and cash equivalents, beginning of year	16,338	37,778	15,437
Cash and cash equivalents, end of year	$ 13,838	$ 16,338	$ 37,778

Basis of Presentation

Basis of Presentation	12 Months Ended
	Dec. 31, 2015
Accounting Policies [Abstract]
Basis of Presentation	1. Basis of Presentation Nature of Operations TearLab Corporation in vitro The accompanying consolidated financial statements include the accounts of the Company, its wholly owned subsidiaries TearLab Research, Inc. (“TearLab Research”), Occulogix Canada Corporation, and OcuHub Holdings, Inc. (formerly, Occulogix LLC) and all the accounts of its majority owned subsidiary, OcuHub LLC (“OcuHub”). Intercompany accounts and transactions have been eliminated on consolidation. Liquidity and Going Concern The accompanying consolidated financial statements have been prepared on the going concern basis, which assumes that the Company will continue to operate as a going concern and which contemplates the realization of assets and the satisfaction of liabilities and commitments in the normal course of business. However, the Company has sustained substantial losses of $33,229, $23,722, and $28,990 for the years ended December 31, 2015, 2014, and 2013, respectively. The Company’s working capital surplus at December 31, 2015 is $14,139. As a result of the Company’s history of losses and financial condition, there is substantial doubt about the entity’s ability to continue as a going concern. The Company’s existing cash and cash equivalents of $13,838 at December 31, 2015 combined with anticipated cash flows provided by sales of its products in calendar year 2016 may not be sufficient to fund its cash requirements through the next twelve months if management is unsuccessful in completing additional fund raising activities including achievement of the third tranche revenue milestone to access an additional $10,000 of debt financing and decreasing the cash consumed by operating activities. Based on the Company’s current rate of cash consumption, management estimates cash and cash equivalents will go below $5,000 in the second quarter of 2016, violating a debt covenant, and the Company will need additional capital to remain compliant. These matters, among others, raise substantial doubt about the Company’s ability to continue as a going concern. A successful transition to attaining profitable operations is dependent upon obtaining sufficient financing to fund the Company’s planned expenses and achieving a level of revenue adequate to support the Company’s cost structure. If events or circumstances occur that impact the Company’s access to funding, it may be required to reduce operating expenses, planned levels of inventory and capital expenditures which could have an adverse impact on its ability to achieve its intended business objectives. The accompanying consolidated financial statements do not include any adjustments that might be necessary if the Company is unable to continue as a going concern.

Significant Accounting Policies

Significant Accounting Policies	12 Months Ended
	Dec. 31, 2015
Accounting Policies [Abstract]
Significant Accounting Policies	2. SIGNIFICANT ACCOUNTING POLICIES Use of estimates The preparation of financial statements in conformity with U.S. Generally Accepted Accounting Principles (‘‘GAAP’’) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenue and expenses during the reporting periods. Actual results could differ from those estimates. The principal areas of judgment relate to revenue returns reserve, allowance for doubtful accounts, slow-moving or obsolete inventory, impairment of long-lived and intangible assets, and the fair value of stock options and warrants. Concentrations and risk Credit risk Financial instruments, which potentially subject the Company to concentrations of credit risk, consist primarily of cash and accounts receivable. The Company limits its exposure to credit loss by placing its cash with high credit quality financial institutions. During 2015, 2014 and 2013, the Company derived its revenue from the sale of the TearLab ® Currently, there are two suppliers for the reader and pen components of the TearLab® Osmolarity System and one supplier for the test cards. The Company expects to maintain the relationships with these suppliers. Fair value of financial instruments The Company’s financial instruments consist principally of cash and cash equivalents, accounts receivable, accounts payable, accrued expenses and term debt. The carrying amounts of financial instruments such as cash equivalents, accounts receivable, accounts payable and accrued expenses approximate the related fair values due to the short-term maturities of these instruments. The term debt is presented net of any unamortized premiums or discounts, which approximates fair value. Cash and cash equivalents The Company considers all highly liquid investments that are readily convertible into cash and have an original maturity of three months or less at the time of purchase to be cash equivalents. Accounts receivable and allowance for doubtful accounts The Company’s accounts receivable consist primarily of trade receivables from customers and are generally unsecured and due within 30 days. The carrying value of accounts receivable approximates their fair value due to their short term nature. The Company evaluates the collectability of its accounts receivable based on a combination of factors and calculates an allowance for doubtful accounts based on the estimated proportion of aged receivables deemed uncollectable. Expected credit losses related to trade receivables are recorded as an allowance for doubtful accounts. The allowance for doubtful accounts is charged to sales and marketing expense and accounts receivable are written off as uncollectible and deducted from the allowance after appropriate collection efforts have been exhausted. The allowance for doubtful accounts was $589 and $424 at December 31, 2015 and 2014, respectively. Charges for bad debt expense have been $271, $121 and $377 for the years ended December 31, 2015, 2014 and 2013, respectively. Inventory Inventory is recorded at the lower of cost (based on first in, first out basis) or market and consists of purchased finished goods. Inventory is periodically reviewed for evidence of slow-moving or obsolete items, and the estimated reserve is based on management’s reviews of inventories on hand, compared to estimated future usage and sales, reviewing product shelf-life, and assumptions about the likelihood of obsolescence. Once written down, the adjustments are considered permanent and are not reversed until the related inventory is sold. Fixed assets Property and equipment are carried at cost less accumulated depreciation and amortization. Depreciation is computed using the straight-line method over the estimated useful lives of the assets, ranging from three to seven years. Maintenance and repairs are expensed as incurred. The Company reviews property and equipment for impairment whenever events or changes in circumstances indicate that the carrying value of an asset may not be recoverable. An impairment loss would be recognized when estimated future undiscounted cash flows relating to the asset are less than its carrying amount. An impairment loss is measured as the amount by which the carrying amount of an asset exceeds its fair value. Impairment of long-lived assets The Company periodically assesses the carrying value of intangible and other long-lived assets, and whenever events or changes in circumstances indicate that the carrying amount of an asset might not be recoverable. The assets are considered to be impaired if the Company determines that the carrying value may not be recoverable based upon its assessment, which includes consideration of the following events or changes in circumstances: ● the asset’s ability to continue to generate income from operations and positive cash flow in future periods; ● loss of legal ownership or title to the asset; ● significant changes in the Company’s strategic business objectives and utilization of the asset(s); and ● the impact of significant negative industry or economic trends. If the assets are considered to be impaired, the impairment recognized is the amount by which the carrying value of the assets exceeds the fair value of the assets. Fair value is determined by the application of discounted cash flow models to project cash flows from the asset. In addition, the Company bases the useful lives and related amortization or depreciation expense on an estimate of the period that the assets will generate revenue or otherwise be used. The Company also periodically reviews the lives assigned to long-lived assets to ensure that the initial estimates do not exceed any revised estimated periods from which the Company expects to realize cash flows from its assets. Patents and trademarks Patents and trademarks are recorded at historical cost and are amortized using the straight-line method over their estimated useful lives, not to exceed 15 years. Intangible Assets Intangible assets are recorded at historical cost and are amortized using the straight-line method over their estimated useful life. Product Warranties The Company generally provides a one year warranty on its TearLab® Osmolarity System and related disposables. The Company accrues the estimated cost of this warranty at the time revenue is recognized and charges warranty expense to cost of goods sold. Warranty reserves are established based on historical experience with failure rates and the number of systems covered by warranty. Warranty reserves are depleted as systems and disposables are replaced. The Company reviews warranty reserves quarterly and, if necessary, make adjustments. The activities in the warranty reserve are as follows: Years ended December 31, 2015 2014 2013 Balance at the beginning of the year $ 121 $ 180 $ 107 Charges to cost of goods sold 73 79 271 Costs applied to liability (100 ) (138 ) (198 ) Balance at the end of the year $ 94 $ 121 $ 180 Income Taxes A deferred tax asset or liability is determined based on the difference between the financial statement and tax basis of assets and liabilities as measured by the enacted tax rates which will be in effect when these differences reverse. The Company provides a valuation allowance against net deferred tax assets unless, based upon the available evidence, it is more likely than not that the deferred tax assets will be realized. Revenue recognition Revenue is recognized when all four of the following criteria are met: (i) persuasive evidence that an arrangement exists; (ii) delivery of the products has occurred; (iii) the selling price is fixed or determinable; and (iv) collectability is reasonably assured. The Company records revenue when all of its obligations are completed, which is generally upon shipment of the Company’s products. Amounts received in excess of revenue recognizable are deferred. The Company sells its proprietary TearLab® Osmolarity System and related test cards to external customers, who are primarily eye care professionals, for use in osmolarity testing procedures. Revenue is primarily derived from the sale of disposable test cards. Products are generally shipped from a distribution and warehousing facility located in San Diego, California. The Company’s sales are currently direct to customers in the United States and Canada and to distributors in South America, Europe, Asia and Australia. The Company enters into contracts where revenue is derived either from agreements whereby the customer is provided the right to use the TearLab® Osmolarity System (reader equipment) at no separate cost to the customer in consideration for a minimum purchase commitment of disposable test cards over the related contract term (referred to as either “Use Agreements”, “Masters Agreements” or “Flex Agreements”), or from agreements with sales of multiple deliverables, such as the reader equipment and disposable test cards (referred to as “Purchase Agreements”). On a limited basis, the Company sells reader equipment or disposable test cards on a stand-alone basis, primarily in academic settings. Purchase commitments for Use Agreements and Flex Agreements are expressed in the agreement for a specified period of time (generally one to three years). The purchase commitment for Masters Agreements is implied for large physician practices with an expectation of purchasing certain levels of test cards. The Company recovers the cost of providing the reader equipment in the amount charged for disposable test cards. These agreements are treated as operating leases as collectability of the minimum lease payments is not reasonably predictable at the outset of the arrangement. Accordingly, revenue is recognized over the defined contract term as disposable test cards are shipped. Revenue under such agreements is allocated between the lease of the reader equipment and the sale of the disposables based upon each component’s relative fair value. When reader equipment is placed with a customer at no separate cost, the Company retains title to the equipment and it remains capitalized on the Company’s Consolidated Balance Sheet as equipment classified within fixed assets, net. The equipment is depreciated on a straight-line basis once shipped to a customer location over its estimated useful life and depreciation expense is included in cost of goods sold within the Consolidated Statements of Operations and Comprehensive Loss. Revenue recognition for Purchase Agreements with multiple deliverables is based on the individual units of accounting determined to exist in the contract. A delivered item is considered a separate unit of accounting when the delivered item has value to the customer on a stand-alone basis. Items are considered to have stand-alone value when they are sold separately by any vendor or when the customer could resell the item on a stand-alone basis. Considering that test cards are essential to the operation of a TearLab reader, there is no alternative vendor for the test cards and no indication that a secondary market for the TearLab readers is established, the deliverables under the contracts entered into during 2015, 2014 and 2013 do not meet criteria for separation under the multiple-element arrangements guidance. Consideration is allocated at the inception of the contract to all deliverables based on their relative selling price, as determined by the selling price of similar individual items on a stand-alone basis. The Company recognizes revenue for each of the elements only when it determines that all applicable recognition criteria have been met. Amounts billed to customers for shipping and handling of a sales transaction are included as revenue. For the years ended December 31, 2015, 2014 and 2013, the Company recognized revenue from shipping and handling of $194, $190 and $187, respectively. Although the Company has a no return policy for its products, the Company has established a return reserve for product sales that contain an implicit right of return. The Company reserves for estimated returns or refunds by reducing revenue at the time of shipment based on historical experience. The reserve of $67 and $77 as of December 31, 2015 and 2014, respectively, has been recorded as a reduction of revenue and is included in accounts receivable. Cost of goods sold Cost of goods sold includes the costs the Company incurs for the purchase of the TearLab® Systems sold and related freight and shipping costs, fees related to warehousing and logistics inventory management associated with conducting business and depreciation of reader equipment. The Company recorded $1,489, $1,109 and $912 in shipping and handling fees for the years ended December 31, 2015, 2014 and 2013, respectively. Clinical, regulatory and research & development costs Clinical and regulatory costs attributable to the performance of contract services are recognized as an expense as the services are performed. Non-refundable, up-front fees paid in connection with these contracted services are deferred and recognized as an expense over the estimated term of the related contract. Stock-based compensation The Company accounts for stock-based compensation expense for its directors and employees in accordance with US GAAP guidance related to stock-based compensation. Under this guidance, stock-based compensation cost is estimated at the grant date based on the fair value of the award and is recognized as an expense ratably over the requisite service period of the award. The Company uses the Black-Scholes Merton option pricing model for determining the fair value for all its awards and will recognize compensation cost on a straight-line basis over the awards’ vesting periods. Advertising Costs Advertising costs are expensed as incurred. Total advertising costs for each of the years ended December 31, 2015, 2014 and 2013 were $442, $325 and $386, respectively. Warrant liabilities The Company issued several rounds of warrants related to various debt and equity transactions which occurred in 2011. The Company accounts for its warrants issued in accordance with the US GAAP accounting guidance under Accounting Standards Codification (ASC) 815 applicable to derivative instruments, which requires every derivative instrument within its scope to be recorded on the balance sheet as either an asset or liability measured at its fair value, with changes in fair value recognized in earnings. Based on this guidance, the Company determined that the Company’s warrants do not meet the criteria for classification as equity. Accordingly, the Company classified the warrants as current liabilities. The warrants are subject to remeasurement at each balance sheet date with any change in fair value recognized as a component of other income (expense), in the statements of operations and comprehensive loss. Warrants are also remeasured at fair value immediately prior to being exercised, and the resulting fair value is reclassified into additional paid-in capital, net of any applicable exercise proceeds. The Company estimated the fair value of these warrants at the respective balance sheet dates using the Black-Scholes Merton option pricing model based on the estimated market value of the underlying common stock at the valuation measurement date, the remaining contractual term of the warrant, risk-free interest rates and expected dividends on and expected volatility of the price of the underlying common stock. Foreign currency transactions The Company’s functional and reporting currency is the U.S. dollar. The assets and liabilities of the Company’s Canadian operations are maintained in U.S. dollars. Monetary assets and liabilities denominated in foreign currencies are translated into U.S. dollars at exchange rates in effect at the consolidated balance sheet dates, and non-monetary assets and liabilities are translated at exchange rates in effect on the date of the transaction. Revenue and expenses are translated into U.S. dollars at average exchange rates prevailing during the year. Resulting exchange gains (losses) of $76, ($35) and ($131) are included in other income (expense) for the years ended December 31, 2015, 2014 and 2013, respectively. Geographic information The following table provides geographic information related to the Company’s revenue based on the geographic location to which we deliver the product: For the year ended December 31, 2015 2014 2013 United States $ 23,597 $ 18,589 $ 13,844 Canada 268 200 121 Rest of the world 1,291 929 680 Total $ 25,156 $ 19,718 $ 14,645 Comprehensive loss Comprehensive income (loss) is defined as the change in equity during a period from transactions and other events and circumstances from non-owner sources. Comprehensive income (loss) generally includes unrealized gains or losses on the Company’s marketable securities and foreign currency translation adjustments. In all the periods presented, the Company’s comprehensive loss equaled net loss for the period. Net loss per share Basic earnings per share (‘‘EPS’’) excludes dilutive securities and is computed by dividing net loss available to common stockholders by the weighted average number of shares of common stock outstanding for the year. Diluted EPS reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted and the resulting additional shares are dilutive because their inclusion decreases the amount of EPS. The following are potentially dilutive securities which have not been used in the calculation of diluted loss per share as they are anti-dilutive: December 31, 2015 2014 2013 Stock options 6,919,102 6,363,126 5,536,795 Warrants 424,063 74,063 598,612 Total 7,343,165 6,437,189 6,135,407 The following table is a reconciliation of the weighted average shares outstanding used for basic and diluted loss per share: December 31, 2015 2014 2013 Weighted average shares outstanding - basic 33,698,086 33,578,820 30,759,305 Dilutive potential common shares 33,721 138,524 - Weighted average shares outstanding - fully diluted 33,731,807 33,717,344 30,759,305 Recent accounting pronouncements In May 2014, the Financial Accountings Standards Board (the “FASB”) issued Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers, which requires an entity to recognize revenue to depict the transfer of goods or services to a customer at an amount that reflects the consideration it expects to receive in exchange for those goods or services. The new guidance is effective for annual and interim reporting periods beginning after December 15, 2017 and early adoption is not permitted. Companies may use either a full retrospective or a modified retrospective approach to adopt the new guidance. The Company has not yet completed its assessment of the impact of the new standard, including selection of transition alternatives, on the Company’s financial statements. In August 2014, the FASB issued guidance which requires management to assess an entity’s ability to continue as a going concern and to provide related disclosures in certain circumstances. Under the new guidance, disclosures are required when conditions give rise to substantial doubt about an entity’s ability to continue as a going concern within one year from the financial statement issuance date. The guidance is effective for annual periods ending after December 15, 2016, and all annual and interim periods thereafter. Early application is permitted. The adoption of this guidance will not have any impact on the Company’s financial position and results of operations. In April 2015, the FASB issued authoritative guidance that requires debt issuance costs related to a recognized debt liability to be presented on the balance sheet as a direct deduction from the debt liability rather than as an asset. While adoption of this guidance is required for fiscal years beginning after December 15, 2015, the Company elected to adopt this guidance early, as of March 31, 2015. In November 2015, the FASB issued new guidance on the balance sheet classification and presentation of deferred taxes. The guidance requires all deferred tax assets and liabilities, along with any valuation allowances, to be classified as noncurrent on the balance sheet. The guidance is effective for fiscal years beginning after December 15, 2016, with early adoption permitted. The Company elected to adopt this guidance prospectively as of December 31, 2015.

Balance Sheet Details

Balance Sheet Details	12 Months Ended
	Dec. 31, 2015
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Balance Sheet Details	3. BALANCE SHEET DETAILS Accounts receivable December 31, 2015 2014 Trade receivables $ 3,610 $ 2,904 Allowance for doubtful accounts (589 ) (424 ) $ 3,021 $ 2,480 Inventory December 31, 2015 2014 Finished goods $ 4,002 $ 2,990 Inventory reserves (30 ) (4 ) $ 3,972 $ 2,986 The Company evaluates inventory for estimated excess quantities and obsolescence, based on expected future sales levels and projections of future demand and expiration dates of inventory, with the excess inventory provided for. In addition, the Company assesses the impact of changing technology and market conditions. Prepaid expenses and other current assets December 31, 2015 2014 Prepaid trade shows $ 246 $ 177 Prepaid insurance 87 301 Manufacturing deposits 154 182 Subscriptions 128 82 Other fees and services 146 142 Other current assets 29 6 $ 790 $ 890 Fixed assets, net December 31, 2015 2014 Capitalized TearLab equipment $ 8,349 $ 5,655 Leasehold improvements 61 51 Computer equipment and software 1,023 819 Furniture and office equipment 278 267 Medical equipment 431 426 $ 10,142 $ 7,218 Less accumulated depreciation (4,790 ) (2,714 ) $ 5,352 $ 4,504 Depreciation expense was $2,075, $1,448 and $624 for the years ended December 31, 2015, 2014 and 2013, respectively. During the year ended December 31, 2015, the Company determined the assets of OcuHub were impaired and recorded a charge of $343 to fixed assets, which is included with the impairment of the OcuHub intangible assets and presented as an impairment of long-lived assets on the Consolidated Statements of Operations and Comprehensive Loss. Patents and trademarks December 31, 2015 2014 Patents $ 236 $ 236 Trademarks 32 32 268 268 Accumulated amortization (216 ) (188 ) $ 52 $ 80 Amortization expense was $28 for each of the years ended December 31, 2015, 2014 and 2013. Patents and trademarks are amortized, using the straight-line method, over an estimated useful life of 10 years from the date of approval of the patents and trademarks. Estimated aggregate amortization expense for patents and trademarks at December 31, 2015 is as follows: 2016 $ 28 2017 24 Total $ 52 Accrued liabilities December 31, 2015 2014 Due to professionals $ 256 $ 787 Due to employees and directors 2,130 1,589 Sales and use tax liabilities 231 221 Royalty liability 753 330 Warranty 94 119 Other 1,583 719 $ 5,047 $ 3,765

Intangible Assets

Intangible Assets	12 Months Ended
	Dec. 31, 2015
Goodwill and Intangible Assets Disclosure [Abstract]
Intangible Assets	4. INTANGIBLE ASSETS The Company’s intangible assets consist of the value of TearLab® Technology acquired in the acquisition of TearLab Research in November 2006, a prescriber list acquired in October 2015 and the value of the OcuHub platform technology acquired in the acquisition of the OcuHub business unit in March 2014. The TearLab Technology consists of a disposable lab card and card reader, supported by an array of patents and patent applications that are either held or in-licensed by the Company. The TearLab Technology is being amortized using the straight-line method over an estimated useful life of 10 years. The OcuHub platform technology consists of the right to access and commercialize the OcuHub cloud-based technology platform which facilitates an effective and efficient shared care model providing secure connectivity between doctors, patients, institutions and payers. Amortization expense was $1,512, $1,462 and $1,215 for the years ended December 31, 2015, 2014 and 2013, respectively. Subsequent to December 31, 2015 the Company initiated steps to divest or wind down OcuHub. This determination subjected Management’s expectations of any future cash flows from OcuHub to increased risks and uncertainty, resulting in an impairment to the OcuHub platform technology of $1,029 in 2015. The impairment is included with the impairment of the OcuHub fixed assets and presented in the Consolidated Statements of Operations and Comprehensive Loss as an impairment of long-lived assets. Intangible assets subject to amortization consist of the following: Remaining Gross Value Gross Value Accumulated Amortization Accumulated Amortization Useful Life at Beginning at End of at Beginning Amortization at End of Net Book (Years) of Year Additions Impairments Year of Year Expense Year Value Year ended December 31, 2015 TearLab® technology 1 $ 12,172 $ - $ - $ 12,172 $ (9,892 ) $ (1,214 ) $ (11,106 ) $ 1,066 OcuHub platform technology - 1,564 - (1,029 ) 535 (248 ) (287 ) (535 ) - Prescriber list 2 - 90 - 90 - (11 ) (11 ) 79 Total $ 13,736 $ 90 $ (1,029 ) $ 12,797 $ (10,140 ) $ (1,512 ) $ (11,652 ) $ 1,145 Year ended December 31, 2014 TearLab® technology 2 $ 12,172 $ - $ - $ 12,172 $ (8,678 ) $ (1,214 ) $ (9,892 ) $ 2,280 OcuHub platform technology 4 - 1,564 - 1,564 - (248 ) (248 ) 1,316 Total $ 12,172 $ 1,564 $ - $ 13,736 $ (8,678 ) $ (1,462 ) $ (10,140 ) $ 3,596 Estimated future amortization expense related to intangible assets with finite lives at December 31, 2015 is as follows: Amortization of intangible assets 2016 $ 1,111 2017 34 $ 1,145

Related Party Transactions

Related Party Transactions	12 Months Ended
	Dec. 31, 2015
Related Party Transactions [Abstract]
Related Party Transactions	5. RELATED PARTY TRANSACTIONS On August 20, 2009, the Company entered into a distribution agreement with Science with Vision Inc., (“Science with Vision”) pursuant to which Science with Vision obtained exclusive Canadian distribution rights with respect to the Company’s products. The Company’s chairman of the board of directors has a material financial interest in Science with Vision. On September 3, 2013, the Company and Science with Vision agreed to terminate the distribution agreement including exclusive distribution rights of TearLab products in Canada. In consideration of the termination agreement, the Company agreed to a one-time payment to Science with Vision of C$200 Canadian dollars and a 5% royalty on all sales in Canada of products for which Science with Vision had exclusive distribution rights. The one-time payment resulted in a charge of $190 (U.S. dollars) during the year ended December 31, 2013 and is recorded within sales and marketing expense. The Company incurred $12 and $11 of royalty expense to Science with Vision during the years ended December 31, 2015 and 2014, respectively. Royalties are recorded as cost of goods sold in the income statement in the period in which revenue is recognized for the associated products sold.

Income Taxes

Income Taxes	12 Months Ended
	Dec. 31, 2015
Income Tax Disclosure [Abstract]
Income Taxes	6. INCOME TAXES Geographic sources of loss from continuing operations before income tax are as follows: December 31, 2015 2014 2013 Domestic $ 32,099 $ 22,768 $ 28,155 Foreign 1,130 954 835 Loss before income taxes $ 33,229 $ 23,722 $ 28,990 Significant components of the Company’s deferred tax assets and liabilities are as follows: December 31, 2015 2014 Deferred tax assets Intangible assets $ 1,307 $ 446 Stock options 3,615 3,120 Accruals and others 1,060 848 Net operating loss carryforwards 30,200 21,345 36,182 25,759 Valuation allowance (36,182 ) (24,971 ) Deferred tax asset $ - $ 788 Deferred tax liability Intangible assets $ - $ (788 ) Deferred tax liability $ - $ (788 ) Deferred taxes, net $ - $ - The following is a reconciliation of the recovery of income taxes between those that are expected, based on enacted tax rates and laws, to those currently reported: December 31, 2015 2014 2013 Loss for the year before income taxes $ (33,229 ) $ (23,722 ) $ (28,990 ) Expected recovery of income taxes $ (11,298 ) $ (8,064 ) $ (9,856 ) State income tax, net of federal benefit (518 ) (438 ) (440 ) Stock based compensation 239 189 204 Warrants (75 ) (400 ) 3,776 Deferred state tax rate adjustment (227 ) (151 ) 899 Expiration of options - - 3,761 Adjustments to deferred tax assets 552 47 1,138 Non-deductible expense and other 118 90 112 Change in valuation allowance 11,209 8,727 406 Total recovery of income taxes $ - $ - $ - Income taxes are recorded in accordance with authoritative guidance for accounting for income taxes, which requires the recognition of deferred tax assets and liabilities to reflect the future tax consequences of the events that have been recognized in the Company’s consolidated financial statements or tax returns. Measurement of the deferred items is based on enacted tax laws. In the event of differences between the financial reporting bases and tax bases of the Company’s assets, an assessment regarding the Company’s ability to realize the future benefits of the deferred tax assets is required. The Company records a valuation allowance to reduce the deferred tax assets to the amount that is more likely than not to be realized. Management has considered future taxable income and ongoing tax planning strategies in assessing the need for the valuation allowance. In the event the Company were to determine that it would be able to realize the deferred tax assets in the future in excess of their net recorded amounts, an adjustment to the deferred tax assets would increase the income in the period such determination was made. Likewise, should the Company determine that it would not be able to realize all or part of the net deferred tax assets in the future, an adjustment to the deferred tax assets would be charged to income in the period such determination was made. The Company assesses its tax positions to determine the impact of uncertain income tax positions on the income tax return based on the largest amount that is more-likely-than-not to be sustained upon audit by the relevant taxing authority. An uncertain income tax position will not be recognized if it has less than a 50% likelihood of being sustained. At December 31, 2015 and 2014, the Company has no unrecognized income tax benefits and no material uncertain tax positions. During the year ended December 31, 2012, a change of ownership for tax purposes causing Section 382 restrictions on the utilization of net operating losses occurred. No additional ownership changes are expected to arise through 2015. The ownership change in 2012, while limiting the annual utilization of net operating losses, will not cause the carryforwards generated subsequent to the Company’s last ownership change in October 2008 to expire unused. In general, an ownership change, as defined by Section 382, results from transactions increasing ownership of certain stockholders or public groups in the stock of the corporation by more than 50 percentage points over a three-year period. Utilization of net operating loss carryforwards are subject to annual limitations under Section 382 of the Internal Revenue Code of 1986, and similar state provisions whenever an ownership change has occurred. The ownership changes described above will limit the annual amount of net operating loss carryforwards that can be utilized to offset future taxable income. At December 31, 2015, the Company had federal net operating loss carryforwards of approximately $82,204, state net operating loss carryforwards of approximately $56,744 and Canadian net operating loss carryforwards of approximately $9,234. The federal net operating loss carryforwards and the state net operating loss carryforwards begin to expire in 2028, and the Canadian net operating loss carryforwards begin to expire in 2026. The federal and state net operating loss carryovers reflected above do not include any net operating loss carryover which would expire unutilized solely as a result of 382 limitations arising in connection with the 2008 ownership change. As of December 31, 2015, the Company has approximately $1,515 of net operating loss carryforwards related to stock option exercises which will result in an increase to additional paid-in capital and a decrease in income taxes payable at the time when the tax loss carryforwards are utilized. The Company’s policy is to recognize interest and penalties related to income tax matters in other expense. Because the Company has generated net operating losses since inception for both state and federal purposes, no additional tax liability, penalties or interest have been recognized for balance sheet or income statement purposes as of and for the three years ended December 31, 2015. The Company does not expect a significant change in the amount of its unrecognized tax benefits within the next 12 months. Therefore, it is not expected that the change in the Company’s unrecognized tax benefits will have a significant impact on the Company’s results of operations or financial position. All of the federal income tax returns for the Company and its subsidiaries remain open since their respective dates of incorporation due to the existence of net operating losses. The Company and its subsidiaries have not been, nor are they currently, under examination by the Internal Revenue Service or the Canada Revenue Agency. State and provincial income tax returns are generally subject to examination for a period of between three and five years after their filing. However, due to the existence of net operating losses, all state income tax returns of the Company and its subsidiaries since their respective dates of incorporation are subject to re-assessment. The state impact of any federal changes remains subject to examination by various states for a period of up to one year after formal notification to the states. The Company and its subsidiaries have not been, nor are they currently, under examination by any state tax authority.

Term Loan

Term Loan	12 Months Ended
	Dec. 31, 2015
Debt Disclosure [Abstract]
Term Loan	7. TERM LOAN On March 4, 2015, the Company executed a term loan agreement with CRG as lenders providing the Company with access of up to $35,000 (the “Term Loan Agreement”). The Company entered into an amendment of the Term Loan Agreement with CRG on August 6, 2015. The Company received $15,000 in gross proceeds under the Term Loan Agreement on March 4, 2015, and an additional $10,000 on October 6, 2015. A third tranche of $10,000 is available to the Company if the Company achieves at least $38,000 in trailing twelve-month revenue prior to June 30, 2016 and satisfies other borrowing conditions. The Term Loan Agreement matures on December 31, 2020 and bears interest at 13% per annum, with quarterly payments of interest only for the first four years. The Company may elect to make interest-only payments at 8.5% per annum. The unpaid interest of 4.5% is added to the principal of the loan and is subject to additional accrued interest (“PIK interest”). The accrued interest can be deferred and paid together with the principal in the fifth and sixth years of the Term Loan Agreement. As part of the amended Term Loan Agreement and funding of the second tranche, CRG received 350,000 warrants dated as of October 6, 2015 to purchase common shares of the Company at a price of $5.00 per share. The warrants have a five-year life. The warrants are classified as equity on the Consolidated Balance Sheet as of December 31, 2015. The warrants were valued at their issuance date using the Black-Scholes Merton model. The related reduction of the long-term debt will be amortized over the life of the debt. The Company incurred financing and legal fees associated with the debt of $606, which were recorded as a direct discount to the debt and is being amortized using the effective interest method. The Company presents the debt issuance costs related to the recognized debt liability on the balance sheet as a reduction of the liability. The following is a summary of the Term Loan Agreement as of December 31, 2015 and related maturities of outstanding principle: Prinicple balance outstanding $ 25,000 PIK interest 681 less discount on term loan: deferred financing fees, net (532 ) fair value of detachable warrants, net (290 ) Total term loan $ 24,859 Principal due for each of the next 5 years and in the aggregate thereafter: 2016 $ - 2017 - 2018 - 2019 12,841 2020 12,840 Total principal due 25,681 Less: discount on term loan (822 ) Total term loan $ 24,859 The Term Loan Agreement provides for prepayment fees of 5% of the outstanding balance of the loan if the loan is repaid prior to March 31, 2016. The prepayment fee is reduced 1% per year for each subsequent year until maturity. The loan is collateralized by all assets of the Company. Additionally, the terms of the Term Loan Agreement contain various affirmative and negative covenants agreed to by the Company. Among them, the Company must attain minimum annual revenue and minimum cash threshold levels. The minimum annual revenue threshold level required by the term loan is $25,000 for calendar year 2015. The minimum cash balance required is $5,000 subject to certain conditions. If the Company does not have annual revenue greater or equal to the annual minimum revenue covenant in a calendar year, the Company will have the right within 90 days of the end of the respective calendar year to raise subordinated debt or equity (the “CRG Equity Cure”) equal to twice the difference between the annual revenue and the revenue covenant, with the total proceeds from this financing to be used to reduce the principal of the Term Loan Agreement. In the event the Company does not achieve the minimum revenue threshold and it cannot complete the CRG Equity Cure, it may be in default of the Term Loan Agreement In the event of a default, the Company may be required to repay any outstanding amounts earlier than anticipated, and the lenders may foreclose on their security interest in the Company’s assets. Borrowings under the Term Loan Agreement are subject to certain conditions, including the non-occurrence of a material adverse change in the business or operations (financial or otherwise), or a material impairment of the prospect of repayment of obligations. As of December 31, 2015, the Company was in compliance with all of the covenants.

Commitments and Contingencies

Commitments and Contingencies	12 Months Ended
	Dec. 31, 2015
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	8. COMMITMENTS AND CONTINGENCIES Commitments The Company has commitments relating to operating leases recognized on a straight line basis over the term of the lease for rental of office space and equipment from unrelated parties, expiring at various times through June 30, 2018. The total future minimum obligation under these various leases for 2016, 2017 and 2018 are $381, $354 and $181, respectively. Rent expensed under these leases was $519, $344 and $223 for the years ended December 31, 2015, 2014 and 2013, respectively. The Company leases office facilities under an operating lease agreement. The initial term of the lease is five years and includes periodic rent increases and a renewal option. Effective October 1, 2006, the Company entered into a patent license and royalty agreement with the University of California San Diego to obtain a second exclusive license to make, use, sell, offer for sale, and import existing TearLab technology. The Company is required to make royalty payments of $35 or 5.5% of gross sales per year, whichever is higher. Additionally, the Company is required to pay a royalty of 30% of any sublicense fees it receives prior to receiving FDA approval and 25% of any sub-license fees it receives after FDA approval. The Company incurred fees of $1,370, $1,088, and $807 under this agreement during the years ended December 31, 2015, 2014 and 2013, respectively. The Company had $734 and $330 in accrued royalties at December 31, 2015 and 2014, respectively. Future minimum royalty payments under this agreement as of December 31, 2015 are approximately as follows: 2016 $ 35 2017 35 2018 35 2019 35 2020 35 Thereafter 245 Total $ 420 On March 12, 2003, the Company entered into a patent license and royalty agreement with the University of California San Diego to obtain an exclusive license to make, use, sell, offer for sale, and import TearLab technology in development. Starting in 2009, the Company was required to make minimum royalty payments of $35 or 5.5% of gross sales per year, whichever is higher. However, if this new technology is combined with existing technology, the maximum royalty payable on the sale of the combined products would be 5.5% of gross sales per year. As the new technology is currently in development, there is no revenue and the minimum royalty payment of $35 is applicable. Future minimum royalty payments under this agreement as of December 31, 2015 are approximately as follows: 2016 $ 35 2017 35 2018 35 2019 35 2020 35 Thereafter 245 Total $ 420 On August 1, 2011, the Company, through its subsidiary, TearLab Research, entered into a manufacturing and development agreement, (the “Manufacturing Agreement”), with MiniFAB (Aust) Pty Ltd, (“MiniFAB”). Pursuant to the terms of the Manufacturing Agreement, MiniFAB will manufacture and supply test cards for the Company. The Manufacturing Agreement specifies minimum order quantities that required the Company to purchase approximately $24,600 (AUD$30,200) in test cards from MiniFAB from inception of the agreement through the end of 2015. The agreement is denominated in Australian dollars, so the actual amounts paid in U.S. dollars may vary. The agreement also has annual minimum order commitments under the Manufacturing Agreement. The Company did not meet the annual minimum order commitment for the year ended December 31, 2015, however, MiniFAB has agreed to waive any penalty as a result of ordering less than the minimum order volume of 3,715,000 test cards during 2015. The Manufacturing Agreement has a ten year initial term and may be terminated by either party if the other party is in breach or becomes insolvent. If terminated for any reason other than a default by MiniFAB, the Company will be obligated to pay a termination fee based on the cost of products manufactured by MiniFAB, but not yet invoiced, repayment of capital invested by MiniFAB, less depreciation calculated in accordance with Australian accounting standards, and the expected profit to MiniFAB had the remaining minimum order quantities been purchased by the Company. The Company renegotiated the Manufacturing Agreement in March 2016. See Note 13 to the Consolidated Financial Statements, Subsequent Events for additional information. On April 1, 2014, the Company, through its subsidiary, Occulogix LLC, entered into a marketing agreement (the “Marketing Agreement”) with AOA Excel, Inc. (“AOA”). Under terms of the Marketing Agreement, the Company agreed to pay AOA guaranteed minimum payments of $25 per quarter for marketing and promotion activities through March 31, 2019. Future payments under the Marketing Agreement are as follows: 2016 $ 100 2017 100 2018 100 2019 25 Total $ 325 Contingencies During the ordinary course of business activities, the Company may be contingently liable for litigation and a party to claims. Currently the Company is not party to any litigation.

Fair Value Measurements

Fair Value Measurements	12 Months Ended
	Dec. 31, 2015
Fair Value Disclosures [Abstract]
Fair Value Measurements	9. FAIR VALUE MEASUREMENTS The Company measures certain assets and liabilities in accordance with authoritative guidance which requires fair value measurements be classified and disclosed in one of the following three categories: ● Level 1: Quoted prices (unadjusted) in active markets that are accessible at the measurement date for assets or liabilities; ● Level 2: Observable prices that are based on inputs not quoted on active markets, but corroborated by market data; ● Level 3: Unobservable inputs are used when little or no market data is available. As of December 31, 2015 and 2014, assets and liabilities are classified based on the lowest level of input that is significant to the fair value measurements. The Company reviews the fair value hierarchy classification on a quarterly basis. Changes in the ability to observe valuation inputs may result in a reclassification of levels for certain securities within the fair value hierarchy. The Company did not have any transfers to or from Level 3 of the fair value measurement hierarchy during the years ended December 31, 2015 and 2014. At December 31, 2015, the Company has a liability for warrants to purchase 219,604 shares of common stock at an exercise price of $1.86 per share valued at $29 (Note 10). All warrant liabilities are classified as Level 3 fair value measurements. The following table provides a reconciliation for all liabilities measured at fair value using significant unobservable inputs (Level 3) for the years ending December 31, 2015 and 2014: Fair Value Measurements Using Significant Unobservable Inputs (Level 3) Balance of warrant liability at January 1, 2014 $ 4,047 Reclassification of warrant liability to stockholders' equity upon exercise (2,616 ) Change in fair value of warrant liability included in other (income)/expense (1,175 ) Balance of warrant liability at December 31, 2014 256 Change in fair value of warrant liability included in other (income)/expense (227 ) Balance of warrant liability at December 31, 2015 $ 29

Capital Stock

Capital Stock	12 Months Ended
	Dec. 31, 2015
Equity [Abstract]
Capital Stock	10. CAPITAL STOCK (a) Authorized share capital The total number of authorized shares of common stock of the Company is 65,000,000. Each share of common stock has a par value of $0.001 per share. The total number of authorized shares of preferred stock of the Company is 10,000,000. Each share of preferred stock has a par value of $0.001 per share. (b) Stock Option Plan The Company has a stock option plan, the 2002 Stock Incentive Plan (the “Stock Incentive Plan”), which was most recently amended on June 19, 2015 to increase the shares reserved under the Stock Incentive Plan by 1,000,000. Under the amended Stock Incentive Plan, up to 7,200,000 options are available for grant to employees, directors and consultants. Options granted under the Stock Incentive Plan may be either incentive stock options or non-statutory stock options. Under the terms of the Stock Incentive Plan, the exercise price per share for an incentive stock option shall not be less than the fair market value of a share of stock on the effective date of grant and the exercise price per share for non-statutory stock options shall not be less than 85% of the fair market value of a share of stock on the date of grant. No option granted to a holder of more than 10% of the Company’s common stock shall have an exercise price per share less than 110% of the fair market value of a share of stock on the effective date of grant. Options granted are typically service-based options and generally expire 10 years after the date of grant. No incentive stock options granted to a 10% owner optionee shall be exercisable after the expiration of five years after the effective date of grant of such option, no option granted to a prospective employee, prospective consultant or prospective director may become exercisable prior to the date on which such person commences service, and with the exception of an option granted to an officer, director or consultant, no option shall become exercisable at a rate less than 20% per annum over a period of five years from the effective date of grant of such option unless otherwise approved by the Board. Shares issued upon option exercise result in new shares issued by the Company. The Company accounts for stock-based compensation based on the fair value of the transaction, recognized as compensation expense over the vesting period. The Company uses the Black-Scholes Merton option pricing model to calculate the fair value of the stock options. The weighted-average fair value of stock options granted during the years ended December 31, 2015, 2014 and 2013 was $1.34, $3.02 and $8.96, respectively. The following table sets forth the total stock-based compensation expense resulting from stock options and the employee stock purchase plan included in the Company’s consolidated statements of consolidated loss: Years ended December 31, 2015 2014 2013 General and administrative $ 2,014 $ 2,437 $ 1,837 Clinical, regulatory and research and development 472 159 174 Sales and marketing 1,634 1,228 1,727 Stock-based compensation expense before income taxes $ 4,120 $ 3,824 $ 3,738 The estimated fair value of stock options for the periods presented was determined using the Black-Scholes Merton option pricing model with the following weighted-average assumptions: Years ended December 31, 2015 2014 2013 Volatility 89 % 87 % 101 % Weighted average expected life of the options 5.39 years 5.84 years 5.89 years Risk-free interest rate 1.60 % 1.57 % 1.43 % Dividend yield 0.00 % 0.00 % 0.00 % The Company’s computation of expected volatility is based on the historical volatility of the Company’s common stock over a period of time equal to the expected term of the stock options. Due to the lack of sufficient historical data, the Company’s computation of weighted average expected life was estimated as the mid-point between the vesting date and the end of the contractual period. The risk-free interest rate for an award is based on the U.S. Treasury yield curve with a term equal to the expected life of the award on the date of grant. A summary of the options issued during the year ended December 31, 2015 and the total number of options outstanding as of that date and changes since December 31, 2012 are set forth below: Weighted Average Number of Weighted Remaining Aggregate Options Average Contractual Intrinsic Value Outstanding Exercise Price Life (years) (in thousands) Outstanding, December 31, 2012 4,099,342 $ 3.54 7.14 $ 6,799 Granted 1,837,500 9.78 Exercised (181,854 ) 2.52 Forfeited/cancelled/expired (218,193 ) 11.07 Outstanding, December 31, 2013 5,536,795 4.91 6.89 27,256 Granted 1,412,500 4.63 Exercised (57,763 ) 3.18 Forfeited/cancelled/expired (528,406 ) 11.10 Outstanding, December 31, 2014 6,363,126 4.76 6.57 2,155 Granted 1,285,455 2.09 Exercised (65,391 ) 1.52 Forfeited/cancelled/expired (664,088 ) 6.10 Outstanding, December 31, 2015 6,919,102 $ 4.16 6.08 $ 184 Vested or expected to vest, December 31, 2015 5,278,889 $ 4.20 5.41 $ 184 Exerciseable, December 31, 2015 4,948,032 $ 4.16 4.95 $ 184 The aggregate intrinsic value at December 31, 2015 represents the total pre-tax intrinsic value, calculated as the difference between the Company’s closing stock price on the last trading day of the respective fiscal year and the exercise price, multiplied by the number of shares that would have been received by the option holders if the options that could be exercised had been exercised on such date. Net cash proceeds from the exercise of common stock options were $99, $184 and $458 for the years ended December 31, 2015, 2014 and 2013, respectively. No income tax benefit was realized from stock option exercises during the years ended December 31, 2015, 2014 and 2013. The Company presents excess tax benefits from the exercise of stock options, if any, as financing cash flows rather than operating cash flows. The total intrinsic value of options exercised was $76, $15 and $2,038 for the years ended December 31, 2015, 2014 and 2013, respectively. The total fair value of stock options vested during the years ended December 31, 2015, 2014 and 2013 was $3,981, $3,408 and $720, respectively. As of December 31, 2015, total unrecognized compensation cost related to stock options of $3,791 is expected to be recognized over a weighted-average period of 1.92 years. As of December 31, 2015, the Company had 683,439 options remaining in the Stock Incentive Plan available for grant. (c) Employee Stock Purchase Plan In July 2014, the Company’s Board of Directors adopted the 2014 Employee Stock Purchase Plan, or the ESPP, which was approved by the Company’s stockholders in June 2014 at the Company’s Annual Meeting of Stockholders. A total of 671,500 shares of the Company’s common stock are reserved for issuance under the plan, which permits eligible employees to purchase common stock at a discount through payroll deductions. The price at which stock is purchased under the ESPP is equal to 90% of the fair market value of the common stock on the first or the last day of the offering period, whichever is lower. Generally, each offering under the ESPP will be for a period of six months as determined by the Company’s Board of Directors. Employees may invest up to 20% of their gross compensation through payroll deductions. In no event may an employee invest more than $25 worth of stock in the plan during each calendar year or more than 5,000 shares per offering period. During the year ended December 31, 2015, the Company received employee contributions totaling $203, issued 54,211 shares of common stock in July 2015 and issued another 67,743 shares of common stock subsequent to year-end in January 2016. During the year ended December 31, 2014, the Company received employee contributions totaling $114 and issued 47,902 shares of common stock. As the ESPP is a compensatory plan, stock-based compensation expense of $39, $36 and $0 has been recorded during the years ended December 31, 2015, 2014 and 2013, respectively. The fair value of each purchase option under the ESPP is estimated at the beginning of each six-month offering period using the Black-Scholes model with the following weighted-average assumptions: Years ended December 31, 2015 2014 Volatility 73 % 64 % Weighted average expected life of the options 0.5 years 0.5 years Risk-free interest rate 0.11 % 0.07 % Dividend yield 0.00 % 0.00 % (d) Warrants On June 13, 2011, the Company issued 1,629,539 shares of its common stock as well as warrants (‘‘Financing Warrants’’) to purchase 109,375 shares of its common stock in consideration of conversion and retirement of the Company’s outstanding July and August 2009 debt obligations in the aggregate amount of $2,149 with associated costs of $41. The exercise price of the Financing Warrants is $1.60 per common share representing the price per share equal to the closing bid price per share of the Company’s common stock on the NASDAQ stock market on July 15, 2009. During the years ended December 31, 2015 and 2014, no Financing Warrants were exercised. On June 30, 2011, the Company closed a private placement financing in which 3,846,154 shares of common stock and warrants (‘‘2011 Warrants’’) to purchase 3,846,154 shares of common stock for gross proceeds of approximately $7,000. The investors purchased the shares and warrants for $1.82 per unit (each unit consisting of one share and one warrant to purchase shares of common stock). The exercise price of the warrants is $1.86 per share. The warrants are exercisable at any time from the date of issuance until June 30, 2016. The Company estimated the fair value of the warrants at the date of issuance using the Black-Scholes Merton option pricing model with a 101% volatility, 5.0 years expected life and a risk-free interest rate of 1.76%. The fair value of $5,518 was classified as a current liability as the Company determined that these warrants do not meet the criteria for classification as equity. The Company initially allocated the total proceeds received, pursuant to the Securities Purchase Agreement, to the shares of common stock and warrants issued based on their relative fair values. This resulted in an allocation of $3,012 of proceeds to warrant liability. Since under the derivative guidance the Company is required to record the derivatives at fair value, the Company therefore estimated the fair value of the warrants on the issuance date to be $5,518. During 2015, none of the 2011 Warrants were exercised. During the year ended December 31, 2014 certain holders of the 2011 Warrants exercised 304,945 warrants. The Company received no cash proceeds from these exercises. The Company restated the outstanding warrants at fair value at the time of exercise before recording the exercise into additional paid-in capital, resulting in an adjustment to the warrant obligations, with any gain or loss recorded in earnings of the applicable reporting period. The Company estimated the fair value of the exercised 2011 Warrants at their respective exercise dates to be $2,616, an increase of $263 from the previous value at December 31, 2013 of $2,352. The fair value was determined using the Black-Scholes Merton option pricing model and the increase was recorded as an expense in other income (expense) in the consolidated statement of operations and comprehensive loss for the year ended December 31, 2014. During the year ended December 31, 2013 certain holders of the 2011 Warrants exercised 1,571,136 warrants. The Company received $693 in proceeds from these exercises. The Company restated the outstanding warrants at fair value at the time of exercise before recording the fair value into additional paid-in capital, resulting in an adjustment to the warrant obligations, with any gain or loss recorded in earnings of the applicable reporting period. The Company estimated the fair value of the exercised 2011 Warrants at their respective exercise dates to be $13,297, an increase of $8,620 from the previous value at December 31, 2012 of $4,014. The fair value was determined using the Black-Scholes Merton option pricing model and the increase was recorded as an expense in other income (expense) in the Consolidated Statements of Operations and Comprehensive Loss for the year ended December 31, 2013. The Company is also required to record the outstanding warrants at fair value at the end of each reporting period, resulting in an adjustment to the warrant obligations, with any gain or loss recorded in earnings of the applicable reporting period. The Company estimated the fair value of the remaining warrants as of December 31, 2015 to be $29, a decrease of $227 from the previous value at December 31, 2014. This amount was recorded as a charge to other income (expense) in the consolidated statement of operations and comprehensive loss for the year ended December 31, 2015. The estimated fair value of the 2011 Warrants at December 31, 2015 was determined using the Black-Scholes Merton option pricing model assuming volatility of 69%, an expected life of 0.50 years, a risk-free interest rate of 0.49%, and 0% dividend yield. In October 2015, as part of the second amendment to the Term Loan Agreement and funding of the $10,000 tranche, CRG received warrants to purchase 350,000 common shares in the Company at a price of $5.00 per share (the “CRG Warrants”). The CRG Warrants are exercisable any time prior to October 6, 2020. The CRG Warrants are classified as equity on the Consolidated Balance Sheet as of December 31, 2015. The CRG Warrants were valued at issuance using the Black-Scholes Merton model assuming volatility of 73%, an expected life of 5.0 years, a risk-free interest rate of 1.71%, and 0% dividend yield. No CRG Warrants were exercised during the year ended December 31, 2015. The following table provides activity for warrants issued and outstanding during the two years ended December 31, 2015: Number of Weighted average warrants exercise outstanding price Outstanding, December 31, 2013 598,612 $ 1.83 Exercised (304,945 ) 1.86 Expired - - Outstanding, December 31, 2014 293,667 1.79 Issued 350,000 5.00 Exercised - - Expired - - Outstanding, December 31, 2015 643,667 $ 3.54 (e) Exchange Right In August 2014, the Company sold membership units in OcuHub. The membership units sold generated cash proceeds of $250 in exchange for 2% ownership of OcuHub. In connection with the sale of the membership units, the new members received an exchange right allowing the units to be exchanged upon written notice and during a specified exchange window for shares in our common stock. The first available exchange window follows the one year anniversary date of the purchase of membership units. The variable number of shares of common stock provided upon exchange is equal to the initial capital contribution amount received for the membership units sold divided by the closing sales price of TearLab Corporation common stock during the respective exchange window. Due to the exchange right option available to the membership unit holders, the entire loss from continuing operations related to OcuHub of $3,507 and $2,080 for the years ended December 31, 2015 and 2014, respectively, has been attributed to TearLab Corporation within the consolidated financial statements.

Cash Flows (Consolidated Statem

Cash Flows (Consolidated Statements)	12 Months Ended
	Dec. 31, 2015
Supplemental Cash Flow Elements [Abstract]
Consolidated Statements of Cash Flows	11. CONSOLIDATED STATEMENTS OF CASH FLOWS The net change in working capital and non-current asset balances related to operations consists of the following: Years ended December 31, 2015 2014 2013 Accounts receivable, net $ (540 ) $ 1,044 $ (2,635 ) Inventory (987 ) (2,101 ) 978 Prepaid expenses and other assets 100 (162 ) (252 ) Other non-current assets (24 ) (117 ) (12 ) Accounts payable 90 1,340 (436 ) Accrued liabilities 1,318 (147 ) 1,329 Deferred interest 681 - - Deferred rent/revenue (60 ) 106 67 $ 578 $ (37 ) $ (961 ) The Company paid $1,257 for interest during the year ended December 31, 2015. During the year ended December 31, 2015, the Company issued the CRG Warrants with a fair value of $290 to obtain debt financing. The Company reclassified $0, $2,616 and $13,297 of warrant liabilities to Stockholders Equity upon the cashless exercise of warrants during the years ended December 31, 2015, 2014, and 2013, respectively.

Employee Retirement Plan

Employee Retirement Plan	12 Months Ended
	Dec. 31, 2015
Compensation and Retirement Disclosure [Abstract]
Employee Retirement Plan	12. EMPLOYEE RETIREMENT PLAN The Company has a defined contribution, 401(k) retirement plan under which all full-time employees may contribute up to 100% of their annual salary, within IRS limits. The Company has not made any contributions to these retirement plan in the years ended December 31, 2015, 2014 and 2013.

Subsequent Events

Subsequent Events	12 Months Ended
	Dec. 31, 2015
Subsequent Events [Abstract]
Subsequent Events	13. SUBSEQUENT EVENTS In January 2016, the Company decided to initiate a divestiture or wind-down of its majority owned OcuHub subsidiary. The Company estimates that a wind-down will incur approximately $600 of expense in the first quarter of 2016. In February 2016, the Company announced a restructuring of its osmolarity business designed to improve the Company’s overall cost structure, extend its cash runway and shorten the time required for it to achieve positive cash flow from operations. The restructuring resulted in the reduction of 54 full-time positions and is expected to cost approximately $0.3 million associated with personnel-related termination costs in the first quarter of 2016. The Company estimates the annualized decrease of operating expenses related to the restructuring will be $9,400. On March 7, 2016, the Company signed a new supply and development agreement with the Company’s test card supplier, MiniFAB. The agreement is an exclusive supply agreement through June 2021, which will provide 16% savings on the purchase and delivery of individual osmolarity test cards following a transition period to account for ending inventory at December 31, 2015 and other elements of the prior agreement. The savings consist of lower prices for the purchase of the test cards and for freight costs to ship the cards to the Company’s distribution facility. The lower purchase price will remain in place until the earlier of, the Company reaches an annual volume of 4.5 million test cards or March 31, 2018. The savings from freight costs will remain in place throughout the agreement. The agreement can be extended by either party for a term of five years with the option for the Company to buyout the exclusive supply provision during any extended term.

Quarterly Financial Data (Unaud

Quarterly Financial Data (Unaudited)	12 Months Ended
	Dec. 31, 2015
Quarterly Financial Information Disclosure [Abstract]
Quarterly Financial Data (Unaudited)	14. QUARTERLY FINANCIAL DATA (UNAUDITED) The following tables in the opinion of management, reflect all adjustments, consisting of normal recurring adjustments necessary for the fair presentation of results for the periods presented (in thousands, except per share data): Fiscal 2015 Quarter Ended March 31 June 30 September 30 December 31 Revenue $ 5,408 $ 6,345 $ 6,612 $ 6,791 Loss from operations (8,071 ) (7,702 ) (7,543 ) (8,193 ) Net loss $ (8,168 ) $ (8,072 ) $ (8,064 ) $ (8,925 ) Weighted average number of shares outstanding, basic 33,643 33,658 33,729 33,761 Net loss per common share basic $ (0.24 ) $ (0.24 ) $ (0.24 ) $ (0.26 ) Weighted average number of shares outstanding diluted 33,693 33,704 33,774 33,761 Net loss per common share diluted $ (0.25 ) $ (0.24 ) $ (0.24 ) $ (0.26 ) Fiscal 2014 Quarter Ended March 31 June 30 September 30 December 31 Revenue $ 4,211 $ 4,999 $ 5,212 $ 5,297 Loss from operations (5,922 ) (5,885 ) (6,114 ) (7,083 ) Net loss $ (5,557 ) $ (5,439 ) $ (5,785 ) $ (6,941 ) Weighted average number of shares outstanding, basic 33,550 33,585 33,589 33,591 Net loss per common share basic $ (0.17 ) $ (0.16 ) $ (0.17 ) $ (0.21 ) Weighted average number of shares outstanding diluted 33,732 33,721 33,712 33,662 Net loss per common share diluted $ (0.17 ) $ (0.17 ) $ (0.18 ) $ (0.21 ) (i) Net loss per share basic and diluted are computed independently for the quarters presented. Therefore, the sum of the quarterly per share information may not be equal to the annual per share information. Also totals may not add to the financial statements due to rounding.

Significant Accounting Polici21

Significant Accounting Policies (Policies)	12 Months Ended
	Dec. 31, 2015
Accounting Policies [Abstract]
Use of Estimates	Use of estimates The preparation of financial statements in conformity with U.S. Generally Accepted Accounting Principles (‘‘GAAP’’) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenue and expenses during the reporting periods. Actual results could differ from those estimates. The principal areas of judgment relate to revenue returns reserve, allowance for doubtful accounts, slow-moving or obsolete inventory, impairment of long-lived and intangible assets, and the fair value of stock options and warrants.
Concentrations and Risk	Concentrations and risk Credit risk Financial instruments, which potentially subject the Company to concentrations of credit risk, consist primarily of cash and accounts receivable. The Company limits its exposure to credit loss by placing its cash with high credit quality financial institutions. During 2015, 2014 and 2013, the Company derived its revenue from the sale of the TearLab ® Currently, there are two suppliers for the reader and pen components of the TearLab® Osmolarity System and one supplier for the test cards. The Company expects to maintain the relationships with these suppliers.
Fair Value of Financial Instruments	Fair value of financial instruments The Company’s financial instruments consist principally of cash and cash equivalents, accounts receivable, accounts payable, accrued expenses and term debt. The carrying amounts of financial instruments such as cash equivalents, accounts receivable, accounts payable and accrued expenses approximate the related fair values due to the short-term maturities of these instruments. The term debt is presented net of any unamortized premiums or discounts, which approximates fair value.
Cash and Cash Equivalents	Cash and cash equivalents The Company considers all highly liquid investments that are readily convertible into cash and have an original maturity of three months or less at the time of purchase to be cash equivalents.
Accounts Receivable and Allowance for Doubtful Accounts	Accounts receivable and allowance for doubtful accounts The Company’s accounts receivable consist primarily of trade receivables from customers and are generally unsecured and due within 30 days. The carrying value of accounts receivable approximates their fair value due to their short term nature. The Company evaluates the collectability of its accounts receivable based on a combination of factors and calculates an allowance for doubtful accounts based on the estimated proportion of aged receivables deemed uncollectable. Expected credit losses related to trade receivables are recorded as an allowance for doubtful accounts. The allowance for doubtful accounts is charged to sales and marketing expense and accounts receivable are written off as uncollectible and deducted from the allowance after appropriate collection efforts have been exhausted. The allowance for doubtful accounts was $589 and $424 at December 31, 2015 and 2014, respectively. Charges for bad debt expense have been $271, $121 and $377 for the years ended December 31, 2015, 2014 and 2013, respectively.
Inventory	Inventory Inventory is recorded at the lower of cost (based on first in, first out basis) or market and consists of purchased finished goods. Inventory is periodically reviewed for evidence of slow-moving or obsolete items, and the estimated reserve is based on management’s reviews of inventories on hand, compared to estimated future usage and sales, reviewing product shelf-life, and assumptions about the likelihood of obsolescence. Once written down, the adjustments are considered permanent and are not reversed until the related inventory is sold.
Fixed Assets	Fixed assets Property and equipment are carried at cost less accumulated depreciation and amortization. Depreciation is computed using the straight-line method over the estimated useful lives of the assets, ranging from three to seven years. Maintenance and repairs are expensed as incurred. The Company reviews property and equipment for impairment whenever events or changes in circumstances indicate that the carrying value of an asset may not be recoverable. An impairment loss would be recognized when estimated future undiscounted cash flows relating to the asset are less than its carrying amount. An impairment loss is measured as the amount by which the carrying amount of an asset exceeds its fair value.
Impairment of Long-Lived Assets	Impairment of long-lived assets The Company periodically assesses the carrying value of intangible and other long-lived assets, and whenever events or changes in circumstances indicate that the carrying amount of an asset might not be recoverable. The assets are considered to be impaired if the Company determines that the carrying value may not be recoverable based upon its assessment, which includes consideration of the following events or changes in circumstances: ● the asset’s ability to continue to generate income from operations and positive cash flow in future periods; ● loss of legal ownership or title to the asset; ● significant changes in the Company’s strategic business objectives and utilization of the asset(s); and ● the impact of significant negative industry or economic trends. If the assets are considered to be impaired, the impairment recognized is the amount by which the carrying value of the assets exceeds the fair value of the assets. Fair value is determined by the application of discounted cash flow models to project cash flows from the asset. In addition, the Company bases the useful lives and related amortization or depreciation expense on an estimate of the period that the assets will generate revenue or otherwise be used. The Company also periodically reviews the lives assigned to long-lived assets to ensure that the initial estimates do not exceed any revised estimated periods from which the Company expects to realize cash flows from its assets.
Patents and Trademarks	Patents and trademarks Patents and trademarks are recorded at historical cost and are amortized using the straight-line method over their estimated useful lives, not to exceed 15 years.
Intangible Assets	Intangible Assets Intangible assets are recorded at historical cost and are amortized using the straight-line method over their estimated useful life.
Product Warranties	Product Warranties The Company generally provides a one year warranty on its TearLab® Osmolarity System and related disposables. The Company accrues the estimated cost of this warranty at the time revenue is recognized and charges warranty expense to cost of goods sold. Warranty reserves are established based on historical experience with failure rates and the number of systems covered by warranty. Warranty reserves are depleted as systems and disposables are replaced. The Company reviews warranty reserves quarterly and, if necessary, make adjustments. The activities in the warranty reserve are as follows: Balance at the beginning of the year $ 121 $ 180 $ 107 Charges to cost of goods sold 73 79 271 Costs applied to liability (100 ) (138 ) (198 ) Balance at the end of the year $ 94 $ 121 $ 180
Income Taxes	Income Taxes A deferred tax asset or liability is determined based on the difference between the financial statement and tax basis of assets and liabilities as measured by the enacted tax rates which will be in effect when these differences reverse. The Company provides a valuation allowance against net deferred tax assets unless, based upon the available evidence, it is more likely than not that the deferred tax assets will be realized.
Revenue Recognition	Revenue recognition Revenue is recognized when all four of the following criteria are met: (i) persuasive evidence that an arrangement exists; (ii) delivery of the products has occurred; (iii) the selling price is fixed or determinable; and (iv) collectability is reasonably assured. The Company records revenue when all of its obligations are completed, which is generally upon shipment of the Company’s products. Amounts received in excess of revenue recognizable are deferred. The Company sells its proprietary TearLab® Osmolarity System and related test cards to external customers, who are primarily eye care professionals, for use in osmolarity testing procedures. Revenue is primarily derived from the sale of disposable test cards. Products are generally shipped from a distribution and warehousing facility located in San Diego, California. The Company’s sales are currently direct to customers in the United States and Canada and to distributors in South America, Europe, Asia and Australia. The Company enters into contracts where revenue is derived either from agreements whereby the customer is provided the right to use the TearLab® Osmolarity System (reader equipment) at no separate cost to the customer in consideration for a minimum purchase commitment of disposable test cards over the related contract term (referred to as either “Use Agreements”, “Masters Agreements” or “Flex Agreements”), or from agreements with sales of multiple deliverables, such as the reader equipment and disposable test cards (referred to as “Purchase Agreements”). On a limited basis, the Company sells reader equipment or disposable test cards on a stand-alone basis, primarily in academic settings. Purchase commitments for Use Agreements and Flex Agreements are expressed in the agreement for a specified period of time (generally one to three years). The purchase commitment for Masters Agreements is implied for large physician practices with an expectation of purchasing certain levels of test cards. The Company recovers the cost of providing the reader equipment in the amount charged for disposable test cards. These agreements are treated as operating leases as collectability of the minimum lease payments is not reasonably predictable at the outset of the arrangement. Accordingly, revenue is recognized over the defined contract term as disposable test cards are shipped. Revenue under such agreements is allocated between the lease of the reader equipment and the sale of the disposables based upon each component’s relative fair value. When reader equipment is placed with a customer at no separate cost, the Company retains title to the equipment and it remains capitalized on the Company’s Consolidated Balance Sheet as equipment classified within fixed assets, net. The equipment is depreciated on a straight-line basis once shipped to a customer location over its estimated useful life and depreciation expense is included in cost of goods sold within the Consolidated Statements of Operations and Comprehensive Loss. Revenue recognition for Purchase Agreements with multiple deliverables is based on the individual units of accounting determined to exist in the contract. A delivered item is considered a separate unit of accounting when the delivered item has value to the customer on a stand-alone basis. Items are considered to have stand-alone value when they are sold separately by any vendor or when the customer could resell the item on a stand-alone basis. Considering that test cards are essential to the operation of a TearLab reader, there is no alternative vendor for the test cards and no indication that a secondary market for the TearLab readers is established, the deliverables under the contracts entered into during 2015, 2014 and 2013 do not meet criteria for separation under the multiple-element arrangements guidance. Consideration is allocated at the inception of the contract to all deliverables based on their relative selling price, as determined by the selling price of similar individual items on a stand-alone basis. The Company recognizes revenue for each of the elements only when it determines that all applicable recognition criteria have been met. Amounts billed to customers for shipping and handling of a sales transaction are included as revenue. For the years ended December 31, 2015, 2014 and 2013, the Company recognized revenue from shipping and handling of $194, $190 and $187, respectively. Although the Company has a no return policy for its products, the Company has established a return reserve for product sales that contain an implicit right of return. The Company reserves for estimated returns or refunds by reducing revenue at the time of shipment based on historical experience. The reserve of $67 and $77 as of December 31, 2015 and 2014, respectively, has been recorded as a reduction of revenue and is included in accounts receivable.
Cost of Goods Sold	Cost of goods sold Cost of goods sold includes the costs the Company incurs for the purchase of the TearLab® Systems sold and related freight and shipping costs, fees related to warehousing and logistics inventory management associated with conducting business and depreciation of reader equipment. The Company recorded $1,489, $1,109 and $912 in shipping and handling fees for the years ended December 31, 2015, 2014 and 2013, respectively.
Clinical, Regulatory and Research & Development Costs	Clinical, regulatory and research & development costs Clinical and regulatory costs attributable to the performance of contract services are recognized as an expense as the services are performed. Non-refundable, up-front fees paid in connection with these contracted services are deferred and recognized as an expense over the estimated term of the related contract.
Stock-based Compensation	Stock-based compensation The Company accounts for stock-based compensation expense for its directors and employees in accordance with US GAAP guidance related to stock-based compensation. Under this guidance, stock-based compensation cost is estimated at the grant date based on the fair value of the award and is recognized as an expense ratably over the requisite service period of the award. The Company uses the Black-Scholes Merton option pricing model for determining the fair value for all its awards and will recognize compensation cost on a straight-line basis over the awards’ vesting periods.
Advertising Costs	Advertising Costs Advertising costs are expensed as incurred. Total advertising costs for each of the years ended December 31, 2015, 2014 and 2013 were $442, $325 and $386, respectively.
Warrant Liabilities	Warrant liabilities The Company issued several rounds of warrants related to various debt and equity transactions which occurred in 2011. The Company accounts for its warrants issued in accordance with the US GAAP accounting guidance under Accounting Standards Codification (ASC) 815 applicable to derivative instruments, which requires every derivative instrument within its scope to be recorded on the balance sheet as either an asset or liability measured at its fair value, with changes in fair value recognized in earnings. Based on this guidance, the Company determined that the Company’s warrants do not meet the criteria for classification as equity. Accordingly, the Company classified the warrants as current liabilities. The warrants are subject to remeasurement at each balance sheet date with any change in fair value recognized as a component of other income (expense), in the statements of operations and comprehensive loss. Warrants are also remeasured at fair value immediately prior to being exercised, and the resulting fair value is reclassified into additional paid-in capital, net of any applicable exercise proceeds. The Company estimated the fair value of these warrants at the respective balance sheet dates using the Black-Scholes Merton option pricing model based on the estimated market value of the underlying common stock at the valuation measurement date, the remaining contractual term of the warrant, risk-free interest rates and expected dividends on and expected volatility of the price of the underlying common stock.
Foreign Currency Transactions	Foreign currency transactions The Company’s functional and reporting currency is the U.S. dollar. The assets and liabilities of the Company’s Canadian operations are maintained in U.S. dollars. Monetary assets and liabilities denominated in foreign currencies are translated into U.S. dollars at exchange rates in effect at the consolidated balance sheet dates, and non-monetary assets and liabilities are translated at exchange rates in effect on the date of the transaction. Revenue and expenses are translated into U.S. dollars at average exchange rates prevailing during the year. Resulting exchange gains (losses) of $76, ($35) and ($131) are included in other income (expense) for the years ended December 31, 2015, 2014 and 2013, respectively.
Geographic Information	Geographic information The following table provides geographic information related to the Company’s revenue based on the geographic location to which we deliver the product: For the year ended December 31, 2015 2014 2013 United States $ 23,597 $ 18,589 $ 13,844 Canada 268 200 121 Rest of the world 1,291 929 680 Total $ 25,156 $ 19,718 $ 14,645
Comprehensive loss	Comprehensive loss Comprehensive income (loss) is defined as the change in equity during a period from transactions and other events and circumstances from non-owner sources. Comprehensive income (loss) generally includes unrealized gains or losses on the Company’s marketable securities and foreign currency translation adjustments. In all the periods presented, the Company’s comprehensive loss equaled net loss for the period.
Net Loss Per Share	Net loss per share Basic earnings per share (‘‘EPS’’) excludes dilutive securities and is computed by dividing net loss available to common stockholders by the weighted average number of shares of common stock outstanding for the year. Diluted EPS reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted and the resulting additional shares are dilutive because their inclusion decreases the amount of EPS. The following are potentially dilutive securities which have not been used in the calculation of diluted loss per share as they are anti-dilutive: December 31, 2015 2014 2013 Stock options 6,919,102 6,363,126 5,536,795 Warrants 424,063 74,063 598,612 Total 7,343,165 6,437,189 6,135,407 The following table is a reconciliation of the weighted average shares outstanding used for basic and diluted loss per share: December 31, 2015 2014 2013 Weighted average shares outstanding - basic 33,698,086 33,578,820 30,759,305 Dilutive potential common shares 33,721 138,524 - Weighted average shares outstanding - fully diluted 33,731,807 33,717,344 30,759,305
Recent Accounting Pronouncements	Recent accounting pronouncements In May 2014, the Financial Accountings Standards Board (the “FASB”) issued Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers, which requires an entity to recognize revenue to depict the transfer of goods or services to a customer at an amount that reflects the consideration it expects to receive in exchange for those goods or services. The new guidance is effective for annual and interim reporting periods beginning after December 15, 2017 and early adoption is not permitted. Companies may use either a full retrospective or a modified retrospective approach to adopt the new guidance. The Company has not yet completed its assessment of the impact of the new standard, including selection of transition alternatives, on the Company’s financial statements. In August 2014, the FASB issued guidance which requires management to assess an entity’s ability to continue as a going concern and to provide related disclosures in certain circumstances. Under the new guidance, disclosures are required when conditions give rise to substantial doubt about an entity’s ability to continue as a going concern within one year from the financial statement issuance date. The guidance is effective for annual periods ending after December 15, 2016, and all annual and interim periods thereafter. Early application is permitted. The adoption of this guidance will not have any impact on the Company’s financial position and results of operations. In April 2015, the FASB issued authoritative guidance that requires debt issuance costs related to a recognized debt liability to be presented on the balance sheet as a direct deduction from the debt liability rather than as an asset. While adoption of this guidance is required for fiscal years beginning after December 15, 2015, the Company elected to adopt this guidance early, as of March 31, 2015. In November 2015, the FASB issued new guidance on the balance sheet classification and presentation of deferred taxes. The guidance requires all deferred tax assets and liabilities, along with any valuation allowances, to be classified as noncurrent on the balance sheet. The guidance is effective for fiscal years beginning after December 15, 2016, with early adoption permitted. The Company elected to adopt this guidance prospectively as of December 31, 2015.

Significant Accounting Polici22

Significant Accounting Policies (Tables)	12 Months Ended
	Dec. 31, 2015
Accounting Policies [Abstract]
Schedule of Warranty Reserve Activities	The activities in the warranty reserve are as follows: Balance at the beginning of the year $ 121 $ 180 $ 107 Charges to cost of goods sold 73 79 271 Costs applied to liability (100 ) (138 ) (198 ) Balance at the end of the year $ 94 $ 121 $ 180
Schedule of Geographic Information Related to Revenue	The following table provides geographic information related to the Company’s revenue based on the geographic location to which we deliver the product: For the year ended December 31, 2015 2014 2013 United States $ 23,597 $ 18,589 $ 13,844 Canada 268 200 121 Rest of the world 1,291 929 680 Total $ 25,156 $ 19,718 $ 14,645
Schedule of Antidilutive Securities Excluded from Computation of Earnings per Share	The following are potentially dilutive securities which have not been used in the calculation of diluted loss per share as they are anti-dilutive: December 31, 2015 2014 2013 Stock options 6,919,102 6,363,126 5,536,795 Warrants 424,063 74,063 598,612 Total 7,343,165 6,437,189 6,135,407
Schedule of Reconciliation of Weighted Average Shares Outstanding for Basic and Diluted Loss Per Share	The following table is a reconciliation of the weighted average shares outstanding used for basic and diluted loss per share: December 31, 2015 2014 2013 Weighted average shares outstanding - basic 33,698,086 33,578,820 30,759,305 Dilutive potential common shares 33,721 138,524 - Weighted average shares outstanding - fully diluted 33,731,807 33,717,344 30,759,305

Balance Sheet Details (Tables)

Balance Sheet Details (Tables)	12 Months Ended
	Dec. 31, 2015
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Schedule of Accounts Receivable	Accounts receivable December 31, 2015 2014 Trade receivables $ 3,610 $ 2,904 Allowance for doubtful accounts (589 ) (424 ) $ 3,021 $ 2,480
Schedule of Inventory	Inventory December 31, 2015 2014 Finished goods $ 4,002 $ 2,990 Inventory reserves (30 ) (4 ) $ 3,972 $ 2,986
Summary of Prepaid Expenses and Other Current Assets	Prepaid expenses and other current assets December 31, 2015 2014 Prepaid trade shows $ 246 $ 177 Prepaid insurance 87 301 Manufacturing deposits 154 182 Subscriptions 128 82 Other fees and services 146 142 Other current assets 29 6 $ 790 $ 890
Schedule of Fixed Assets	Fixed assets, net December 31, 2015 2014 Capitalized TearLab equipment $ 8,349 $ 5,655 Leasehold improvements 61 51 Computer equipment and software 1,023 819 Furniture and office equipment 278 267 Medical equipment 431 426 $ 10,142 $ 7,218 Less accumulated depreciation (4,790 ) (2,714 ) $ 5,352 $ 4,504
Schedule of Patents and Trademarks	Patents and trademarks December 31, 2015 2014 Patents $ 236 $ 236 Trademarks 32 32 268 268 Accumulated amortization (216 ) (188 ) $ 52 $ 80
Schedule of Finite-Lived Intangible Assets Future Amortization Expense	Estimated future amortization expense related to intangible assets with finite lives at December 31, 2015 is as follows: Amortization of intangible assets 2016 $ 1,111 2017 34 $ 1,145
Schedule of Accrued Liabilities	Accrued liabilities December 31, 2015 2014 Due to professionals $ 256 $ 787 Due to employees and directors 2,130 1,589 Sales and use tax liabilities 231 221 Royalty liability 753 330 Warranty 94 119 Other 1,583 719 $ 5,047 $ 3,765

Intangible Assets (Tables)

Intangible Assets (Tables)	12 Months Ended
	Dec. 31, 2015
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of Amortization of Intangible Assets	Intangible assets subject to amortization consist of the following: Remaining Gross Value Gross Value Accumulated Amortization Accumulated Amortization Useful Life at Beginning at End of at Beginning Amortization at End of Net Book (Years) of Year Additions Impairments Year of Year Expense Year Value Year ended December 31, 2015 TearLab® technology 1 $ 12,172 $ - $ - $ 12,172 $ (9,892 ) $ (1,214 ) $ (11,106 ) $ 1,066 OcuHub platform technology - 1,564 - (1,029 ) 535 (248 ) (287 ) (535 ) - Prescriber list 2 - 90 - 90 - (11 ) (11 ) 79 Total $ 13,736 $ 90 $ (1,029 ) $ 12,797 $ (10,140 ) $ (1,512 ) $ (11,652 ) $ 1,145 Year ended December 31, 2014 TearLab® technology 2 $ 12,172 $ - $ - $ 12,172 $ (8,678 ) $ (1,214 ) $ (9,892 ) $ 2,280 OcuHub platform technology 4 - 1,564 - 1,564 - (248 ) (248 ) 1,316 Total $ 12,172 $ 1,564 $ - $ 13,736 $ (8,678 ) $ (1,462 ) $ (10,140 ) $ 3,596
Schedule of Estimated Amortization Expense of Intangible Assets	Estimated future amortization expense related to intangible assets with finite lives at December 31, 2015 is as follows: Amortization of intangible assets 2016 $ 1,111 2017 34 $ 1,145

Income Taxes (Tables)

Income Taxes (Tables)	12 Months Ended
	Dec. 31, 2015
Income Tax Disclosure [Abstract]
Schedule of Loss from Continuing Operations Before Income Tax	Geographic sources of loss from continuing operations before income tax are as follows: December 31, 2015 2014 2013 Domestic $ 32,099 $ 22,768 $ 28,155 Foreign 1,130 954 835 Loss before income taxes $ 33,229 $ 23,722 $ 28,990
Schedule of Deferred Tax Assets and Liabilities	Significant components of the Company’s deferred tax assets and liabilities are as follows: December 31, 2015 2014 Deferred tax assets Intangible assets $ 1,307 $ 446 Stock options 3,615 3,120 Accruals and others 1,060 848 Net operating loss carryforwards 30,200 21,345 36,182 25,759 Valuation allowance (36,182 ) (24,971 ) Deferred tax asset $ - $ 788 Deferred tax liability Intangible assets $ - $ (788 ) Deferred tax liability $ - $ (788 ) Deferred taxes, net $ - $ -
Schedule of Effective Income Tax Rate Reconciliation	The following is a reconciliation of the recovery of income taxes between those that are expected, based on enacted tax rates and laws, to those currently reported: December 31, 2015 2014 2013 Loss for the year before income taxes $ (33,229 ) $ (23,722 ) $ (28,990 ) Expected recovery of income taxes $ (11,298 ) $ (8,064 ) $ (9,856 ) State income tax, net of federal benefit (518 ) (438 ) (440 ) Stock based compensation 239 189 204 Warrants (75 ) (400 ) 3,776 Deferred state tax rate adjustment (227 ) (151 ) 899 Expiration of options - - 3,761 Adjustments to deferred tax assets 552 47 1,138 Non-deductible expense and other 118 90 112 Change in valuation allowance 11,209 8,727 406 Total recovery of income taxes $ - $ - $ -

Term Loan (Tables)

Term Loan (Tables)	12 Months Ended
	Dec. 31, 2015
Debt Disclosure [Abstract]
Schedule of Term Loan	The following is a summary of the Term Loan Agreement as of December 31, 2015 and related maturities of outstanding principle: Prinicple balance outstanding $ 25,000 PIK interest 681 less discount on term loan: deferred financing fees, net (532 ) fair value of detachable warrants, net (290 ) Total term loan $ 24,859
Schedule of Maturities of Outstanding Principle of Term Loan	Principal due for each of the next 5 years and in the aggregate thereafter: 2016 $ - 2017 - 2018 - 2019 12,841 2020 12,840 Total principal due 25,681 Less: discount on term loan (822 ) Total term loan $ 24,859

Commitments and Contingencies (

Commitments and Contingencies (Tables)	12 Months Ended
	Dec. 31, 2015
2006 Agreement [Member]
Schedule of Future Minimum Payments	Future minimum royalty payments under this agreement as of December 31, 2015 are approximately as follows: 2016 $ 35 2017 35 2018 35 2019 35 2020 35 Thereafter 245 Total $ 420
2003 Agreement [Member]
Schedule of Future Minimum Payments	Future minimum royalty payments under this agreement as of December 31, 2015 are approximately as follows: 2016 $ 35 2017 35 2018 35 2019 35 2020 35 Thereafter 245 Total $ 420
2014 Agreement [Member]
Schedule of Future Minimum Payments	Future payments under the Marketing Agreement are as follows: 2016 $ 100 2017 100 2018 100 2019 25 Total $ 325

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	12 Months Ended
	Dec. 31, 2015
Fair Value Disclosures [Abstract]
Fair Value Liabilities Measured on Recurring Basis Unobservable Input Reconciliation	The following table provides a reconciliation for all liabilities measured at fair value using significant unobservable inputs (Level 3) for the years ending December 31, 2015 and 2014: Fair Value Measurements Using Significant Unobservable Inputs (Level 3) Balance of warrant liability at January 1, 2014 $ 4,047 Reclassification of warrant liability to stockholders' equity upon exercise (2,616 ) Change in fair value of warrant liability included in other (income)/expense (1,175 ) Balance of warrant liability at December 31, 2014 256 Change in fair value of warrant liability included in other (income)/expense (227 ) Balance of warrant liability at December 31, 2015 $ 29

Capital Stock (Tables)

Capital Stock (Tables)	12 Months Ended
	Dec. 31, 2015
Schedule of Stock-Based Compensation Expense	The following table sets forth the total stock-based compensation expense resulting from stock options and the employee stock purchase plan included in the Company’s consolidated statements of consolidated loss: Years ended December 31, 2015 2014 2013 General and administrative $ 2,014 $ 2,437 $ 1,837 Clinical, regulatory and research and development 472 159 174 Sales and marketing 1,634 1,228 1,727 Stock-based compensation expense before income taxes $ 4,120 $ 3,824 $ 3,738
Schedule of Options Outstanding Activity	A summary of the options issued during the year ended December 31, 2015 and the total number of options outstanding as of that date and changes since December 31, 2012 are set forth below: Weighted Average Number of Weighted Remaining Aggregate Options Average Contractual Intrinsic Value Outstanding Exercise Price Life (years) (in thousands) Outstanding, December 31, 2012 4,099,342 $ 3.54 7.14 $ 6,799 Granted 1,837,500 9.78 Exercised (181,854 ) 2.52 Forfeited/cancelled/expired (218,193 ) 11.07 Outstanding, December 31, 2013 5,536,795 4.91 6.89 27,256 Granted 1,412,500 4.63 Exercised (57,763 ) 3.18 Forfeited/cancelled/expired (528,406 ) 11.10 Outstanding, December 31, 2014 6,363,126 4.76 6.57 2,155 Granted 1,285,455 2.09 Exercised (65,391 ) 1.52 Forfeited/cancelled/expired (664,088 ) 6.10 Outstanding, December 31, 2015 6,919,102 $ 4.16 6.08 $ 184 Vested or expected to vest, December 31, 2015 5,278,889 $ 4.20 5.41 $ 184 Exerciseable, December 31, 2015 4,948,032 $ 4.16 4.95 $ 184
Schedule of Warrants Outstanding Activity	The following table provides activity for warrants issued and outstanding during the two years ended December 31, 2015: Number of Weighted average warrants exercise outstanding price Outstanding, December 31, 2013 598,612 $ 1.83 Exercised (304,945 ) 1.86 Expired - - Outstanding, December 31, 2014 293,667 1.79 Issued 350,000 5.00 Exercised - - Expired - - Outstanding, December 31, 2015 643,667 $ 3.54
Employee Stock Option [Member]
Schedule of Estimated Fair Value of Options Using Weighted Average Assumptions	The estimated fair value of stock options for the periods presented was determined using the Black-Scholes Merton option pricing model with the following weighted-average assumptions: Years ended December 31, 2015 2014 2013 Volatility 89 % 87 % 101 % Weighted average expected life of the options 5.39 years 5.84 years 5.89 years Risk-free interest rate 1.60 % 1.57 % 1.43 % Dividend yield 0.00 % 0.00 % 0.00 %
Employee Stock Purchase Plan [Member]
Schedule of Estimated Fair Value of Options Using Weighted Average Assumptions	The fair value of each purchase option under the ESPP is estimated at the beginning of each six-month offering period using the Black-Scholes model with the following weighted-average assumptions: Years ended December 31, 2015 2014 Volatility 73 % 64 % Weighted average expected life of the options 0.5 years 0.5 years Risk-free interest rate 0.11 % 0.07 % Dividend yield 0.00 % 0.00 %

Consolidated Statements of Ca30

Consolidated Statements of Cash Flows (Tables)	12 Months Ended
	Dec. 31, 2015
Supplemental Cash Flow Elements [Abstract]
Summary of Cash Flow Operating Capital	The net change in working capital and non-current asset balances related to operations consists of the following: Years ended December 31, 2015 2014 2013 Accounts receivable, net $ (540 ) $ 1,044 $ (2,635 ) Inventory (987 ) (2,101 ) 978 Prepaid expenses and other assets 100 (162 ) (252 ) Other non-current assets (24 ) (117 ) (12 ) Accounts payable 90 1,340 (436 ) Accrued liabilities 1,318 (147 ) 1,329 Deferred interest 681 - - Deferred rent/revenue (60 ) 106 67 $ 578 $ (37 ) $ (961 )

Quarterly Financial Data (Una31

Quarterly Financial Data (Unaudited) (Tables)	12 Months Ended
	Dec. 31, 2015
Quarterly Financial Data Tables
Schedule of Quarterly Financial Data	The following tables in the opinion of management, reflect all adjustments, consisting of normal recurring adjustments necessary for the fair presentation of results for the periods presented (in thousands, except per share data): Fiscal 2015 Quarter Ended March 31 June 30 September 30 December 31 Revenue $ 5,408 $ 6,345 $ 6,612 $ 6,791 Loss from operations (8,071 ) (7,702 ) (7,543 ) (8,193 ) Net loss $ (8,168 ) $ (8,072 ) $ (8,064 ) $ (8,925 ) Weighted average number of shares outstanding, basic 33,643 33,658 33,729 33,761 Net loss per common share basic $ (0.24 ) $ (0.24 ) $ (0.24 ) $ (0.26 ) Weighted average number of shares outstanding diluted 33,693 33,704 33,774 33,761 Net loss per common share diluted $ (0.25 ) $ (0.24 ) $ (0.24 ) $ (0.26 ) Fiscal 2014 Quarter Ended March 31 June 30 September 30 December 31 Revenue $ 4,211 $ 4,999 $ 5,212 $ 5,297 Loss from operations (5,922 ) (5,885 ) (6,114 ) (7,083 ) Net loss $ (5,557 ) $ (5,439 ) $ (5,785 ) $ (6,941 ) Weighted average number of shares outstanding, basic 33,550 33,585 33,589 33,591 Net loss per common share basic $ (0.17 ) $ (0.16 ) $ (0.17 ) $ (0.21 ) Weighted average number of shares outstanding diluted 33,732 33,721 33,712 33,662 Net loss per common share diluted $ (0.17 ) $ (0.17 ) $ (0.18 ) $ (0.21 ) (i) Net loss per share basic and diluted are computed independently for the quarters presented. Therefore, the sum of the quarterly per share information may not be equal to the annual per share information. Also totals may not add to the financial statements due to rounding.

Basis of Presentation (Details

Basis of Presentation (Details Narrative) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2014	Sep. 30, 2014	Jun. 30, 2014	Mar. 31, 2014	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Net income loss	$ 8,925	$ 8,064	$ 8,072	$ 8,168	$ 6,941	$ 5,785	$ 5,439	$ 5,557	$ 33,229	$ 23,722	$ 28,990
Working capital surplus	14,139								14,139
Cash and cash equivalents	$ 13,838				$ 16,338				13,838	$ 16,338	$ 37,778	$ 15,437
Third Tranche [Member]
Proceeds from issuance of long-term debt									10,000
II Quarter of 2016 [Member]
Change in cash and cash equivalents									$ 5,000

Significant Accounting Polici33

Significant Accounting Policies (Details Narrative) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Percentage of revenue during the period	10.00%	10.00%	10.00%
Allowance of doubtful accounts	$ 589	$ 424
Bad debt expense	$ 271	121	$ 377
Product warranty term	1 year
Shipping and handling revenue	$ 194	190	187
Reserve of product sales	67	77
Shipping and handling fees	1,489	1,109	912
Advertising costs	442	325	386
Foreign currency transactions exchange gains (losses)	$ 76	$ (35)	$ (131)
Patents And Trademarks [Member]
Patents and trademarks estimated useful life	10 years
Minimum [Member]
Estimated useful life of fixed assets	3 years
Maximum [Member]
Estimated useful life of fixed assets	7 years
Maximum [Member] | Patents And Trademarks [Member]
Patents and trademarks estimated useful life	15 years

Significant Accounting Polici34

Significant Accounting Policies - Schedule of Warranty Reserve Activities (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Accounting Policies [Abstract]
Balance at the beginning of the year	$ 121	$ 180	$ 107
Charges to cost of goods sold	73	79	271
Costs applied to liability	(100)	(138)	(198)
Balance at the end of the year	$ 94	$ 121	$ 180

Significant Accounting Polici35

Significant Accounting Policies - Schedule of Geographic Information Related to Revenue (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2014	Sep. 30, 2014	Jun. 30, 2014	Mar. 31, 2014	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Revenues	$ 6,791	$ 6,612	$ 6,345	$ 5,408	$ 5,297	$ 5,212	$ 4,999	$ 4,211	$ 25,156	$ 19,718	$ 14,645
United States [Member]
Revenues									23,597	18,589	13,844
Canada [Member]
Revenues									268	200	121
Rest of the World [Member]
Revenues									$ 1,291	$ 929	$ 680

Significant Accounting Polici36

Significant Accounting Policies - Schedule of Antidilutive Securities Excluded from Computation of Earnings per Share (Details) - shares	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Antidilutive securities	7,343,165	6,437,189	6,135,407
Stock Options [Member]
Antidilutive securities	6,919,102	6,363,126	5,536,795
Warrant [Member]
Antidilutive securities	424,063	74,063	598,612

Significant Accounting Polici37

Significant Accounting Policies - Schedule of Reconciliation of Weighted Average Shares Outstanding for Basic and Diluted Loss Per Share (Details) - shares	3 Months Ended								12 Months Ended
	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2014	Sep. 30, 2014	Jun. 30, 2014	Mar. 31, 2014	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Accounting Policies [Abstract]
Weighted average shares outstanding - basic	33,761	33,729	33,658	33,643	33,591	33,589	33,585	33,550	33,698,086	33,578,820	30,759,305
Dilutive potential common shares									33,721	138,524
Weighted average shares outstanding - fully diluted	33,761	33,774	33,704	33,693	33,662	33,712	33,721	33,732	33,731,807	33,717,344	30,759,035

Balance Sheet Details (Details

Balance Sheet Details (Details Narrative) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Depreciation expense	$ 2,075	$ 1,448	$ 624
Assets impairment charges	343
Amortization of patents and trademarks	$ 28	$ 28	$ 28
Patents And Trademarks [Member]
Patents and trademarks estimated useful life	10 years

Balance Sheet Details - Schedul

Balance Sheet Details - Schedule of Accounts Receivable (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Trade receivables	$ 3,610	$ 2,904
Allowance for doubtful accounts	(589)	(424)
Accounts receivable net	$ 3,021	$ 2,480

Balance Sheet Details - Sched40

Balance Sheet Details - Schedule of Inventory (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Finished goods	$ 4,002	$ 2,990
Inventory reserves	(30)	(4)
Inventory net	$ 3,972	$ 2,986

Balance Sheet Details - Summary

Balance Sheet Details - Summary of Prepaid Expenses and Other Current Assets (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Prepaid trade shows	$ 246	$ 177
Prepaid insurance	87	301
Manufacturing deposits	154	182
Subscriptions	128	82
Other fees and services	146	142
Other current assets	29	6
Prepaid expense and other current assets	$ 790	$ 890

Balance Sheet Details - Sched42

Balance Sheet Details - Schedule of Fixed Assets (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Property plant and equipment gross	$ 10,142	$ 7,218
Less accumulated depreciation	(4,790)	(2,714)
Property plant and equipment net	5,352	4,504
Capitalized TearLab Equipment [Member]
Property plant and equipment gross	8,349	5,655
Leasehold Improvements [Member]
Property plant and equipment gross	61	51
Computer Equipment and Software [Member]
Property plant and equipment gross	1,023	819
Furniture and Office Equipment [Member]
Property plant and equipment gross	278	267
Medical Equipment [Member]
Property plant and equipment gross	$ 431	$ 426

Balance Sheet Details - Sched43

Balance Sheet Details - Schedule of Patents and Trademarks (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Finite-lived intangible assets gross	$ 268	$ 268
Accumulated amortization	(216)	(188)
Finite-lived intangible assets net	52	80
Patents [Member]
Finite-lived intangible assets gross	236	236
Trademarks [Member]
Finite-lived intangible assets gross	$ 32	$ 32

Balance Sheet Details - Sched44

Balance Sheet Details - Schedule of Finite-Lived Intangible Assets Future Amortization Expense (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Finite-lived intangible assets net	$ 52	$ 80
Patents And Trademarks [Member]
2,015	28
2,016	24
Finite-lived intangible assets net	$ 52

Balance Sheet Details - Sched45

Balance Sheet Details - Schedule of Accrued Liabilities (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Due to professionals	$ 256	$ 787
Due to employees and directors	2,130	1,589
Sales and use tax liabilities	231	221
Royalty liability	753	330
Warranty	94	119
Other	1,583	719
Accrued liabilities current	$ 5,047	$ 3,765

Intangible Assets (Details Narr

Intangible Assets (Details Narrative) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Amortization of intangible assets	$ 1,501	$ 1,462	$ 1,215
Impairment of intangible assets	$ 1,029
TearLab Technology [Member]
Intangible asset, estimated useful life	10 years
Amortization of intangible assets	$ 1,214	$ 1,214
Impairment of intangible assets
OcuHub Platform Technology [Member]
Amortization of intangible assets	$ 287	$ 248
Impairment of intangible assets	$ 1,029

Intangible Assets - Schedule of

Intangible Assets - Schedule of Amortization of Intangible Assets (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Gross Value at Beginning of Year	$ 13,736	$ 12,172
Additions	90	$ 1,564
Impairments	(1,029)
Gross Value at End of Year	12,797	$ 13,736	$ 12,172
Accumulated Amortization at Beginning of Year	(10,140)	(8,678)
Amortization Expense	(1,501)	(1,462)	(1,215)
Accumulated Amortization at End of Year	(11,652)	(10,140)	(8,678)
Net Book Value	$ 1,145	$ 3,596
TearLab Technology [Member]
Remaining Useful Life (Years)	1 year	2 years
Gross Value at Beginning of Year	$ 12,172	$ 12,172
Additions
Impairments
Gross Value at End of Year	$ 12,172	$ 12,172	12,172
Accumulated Amortization at Beginning of Year	(9,892)	(8,678)
Amortization Expense	(1,214)	(1,214)
Accumulated Amortization at End of Year	(11,106)	(9,892)	$ (8,678)
Net Book Value	$ 1,066	$ 2,280
OcuHub Platform Technology [Member]
Remaining Useful Life (Years)	0 years	4 years
Gross Value at Beginning of Year	$ 1,564
Additions		$ 1,564
Impairments	$ (1,029)
Gross Value at End of Year	535	$ 1,564
Accumulated Amortization at Beginning of Year	(248)
Amortization Expense	(287)	$ (248)
Accumulated Amortization at End of Year	$ (535)	(248)
Net Book Value		$ 1,316
Prescriber List [Member]
Remaining Useful Life (Years)	2 years
Gross Value at Beginning of Year
Additions	$ 90
Impairments
Gross Value at End of Year	$ 90
Accumulated Amortization at Beginning of Year
Amortization Expense	$ (11)
Accumulated Amortization at End of Year	(11)
Net Book Value	$ 79

Intangible Assets - Schedule 48

Intangible Assets - Schedule of Estimated Amortization Expense for Intangible Assets (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Goodwill and Intangible Assets Disclosure [Abstract]
2,016	$ 1,111
2,017	34
Total	$ 1,145	$ 3,596

Related Party Transactions (Det

Related Party Transactions (Details Narrative) - Vision Inc [Member] CAD in Thousands, $ in Thousands	Sep. 03, 2013CAD	Dec. 31, 2015USD ($)	Dec. 31, 2014USD ($)	Dec. 31, 2013USD ($)
One time payments to related party				$ 190
Royalty expense		$ 12	$ 11
Canadian Dollar [Member]
One time payments to related party | CAD	CAD 200
Percentage of royalty on sale of products	5.00%

Income Taxes (Details Narrative

Income Taxes (Details Narrative) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Percentage of uncertain income tax position less than likelihood of being sustained	50%
Unrecognized tax benefits	$ 0	$ 0
Uncertain tax positions, current	$ 0	0
Increase in ownership of certain stockholders or public groups in the stock of corporation	50.00%
Operating Loss Carryforwards Related To Stock Option Exercises [Member]
Operating loss carryforwards		$ 1,515
Federal [Member]
Operating loss carryforwards	$ 82,204
Operating loss carryforwards expiration date	2,028
State [Member]
Operating loss carryforwards	$ 56,744
Operating loss carryforwards expiration date	2,028
Canadian [Member]
Operating loss carryforwards	$ 9,234
Operating loss carryforwards expiration date	2,026

Income Taxes - Schedule of Loss

Income Taxes - Schedule of Loss from Continuing Operations Before Income Tax (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Income Tax Disclosure [Abstract]
Domestic	$ 32,099	$ 22,768	$ 28,155
Foreign	1,130	954	835
Loss before income taxes	$ 33,229	$ 23,722	$ 28,990

Income Taxes - Schedule of Defe

Income Taxes - Schedule of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Income Tax Disclosure [Abstract]
Intangible assets	$ 1,307	$ 446
Stock options	3,615	3,120
Accruals and other	1,060	848
Net operating loss carry forwards	30,200	21,345
Deferred tax assets gross	36,182	25,759
Valuation allowance	(36,182)	(24,971)
Deferred tax asset	$ 0	788
Intangible assets		(788)
Deferred tax liability		(788)
Deferred taxes, net		$ 0

Income Taxes - Schedule of Effe

Income Taxes - Schedule of Effective Income Tax Rate Reconciliation (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Income Tax Disclosure [Abstract]
Loss for the year before income taxes	$ (33,229)	$ (23,722)	$ (28,990)
Expected recovery of income taxes	(11,298)	(8,064)	(9,856)
State income tax, net of federal benefit	(518)	(438)	(440)
Stock-based compensation	239	189	204
Warrants	(75)	(400)	3,776
Deferred state tax rate adjustment	$ (227)	$ (151)	899
Expiration of options			3,761
Adjustment to deferred assets	$ 552	$ 47	1,138
Non-deductible expenses & other	118	90	112
Change in valuation allowance	$ 11,209	$ 8,727	$ 406
Total recovery of income taxes

Term Loan (Details Narrative)

Term Loan (Details Narrative) - USD ($) $ / shares in Units, $ in Thousands	Oct. 06, 2015	Mar. 04, 2015	Dec. 31, 2015	Dec. 31, 2014
Long-term debt			$ 24,859
Warrants to purchase common shares			219,604
Warrants exercise price			$ 1.86
Third Tranche [Member]
Proceeds from issuance of long-term debt			$ 10,000
Term Loan Agreement [Member] | CRG LP [Member]
Long-term debt		$ 35,000
Proceeds from issuance of long-term debt		$ 15,000
Debt instrument date		Dec. 31, 2020	Mar. 31, 2016
Debt instrument interest rate percentage		13.00%
Warrants to purchase common shares	350,000
Warrants exercise price	$ 5
Warrants term	5 years
Financing and legal fees to long-term debt			$ 606
Percentage of prepayment fee			5.00%
Percentage of reduction in annual prepayment fee			1.00%
Term loan minimum annual revenue threshold			$ 25,000
Term loan minimum cash balance			$ 5,000
Term Loan Agreement [Member] | CRG LP [Member] | Second Tranche [Member]
Proceeds from issuance of long-term debt	$ 10,000
Term Loan Agreement [Member] | CRG LP [Member] | Third Tranche [Member]
Proceeds from issuance of long-term debt		$ 10,000
Term loan agreement maximum borrowing capacity		$ 38,000
Term Loan Agreement [Member] | CRG LP [Member] | Interest-Only Payment [Member]
Debt instrument interest rate percentage		8.50%
Term Loan Agreement [Member] | CRG LP [Member] | Unpaid Interest With Principal [Member]
Debt instrument interest rate percentage		4.50%

Term Loan - Schedule of Term L

Term Loan - Schedule of Term Loan (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Debt Disclosure [Abstract]
Prinicple balance outstanding	$ 25,000
PIK interest	681
deferred financing fees, net	(532)
fair value of detachable warrants, net	(290)
Total term loan	$ 24,859

Term Loan - Schedule of Maturi

Term Loan - Schedule of Maturities of Outstanding Principle of Term Loan (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Debt Disclosure [Abstract]
2,016
2,017
2,018
2,019	$ 12,841
2,020	12,840
Total principal due	25,681
Less: discount on term loan	(822)
Total term loan	$ 24,859

Commitments and Contingencies57

Commitments and Contingencies (Details Narrative) AUD in Thousands, $ in Thousands	Apr. 02, 2014	Dec. 31, 2015USD ($)	Dec. 31, 2014USD ($)	Dec. 31, 2013USD ($)	Dec. 31, 2015AUD
Operating leases, future minimum payments due next twelve months		$ 381
Operating leases, future minimum payments due in two years		354
Operating leases, future minimum payments due in three years		181
Operating leases, rent expense		519	$ 344	$ 223
License fee		1,370	1,088	$ 807
Accrued royalties		734	$ 330
Patent License and Royalty Agreement 2006 [Member]
Royalty payments, minimum		$ 35
Royalty rate		5.50%
Patent License and Royalty Agreement 2006 [Member] | Before FDA Approval [Member]
Royalty rate		30.00%
Patent License and Royalty Agreement 2006 [Member] | After FDA Approval [Member]
Royalty rate		25.00%
MiniFAB [Member]
Long-term purchase commitment, period		10 years
AOA Excel, Inc [Member]
Agreed to pay AOA guaranteed minimum payments	25 per quarter
End Of 2015 [Member] | MiniFAB [Member]
Purchase commitment remaining minimum amount committed		$ 24,600
End Of 2015 [Member] | MiniFAB [Member] | AUD [Member]
Purchase commitment remaining minimum amount committed | AUD					AUD 30,200

Commitments and Contingencies -

Commitments and Contingencies - Schedule of Future Minimum Payments (Details) $ in Thousands	Dec. 31, 2015USD ($)
2006 Agreement [Member]
2,016	$ 35
2,017	35
2,018	35
2,019	35
2,020	35
Thereafter	245
Total	420
2003 Agreement [Member]
2,016	35
2,017	35
2,018	35
2,019	35
2,020	35
Thereafter	245
Total	420
2014 Agreement [Member]
2,016	100
2,017	100
2,018	100
2,019	$ 25
2,020
Thereafter
Total	$ 325

Fair Value Measurements (Detail

Fair Value Measurements (Details Narrative) $ / shares in Units, $ in Thousands	Dec. 31, 2015USD ($)$ / sharesshares
Fair Value Disclosures [Abstract]
Warrants liability number of common shares purchase | shares	219,604
Exercise price of common stock | $ / shares	$ 1.86
Warrants and rights outstanding value | $	$ 29

Fair Value Measurements - Sched

Fair Value Measurements - Schedule of Fair Value Liabilities Measured on Recurring Basis Unobservable Input Reconciliation (Details) - Level 3 [Member] - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Balance of warrant liability	$ 256	$ 4,047
Reclassification of warrant liability to stockholders' equity upon exercise		(2,616)
Change in fair value of warrant liability included in other (income) / expense	$ (227)	(1,175)
Balance of warrant liability	$ 29	$ 256

Capital Stock (Details Narrativ

Capital Stock (Details Narrative) - USD ($) $ / shares in Units, $ in Thousands	Jun. 13, 2011	Oct. 31, 2015	May. 31, 2015	Aug. 31, 2014	Jun. 30, 2011	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012	Jun. 19, 2015
Common stock shares authorized						65,000,000	65,000,000
Common stock par value						$ 0.001	$ 0.001
Preferred stock shares authorized						10,000,000	10,000,000
Preferred stock par value						$ 0.001	$ 0.001
Stock options granted weighted-average fair value price per share						$ 1.34	$ 3.02	$ 8.96
Proceeds from exercise of common stock options						$ 99	$ 184	$ 458
Intrinsic value of options exercised						76	15	2,038
Fair value of stock options vested						3,981	3,408	720
Unrecognized compensation cost related to stock options						$ 3,791
Recognized over a weighted-average period						1 year 11 months 1 day
Stock issued during period value of employee stock purchase plan						$ 99	114
Stock issued during period number of shares of employee stock purchase plans			67,743
Allocated share-based compensation expense						$ 4,120	$ 3,824	3,738
Class of warrant or right number of securities called by warrants or rights						219,604
Class of warrant or right exercise price of warrants or rights						$ 1.86
Proceeds from issuance or sale of equity					$ 7,000
Price per unit issued consisting of one share and one warrant					$ 1.82
Number of common share in each unit issued					1
Number of warrant in each unit issued					1
Fair value of warrants						$ 29
Proceeds from warrant exercises								693
Increase in previously issued warrants value							$ 227
OcuHub Business Unit [Member]
Proceeds from sale of membership units				$ 250
Membership unit percentage				2.00%
Exchange right term				1 year
Income (loss) from continuing operations including portion attributable to noncontrolling interest						$ 3,507	$ 2,080
Term Loan Agreement [Member] | Tranche One [Member]
Proceeds from issuance of long-term debt		$ 10,000
Private Placement [Member]
Stock issued during period number of shares					3,846,154
Financing Warrants [Member]
Stock issued during period number of shares	1,629,539
Class of warrant or right number of securities called by warrants or rights	109,375
Class of warrant or right exercise price of warrants or rights	$ 1.60
Debt obilgation aggregate amount	$ 2,149
Debt obligation cost	$ 41
2011 Warrants [Member]
Class of warrant or right number of securities called by warrants or rights					3,846,154
Class of warrant or right exercise price of warrants or rights					$ 1.86
Fair value assumptions expected volatility rate					101.00%
Fair value assumptions expected term					5 years
Fair value assumptions risk free interest rate					1.76%
Proceeds from issuance of warrants					$ 3,012
Fair value of warrants						$ 5,518
Warrants exercised							304,945
Proceeds from warrant exercises							$ 2,616
Increase (decrease) in derivative liabilities								2,352
Increase in previously issued warrants value							263
Fair value assumptions dividend yield						0.00%
CRG Warrants [Member]
Class of warrant or right number of securities called by warrants or rights		350,000
Class of warrant or right exercise price of warrants or rights		$ 5
Fair value assumptions expected volatility rate						73.00%
Fair value assumptions expected term						5 years
Fair value assumptions risk free interest rate						1.71%
Fair value of warrants						$ 290
Fair value assumptions dividend yield						0.00%
Warrants exercisable date		Oct. 6, 2020
Certain Holders [Member] | 2011 Warrants [Member]
Proceeds from issuance of warrants								$ 13,297
Warrants exercised								1,571,136
Proceeds from warrant exercises								$ 693
Increase (decrease) in derivative liabilities									$ 4,014
Increase in previously issued warrants value								8,620
Stock Incentive Plan [Member]
Common stock capital shares reserved for future issuance										1,000,000
Share-based compensation number of shares available for grant						683,439
Share-based compensation expiration period						10 years
Percentage of ownership exercisable options expire						10.00%
Share-based compensation award vesting period						5 years
Stock Incentive Plan [Member] | Minimum [Member]
Share-based compensation common stock purchase price percentage						110.00%
Stock Incentive Plan [Member] | Maximum [Member]
Share-based compensation common stock purchase price percentage						10.00%
Stock Incentive Plan [Member] | Maximum [Member] | Officer Director Or Consultant [Member]
Percentage of options exercisable at a rate						20.00%
Stock Incentive Plan [Member] | Non-Statutory Stock Options [Member] | Minimum [Member]
Share-based compensation common stock purchase price percentage						85.00%
Stock Incentive Plan [Member] | Employees, Directors and Consultants [Member]
Share-based compensation number of shares available for grant						7,200,000
Employee Stock Purchase Plan 2014 [Member]
Common stock capital shares reserved for future issuance						671,500
Share-based compensation common stock purchase price percentage						90.00%
Employee stock purchase plan offering period						6 months
Share-based compensation employee stock purchase plan contribution percentage						20.00%
Share-based compensation employee stock purchase plan contribution maximum amount						$ 25
Share-based compensation employee stock purchase plan contribution maximum number of shares						5,000
Stock issued during period value of employee stock purchase plan						$ 203	$ 114
Stock issued during period number of shares of employee stock purchase plans						54,211	47,902
Allocated share-based compensation expense						$ 39	$ 36	$ 0

Capital Stock - Schedule of Sto

Capital Stock - Schedule of Stock-Based Compensation Expense (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Stock-based compensation expense before income taxes	$ 4,120	$ 3,824	$ 3,738
General and Administrative [Member]
Stock-based compensation expense before income taxes	2,014	2,437	1,837
Clinical, Regulatory and Research and Development [Member]
Stock-based compensation expense before income taxes	472	159	174
Sales and Marketing [Member]
Stock-based compensation expense before income taxes	$ 1,634	$ 1,228	$ 1,727

Capital Stock - Schedule of Est

Capital Stock - Schedule of Estimated Fair Value of Options Using Weighted Average Assumptions (Details)	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Employee Stock Option [Member]
Volatility	89.00%	87.00%	101.00%
Weighted average expected life	5 years 4 months 21 days	5 years 10 months 2 days	5 years 10 months 21 days
Risk-free interest rate	1.60%	1.57%	1.43%
Dividend yield	0.00%	0.00%	0.00%
Employee Stock Purchase Plan [Member]
Volatility	73.00%	64.00%
Weighted average expected life	6 months	6 months
Risk-free interest rate	0.11%	0.07%
Dividend yield	0.00%	0.00%

Capital Equity - Schedule of Op

Capital Equity - Schedule of Options Outstanding Activity (Details) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Equity [Abstract]
Number of Options Outstanding, beginning balance	6,363,126	5,536,795	4,099,342
Number of Options Outstanding, Granted	1,285,455	1,412,500	1,837,500
Number of Options Outstanding, Exercised	(65,391)	(57,763)	(181,854)
Number of Options Outstanding, Forfeited/cancelled/expired	(664,088)	(528,406)	(218,193)
Number of Options Outstanding, ending balance	6,919,102	6,363,126	5,536,795
Number of Options Outstanding, Vested or expected to vest	5,278,889
Number of Options Outstanding, Exerciseable	4,948,032
Weighted Average Exercise Price, beginning balance	$ 4.76	$ 4.91	$ 3.54
Weighted Average Exercise Price, Granted	2.09	4.63	9.78
Weighted Average Exercise Price, Exercised	1.52	3.18	2.52
Weighted Average Exercise Price, Forfeited/cancelled/expired	6.10	11.10	11.07
Weighted Average Exercise Price, ending balance	4.16	$ 4.76	$ 4.91
Weighted Average Exercise Price, Vested or expected to vest	4.20
Weighted Average Exercise Price, Exerciseable	$ 4.16
Weighted Average Remaining Contractual Life, beginning balance	6 years 6 months 26 days	6 years 10 months 21 days	7 years 1 month 21 days
Weighted Average Remaining Contractual Life, ending balance	6 years 29 days	6 years 6 months 26 days	6 years 10 months 21 days
Weighted Average Remaining Contractual Life, Vested or expected to vest	5 years 4 months 28 days
Weighted Average Remaining Contractual Life, Exerciseable	4 years 11 months 12 days
Aggregate Intrinsic Value of Options, beginning balance	$ 2,155	$ 27,256	$ 6,799
Aggregate Intrinsic Value of Options, ending balance	184	$ 2,155	$ 27,256
Aggregate Intrinsic Value of Options, Vested or expected to vest	184
Aggregate Intrinsic Value of Options, Exerciseable	$ 184

Capital Stock - Schedule of War

Capital Stock - Schedule of Warrants Outstanding Activity (Details) - Warrants [Member] - $ / shares	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Number of warrants outstanding, beginning balance	293,667	598,612
Number of warrants outstanding, Issued	350,000	(304,945)
Number of warrants outstanding, Exercised
Number of warrants outstanding, Expired
Number of warrants outstanding, ending balance	643,667	293,667
Weighted average exercise price, beginning balance	$ 1.79	$ 1.83
Weighted average exercise price, Issued	$ 5	$ 1.86
Weighted average exercise price, Exercised
Weighted average exercise price, Expired
Weighted average exercise price, ending balance	$ 3.54	$ 1.79

Consolidated Statements of Ca66

Consolidated Statements of Cash Flows (Details Narrative) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Interest paid	$ 1,257
Fair value of warrants	29
Reclass of warrant liabilities to stockholders equity upon exercise of warrants	0	$ 2,616	$ 13,297
CRG Warrants [Member]
Fair value of warrants	$ 290

Consolidated Statements of Ca67

Consolidated Statements of Cash Flows - Summary of Cash Flow Operating Capital (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Supplemental Cash Flow Elements [Abstract]
Accounts receivable, net	$ (540)	$ 1,044	$ (2,635)
Inventory	(987)	(2,101)	978
Prepaid expenses and other assets	100	(162)	(252)
Other non-current assets	(24)	(117)	(12)
Accounts payable	90	1,340	(436)
Accrued liabilities	1,318	$ (147)	$ 1,329
Deferred interest	681
Deferred rent/revenue	(60)	$ 106	$ 67
Change in operating capital	$ 578	$ (37)	$ (961)

Employee Retirement Plan (Detai

Employee Retirement Plan (Details Narrative)	12 Months Ended
	Dec. 31, 2015
Compensation and Retirement Disclosure [Abstract]
Defined contribution maximum of their annual salary percentage	100.00%

Subsequent Events (Details Narr

Subsequent Events (Details Narrative) - Subsequent Event [Member] - USD ($) $ in Thousands	Mar. 07, 2016	Feb. 29, 2016	Jan. 31, 2016
Ocuhub Subsidiary [Member]
Wind down expenses			$ 600
Osmolarity Business [Member]
Restructuring cost		$ 9,400
Osmolarity Business [Member] | First Quarter of 2016 [Member]
Restructuring cost		$ 300
MiniFAB [Member] | Manufacturing And Supply Agreement [Member]
Percentage of savings on individual osmolarity test cards	16.00%
Saving description of test card	The lower purchase price will remain in place until the earlier of, the Company reaches an annual volume of 4.5 million test cards or March 31, 2018.

Quarterly Financial Data (Una70

Quarterly Financial Data (Unaudited) - Schedule of Quarterly Financial Data (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2014	Sep. 30, 2014	Jun. 30, 2014	Mar. 31, 2014	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Quarterly Financial Data Tables
Revenue	$ 6,791	$ 6,612	$ 6,345	$ 5,408	$ 5,297	$ 5,212	$ 4,999	$ 4,211	$ 25,156	$ 19,718	$ 14,645
Loss from operations	(8,193)	(7,543)	(7,702)	(8,071)	(7,083)	(6,114)	(5,885)	(5,922)	(31,509)	(25,004)	(17,774)
Net loss	$ (8,925)	$ (8,064)	$ (8,072)	$ (8,168)	$ (6,941)	$ (5,785)	$ (5,439)	$ (5,557)	$ (33,229)	$ (23,722)	$ (28,990)
Weighted average number of shares outstanding basic	33,761	33,729	33,658	33,643	33,591	33,589	33,585	33,550	33,698,086	33,578,820	30,759,305
Net loss per common share basic	$ (0.26)	$ (0.24)	$ (0.24)	$ (0.24)	$ (0.21)	$ (0.17)	$ (0.16)	$ (0.17)	$ (0.99)	$ (0.71)	$ (0.94)
Weighted average number of shares outstanding diluted	33,761	33,774	33,704	33,693	33,662	33,712	33,721	33,732	33,731,807	33,717,344	30,759,035
Net loss per common share diluted	$ (0.26)	$ (0.24)	$ (0.24)	$ (0.25)	$ (0.21)	$ (0.18)	$ (0.17)	$ (0.17)	$ (0.99)	$ (0.74)	$ (0.94)