Document and Entity Information
Document and Entity Information Document - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Feb. 18, 2016 | Jun. 30, 2015 | |
Entity [Abstract] | |||
Entity Registrant Name | LDR HOLDING CORP | ||
Entity Central Index Key | 1,348,324 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Large Accelerated Filer | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2015 | ||
Document Fiscal Year Focus | 2,015 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Entity Common Stock, Shares Outstanding | 29,211,317 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $ 896,233,896 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Current assets: | ||
Cash and cash equivalents | $ 115,084 | $ 73,883 |
Accounts receivable, net | 29,412 | 26,484 |
Inventory, net | 29,721 | 24,996 |
Other current assets | 7,924 | 4,864 |
Prepaid expenses | 1,886 | 1,419 |
Deferred tax asset, current | 0 | 296 |
Total current assets | 184,027 | 131,942 |
Property and equipment, net | 20,653 | 19,025 |
Goodwill | 6,621 | 6,621 |
Intangible assets, net | 4,028 | 3,858 |
Long-term investments | 2,738 | 0 |
Restricted cash | 1,000 | 0 |
Deferred tax assets | 7,043 | 192 |
Other assets | 529 | 171 |
Total assets | 226,639 | 161,809 |
Current liabilities: | ||
Accounts payable | 11,428 | 8,302 |
Accrued expenses | 19,495 | 19,366 |
Short-term financing | 4,486 | 4,343 |
Current portion of long-term debt | 601 | 1,009 |
Total current liabilities | 36,010 | 33,020 |
Line of credit, net of discount | 0 | 18,166 |
Long-term debt, net of discount and current portion | 677 | 1,422 |
Deferred tax liabilities | 0 | 740 |
Other long-term liabilities | 670 | 760 |
Total liabilities | $ 37,357 | $ 54,108 |
Commitments and contingencies | ||
Stockholders’ equity: | ||
Common stock; $0.001 par value; 107,000,000 shares authorized at December 31, 2015 and 2014; 29,148,544 shares issued and 29,148,195 shares outstanding at December 31, 2015; 26,457,516 shares issued and 26,457,167 shares outstanding at December 31, 2014 | $ 29 | $ 27 |
Treasury stock at cost | (8) | (8) |
Additional paid-in capital | 306,509 | 205,920 |
Accumulated other comprehensive loss | (6,657) | (3,500) |
Accumulated deficit | (110,591) | (94,738) |
Total stockholders’ equity | 189,282 | 107,701 |
Total liabilities and stockholders’ equity | $ 226,639 | $ 161,809 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Dec. 31, 2015 | Dec. 31, 2014 |
Statement of Financial Position [Abstract] | ||
Common stock, par value per share (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized (in shares) | 107,000,000 | 107,000,000 |
Common stock, shares issued (in shares) | 29,148,544 | 26,457,516 |
Common stock, shares outstanding (in shares) | 29,148,195 | 26,457,167 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Statement of Comprehensive Income [Abstract] | |||
Revenue | $ 164,459 | $ 141,254 | $ 111,594 |
Cost of goods sold | 27,260 | 24,418 | 17,947 |
Gross profit | 137,199 | 116,836 | 93,647 |
Operating expenses: | |||
Research and development | 11,753 | 12,323 | 9,380 |
Sales and marketing | 109,141 | 87,506 | 67,676 |
General and administrative | 38,774 | 27,720 | 18,915 |
Total operating expenses | 159,668 | 127,549 | 95,971 |
Operating loss | (22,469) | (10,713) | (2,324) |
Other operating income (expense): | |||
Other income (expense) | 1,012 | 2,037 | (771) |
Interest income | 61 | 27 | 10 |
Interest expense | (515) | (878) | (3,273) |
Accretion related to warrants and discounts on long-term debt | (16) | (20) | (6,900) |
Expense related to beneficial conversion of promissory notes | 0 | 0 | (7,413) |
Change in fair value of common stock warrants | 0 | 0 | (5,593) |
Total other income (expense), net | 542 | 1,166 | (23,940) |
Loss before income taxes | (21,927) | (9,547) | (26,264) |
Income tax benefit (expense) | 6,074 | (1,430) | (1,671) |
Net loss | (15,853) | (10,977) | (27,935) |
Other comprehensive loss: | |||
Foreign currency translation | (3,157) | (3,698) | 655 |
Comprehensive loss | $ (19,010) | $ (14,675) | $ (27,280) |
Net loss per common share: | |||
Basic and diluted (in dollars per share) | $ (0.57) | $ (0.43) | $ (3.09) |
Weighted average number of shares outstanding: | |||
Basic and diluted (in shares) | 27,783,149 | 25,288,284 | 9,040,567 |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY (DEFICIT) - USD ($) $ in Thousands | Total | Series A-1 Preferred Stock | Series A-2 Preferred Stock | Series B Preferred Stock | Common Stock | Treasury Stock | Additional Paid-in Capital | Accumulated Other Comprehensive Income (Loss) | Accumulated Deficit |
Beginning Balance (in shares) at Dec. 31, 2012 | 11,120,119 | 18,097,848 | 14,838,368 | 4,642,143 | |||||
Beginning Balance at Dec. 31, 2012 | $ (30,631) | $ 11 | $ 18 | $ 15 | $ 5 | $ 25,603 | $ (457) | $ (55,826) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Issuance of common stock in public offering (in shares) | 5,750,000 | ||||||||
Issuance of common stock in a public offering | 86,250 | $ 6 | 86,244 | ||||||
Underwriting discount and common stock issuance costs | (8,744) | (8,744) | |||||||
Conversion of preferred stock to common stock in connection with the initial public offering (in shares) | 11,120,119 | 18,097,848 | 14,838,368 | 10,977,667 | |||||
Conversion of preferred stock to common stock in connection with the initial public offering | 35,000 | $ 11 | $ 18 | $ 15 | $ 11 | 35,033 | |||
Dividends on Series C Preferred Stock | (17,143) | (17,143) | |||||||
Conversion of convertible notes (in shares) | 1,929,309 | ||||||||
Conversion of convertible notes | 28,957 | $ 2 | 28,955 | ||||||
Reclassification of warrant liability to equity | 9,760 | 9,760 | |||||||
Exercise of preferred stock warrant (in shares) | 10,889 | ||||||||
Exercise of preferred stock warrant | 0 | ||||||||
Exercise of common stock warrant (in shares) | 650,669 | ||||||||
Exercise of common stock warrant | 4 | 4 | |||||||
Exercise of common stock options (in shares) | (115,990) | ||||||||
Exercises of common stock options | 235 | 235 | |||||||
Stock-based compensation | 1,269 | 1,269 | |||||||
Currency translation adjustment | 655 | 655 | |||||||
Net loss | (27,935) | ||||||||
Ending Balance at Dec. 31, 2013 | 77,677 | $ 0 | $ 0 | $ 0 | $ 24 | 161,216 | 198 | (83,761) | |
Ending Balance (in shares) at Dec. 31, 2013 | 0 | 0 | 0 | 24,076,667 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Issuance of common stock in public offering (in shares) | 1,495,000 | ||||||||
Issuance of common stock in a public offering | 36,628 | $ 2 | 36,626 | ||||||
Underwriting discount and common stock issuance costs | (2,634) | (2,634) | |||||||
Exercise of common stock options (in shares) | (652,605) | ||||||||
Exercises of common stock options | 2,363 | $ 1 | 2,362 | ||||||
Stock-based compensation | 5,225 | ||||||||
Issuance of common stock under employee stock purchase plan (in shares) | 233,244 | ||||||||
Issuance of common stock under employee stock purchase plan | 3,125 | 3,125 | |||||||
Purchase of treasury stock (in shares) | 349 | ||||||||
Purchase of treasury stock | (8) | $ (8) | |||||||
Stock-based compensation | 5,225 | 5,225 | |||||||
Currency translation adjustment | (3,698) | (3,698) | |||||||
Net loss | (10,977) | (10,977) | |||||||
Ending Balance at Dec. 31, 2014 | 107,701 | $ 0 | $ 0 | $ 0 | $ 27 | $ (8) | 205,920 | (3,500) | (94,738) |
Ending Balance (in shares) at Dec. 31, 2014 | 0 | 0 | 0 | 26,457,516 | 349 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Issuance of common stock in public offering (in shares) | 2,300,000 | ||||||||
Issuance of common stock in a public offering | 92,000 | $ 2 | 91,998 | ||||||
Underwriting discount and common stock issuance costs | $ (5,129) | (5,129) | |||||||
Exercise of common stock options (in shares) | (307,783) | (307,783) | |||||||
Exercises of common stock options | $ 3,030 | $ 0 | 3,030 | ||||||
Stock-based compensation | 9,364 | ||||||||
Issuance of common stock under employee stock purchase plan (in shares) | 63,108 | ||||||||
Issuance of common stock under employee stock purchase plan | 1,564 | 1,564 | |||||||
Issuance of restricted stock units, net of shares withheld for taxes (in shares) | 20,137 | ||||||||
Issuance of restricted stock units, net of shares withheld for taxes | (238) | (238) | |||||||
Stock-based compensation | 9,364 | 9,364 | |||||||
Currency translation adjustment | (3,157) | (3,157) | |||||||
Net loss | (15,853) | (15,853) | |||||||
Ending Balance at Dec. 31, 2015 | $ 189,282 | $ 0 | $ 0 | $ 0 | $ 29 | $ (8) | $ 306,509 | $ (6,657) | $ (110,591) |
Ending Balance (in shares) at Dec. 31, 2015 | 0 | 0 | 0 | 29,148,544 | 349 |
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 | $ (15,853) | $ (10,977) | $ (27,935) |
Adjustments to reconcile net loss to net cash used in operating activities: | |||
Bad debt expense | 1,510 | 603 | 517 |
Provision for excess and obsolete inventories | 2,846 | 1,173 | 641 |
Depreciation and amortization | 6,250 | 4,682 | 4,024 |
Stock-based compensation | 9,364 | 5,225 | 1,269 |
Accretion related to warrants and discounts on long-term debt | 16 | 20 | 6,900 |
Change in fair value of common stock warrants | 0 | 0 | 5,593 |
Beneficial conversion related to promissory notes | 0 | 0 | 7,413 |
Deferred income tax (benefit) expense | (7,425) | 278 | 37 |
Loss on disposal of assets | 141 | 246 | 57 |
Unrealized foreign currency (gain) loss | (1,149) | (389) | 713 |
Changes in operating assets and liabilities: | |||
Restricted cash | (1,000) | 2,000 | 0 |
Accounts receivable | (5,246) | (5,557) | (6,313) |
Prepaid expenses and other current assets | (3,812) | (474) | (2,141) |
Inventory | (9,120) | (10,059) | (1,231) |
Other assets | (370) | (15) | 215 |
Accounts payable | 2,852 | 1,008 | (190) |
Accrued expenses | 847 | 2,815 | 4,505 |
Other long-term liabilities | 150 | 0 | (50) |
Net cash used in operating activities | (19,999) | (9,421) | (5,976) |
Investing activities: | |||
Purchase of long-term investment | (2,730) | 0 | 0 |
Proceeds from sale of property and equipment | 74 | 19 | 54 |
Purchase of intangible assets | (1,400) | (626) | (780) |
Purchase of property and equipment | (7,089) | (11,229) | (3,757) |
Net cash used in investing activities | (11,145) | (11,836) | (4,483) |
Financing activities: | |||
Proceeds from issuance of common stock | 92,000 | 36,628 | 86,250 |
Stock issuance costs | (5,129) | (2,634) | (8,744) |
Exercise of stock options | 3,030 | 2,363 | 235 |
Proceeds from Employee Stock Purchase Plan | 120 | 95 | 976 |
Proceeds from issuance of common stock under Employee Stock Purchase Plan | 1,474 | 2,148 | 0 |
Purchase of treasury stock | 0 | (8) | 0 |
Payments on capital leases | (15) | (42) | (22) |
Net proceeds on short-term financings | 301 | 2,035 | 759 |
Proceeds from line of credit | 0 | 0 | 376 |
Payments on line of credit | (18,166) | 0 | (1,209) |
Proceeds from long-term debt | 96 | 0 | 0 |
Payments on long-term debt | (1,007) | (1,710) | (13,711) |
Dividends on preferred stock | 0 | 0 | (17,143) |
Proceeds from exercise of common stock warrants | 0 | 0 | 4 |
Net cash provided by financing activities | 72,704 | 38,875 | 47,771 |
Effect of exchange rate on cash | (359) | (413) | 231 |
Net change in cash and cash equivalents | 41,201 | 17,205 | 37,543 |
Cash and cash equivalents, beginning of period | 73,883 | 56,678 | 19,135 |
Cash and cash equivalents, end of period | 115,084 | 73,883 | 56,678 |
Supplemental disclosure of interest and income taxes paid | |||
Cash paid for interest | 578 | 953 | 2,234 |
Cash paid for taxes | 3,026 | 974 | 1,599 |
Supplemental disclosure of non-cash investing and financing activities | |||
Increase (decrease) in property and equipment in accounts payable | (1,072) | (396) | 206 |
Capital lease related to purchase of fixed assets | 0 | 50 | 0 |
Reclass warrants to equity | 0 | 0 | (9,760) |
Conversion of notes and accrued interest to common stock | $ 0 | $ 0 | $ 14,470 |
Organization and Business Descr
Organization and Business Description | 12 Months Ended |
Dec. 31, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Business Description | Organization and Business Description Description of Business LDR Holding Corporation (Holding), a Delaware corporation, and its subsidiaries, LDR Spine USA, Inc. (Spine), LDR Médical, S.A.S. (Médical) and LDR Brasil Comercio, Importacao e Exportacao Ltda. (LDR Brazil and collectively, the Company), operates as a medical device company that designs and commercializes novel and proprietary surgical technologies for the treatment of patients suffering from spine disorders. The Company’s primary products are based on the VerteBRIDGE fusion platform and Mobi non-fusion platform, both of which are designed for applications in the cervical and lumbar spine for both fusion and nonfusion surgical treatments. The Company has offices in Troyes, France; Santo Andre, Brazil; Beijing, Shanghai, Guangzhou and Hong Kong, China; Seoul, Korea and in Austin, Texas, which serves the U.S. market and is the corporate headquarters. The primary markets for the Company’s products are the U.S. and Western Europe as well as key markets in Asia Pacific and Latin America. Initial and Follow-On Public Offerings In October 2013 , the Company completed its initial public offering (IPO) of 5,750,000 shares of common stock, including 750,000 shares sold to underwriters for the exercise of their over-allotment option to purchase additional shares, at a price of $15.00 per share, before underwriting discounts and expenses. The IPO generated net proceeds to the Company of approximately $77.5 million , after deducting underwriting discounts and expenses of approximately $8.7 million . In May 2014 and June 2014 , the Company completed its follow-on public offering in which the Company sold 1,495,000 shares, including 195,000 shares sold to underwriters for the exercise of their over-allotment option to purchase additional shares, at a price of $24.50 per share, before underwriting discounts and expenses. The follow-on public offering generated net proceeds to the Company of approximately $34.0 million , after deducting underwriting discounts and expenses of approximately $2.6 million . In August 2015 , the Company completed its follow-on public offering in which the Company sold 2,300,000 shares of common stock, including 300,000 shares sold to underwriters pursuant to the exercise of their over-allotment option to purchase additional shares, at a price of $40.00 per share, before underwriting discounts and expenses. The follow-on public offering generated net proceeds of approximately $86.9 million , after deducting underwriting discounts and expenses of approximately $5.1 million . Reverse Stock Split Ratio On October 3, 2013 , the Company effected a reverse stock split of the Company’s common stock such that each 6.75 shares of issued common stock were reclassified into one share of common stock. All common stock share and per-share amounts for all periods presented in these financial statements have been adjusted retroactively to reflect the reverse stock split. |
Significant Accounting Policies
Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | Significant Accounting Policies (a) Principles of Consolidation The accompanying consolidated financial statements include the results of Holding and its subsidiaries, Spine, Médical and LDR Brazil. All significant intercompany accounts and transactions have been eliminated in consolidation. Prior to the IPO in October 2013 , Holding owned 100% of the outstanding stock and voting rights of Spine and LDR Brazil and 52.95% of the outstanding stock and voting rights of Médical. The remaining 47.05% of the outstanding shares of Médical were subject to the Escrow Agreement discussed in note 9. The shares subject to the Escrow Agreement have been considered as if converted; thus, giving Holding 100% effective ownership of all subsidiaries. After the IPO, Holding owns 100% of the outstanding stock and voting rights of Spine, Médical and LDR Brazil. (b) Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America 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 financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results are likely to differ from those estimates, and such differences may be material to the financial statements. (c) Foreign Currency Translation and Other Comprehensive Loss The functional currency of the Company’s foreign subsidiaries is as follows: Médical is the euro and LDR Brazil is the real. Both companies translate monetary assets and liabilities denominated in other currencies into U.S. dollars at exchange rates in effect at each balance sheet date. Revenues and expenses are translated at the average of the exchange rates in effect during the period, and nonmonetary items are translated at historical rates. The resulting translation adjustments are included in other comprehensive loss. The accumulated foreign currency translation adjustments are reflected as accumulated other comprehensive loss, a component of stockholders’ equity (deficit). Gains and losses arising from intercompany foreign transactions are included in other income (expense) on the consolidated statements of comprehensive loss. The Company recognized foreign exchange gains in other income (expense) of approximately $1.0 million and $2.2 million for the years ended December 31, 2015 and 2014, respectively, and foreign exchange losses of approximately $764,000 for the year ended December 31, 2013. (d) Cash and Cash Equivalents The Company considers all highly liquid investments with a remaining maturity of three months or less at date of purchase to be cash equivalents. (e) Restricted Cash The Company’s restricted cash at December 31, 2015 pertains to a standby letter of credit under Spine’s Second Amendment to Lease Agreement (note 15). (f) Accounts Receivable The Company generally extends credit to customers without requiring collateral; however in certain situations, customers may be required to provide prepayment or a letter of credit. Accounts receivable are carried at cost less an allowance for doubtful accounts. On a regular basis, the Company evaluates accounts receivable and estimates an allowance for doubtful accounts, as needed, based on various factors, such as customers’ current credit conditions and history of payment, length of time past due, and the general economy as a whole. Receivables are written off against the allowance when they are deemed uncollectible. Management has recorded an allowance for doubtful accounts of $2.2 million and $1.4 million as of December 31, 2015 and 2014 , respectively. (g) Inventory Inventory is carried at the lower of cost or market using the weighted average method, net of an allowance for excess and obsolete inventory. The components of inventory, net of allowance, as of December 31, 2015 and 2014 are as follows (in thousands): December 31, 2015 2014 Finished goods $ 26,351 $ 21,337 Work in process 3,072 3,356 Raw materials 298 303 Total $ 29,721 $ 24,996 As of December 31, 2015 and 2014 , inventory held by hospitals and sales agents on behalf of the Company was $9.8 million and $7.1 million , respectively. The Company reviews the components of its inventory on a periodic basis for excess, obsolete or impaired inventory and records a reserve for items identified. The Company recorded an allowance for excess and obsolete inventory of $6.6 million and $4.3 million as of December 31, 2015 and 2014 , respectively. (h) Property and Equipment Property and equipment are carried at cost less accumulated depreciation. Depreciation is computed using the straight-line method over the estimated useful lives of the related assets. Useful lives are as follows: two to three years for computer equipment, five to ten years for furniture and equipment and surgical instruments, and the shorter of their estimated useful life or the term of the related lease for leasehold improvements. Upon retirement or sale, the cost of assets disposed and the related accumulated depreciation are removed from the accounts, and any resulting gain or loss is credited or charged to operations. Major renewals and betterments are capitalized. Repairs and maintenance and minor replacements are charged to expense as incurred. (i) Goodwill and Other Intangible Assets Goodwill is not amortized, but is tested annually for impairment or more frequently if impairment indicators exist. Such indicators could include (1) a significant adverse change in legal factors or in business climate, (2) unanticipated competition, or (3) an adverse action or assessment by a regulator. The Company first assesses qualitative factors before performing a quantitative assessment of the fair value of a reporting unit. If it is determined on the basis of qualitative factors that the fair value of the reporting unit is more-likely than-not less than the carrying amount, the existing quantitative impairment test is performed. The Company did not record an impairment of the Company’s goodwill for any of the periods presented. Definite lived intangible assets consists of patents and software licenses. The Company capitalizes third party legal fees and application costs related to its internally developed patents. Legal costs incurred in the defense of the Company’s patents are expensed as incurred. Definite lived intangibles are amortized over their estimated useful lives: ten years for patents and three years for software licenses. Patents and software licenses are amortized on a straight-line basis and are stated net of accumulated amortization. The Company did not record an impairment of the Company’s definite lived intangible assets for any of the periods presented. (j) Valuation of Long-Lived Assets Long-lived assets are monitored and reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of any such asset may not be recoverable. The determination of recoverability is based on an estimate of undiscounted cash flows expected to result from the use of an asset and its eventual disposition. The estimate of undiscounted cash flows is based upon, among other things, certain assumptions about expected future operating performance, growth rates and other factors. The Company’s estimates of undiscounted cash flows may differ from actual cash flows due to, among other things, technological changes, economic conditions, changes to its business model or changes in its operating performance. If the sum of the undiscounted cash flows is less than the carrying value of the asset, an impairment charge is recognized, measured as the amount by which the carrying value exceeds the fair value of the asset. The Company did not record an impairment of the Company’s long-lived assets for any of the periods presented. (k) Long-Term Investments The Company’s long-term investment consisted of a cost-method equity investment. The Company has invested in the preferred shares of a privately-held, development-stage additive manufacturing company. The Company owns less than 10% of the voting stock in this entity and does not have the ability to exercise significant influence over it. The carrying value of this entity is reviewed each reporting period for events or changes in circumstances that indicate an impairment of the Company’s investment. Impairment indicators include adverse regulatory actions and changes in the investee’s competitive positions or difficulty in raising funds. If impairment is indicated, the Company determines the fair value of the investment and, if below cost, the Company determines if the loss is temporary or other-than-temporary. Temporary loss is not recognized in the consolidated statement of income and other-than-temporary loss is recognized in other income (expense) in the consolidated statements of comprehensive loss. Impairment adjustments are subject to a high degree of management judgment, as these investments do not have quoted market prices. (l) Fair Value of Financial Instruments The fair value of the Company’s financial instruments reflects the amounts that the Company estimates to receive in connection with the sale of an asset or paid in connection with the transfer of a liability in an orderly transaction between market participants at the measurement date (exit price). The fair value hierarchy that prioritizes the use of inputs used in valuation techniques is as follows: Level 1 – quoted prices in active markets for identical assets and liabilities; Level 2 – observable inputs other than quoted prices in active markets, such as quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets and liabilities in markets that are not active, or other inputs that are observable or can be corroborated by observable market data; and Level 3 – unobservable inputs reflecting management’s assumptions, consistent with reasonably available assumptions made by other market participants. These valuations require significant judgment. As of December 31, 2015 and 2014 , the fair value of the Company’s long-term debt, short-term financing and borrowings under its revolving credit agreement were categorized as Level 2 in the fair value hierarchy and approximated their carrying value due to the relatively recent issuances and short maturities and based on prevailing market rates for borrowings with similar ratings and maturities. The carrying amounts of the Company’s financial instruments, which primarily include cash and cash equivalents, accounts receivable, accounts payable and accrued expenses, approximate their fair values due to their short maturities. (m) Revenue Recognition Revenue is recognized when evidence of an arrangement exists, fees are fixed or determinable, collection of the fees is reasonably assured, and delivery or customer acceptance of the product has occurred and no other significant obligations remain. Further, for direct markets (U.S., France, Germany Belgium and Brazil), the Company recognizes revenue on its products when the spinal implant is used in surgery and a valid purchase order has been received. The Company generally recognizes revenue from sales to distributors at the time the product is shipped to the distributor. Distributors, who sell the products to their customers, take title to the products and assume all risks of ownership at the time of shipment. Distributors are obligated to pay within specified terms regardless of when, if ever, they sell the products. In general, the Company’s customers do not have any rights of return or exchange. The Company accounts for taxes collected from customers and remitted to governmental authorities on a net basis. Accordingly, such amounts are excluded from revenue. (n) Shipping and Handling Amounts billed to customers related to shipping and handling are included in revenues. Shipping and handling costs are included in cost of goods sold when related to revenue producing activities. (o) Advertising Costs The Company expenses advertising costs as incurred. The Company incurred approximately $447,000 , $337,000 and $268,000 in advertising costs during the years ended December 31, 2015 , 2014 and 2013 , respectively. (p) Research and Development The Company expenses research and development costs as incurred. (q) Medical Device Excise Tax Effective as of January 1, 2013, the Patient Protection and Affordable Care Act, as amended by the Health Care and Education Affordability Reconciliation Act, imposed a medical device excise tax (MDET) of 2.3% on any entity that manufactures or imports certain medical devices offered for sale in the U.S. The Company accounts for the MDET as a component of operating expense and recognized approximately $1.2 million , $939,000 and $729,000 during the years ended December 31, 2015 , 2014 and 2013 , respectively. In December 2015, legislation was passed which provides for a two-year moratorium on the medical device excise tax for 2016 and 2017. (r) Stock-Based Compensation The Company recognizes compensation costs for all stock-based payment awards made to employees based upon each award’s estimated grant date fair value. The Company utilizes the Black-Scholes option pricing model, which requires a number of assumptions to determine the fair value of the awards. Compensation cost is recognized on a straight-line basis over the requisite service period of the award, net of an estimated forfeiture rate. Adjustments for actual forfeitures are made in the period in which they occur. (s) Net Loss Per Share The Company computes basic net loss per common share by dividing net loss attributable to common stockholders by the weighted average common shares outstanding for the period, which includes shares of Médical that are subject to the Escrow Agreement discussed in note 9 prior to the IPO. During periods of income, the Company allocates participating securities a proportional share of income determined by dividing total weighted average participating securities by the sum of the total weighted average common shares and participating securities (the two-class method). The Company’s preferred stock participates in any dividends declared by the Company and are therefore considered to be participating securities. During periods of loss, the Company allocates no loss to participating securities because they have no contractual obligation to share in the losses of the Company. Warrants that are liability classified are excluded from the calculation of basic net loss per share. The Company computes diluted net loss per common share after giving consideration to the dilutive effect of the Company’s convertible preferred stock, stock options and warrants that are outstanding during the period and the conversion of the Company’s convertible debt into shares of common stock, except where such would be anti-dilutive. Because the Company reported losses for the periods presented, all potentially dilutive common shares consisting of preferred stock, stock options, warrants and convertible debt are antidilutive. Refer to note 14 for the Company’s calculation of net loss per share for the periods presented. (t) Income Taxes The Company accounts for income taxes using the asset and liability method whereby deferred tax asset and liability account balances are determined based on differences between financial reporting and tax bases of assets and liabilities and are measured using the enacted tax rates and laws expected to be in effect when the asset or liability is expected to be realized or settled. Valuation allowances are established, when necessary, to reduce deferred tax assets to the amount that is deemed more likely than not to be realized. In the ordinary course of business, there are many transactions for which the ultimate tax outcome is uncertain. The Company assesses uncertain tax positions in each of the tax jurisdictions in which it has operations and accounts for the related financial statement implications. Unrecognized tax benefits are reported using the two step approach under which tax effects of a position are recognized only if it is more likely than not to be sustained and the amount of the tax benefit recognized is equal to the largest tax benefit that is greater than fifty percent likely of being realized upon ultimate settlement of the tax position. Determining the appropriate level of unrecognized tax benefits requires the Company to exercise judgment regarding the uncertain application of tax law. The amount of unrecognized tax benefits is adjusted when information becomes available or when an event occurs indicating a change is appropriate. The Company includes interest and penalties related to its uncertain tax positions as part of income tax expense, if any. (u) Interest Expense The Company amortizes discounts associated with long-term debt obligations using the effective interest rate method. |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In November 2015, Financial Accounting Standards Board, or FASB, issued ASU No. 2015-17, Balance Sheet Classification of Deferred Taxes (ASU 2015-17), which simplifies the presentation of deferred taxes on the balance sheet by requiring that all deferred taxes and liabilities, along with any related valuation allowance, be classified as noncurrent deferred tax asset or liability. The guidance does not change the existing requirement that only permits offsetting within a jurisdiction. The Company adopted ASU 2015-17 prospectively beginning in 2015, therefore prior periods were not adjusted. In July 2015, the FASB, issued ASU No. 2015-11, Simplifying the Measurement of Inventory (ASU 2015-11), which simplifies the subsequent measurement of inventory by requiring inventory to be measured at the lower of cost and net realizable value. Net realizable value is the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation. ASU 2015-11 will be effective for the Company on January 1, 2017. The Company does not expect the adoption of ASU 2015-11 will have a material impact on its consolidated financial statements. In April 2015, the FASB issued ASU No. 2015-03, Simplifying the Presentation of Debt Issuance Costs (ASU 2015-03), which requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. ASU 2015-03 requires retrospective adoption and will be effective for the Company on January 1, 2016. Early adoption is permitted. The Company does not expect the adoption of ASU 2015-03 will have a material impact on its financial statements. In May 2014, the FASB, issued ASU No. 2014-09, Revenue from Contracts with Customers (ASU 2014-09), which requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. ASU 2014-09 will replace most existing revenue recognition guidance in GAAP when it becomes effective. The new standard will be effective for the Company on January 1, 2018. Early application is not permitted. The standard permits the use of either the retrospective or cumulative effect transition method. The Company is evaluating the effect that ASU 2014-09 will have on its consolidated financial statements and related disclosures. The Company has not yet selected a transition method and has not determined the effect of the standard on its ongoing financial reporting. |
Concentration of Credit Risk
Concentration of Credit Risk | 12 Months Ended |
Dec. 31, 2015 | |
Risks and Uncertainties [Abstract] | |
Concentration of Credit Risk | Concentration of Credit Risk Financial instruments that potentially subject the Company to a concentration of credit risk principally consist of cash and cash equivalents and accounts receivable. While the Company’s cash and cash equivalents are on deposit with high quality FDIC insured financial institutions, at times, such deposits exceed insured limits. The Company has not experienced any losses in such accounts. The Company believes that the concentration of credit risk in its accounts receivable is substantially mitigated by the Company’s evaluation process, relatively short collection terms and the creditworthiness of its customers. The Company evaluates the status of each of its customers, but generally requires no collateral. During the years ended December 31, 2015 , 2014 and 2013 , the Company recognized $1.5 million , $603,000 and $517,000 in bad debt expense. The Company maintains reserves for credit losses. The Company had no customers that represented greater than 10% of the Company’s trade receivables as of December 31, 2015 and 2014 , or revenues for the years ended December 31, 2015 , 2014 and 2013 . |
Property and Equipment
Property and Equipment | 12 Months Ended |
Dec. 31, 2015 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | Property and Equipment Property and equipment consist of the following (in thousands): December 31, 2015 2014 Furniture and equipment $ 4,981 $ 4,613 Surgical instruments 32,122 27,068 Leasehold improvements 1,396 1,226 38,499 32,907 Less accumulated depreciation and amortization (17,846 ) (13,882 ) $ 20,653 $ 19,025 Included in property and equipment are instrument sets used by surgeons during the implant process. Depreciation on the instrument sets commences once the instrument set has been placed into service. As of December 2015 and 2014 , the Company had $3.2 million and $2.3 million , respectively, in instrument sets that had not yet been placed into service. For the years ended December 2015 , 2014 and 2013 , the Company recorded depreciation expense of $5.4 million , $4.1 million and $3.5 million , respectively, including amortization of instrument sets and equipment under capital leases of zero , $29,000 and $133,000 , respectively. |
Intangible Assets
Intangible Assets | 12 Months Ended |
Dec. 31, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets | Intangible Assets Intangible assets consist of the following (in thousands): December 31, 2015 2014 Patents and trademarks $ 6,595 $ 6,469 Software licenses 1,590 393 8,185 6,862 Less accumulated amortization (4,157 ) (3,004 ) $ 4,028 $ 3,858 The Company recorded amortization expense of $860,000 , $612,000 and $528,000 during the years ended December 31, 2015 , 2014 and 2013 , respectively. The expected amortization for each of the next five years as of December 31, 2015 is as follows (in thousands): 2016 $ 846 2017 576 2018 452 2019 418 2020 360 Thereafter 1,376 $ 4,028 |
Accrued Expenses
Accrued Expenses | 12 Months Ended |
Dec. 31, 2015 | |
Payables and Accruals [Abstract] | |
Accrued Expenses | Accrued Expenses Accrued expenses consist of the following (in thousands): December 31, 2015 2014 Compensation and other employee related costs $ 12,354 $ 10,960 Contributions withheld for Employee Stock Purchase Plan 120 94 Royalties 1,288 1,575 Clinical and regulatory costs 740 376 Government grants 514 858 Rent 1,523 1,841 Taxes 1,345 2,479 Other 1,611 1,183 $ 19,495 $ 19,366 |
Long-Term Debt
Long-Term Debt | 12 Months Ended |
Dec. 31, 2015 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | Long-Term Debt Long-term debt consists of the following (in thousands): December 31, 2015 2014 Line of credit $ — $ 18,166 Short-term financing 4,486 4,343 Various notes payable 1,278 2,431 Total long-term debt 5,764 24,940 Less current portion of long-term debt and short-term financing (5,087 ) (5,352 ) Long-term debt and line of credit, net of discount and current portion $ 677 $ 19,588 (a) Line of Credit The Company is party to an amended loan agreement with a bank under which it may make periodic borrowings under a revolving line of credit (the Line of Credit). The Line of Credit contains various restrictive covenants, including limitations on the Company’s ability to pay dividends, enter into a merger or acquisition and the amount of capital expenditures the Company may make in any given fiscal year. In May 2014 , the Company entered into an amendment, effective in April 2014 , to the Line of Credit that, among other things: (1) increased the revolving line of credit from $19.0 million to $25.0 million , (2) amended the interest rate from the bank’s prime rate plus 2.0% to the bank’s prime rate plus 0.25% or, if the Company’s trailing four-quarter EBITDA exceeds $5.0 million , LIBOR plus 2.5% , (3) eliminated a requirement that the Company maintain a minimum cash balance with the bank, (4) replaced the $12.5 million minimum net worth covenant with a $50.0 million tangible net worth covenant (unless the Company maintains a minimum cash balance of $20.0 million , in which case the covenant is waived) and (5) extended the maturity date from April 25, 2014 to April 29, 2016 . The bank has the right to reset the tangible net worth covenant annually, beginning February 28, 2015. In August 2015 , in connection with the Company’s second follow-on public offering, the Line of Credit was repaid in full, resulting in a zero outstanding balance as of December 31, 2015 . As of December 31, 2015 , the Company had $25.0 million available under the Line of Credit. The Company is required to pay a commitment fee of 0.25% of the the unused portion under the Line of Credit. As of December 31, 2015 and 2014, the Company was in compliance with all covenants under the Line of Credit. The Company’s interest rate on borrowings under the Line of Credit was 3.5% at December 31, 2015 and 2014. In connection with the initial Line of Credit, the Company issued warrants to purchase an aggregate of 154,506 shares of Holding’s Series C preferred stock to the bank, which were immediately vested and exercisable. The warrants were valued at $155,000 based on the fair value of the Company’s Series C preferred stock on the issuance date of $1.165 per share using the Black Scholes model with the following assumptions: risk free interest rate of 3.0% ; dividend yield of 0% ; weighted average expected life of the warrant of seven years; and a 75% volatility factor. The warrants were recorded as a debt discount and an increase in additional paid in capital and were being amortized over the term of the Line of Credit. Upon the closing of the Company’s IPO in October 2013 , these warrants were net exercised for 10,889 shares of common stock. (b) Short-Term Financing Médical borrows funds from various financial institutions in France on a short-term basis with variable interest rates based on Euribor one-month rates. The funds are typically repaid within 90 days and can be collateralized by certain assets of Médical, including accounts receivable. The weighted average interest rate for the short-term balances outstanding at December 31, 2015 and 2014 was 2.6% and 2.3% , respectively. (c) Various Notes Payable Médical has loan agreements with three and five different entities as of December 31, 2015 and 2014 , respectively. The amounts of the outstanding loans vary from approximately $83,000 to $437,000 at December 31, 2015 and $55,000 to $729,000 at December 31, 2014 , and bear interest at rates varying between 2.53% and 3.87% at December 31, 2015 and 2.53% and 4.65% at December 31, 2014 . Maturity dates for these loans vary from 2016 to 2019 , and the loans are secured by certain assets of Médical. (d) Future Minimum Principal Payments Future minimum principal payments of long-term debt by year as of December 31, 2015 are as follows (in thousands): 2016 $ 5,087 2017 426 2018 175 2019 76 2020 — Thereafter — $ 5,764 |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Dec. 31, 2015 | |
Equity [Abstract] | |
Stockholders' Equity | Stockholders’ Equity Authorized Stock The Company’s amended and restated certificate of incorporation, effective upon the completion of the IPO, authorizes the Company to issue 112,000,000 shares of common and preferred stock, consisting of 107,000,000 shares of common stock with $0.001 par value and 5,000,000 shares of preferred stock with $0.001 par value. As of December 31, 2015 and 2014 , the Company has no preferred stock issued or outstanding. Prior to the IPO in October 2013 , the Company was authorized to be issue was 92,723,696 shares of stock, consisting of 18,167,361 shares of common stock with $0.001 par value and 74,556,335 shares of preferred stock with $0.001 par value, of which 11,120,119 shares were designated as Series A-1 Convertible Preferred Stock (Series A-1), 18,097,848 shares were designated as Series A-2 Convertible Preferred Stock (Series A-2), 14,838,368 shares were designated Series B Convertible Preferred Stock (Series B) and 30,500,000 shares were designated as redeemable Series C Convertible Preferred Stock (Series C). Initial Public Offering On October 15, 2013 , the Company completed its IPO of 5,750,000 shares of common stock at a price of $15.00 per share including 750,000 shares sold to underwriters for the exercise of their over-allotment option to purchase additional shares. The IPO generated net proceeds of approximately $77.5 million , after deducting underwriting discounts and expenses of approximately $8.7 million . Upon the IPO, the previously outstanding shares of convertible preferred stock and redeemable convertible preferred stock were converted on a 6.75 -to-one basis into shares of common stock, resulting in all of the outstanding shares of Series A-1, Series A-2, Series B and Series C preferred stock being converted into 10,977,667 shares of common stock. Following the closing of the IPO, there were no shares of preferred stock outstanding. With the proceeds of the IPO, the Company paid its Series C Stockholders an aggregate of $17.1 million in exchange for agreeing to vote in favor of the conversion of the Series C preferred stock to common stock. In conjunction with the merger of Spine and Médical in 2006 , Holding and the individual Médical stockholders entered into an Escrow Agreement in which the individual Médical stockholders delivered their shares to an escrow agent, and Holding delivered its stock certificates to be held in escrow. In October 2013 , upon closing of the Company’s IPO, each share of Médical’s Class A stock was automatically exchanged for 5.80087 shares of common stock, or an aggregate of 3,110,024 shares. Follow-On Public Offerings In May 2014 and June 2014 , the Company completed its follow-on public offering in which the Company sold 1,495,000 shares, including 195,000 shares sold to underwriters for the exercise of their over-allotment option to purchase additional shares, at a price of $24.50 per share, before underwriting discounts and expenses. The follow-on public offering generated net proceeds to the Company of approximately $34.0 million , after deducting underwriting discounts and expenses of approximately $2.6 million . In August 2015 , the Company completed its follow-on public offering in which the Company sold 2,300,000 shares of common stock, including 300,000 shares sold to underwriters pursuant to the exercise of their over-allotment option to purchase additional shares, at a price of $40.00 per share, before underwriting discounts and expenses. The follow-on public offering generated net proceeds of approximately $86.9 million , after deducting underwriting discounts and expenses of approximately $5.1 million . |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Dec. 31, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation (a) Stock Plans In 2007 , the Company adopted the LDR Holding Corporation 2007 Stock Option/Stock Issuance Plan (the 2007 Plan). Concurrent with the IPO in October 2013 , the Company adopted the LDR Holding Corporation 2013 Equity Incentive Plan (the 2013 Plan) and terminated the 2007 Plan. No further grants will be made under the 2007 Plan. Any shares of common stock that are subject to outstanding awards under the 2007 Plan which are forfeited or lapse for any reason prior to exercise or settlement and would otherwise have returned to the share reserve under the 2007 Plan, instead will be available for issuance under the 2013 Plan. The purpose of the 2007 Plan and the 2013 Plan (collectively, the Plans) is to provide eligible persons employed by or providing services to the Company with the opportunity to acquire or increase their equity interest in the Company. 2007 Plan Under the 2007 Plan, incentive stock options may only be granted to Company employees and shall be issued at an exercise price not less than 100% of the fair market value of the Company’s common stock at the grant date, as determined by the Company’s Board of Directors, except for incentive stock option grants to a stockholder that owns greater than 10% of the Company’s outstanding stock or 10% of the voting power of all classes of the outstanding stock of any of our subsidiaries, in which case the exercise price per share is not less than 110% of the fair market value of the Company’s common stock at the date of grant. Nonstatutory stock options may be granted to Company employees, members of the Board of Directors and consultants at an exercise price determined by the Board of Directors. Options granted under the Plans are vested no later than ten years from the date of grant. At the time of grant, the Company’s Board of Directors determines the exercise price and vesting schedule. Generally, 25% of each option was vested one year from the vesting commencement date, as defined in the option agreement, and then the option vested ratably over each of the next 36 months. Under the Plans, stock options may be exercised before they became fully vested. In the event of termination of service, shares issued from the exercise of unvested stock options are subject to repurchase by the Company at the original purchase price until they vest. The shares subject to each option outstanding shall automatically become vested shares upon a change in ownership or control of the Company. Each such option shall, immediately prior to the consummation of a change in control, become exercisable for all of the shares of common stock at that time subject to that option. 2013 Plan Under the 2013 Plan, incentive stock options may only be granted to Company employees and shall be issued at an exercise price not less than 100% of the fair market value of the Company’s common stock at the grant date, except for incentive stock options grants to a stockholder that owns greater than 10% of the combined voting power of all classes of stock of the Company, in which case the exercise price per share is not less than 110% of the fair value of the Company’s common stock at the date of grant. Nonstatutory stock options, stock appreciation rights, restricted stock rights or bonuses, restricted stock units, performance shares, performance units and cash-based awards, or other stock-based awards may be granted to Company employees, officers, directors or consultants or those of any present or future parent or subsidiary corporation or other affiliated entity. As of December 31, 2015 and 2014 , the Company had 1,183,954 and 758,074 shares of common stock, respectively, reserved for issuance under the 2013 Plan. This share reserve automatically increased on January 1, 2014 and will increase each subsequent anniversary through January 1, 2023 , by an amount equal to the smaller of (i) 4% of the number of shares of the Company’s common stock issued and outstanding on the immediately preceding December 31 ; and (ii) an amount determined by the compensation committee of the Company’s board of directors. Shares subject to awards granted under the 2013 Plan which expire, are repurchased, or are canceled or forfeited will again become available for issuance under the 2013 Plan. The shares available will not be reduced by awards settled in cash or by shares withheld to satisfy minimum tax withholding obligations. Only the net number of shares issued upon the exercise of stock appreciation rights or options exercised by means of a net exercise will be deducted from the shares available under the 2013 Plan. (b) Stock Option Activity A summary of the stock option activity for the Company for the year ended December 31, 2015 is as follows: Shares Weighted - Average Exercise Price Weighted - Average Remaining Contractual Term Aggregate Intrinsic Value (Years) ($000's) Outstanding - December 31, 2014 1,881,369 $ 19.30 8.21 $ 26,484 Options granted 566,600 35.12 Options exercised (307,783 ) 9.85 Options forfeited (147,739 ) 24.30 Outstanding - December 31, 2015 1,992,447 $ 24.80 7.96 $ 10,668 Options vested and expected to vest: At December 31, 2014 1,778,371 $ 19.30 8.21 $ 25,502 At December 31, 2015 1,871,980 $ 24.29 7.88 $ 10,633 Options exercisable: At December 31, 2014 786,473 $ 8.94 8.21 $ 18,898 At December 31, 2015 866,248 $ 17.53 6.90 $ 9,066 The aggregate intrinsic value in the table above represents the total pre-tax value of the options shown, calculated as the difference between the Company’s closing stock price on December 31, 2015 and the exercise prices of the options shown, multiplied by the number of in-the money options. This is the aggregate amount that would have been received by the option holders if they had all exercised their options on December 31, 2015 and sold the shares thereby received at the closing price of the Company’s stock on that date. This amount changes based on the closing price of the Company’s stock. The Company uses the Black-Scholes option pricing model in valuing its stock awards. The Black-Scholes model requires estimates regarding dividend yield, volatility, risk-free rate of return, estimated forfeitures during the service period and the expected term of the award. The expected dividend yield assumption is based on the Company’s expectation of zero future dividend payouts. The volatility assumption is based on the historical volatilities of the Company’s common stock and of comparable public companies. The risk free rate of return assumption utilizes yields on U.S. treasury zero-coupon bonds with maturity that is commensurate with the expected term for awards issued to employees and the contractual term for awards issued to non-employees. The expected term is derived using the simplified method and represents the weighted average period that the stock awards are expected to remain outstanding. The fair value of stock option grants has been estimated at the date of grant using the Black-Scholes option pricing model with the following weighted average assumptions: Years Ended December 31, 2015 2014 2013 Expected dividend yield — % — % — % Volatility 43.34 % 48.41 % 52.02 % Risk-free rate of return 1.74 % 1.92 % 1.70 % Expected term 6 years 6 years 6 years Additional information regarding options is as follows (in thousands except for per share amounts): Years Ended December 31, 2015 2014 2013 Weighted-average grant date fair value per share of options granted during the period $ 15.24 $ 15.16 $ 7.08 Aggregate intrinsic value of options exercised during the period $ 7,884 $ 17,465 $ 307 The total intrinsic value of options exercised represents the total pre-tax intrinsic value that was received by the option holders who exercised their options during the fiscal year and is calculated as the difference between the stock price at the time of exercise and the exercise price multiplied by the number of options exercised. The unrecognized compensation expense related to unvested options was $12.8 million and $12.1 million at December 31, 2015 and 2014 , respectively, and is expected to be recognized over a weighted-average period of approximately three and two years, respectively. Awards Granted to LDR Médical Employees Included in the above table as of December 31, 2015 and 2014 , are options to purchase 37,951 and 154,986 shares, respectively, of Holdings common stock, which relate to options held by Médical employees to purchase Médical Class A common stock. Prior to the IPO in October 2013 , those options were subject to the Escrow Agreement (note 9). As such, when exercised, the Médical common stock become subject to the Escrow Agreement, under which the Médical shares were converted to Company common stock upon certain future events, as defined in the Escrow Agreement. As the shares subject to the Escrow Agreement were accounted for as if converted, these instruments were valued using the same assumptions as were other Company stock options and have been included within the roll forward of Company stock options above. After the IPO, upon exercise for Médical shares, the Médical shares are required to be converted to the Company’s common stock. Performance Share Awards In March 2013 , the Company awarded options to certain non-employees for the purchase of 81,841 shares of performance awards under the 2007 Plan. These awards vested or were cancelled on December 31, 2013 depending on whether certain performance goals were achieved. During the year ended December 31, 2013 , the Company recognized $413,000 in compensation expense related to the performance share awards. In February 2014 , the Company awarded additional options for the purchase of 22,169 shares of performance awards under the 2013 Plan. These awards vested immediately and were based on achievement of the achievement of certain performance goals. During year ended December 31, 2014 , the Company recognized $365,000 related to the performance share awards. (c) Restricted Stock Unit Activity A summary of the restricted stock unit activity for the Company for the year ended December 31, 2015 is as follows: Units Weighted - Average Grant Date Fair Value Per Share Weighted - Average Remaining Contractual Term Aggregate Intrinsic Value (Years) ($000's) Unvested - December 31, 2014 99,500 $ 27.06 2.94 $ 3,000 Restricted stock units granted 78,000 34.53 Restricted stock units vested (27,004 ) 26.8 Restricted stock units forfeited — — Unvested - December 31, 2015 150,496 $ 30.98 1.15 $ 3,779 The unrecognized compensation expense related to unvested restricted stock units was $3.1 million and $1.7 million at December 31, 2015 and 2014 , respectively, and is expected to be recognized over a weighted-average period of approximately two and three years, respectively. (d) Performance-Based Restricted Stock Unit Activity In January 2015, the Company granted performance-based restricted stock units to certain employees of the Company. The number of awards converted to common stock will vary from 40,200 to 120,600 shares depending on the attainment of certain revenue targets. The number of awards will be determined in the first quarter of 2016. A summary of the performance-based restricted stock unit activity for the Company for the year ended December 31, 2015 is as follows and is based on attainment of revenue at the target thresholds which the Company believes are probable of occurrence: Units Weighted - Average Grant Date Fair Value Per Share Weighted - Average Remaining Contractual Term Aggregate Intrinsic Value (Years) ($000's) Unvested - December 31, 2014 — $ — — $ — Performance-based restricted stock units granted 80,400 32.78 Performance-based restricted stock units vested — — Performance-based restricted stock units forfeited — — Unvested - December 31, 2015 80,400 $ 32.78 1.50 $ 2,019 The unrecognized compensation expense related to unvested restricted stock units was $1.0 million at December 31, 2015 and is expected to be recognized over a weighted-average period of approximately two years. (e) Employee Stock Purchase Program Concurrent with the IPO in October 2013 , the Company established the LDR Holding Corporation 2013 Employee Stock Purchase Plan (ESPP), a qualified plan under Section 423 of the Code. The purpose of the ESPP is to advance the interests of the Company by providing an incentive to attract, retain and reward employees and to motivate employees to contribute to the growth and profitability of the Company. The compensation committee of the Company’s board of directors administers the ESPP. As of December 31, 2015 and 2014 , the Company had 320,096 and 118,633 shares of common stock, respectively, reserved for issuance under the ESPP. The ESPP provides for an automatic increase in the number of shares available for issuance under the plan on January 1 of each year beginning in 2014 and continuing through and including January 1, 2023 equal to the lesser of (i) 1% of the Company’s issued and outstanding shares of common stock on the immediately preceding December 31 , or (ii) a number of shares as determined by the Company’s board of directors. The ESPP is generally designed to comply with the provisions of Section 423 of the Internal Revenue Code and will be typically implemented through a series of sequential offering periods, generally of a six -month duration, as established by the compensation committee. Under the ESPP, eligible employees can purchase shares of the Company’s common stock at 85% of the lower of the fair market value on (i) the first trading day of the offering period and (ii) the purchase date, which is typically the end of an offering period. Amounts accumulated for each participant, generally through payroll deductions, are credited toward the purchase of the Company common stock on the purchase date. No participant may purchase under the ESPP in any calendar year shares having a value of more than $25,000 measured by the fair market value per share of the Company’s common stock on the first day of the applicable offering period. Any amounts withheld from participants’ compensation in excess of the amounts used to purchase shares will be refunded, without interest. The Company uses the Black-Scholes option pricing model to value shares purchased under the ESPP. The same methodology is employed for the inputs used in the Black-Scholes model for valuing ESPP as for valuing stock options discussed above. (f) Stock-Based Compensation The Company’s stock-based compensation expense related to employee stock options, restricted stock units, performance stock units and ESPP awards for the years ended December 31, 2015 , 2014 and 2013 was as follows (in thousands): Years Ended December 31, 2015 2014 2013 Research and development $ 319 $ 572 $ 153 Sales and marketing 3,175 2,930 786 General and administrative 5,870 1,723 330 Total $ 9,364 $ 5,225 $ 1,269 |
Retirement Savings Plans
Retirement Savings Plans | 12 Months Ended |
Dec. 31, 2015 | |
Compensation and Retirement Disclosure [Abstract] | |
Retirement Savings Plans | Retirement Savings Plans (a) U.S.-Based Employees The Company maintains an employee savings and retirement plan (the 401(k) Plan) covering all of its U.S. employees. The 401(k) Plan permits but does not require matching contributions by the Company on behalf of participants. Starting in January 2014, the Company began matching 50% of employee contributions for the first 6% contributed by each employee. For the years ended December 31, 2015 and 2014 , the 401(k) match made by the Company was approximately $651,000 and $377,000 , respectively. The Company did no t match contributions for the year ended December 31, 2013. (b) France-Based Employees The Company provides retirement indemnities for employees located in France commensurate with other similar companies in that region. Accruals for these employee retirement obligations amounted to $292,000 and $255,000 at December 31, 2015 and 2014 , respectively. Expenses related to these programs were not material in the periods presented. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2015 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions The Company recognized $8,000 in related party interest income during the year ended December 31, 2013 on loans to officers. The Company had no related party interest income during the years ended December 31, 2015 or 2014. These loans did not have balances outstanding or accrued interest as of December 31, 2015 or 2014. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The components of loss before income taxes are as follows (in thousands): December 31, 2015 2014 2013 Domestic $ (11,438 ) $ (12,879 ) (27,460 ) Foreign (10,489 ) 3,332 1,196 Total $ (21,927 ) $ (9,547 ) (26,264 ) The components of the provision for income taxes are as follows (in thousands): December 31, 2015 2014 2013 Current taxes: United States $ 52 $ 15 57 International 1,299 1,137 1,577 Total current tax expense 1,351 1,152 1,634 Deferred taxes: United States 5 5 5 International (7,430 ) 273 32 Total deferred tax (benefit) expense (7,425 ) 278 37 Income tax (benefit) expense $ (6,074 ) $ 1,430 1,671 Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant components of the Company’s deferred taxes at December 31, 2015 and 2014 are as follows (in thousands): Years Ended December 31, 2015 2014 Deferred tax assets: Current deferred tax assets: Inventory $ — $ 729 Reserves and allowances — 410 Other — 392 Valuation allowance — (1,003 ) Total current deferred tax assets — 528 Noncurrent deferred tax assets: Net operating loss and tax credits carryforwards 34,586 27,395 Amortization 132 154 Other 8,036 2,842 Valuation allowance (32,180 ) (28,731 ) Total noncurrent deferred tax assets $ 10,574 $ 1,660 Deferred tax liabilities: Current deferred tax liabilities: Prepaid and other $ — $ 232 Total current deferred tax liabilities — 232 Noncurrent deferred tax liabilities: Depreciation $ 2,968 $ 2,208 Other 563 — Total noncurrent deferred tax liabilities $ 3,531 $ 2,208 The provision for income taxes for the years ended December 31, 2015 , 2014 and 2013 includes both domestic and foreign income taxes at applicable statutory rates adjusted for non-deductible expenses and other permanent differences. The effective tax rate differs from the statutory rate due to non-deductible expenses, valuation allowance changes on domestic deferred tax assets, foreign tax rate differentials and deferred taxes on intercompany sales. Due to the objective negative evidence of lack of earning history in the U.S., the Company has established a full valuation allowance relating to substantially all of its net deferred tax assets in the U.S. In assessing the deferred tax assets in France, there is no significant objective negative evidence that limits the Company’s ability to consider projections of future growth in determining that it is more likely than not that the tax benefit associated with the net operating loss of the Company’s French subsidiary will be realized. The valuation allowance increased by $2.4 million and $4.4 million during the years ended December 31, 2015 and 2014 , respectively. As of December 31, 2015 and 2014 , the Company has no accrued interest or penalties associated with uncertain tax positions. The jurisdictions in which the Company files income taxes include the U.S., France and Brazil. The Company’s returns are currently under examination by the French Taxing Authority for the tax years 2013 and 2014. The Company is open to income tax examinations for the Company’s U.S. federal and state and local income taxes for 2004 and subsequent years and foreign tax examinations for 2013 and subsequent years. A reconciliation of the statutory U.S. federal tax rate to the Company’s effective rate is as follows: December 31, 2015 2014 2013 Statutory U.S. federal tax rate 34.0 % 34.0 % 34.0 % State taxes (0.3 ) (0.2 ) (0.2 ) Valuation allowance (15.3 ) (38.8 ) (15.5 ) Permanent items (1.7 ) (5.2 ) (24.7 ) Foreign tax rate differentials 10.9 (3.6 ) (0.2 ) Other 0.1 (1.2 ) 0.2 Total 27.7 % (15.0 )% (6.4 )% The Company pays income taxes in France related to intercompany sales in the year the sale occurs; however the recognition of tax expense related to intercompany sales is deferred in the consolidated financial statements until the product is sold to an unrelated third party. The deferred income tax charge is included in other current assets in the consolidated balance sheets. As of December 31, 2015 and 2014, the deferred income tax charge was $1.5 million and $2.7 million , respectively. As of December 31, 2015 , the Company had federal net operating loss carryforwards of approximately $81.4 million , which will begin to expire in 2024 , if not utilized prior to that time. Of the net operating loss carryforward, approximately $9.5 million is due to gross excess tax benefits from stock-based award exercises not recorded as of December 31, 2015 . In the fourth quarter of 2014, the Company experienced an ownership change as defined in Section 382 of the Internal Revenue Code. Due to the ownership change, the Company’s ability to use domestic net operating loss carryforwards to reduce taxable income was limited to approximately $26.4 million annually. Any unused net operating loss carryforwards that exceed the Section 382 limitations in any given year continue to be allowed as carryforwards for the remainder of the 20 year carryforward period. As of December 31, 2015 , the Company had foreign net operating loss carryforwards in France of approximately $20.6 million which have an indefinite carryforward period. Earnings occurring outside the U.S. are deemed to be indefinitely reinvested outside of the U.S. to support the Company’s foreign operations. As a result, if the Company accumulates earnings overseas, it will be used for investment in the Company’s business outside the U.S. The Company will use cash generated from U.S. operations and short- and long-term borrowings to meet the Company’s U.S. cash needs. There were no undistributed earnings as of December 31, 2015 and approximately $22.9 million as of December 31, 2014 . In 2014, the Company completed a research and development study related to expenditures for FDA approval of Mobi-C ® and other implants. The study resulted in the Company recording a tax credit of $1.8 million . The credit is subject to a full valuation allowance. |
Net Loss Per Share
Net Loss Per Share | 12 Months Ended |
Dec. 31, 2015 | |
Earnings Per Share [Abstract] | |
Net Loss Per Share | Net Loss Per Share Net loss per share for the years ended December 31, 2015 , 2014 and 2013 was as follows (in thousands): Years Ended December 31, 2015 2014 2013 Numerator Net loss attributable to common stockholders $ (15,853 ) $ (10,977 ) $ (27,935 ) Denominator Weighted average shares outstanding - basic 27,783 25,288 9,041 Dilutive effect of options and warrants — — — Weighted average shares outstanding - diluted 27,783 25,288 9,041 Net loss per common share - basic and diluted $ (0.57 ) $ (0.43 ) $ (3.09 ) The following common equivalent shares were excluded from the diluted net loss per share calculation as their inclusion would have been anti-dilutive (in thousands): Years Ended December 31, 2015 2014 2013 Stock options 1,992 1,881 1,573 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies (a) Lease Commitments The Company leases office space, equipment and vehicles under noncancelable operating leases which expire by 2024 . Certain of these leases contain rent holidays and scheduled rent increases which are included in the Company’s rent expense and recognized on a straight-line basis. Total rent expense under these operating leases was $3.0 million , $2.9 million and $2.4 million for the years ended December 31, 2015 , 2014 and 2013 , respectively. On March 6, 2015, Médical entered into a Commercial Lease agreement (the Lease) with CIRMAD Est. (the Developer), for an office, warehouse and logistics building being built by the Developer in Troyes, France (the New Premises). The Lease will commence following completion of the New Premises, which is anticipated in the second quarter of 2016, at which time Médical will relocate its headquarters to the New Premises. The initial term of the Lease is ten years. Médical has the option to extend the Lease for an additional nine years, subject to Médical’s right to terminate the Lease on the third anniversary and the sixth anniversary of such extension. The New Premises are 83,250 square feet, and the annual base rent is €1,041,305 , subject to increase based on the tertiary activities rent index published by the French National Institute for Statistics and Economic Studies. In addition to the annual base rent, Médical is required to pay a supplemental rent of €74,000 per year for nine years. On October 8, 2015, Spine entered into a Second Amendment to Lease Agreement (the Amendment) with FPG Aspen Lake Owner LP. The Amendment amends certain terms of Spine’s existing lease dated August 10, 2011 and as amended on November 5, 2012, pursuant to which Spine leases office and warehouse space in Austin, Texas as its global headquarters for the Company. Subject to certain conditions described in the Amendment, the Amendment: (1) expands the net rentable square feet under the Lease by approximately 21,800 square feet, and (2) extends the term of the Lease by sixty months to approximately November 30, 2024. It is anticipated that Spine will become responsible for paying rent with respect to such additional square footage under the Amendment in the first quarter of 2016. Under the operating lease, the Company is required to maintain a $1.0 million letter of credit with a restricted cash balance at the Company’s bank. Future minimum lease payments under noncancelable operating leases and (with initial remaining lease terms in excess of one year) as of December 31, 2015 are as follows (in thousands): Operating Leases (1)(2) Year: 2016 $ 5,930 2017 5,686 2018 5,190 2019 5,064 2020 5,338 Thereafter 24,578 Total minimum lease payments $ 51,786 __________ (1) Assumes completion of the New Premises in Troyes, France and subsequent termination of the existing lease in the second quarter 2016. (2) Assumes rent payments with respect to additional square footage under the Amendment starting in the first quarter of 2016. (b) Government Grants The Company receives grants from the French government to pursue research and development of its French products. These grants are refundable when and if the products become technologically feasible. If the products do not become technologically feasible, then the Company would not be required to refund the grant, resulting in a recorded gain. The Company has recorded grants received of $514,000 and $858,000 in accrued expenses in the consolidated balance sheets as of December 31, 2015 and 2014 , respectively. (c) Supplier Agreements The Company has minimum annual volume commitments to purchase inventory under certain supplier contracts. (d) Litigation From time to time, the Company may be involved in litigation relating to claims arising out of its ordinary course of business. Management believes that there are no claims or actions pending or threatened against the Company, the ultimate disposition of which would have a material impact on the Company’s financial position, results of operations or cash flows. |
Segment and Geographic Informat
Segment and Geographic Information | 12 Months Ended |
Dec. 31, 2015 | |
Segment Reporting [Abstract] | |
Segment and Geographic Information | Segment and Geographic Information Operating segments are defined as components of an enterprise for which separate financial information is available and evaluated regularly by the chief operating decision maker, or decision-making group, in deciding how to allocate resources and in assessing performance. The Company globally manages the business within one reportable segment. Segment information is consistent with how management reviews the business, makes investing and resource allocation decisions and assesses operating performance. The Company’s products are principally sold in the U.S. and France. The following table represents total sales by geographic area, based on the location of the customer (in thousands): Years Ended December 31, 2015 2014 2013 United States $ 133,843 $ 109,597 $ 82,307 France 11,590 12,349 11,233 Other Countries (1) 19,026 19,308 18,054 Total $ 164,459 $ 141,254 $ 111,594 __________ (1) No additional locations are individually significant. The Company classifies its products into two categories: exclusive technology and traditional fusion products. The following table represents total sales by product category (in thousands): Years Ended December 31, 2015 2014 2013 Exclusive technology products $ 152,433 $ 125,013 $ 92,461 Traditional fusion products 12,026 16,241 19,133 Total $ 164,459 $ 141,254 $ 111,594 The following table represents long-lived assets by geographic area (in thousands): December 31, 2015 2014 United States $ 13,853 $ 13,873 France 5,016 3,472 Other Countries (1) 1,784 1,680 Total $ 20,653 $ 19,025 __________ (1) No additional locations are individually significant. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2015 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events In January 2016 , common stock reserved for issuance under the 2013 Plan increased by 1,165,927 to 2,349,881 shares. In January 2016 , common stock reserved for sale under the ESPP increased by 291,481 to 611,577 shares. These annual automatic share increases are part of the 2013 Plan and ESPP as discussed in note 10. |
Quarterly Financial Data (unaud
Quarterly Financial Data (unaudited) | 12 Months Ended |
Dec. 31, 2015 | |
Quarterly Financial Data [Abstract] | |
Quarterly Financial Data (unaudited) | Quarterly Financial Data (unaudited) The following table sets forth our unaudited quarterly consolidated statements of operations data for each of the eight quarters ended December 31, 2015 . The data has been prepared on the same basis as the audited consolidated financial statements and related notes included in this Annual Report on Form 10-K and you should read the following tables in conjunction with such financial statements. The table includes all necessary adjustments, consisting only of normal recurring adjustments that we consider necessary for a fair presentation of this data. The results of historical periods are not necessarily indicative of future results. December 31 September 30 June 30 March 31 2015 2015 2015 2015 (in thousands, except per share data) Revenue $ 44,541 $ 39,294 $ 41,509 $ 39,115 Gross profit 36,635 33,208 34,684 32,672 Operating loss (6,866 ) (5,264 ) (5,078 ) (5,261 ) Net loss (4,756 ) (2,088 ) (5,825 ) (3,184 ) Net loss per common share $ (0.16 ) $ (0.07 ) $ (0.22 ) $ (0.12 ) December 31 September 30 June 30 March 31 2014 2014 2014 2014 (in thousands, except per share data) Revenue $ 39,533 $ 35,901 $ 34,752 $ 31,068 Gross profit 32,690 29,439 28,895 25,812 Operating loss (3,659 ) (2,240 ) (1,795 ) (3,019 ) Net loss (3,131 ) (2,019 ) (2,328 ) (3,499 ) Net loss per common share $ (0.12 ) $ (0.08 ) $ (0.09 ) $ (0.15 ) |
SCHEDULE II - VALUATION AND QUA
SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS | 12 Months Ended |
Dec. 31, 2015 | |
Valuation and Qualifying Accounts [Abstract] | |
SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS | SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS (in thousands) Balance at Beginning of Period Additions Deductions and Adjustments Balance at End of Period Accounts Receivable Valuation Accounts Year ended December 31, 2015 $ 1,351 $ 1,510 $ (685 ) $ 2,176 Year ended December 31, 2014 1,493 603 (745 ) 1,351 Year ended December 31, 2013 1,388 517 (412 ) 1,493 Inventory Reserve Year ended December 31, 2015 $ 4,286 $ 2,845 $ (543 ) $ 6,588 Year ended December 31, 2014 3,477 1,173 (364 ) 4,286 Year ended December 31, 2013 2,792 641 44 3,477 |
Significant Accounting Polici26
Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | Principles of Consolidation The accompanying consolidated financial statements include the results of Holding and its subsidiaries, Spine, Médical and LDR Brazil. All significant intercompany accounts and transactions have been eliminated in consolidation. Prior to the IPO in October 2013 , Holding owned 100% of the outstanding stock and voting rights of Spine and LDR Brazil and 52.95% of the outstanding stock and voting rights of Médical. The remaining 47.05% of the outstanding shares of Médical were subject to the Escrow Agreement discussed in note 9. The shares subject to the Escrow Agreement have been considered as if converted; thus, giving Holding 100% effective ownership of all subsidiaries. After the IPO, Holding owns 100% of the outstanding stock and voting rights of Spine, Médical and LDR Brazil. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America 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 financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results are likely to differ from those estimates, and such differences may be material to the financial statements. |
Foreign Currency Translation and Other Comprehensive Loss | Foreign Currency Translation and Other Comprehensive Loss The functional currency of the Company’s foreign subsidiaries is as follows: Médical is the euro and LDR Brazil is the real. Both companies translate monetary assets and liabilities denominated in other currencies into U.S. dollars at exchange rates in effect at each balance sheet date. Revenues and expenses are translated at the average of the exchange rates in effect during the period, and nonmonetary items are translated at historical rates. The resulting translation adjustments are included in other comprehensive loss. The accumulated foreign currency translation adjustments are reflected as accumulated other comprehensive loss, a component of stockholders’ equity (deficit). Gains and losses arising from intercompany foreign transactions are included in other income (expense) on the consolidated statements of comprehensive loss. |
Cash and Cash Equivalents | Cash and Cash Equivalents The Company considers all highly liquid investments with a remaining maturity of three months or less at date of purchase to be cash equivalents. |
Restricted Cash | Restricted Cash The Company’s restricted cash at December 31, 2015 pertains to a standby letter of credit under Spine’s Second Amendment to Lease Agreement (note 15). |
Accounts Receivable | Accounts Receivable The Company generally extends credit to customers without requiring collateral; however in certain situations, customers may be required to provide prepayment or a letter of credit. Accounts receivable are carried at cost less an allowance for doubtful accounts. On a regular basis, the Company evaluates accounts receivable and estimates an allowance for doubtful accounts, as needed, based on various factors, such as customers’ current credit conditions and history of payment, length of time past due, and the general economy as a whole. Receivables are written off against the allowance when they are deemed uncollectible. |
Inventory | Inventory Inventory is carried at the lower of cost or market using the weighted average method, net of an allowance for excess and obsolete inventory. |
Property and Equipment | Property and Equipment Property and equipment are carried at cost less accumulated depreciation. Depreciation is computed using the straight-line method over the estimated useful lives of the related assets. Useful lives are as follows: two to three years for computer equipment, five to ten years for furniture and equipment and surgical instruments, and the shorter of their estimated useful life or the term of the related lease for leasehold improvements. Upon retirement or sale, the cost of assets disposed and the related accumulated depreciation are removed from the accounts, and any resulting gain or loss is credited or charged to operations. Major renewals and betterments are capitalized. Repairs and maintenance and minor replacements are charged to expense as incurred. |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets Goodwill is not amortized, but is tested annually for impairment or more frequently if impairment indicators exist. Such indicators could include (1) a significant adverse change in legal factors or in business climate, (2) unanticipated competition, or (3) an adverse action or assessment by a regulator. The Company first assesses qualitative factors before performing a quantitative assessment of the fair value of a reporting unit. If it is determined on the basis of qualitative factors that the fair value of the reporting unit is more-likely than-not less than the carrying amount, the existing quantitative impairment test is performed. The Company did not record an impairment of the Company’s goodwill for any of the periods presented. Definite lived intangible assets consists of patents and software licenses. The Company capitalizes third party legal fees and application costs related to its internally developed patents. Legal costs incurred in the defense of the Company’s patents are expensed as incurred. Definite lived intangibles are amortized over their estimated useful lives: ten years for patents and three years for software licenses. Patents and software licenses are amortized on a straight-line basis and are stated net of accumulated amortization. |
Valuation of Long-Lived Assets | Valuation of Long-Lived Assets Long-lived assets are monitored and reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of any such asset may not be recoverable. The determination of recoverability is based on an estimate of undiscounted cash flows expected to result from the use of an asset and its eventual disposition. The estimate of undiscounted cash flows is based upon, among other things, certain assumptions about expected future operating performance, growth rates and other factors. The Company’s estimates of undiscounted cash flows may differ from actual cash flows due to, among other things, technological changes, economic conditions, changes to its business model or changes in its operating performance. If the sum of the undiscounted cash flows is less than the carrying value of the asset, an impairment charge is recognized, measured as the amount by which the carrying value exceeds the fair value of the asset. |
Long-Term Investments | Long-Term Investments The Company’s long-term investment consisted of a cost-method equity investment. The Company has invested in the preferred shares of a privately-held, development-stage additive manufacturing company. The Company owns less than 10% of the voting stock in this entity and does not have the ability to exercise significant influence over it. The carrying value of this entity is reviewed each reporting period for events or changes in circumstances that indicate an impairment of the Company’s investment. Impairment indicators include adverse regulatory actions and changes in the investee’s competitive positions or difficulty in raising funds. If impairment is indicated, the Company determines the fair value of the investment and, if below cost, the Company determines if the loss is temporary or other-than-temporary. Temporary loss is not recognized in the consolidated statement of income and other-than-temporary loss is recognized in other income (expense) in the consolidated statements of comprehensive loss. Impairment adjustments are subject to a high degree of management judgment, as these investments do not have quoted market prices. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments The fair value of the Company’s financial instruments reflects the amounts that the Company estimates to receive in connection with the sale of an asset or paid in connection with the transfer of a liability in an orderly transaction between market participants at the measurement date (exit price). The fair value hierarchy that prioritizes the use of inputs used in valuation techniques is as follows: Level 1 – quoted prices in active markets for identical assets and liabilities; Level 2 – observable inputs other than quoted prices in active markets, such as quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets and liabilities in markets that are not active, or other inputs that are observable or can be corroborated by observable market data; and Level 3 – unobservable inputs reflecting management’s assumptions, consistent with reasonably available assumptions made by other market participants. These valuations require significant judgment. As of December 31, 2015 and 2014 , the fair value of the Company’s long-term debt, short-term financing and borrowings under its revolving credit agreement were categorized as Level 2 in the fair value hierarchy and approximated their carrying value due to the relatively recent issuances and short maturities and based on prevailing market rates for borrowings with similar ratings and maturities. The carrying amounts of the Company’s financial instruments, which primarily include cash and cash equivalents, accounts receivable, accounts payable and accrued expenses, approximate their fair values due to their short maturities. |
Revenue Recognition | Revenue Recognition Revenue is recognized when evidence of an arrangement exists, fees are fixed or determinable, collection of the fees is reasonably assured, and delivery or customer acceptance of the product has occurred and no other significant obligations remain. Further, for direct markets (U.S., France, Germany Belgium and Brazil), the Company recognizes revenue on its products when the spinal implant is used in surgery and a valid purchase order has been received. The Company generally recognizes revenue from sales to distributors at the time the product is shipped to the distributor. Distributors, who sell the products to their customers, take title to the products and assume all risks of ownership at the time of shipment. Distributors are obligated to pay within specified terms regardless of when, if ever, they sell the products. In general, the Company’s customers do not have any rights of return or exchange. |
Shipping and Handling | Shipping and Handling Amounts billed to customers related to shipping and handling are included in revenues. Shipping and handling costs are included in cost of goods sold when related to revenue producing activities. |
Advertising Costs | Advertising Costs The Company expenses advertising costs as incurred. |
Research and Development | Research and Development The Company expenses research and development costs as incurred. |
Medical Device Excise Tax | Medical Device Excise Tax Effective as of January 1, 2013, the Patient Protection and Affordable Care Act, as amended by the Health Care and Education Affordability Reconciliation Act, imposed a medical device excise tax (MDET) of 2.3% on any entity that manufactures or imports certain medical devices offered for sale in the U.S. The Company accounts for the MDET as a component of operating expense and recognized approximately $1.2 million , $939,000 and $729,000 during the years ended December 31, 2015 , 2014 and 2013 , respectively. In December 2015, legislation was passed which provides for a two-year moratorium on the medical device excise tax for 2016 and 2017 |
Stock-Based Compensation | Stock-Based Compensation The Company recognizes compensation costs for all stock-based payment awards made to employees based upon each award’s estimated grant date fair value. The Company utilizes the Black-Scholes option pricing model, which requires a number of assumptions to determine the fair value of the awards. Compensation cost is recognized on a straight-line basis over the requisite service period of the award, net of an estimated forfeiture rate. Adjustments for actual forfeitures are made in the period in which they occur. |
Net Loss Per Share | Net Loss Per Share The Company computes basic net loss per common share by dividing net loss attributable to common stockholders by the weighted average common shares outstanding for the period, which includes shares of Médical that are subject to the Escrow Agreement discussed in note 9 prior to the IPO. During periods of income, the Company allocates participating securities a proportional share of income determined by dividing total weighted average participating securities by the sum of the total weighted average common shares and participating securities (the two-class method). The Company’s preferred stock participates in any dividends declared by the Company and are therefore considered to be participating securities. During periods of loss, the Company allocates no loss to participating securities because they have no contractual obligation to share in the losses of the Company. Warrants that are liability classified are excluded from the calculation of basic net loss per share. The Company computes diluted net loss per common share after giving consideration to the dilutive effect of the Company’s convertible preferred stock, stock options and warrants that are outstanding during the period and the conversion of the Company’s convertible debt into shares of common stock, except where such would be anti-dilutive. Because the Company reported losses for the periods presented, all potentially dilutive common shares consisting of preferred stock, stock options, warrants and convertible debt are antidilutive. Refer to note 14 for the Company’s calculation of net loss per share for the periods presented. |
Income Taxes | Income Taxes The Company accounts for income taxes using the asset and liability method whereby deferred tax asset and liability account balances are determined based on differences between financial reporting and tax bases of assets and liabilities and are measured using the enacted tax rates and laws expected to be in effect when the asset or liability is expected to be realized or settled. Valuation allowances are established, when necessary, to reduce deferred tax assets to the amount that is deemed more likely than not to be realized. In the ordinary course of business, there are many transactions for which the ultimate tax outcome is uncertain. The Company assesses uncertain tax positions in each of the tax jurisdictions in which it has operations and accounts for the related financial statement implications. Unrecognized tax benefits are reported using the two step approach under which tax effects of a position are recognized only if it is more likely than not to be sustained and the amount of the tax benefit recognized is equal to the largest tax benefit that is greater than fifty percent likely of being realized upon ultimate settlement of the tax position. Determining the appropriate level of unrecognized tax benefits requires the Company to exercise judgment regarding the uncertain application of tax law. The amount of unrecognized tax benefits is adjusted when information becomes available or when an event occurs indicating a change is appropriate. The Company includes interest and penalties related to its uncertain tax positions as part of income tax expense, if any. |
Interest Expense | Interest Expense The Company amortizes discounts associated with long-term debt obligations using the effective interest rate method. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In November 2015, Financial Accounting Standards Board, or FASB, issued ASU No. 2015-17, Balance Sheet Classification of Deferred Taxes (ASU 2015-17), which simplifies the presentation of deferred taxes on the balance sheet by requiring that all deferred taxes and liabilities, along with any related valuation allowance, be classified as noncurrent deferred tax asset or liability. The guidance does not change the existing requirement that only permits offsetting within a jurisdiction. The Company adopted ASU 2015-17 prospectively beginning in 2015, therefore prior periods were not adjusted. In July 2015, the FASB, issued ASU No. 2015-11, Simplifying the Measurement of Inventory (ASU 2015-11), which simplifies the subsequent measurement of inventory by requiring inventory to be measured at the lower of cost and net realizable value. Net realizable value is the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation. ASU 2015-11 will be effective for the Company on January 1, 2017. The Company does not expect the adoption of ASU 2015-11 will have a material impact on its consolidated financial statements. In April 2015, the FASB issued ASU No. 2015-03, Simplifying the Presentation of Debt Issuance Costs (ASU 2015-03), which requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. ASU 2015-03 requires retrospective adoption and will be effective for the Company on January 1, 2016. Early adoption is permitted. The Company does not expect the adoption of ASU 2015-03 will have a material impact on its financial statements. In May 2014, the FASB, issued ASU No. 2014-09, Revenue from Contracts with Customers (ASU 2014-09), which requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. ASU 2014-09 will replace most existing revenue recognition guidance in GAAP when it becomes effective. The new standard will be effective for the Company on January 1, 2018. Early application is not permitted. The standard permits the use of either the retrospective or cumulative effect transition method. The Company is evaluating the effect that ASU 2014-09 will have on its consolidated financial statements and related disclosures. The Company has not yet selected a transition method and has not determined the effect of the standard on its ongoing financial reporting. |
Significant Accounting Polici27
Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Schedule of the Components of inventory, Net of Allowance | The components of inventory, net of allowance, as of December 31, 2015 and 2014 are as follows (in thousands): December 31, 2015 2014 Finished goods $ 26,351 $ 21,337 Work in process 3,072 3,356 Raw materials 298 303 Total $ 29,721 $ 24,996 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Property, Plant and Equipment [Abstract] | |
Schedule of property and equipment | Property and equipment consist of the following (in thousands): December 31, 2015 2014 Furniture and equipment $ 4,981 $ 4,613 Surgical instruments 32,122 27,068 Leasehold improvements 1,396 1,226 38,499 32,907 Less accumulated depreciation and amortization (17,846 ) (13,882 ) $ 20,653 $ 19,025 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of intangible assets | Intangible assets consist of the following (in thousands): December 31, 2015 2014 Patents and trademarks $ 6,595 $ 6,469 Software licenses 1,590 393 8,185 6,862 Less accumulated amortization (4,157 ) (3,004 ) $ 4,028 $ 3,858 |
Schedule of expected amortization | The expected amortization for each of the next five years as of December 31, 2015 is as follows (in thousands): 2016 $ 846 2017 576 2018 452 2019 418 2020 360 Thereafter 1,376 $ 4,028 |
Accrued Expenses (Tables)
Accrued Expenses (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Payables and Accruals [Abstract] | |
Schedule of accrued expenses | Accrued expenses consist of the following (in thousands): December 31, 2015 2014 Compensation and other employee related costs $ 12,354 $ 10,960 Contributions withheld for Employee Stock Purchase Plan 120 94 Royalties 1,288 1,575 Clinical and regulatory costs 740 376 Government grants 514 858 Rent 1,523 1,841 Taxes 1,345 2,479 Other 1,611 1,183 $ 19,495 $ 19,366 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Debt Disclosure [Abstract] | |
Schedule of long-term debt | Long-term debt consists of the following (in thousands): December 31, 2015 2014 Line of credit $ — $ 18,166 Short-term financing 4,486 4,343 Various notes payable 1,278 2,431 Total long-term debt 5,764 24,940 Less current portion of long-term debt and short-term financing (5,087 ) (5,352 ) Long-term debt and line of credit, net of discount and current portion $ 677 $ 19,588 |
Schedule of future minimum principal payments | Future minimum principal payments of long-term debt by year as of December 31, 2015 are as follows (in thousands): 2016 $ 5,087 2017 426 2018 175 2019 76 2020 — Thereafter — $ 5,764 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Schedule of the stock option activity | A summary of the stock option activity for the Company for the year ended December 31, 2015 is as follows: Shares Weighted - Average Exercise Price Weighted - Average Remaining Contractual Term Aggregate Intrinsic Value (Years) ($000's) Outstanding - December 31, 2014 1,881,369 $ 19.30 8.21 $ 26,484 Options granted 566,600 35.12 Options exercised (307,783 ) 9.85 Options forfeited (147,739 ) 24.30 Outstanding - December 31, 2015 1,992,447 $ 24.80 7.96 $ 10,668 Options vested and expected to vest: At December 31, 2014 1,778,371 $ 19.30 8.21 $ 25,502 At December 31, 2015 1,871,980 $ 24.29 7.88 $ 10,633 Options exercisable: At December 31, 2014 786,473 $ 8.94 8.21 $ 18,898 At December 31, 2015 866,248 $ 17.53 6.90 $ 9,066 |
Schedule of fair value of stock options grants | The fair value of stock option grants has been estimated at the date of grant using the Black-Scholes option pricing model with the following weighted average assumptions: Years Ended December 31, 2015 2014 2013 Expected dividend yield — % — % — % Volatility 43.34 % 48.41 % 52.02 % Risk-free rate of return 1.74 % 1.92 % 1.70 % Expected term 6 years 6 years 6 years |
Summary of additional information regarding options | Additional information regarding options is as follows (in thousands except for per share amounts): Years Ended December 31, 2015 2014 2013 Weighted-average grant date fair value per share of options granted during the period $ 15.24 $ 15.16 $ 7.08 Aggregate intrinsic value of options exercised during the period $ 7,884 $ 17,465 $ 307 |
Schedule of stock-based compensation expense | The Company’s stock-based compensation expense related to employee stock options, restricted stock units, performance stock units and ESPP awards for the years ended December 31, 2015 , 2014 and 2013 was as follows (in thousands): Years Ended December 31, 2015 2014 2013 Research and development $ 319 $ 572 $ 153 Sales and marketing 3,175 2,930 786 General and administrative 5,870 1,723 330 Total $ 9,364 $ 5,225 $ 1,269 |
Performance-Based Restricted Stock Unit Activity | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Schedule of restricted stock units activity | A summary of the performance-based restricted stock unit activity for the Company for the year ended December 31, 2015 is as follows and is based on attainment of revenue at the target thresholds which the Company believes are probable of occurrence: Units Weighted - Average Grant Date Fair Value Per Share Weighted - Average Remaining Contractual Term Aggregate Intrinsic Value (Years) ($000's) Unvested - December 31, 2014 — $ — — $ — Performance-based restricted stock units granted 80,400 32.78 Performance-based restricted stock units vested — — Performance-based restricted stock units forfeited — — Unvested - December 31, 2015 80,400 $ 32.78 1.50 $ 2,019 |
Restricted Stock Units (RSUs) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Schedule of restricted stock units activity | A summary of the restricted stock unit activity for the Company for the year ended December 31, 2015 is as follows: Units Weighted - Average Grant Date Fair Value Per Share Weighted - Average Remaining Contractual Term Aggregate Intrinsic Value (Years) ($000's) Unvested - December 31, 2014 99,500 $ 27.06 2.94 $ 3,000 Restricted stock units granted 78,000 34.53 Restricted stock units vested (27,004 ) 26.8 Restricted stock units forfeited — — Unvested - December 31, 2015 150,496 $ 30.98 1.15 $ 3,779 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Schedule of components of loss before income taxes | The components of loss before income taxes are as follows (in thousands): December 31, 2015 2014 2013 Domestic $ (11,438 ) $ (12,879 ) (27,460 ) Foreign (10,489 ) 3,332 1,196 Total $ (21,927 ) $ (9,547 ) (26,264 ) |
Schedule of components of the provision for income taxes | The components of the provision for income taxes are as follows (in thousands): December 31, 2015 2014 2013 Current taxes: United States $ 52 $ 15 57 International 1,299 1,137 1,577 Total current tax expense 1,351 1,152 1,634 Deferred taxes: United States 5 5 5 International (7,430 ) 273 32 Total deferred tax (benefit) expense (7,425 ) 278 37 Income tax (benefit) expense $ (6,074 ) $ 1,430 1,671 |
Schedule of significant components of deferred taxes | Significant components of the Company’s deferred taxes at December 31, 2015 and 2014 are as follows (in thousands): Years Ended December 31, 2015 2014 Deferred tax assets: Current deferred tax assets: Inventory $ — $ 729 Reserves and allowances — 410 Other — 392 Valuation allowance — (1,003 ) Total current deferred tax assets — 528 Noncurrent deferred tax assets: Net operating loss and tax credits carryforwards 34,586 27,395 Amortization 132 154 Other 8,036 2,842 Valuation allowance (32,180 ) (28,731 ) Total noncurrent deferred tax assets $ 10,574 $ 1,660 Deferred tax liabilities: Current deferred tax liabilities: Prepaid and other $ — $ 232 Total current deferred tax liabilities — 232 Noncurrent deferred tax liabilities: Depreciation $ 2,968 $ 2,208 Other 563 — Total noncurrent deferred tax liabilities $ 3,531 $ 2,208 |
Schedule of reconciliation of statutory U.S. federal tax rate to effective tax rate | A reconciliation of the statutory U.S. federal tax rate to the Company’s effective rate is as follows: December 31, 2015 2014 2013 Statutory U.S. federal tax rate 34.0 % 34.0 % 34.0 % State taxes (0.3 ) (0.2 ) (0.2 ) Valuation allowance (15.3 ) (38.8 ) (15.5 ) Permanent items (1.7 ) (5.2 ) (24.7 ) Foreign tax rate differentials 10.9 (3.6 ) (0.2 ) Other 0.1 (1.2 ) 0.2 Total 27.7 % (15.0 )% (6.4 )% |
Net Loss Per Share (Tables)
Net Loss Per Share (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Earnings Per Share [Abstract] | |
Schedule of net loss per share | Net loss per share for the years ended December 31, 2015 , 2014 and 2013 was as follows (in thousands): Years Ended December 31, 2015 2014 2013 Numerator Net loss attributable to common stockholders $ (15,853 ) $ (10,977 ) $ (27,935 ) Denominator Weighted average shares outstanding - basic 27,783 25,288 9,041 Dilutive effect of options and warrants — — — Weighted average shares outstanding - diluted 27,783 25,288 9,041 Net loss per common share - basic and diluted $ (0.57 ) $ (0.43 ) $ (3.09 ) |
Schedule of common equivalent shares | The following common equivalent shares were excluded from the diluted net loss per share calculation as their inclusion would have been anti-dilutive (in thousands): Years Ended December 31, 2015 2014 2013 Stock options 1,992 1,881 1,573 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of future minimum lease payments under noncancelable operating leases | Future minimum lease payments under noncancelable operating leases and (with initial remaining lease terms in excess of one year) as of December 31, 2015 are as follows (in thousands): Operating Leases (1)(2) Year: 2016 $ 5,930 2017 5,686 2018 5,190 2019 5,064 2020 5,338 Thereafter 24,578 Total minimum lease payments $ 51,786 __________ (1) Assumes completion of the New Premises in Troyes, France and subsequent termination of the existing lease in the second quarter 2016. (2) Assumes rent payments with respect to additional square footage under the Amendment starting in the first quarter of 2016. |
Segment and Geographic Inform36
Segment and Geographic Information (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Segment Reporting [Abstract] | |
Summary of total sales by geographic area | The following table represents total sales by geographic area, based on the location of the customer (in thousands): Years Ended December 31, 2015 2014 2013 United States $ 133,843 $ 109,597 $ 82,307 France 11,590 12,349 11,233 Other Countries (1) 19,026 19,308 18,054 Total $ 164,459 $ 141,254 $ 111,594 __________ (1) No additional locations are individually significant. |
Summary of total sales by product category | The following table represents total sales by product category (in thousands): Years Ended December 31, 2015 2014 2013 Exclusive technology products $ 152,433 $ 125,013 $ 92,461 Traditional fusion products 12,026 16,241 19,133 Total $ 164,459 $ 141,254 $ 111,594 |
Summary of long lived assets by geographic area | The following table represents long-lived assets by geographic area (in thousands): December 31, 2015 2014 United States $ 13,853 $ 13,873 France 5,016 3,472 Other Countries (1) 1,784 1,680 Total $ 20,653 $ 19,025 __________ (1) No additional locations are individually significant. |
Quarterly Financial Data (una37
Quarterly Financial Data (unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Quarterly Financial Data [Abstract] | |
Schedule of quarterly financial data | The following table sets forth our unaudited quarterly consolidated statements of operations data for each of the eight quarters ended December 31, 2015 . The data has been prepared on the same basis as the audited consolidated financial statements and related notes included in this Annual Report on Form 10-K and you should read the following tables in conjunction with such financial statements. The table includes all necessary adjustments, consisting only of normal recurring adjustments that we consider necessary for a fair presentation of this data. The results of historical periods are not necessarily indicative of future results. December 31 September 30 June 30 March 31 2015 2015 2015 2015 (in thousands, except per share data) Revenue $ 44,541 $ 39,294 $ 41,509 $ 39,115 Gross profit 36,635 33,208 34,684 32,672 Operating loss (6,866 ) (5,264 ) (5,078 ) (5,261 ) Net loss (4,756 ) (2,088 ) (5,825 ) (3,184 ) Net loss per common share $ (0.16 ) $ (0.07 ) $ (0.22 ) $ (0.12 ) December 31 September 30 June 30 March 31 2014 2014 2014 2014 (in thousands, except per share data) Revenue $ 39,533 $ 35,901 $ 34,752 $ 31,068 Gross profit 32,690 29,439 28,895 25,812 Operating loss (3,659 ) (2,240 ) (1,795 ) (3,019 ) Net loss (3,131 ) (2,019 ) (2,328 ) (3,499 ) Net loss per common share $ (0.12 ) $ (0.08 ) $ (0.09 ) $ (0.15 ) |
Organization and Business Des38
Organization and Business Description (Details) $ / shares in Units, $ in Thousands | Oct. 15, 2013USD ($)$ / sharesshares | Oct. 15, 2013$ / shares | Oct. 03, 2013 | Aug. 31, 2015USD ($)$ / sharesshares | Jun. 30, 2014USD ($)$ / sharesshares | May. 31, 2014USD ($)$ / sharesshares | Oct. 31, 2013shares | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) |
Class of Stock [Line Items] | ||||||||||
Share price (in dollars per share) | $ / shares | $ 15 | $ 15 | ||||||||
Net proceeds | $ | $ 77,500 | $ 92,000 | $ 36,628 | $ 86,250 | ||||||
Underwriting discounts and expenses | $ | $ 8,700 | |||||||||
Shares of common stock, conversion ratio | 0.1481 | 0.1481 | ||||||||
Equity Option | ||||||||||
Class of Stock [Line Items] | ||||||||||
Issuance of common stock (in shares) | 750,000 | |||||||||
Common Stock | ||||||||||
Class of Stock [Line Items] | ||||||||||
Share price (in dollars per share) | $ / shares | $ 40 | $ 24,500 | $ 24.50 | |||||||
Net proceeds | $ | $ 86,900 | $ 34,000 | $ 34,000 | |||||||
Underwriting discounts and expenses | $ | $ 5,100 | $ 2,600 | $ 2,600 | |||||||
IPO | ||||||||||
Class of Stock [Line Items] | ||||||||||
Issuance of common stock (in shares) | 5,750,000 | |||||||||
IPO | Common Stock | ||||||||||
Class of Stock [Line Items] | ||||||||||
Issuance of common stock (in shares) | 5,750,000 | |||||||||
Secondary Public Offering | ||||||||||
Class of Stock [Line Items] | ||||||||||
Issuance of common stock (in shares) | 2,300,000 | 1,495,000,000 | 1,495,000 | |||||||
Secondary Public Offering | Underwriters | ||||||||||
Class of Stock [Line Items] | ||||||||||
Issuance of common stock (in shares) | 300,000 | 195,000,000 | 195,000 |
Significant Accounting Polici39
Significant Accounting Policies - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Dec. 31, 2012 | |
Significant Accounting Policies [Line Items] | |||||
Ownership percentage | 100.00% | ||||
Allowance for doubtful accounts | $ 2,200 | $ 1,400 | |||
Inventory held by hospitals and sales agents | $ 29,721 | 24,996 | |||
Allowances for excess and obsolete inventory | 4,300 | ||||
Percentage of voting stock (less than) | 10.00% | ||||
Advertising costs | $ 447 | 337 | $ 268 | ||
Medical devise excise tax (as a percent) | 2.30% | ||||
Medical device excise tax | $ 1,200 | 939 | 729 | ||
Patents | |||||
Significant Accounting Policies [Line Items] | |||||
Definite-lived intangibles useful lives | 10 years | ||||
Computer Software, Intangible Asset | |||||
Significant Accounting Policies [Line Items] | |||||
Definite-lived intangibles useful lives | 3 years | ||||
Minimum | Computer Equipment | |||||
Significant Accounting Policies [Line Items] | |||||
Useful lives | 2 years | ||||
Minimum | Furniture and Fixtures | |||||
Significant Accounting Policies [Line Items] | |||||
Useful lives | 5 years | ||||
Maximum | Computer Equipment | |||||
Significant Accounting Policies [Line Items] | |||||
Useful lives | 3 years | ||||
Maximum | Furniture and Fixtures | |||||
Significant Accounting Policies [Line Items] | |||||
Useful lives | 10 years | ||||
Inventory Held by Hospitals and Sales Agents | |||||
Significant Accounting Policies [Line Items] | |||||
Inventory held by hospitals and sales agents | $ 9,800 | 7,100 | |||
Inventory Valuation Reserve | |||||
Significant Accounting Policies [Line Items] | |||||
Allowance for excess and obsolete inventory | 6,588 | 4,286 | 3,477 | $ 2,792 | |
Other Income and Expense | |||||
Significant Accounting Policies [Line Items] | |||||
Foreign exchange gain (loss) | $ 1,000 | $ 2,200 | $ (764) | ||
Medical | |||||
Significant Accounting Policies [Line Items] | |||||
Ownership percentage | 100.00% | ||||
LDR Medical, SAS | |||||
Significant Accounting Policies [Line Items] | |||||
Ownership percentage | 52.95% | ||||
Percentage of outstanding shares held in escrow | 47.05% |
Significant Accounting Polici40
Significant Accounting Policies - Schedule of the Components of inventory, Net of Allowance (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Accounting Policies [Abstract] | ||
Finished goods | $ 26,351 | $ 21,337 |
Work in process | 3,072 | 3,356 |
Raw materials | 298 | 303 |
Total | $ 29,721 | $ 24,996 |
Concentration of Credit Risk (D
Concentration of Credit Risk (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Risks and Uncertainties [Abstract] | |||
Bad debt expense | $ 1,510 | $ 603 | $ 517 |
Property and Equipment - Schedu
Property and Equipment - Schedule of Property and Equipment (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Property, Plant and Equipment [Line Items] | ||
Property and equipment | $ 38,499 | $ 32,907 |
Less accumulated depreciation and amortization | (17,846) | (13,882) |
Property and equipment, net | 20,653 | 19,025 |
Furniture and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment | 4,981 | 4,613 |
Surgical instruments | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment | 32,122 | 27,068 |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment | $ 1,396 | $ 1,226 |
Property and Equipment - Narrat
Property and Equipment - Narrative (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Property, Plant and Equipment [Line Items] | |||
Amount in instrument sets that had not yet been placed into service | $ 38,499,000 | $ 32,907,000 | |
Depreciation expense | 5,400,000 | 4,100,000 | $ 3,500,000 |
Instrument Sets | |||
Property, Plant and Equipment [Line Items] | |||
Amount in instrument sets that had not yet been placed into service | 3,200,000 | 2,300,000 | |
Depreciation expense | $ 0 | $ 29,000 | $ 133,000 |
Intangible Assets - Narrative (
Intangible Assets - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Amortization expense | $ 860 | $ 612 | $ 528 |
Intangible Assets - Schedule of
Intangible Assets - Schedule of Intangible Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets | $ 8,185 | $ 6,862 |
Less accumulated amortization | (4,157) | (3,004) |
Intangible assets, net | 4,028 | 3,858 |
Patents and trademarks | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets | 6,595 | 6,469 |
Software licenses | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets | $ 1,590 | $ 393 |
Intangible Assets - Schedule 46
Intangible Assets - Schedule of Expected Amortization (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | ||
2,016 | $ 846 | |
2,017 | 576 | |
2,018 | 452 | |
2,019 | 418 | |
2,020 | 360 | |
Thereafter | 1,376 | |
Intangible assets, net | $ 4,028 | $ 3,858 |
Accrued Expenses (Details)
Accrued Expenses (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Payables and Accruals [Abstract] | ||
Compensation and other employee related costs | $ 12,354 | $ 10,960 |
Contributions withheld for Employee Stock Purchase Plan | 120 | 94 |
Royalties | 1,288 | 1,575 |
Clinical and regulatory costs | 740 | 376 |
Government grants | 514 | 858 |
Rent | 1,523 | 1,841 |
Taxes | 1,345 | 2,479 |
Other | 1,611 | 1,183 |
Accrued Liabilities | $ 19,495 | $ 19,366 |
Long-Term Debt - Schedule of Lo
Long-Term Debt - Schedule of Long-term Debt (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Debt Disclosure [Abstract] | ||
Line of credit | $ 0 | $ 18,166 |
Short-term financing | 4,486 | 4,343 |
Various notes payable | 1,278 | 2,431 |
Total long-term debt | 5,764 | 24,940 |
Total long-term debt | (5,087) | (5,352) |
Long-term debt and line of credit, net of discount and current portion | $ 677 | $ 19,588 |
Long-Term Debt - Line of Credit
Long-Term Debt - Line of Credit Narrative (Details) - USD ($) | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||||||
Apr. 30, 2014 | Oct. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2015 | Aug. 31, 2015 | Dec. 31, 2014 | Jun. 30, 2014 | May. 31, 2014 | Oct. 15, 2013 | |
Line of Credit Facility [Line Items] | |||||||||
Line of credit | $ 0 | $ 18,166,000 | |||||||
Share price (in dollars per share) | $ 15 | ||||||||
Series C Preferred Stock | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Warrants issued to purchase shares | 154,506 | ||||||||
Share price (in dollars per share) | $ 1.165 | ||||||||
Risk free interest rate | 3.00% | ||||||||
Dividend yield | 0.00% | ||||||||
Weighted average expected life of the warrant | 7 years | ||||||||
Volatility factor (as a percent) | 75.00% | ||||||||
Series C Preferred Stock | Warrant | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Fair value of warrant | $ 155,000 | ||||||||
Common Stock | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Share price (in dollars per share) | $ 40 | $ 24,500 | $ 24.50 | ||||||
Common Stock | Warrant | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Shares of common stock | 10,889 | ||||||||
Credit Facility Agreement | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Revolving line of credit | $ 25,000,000 | $ 19,000,000 | |||||||
Four quarter EBITDA exceeding threshold amount | 5,000,000 | ||||||||
Minimum net worth covenant | $ 12,500,000 | ||||||||
Tangible net worth covenant | 50,000,000 | ||||||||
Minimum cash balance | $ 20,000,000 | ||||||||
Credit Facility Agreement | LIBOR | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Banks prime rate | 2.50% | ||||||||
Credit Facility Agreement | Minimum | Prime Rate | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Banks prime rate | 0.25% | ||||||||
Credit Facility Agreement | Maximum | Prime Rate | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Banks prime rate | 2.00% | ||||||||
Line of Credit | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Line of credit | 0 | ||||||||
Amount available under line of credit | 25,000,000 | ||||||||
Commitment fee | $ 0.0025 | ||||||||
Interest rate on borrowings under line of credit | 3.50% | 3.50% |
Long-Term Debt - Short-Term Fin
Long-Term Debt - Short-Term Financing and Various Notes Payable (Details) - Medical $ in Thousands | 12 Months Ended | |
Dec. 31, 2015USD ($)Entity | Dec. 31, 2014USD ($)Entity | |
Debt Instrument [Line Items] | ||
Number of entities | Entity | 3 | 5 |
Loans Payable | ||
Debt Instrument [Line Items] | ||
Interest rate (minimum) | 2.53% | 2.53% |
Interest rate (maximum) | 3.87% | 4.65% |
Minimum | Loans Payable | ||
Debt Instrument [Line Items] | ||
Amount of outstanding loans | $ 83 | $ 55 |
Maximum | Loans Payable | ||
Debt Instrument [Line Items] | ||
Amount of outstanding loans | $ 437 | $ 729 |
Short-term Debt | ||
Debt Instrument [Line Items] | ||
Repayment period | 90 days | |
Weighted average interest rates for short-term balances outstanding | 2.60% | 2.30% |
Long-Term Debt - Schedule of Fu
Long-Term Debt - Schedule of Future Minimum Principal Payments of Long Term Debt by Year (Details) $ in Thousands | Dec. 31, 2015USD ($) |
Debt Disclosure [Abstract] | |
2,016 | $ 5,087 |
2,017 | 426 |
2,018 | 175 |
2,019 | 76 |
2,020 | 0 |
Thereafter | 0 |
Long-term debt | $ 5,764 |
Stockholders' Equity - Authoriz
Stockholders' Equity - Authorized Stock (Details) | Oct. 15, 2013shares | Oct. 03, 2013 | Oct. 31, 2013 | Dec. 31, 2015$ / sharesshares | Dec. 31, 2014$ / sharesshares | Sep. 30, 2013$ / sharesshares |
Class of Stock [Line Items] | ||||||
Shares of common stock and preferred stock authorized | 112,000,000 | 92,723,696 | ||||
Shares of common stock authorized | 107,000,000 | 107,000,000 | 18,167,361 | |||
Common stock, par value per share (in dollars per share) | $ / shares | $ 0.001 | $ 0.001 | $ 0.001 | |||
Shares of preferred stock authorized | 5,000,000 | 74,556,335 | ||||
Preferred stock, par value per share (in dollars per share) | $ / shares | $ 0.001 | $ 0.001 | ||||
Preferred stock issued (in shares) | 0 | 0 | ||||
Preferred stock outstanding (in shares) | 0 | 0 | 0 | |||
Shares of common stock, conversion ratio | 0.1481 | 0.1481 | ||||
Series A-1 | ||||||
Class of Stock [Line Items] | ||||||
Shares of preferred stock authorized | 11,120,119 | |||||
Series A-2 | ||||||
Class of Stock [Line Items] | ||||||
Shares of preferred stock authorized | 18,097,848 | |||||
Series B | ||||||
Class of Stock [Line Items] | ||||||
Shares of preferred stock authorized | 14,838,368 | |||||
Series C | ||||||
Class of Stock [Line Items] | ||||||
Shares of preferred stock authorized | 30,500,000 | |||||
Medical | Common Class A | ||||||
Class of Stock [Line Items] | ||||||
Shares of common stock, conversion ratio | 0.1724 |
Stockholders' Equity - Initial
Stockholders' Equity - Initial Public Offering (Details) $ / shares in Units, $ in Thousands | Oct. 15, 2013USD ($)$ / sharesshares | Oct. 15, 2013$ / sharesshares | Oct. 03, 2013 | Aug. 31, 2015USD ($)$ / shares | Jun. 30, 2014USD ($)$ / shares | May. 31, 2014USD ($)$ / shares | Oct. 31, 2013shares | Dec. 31, 2015USD ($)shares | Dec. 31, 2014USD ($)shares | Dec. 31, 2013USD ($) |
Class of Stock [Line Items] | ||||||||||
Share price (in dollars per share) | $ / shares | $ 15 | $ 15 | ||||||||
Net proceeds | $ | $ 77,500 | $ 92,000 | $ 36,628 | $ 86,250 | ||||||
Underwriting discounts and expenses | $ | $ 8,700 | |||||||||
Shares of preferred stock outstanding | 0 | 0 | 0 | 0 | ||||||
Shares of common stock, conversion ratio | 0.1481 | 0.1481 | ||||||||
Common Stock | ||||||||||
Class of Stock [Line Items] | ||||||||||
Share price (in dollars per share) | $ / shares | $ 40 | $ 24,500 | $ 24.50 | |||||||
Net proceeds | $ | $ 86,900 | $ 34,000 | $ 34,000 | |||||||
Underwriting discounts and expenses | $ | $ 5,100 | $ 2,600 | $ 2,600 | |||||||
Shares of common stock after conversion | 10,977,667 | 10,977,667 | ||||||||
Series C | ||||||||||
Class of Stock [Line Items] | ||||||||||
Payments for voting agreement | $ | $ 17,100 | |||||||||
Common Class A | Medical | ||||||||||
Class of Stock [Line Items] | ||||||||||
Aggregate amount of shares | 3,110,024 | |||||||||
Shares of common stock, conversion ratio | 0.1724 | |||||||||
Equity Option | ||||||||||
Class of Stock [Line Items] | ||||||||||
Issuance of common stock in public offering (in shares) | 750,000 | |||||||||
IPO | ||||||||||
Class of Stock [Line Items] | ||||||||||
Issuance of common stock in public offering (in shares) | 5,750,000 | |||||||||
IPO | Common Stock | ||||||||||
Class of Stock [Line Items] | ||||||||||
Issuance of common stock in public offering (in shares) | 5,750,000 |
Stockholders' Equity - Follow-O
Stockholders' Equity - Follow-On Public Offerings (Details) - USD ($) $ / shares in Units, $ in Thousands | Oct. 15, 2013 | Aug. 31, 2015 | Jun. 30, 2014 | May. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Class of Stock [Line Items] | |||||||
Share price (in dollars per share) | $ 15 | ||||||
Net proceeds | $ 77,500 | $ 92,000 | $ 36,628 | $ 86,250 | |||
Underwriting discounts and expenses | $ 8,700 | ||||||
Common Stock | |||||||
Class of Stock [Line Items] | |||||||
Share price (in dollars per share) | $ 40 | $ 24,500 | $ 24.50 | ||||
Net proceeds | $ 86,900 | $ 34,000 | $ 34,000 | ||||
Underwriting discounts and expenses | $ 5,100 | $ 2,600 | $ 2,600 | ||||
Secondary Public Offering | |||||||
Class of Stock [Line Items] | |||||||
Shares sold | 2,300,000 | 1,495,000,000 | 1,495,000 | ||||
Underwriters | Secondary Public Offering | |||||||
Class of Stock [Line Items] | |||||||
Shares sold | 300,000 | 195,000,000 | 195,000 |
Stock-Based Compensation - 2007
Stock-Based Compensation - 2007 Plan (Details) - Performance Shares - 2007 Plan | 12 Months Ended |
Dec. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Threshold of exercise price (as a percent) (not less than) | 100.00% |
Threshold of stock option grants to stakeholder (as a percent) (greater than) | 10.00% |
Percentage of voting power | 10.00% |
Threshold of exercise price per share (as a percent) (not less than) | 110.00% |
Threshold of vesting period (no later than) | 10 years |
Percentage of options vested | 25.00% |
Vesting Period One | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Vesting period | 1 year |
Vesting Period Two Through Four | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Vesting period | 36 months |
Stock-Based Compensation - 2013
Stock-Based Compensation - 2013 Plan (Details) - 2013 Plan - shares | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Shares of common stock | 1,183,954 | 758,074 |
Percentage of number of shares of common stock issued and outstanding | 4.00% | |
Performance Shares | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Threshold of exercise price (as a percent) (not less than) | 100.00% | |
Threshold of stock option grants to stakeholder (as a percent) (greater than) | 10.00% | |
Threshold of exercise price per share (as a percent) (not less than) | 110.00% |
Stock-Based Compensation - Sche
Stock-Based Compensation - Schedule of the Stock Option Activity (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Shares | ||
Options outstanding, beginning (in shares) | 1,881,369 | |
Options granted (in shares) | 566,600 | |
Options exercised (in shares) | (307,783) | |
Options forfeited (in shares) | (147,739) | |
Options outstanding, ending (in shares) | 1,992,447 | 1,881,369 |
Options vested and expected to vest (in shares) | 1,871,980 | 1,778,371 |
Options exercisable (in shares) | 866,248 | 786,473 |
Weighted - Average Exercise Price | ||
Options outstanding, beginning (in dollars per share) | $ 19.30 | |
Options granted (in dollars per share) | 35.12 | |
Options exercised (in dollars per share) | 9.85 | |
Options forfeited (in dollars per share) | 24.30 | |
Options outstanding, ending (in dollars per share) | 24.80 | $ 19.30 |
Options vested and expected to vest (in dollars per share) | 24.29 | 19.30 |
Options exercisable (in dollars per share) | $ 17.53 | $ 8.94 |
Weighted - Average Remaining Contractual Term | ||
Weighted average remaining contractual term, options outstanding | 7 years 11 months 16 days | 8 years 2 months 16 days |
Weighted average remaining contractual term, options vested and expected to vest | 7 years 10 months 17 days | 8 years 2 months 16 days |
Weighted average remaining contractual term, options exercisable | 6 years 10 months 24 days | 8 years 2 months 16 days |
Aggregate Intrinsic Value | ||
Aggregate intrinsic value outstanding | $ 10,668 | $ 26,484 |
Aggregate intrinsic value, options vested and expected to vest | 10,633 | 25,502 |
Aggregate intrinsic value, options exercisable | $ 9,066 | $ 18,898 |
Stock-Based Compensation - Sc58
Stock-Based Compensation - Schedule of Fair Value of Stock Options Grant (Details) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||
Expected dividend yield (as a percent) | 0.00% | 0.00% | 0.00% |
Volatility (as a percent) | 43.34% | 48.41% | 52.02% |
Risk-free rate of return | 1.74% | 1.92% | 1.70% |
Expected term | 6 years | 6 years | 6 years |
Stock-Based Compensation - Sc59
Stock-Based Compensation - Schedule of Additional Information Regarding Options (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||
Weighted-average grant date fair value per share of options granted during the period (in dollars per share) | $ 15.24 | $ 15.16 | $ 7.08 |
Aggregate intrinsic value of options exercised during the period | $ 7,884 | $ 17,465 | $ 307 |
Stock-Based Compensation - Stoc
Stock-Based Compensation - Stock Option Activity Narrative (Details) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | |||
Feb. 28, 2014 | Mar. 31, 2013 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Options to purchase shares | 1,992,447 | 1,881,369 | |||
Shares of performance awards | 566,600 | ||||
Compensation expense related to performance share awards | $ 9,364 | $ 5,225 | $ 1,269 | ||
LDR Medical, SAS | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Options to purchase shares | 37,951 | 154,986 | |||
Stock Option | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Unrecognized compensation expense related to unvested options | $ 12,800 | $ 12,100 | |||
Weighted average period | 3 years | 2 years | |||
Performance Shares | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Weighted average period | 2 years | ||||
Performance Shares | 2007 Plan | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Shares of performance awards | 22,169 | 81,841 | |||
Compensation expense related to performance share awards | $ 365 | $ 413 |
Stock-Based Compensation - Sc61
Stock-Based Compensation - Schedule of Restricted Stock Units Activity (Details) - Restricted Stock Units (RSUs) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Units | ||
Unvested. beginning, units (in shares) | 99,500 | |
Restricted stock units granted (in shares) | 78,000 | |
Restricted stock units vested (in shares) | (27,004) | |
Restricted stock units forfeited (in shares) | 0 | |
Unvested, ending, units (in shares) | 150,496 | 99,500 |
Weighted - Average Grant Date Fair Value Per Share | ||
Unvested - beginning, units (in dollars per share) | $ 27.06 | |
Restricted stock units granted (in dollars per share) | 34.53 | |
Restricted stock units vested (in dollars per share) | 26.80 | |
Restricted stock units forfeited (in dollars per share) | 0 | |
Unvested - ending, units (in dollars per share) | $ 30.98 | $ 27.06 |
Weighted - Average Remaining Contractual Term | ||
Weighted average remaining contractual term, unvested | 1 year 1 month 24 days | 2 years 11 months 8 days |
Aggregate Intrinsic Value | ||
Aggregate intrinsic value, unvested | $ 3,779 | $ 3,000 |
Stock-Based Compensation - Sc62
Stock-Based Compensation - Schedule of Performance-Based Restricted Unit Activity (Details) - Performance Shares - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Units | ||
Unvested. beginning, units (in shares) | 0 | |
Performance-based restricted stock units granted (in shares) | 80,400 | |
Performance-based restricted stock units vested (in shares) | 0 | |
Performance-based restricted stock units forfeited (in shares) | 0 | |
Unvested, ending, units (in shares) | 80,400 | 0 |
Weighted - Average Grant Date Fair Value Per Share | ||
Unvested - beginning, units (in dollars per share) | $ 0 | |
Performance-based restricted stock units granted (in dollars per share) | 32.78 | |
Performance-based restricted stock units vested (in dollars per share) | 0 | |
Performance-based restricted stock units forfeited (in dollars per share) | 0 | |
Unvested - ending, units (in dollars per share) | $ 32.78 | $ 0 |
Weighted - Average Remaining Contractual Term | ||
Weighted average remaining contractual term, unvested | 1 year 6 months | |
Aggregate Intrinsic Value | ||
Aggregate intrinsic value, unvested | $ 2,019 | $ 0 |
Stock-Based Compensation - Rest
Stock-Based Compensation - Restricted Stock Unit and Performance-Based Restricted Stock Unit Activity Narrative (Details) - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | |
Restricted Stock Units (RSUs) | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Unrecognized compensation expense related to unvested restricted stock unit | $ 3.1 | $ 1.7 | |
Weighted average period | 2 years | 3 years | |
Performance Shares | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Unrecognized compensation expense related to unvested restricted stock unit | $ 1 | ||
Weighted average period | 2 years | ||
Performance Shares | Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of awards converted to common stock (in shares) | 40,200 | ||
Performance Shares | Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of awards converted to common stock (in shares) | 120,600 |
Stock-Based Compensation - Empl
Stock-Based Compensation - Employee Stock Purchase Program (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Shares of common stock reserved for issuance (in shares) | 320,096 | 118,633 |
Sequential offering period | 6 months | |
Percentage of the lower of the fair market value | 85.00% | |
Value of shares (more than) | $ 25,000 | |
Minimum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Percentage of issued and outstanding shares of common stock | 1.00% |
Stock-Based Compensation - Sc65
Stock-Based Compensation - Schedule of Stock-based Compensation Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Total | $ 9,364 | $ 5,225 | $ 1,269 |
Research and development | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Total | 319 | 572 | 153 |
Sales and marketing | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Total | 3,175 | 2,930 | 786 |
General and administrative | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Total | $ 5,870 | $ 1,723 | $ 330 |
Retirement Savings Plans (Detai
Retirement Savings Plans (Details) - USD ($) | 1 Months Ended | 12 Months Ended | ||
Jan. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Match made by employee (as a percent) | 50.00% | |||
Percentage of contribution made by employee | 6.00% | |||
401 (k) match | $ 651,000 | $ 377,000 | $ 0 | |
Foreign Pension Plan, Defined Benefit | France | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Accruals for employee retirement obligations | $ 292,000 | $ 255,000 |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Related Party Transactions [Abstract] | |||
Related party interest income | $ 0 | $ 0 | $ 8,000 |
Income Taxes - Schedule of Comp
Income Taxes - Schedule of Components of Loss Before Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Tax Disclosure [Abstract] | |||
Domestic | $ (11,438) | $ (12,879) | $ (27,460) |
Foreign | (10,489) | 3,332 | 1,196 |
Loss before income taxes | $ (21,927) | $ (9,547) | $ (26,264) |
Income Taxes - Schedule of Co69
Income Taxes - Schedule of Components of the Provision for Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Current taxes: | |||
United States | $ 52 | $ 15 | $ 57 |
International | 1,299 | 1,137 | 1,577 |
Total current tax expense | 1,351 | 1,152 | 1,634 |
Deferred taxes: | |||
United States | 5 | 5 | 5 |
International | (7,430) | 273 | 32 |
Total deferred tax (benefit) expense | (7,425) | 278 | 37 |
Income tax (benefit) expense | $ (6,074) | $ 1,430 | $ 1,671 |
Income Taxes - Schedule of Sign
Income Taxes - Schedule of Significant Components of the Deferred Taxes (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Current deferred tax assets: | ||
Inventory | $ 0 | $ 729 |
Reserves and allowances | 0 | 410 |
Other | 0 | 392 |
Valuation allowance | 0 | (1,003) |
Total current deferred tax assets | 0 | 528 |
Noncurrent deferred tax assets: | ||
Net operating loss and tax credits carryforwards | 34,586 | 27,395 |
Amortization | 132 | 154 |
Other | 8,036 | 2,842 |
Valuation allowance | (32,180) | (28,731) |
Total noncurrent deferred tax assets | 10,574 | 1,660 |
Current deferred tax liabilities: | ||
Prepaid and other | 0 | 232 |
Total current deferred tax liabilities | 0 | 232 |
Noncurrent deferred tax liabilities: | ||
Depreciation | 2,968 | 2,208 |
Other | 563 | 0 |
Total noncurrent deferred tax liabilities | $ 3,531 | $ 2,208 |
Income Taxes - Schedule of Reco
Income Taxes - Schedule of Reconciliation of Statutory U.S. Federal Tax Rate to Effective Rate (Details) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Tax Disclosure [Abstract] | |||
Statutory U.S. federal tax rate | 34.00% | 34.00% | 34.00% |
State taxes | (0.30%) | (0.20%) | (0.20%) |
Valuation allowance | (15.30%) | (38.80%) | (15.50%) |
Permanent items | (1.70%) | (5.20%) | (24.70%) |
Foreign tax rate differentials | 10.90% | (3.60%) | (0.20%) |
Other | 0.10% | (1.20%) | 0.20% |
Total | 27.70% | (15.00%) | (6.40%) |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Income Tax Disclosure [Abstract] | ||
Increase in valuation allowance | $ 2,400,000 | $ 4,400,000 |
Operating Loss Carryforwards [Line Items] | ||
Amounts due to gross excess tax benefits | 9,500,000 | |
Limited amount used to reduce taxable income | 26,400,000 | |
Undistributed Earnings of Foreign Subsidiaries | 0 | 22,900,000 |
Research Tax Credit Carryforward | ||
Operating Loss Carryforwards [Line Items] | ||
Tax credit | 1,800,000 | |
Internal Revenue Service (IRS) | ||
Operating Loss Carryforwards [Line Items] | ||
Federal net operating loss carryforwards | 81,400,000 | |
France | ||
Operating Loss Carryforwards [Line Items] | ||
Federal net operating loss carryforwards | 20,600,000 | |
France | Other Current Assets | ||
Operating Loss Carryforwards [Line Items] | ||
Deferred income tax charge | $ 1,500,000 | $ 2,700,000 |
Net Loss Per Share - Schedule o
Net Loss Per Share - Schedule of Net Loss Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ 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 | |
Numerator | |||||||||||
Net loss attributable to common stockholders | $ (4,756) | $ (2,088) | $ (5,825) | $ (3,184) | $ (3,131) | $ (2,019) | $ (2,328) | $ (3,499) | $ (15,853) | $ (10,977) | $ (27,935) |
Denominator | |||||||||||
Weighted average shares outstanding - basic | 27,783 | 25,288 | 9,041 | ||||||||
Dilutive effect of options and warrants | 0 | 0 | 0 | ||||||||
Weighted average shares outstanding - diluted | 27,783 | 25,288 | 9,041 | ||||||||
Net loss per common share - basic and diluted (in dollars per share) | $ (0.16) | $ (0.07) | $ (0.22) | $ (0.12) | $ (0.12) | $ (0.08) | $ (0.09) | $ (0.15) | $ (0.57) | $ (0.43) | $ (3.09) |
Net Loss Per Share - Schedule74
Net Loss Per Share - Schedule of Common Equivalent Shares (Details) - shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Stock options | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Common equivalent shares | 1,992 | 1,881 | 1,573 |
Commitments and Contingencies -
Commitments and Contingencies - Narrative (Details) $ in Thousands | Oct. 08, 2015USD ($)ft² | Mar. 06, 2015EUR (€)ft² | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) |
Other Commitments [Line Items] | |||||
Total rent expense under operating lease | $ 3,000 | $ 2,900 | $ 2,400 | ||
Grants received | 514 | 858 | |||
France | |||||
Other Commitments [Line Items] | |||||
Grants received | $ 514 | $ 858 | |||
Letter of Credit | |||||
Other Commitments [Line Items] | |||||
Letter of credit | $ 1,000 | ||||
The Lease | The Developer | Building | |||||
Other Commitments [Line Items] | |||||
Total rent expense under operating lease | € | € 1,041,305 | ||||
Initial term of lease | 10 years | ||||
Additional term of lease | 9 years | ||||
Area of property (in sq ft) | ft² | 83,250 | ||||
Supplemental rent | € | € 74,000 | ||||
Supplemental rent period | 9 years | ||||
The Amendment | FPG Aspen Lake Owner LP. | Building | |||||
Other Commitments [Line Items] | |||||
Additional term of lease | 60 months | ||||
Area of property (in sq ft) | ft² | 21,800 |
Commitments and Contingencies76
Commitments and Contingencies - Schedule of Future Minimum Lease Payments Under Noncancelable Operating Leases (Details) $ in Thousands | Dec. 31, 2015USD ($) |
Operating Leases | |
2,016 | $ 5,930 |
2,017 | 5,686 |
2,018 | 5,190 |
2,019 | 5,064 |
2,020 | 5,338 |
Thereafter | 24,578 |
Total minimum lease payments | $ 51,786 |
Segment and Geographic Inform77
Segment and Geographic Information - Narrative (Details) | 12 Months Ended |
Dec. 31, 2015segmentSegment | |
Segment Reporting [Abstract] | |
Number of reportable segments | segment | 1 |
Number of operating categories | Segment | 2 |
Segment and Geographic Inform78
Segment and Geographic Information - Summary of Total Sales by Geographic Area (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 | |
Segment Reporting Information [Line Items] | |||||||||||
Total | $ 44,541 | $ 39,294 | $ 41,509 | $ 39,115 | $ 39,533 | $ 35,901 | $ 34,752 | $ 31,068 | $ 164,459 | $ 141,254 | $ 111,594 |
United States | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total | 133,843 | 109,597 | 82,307 | ||||||||
France | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total | 11,590 | 12,349 | 11,233 | ||||||||
Other Countries | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total | $ 19,026 | $ 19,308 | $ 18,054 |
Segment and Geographic Inform79
Segment and Geographic Information - Summary of Total Sales by Product Category (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 | |
Segment Reporting Information [Line Items] | |||||||||||
Total | $ 44,541 | $ 39,294 | $ 41,509 | $ 39,115 | $ 39,533 | $ 35,901 | $ 34,752 | $ 31,068 | $ 164,459 | $ 141,254 | $ 111,594 |
Exclusive technology products | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total | 152,433 | 125,013 | 92,461 | ||||||||
Traditional fusion products | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total | $ 12,026 | $ 16,241 | $ 19,133 |
Segment and Geographic Inform80
Segment and Geographic Information - Summary of Long Lived Assets by Geographical Area (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Segment Reporting Information [Line Items] | ||
Total | $ 20,653 | $ 19,025 |
United States | ||
Segment Reporting Information [Line Items] | ||
Total | 13,853 | 13,873 |
France | ||
Segment Reporting Information [Line Items] | ||
Total | 5,016 | 3,472 |
Other Countries | ||
Segment Reporting Information [Line Items] | ||
Total | $ 1,784 | $ 1,680 |
Subsequent Events (Details)
Subsequent Events (Details) - shares | 1 Months Ended | ||
Jan. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Subsequent Event | |||
Subsequent Event [Line Items] | |||
Increase in stock authorized under employee purchase plans (in shares) | 291,481 | ||
Stock authorized under employee purchase plans (in shares) | 611,577 | ||
2013 Plan | |||
Subsequent Event [Line Items] | |||
Common stock, reserved for future issuance (in shares) | 1,183,954 | 758,074 | |
2013 Plan | Subsequent Event | |||
Subsequent Event [Line Items] | |||
Common stock, increase in reserved for future issuance (in shares) | 1,165,927 | ||
Common stock, reserved for future issuance (in shares) | 2,349,881 |
Quarterly Financial Data (una82
Quarterly Financial Data (unaudited) (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 [Abstract] | |||||||||||
Revenue | $ 44,541 | $ 39,294 | $ 41,509 | $ 39,115 | $ 39,533 | $ 35,901 | $ 34,752 | $ 31,068 | $ 164,459 | $ 141,254 | $ 111,594 |
Gross profit | 36,635 | 33,208 | 34,684 | 32,672 | 32,690 | 29,439 | 28,895 | 25,812 | 137,199 | 116,836 | 93,647 |
Operating loss | (6,866) | (5,264) | (5,078) | (5,261) | (3,659) | (2,240) | (1,795) | (3,019) | (22,469) | (10,713) | (2,324) |
Net loss | $ (4,756) | $ (2,088) | $ (5,825) | $ (3,184) | $ (3,131) | $ (2,019) | $ (2,328) | $ (3,499) | $ (15,853) | $ (10,977) | $ (27,935) |
Net loss per common share (in dollars per share) | $ (0.16) | $ (0.07) | $ (0.22) | $ (0.12) | $ (0.12) | $ (0.08) | $ (0.09) | $ (0.15) | $ (0.57) | $ (0.43) | $ (3.09) |
SCHEDULE II - VALUATION AND Q83
SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Accounts Receivable Valuation Accounts | |||
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Period | $ 1,351 | $ 1,493 | $ 1,388 |
Additions | 1,510 | 603 | 517 |
Deductions and Adjustments | (685) | (745) | (412) |
Balance at End of Period | 2,176 | 1,351 | 1,493 |
Inventory Reserve | |||
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Period | 4,286 | 3,477 | 2,792 |
Additions | 2,845 | 1,173 | 641 |
Deductions and Adjustments | (543) | (364) | 44 |
Balance at End of Period | $ 6,588 | $ 4,286 | $ 3,477 |