Alphatec (ATEC) 10-Q 12 May 17 2017 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2017	May 10, 2017
Document And Entity Information [Abstract]
Entity Registrant Name	Alphatec Holdings, Inc.
Entity Central Index Key	1,350,653
Current Fiscal Year End Date	--12-31
Entity Filer Category	Non-accelerated Filer
Document Type	10-Q
Trading Symbol	ATEC
Document Period End Date	Mar. 31, 2017
Document Fiscal Year Focus	2,017
Document Fiscal Period Focus (Q1,Q2,Q3,FY)	Q1
Amendment Flag	false
Entity Common Stock, Shares Outstanding		10,857,733

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Current assets:
Cash	$ 25,485	$ 19,593
Accounts receivable, net	14,212	18,512
Inventories, net	30,088	30,093
Prepaid expenses and other current assets	2,451	4,262
Current assets of discontinued operations	170	364
Total current assets	72,406	72,824
Property and equipment, net	15,408	15,076
Intangible assets, net	5,477	5,711
Other assets	222	516
Noncurrent assets of discontinued operations	58	61
Total assets	93,571	94,188
Current liabilities:
Accounts payable	4,245	8,701
Accrued expenses	26,173	27,589
Current portion of long-term debt	2,616	3,113
Current liabilities of discontinued operations	293	732
Total current liabilities	33,327	40,135
Long-term debt, less current portion	40,017	43,092
Other long-term liabilities	25,757	28,862
Redeemable preferred stock, $0.0001 par value; 20,000 authorized at March 31, 2017 and December 31, 2016; 3,319 shares issued and outstanding at both March 31, 2017 and December 31, 2016	23,603	23,603
Commitments and contingencies
Stockholders’ deficit:
Series A convertible preferred stock, $0.0001 par value; 15 authorized at March 31, 2017 and December 31, 2016; 15 and 0 shares issued and outstanding at March 31, 2017 and December 31, 2016, respectively
Common stock, $0.0001 par value; 200,000 authorized at March 31, 2017 and December 31, 2016; 10,858 and 9,049 shares issued and outstanding at March 31, 2017 and December 31, 2016, respectively	1	1
Treasury stock, at cost, 2 shares, at both March 31, 2017 and December 31, 2016	(97)	(97)
Additional paid-in capital	437,483	419,787
Shareholder note receivable	(5,000)	(5,000)
Accumulated other comprehensive income	1,160	970
Accumulated deficit	(462,680)	(457,165)
Total stockholders’ deficit	(29,133)	(41,504)
Total liabilities and stockholders’ deficit	$ 93,571	$ 94,188

CONDENSED CONSOLIDATED BALANCE3

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - $ / shares	Mar. 30, 2017	Dec. 31, 2016
Statement Of Financial Position [Abstract]
Redeemable preferred stock, par value (dollars per share)	$ 0.0001	$ 0.0001
Redeemable preferred stock, shares authorized	20,000,000	20,000,000
Redeemable preferred stock, shares issued	3,319,000	3,319,000
Redeemable preferred stock, shares outstanding	3,319,000	3,319,000
Series A convertible preferred stock, par value (dollars per share)	$ 0.0001	$ 0.0001
Series A convertible preferred stock, shares authorized	15,000	15,000
Series A convertible preferred stock, shares issued	15,000	0
Series A convertible preferred stock, shares outstanding	15,000	0
Common stock, par value (dollars per share)	$ 0.0001	$ 0.0001
Common stock, shares authorized	200,000,000	200,000,000
Common stock, shares issued	10,858,000	9,049,000
Common stock, shares outstanding	10,858,000	9,049,000
Treasury stock, shares	2,000	2,000

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Income Statement [Abstract]
Revenues	$ 27,978	$ 34,206
Cost of revenues	11,199	9,719
Gross profit	16,779	24,487
Operating expenses:
Research and development	1,449	3,641
Sales and marketing	11,103	14,940
General and administrative	6,223	9,004
Amortization of intangible assets	172	255
Restructuring expenses	1,231	89
Total operating expenses	20,178	27,929
Operating loss	(3,399)	(3,442)
Other income (expense):
Interest expense, net	(1,981)	(981)
Other income (expense), net	5	198
Total other income (expense)	(1,976)	(783)
Loss from continuing operations before taxes	(5,375)	(4,225)
Income tax provision	49	23
Loss from continuing operations	(5,424)	(4,248)
Loss from discontinued operations, net of applicable taxes	(91)	(2,369)
Net loss	$ (5,515)	$ (6,617)
Net loss per share, basic and diluted:
Continuing operations, net loss per share, basic and diluted (in dollars per share)	$ (0.60)	$ (0.50)
Discontinued operations, net loss per share, basic and diluted (in dollars per share)	(0.01)	(0.28)
Net loss per basic and diluted share (in dollars per share)	$ (0.61)	$ (0.78)
Shares used in calculating basic and diluted net loss per share (in shares)	9,005	8,466

CONDENSED CONSOLIDATED STATEME5

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Statement Of Income And Comprehensive Income [Abstract]
Net loss	$ (5,515)	$ (6,617)
Foreign currency translation adjustments related to continuing operations	190	792
Comprehensive loss	$ (5,325)	$ (5,825)

CONDENSED CONSOLIDATED STATEME6

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Operating activities:
Net loss	$ (5,515)	$ (6,617)
Adjustments to reconcile net loss to net cash (used in) provided by operating activities:
Depreciation and amortization	1,868	3,884
Stock-based compensation	516	58
Interest expense related to amortization of debt discount and debt issuance costs	717	1,432
Provision for doubtful accounts	12	195
Provision for excess and obsolete inventory	306	645
Deferred income tax expense		(76)
Other non-cash items	994	(12)
Changes in operating assets and liabilities:
Restricted cash		1,100
Accounts receivable	4,356	(597)
Inventories	(254)	(3,048)
Prepaid expenses and other current assets	1,958	889
Other assets	291	(20)
Accounts payable	(5,433)	2,904
Accrued expenses and other	(5,867)	(527)
Net cash (used in) provided by operating activities	(6,051)	210
Investing activities:
Purchases of property and equipment	(1,977)	(1,686)
Cash received from sale of assets		516
Net cash used in investing activities	(1,977)	(1,170)
Financing activities:
Borrowings under lines of credit	24,195	34,879
Repayments under lines of credit	(26,426)	(33,878)
Principal payments on capital lease obligations	(159)	(198)
Proceeds from sale of stock	17,472
Principal payments on notes payable and term loan	(1,325)	(2,340)
Net cash provided by (used in) financing activities	13,757	(1,537)
Effect of exchange rate changes on cash	96	(971)
Net increase (decrease) in cash	5,825	(3,468)
Cash at beginning of period, including discontinued operations	19,752	11,229
Cash at end of period, including discontinued operations	25,577	7,761
Supplemental disclosure of cash flow information:
Cash paid for interest	1,277	1,918
Cash paid for income taxes	198	646
Purchases of property and equipment in accounts payable	$ 3,650	$ 4,495

The Company and Basis of Presen

The Company and Basis of Presentation	3 Months Ended
	Mar. 31, 2017
Organization Consolidation And Presentation Of Financial Statements [Abstract]
The Company and Basis of Presentation	1. The Company and Basis of Presentation The Company Alphatec Holdings, Inc. (the “Company”), through its wholly owned subsidiary, Alphatec Spine, Inc. and its subsidiaries (“Alphatec Spine”), is a medical technology company focused on the design, development and promotion of products for the surgical treatment of spine disorders. The Company has a comprehensive product portfolio and pipeline that addresses the cervical, thoracolumbar and intervertebral regions of the spine and covers a variety of spinal disorders and surgical procedures. The Company’s principal product offerings are focused on the U.S. market for fusion-based spinal disorder solutions. Prior to September 1, 2016, the Company marketed its products in the U.S. market and in over 50 international markets through the distribution channels of Alphatec Spine and its affiliate, Scient’x S.A.S., and its subsidiaries (“Scient’x”), via a direct sales force in Italy and the United Kingdom and via independent distributors in the rest of Europe, the Middle East and Africa. In South America and Latin America, the Company conducted its operations through its Brazilian subsidiary, Cibramed Productos Medicos. In Japan, the Company marketed its products through its subsidiary, Alphatec Pacific, Inc. and its subsidiaries. On September 1, 2016, the Company completed the sale of its international distribution operations and agreements to Globus Medical Ireland, Ltd., a subsidiary of Globus Medical, Inc., and its affiliated entities (collectively “Globus”), including the Company’s wholly-owned subsidiaries in Japan, Brazil, Australia and Singapore and substantially all of the assets of the Company’s other sales operations in the United Kingdom and Italy (collectively, the “International Business”), pursuant to a purchase and sale agreement, dated as of July 25, 2016 (as amended, the “Purchase and Sale Agreement”) (the “Globus Transaction”). As a result of the Globus Transaction, the Company's International Business has been excluded from continuing operations for all periods presented in this report and is reported as discontinued operations. See Note 4 for additional information on the divestiture of the International Business. The Company operates in one reportable business segment. The sale of the international operations represents a strategic shift and has a significant impact on the Company's operations and financial results. Basis of Presentation The accompanying condensed consolidated balance sheet as of December 31, 2016, which has been derived from audited financial statements, and the unaudited interim condensed consolidated financial statements have been prepared by the Company in accordance with U.S. generally accepted accounting principles (“GAAP”) and the rules and regulations of the Securities and Exchange Commission (“SEC”) related to a quarterly report on Form 10-Q. Certain information and note disclosures normally included in annual audited financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to those rules and regulations, although the Company believes that the disclosures made in this quarterly report on Form 10-Q are adequate to make the information not misleading. The interim unaudited condensed consolidated financial statements reflect all adjustments, including normal recurring adjustments which, in the opinion of management, are necessary for a fair statement of the financial position and results of operations for the periods presented. These unaudited condensed consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements for the year ended December 31, 2016, which are included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2016 that was filed with the SEC on March 31, 2017. Operating results for the three months ended March 31, 2017 are not necessarily indicative of the results that may be expected for the year ending December 31, 2017, or any other future periods. On August 24, 2016, the Company filed a certificate of amendment to its certificate of incorporation with the Secretary of State of the state of Delaware to effectuate a 1-for-12 reverse stock split of the Company’s issued and outstanding common stock. The accompanying condensed consolidated financial statements and notes thereto give retrospective effect to the reverse stock split for all periods presented. All issued and outstanding common stock, options exercisable for common stock, warrants exercisable for common stock, restricted stock units, and per share amounts contained in the Company’s condensed consolidated financial statements have been retroactively adjusted to reflect this reverse stock split for all periods presented. As a result of the sale of the International Business, the Company has retrospectively revised the consolidated statements of operations for the three months ended March 31, 2016, to reflect the financial results from the International Business, and the related assets and liabilities, as discontinued operations. The Company’s Board approved annual operating plan projects that its existing working capital at March 31, 2017 of $39.1 million (including cash of $25.5 million), allows the Company to fund its operations through one year subsequent to the date the financial statements are issued. The Company has incurred significant net losses since inception and has relied on its ability to fund its operations through revenues from the sale of its products, equity financings and debt financings. As the Company has historically incurred losses, successful transition to profitability is dependent upon achieving a level of revenues adequate to support the Company’s cost structure. This may not occur and, unless and until it does, the Company will continue to need to raise additional capital. Operating losses and negative cash flows may continue for at least the next year as the Company continues to incur costs related to the execution of its operating plan and introduction of new products. The accompanying consolidated financial statements have been prepared assuming that the Company will continue as a going concern and do not include any adjustments that might result from the outcome of this uncertainty. A going concern basis of accounting contemplates the recovery of the Company’s assets and the satisfaction of its liabilities in the normal course of business.

Summary of Significant Accounti

Summary of Significant Accounting Policies	3 Months Ended
	Mar. 31, 2017
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	2. Summary of Significant Accounting Policies The Company’s significant accounting policies are described in Note 2 to its audited consolidated financial statements for the year ended December 31, 2016, which are included in the Company’s Annual Report on Form 10-K that was filed with the SEC on March 30, 2017. Except as discussed below, these accounting policies have not significantly changed during the three months ended March 31, 2017. Warrant Accounting As more fully described in Note 10, the Company issued warrants to purchase shares of the Company’s common stock in connection with a private placement transaction that closed on March 29, 2017. These warrants contain a feature that could require the transfer of cash in the event of a Fundamental Transaction, as defined in such warrants (other than a Fundamental Transaction not approved by the Company’s Board of Directors). The warrant holders do not control the Company’s Board of Directors, and therefore, the Company’s control, the warrants Recent Accounting Pronouncements In May 2014, the FASB issued new accounting guidance related to revenue recognition. This new standard replaces all current U.S. GAAP guidance on this topic and eliminates all industry-specific guidance. The new revenue recognition standard provides a unified model to determine when and how revenue is recognized. The core principle is that a company should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration for which the entity expects to be entitled in exchange for those goods or services. This guidance, including all subsequent clarifications, is effective for the Company for annual and interim reporting periods in fiscal years beginning after December 15, 2017 and can be applied either retrospectively to each period presented or as a cumulative-effect adjustment as of the date of adoption. The Company performed a preliminary assessment of the impact of the new standard on the consolidated financial statements, and considered all items outlined in the standard. In assessing the impact, the Company has outlined all revenue generating activities, mapped those activities to performance obligations and traced those performance obligations to the standard. The Company is now assessing what impact the change in standard will have on those performance obligations. The Company will continue to evaluate the future impact and method of adoption of the new standard and related amendments on the consolidated financial statements and related disclosures throughout 2017. The Company will adopt the new standard beginning January 1, 2018. In July 2015, the FASB issued new accounting guidance, which changes the measurement principle for inventory from the lower of cost or market to lower of cost and net realizable value for entities that do not measure inventory using the last-in, first-out or retail inventory method. The guidance also eliminates the requirement for these entities to consider replacement cost or net realizable value less an approximately normal profit margin when measuring inventory. The guidance is effective for annual periods beginning after December 15, 2016, and interim periods within those annual periods. The Company adopted the standard for reporting periods beginning January 1, 2017. In February 2016, the FASB issued new accounting guidance, which changes several aspects of the accounting for leases, including the requirement that all leases with durations greater than twelve months be recognized on the balance sheet. The guidance is effective for annual periods and interim periods in fiscal years beginning after December 15, 2018. The Company is evaluating the impact of adopting this new accounting standard on its financial statements. In March 2016, the FASB issued new accounting guidance, which changes several aspects of the accounting for share-based payment award transactions, including accounting and cash flow classification for excess tax benefits and deficiencies, forfeitures, and tax withholding requirements and cash flow classification. The guidance is effective for annual periods and interim periods in fiscal years beginning after December 15, 2016. The Company adopted the standard for reporting periods beginning January 1, 2017. In August 2016, the FASB issued new accounting guidance, which eliminates the diversity in practice related to the classification of certain cash receipts and payments in the statement of cash flows, by adding or clarifying guidance on eight specific cash flow issues. The guidance is effective for annual and interim reporting periods beginning after December 15, 2017, with early adoption permitted. The amendments in this update should be applied retrospectively to all periods presented, unless deemed impracticable, in which case, prospective application is permitted. The Company is currently evaluating the new guidance and has not determined the impact this standards update may have on its financial statements.

Select Condensed Consolidated B

Select Condensed Consolidated Balance Sheet Details	3 Months Ended
	Mar. 31, 2017
Balance Sheet Related Disclosures [Abstract]
Select Condensed Consolidated Balance Sheet Details	3. Select Condensed Consolidated Balance Sheet Details Accounts Receivable, net Accounts receivable, net consist of the following (in thousands): March 31, 2017 December 31, 2016 Accounts receivable $ 15,190 $ 19,870 Allowance for doubtful accounts (978 ) (1,358 ) Accounts receivable, net $ 14,212 $ 18,512 Inventories, net Inventories, net consist of the following (in thousands): March 31, 2017 December 31, 2016 Raw materials $ 5,664 $ 7,301 Work-in-process 969 823 Finished goods 38,538 38,469 45,171 46,593 Less reserve for excess and obsolete finished goods (15,083 ) (16,500 ) Inventories, net $ 30,088 $ 30,093 Property and Equipment, net Property and equipment, net consist of the following (in thousands except as indicated): Useful lives (in years) March 31, 2017 December 31, 2016 Surgical instruments 4 $ 54,364 $ 53,095 Machinery and equipment 7 5,492 5,435 Computer equipment 3 3,512 3,511 Office furniture and equipment 5 2,707 2,695 Leasehold improvements various 1,653 3,467 Construction in progress n/a - 445 67,728 68,648 Less accumulated depreciation and amortization (52,320 ) (53,572 ) Property and equipment, net $ 15,408 $ 15,076 Total depreciation expense was $1.6 million and $2.3 million for the three months ended March 31, 2017 and 2016, respectively. At March 31, 2017 and December 31, 2016, assets recorded under capital leases of $2.1 million were included in the machinery and equipment balance. Amortization of assets under capital leases is included in depreciation expense. Intangible Assets, net Intangible assets, net consist of the following (in thousands except for useful lives): Remaining Avg. Useful lives (in years) March 31, 2017 December 31, 2016 Developed product technology — $ 13,876 $ 13,876 Intellectual property — 1,004 1,004 License agreements 2 5,265 5,265 Trademarks and trade names — 732 732 Customer-related 8 7,458 7,458 Distribution network 8 4,027 4,027 32,362 32,362 Less accumulated amortization (26,885 ) (26,651 ) Intangible assets, net $ 5,477 $ 5,711 Total amortization expense was $0.2 million and $0.3 million for the three months ended March 31, 2017 and 2016, respectively. Future amortization expense related to intangible assets as of March 31, 2017 is as follows (in thousands): Year Ending December 31, Remainder of 2017 $ 702 2018 750 2019 688 2020 688 2021 688 Thereafter 1,961 $ 5,477 Accrued Expenses Accrued expenses consist of the following (in thousands): March 31, 2017 December 31, 2016 Commissions and sales milestones $ 4,156 $ 4,202 Payroll and payroll related 2,419 2,384 Litigation settlements 4,400 4,400 Globus related accruals 767 3,830 Accrued professional fees 2,308 3,093 Royalties 1,350 1,347 Restructuring and severance accruals 1,619 1,328 Accrued taxes 419 404 Guaranteed collaboration compensation, current 4,661 2,228 Accrued interest 388 387 Other 3,686 3,986 Total accrued expenses $ 26,173 $ 27,589

Discontinued Operations

Discontinued Operations	3 Months Ended
	Mar. 31, 2017
Discontinued Operations And Disposal Groups [Abstract]
Discontinued Operations	4. Discontinued Operations In order to pay down a portion of its debt and improve its liquidity position and future cash flows, on September 1, 2016, the Company closed the Globus Transaction (described in Note 1). Following the closing of the Globus Transaction, the Company only sells its products in the U.S. market and is prohibited from marketing and selling its products outside the United States and its possessions and territories until the date that is two years following the termination of the Supply Agreement (as described below). As a result of the Globus Transaction, the Company has retrospectively revised the condensed consolidated statements of operations and cash flows for the three month periods ended March 31, 2016 to reflect the financial results from the International Business as discontinued operations. At the closing of the Globus Transaction, Globus paid the Company $80 million in cash, subject to a working capital adjustment. On September 1, 2016, the Company used approximately $66 million of the consideration received to (i) repay in full all amounts outstanding and due under the Company’s Facility Agreement between the Company and Deerfield Private Design Fund II, L.P., Deerfield Private Design International II, L.P., Deerfield Special Situations Fund, L.P. and Deerfield Special Situations International Master Fund, L.P., dated as of March 17, 2014, as amended to date (the “Deerfield Facility Agreement”) and (ii) repay certain of its outstanding indebtedness under the Company’s Amended Credit Facility with MidCap (described in Note 6), in each case, including debt-related costs. Also on September 1, 2016, the Company entered into a five-year term credit, security and guaranty agreement with Globus (the “Globus Facility Agreement”), as further described in Note 6, pursuant to which Globus agreed to loan the Company up to $30 million, subject to the terms and conditions set forth in the Globus Facility Agreement. The following table summarizes the preliminary calculation of the gain on sale (in thousands): Consideration received $ 80,000 Cash included in assets sold (4,250 ) Transaction costs (5,960 ) Net cash proceeds 69,790 Less: Product supply obligation (1,927 ) Working capital adjustment (2,295 ) Carrying value of business and assets sold (57,633 ) Net gain on sale of business $ 7,935 The Company is evaluating certain income tax related items that are pending final resolution. The results of operations from discontinued operations presented below include certain allocations that management believes fairly reflect the utilization of services provided to the International Business. The allocations do not include amounts related to general corporate administrative expenses. Therefore, the results of operations from the International Business do not necessarily reflect what the results of operations would have been had the International Business operated as a stand-alone entity. In connection with the Globus Transaction, the Company entered into a product manufacture and supply agreement (the “Supply Agreement”) with Globus, pursuant to which the Company agreed to supply to Globus certain of its implants and instruments (the “Products”), previously offered for sale by the Company in international markets at agreed-upon prices for a minimum term of three years, with the option for Globus to extend the term for up to two additional twelve month periods subject to Globus meeting specified purchase requirements. In accordance with authoritative guidance, certain intercompany sales transactions have been reported under continuing operations as the Company will have continuing involvement due to future sales to Globus under the Supply Agreement. In connection with the Globus Transaction, Globus received a credit of up to $1.9 million to be applied against Product purchases pursuant to the Supply Agreement during a six-month period commencing one month after the closing of the Globus Transaction, which has been included as a reduction of the consideration received for the sale of the International Business and will be recognized as revenue upon fulfillment by the Company of product purchases by Globus. The agreements entered into concurrently with the sale of the International Business, including the Transition Services Agreement and Supply Agreement, contain various elements and, as such, are deemed to be an arrangement with multiple deliverables as defined under authoritative accounting guidance. Several non-contingent deliverables were identified within the agreements. The Company identified the International Business, contract supply services, transition services and the Globus Facility as separate non-contingent deliverables within the arrangement. The Company determined the estimated selling price (fair value) for each of the non-contingent deliverables on a standalone basis by utilizing relevant market data and entity-specific factors. Based on the respective standalone fair values of the deliverables, there was no discount to allocate among the deliverables and the consideration received for each deliverable approximated standalone fair value. As such, none of the purchase consideration was allocated to these elements. Included in the results of continuing operations for the three months ended March 31, 2016 are revenues of $5.0 million and cost of revenue of $4.0 million, respectively, that represent intercompany transactions that, prior to the Globus Transaction, were eliminated in the Company's condensed consolidated financial statements. During the three months ended March 31, 2017, the Company recorded $4.5 million in revenue and $3.8 million in cost of sales from the Supply Agreement that are included in the continuing operations. In connection with the Globus Transaction, the Company included the interest expense of $2.4 million for the three months ended March 31, 2016 incurred in connection with repayment from the proceeds from the Globus Transaction of all amounts outstanding and due under the Deerfield Facility Agreement and Amended Credit Facility in the loss from discontinued operations to the extent these debt facilities were repaid using the proceeds from the Globus Transaction. The following table summarizes the results of discontinued operations for the periods presented in the condensed consolidated statements of operations and comprehensive income (loss) for the three months ended March 31, 2017 and 2016 (in thousands): Three Months Ended March 31, Discontinued operations 2017 2016 Revenues $ — $ 10,555 Cost of revenues — 3,813 Amortization of acquired intangible assets — 360 Gross profit — 6,382 Operating expenses: Research and development — 26 Sales and marketing — 4,182 General and administrative 73 1,643 Amortization of acquired intangible assets — 231 Restructuring expenses — 597 Total operating expenses 73 6,679 Operating loss (73 ) (297 ) Other income (expense): Interest expense, net — (2,356 ) Other income (expense), net — 847 Total other income (expense) — (1,509 ) Loss from discontinued operations before taxes (73 ) (1,806 ) Income tax provision 18 563 Loss from discontinued operations, net of applicable taxes $ (91 ) $ (2,369 ) The following table summarizes the assets and liabilities of discontinued operations as of March 31, 2017 and December 31, 2016 related to the International Business (in thousands): March 31, 2017 December 31, 2016 Assets Current assets: Cash $ 92 $ 159 Inventories, net — 48 Prepaid expenses and other current assets 78 157 Total current assets of discontinued operations 170 364 Other assets 58 61 Total assets of discontinued operations $ 228 $ 425 Liabilities Current liabilities: Accounts payable $ 72 $ 43 Accrued expenses 206 689 Other current liabilities 15 — Total current liabilities of discontinued operations $ 293 $ 732 Included in the cash flows for the three months ended March 31, 2017 and 2016 are the following non-cash adjustments related to the discontinued operations (in thousands): Three 2017 2016 Depreciation and amortization $ — $ 1,396 Provision for excess and obsolete inventory $ — $ 77 Capital expenditures $ — $ 697 Interest expense related to amortization of debt discount and debt issuance costs $ — $ 646

License and Consulting Agreemen

License and Consulting Agreements	3 Months Ended
	Mar. 31, 2017
License And Consulting Agreements [Abstract]
License and Consulting Agreements	5. License and Consulting Agreements The Company’s license and consulting agreements are described in Note 5 to its audited consolidated financial statements for the year ended December 31, 2016, which are included in its Annual Report on Form 10-K which was filed with the SEC on March 31, 2017.

Debt

Debt	3 Months Ended
	Mar. 31, 2017
Debt Disclosure [Abstract]
Debt	6. Debt MidCap Facility Agreement The Company has a credit facility with MidCap Funding IV, LLC (“MidCap”), as amended to date (the “Amended Credit Facility”), that provides for a revolving credit commitment up to $22.5 million and a term loan commitment up to $5 million. As of March 31, 2017, $10.3 million was outstanding under the revolving line of credit and $4.2 million was outstanding under the term loan. The term loan interest rate is priced at the London Interbank Offered Rate ("LIBOR") plus 8.0%, subject to a 9.5% floor, and the revolving line of credit interest rate remains priced at LIBOR plus 6.0%, reset monthly. At March 31, 2017, the revolving line of credit carried an interest rate of 6.8% and the term loan carries an interest rate of 9.5%. The borrowing base is determined, from time to time, based on the value of domestic eligible accounts receivable and domestic eligible inventory. As collateral for the Amended Credit Facility, the Company granted MidCap a security interest in substantially all of its assets, including all accounts receivable and all securities evidencing its interests in its subsidiaries. In addition to monthly payments of interest, monthly repayments of $0.2 million in 2017 and $0.3 million in 2018 through maturity are due, with the remaining principal due upon maturity. At March 31, 2017, $1.9 million remains as unamortized debt discount related to the Amended Credit Facility within the condensed consolidated balance sheet, which will be amortized over the remaining term of the Amended Credit Facility. On March 30, 2017, the Company entered into a sixth amendment to the Amended Credit Facility with MidCap (the “Sixth Amendment”). The Sixth Amendment extend the date that the financial covenants of the Amended Credit Facility are effective from April 2017 to April 2018. The Amended Credit Facility includes traditional lending and reporting covenants including a fixed charge coverage ratio to be maintained by the Company. The Amended Credit Facility also includes several event of default provisions, such as payment default, insolvency conditions and a material adverse effect clause, which could cause interest to be charged at a rate which is up to five percentage points above the rate effective immediately before the event of default or result in MidCap’s right to declare all outstanding obligations immediately due and payable. The financial covenants of the Amended Credit Facility are not effective until April 2018. There is no assurance that the Company will be in compliance with the financial covenants of the Amended Credit Facility in the future. Globus Facility Agreement On September 1, 2016, the Company and Globus entered into the Globus Facility Agreement, pursuant to which Globus agreed to loan the Company up to $30 million, subject to the terms and conditions set forth in the Globus Facility Agreement. At the closing of the Globus Transaction, the Company made an initial draw of $25 million under the Globus Facility Agreement with an additional draw of $5 million made in the fourth quarter of 2016. As of March 31, 2017, the outstanding balance under the Globus Facility Agreement was $30.0 million, which becomes due and payable in quarterly payments of $0.8 million starting in September 2018, with a final payment of the remaining amount outstanding due on September 1, 2021. The term loan interest rate is priced at LIBOR plus 8.0% through September 1, 2018, and LIBOR plus 13.0%, thereafter. At March 31, 2017, unamortized debt discount related to the Globus Facility Agreement within the condensed consolidated balance sheet was $1.0 million. On March 30, 2017, the Company entered into a first amendment to the Globus Facility Agreement with Globus (the “Globus First Amendment”). The Globus First Amendment extended the date that the financial covenants of the Globus Facility Agreement are effective from April 2017 to April 2018. As collateral for the Globus Facility Agreement, the Company granted Globus a first lien security interest in substantially all of its assets, other than accounts receivable and related assets, which will secure the Globus Facility Agreement on a second lien basis. The Globus Facility Agreement includes traditional lending and reporting covenants including a fixed charge coverage ratio to be maintained by the Company. The financial covenants of the Globus Facility Agreement are not effective until April 2018. There is no assurance that the Company will be in compliance with the financial covenants of the Globus Facility Agreement in the future. The Globus Facility Agreement also includes several event of default provisions, such as payment default, insolvency conditions and a material adverse effect clause, which could cause interest to be charged at a rate which is up to five percentage points above the rate effective immediately before the event of default or result in Globus’s right to declare all outstanding obligations immediately due and payable. Principal payments on the Company's debt are as follows as of March 31, 2017 (in thousands): Year Ending December 31, Remainder of 2017 $ 2,689 2018 4,046 2019 14,198 2020 3,333 2021 and thereafter 21,667 Total 45,933 Add: capital lease principal payments 314 Less: unamortized debt discount and debt issuance costs (3,614 ) Total 42,633 Less: current portion of long-term debt (2,616 ) Long-term debt, net of current portion $ 40,017

Commitments and Contingencies

Commitments and Contingencies	3 Months Ended
	Mar. 31, 2017
Commitments And Contingencies Disclosure [Abstract]
Commitments and Contingencies	7. Commitments and Contingencies Leases The Company leases certain equipment under capital leases which expire on various dates through 2017. The leases bear interest at rates ranging from 6.6% to 9.6% per annum, are generally due in monthly principal and interest installments and are collateralized by the related equipment. The Company also leases its buildings and certain equipment and vehicles under operating leases which expire on various dates through 2021. Future minimum annual lease payments under such leases are as follows as of March 31, 2017 (in thousands): Year Ending December 31, Operating Capital Remainder of 2017 $ 1,205 $ 261 2018 1,556 68 2019 1,543 — 2020 1,538 — 2021 and thereafter 971 — $ 6,813 329 Less: amount representing interest (15 ) Present value of minimum lease payments 314 Current portion of capital leases (270 ) Capital leases, less current portion $ 44 Rent expense under operating leases for the three months ended March 31, 2017 and 2016 was $0.4 million and $0.6 million, respectively. Litigation The Company is and may become involved in various legal proceedings arising from its business activities. While management is not aware of any litigation matter that in and of itself would have a material adverse impact on the Company’s consolidated results of operations, cash flows or financial position, litigation is inherently unpredictable, and depending on the nature and timing of a proceeding, an unfavorable resolution could materially affect the Company’s future consolidated results of operations, cash flows or financial position in a particular period. The Company assesses contingencies to determine the degree of probability and range of possible loss for potential accrual or disclosure in the Company's consolidated financial statements. An estimated loss contingency is accrued in the Company’s consolidated financial statements if it is probable that a liability has been incurred and the amount of the loss can be reasonably estimated. Because litigation is inherently unpredictable and unfavorable resolutions could occur, assessing contingencies is highly subjective and requires judgments about future events. When evaluating contingencies, the Company may be unable to provide a meaningful estimate due to a number of factors, including the procedural status of the matter in question, the presence of complex or novel legal theories, and/or the ongoing discovery and development of information important to the matters. In addition, damage amounts claimed in litigation against the Company may be unsupported, exaggerated or unrelated to reasonably possible outcomes, and as such are not meaningful indicators of the Company’s potential liability. Indemnifications In the normal course of business, the Company enters into agreements under which it occasionally indemnifies third-parties for intellectual property infringement claims or claims arising from breaches of representations or warranties. In addition, from time to time, the Company provides indemnity protection to third-parties for claims relating to past performance arising from undisclosed liabilities, product liabilities, environmental obligations, representations and warranties, and other claims. In these agreements, the scope and amount of remedy, or the period in which claims can be made, may be limited. It is not possible to determine the maximum potential amount of future payments, if any, due under these indemnities due to the conditional nature of the obligations and the unique facts and circumstances involved in each agreement. Royalties The Company has entered into various intellectual property agreements requiring the payment of royalties based on the sale of products that utilize such intellectual property. These royalties primarily relate to products sold by Alphatec Spine and are calculated either as a percentage of net sales or in one instance on a per-unit sold basis. Royalties are included on the accompanying condensed consolidated statement of operations as a component of cost of revenues.

Orthotec Settlement

Orthotec Settlement	3 Months Ended
	Mar. 31, 2017
Commitments And Contingencies Disclosure [Abstract]
Orthotec Settlement	8. Orthotec Settlement On September 26, 2014, the Company entered into a Settlement and Release Agreement, dated as of August 13, 2014, by and among the Company and its direct subsidiaries, including Alphatec Spine, Inc., Alphatec Holdings International C.V., Scient'x S.A.S. and Surgiview S.A.S.; HealthpointCapital, LLC, HealthpointCapital Partners, L.P., HealthpointCapital Partners II, L.P., John H. Foster and Mortimer Berkowitz III; and Orthotec, LLC and Patrick Bertranou, (the “Settlement Agreement”). Pursuant to the Settlement Agreement, the Company agreed to pay Orthotec, LLC $49.0 million in cash, including initial cash payments totaling $1.75 million, which the Company previously paid in March 2014, and an additional lump sum payment of $15.75 million, which the Company previously paid in April 2014. The Company agreed to pay the remaining $31.5 million in 28 quarterly installments of $1.1 million and one additional quarterly installment of $0.7 million, commencing October 1, 2014. As of March 31, 2017, the Company has made installment payments in the aggregate of $28.5 million, with a remaining outstanding balance of $29.3 million. The Company has the right to prepay the amounts due without penalty. In addition, the unpaid balance of the amounts due accrues interest at the rate of 7% per year beginning May 15, 2014 until the amounts due are paid in full. The accrued but unpaid interest will be paid in quarterly installments of $1.1 million (or the full amount of the accrued but unpaid interest if less than $1.1 million) following the full payment of the $31.5 million in quarterly installments described above. No interest will accrue on the accrued interest. The Settlement Agreement provided for mutual releases of all claims in the Orthotec, LLC v. Surgiview, S.A.S, et al. matter in the Superior Court of California, Los Angeles County and all other related litigation matters involving the Company and its directors and affiliates.

Net Loss Per Share

Net Loss Per Share	3 Months Ended
	Mar. 31, 2017
Earnings Per Share [Abstract]
Net Loss Per Share	9. Net Loss Per Share Basic earnings per share (“EPS”) is calculated by dividing the net income or loss available to common stockholders by the weighted average number of common shares outstanding for the period, without consideration for common stock equivalents. Diluted EPS is computed by dividing the net income available to common stockholders by the weighted average number of common shares outstanding for the period and the weighted average number of dilutive common stock equivalents outstanding for the period determined using the treasury-stock method. For purposes of this calculation, common stock subject to repurchase by the Company, options, performance-based restricted stock units and warrants are considered to be common stock equivalents and are only included in the calculation of diluted earnings per share when their effect is dilutive. The following table presents the computation of basic and diluted net loss per share for continuing and discontinued operations (in thousands, except per share amounts): Three Months Ended March 31, 2017 2016 Numerator: Loss from continuing operations $ (5,424 ) $ (4,248 ) Loss from discontinued operations (91 ) (2,369 ) Net loss $ (5,515 ) $ (6,617 ) Denominator: Weighted average common shares outstanding 9,089 8,513 Weighted average unvested common shares subject to repurchase (84 ) (47 ) Weighted average common shares outstanding—basic 9,005 8,466 Effect of dilutive securities: Conversion of preferred stock — — Options — — Warrants — — Weighted average common shares outstanding—diluted 9,005 8,466 Net loss per share, basic and diluted: Continuing operations $ (0.60 ) $ (0.50 ) Discontinued operations (0.01 ) (0.28 ) Net loss per share, basic and diluted $ (0.61 ) $ (0.78 ) The anti-dilutive securities not included in diluted net loss per share were as follows (in thousands): Three Months Ended March 31, 2017 2016 Options to purchase common stock 1,164 629 Unvested restricted share awards 84 47 Series A Convertible Preferred Stock 7,622 — Warrants to purchase common stock 9,440 962 Total 18,310 1,638

Stock Benefit Plans and Equity

Stock Benefit Plans and Equity Transactions	3 Months Ended
	Mar. 31, 2017
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
Stock Benefit Plans and Equity Transactions	10. Stock Benefit Plans and Equity Transactions Stock Benefit Plans On October 4, 2016, the Company’s Board of Directors adopted the 2016 Employment Inducement Award Plan (the “Inducement Plan”). The Inducement Plan allows for the grant of options, restricted stock, restricted stock unit awards and performance unit awards to new employees of the Company by granting an award to such new employee as an inducement for such new employee to begin employment with the Company. The Inducement Plan currently has 1,550,000 shares of common stock reserved for issuance, of which, 600,000 shares of common stock were added on March 30, 2017. Equity awards under the Inducement Plan may only be granted to an employee who has not previously been an employee or member of the board of directors of the Company. The terms of the Inducement Plan are substantially similar to the terms of the Company’s 2016 Equity Incentive Plan with two principal exceptions: (i) incentive stock options may not be granted under the Inducement Plan; and (ii) the annual compensation paid by the Company to specified executives will be deductible only to the extent that it does not exceed $1.0 million. The Company granted 175,000 Restricted Share Units ("RSUs") and 175,000 stock options under the Inducement Plan in the quarter ended March 31, 2017. Private Placement Transaction On March 22, 2017, the Company entered into the Securities Purchase Agreement with certain institutional and accredited investors, including certain directors, executive officers and employees of the Company (collectively, the “Purchasers”), providing for the sale by the Company of 1,809,628 shares of the Company’s common stock at a purchase price of $2.00 per share (the “Common Shares”), 15,245 shares of newly designated Series A Convertible Preferred Stock at a purchase price of $1,000 per share (which shares are convertible into approximately 7,622,372 shares of common stock, subject to limitations on conversion until the approval by the Company’s stockholders (“Stockholder Approval”) as required in accordance with the NASDAQ listing rules), and warrants to purchase up to 9,432,000 shares of the Company’s common stock at an exercise price of $2.00 per share (the “Purchaser Warrants”), in a private placement (the “Private Placement”). The Purchaser Warrants will become exercisable following Stockholder Approval, are subject to certain ownership limitations, and expire five years after the date of such Stockholder Approval. An aggregate of $2.35 million of shares of Series A Convertible Preferred Stock, which shares are convertible into approximately 1,175,000 shares of Common Stock, and Warrants to purchase up to 1,175,000 shares of Common Stock were purchased by certain directors, executive officers and employees of the Company. The Company also entered into an engagement letter (the “Engagement Letter”) on March 1, 2017 with H.C. Wainwright & Co., LLC (“Wainwright”), pursuant to which Wainwright agreed to serve as exclusive placement agent for the issuance and sale of the securities in the Private Placement. Pursuant to the Engagement Letter, the Company issued to Wainwright and its designees warrants to purchase up to an aggregate of 471,600 shares of the Company’s common stock (the “Wainwright Warrants,” and together with the Purchaser Warrants, the “Common Stock Warrants”). The Wainwright Warrants have substantially the same terms as the Purchaser Warrants, except that the Wainwright Warrants have an exercise price equal $2.50 per share. The Private Placement, including the issuance of the Wainwright Warrants, closed on March 29, 2017, with aggregate gross proceeds to the Company of approximately $18.9 million. Series A Convertible Preferred Stock On March 29, 2017, in connection with the closing of the Private Placement, the Company filed a Certificate of Designation of Preferences, Rights and Limitations of Series A Convertible Preferred Stock with the Secretary of State of the State of Delaware (the “Certificate of Designation”). The shares of Series A Convertible Preferred Stock have a stated value of $1,000 per share and will be convertible into approximately 500 shares of common stock. Until the date that Stockholder Approval is obtained, the Certificate of Designation limits the number of shares of common stock issuable upon conversion of the Series A Convertible Preferred Stock such that, when aggregated with the shares of common stock issued in the Private Placement, such issuances shall not exceed 19.99% of the Company’s issued and outstanding common stock, as required by NASDAQ listing rules. In addition, the Company’s directors, executive officers and employees who participated in the Private Placement will be unable to convert shares of Series A Convertible Preferred Stock until Stockholder Approval is obtained, pursuant to the NASDAQ listing rules. The Series A Convertible Preferred Stock will be entitled to dividends on an as-if-converted basis in the same form as any dividends actually paid on shares of common stock or other securities. Except as otherwise required by law, the holders of Series A Convertible Preferred Stock will have no right to vote on matters submitted to a vote of the Company’s stockholders. Without the prior written consent of 75% of the outstanding shares of Series A Convertible Preferred Stock, the Company may not: (a) alter or change adversely the powers, preferences or rights given to the Preferred Stock or alter or amend the Certificate of Designation, (b) amend the Company’s certificate of incorporation or other charter documents in any manner that adversely affects any rights of the holders of Series A Convertible Preferred Stock, (c) increase the number of authorized shares of Series A Convertible Preferred Stock, or (d) enter into any agreement with respect to any of the foregoing. In the event of the dissolution and winding up of the Company, the proceeds available for distribution to the Company’s stockholders shall be distributed pari passu among the holders of the shares of common stock and Series A Convertible Preferred Stock, pro rata based upon the number of shares held by each such holder, as if the outstanding shares of Series A Convertible Preferred Stock were convertible, and were converted, into shares of common stock. Common Stock Warrants The Common Stock Warrants are exercisable for cash or, solely, if at any time after the six-month anniversary of the closing date of the Private Placement, there is not an effective registration statement or prospectus registering the issuance of shares of the Company’s common stock upon exercise of the Common Stock Warrants, by cashless exercise. The exercise price of the Common Stock Warrants is subject to adjustment in the case of stock dividends or other distributions on shares of common stock or any other equity or equity equivalent securities payable in shares of common stock, stock splits, stock combinations, reclassifications or similar events affecting the Company’s common stock, and also, subject to limitations, upon any distribution of assets, including cash, stock or other property to the Company’s stockholders. Prior to the exercise, holders of the Common Stock Warrants will not have any of the rights of holders of the common stock purchasable upon exercise, including voting rights; however, the holders of the Common Stock Warrants will have certain rights to participate in distributions or dividends paid on the Company’s common stock to the extent set forth in the Common Stock Warrants. The Common Stock Warrants may not be exercised by the holder to the extent that the holder, together with its affiliates, would beneficially own, after such exercise more than 4.99% of the shares of the Company’s common stock then outstanding (subject to the right of the holder to increase or decrease such beneficial ownership limitation upon notice to us, provided that such limitation cannot exceed 9.99%) and provided that any increase in the beneficial ownership limitation shall not be effective until 61 days after such notice is delivered. If the Company effect a fundamental transaction, then upon any subsequent exercise of any Common Stock Warrants, the holder thereof shall have the right to receive, for each share of common stock that would have been issuable upon such exercise immediately prior to the occurrence of such fundamental transaction, the number of shares of the successor’s or acquiring corporation’s common stock or of the Company’s common stock, if the Company is the surviving corporation, and any additional consideration receivable as a result of such fundamental transaction by a holder of the number of shares of common stock into which the Common Stock Warrants were exercisable immediately prior to such fundamental transaction. In addition, in the event of a fundamental transaction (other than a fundamental transaction not approved by the Company’s Board of Directors), the Company or any successor entity shall, at the holder’s option, purchase the holder’s Common Stock Warrants for an amount of cash equal to the value of the Common Stock Warrants as determined in accordance with the Black Scholes option pricing model. A fundamental transaction as described in the Common Stock Warrants generally includes any merger with or into another entity, sale of all or substantially all of the Company’s assets, tender offer or exchange offer, reclassification of the Company’s common stock or the consummation of a transaction whereby another entity acquires more than 50% of the Company’s outstanding voting stock. In accordance with authoritative guidance, the Purchaser Warrants and the Wainwright Warrants are classified within additional paid in capital on the condensed consolidated balance sheet.

Income Taxes

Income Taxes	3 Months Ended
	Mar. 31, 2017
Income Tax Disclosure [Abstract]
Income Taxes	11. Income Taxes To calculate its interim tax provision, at the end of each interim period the Company estimates the annual effective tax rate and applies that to its ordinary quarterly earnings. In addition, the effect of changes in enacted tax laws or rates or tax status is recognized in the interim period in which the change occurs. The computation of the annual estimated effective tax rate at each interim period requires certain estimates and significant judgment including, but not limited to, the expected operating income for the year, projections of the proportion of income earned and taxed in foreign jurisdictions, permanent and temporary differences between book and tax amounts, and the likelihood of recovering deferred tax assets generated in the current year. The accounting estimates used to compute the provision for income taxes may change as new events occur, additional information is obtained or the tax environment changes. Intraperiod tax allocation rules require the Company to allocate the provision for income taxes between continuing operations and other categories of earnings, such as discontinued operations. In periods in which the Company has a year-to-date pre-tax loss from continuing operations and pre-tax income in other categories of earnings, such as discontinued operations, the Company must allocate the tax provision to the other categories of earnings, and then record a related tax benefit in continuing operations. The Company recognizes interest and penalties related to uncertain tax positions as a component of the income tax provision. The Company’s unrecognized tax benefits increased by less than $0.1 million during the three months ended March 31, 2017. The increase in unrecognized tax benefits during the three months ended March 31, 2017 was primarily related to foreign currency fluctuations and increases in reserves related to U.S. federal and state research credits. The unrecognized tax benefits at March 31, 2017 and December 31, 2016 were $9.4 million and $9.3 million, respectively. With the facts and circumstances currently available to the Company, it is reasonably possible that the amount of reserves that could reverse over the next 12 months is approximately $0.7 million. The income tax provision from continuing operations consists primarily of income tax provisions related to state income taxes. The Company’s effective tax rate of 0.91% for the three months ended March 31, 2017 differs from the federal statutory rate of 35% primarily due to a full valuation allowance and state income taxes. Due to the equity transactions the Company entered into during the three months ended March 31, 2017, an ownership change may have occurred. Pursuant to Internal Revenue Code, or IRC, Sections 382 and 383, annual use of the Company’s net operating loss and research and development credit carryforwards may be limited in the event a cumulative change in ownership of more than 50% occurred within a three-year period. The Company has not completed an IRC Section 382 and 383 analysis regarding the limitation of net operating loss and research and development credit carryforwards. Since there is a full valuation allowance applied to the deferred taxes, an IRC Section 382 limitation will not have an effect on the deferred taxes or the income tax rate. The Company is not currently under examination by the Internal Revenue Service, or by any foreign, state or local tax authorities, however Scient’x’s 2013 and 2014 tax years are currently under audit by the French tax authorities.

Related Party Transactions

Related Party Transactions	3 Months Ended
	Mar. 31, 2017
Related Party Transactions [Abstract]
Related Party Transactions	12. Related Party Transactions For the three months ended March 31, 2017 and 2016, respectively, the Company incurred expenses of less than $0.1 million related to HealthpointCapital, LLC. As of March 31, 2017, the Company also had a liability of less than $0.1 million payable to HealthpointCapital, LLC for travel and administrative expenses. In July 2016, the Company entered into a forbearance agreement with HealthpointCapital, LLC, HealthpointCapital Partners, L.P., and HealthpointCapital Partners II, L.P. (collectively, "HealthpointCapital"), pursuant to which HealthpointCapital, on behalf of the Company, paid $1.0 million of the $1.1 million payment due and payable by the Company to Orthotec on July 1, 2016 and agreed to not exercise its contractual rights to seek an immediate repayment of such amount. Pursuant to this forbearance agreement, the Company repaid this amount in September 2016. The Company and HealthpointCapital also entered into an agreement for joint payment of settlement whereby HealthpointCapital has agreed to contribute $5 million to the $49 million Orthostec settlement amount.

Restructuring

Restructuring	3 Months Ended
	Mar. 31, 2017
Restructuring And Related Activities [Abstract]
Restructuring	13. Restructuring In connection with the Globus Transaction (described in Note 4), the Company terminated employment agreements with several executive officers, including the chief executive officer and the chief financial officer, and commenced an employee headcount reduction program. The Company had additional headcount reductions in February 2017, and recorded restructuring expenses of $1.2 million for the three months ended March 31, 2017, related to severance liability and post-employment benefits. On July 6, 2015, the Company announced a restructuring of its manufacturing operations in California in an effort to improve its cost structure. The restructuring included a reduction in workforce and closing the California manufacturing facility. The Company incurred expenses of $0.1 million during the three months ended March 31, 2016, related to these restructuring activities.

Summary of Significant Accoun20

Summary of Significant Accounting Policies (Policies)	3 Months Ended
	Mar. 31, 2017
Accounting Policies [Abstract]
Warrant Accounting	Warrant Accounting As more fully described in Note 10, the Company issued warrants to purchase shares of the Company’s common stock in connection with a private placement transaction that closed on March 29, 2017. These warrants contain a feature that could require the transfer of cash in the event of a Fundamental Transaction, as defined in such warrants (other than a Fundamental Transaction not approved by the Company’s Board of Directors). The warrant holders do not control the Company’s Board of Directors, and therefore, the Company’s control, the warrants
Recent Accounting Pronouncements	Recent Accounting Pronouncements In May 2014, the FASB issued new accounting guidance related to revenue recognition. This new standard replaces all current U.S. GAAP guidance on this topic and eliminates all industry-specific guidance. The new revenue recognition standard provides a unified model to determine when and how revenue is recognized. The core principle is that a company should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration for which the entity expects to be entitled in exchange for those goods or services. This guidance, including all subsequent clarifications, is effective for the Company for annual and interim reporting periods in fiscal years beginning after December 15, 2017 and can be applied either retrospectively to each period presented or as a cumulative-effect adjustment as of the date of adoption. The Company performed a preliminary assessment of the impact of the new standard on the consolidated financial statements, and considered all items outlined in the standard. In assessing the impact, the Company has outlined all revenue generating activities, mapped those activities to performance obligations and traced those performance obligations to the standard. The Company is now assessing what impact the change in standard will have on those performance obligations. The Company will continue to evaluate the future impact and method of adoption of the new standard and related amendments on the consolidated financial statements and related disclosures throughout 2017. The Company will adopt the new standard beginning January 1, 2018. In July 2015, the FASB issued new accounting guidance, which changes the measurement principle for inventory from the lower of cost or market to lower of cost and net realizable value for entities that do not measure inventory using the last-in, first-out or retail inventory method. The guidance also eliminates the requirement for these entities to consider replacement cost or net realizable value less an approximately normal profit margin when measuring inventory. The guidance is effective for annual periods beginning after December 15, 2016, and interim periods within those annual periods. The Company adopted the standard for reporting periods beginning January 1, 2017. In February 2016, the FASB issued new accounting guidance, which changes several aspects of the accounting for leases, including the requirement that all leases with durations greater than twelve months be recognized on the balance sheet. The guidance is effective for annual periods and interim periods in fiscal years beginning after December 15, 2018. The Company is evaluating the impact of adopting this new accounting standard on its financial statements. In March 2016, the FASB issued new accounting guidance, which changes several aspects of the accounting for share-based payment award transactions, including accounting and cash flow classification for excess tax benefits and deficiencies, forfeitures, and tax withholding requirements and cash flow classification. The guidance is effective for annual periods and interim periods in fiscal years beginning after December 15, 2016. The Company adopted the standard for reporting periods beginning January 1, 2017. In August 2016, the FASB issued new accounting guidance, which eliminates the diversity in practice related to the classification of certain cash receipts and payments in the statement of cash flows, by adding or clarifying guidance on eight specific cash flow issues. The guidance is effective for annual and interim reporting periods beginning after December 15, 2017, with early adoption permitted. The amendments in this update should be applied retrospectively to all periods presented, unless deemed impracticable, in which case, prospective application is permitted. The Company is currently evaluating the new guidance and has not determined the impact this standards update may have on its financial statements.

Select Condensed Consolidated21

Select Condensed Consolidated Balance Sheet Details (Tables)	3 Months Ended
	Mar. 31, 2017
Balance Sheet Related Disclosures [Abstract]
Accounts receivable, net	Accounts receivable, net consist of the following (in thousands): March 31, 2017 December 31, 2016 Accounts receivable $ 15,190 $ 19,870 Allowance for doubtful accounts (978 ) (1,358 ) Accounts receivable, net $ 14,212 $ 18,512
Inventories, net	Inventories, net consist of the following (in thousands): March 31, 2017 December 31, 2016 Raw materials $ 5,664 $ 7,301 Work-in-process 969 823 Finished goods 38,538 38,469 45,171 46,593 Less reserve for excess and obsolete finished goods (15,083 ) (16,500 ) Inventories, net $ 30,088 $ 30,093
Property and equipment, net	Property and equipment, net consist of the following (in thousands except as indicated): Useful lives (in years) March 31, 2017 December 31, 2016 Surgical instruments 4 $ 54,364 $ 53,095 Machinery and equipment 7 5,492 5,435 Computer equipment 3 3,512 3,511 Office furniture and equipment 5 2,707 2,695 Leasehold improvements various 1,653 3,467 Construction in progress n/a - 445 67,728 68,648 Less accumulated depreciation and amortization (52,320 ) (53,572 ) Property and equipment, net $ 15,408 $ 15,076
Intangible assets, net	Intangible assets, net consist of the following (in thousands except for useful lives): Remaining Avg. Useful lives (in years) March 31, 2017 December 31, 2016 Developed product technology — $ 13,876 $ 13,876 Intellectual property — 1,004 1,004 License agreements 2 5,265 5,265 Trademarks and trade names — 732 732 Customer-related 8 7,458 7,458 Distribution network 8 4,027 4,027 32,362 32,362 Less accumulated amortization (26,885 ) (26,651 ) Intangible assets, net $ 5,477 $ 5,711
Schedule of intangible assets, future amortization expense	Future amortization expense related to intangible assets as of March 31, 2017 is as follows (in thousands): Year Ending December 31, Remainder of 2017 $ 702 2018 750 2019 688 2020 688 2021 688 Thereafter 1,961 $ 5,477
Accrued expenses	Accrued expenses consist of the following (in thousands): March 31, 2017 December 31, 2016 Commissions and sales milestones $ 4,156 $ 4,202 Payroll and payroll related 2,419 2,384 Litigation settlements 4,400 4,400 Globus related accruals 767 3,830 Accrued professional fees 2,308 3,093 Royalties 1,350 1,347 Restructuring and severance accruals 1,619 1,328 Accrued taxes 419 404 Guaranteed collaboration compensation, current 4,661 2,228 Accrued interest 388 387 Other 3,686 3,986 Total accrued expenses $ 26,173 $ 27,589

Discontinued Operations (Tables

Discontinued Operations (Tables)	3 Months Ended
	Mar. 31, 2017
Discontinued Operations And Disposal Groups [Abstract]
Summary of discontinued business segment	The following table summarizes the preliminary calculation of the gain on sale (in thousands): Consideration received $ 80,000 Cash included in assets sold (4,250 ) Transaction costs (5,960 ) Net cash proceeds 69,790 Less: Product supply obligation (1,927 ) Working capital adjustment (2,295 ) Carrying value of business and assets sold (57,633 ) Net gain on sale of business $ 7,935 The following table summarizes the results of discontinued operations for the periods presented in the condensed consolidated statements of operations and comprehensive income (loss) for the three months ended March 31, 2017 and 2016 (in thousands): Three Months Ended March 31, Discontinued operations 2017 2016 Revenues $ — $ 10,555 Cost of revenues — 3,813 Amortization of acquired intangible assets — 360 Gross profit — 6,382 Operating expenses: Research and development — 26 Sales and marketing — 4,182 General and administrative 73 1,643 Amortization of acquired intangible assets — 231 Restructuring expenses — 597 Total operating expenses 73 6,679 Operating loss (73 ) (297 ) Other income (expense): Interest expense, net — (2,356 ) Other income (expense), net — 847 Total other income (expense) — (1,509 ) Loss from discontinued operations before taxes (73 ) (1,806 ) Income tax provision 18 563 Loss from discontinued operations, net of applicable taxes $ (91 ) $ (2,369 ) The following table summarizes the assets and liabilities of discontinued operations as of March 31, 2017 and December 31, 2016 related to the International Business (in thousands): March 31, 2017 December 31, 2016 Assets Current assets: Cash $ 92 $ 159 Inventories, net — 48 Prepaid expenses and other current assets 78 157 Total current assets of discontinued operations 170 364 Other assets 58 61 Total assets of discontinued operations $ 228 $ 425 Liabilities Current liabilities: Accounts payable $ 72 $ 43 Accrued expenses 206 689 Other current liabilities 15 — Total current liabilities of discontinued operations $ 293 $ 732 Included in the cash flows for the three months ended March 31, 2017 and 2016 are the following non-cash adjustments related to the discontinued operations (in thousands): Three 2017 2016 Depreciation and amortization $ — $ 1,396 Provision for excess and obsolete inventory $ — $ 77 Capital expenditures $ — $ 697 Interest expense related to amortization of debt discount and debt issuance costs $ — $ 646

Debt (Tables)

Debt (Tables)	3 Months Ended
	Mar. 31, 2017
Debt Disclosure [Abstract]
Principal Payments on Debt	Principal payments on the Company's debt are as follows as of March 31, 2017 (in thousands): Year Ending December 31, Remainder of 2017 $ 2,689 2018 4,046 2019 14,198 2020 3,333 2021 and thereafter 21,667 Total 45,933 Add: capital lease principal payments 314 Less: unamortized debt discount and debt issuance costs (3,614 ) Total 42,633 Less: current portion of long-term debt (2,616 ) Long-term debt, net of current portion $ 40,017

Commitments and Contingencies (

Commitments and Contingencies (Tables)	3 Months Ended
	Mar. 31, 2017
Commitments And Contingencies Disclosure [Abstract]
Future minimum annual lease payments	Future minimum annual lease payments under such leases are as follows as of March 31, 2017 (in thousands): Year Ending December 31, Operating Capital Remainder of 2017 $ 1,205 $ 261 2018 1,556 68 2019 1,543 — 2020 1,538 — 2021 and thereafter 971 — $ 6,813 329 Less: amount representing interest (15 ) Present value of minimum lease payments 314 Current portion of capital leases (270 ) Capital leases, less current portion $ 44

Net Loss Per Share (Tables)

Net Loss Per Share (Tables)	3 Months Ended
	Mar. 31, 2017
Earnings Per Share [Abstract]
Weighted average number of common shares outstanding	The following table presents the computation of basic and diluted net loss per share for continuing and discontinued operations (in thousands, except per share amounts): Three Months Ended March 31, 2017 2016 Numerator: Loss from continuing operations $ (5,424 ) $ (4,248 ) Loss from discontinued operations (91 ) (2,369 ) Net loss $ (5,515 ) $ (6,617 ) Denominator: Weighted average common shares outstanding 9,089 8,513 Weighted average unvested common shares subject to repurchase (84 ) (47 ) Weighted average common shares outstanding—basic 9,005 8,466 Effect of dilutive securities: Conversion of preferred stock — — Options — — Warrants — — Weighted average common shares outstanding—diluted 9,005 8,466 Net loss per share, basic and diluted: Continuing operations $ (0.60 ) $ (0.50 ) Discontinued operations (0.01 ) (0.28 ) Net loss per share, basic and diluted $ (0.61 ) $ (0.78 )
Weighted-average anti-dilutive securities not included in diluted net loss per share	The anti-dilutive securities not included in diluted net loss per share were as follows (in thousands): Three Months Ended March 31, 2017 2016 Options to purchase common stock 1,164 629 Unvested restricted share awards 84 47 Series A Convertible Preferred Stock 7,622 — Warrants to purchase common stock 9,440 962 Total 18,310 1,638

The Company and Basis of Pres26

The Company and Basis of Presentation - Additional Information (Details) $ in Thousands	Aug. 24, 2016	Mar. 31, 2017USD ($)marketsegment	Dec. 31, 2016USD ($)
Organization Consolidation And Presentation Of Financial Statements [Abstract]
Number of product markets (more than 50) | market		50
Number of reportable segments | segment		1
Reverse stock split ratio	0.0833
Working capital		$ 39,100
Cash		$ 25,485	$ 19,593

Select Condensed Consolidated27

Select Condensed Consolidated Balance Sheet Details - Accounts Receivable, Net (Details) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Balance Sheet Related Disclosures [Abstract]
Accounts receivable	$ 15,190	$ 19,870
Allowance for doubtful accounts	(978)	(1,358)
Accounts receivable, net	$ 14,212	$ 18,512

Select Condensed Consolidated28

Select Condensed Consolidated Balance Sheet Details - Inventories, Net (Details) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Balance Sheet Related Disclosures [Abstract]
Raw materials	$ 5,664	$ 7,301
Work-in-process	969	823
Finished goods	38,538	38,469
Inventory, gross, total	45,171	46,593
Less reserve for excess and obsolete finished goods	(15,083)	(16,500)
Inventories, net	$ 30,088	$ 30,093

Select Condensed Consolidated29

Select Condensed Consolidated Balance Sheet Details - Property and Equipment, Net (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016	Dec. 31, 2016
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 67,728		$ 68,648
Less accumulated depreciation and amortization	(52,320)		(53,572)
Property and equipment, net	15,408		15,076
Depreciation	$ 1,600	$ 2,300
Surgical instruments
Property, Plant and Equipment [Line Items]
Useful lives	4 years
Property and equipment, gross	$ 54,364		53,095
Machinery and equipment
Property, Plant and Equipment [Line Items]
Useful lives	7 years
Property and equipment, gross	$ 5,492		5,435
Capital leased assets, gross	$ 2,100		2,100
Computer equipment
Property, Plant and Equipment [Line Items]
Useful lives	3 years
Property and equipment, gross	$ 3,512		3,511
Office furniture and equipment
Property, Plant and Equipment [Line Items]
Useful lives	5 years
Property and equipment, gross	$ 2,707		2,695
Leasehold improvements
Property, Plant and Equipment [Line Items]
Various useful lives of leasehold improvements	various
Property and equipment, gross	$ 1,653		3,467
Construction in progress
Property, Plant and Equipment [Line Items]
Property and equipment, gross			$ 445

Select Condensed Consolidated30

Select Condensed Consolidated Balance Sheet Details - Intangible Assets, Net (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016	Dec. 31, 2016
Finite-Lived Intangible Assets [Line Items]
Intangible assets, Gross	$ 32,362		$ 32,362
Less accumulated amortization	(26,885)		(26,651)
Intangible assets, net	5,477		5,711
Amortization of intangible assets	200	$ 300
Developed product technology
Finite-Lived Intangible Assets [Line Items]
Intangible assets, Gross	13,876		13,876
Intellectual property
Finite-Lived Intangible Assets [Line Items]
Intangible assets, Gross	$ 1,004		1,004
License agreements
Finite-Lived Intangible Assets [Line Items]
Useful lives	2 years
Intangible assets, Gross	$ 5,265		5,265
Trademarks and trade names
Finite-Lived Intangible Assets [Line Items]
Intangible assets, Gross	$ 732		732
Customer-related
Finite-Lived Intangible Assets [Line Items]
Useful lives	8 years
Intangible assets, Gross	$ 7,458		7,458
Distribution network
Finite-Lived Intangible Assets [Line Items]
Useful lives	8 years
Intangible assets, Gross	$ 4,027		$ 4,027

Select Condensed Consolidated31

Select Condensed Consolidated Balance Sheet Details - Schedule of Intangible Assets, Future Amortization Expense (Details) $ in Thousands	Mar. 31, 2017USD ($)
Balance Sheet Related Disclosures [Abstract]
Remainder of 2017	$ 702
2,018	750
2,019	688
2,020	688
2,021	688
Thereafter	1,961
Total	$ 5,477

Select Condensed Consolidated32

Select Condensed Consolidated Balance Sheet Details - Accrued Expenses (Details) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Balance Sheet Related Disclosures [Abstract]
Commissions and sales milestones	$ 4,156	$ 4,202
Payroll and payroll related	2,419	2,384
Litigation settlements	4,400	4,400
Globus related accruals	767	3,830
Accrued professional fees	2,308	3,093
Royalties	1,350	1,347
Restructuring and severance accruals	1,619	1,328
Accrued taxes	419	404
Guaranteed collaboration compensation, current	4,661	2,228
Accrued interest	388	387
Other	3,686	3,986
Total accrued expenses	$ 26,173	$ 27,589

Discontinued Operations - Addit

Discontinued Operations - Additional Information (Details)	Sep. 01, 2016USD ($)option	Mar. 31, 2017USD ($)	Mar. 31, 2016USD ($)
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Repayments of lines of credit		$ 26,426,000	$ 33,878,000
Revenues		27,978,000	34,206,000
Cost of revenues		11,199,000	9,719,000
Supply agreement [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Contracts revenue		4,500,000
Cost of sales on contract revenues		$ 3,800,000
International
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Revenues			5,000,000
Cost of revenues			4,000,000
Deerfield facility agreement and amended credit facility | Line of credit
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Repayments of lines of credit	$ 66,000,000
Globus facility agreement
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Maximum borrowing capacity	$ 30,000,000
Globus facility agreement | Line of credit
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Line of credit, expiration period	5 years
Discontinued operations, disposed of by sale | International operations
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Noncompete agreement term	2 years
Consideration received	$ 80,000,000
Supply commitment term	3 years
Supply agreement, number of annual options to extend | option	2
Supply obligation credit	$ 1,927,000
Supply obligation credit term	6 months
Interest expense, debt excluding amortization			2,356,000
Discontinued operations, disposed of by sale | International operations | Maximum
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Supply obligation credit	$ 1,900,000
Discontinued operations, disposed of by sale | International operations | Deerfield facility agreement and amended credit facility
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Interest expense, debt excluding amortization			$ 2,400,000

Discontinued Operations - Sched

Discontinued Operations - Schedule of Gain on Sale of Business (Details) - Discontinued operations, disposed of by sale - International operations - USD ($) $ in Thousands	Sep. 01, 2016	Mar. 31, 2017	Dec. 31, 2016
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Consideration received	$ 80,000
Cash included in assets sold	(4,250)	$ (92)	$ (159)
Transaction costs	(5,960)
Net cash proceeds	69,790
Product supply obligation	(1,927)
Working capital adjustment	(2,295)
Carrying value of business and assets sold	(57,633)
Net gain on sale of business	$ 7,935

Discontinued Operations - Resul

Discontinued Operations - Results from Discontinued Operations (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Other income (expense):
Loss from discontinued operations, net of applicable taxes	$ (91)	$ (2,369)
International operations | Discontinued operations, disposed of by sale
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Revenues		10,555
Cost of revenues		3,813
Amortization of acquired intangible assets		360
Gross profit		6,382
Operating expenses:
Research and development		26
Sales and marketing		4,182
General and administrative	73	1,643
Amortization of acquired intangible assets		231
Restructuring expenses		597
Total operating expenses	73	6,679
Operating loss	(73)	(297)
Other income (expense):
Interest expense, net		(2,356)
Other income (expense), net		847
Total other income (expense)		(1,509)
Loss from discontinued operations before taxes	(73)	(1,806)
Income tax provision	18	563
Loss from discontinued operations, net of applicable taxes	$ (91)	$ (2,369)

Discontinued Operations - Sch36

Discontinued Operations - Schedule of Assets and Liabilities Discontinued Operations (Details) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016	Sep. 01, 2016
Current assets:
Total current assets of discontinued operations	$ 170	$ 364
Current liabilities:
Accrued expenses	767	3,830
Total current liabilities of discontinued operations	293	732
International operations | Discontinued operations, disposed of by sale
Current assets:
Cash	92	159	$ 4,250
Inventories, net		48
Prepaid expenses and other current assets	78	157
Total current assets of discontinued operations	170	364
Non-current assets:
Other assets	58	61
Total assets of discontinued operations	228	425
Current liabilities:
Accounts payable	72	43
Accrued expenses	206	689
Other current liabilities	15
Total current liabilities of discontinued operations	$ 293	$ 732

Discontinued Operations - Sch37

Discontinued Operations - Schedule of Non-Cash Adjustments from Discontinued Operations (Details) - International operations - Discontinued operations, disposed of by sale $ in Thousands	3 Months Ended
	Mar. 31, 2016USD ($)
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Depreciation and amortization	$ 1,396
Provision for excess and obsolete inventory	77
Capital expenditures	697
Interest expense related to amortization of debt discount and debt issuance costs	$ 646

Debt - MidCap Facility Agreemen

Debt - MidCap Facility Agreement (Details) - Amended credit facility with MidCap - USD ($)	3 Months Ended	12 Months Ended
	Mar. 31, 2017	Dec. 31, 2018	Dec. 31, 2017
Line of Credit Facility [Line Items]
Unamortized debt discount	$ 1,900,000
Line of credit | Maximum
Line of Credit Facility [Line Items]
Debt default, interest rate increase	5.00%
Forecast
Line of Credit Facility [Line Items]
Monthly term loan payments		$ 300,000	$ 200,000
Revolving credit facility
Line of Credit Facility [Line Items]
Maximum borrowing capacity	$ 22,500,000
Line of credit	$ 10,300,000
Interest rate	6.80%
Revolving credit facility | LIBOR
Line of Credit Facility [Line Items]
Interest rate description	LIBOR plus 6.0%
Basis spread	6.00%
Term loan
Line of Credit Facility [Line Items]
Maximum borrowing capacity	$ 5,000,000
Line of credit	$ 4,200,000
Floor on interest rate	9.50%
Interest rate	9.50%
Term loan | LIBOR
Line of Credit Facility [Line Items]
Interest rate description	("LIBOR") plus 8.0%
Basis spread	8.00%

Debt - Globus Facility Agreemen

Debt - Globus Facility Agreement (Details) - USD ($)	Sep. 02, 2018	Sep. 01, 2016	Mar. 31, 2017	Dec. 31, 2016	Mar. 31, 2016
Debt Instrument [Line Items]
Borrowings under lines of credit			$ 24,195,000		$ 34,879,000
Globus facility agreement
Debt Instrument [Line Items]
Maximum borrowing capacity		$ 30,000,000
Unamortized debt discount			1,000,000
Line of credit | Globus facility agreement
Debt Instrument [Line Items]
Borrowings under lines of credit		$ 25,000,000		$ 5,000,000
Line of credit			30,000,000
Debt instrument, periodic payment			$ 800,000
Line of credit | Globus facility agreement | Maximum
Debt Instrument [Line Items]
Debt default, interest rate increase		5.00%
Line of credit | LIBOR | Globus facility agreement
Debt Instrument [Line Items]
Interest rate description			LIBOR plus 8.0%
Basis spread			8.00%
Line of credit | LIBOR | Globus facility agreement | Forecast
Debt Instrument [Line Items]
Interest rate description	LIBOR plus 13.0%
Basis spread	13.00%

Debt - Principal Payments on De

Debt - Principal Payments on Debt (Detail) $ in Thousands	Mar. 31, 2017USD ($)
Debt Disclosure [Abstract]
Remainder of 2017	$ 2,689
2,018	4,046
2,019	14,198
2,020	3,333
2021 and thereafter	21,667
Total	45,933
Add: capital lease principal payments	314
Less: unamortized debt discount and debt issuance costs	(3,614)
Total	42,633
Less: current portion of long-term debt	(2,616)
Long-term debt, net of current portion	$ 40,017

Commitments and Contingencies -

Commitments and Contingencies - Additional Information (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Loss Contingencies [Line Items]
Rent expense	$ 0.4	$ 0.6
Minimum
Loss Contingencies [Line Items]
Lease interest rate	6.60%
Maximum
Loss Contingencies [Line Items]
Lease interest rate	9.60%

Commitments and Contingencies42

Commitments and Contingencies - Future Minimum Annual Lease Payments (Details) $ in Thousands	Mar. 31, 2017USD ($)
Commitments And Contingencies Disclosure [Abstract]
Operating leases Remainder of 2017	$ 1,205
Operating leases 2018	1,556
Operating leases 2019	1,543
Operating leases 2020	1,538
Operating leases 2021 and thereafter	971
Total Operating leases	6,813
Capital leases Remainder of 2017	261
Capital leases 2018	68
Total Capital leases	329
Less: amount representing interest	(15)
Present value of minimum lease payments	314
Current portion of capital leases	(270)
Capital leases, less current portion	$ 44

Orthotec Settlement - Additiona

Orthotec Settlement - Additional Information (Details) - Orthotec LLC, litigation settlement $ in Thousands	Oct. 01, 2014USD ($)	Aug. 13, 2014USD ($)installment	Apr. 30, 2014USD ($)	Mar. 31, 2014USD ($)	Mar. 31, 2017USD ($)
Loss Contingencies [Line Items]
Judgment assessed by court for (against) company		$ (49,000)
Payments of settlement			$ 15,750	$ 1,750	$ 28,500
Number of quarterly installments | installment		28
Litigation settlement interest, quarterly installments, amount		$ 1,100
Litigation settlement, final installment amount		700
Loss contingency accrual					$ 29,300
Beginning fourth quarter of 2014
Loss Contingencies [Line Items]
Settlement amount, remaining balance	$ 31,500
Litigation settlement interest, quarterly installments, amount		$ 1,100
Litigation settlement interest rate		7.00%
Litigation settlement payments, quarterly payment amount		$ 1,100
Final installment
Loss Contingencies [Line Items]
Number of quarterly installments | installment		1

Net Loss Per Share - Weighted A

Net Loss Per Share - Weighted Average Number of Common Shares Outstanding (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Numerator:
Loss from continuing operations	$ (5,424)	$ (4,248)
Loss from discontinued operations	(91)	(2,369)
Net loss	$ (5,515)	$ (6,617)
Denominator:
Weighted average common shares outstanding	9,089	8,513
Weighted average unvested common shares subject to repurchase	(84)	(47)
Weighted average common shares outstanding—basic	9,005	8,466
Effect of dilutive securities:
Effect of dilutive securities: conversion of preferred stock	0	0
Effect of dilutive securities: options	0	0
Effect of dilutive securities: warrants	0	0
Weighted average common shares outstanding—diluted	9,005	8,466
Net loss per share, basic and diluted:
Continuing operations, net loss per share, basic and diluted (in dollars per share)	$ (0.60)	$ (0.50)
Discontinued operations, net loss per share, basic and diluted	(0.01)	(0.28)
Net loss per basic and diluted share (in dollars per share)	$ (0.61)	$ (0.78)

Net Loss Per Share - Weighted-A

Net Loss Per Share - Weighted-Average Anti-Dilutive Securities Not Included in Diluted Net Loss Per Share (Details) - shares shares in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti-dilutive securities not included in diluted net loss per share (in shares)	18,310	1,638
Options to purchase common stock
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti-dilutive securities not included in diluted net loss per share (in shares)	1,164	629
Unvested restricted share awards
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti-dilutive securities not included in diluted net loss per share (in shares)	84	47
Warrants to purchase common stock
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti-dilutive securities not included in diluted net loss per share (in shares)	9,440	962
Series A convertible preferred stock
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti-dilutive securities not included in diluted net loss per share (in shares)	7,622

Stock Benefit Plans and Equit46

Stock Benefit Plans and Equity Transactions - Additional Information (Details) - USD ($)	Mar. 29, 2017	Mar. 22, 2017	Oct. 31, 2016	Mar. 31, 2017	Mar. 30, 2017	Mar. 01, 2017	Dec. 31, 2016	Oct. 04, 2016
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Series A convertible preferred stock, shares issued					15,000		0
Exercise price of warrants (dollars per share)		$ 2
Warrant expiration period		5 years
Preferred stock, stated value per share					$ 0.0001		$ 0.0001
Wainwright Warrants
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Exercise price of warrants (dollars per share)						$ 2.50
Aggregate gross proceeds for private placement	$ 18,900,000
Maximum
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Beneficial ownership limitation percentage				4.99%
Beneficial ownership, limitation option, percentage				9.99%
Beneficial ownership limitation notification period				61 days
Maximum | Certificate Of Designation
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Convertible preferred stock, percentage of shares issuable upon conversion	19.99%
Maximum | Wainwright Warrants
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Number of warrants issued (in shares)						471,600
Minimum
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Percentage of outstanding voting stock acquired				50.00%
Common Stock
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Issuance of common stock upon securities purchase agreement		1,809,628
Common stock purchase price share		$ 2
Common Stock | Maximum
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Number of warrants issued (in shares)		9,432,000
Common Stock | Certain Directors and Executive Officers | Maximum
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Number of warrants issued (in shares)		1,175,000
Series A convertible preferred stock
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Series A convertible preferred stock, shares issued		15,245
Shares issued price per share		$ 1,000
Percentage of outstanding preferred stock shares	75.00%
Series A convertible preferred stock | Certificate Of Designation
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Preferred stock convertible to common stock	500,000
Preferred stock, stated value per share	$ 1,000
Series A convertible preferred stock | Certain Directors and Executive Officers
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Preferred stock convertible to common stock		1,175,000
Aggregate amount of convertible preferred shares purchased		$ 2,350,000
Series A convertible preferred stock | Common Stock
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Preferred stock convertible to common stock		7,622,372
Inducement Plan
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Common stock reserved for future issuance					600,000			1,550,000
Maximum award to be deductible other than options								$ 1,000,000
Stock options granted in period			175,000
RSUs | Inducement Plan
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Equity instruments other than options granted in period (in shares)			175,000

Income Taxes - Additional Infor

Income Taxes - Additional Information (Details) - USD ($)	3 Months Ended
	Mar. 31, 2017	Dec. 31, 2016
Income Tax [Line Items]
Unrecognized tax benefits	$ 9,400,000	$ 9,300,000
Reasonably possible amount of unrecognized tax benefit that could reverse in the next twelve months	$ 700,000
Effective income tax rate	0.91%
Federal statutory income tax rate	35.00%
Cumulative Change in ownership for IRC carryforwards usage limitation	3 years
Maximum
Income Tax [Line Items]
Unrecognized tax benefits increase (decrease)	$ 100,000
Minimum
Income Tax [Line Items]
Ownership percentage for IRC carryforwards usage limitation	50.00%

Related Party Transactions - Ad

Related Party Transactions - Additional Information (Details) - USD ($) $ in Thousands	Jul. 01, 2016	Aug. 13, 2014	Sep. 30, 2014	Apr. 30, 2014	Mar. 31, 2014	Mar. 31, 2017	Mar. 31, 2016
Orthotec LLC, litigation settlement
Related Party Transaction [Line Items]
Payments of settlement				$ 15,750	$ 1,750	$ 28,500
Judgment assessed by court for (against) company		$ (49,000)
Orthotec LLC, litigation settlement | HealthpointCapital, LLC
Related Party Transaction [Line Items]
Payments of settlement	$ 1,000					1,100
Judgment assessed by court for (against) company			$ (5,000)
HealthpointCapital, LLC
Related Party Transaction [Line Items]
Incurred expenses (less than $.1 million)						100	$ 100
Payable liability (less than $.1 million)						$ 100

Restructuring (Details)

Restructuring (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Restructuring Cost and Reserve [Line Items]
Restructuring expenses	$ 1,231	$ 89
2015 California manufacturing operations restructuring plan
Restructuring Cost and Reserve [Line Items]
Restructuring expenses		$ 100
Employee severance | Severance liability and post employment benefits in connection with Globus transaction
Restructuring Cost and Reserve [Line Items]
Restructuring expenses	$ 1,200