Protara Therapeutics (TARA) 10-Q 9 May 16 2016 Q1 Quarterly report Financial data

Document And Entity Information

Document And Entity Information - shares	3 Months Ended
	Mar. 31, 2016	Apr. 30, 2016
Entity Registrant Name	PROTEON THERAPEUTICS INC
Entity Central Index Key	1,359,931
Trading Symbol	prto
Current Fiscal Year End Date	--12-31
Entity Filer Category	Accelerated Filer
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Well-known Seasoned Issuer	No
Entity Common Stock, Shares Outstanding (in shares)		16,566,636
Document Type	10-Q
Document Period End Date	Mar. 31, 2016
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	Q1
Amendment Flag	false

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets (Unaudited) - USD ($)	Mar. 31, 2016	Dec. 31, 2015
Current assets:
Cash and cash equivalents	$ 24,062,000	$ 40,031,000
Available-for-sale investments	35,326,000	25,232,000
Prepaid expenses and other current assets	1,053,000	1,345,000
Total current assets	60,441,000	66,608,000
Property and equipment, net	208,000	224,000
Other non-current assets	693,000	706,000
Total assets	61,342,000	67,538,000
Current liabilities:
Accounts payable	431,000	1,020,000
Accrued expenses	2,838,000	2,576,000
Other current liabilities	319,000	537,000
Total current liabilities	3,588,000	4,133,000
Total liabilities	$ 3,588,000	$ 4,133,000
Commitments and contingencies (Note 5)
Preferred stock, $0.001 par value per share; 10,000,000 shares authorized, no shares issued and outstanding at March 31, 2016 and December 31, 2015	$ 0	$ 0
Common stock, $0.001 par value, 100,000,000 shares authorized at March 31, 2016 and December 31, 2015; 16,507,894 and 16,501,500 shares issued and outstanding at March 31, 2016 and December 31, 2015, respectively	16,000	16,000
Additional paid-in capital	195,529,000	194,651,000
Retained Earnings (Accumulated Deficit)	(137,803,000)	(131,251,000)
Accumulated other comprehensive income (loss)	12,000	(11,000)
Total stockholders’ equity	57,754,000	63,405,000
Total liabilities and stockholders’ equity	$ 61,342,000	$ 67,538,000

Condensed Consolidated Balance3

Condensed Consolidated Balance Sheets (Unaudited) (Parentheticals) - $ / shares	Mar. 31, 2016	Dec. 31, 2015
Preferred stock, par value (in dollars per share)	$ 0.001	$ 0.001
Preferred stock, shares authorized (in shares)	10,000,000	10,000,000
Preferred stock, shares issued (in shares)	0	0
Preferred stock, shares outstanding (in shares)	0	0
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, shares authorized (in shares)	100,000,000	100,000,000
Common stock, shares issued (in shares)	16,507,894	16,501,500
Common stock, shares outstanding (in shares)	16,507,894	16,501,500

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations and Comprehensive Loss (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Research and Development Expense [Member]
Included in operating expenses, above, are the following amounts for non-cash stock based compensation expense:
Allocated share-based compensation	$ 308	$ 110
General and Administrative Expense [Member]
Included in operating expenses, above, are the following amounts for non-cash stock based compensation expense:
Allocated share-based compensation	558	297
Research and development	4,349	2,633
General and administrative	2,470	1,987
Total operating expenses	6,819	4,620
Loss from operations	(6,819)	(4,620)
Investment income	56	$ 40
Other income, net	211
Total other income	267	$ 40
Net loss	(6,552)	(4,580)
Unrealized gain on available-for-sale investments	23	6
Comprehensive loss	(6,529)	(4,574)
Net loss attributable to common stockholders	$ (6,552)	$ (4,580)
Net loss per share attributable to common stockholders - basic and diluted (in dollars per share)	$ (0.40)	$ (0.28)
Weighted-average common shares outstanding used in net loss per share attributable to common stockholders - basic and diluted (in shares)	16,507,586	16,448,688
Allocated share-based compensation	$ 866	$ 407
Included in other income, net, above, are the following amounts from forward foreign currency contracts:
Realized gains from forward foreign currency contracts	6
Unrealized gains from forward foreign currency contracts	178
Total	$ 184

Condensed Consolidated Stateme5

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Operating activities
Net loss	$ (6,552)	$ (4,580)
Reconciliation of net loss to net cash used in operating activities:
Depreciation	24	8
Amortization of premium/discount on available-for-sale securities	36	$ 198
Unrealized gain on forward foreign currency contracts included in net income	(178)
Foreign currency remeasurement gain	(28)
Stock-based compensation	866	$ 407
Changes in:
Prepaid expenses and other assets	331	103
Interest receivable	(26)	(305)
Accounts payable, accrued expenses and other current liabilities	(367)	296
Net cash used in operating activities	(5,894)	(3,873)
Investing activities
Purchases of available-for-sale investments	(23,721)	(58,139)
Proceeds from maturities of available-for-sale investments	13,614	2,961
Purchase of property and equipment	(8)	(5)
Net cash used in investing activities	(10,115)	$ (55,183)
Financing activities
Exercise of stock options	12
Net cash provided by financing activities	12
Effect of exchange rate changes on cash	28
Decrease in cash and cash equivalents	(15,969)	$ (59,056)
Cash and cash equivalents, beginning of period	40,031	68,840
Cash and cash equivalents, end of period	$ 24,062	$ 9,784

Note 1 - Organization and Opera

Note 1 - Organization and Operations	3 Months Ended
	Mar. 31, 2016
Notes to Financial Statements
Nature of Operations [Text Block]	1. Organization and Operations The Company Proteon Therapeutics, Inc. (the “Company”) is a late-stage biopharmaceutical company focused on the development of novel, first-in-class pharmaceuticals to address the medical needs of patients with kidney and vascular disease. The Company was formed in June 2001 and incorporated on March 24, 2006. Since inception, the Company has devoted substantially all of its efforts to product research and development, initial market development and raising capital. The Company has not generated any product revenue related to its primary business purpose to date and is subject to a number of risks similar to those of other development stage companies, including dependence on key individuals, competition from other companies, the need for development of commercially viable products and the need to obtain adequate additional financing to fund the development of its product candidates. The Company is also subject to a number of risks similar to other companies in the biotechnology industry, including regulatory approval of products, uncertainty of market acceptance of products, competition from substitute products and larger companies, the need to obtain additional financing, compliance with government regulations, protection of proprietary technology, dependence on third parties, product liability and dependence on key individuals. As of March 31, 2016, the Company had cash, cash equivalents and available-for-sale investments of $59.4 million. The Company believes that its existing cash, cash equivalents and available-for-sale investments will be sufficient to fund operations and capital expenditures into the fourth quarter of 2017. The Company had an accumulated deficit of $137.8 million as of March 31, 2016. On November 12, 2015, the Company filed a shelf registration statement on Form S-3 (the “Registration Statement”), and entered into a Sales Agreement with Cowen and Company, LLC (the "Sales Agreement") to establish an at-the-market (“ATM”) equity offering program pursuant to which they are able, with the Company’s authorization, to offer and sell up to $40 million of the Company’s Common Stock at prevailing market prices from time to time. The Registration Statement became effective on January 12, 2016. As of March 31, 2016, the Company had not commenced sales under this program.

Note 2 - Summary of Significant

Note 2 - Summary of Significant Accounting Policies	3 Months Ended
	Mar. 31, 2016
Notes to Financial Statements
Significant Accounting Policies [Text Block]	2. Summary of Significant Accounting Policies Basis of Presentation, Principles of Consolidation and Use of Estimates The unaudited interim condensed consolidated financial statements have been prepared on the same basis as the audited financial statements. In the opinion of the Company’s management, the accompanying unaudited interim condensed consolidated financial statements contain all adjustments which are necessary to fairly present the Company’s financial position as of March 31, 2016, the results of its operations for the three months ended March 31, 2016 and 2015 and its cash flows for the three months ended March 31, 2016 and 2015. Such adjustments are of a normal and recurring nature. The results for the three months ended March 31, 2016 are not necessarily indicative of the results for the year ending December 31, 2016, or for any future period. The unaudited interim condensed consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries, Proteon Therapeutics Limited and Proteon Securities Corp. All intercompany balances and transactions have been eliminated in consolidation. These condensed consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”). Any reference in these notes to applicable guidance is meant to refer to the authoritative United States generally accepted accounting principles as found in the Accounting Standards Codification (“ASC”) and Accounting Standards Update (“ASU”) of the Financial Accounting Standards Board (“FASB”). The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. On an ongoing basis, the Company’s management evaluates its estimates, which include, but are not limited to, estimates related to convertible notes, stock-based compensation expense, clinical trial accruals and reported amounts of revenues and expenses during the reported period. The Company bases its estimates on historical experience and other market-specific or other relevant assumptions that it believes to be reasonable under the circumstances. Actual results may differ from those estimates or assumptions. Fair Value of Financial Instruments The Company’s financial instruments consist of cash and cash equivalents, available-for-sale investments, forward foreign currency contracts (see Note 4), accounts payable, and accrued liabilities. The Company is required to disclose information on all assets and liabilities reported at fair value that enables an assessment of the inputs used in determining the reported fair values. FASB ASC Topic 820, Fair Value Measurement and Disclosures · Level 1—Valuations based on unadjusted quoted prices in active markets for identical assets or liabilities that the Company has the ability to access at the measurement date. · Level 2—Valuations based on quoted prices for similar assets or liabilities in markets that are not active or for which all significant inputs are observable, either directly or indirectly. · Level 3—Valuations that require inputs that reflect the Company’s own assumptions that are both significant to the fair value measurement and unobservable. To the extent that valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment. Accordingly, the degree of judgment exercised by the Company in determining fair value is greatest for instruments categorized in Level 3. A financial instrument’s level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. Financial instruments measured at fair value on a recurring basis include cash equivalents, short-term investments and forward foreign currency contracts (see Note 4). There have been no changes to the valuation methods utilized by the Company during the three months ended March 31, 2016 and 2015. The Company evaluates transfers between levels at the end of each reporting period. There were no transfers of financial instruments between levels during the three months ended March 31, 2016 and 2015. Derivative Financial Instruments The Company enters into forward foreign currency contracts to mitigate its exposure to fluctuations in the exchange rates between the Swiss Franc and the U.S. dollar (see Note 4). The Company records these derivative financial instruments on the consolidated balance sheets at fair value. Although these derivative contracts are intended to economically hedge foreign exchange risk, the Company has not elected to apply hedge accounting. As such, changes in the fair value of these instruments are recorded directly in earnings as a component of other income (expense), as they occur. The Company executes its derivative instruments with financial institutions that the Company judges to be credit-worthy, defined as institutions that hold an investment-grade credit rating. Recent Accounting Pronouncements In May 2014, the FASB issued ASU 2014-09, “Revenue from Contracts with Customers” In August 2014, the FASB issued ASU 2014-15, “Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern” In November 2015, the FASB issued ASU No. 2015-17, Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes There have been no other material changes to the significant accounting policies previously disclosed in the Company’s Annual Report on Form 10-K, as filed with the SEC on March 14, 2016.

Note 3 - Fair Value Measurement

Note 3 - Fair Value Measurements	3 Months Ended
	Mar. 31, 2016
Notes to Financial Statements
Fair Value Disclosures [Text Block]	3. Fair Value Measurements Below is a summary of assets and liabilities measured at fair value (in thousands): As of March 31, 2016 Quoted Prices Significant Significant in Active Observable Unobservable Markets Inputs Inputs (Level 1) (Level 2) (Level 3) Total Assets Cash equivalents $ 22,873 $ - $ - $ 22,873 Government securities 35,326 - - 35,326 Total $ 58,199 $ - $ - $ 58,199 Liabilities Foreign currency forward contracts $ - $ 319 $ - $ 319 Total $ - $ 319 $ - $ 319 As of December 31, 2015 Quoted Prices Significant Significant in Active Observable Unobservable Markets Inputs Inputs (Level 1) (Level 2) (Level 3) Total Assets Cash equivalents $ 39,233 $ - $ - $ 39,233 Government securities 25,232 - - 25,232 Total $ 64,465 $ - $ - $ 64,465 Liabilities Foreign currency forward contracts $ - $ 537 $ - $ 537 Total $ - $ 537 $ - $ 537 As of March 31, 2016 and December 31, 2015, the Company’s cash equivalents consist principally of money market funds and government debt securities with original maturities of 90 days or less. Government securities consist principally of government debt securities and money market funds which are classified as available-for-sale. Corporate bonds consist of bonds issued by highly-rated corporate entities which are classified as available-for-sale. Forward foreign currency contracts consist of contracts with credit-worthy financial institutions to buy Swiss Francs with U.S. dollars in the future at agreed upon exchange rates. Forward foreign currency contracts are stated at fair value and consist of Level 2 financial instruments in the fair value hierarchy. The Company determines the fair value of its forward foreign currency contracts based on pricing from a service provider. The service provider values the instruments based on market prices from a variety of industry-standard independent data providers. Such market prices are based on inputs other than quoted prices included within Level 1 that are observable for the asset, either directly or indirectly (Level 2 inputs). Cash equivalents and government securities are stated at fair value and consist of Level 1 financial instruments in the fair value hierarchy . Available-for-sale securities at March 31, 2016 and December 31, 2015 consist of the following (in thousands): Amortized Cost Unrealized Gains Unrealized Losses Fair Value March 31, 2016 Government securities (Due within 1 year) $ 35,314 $ 13 $ (1 ) $ 35,326 $ 35,314 $ 13 $ (1 ) $ 35,326 December 31, 2015 Government securities (Due within 1 year) $ 25,243 $ 1 $ (12 ) $ 25,232 $ 25,243 $ 1 $ (12 ) $ 25,232

Note 4 - Derivative Financial I

Note 4 - Derivative Financial Instruments	3 Months Ended
	Mar. 31, 2016
Notes to Financial Statements
Derivative Instruments and Hedging Activities Disclosure [Text Block]	4. Derivative Financial Instruments The Company enters into forward foreign currency contracts to mitigate its exposure to fluctuations in the U.S dollar value of forecasted transactions denominated in Swiss Franc. During the three months ended March 31, 2016, the Company had forward foreign currency contract activity for which it did not elect hedge accounting for the forward foreign currency contracts outstanding as of March 31, 2016, but may elect to apply hedge accounting in the future. As a result, during the three months ended March 31, 2016, the Company experienced unrealized gains within other expense in the consolidated statements of operations from the mark-to-market of outstanding forward foreign currency contracts. The Company expects potential volatility within other income (expense) in future periods for contracts for which the Company does not apply hedge accounting. As of March 31, 2016, the Company had the following outstanding forward foreign currency contracts that were not designated for hedge accounting and that were used to reduce the exposure to fluctuations in the U.S dollar value of forecasted transactions denominated in Swiss Franc (dollars in thousands): Notional Amount Effective Date Maturity Date Number of Instruments $5,281 June 12, 2015 Various dates through December 15, 2016 3 No forward foreign currency contracts were held by the Company prior to May 2015. The table below presents the fair value of the Company’s derivative financial instruments as well as their classification on the balance sheet as of March 31, 2016 (in thousands): Balance Sheet line item Gross amounts of recognized liabilities Gross amount offset in consolidated balance sheet Net Amount Forward foreign currency contracts Other current liabilities $ 319 $ - $ 319

Note 5 - Commitments and Contin

Note 5 - Commitments and Contingencies	3 Months Ended
	Mar. 31, 2016
Notes to Financial Statements
Commitments and Contingencies Disclosure [Text Block]	5. Commitments and Contingencies In July 2015, the Company entered into a manufacturing services agreement with Lonza Ltd for the processing, development and manufacture of the active pharmaceutical ingredient (“API”) in its lead product candidate, vonapanitase. Under the agreement, the Company will execute purchase orders authorizing Lonza to manufacture API batches and will pay for the services and batches in accordance with terms and assumptions in the agreement and to be set forth in a project plan. As of March 31, 2016, the Company has executed one purchase order for $1.9 million (originally denominated in Swiss Francs) for the manufacturing of one batch to commence in July 2016. Management expects to pay $0.3 million to Lonza in the second quarter of 2016 for Lonza’s acquisition of raw materials in connection with this purchase order. In addition, management has executed a purchase order for 7.6 million Swiss Francs, approximately $7.9 million at current exchange rates, for the manufacturing of four batches to commence in June 2017. Future minimum payments required under operating leases as of March 31, 2016 are summarized as follows (in thousands): Year Ending December 31: Amount 2016 $ 126 2017 168 2018 84 Total minimum lease payments $ 378 Rental expense for the three months ended March 31, 2016 and 2015 was $45,000 and $47,000, respectively. In addition to the base rent, the Company is also responsible for its share of operating expenses and real estate taxes, in accordance with the terms of the lease agreement. As of March 31, 2016, the Company has provided a security deposit in the amount of $14,000 to the lessor. At March 31, 2016 and December 31, 2015, the Company had $14,000 in an outstanding letter of credit to be used as collateral for leased premises. At March 31, 2016 and December 31, 2015, the Company pledged an aggregate of $14,000 to the bank as collateral for the letter of credit, which is included in long-term assets and both short-term deposits and long-term assets, respectively.

Note 6 - Stock-based Compensati

Note 6 - Stock-based Compensation	3 Months Ended
	Mar. 31, 2016
Notes to Financial Statements
Disclosure of Compensation Related Costs, Share-based Payments [Text Block]	6. Stock-based Compensation Options Weighted-Average Exercise Price Weighted-Average Remaining Contractual Term (years) Aggregate Outstanding at December 31, 2015 2,200,369 $ 8.52 7.8 $ 15,705 Granted 10,000 $ 6.68 Exercised (6,394 ) $ 1.92 Outstanding at March 31, 2016 2,203,975 $ 8.53 7.6 $ 4,445 Exercisable at March 31, 2016 939,661 $ 4.35 5.6 $ 3,657 Vested or expected to vest at March 31, 2016 (1) 2,021,309 $ 8.22 7.4 $ 4,355 ______________________ (1) Represents the number of vested options at March 31, 2016 plus the number of unvested options expected to vest based on the unvested options outstanding at March 31, 2016. The Company has the following shares reserved for future issuance: March 31, December 31, 2016 2015 Stock-based compensation awards 3,073,567 2,419,901 Employee Stock Purchase Plan 297,359 297,359 Total 3,370,926 2,717,260

Note 7 - Income Taxes

Note 7 - Income Taxes	3 Months Ended
	Mar. 31, 2016
Notes to Financial Statements
Income Tax Disclosure [Text Block]	7. Income Taxes Deferred taxes are recognized for temporary differences between the basis of assets and liabilities for financial statement and income tax purposes. The Company has evaluated the positive and negative evidence bearing upon the Company’s ability to realize the benefit of its deferred tax assets. Based on the Company’s history of operating losses, the Company has concluded that it is more likely than not that the benefit of its deferred tax assets will not be realized. Due to the uncertainty surrounding the realization of the favorable tax attributes in future tax returns, the Company has provided a full valuation allowance against its deferred tax assets. There were no significant income tax provisions or benefits for the three months ended March 31, 2016 and 2015.

Note 8 - Net Loss Per Share Att

Note 8 - Net Loss Per Share Attributable to Common Stockholders	3 Months Ended
	Mar. 31, 2016
Notes to Financial Statements
Earnings Per Share [Text Block]	8. Net Loss per Share Attributable to Common Stockholders The Company computes basic and diluted loss per share using a methodology that gives effect to the impact of outstanding participating securities (the “two-class method”). As the three months ended March 31, 2016 and 2015 resulted in net losses, there is no income allocation required under the two-class method or dilution attributed to weighted-average shares outstanding in the calculation of diluted loss per share. The following Common Stock equivalents, presented on an as converted basis, were excluded from the calculation of net loss per share for the periods presented, due to their anti-dilutive effect: Three Months Ended March 31, 2016 2015 Outstanding stock options 2,203,975 1,635,219 Outstanding ESPP shares 8,841 2,859 2,212,816 1,638,078

Note 9 - Subsequent Events

Note 9 - Subsequent Events	3 Months Ended
	Mar. 31, 2016
Notes to Financial Statements
Subsequent Events [Text Block]	9. Subsequent Events The Company has evaluated all activity that occurred subsequent to quarter end but prior to issuance of the condensed consolidated financial statements for events or transactions that could require disclosure or that could impact the carrying value of assets or liabilities as of the balance sheet date. On April 20, 2016, the Company formed a wholly-owned holding company in Delaware, Proteon International Holdings, Inc. (“Proteon International”). On May 4, 2016, Proteon International formed a wholly-owned holding company in Bermuda, (Proteon Bermuda Limited) (“Proteon Bermuda”).

Significant Accounting Policies

Significant Accounting Policies (Policies)	3 Months Ended
	Mar. 31, 2016
Accounting Policies [Abstract]
Basis of Accounting, Policy [Policy Text Block]	Basis of Presentation, Principles of Consolidation and Use of Estimates The unaudited interim condensed consolidated financial statements have been prepared on the same basis as the audited financial statements. In the opinion of the Company’s management, the accompanying unaudited interim condensed consolidated financial statements contain all adjustments which are necessary to fairly present the Company’s financial position as of March 31, 2016, the results of its operations for the three months ended March 31, 2016 and 2015 and its cash flows for the three months ended March 31, 2016 and 2015. Such adjustments are of a normal and recurring nature. The results for the three months ended March 31, 2016 are not necessarily indicative of the results for the year ending December 31, 2016, or for any future period. The unaudited interim condensed consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries, Proteon Therapeutics Limited and Proteon Securities Corp. All intercompany balances and transactions have been eliminated in consolidation. These condensed consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”). Any reference in these notes to applicable guidance is meant to refer to the authoritative United States generally accepted accounting principles as found in the Accounting Standards Codification (“ASC”) and Accounting Standards Update (“ASU”) of the Financial Accounting Standards Board (“FASB”). The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. On an ongoing basis, the Company’s management evaluates its estimates, which include, but are not limited to, estimates related to convertible notes, stock-based compensation expense, clinical trial accruals and reported amounts of revenues and expenses during the reported period. The Company bases its estimates on historical experience and other market-specific or other relevant assumptions that it believes to be reasonable under the circumstances. Actual results may differ from those estimates or assumptions.
Fair Value Measurement, Policy [Policy Text Block]	Fair Value of Financial Instruments The Company’s financial instruments consist of cash and cash equivalents, available-for-sale investments, forward foreign currency contracts (see Note 4), accounts payable, and accrued liabilities. The Company is required to disclose information on all assets and liabilities reported at fair value that enables an assessment of the inputs used in determining the reported fair values. FASB ASC Topic 820, Fair Value Measurement and Disclosures · Level 1—Valuations based on unadjusted quoted prices in active markets for identical assets or liabilities that the Company has the ability to access at the measurement date. · Level 2—Valuations based on quoted prices for similar assets or liabilities in markets that are not active or for which all significant inputs are observable, either directly or indirectly. · Level 3—Valuations that require inputs that reflect the Company’s own assumptions that are both significant to the fair value measurement and unobservable. To the extent that valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment. Accordingly, the degree of judgment exercised by the Company in determining fair value is greatest for instruments categorized in Level 3. A financial instrument’s level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. Financial instruments measured at fair value on a recurring basis include cash equivalents, short-term investments and forward foreign currency contracts (see Note 4). There have been no changes to the valuation methods utilized by the Company during the three months ended March 31, 2016 and 2015. The Company evaluates transfers between levels at the end of each reporting period. There were no transfers of financial instruments between levels during the three months ended March 31, 2016 and 2015.
Derivatives, Policy [Policy Text Block]	Derivative Financial Instruments The Company enters into forward foreign currency contracts to mitigate its exposure to fluctuations in the exchange rates between the Swiss Franc and the U.S. dollar (see Note 4). The Company records these derivative financial instruments on the consolidated balance sheets at fair value. Although these derivative contracts are intended to economically hedge foreign exchange risk, the Company has not elected to apply hedge accounting. As such, changes in the fair value of these instruments are recorded directly in earnings as a component of other income (expense), as they occur. The Company executes its derivative instruments with financial institutions that the Company judges to be credit-worthy, defined as institutions that hold an investment-grade credit rating.
New Accounting Pronouncements, Policy [Policy Text Block]	Recent Accounting Pronouncements In May 2014, the FASB issued ASU 2014-09, “Revenue from Contracts with Customers” In August 2014, the FASB issued ASU 2014-15, “Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern” In November 2015, the FASB issued ASU No. 2015-17, Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes There have been no other material changes to the significant accounting policies previously disclosed in the Company’s Annual Report on Form 10-K, as filed with the SEC on March 14, 2016.

Note 3 - Fair Value Measureme16

Note 3 - Fair Value Measurements (Tables)	3 Months Ended
	Mar. 31, 2016
Notes Tables
Fair Value, Assets Measured on Recurring Basis [Table Text Block]	As of March 31, 2016 Quoted Prices Significant Significant in Active Observable Unobservable Markets Inputs Inputs (Level 1) (Level 2) (Level 3) Total Assets Cash equivalents $ 22,873 $ - $ - $ 22,873 Government securities 35,326 - - 35,326 Total $ 58,199 $ - $ - $ 58,199 Liabilities Foreign currency forward contracts $ - $ 319 $ - $ 319 Total $ - $ 319 $ - $ 319 As of December 31, 2015 Quoted Prices Significant Significant in Active Observable Unobservable Markets Inputs Inputs (Level 1) (Level 2) (Level 3) Total Assets Cash equivalents $ 39,233 $ - $ - $ 39,233 Government securities 25,232 - - 25,232 Total $ 64,465 $ - $ - $ 64,465 Liabilities Foreign currency forward contracts $ - $ 537 $ - $ 537 Total $ - $ 537 $ - $ 537
Available-for-sale Securities [Table Text Block]	Amortized Cost Unrealized Gains Unrealized Losses Fair Value March 31, 2016 Government securities (Due within 1 year) $ 35,314 $ 13 $ (1 ) $ 35,326 $ 35,314 $ 13 $ (1 ) $ 35,326 December 31, 2015 Government securities (Due within 1 year) $ 25,243 $ 1 $ (12 ) $ 25,232 $ 25,243 $ 1 $ (12 ) $ 25,232

Note 4 - Derivative Financial17

Note 4 - Derivative Financial Instruments (Tables)	3 Months Ended
	Mar. 31, 2016
Notes Tables
Schedule of Derivative Instruments [Table Text Block]	Notional Amount Effective Date Maturity Date Number of Instruments $5,281 June 12, 2015 Various dates through December 15, 2016 3
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value [Table Text Block]	Balance Sheet line item Gross amounts of recognized liabilities Gross amount offset in consolidated balance sheet Net Amount Forward foreign currency contracts Other current liabilities $ 319 $ - $ 319

Note 5 - Commitments and Cont18

Note 5 - Commitments and Contingencies (Tables)	3 Months Ended
	Mar. 31, 2016
Notes Tables
Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block]	Year Ending December 31: Amount 2016 $ 126 2017 168 2018 84 Total minimum lease payments $ 378

Note 6 - Stock-based Compensa19

Note 6 - Stock-based Compensation (Tables)	3 Months Ended
	Mar. 31, 2016
Notes Tables
Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block]	Options Weighted-Average Exercise Price Weighted-Average Remaining Contractual Term (years) Aggregate Outstanding at December 31, 2015 2,200,369 $ 8.52 7.8 $ 15,705 Granted 10,000 $ 6.68 Exercised (6,394 ) $ 1.92 Outstanding at March 31, 2016 2,203,975 $ 8.53 7.6 $ 4,445 Exercisable at March 31, 2016 939,661 $ 4.35 5.6 $ 3,657 Vested or expected to vest at March 31, 2016 (1) 2,021,309 $ 8.22 7.4 $ 4,355
Common Stock Reserved for Future Issuance [Table Text Block]	March 31, December 31, 2016 2015 Stock-based compensation awards 3,073,567 2,419,901 Employee Stock Purchase Plan 297,359 297,359 Total 3,370,926 2,717,260

Note 8 - Net Loss Per Share A20

Note 8 - Net Loss Per Share Attributable to Common Stockholders (Tables)	3 Months Ended
	Mar. 31, 2016
Notes Tables
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share [Table Text Block]	Three Months Ended March 31, 2016 2015 Outstanding stock options 2,203,975 1,635,219 Outstanding ESPP shares 8,841 2,859 2,212,816 1,638,078

Note 1 - Organization and Ope21

Note 1 - Organization and Operations (Details Textual) - USD ($)	Mar. 31, 2016	Dec. 31, 2015
Cash, Cash Equivalents, and Short-term Investments	$ 59,400,000
Retained Earnings (Accumulated Deficit)	$ (137,803,000)	$ (131,251,000)

Note 3 - Summary of Assets and

Note 3 - Summary of Assets and Liabilities Measured at Fair Value (Details) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Fair Value, Inputs, Level 1 [Member] | Cash and Cash Equivalents [Member]
Financial Assets	$ 22,873	$ 39,233
Fair Value, Inputs, Level 1 [Member] | US Government Agencies Debt Securities [Member]
Financial Assets	$ 35,326	$ 25,232
Fair Value, Inputs, Level 1 [Member] | Foreign Currency Forward Contracts [Member]
Financial Liabilities
Fair Value, Inputs, Level 1 [Member]
Financial Assets	$ 58,199	$ 64,465
Financial Liabilities
Fair Value, Inputs, Level 2 [Member] | Cash and Cash Equivalents [Member]
Financial Assets
Fair Value, Inputs, Level 2 [Member] | US Government Agencies Debt Securities [Member]
Financial Assets
Fair Value, Inputs, Level 2 [Member] | Foreign Currency Forward Contracts [Member]
Financial Liabilities	$ 319	$ 537
Fair Value, Inputs, Level 2 [Member]
Financial Assets
Financial Liabilities	$ 319	$ 537
Fair Value, Inputs, Level 3 [Member] | Cash and Cash Equivalents [Member]
Financial Assets
Fair Value, Inputs, Level 3 [Member] | US Government Agencies Debt Securities [Member]
Financial Assets
Fair Value, Inputs, Level 3 [Member] | Foreign Currency Forward Contracts [Member]
Financial Liabilities
Fair Value, Inputs, Level 3 [Member]
Financial Assets
Financial Liabilities
Cash and Cash Equivalents [Member]
Financial Assets	$ 22,873	$ 39,233
US Government Agencies Debt Securities [Member]
Financial Assets	35,326	25,232
Foreign Currency Forward Contracts [Member]
Financial Liabilities	319	537
Financial Assets	58,199	64,465
Financial Liabilities	$ 319	$ 537

Note 3 - Available-for-sale Sec

Note 3 - Available-for-sale Securities (Details) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
US Government Agencies Debt Securities [Member]
Amortized Cost	$ 35,314	$ 25,243
Unrealized Gains	13	1
Unrealized Losses	(1)	(12)
Fair Value	35,326	25,232
Amortized Cost	35,314	25,243
Unrealized Gains	13	1
Unrealized Losses	(1)	(12)
Fair Value	$ 35,326	$ 25,232

Note 4 - Outstanding Forward Fo

Note 4 - Outstanding Forward Foreign Currency Contracts (Details) - Not Designated as Hedging Instrument [Member] - Foreign Exchange Forward [Member] $ in Thousands	Mar. 31, 2016USD ($)
Notional Amount	$ 5,281
Derivative, Number of Instruments Held	3

Note 4 - Fair Value of Derivati

Note 4 - Fair Value of Derivative Instruments (Details) - Foreign Exchange Forward [Member] - Other Current Liabilities [Member] $ in Thousands	Mar. 31, 2016USD ($)
Gross amounts of recognized liabilities	$ 319
Net Amount	$ 319

Note 5 - Commitments and Cont26

Note 5 - Commitments and Contingencies (Details Textual) SFr in Millions	3 Months Ended
	Jun. 30, 2016USD ($)	Mar. 31, 2016USD ($)	Mar. 31, 2015USD ($)	Mar. 31, 2016CHF (SFr)	Mar. 31, 2016USD ($)	Dec. 31, 2015USD ($)
Inventories [Member] | Scenario, Forecast [Member]
Long-term Purchase Commitment, Expected Payment	$ 300,000
Inventories [Member]
Purchase Commitment, Amount Executed					$ 1,900,000
Inventories, Four Batches [Member]
Purchase Commitment, Amount Executed				SFr 7.6	7,900,000
Operating Leases, Rent Expense		$ 45,000	$ 47,000
Letters of Credit Outstanding, Amount					14,000	$ 14,000
Security Deposit					14,000
Loans Pledged as Collateral					$ 14,000	$ 14,000

Note 5 - Future Minimum Payment

Note 5 - Future Minimum Payments Operating Leases (Details) $ in Thousands	Mar. 31, 2016USD ($)
2,016	$ 126
2,017	168
2,018	84
Total minimum lease payments	$ 378

Note 6 - Stock Option Activity

Note 6 - Stock Option Activity for Employees and Non-employees (Details) - USD ($) $ / shares in Units, $ in Thousands		3 Months Ended	12 Months Ended
		Mar. 31, 2016	Dec. 31, 2015
Options Outstanding, Beginning Balance (in shares)		2,200,369
Options Outstanding, Weighted Average Exercise Price, Beginning Balance (in dollars per share)		$ 8.52
Options Outstanding, Weighted-average Remaining Contractual Term, Beginning Balance		7 years 219 days	7 years 292 days
Options Outstanding, Aggregate Intrinsic Value, Beginning Balance		$ 15,705
Options Granted (in shares)		10,000
Options Granted, Weighted Average Exercise Price (in dollars per share)		$ 6.68
Options Exercised (in shares)		(6,394)
Options Exercised, Weighted Average Exercise Price (in dollars per share)		$ 1.92
Options Outstanding, Ending Balance (in shares)		2,203,975	2,200,369
Options Outstanding, Weighted Average Exercise Price, Ending Balance (in dollars per share)		$ 8.53	$ 8.52
Options Outstanding, Aggregate Intrinsic Value, Ending Balance		$ 4,445	$ 15,705
Options Exercisable (in shares)		939,661
Options Exercisable, Weighted Average Exercise Price (in dollars per share)		$ 4.35
Options Exercisable, Weighted-average Remaining Contractual Term		5 years 219 days
Options Exercisable, Aggregate Intrinsic Value		$ 3,657
Options Vested or Expected to Vest (in shares)	[1]	2,021,309
Options Vested or Expected to Vest, Weighted Average Exercise Price (in dollars per share)	[1]	$ 8.22
Options Vested or Expected to Vest, Weighted-average Remaining Contractual Term	[1]	7 years 146 days
Options Vested or Expected to Vest, Aggregate Intrinsic Value	[1]	$ 4,355
[1]	Represents the number of vested options at March 31, 2016 plus the number of unvested options expected to vest based on the unvested options outstanding at March 31, 2016.

Note 6 - Common Stock Reserved

Note 6 - Common Stock Reserved for Future Issuance (Details) - shares	Mar. 31, 2016	Dec. 31, 2015
Performance Shares [Member]
Reserved for future issuance (in shares)	3,073,567	2,419,901
The 2014 Employee Stock Purchase Plan [Member]
Reserved for future issuance (in shares)	297,359	297,359
Reserved for future issuance (in shares)	3,370,926	2,717,260

Note 7 - Income Taxes (Details

Note 7 - Income Taxes (Details Textual) - USD ($)	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Income Tax Expense (Benefit)	$ 0	$ 0

Note 8 - Common Stock Equivalen

Note 8 - Common Stock Equivalents Excluded from Calculation of Net Loss Per Share (Details) - shares	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Employee Stock Option [Member]
Antidilutive Securities (in shares)	2,203,975	1,635,219
Outstanding ESPP Shares [Member]
Antidilutive Securities (in shares)	8,841	2,859
Antidilutive Securities (in shares)	2,212,816	1,638,078