Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Mar. 10, 2017 | Jun. 30, 2016 | |
Document And Entity Information | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2016 | ||
Document Fiscal Year Focus | 2,016 | ||
Document Fiscal Period Focus | FY | ||
Entity Registrant Name | Invuity, Inc. | ||
Entity Central Index Key | 1,393,020 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Public Float | $ 103,909,545 | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 16,969,285 |
Balance Sheets
Balance Sheets - USD ($) | Dec. 31, 2016 | Dec. 31, 2015 |
Current assets: | ||
Cash and cash equivalents | $ 28,300,000 | $ 46,296,000 |
Short-term investments | 10,737,000 | 0 |
Restricted cash - current | 181,000 | |
Accounts receivable, net | 5,782,000 | 3,619,000 |
Inventory | 5,052,000 | 5,182,000 |
Prepaid expenses and other current assets | 1,088,000 | 923,000 |
Total current assets | 51,140,000 | 56,020,000 |
Restricted Cash | 909,000 | 1,090,000 |
Property and equipment, net | 8,286,000 | 9,195,000 |
Total assets | 60,335,000 | 66,305,000 |
Current liabilities: | ||
Accounts payable | 2,192,000 | 2,458,000 |
Accrued and other current liabilities | 6,351,000 | 4,214,000 |
Short-term debt - related party | 1,362,000 | |
Total current liabilities | 9,905,000 | 6,672,000 |
Deferred rent | 2,721,000 | 2,810,000 |
Long-term debt - related party | 13,261,000 | 14,480,000 |
Total liabilities | 25,887,000 | 23,962,000 |
Commitments and contingencies (Note 7) | ||
Stockholders' equity : | ||
Preferred stock, $0.001 par value - 10,000,000 shares authorized at December 31, 2016 and December 31, 2015, respectively; no shares issued and outstanding at December 31, 2016 and December 31, 2015 | ||
Common stock, $0.001 par value - 100,000,000 shares authorized at December 31, 2016 and December 31, 2015 respectively; 16,950,940 and 13,392,358 shares issued and outstanding at December 31, 2016 and December 31, 2015, respectively | 17,000 | 13,000 |
Additional paid-in capital | 180,647,000 | 147,937,000 |
Accumulated deficit | (146,216,000) | (105,607,000) |
Total stockholders' equity | 34,448,000 | 42,343,000 |
Total liabilities and stockholders' equity | $ 60,335,000 | $ 66,305,000 |
Balance Sheets (Parenthetical)
Balance Sheets (Parenthetical) - $ / shares | Dec. 31, 2016 | Dec. 31, 2015 |
Balance Sheets | ||
Preferred stock, par value | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, shares issued | 16,950,940 | 13,392,358 |
Common stock, shares outstanding | 16,950,940 | 13,392,358 |
Statements of Operations and Co
Statements of Operations and Comprehensive Loss - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Statements of Operations and Comprehensive Loss | |||
Revenue | $ 32,461 | $ 21,031 | $ 13,103 |
Cost of goods sold | 8,824 | 7,733 | 4,630 |
Gross profit | 23,637 | 13,298 | 8,473 |
Operating expenses: | |||
Research and development | 9,908 | 7,869 | 5,181 |
Selling, general and administrative | 52,409 | 40,636 | 23,044 |
Total operating expenses | 62,317 | 48,505 | 28,225 |
Loss from operations | (38,680) | (35,207) | (19,752) |
Interest expense | (2,018) | (1,881) | (1,402) |
Interest and other income (expense), net | 89 | (482) | 492 |
Net loss and comprehensive loss | $ (40,609) | $ (37,570) | $ (20,662) |
Net loss per common share, basic and diluted | $ (2.73) | $ (4.94) | $ (31.63) |
Weighted-average shares used to compute net loss per common share, basic and diluted | 14,868,501 | 7,606,172 | 653,195 |
Statements of Convertible Prefe
Statements of Convertible Preferred Stock and Stockholders' Equity (Deficit) - USD ($) | Common Stock [Member] | Additional Paid-In Capital [Member] | Accumulated Deficit [Member] | Convertible Preferred Stock [Member] | Total |
Beginning balance at Dec. 31, 2013 | $ 1,000 | $ 1,468,000 | $ (47,375,000) | $ (45,906,000) | |
Beginning balance at Dec. 31, 2013 | $ 52,949,000 | ||||
Beginning balance, shares at Dec. 31, 2013 | 656,184 | ||||
Beginning balance, shares at Dec. 31, 2013 | 4,458,589 | ||||
Issuance of convertible preferred stock, net of issuance costs | $ 20,806,000 | ||||
Issuance of convertible preferred stock, net of issuance costs, shares | 1,597,814 | ||||
Exercise of common stock options | 78,000 | 78,000 | |||
Exercise of common stock options, shares | 55,065 | ||||
Stock-based compensation expense | $ 663,000 | 663,000 | |||
Net loss | $ (20,662,000) | (20,662,000) | |||
Ending balance at Dec. 31, 2014 | $ 711,249 | (65,827,000) | |||
Ending balance at Dec. 31, 2014 | $ 73,755,000 | ||||
Ending balance, shares at Dec. 31, 2014 | 1,000 | 2,209,000 | (68,037,000) | ||
Ending balance, shares at Dec. 31, 2014 | 6,056,403 | ||||
Issuance of convertible preferred stock, net of issuance costs | $ 22,769,000 | ||||
Issuance of convertible preferred stock, net of issuance costs, shares | 1,596,212 | ||||
Conversion of Convertible Preferred Stock upon IPO | $ 8,000 | $ 96,516,000 | $ (96,524,000) | 96,524,000 | |
Conversion of Convertible Preferred Stock upon IPO, shares | 7,979,332 | (7,652,615) | |||
Conversion of preferred stock warrants to common stock warrants | 608,000 | 608,000 | |||
Proceeds from issuance of common stock, net | $ 4,000 | 47,215,000 | 47,219,000 | ||
Proceeds from issuance of common stock, net, shares | 4,600,000 | ||||
Exercise of common stock options | $ 139,000 | $ 139,000 | |||
Exercise of common stock options, shares | 102,250 | 274,582 | |||
Repurchase of early exercised options | (473) | (1,000) | (1,000) | ||
Vesting of early exercise options | $ 2,000 | $ 2,000 | |||
Stock-based compensation expense | 1,249,000 | 1,249,000 | |||
Net loss | $ (37,570,000) | (37,570,000) | |||
Ending balance at Dec. 31, 2015 | $ 13,000 | 147,937,000 | (105,607,000) | $ 42,343,000 | |
Ending balance, shares at Dec. 31, 2015 | 13,392,358 | 13,392,358 | |||
Proceeds from issuance of common stock, net | $ 3,000 | 29,675,000 | $ 29,678,000 | ||
Proceeds from issuance of common stock, net, shares | 3,220,000 | ||||
Exercise of common stock options | $ 1,000 | 732,000 | 733,000 | ||
Exercise of common stock options, shares | 338,582 | ||||
Stock-based compensation expense | 2,303,000 | 2,303,000 | |||
Net loss | (40,609,000) | (40,609,000) | |||
Ending balance at Dec. 31, 2016 | $ 17,000 | $ 180,647,000 | $ (146,216,000) | $ 34,448,000 | |
Ending balance, shares at Dec. 31, 2016 | 16,950,940 | 16,950,940 |
Statements of Convertible Pref6
Statements of Convertible Preferred Stock and Stockholders' Equity (Deficit) (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Common Stock [Member] | |||
Net of stock issuance costs | $ 590 | $ 7,988 | |
Series E Convertible Preferred Stock [Member] | |||
Convertible preferred stock, par value | $ 13.3052 | ||
Net of stock issuance costs | $ 454 | ||
Series F Convertible Preferred Stock [Member] | |||
Convertible preferred stock, par value | $ 14.3449 | ||
Net of stock issuance costs | $ 128 |
Condensed Statements of Cash Fl
Condensed Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Cash flows from operating activities: | |||
Net loss | $ (40,609) | $ (37,570) | $ (20,662) |
Adjustments to reconcile net loss to net cash used in operating activities: | |||
Depreciation and amortization | 1,995 | 1,710 | 344 |
Stock-based compensation | 2,303 | 1,249 | 663 |
Changes in fair value of convertible preferred stock warrant liability | 472 | (522) | |
Provision for doubtful accounts | 136 | 216 | 87 |
Noncash interest expense | 143 | 143 | 90 |
Accretion of premium on marketable securities | 9 | 243 | |
Changes in operating assets and liabilities: | |||
Accounts receivable | (2,300) | (1,033) | (1,384) |
Inventory | 130 | (911) | (786) |
Prepaid expenses and other assets | (165) | 1,568 | (1,923) |
Other non-current assets | (55) | ||
Accounts payable | (284) | 1,349 | 143 |
Accrued and other current liabilities | 2,107 | 1,537 | 1,034 |
Deferred rent | (89) | 105 | 2,910 |
Net cash used in operating activities | (36,624) | (31,165) | (19,818) |
Cash flows from investing activities: | |||
Purchases of property and equipment | (1,037) | (3,748) | (6,791) |
Purchases of marketable securities | 10,746 | 17,510 | |
Sales of marketable securities | 17,270 | ||
Maturities of marketable securities | 850 | ||
Change in restricted cash | 35 | (1,090) | |
Net cash used in investing activities | (11,783) | (3,713) | (7,271) |
Cash flows from financing activities: | |||
Proceeds from issuance of common stock upon initial public offering, net of issuance costs | 47,219 | ||
Proceeds from financing offering, net of offering costs | 29,678 | ||
Proceeds from issuance of long-term debt -related party, net of issuance costs | 5,000 | 9,800 | |
Proceeds from issuance of common stock upon exercise of stock options | 733 | 139 | 78 |
Repayments of long-term debt | (2,500) | ||
Payments to repurchase early exercised common stock | (1) | ||
Proceeds from issuance of convertible preferred stock, net of issuance costs | 22,769 | 20,806 | |
Net cash provided by financing activities | 30,411 | 75,126 | 28,184 |
Net increase (decrease) in cash and cash equivalents | (17,996) | 40,248 | 1,095 |
Cash and cash equivalents, beginning of period | 46,296 | 6,048 | 4,953 |
Cash and cash equivalents, end of period | 28,300 | 46,296 | 6,048 |
Supplemental disclosures of cash flow information: | |||
Interest paid | 275 | ||
Interest paid to related party | 1,875 | 1,740 | 1,052 |
Non-cash investing and financing activities: | |||
Purchases of property and equipment in accounts payable and accrued liabilities at period end | $ 48 | 78 | 1,462 |
Offering issuance costs in accounts payable at period end | $ 30 | ||
Reclassification of convertible preferred stock warrant liability to additional paid-in capital upon conversion of preferred stock warrants into common stock warrants | 608 | ||
Conversion of convertible preferred stock into common stock and additional paid in capital | $ 96,524 |
Organization and Description of
Organization and Description of Business | 12 Months Ended |
Dec. 31, 2016 | |
Organization and Description of Business | |
Organization and Description of Business | INVUITY, INC. Notes to Financial Statements 1. Invuity, Inc. (the “Company”), was incorporated in the state of California on November 29, 2004 and reincorporated in Delaware in May 2015. The Company is a commercial-stage medical technology company which utilizes its proprietary Intelligent Photonics technology to develop single-use and reusable illuminated surgical devices, which provide surgeons with illumination and direct visualization of surgical cavities during open and minimal access procedures. The Company’s facilities are located in San Francisco, California. Reverse Stock Split In May 2015, the Company’s board of directors and its stockholders approved an amendment to the Company’s amended and restated articles of incorporation to effect a reverse split of shares of the Company’s common stock on a 1-for-18.5 basis (the “Reverse Stock Split”). All authorized, issued and outstanding shares of common stock, convertible preferred stock, warrants for common stock and preferred stock, options to purchase common stock and the related per share amounts contained in the financial statements have been retroactively adjusted to reflect this Reverse Stock Split for all periods presented. The Reverse Stock Split was effected on May 27, 2015. Initial Public Offering In June 2015, the Company completed an initial public offering (the “IPO”) of its common stock. In connection with its IPO, the Company sold 4,600,000 shares of common stock at $12.00 per share for aggregate net proceeds of $47.2 million after underwriting discounts and commissions and offering costs incurred by the Company. These amounts include the exercise in full by the underwriters of their option to purchase up to 600,000 additional shares of common stock at the same price to cover over-allotments. Upon the closing of the IPO, all shares of convertible preferred stock then outstanding converted into 7,979,332 shares of common stock. Upon the effectiveness of the Amended and Restated Certificate of Incorporation of the Company on June 18, 2015, the number of shares of capital stock the Company is authorized to issue was increased to 110,000,000 shares, of which 100,000,000 shares are common stock and 10,000,000 shares are preferred stock. Both the common stock and preferred stock have a par value of $0.001 per share. There are no shares of preferred stock outstanding at December 31, 2016. Liquidity The Company has incurred net losses from operations since inception and has an accumulated deficit of $146.2 million as of December 31, 2016. The Company expects to incur additional losses and negative cash flows in the next twelve months as it seeks to continue to grow its business and transition to operating as a public company. Management believes that its cash and cash equivalents and short term investments at December 31, 2016 and additional funding, available under the credit and security agreement with MidCap Financial Trust (“MidCap”) will provide sufficient funds to enable the Company to meet its operating plan through at least the next twelve months. The agreement, as disclosed in Note 13, was signed on March 10, 2017 and provides for up to $30 million in term loans, which are repayable in monthly installments, commencing April 1, 2019. The first term loan of $20 million was drawn down on March 10, 2017 and is subject to a financial covenant, based on revenue levels, to be met over the term of the agreement. The second term loan can only be drawn down assuming the Company meets a certain revenue target in a 12 month period prior to December 31, 2018, which is not anticipated to occur in the next 12 months. The Company, as required by the agreement, repaid in full its outstanding loan with Health Care Royalty Partners on March 10, 2017. On July 1, 2016, the Company also filed a prospectus supplement for an at-the-market (“ATM”) program of up to $25 million. However, if the Company’s anticipated operating results are not achieved in future periods, additional debt or equity financing may need to be raised, or the Company may need to implement an approved plan to reduce planned expenditures. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2016 | |
Summary of Significant Accounting Policies | |
Summary of Significant Accounting Policies | 2. Basis of Presentation These financial statements have been prepared in accordance with accounting principles generally accepted in the U.S. (U.S. GAAP). Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. On an ongoing basis, management evaluates its estimates, including those related to revenue recognition, fair value of assets and liabilities, inventory, income taxes, common stock, and stock-based compensation. Actual results could differ from those estimates and assumptions. Out-of-period and Other Adjustments In the twelve-months ended December 31, 2015, the Company recorded an out-of-period adjustment to reverse revenue that the Company had originally recorded in the fourth quarter of 2014 associated with sales to a distributor for military facilities. The correction of this error resulted in an increase to the Company’s net loss of $302,000 for the twelve months ended December 31, 2015 and a corresponding decrease to accounts receivable. The distributor returned the underlying inventory, and the Company terminated the relationship with the distributor involved, and started working with a new distributor for military accounts. In addition, d uring the twelve months ended December 31, 2015 , the Company recorded an out-of-period adjustment to increase the fair value of the convertible preferred stock warrant liability, which was incorrectly valued at December 31, 2014 due to an error in the expected term assumption. The correction of this error resulted in an increase to the Company’s net loss of $370,000 for the twelve months ended December 31, 2015 and a corresponding increase to the convertible preferred stock warrant liability. Management assessed the impact of these adjustments and did not believe the amounts were material to any prior period financial statements, and the impact of correcting these errors in the twelve months ended December 31, 2015 was not material to those financial statements. As a result, the Company did not restate any prior period amounts. Cash Equivalents Cash equivalents consist of short-term, highly liquid investments with original maturities of three months or less from the date of purchase. Cash equivalents consist primarily of amounts invested in money market funds. Restricted Cash Restricted cash represents a certificate of deposit held at a financial institution as collateral for the Company credit cards and a letter of credit related to the Company’s facility lease. Short-Term Investments All short-term investments are classified as “available-for-sale” and carried at estimated fair value as determined based upon quoted market prices or pricing models for similar securities. Management determines the appropriate classification of its investments in debt securities at the time of purchase and reevaluates such designation as of each balance sheet date. Unrealized gains and losses are excluded from earnings and are reported as a component of comprehensive loss. Realized gains and losses and declines in fair value judged to be other than temporary, if any, on available-for-sale securities are included in interest and other income (expense), net, respectively, and are derived using the specific identification method for determining the cost of securities sold. Interest on available-for-sale securities is included in interest and other income (expense), net. Unrealized gains and losses and realized gains and losses on sale of short-term investments were not material for the years ended December 31, 2016, 2015, and 2014. The Company did not hold any short-term investments as of either December 31, 2015 and had total short investments of $10.7 million as of December 31, 2016. Accounts Receivable Accounts receivable are recorded at the invoiced amount and do not bear interest. The Company generally does not require collateral or other security in support of accounts receivable. Allowances are provided for individual accounts receivable when the Company becomes aware of a customer’s inability to meet its financial obligations, such as in the case of bankruptcy, deterioration in the customer’s operating results or change in financial position. If circumstances related to customers change, estimates of the recoverability of receivables would be further adjusted. The Company also considers broad factors in evaluating the sufficiency of its allowance for doubtful accounts, including the length of time receivables are past due, significant one-time events, creditworthiness of customers and historical experience. Account balances are charged off against the allowance after all means of collection have been exhausted and the potential for recovery is considered remote. The allowance for doubtful accounts balance was $300,000 and $158,000 as of December 31, 2016 and 2015, respectively. The Company has written off $6,000, $165,000 and $0 as uncollectible accounts receivables to the allowance for doubtful accounts during the twelve months ended December 31, 2016, 2015, and 2014, respectively. Fair Value of Financial Instruments Carrying amounts of the Company’s financial instruments, including cash equivalents, short-term investments, accounts receivable, and accounts payable approximate fair value due to their relatively short maturities. As of December 31, 2016 and 2015, based on Level 2 inputs and the borrowing rates available to the Company for loans with similar terms and consideration of the Company’s credit risk, the carrying value of the Company’s related party debt approximates its fair value. Concentrations of Credit Risk Financial instruments that potentially subject the Company to concentrations of credit risk at December 31, 2016 and 2015 consist primarily of cash, which is held primarily by one domestic financial institution and exceeds federally insured limits, and cash equivalents. The Company manages its liquidity risk by investing in a variety of money market funds and corporate debt. This diversification of investments is consistent with the Company’s policy to maintain liquidity and ensure the ability to collect principal. All investments are made pursuant to corporate investment policy guidelines which restrict investments to issuers evaluated as creditworthy. Significant customers are those which represent 10% or more of the Company’s total revenue for each period presented in the statements of operations and comprehensive loss or 10% or more of the Company’s net accounts receivable balance at each respective balance sheet date. As of and for the twelve months ended December 31, 2016 and 2015, the Company had no customers that represented 10% or more of its revenue or accounts receivable balances. There was one customer that represented 12% of total revenue for the twelve months ended December 31, 2014. Inventory Inventories are stated at the lower of cost or market (estimated net realizable value). Cost is determined using the standard cost method, which approximates the first-in, first out basis. The Company periodically assesses the recoverability of all inventories, including raw materials and finished goods, to determine whether adjustments to the carrying value are required. Inventory that is obsolete or in excess of forecasted usage is written down to its estimated net realizable value based on assumptions about future demand and market conditions. Inventory write-downs are charged to cost of goods. Property and Equipment Property and equipment are stated at cost, less accumulated depreciation and amortization. Depreciation is provided using the straight-line method over the estimated useful lives of the respective assets. The estimated useful lives of the Company’s assets are as follows: Laboratory equipment 3 years Leasehold improvements Shorter of lease term or estimated life of the assets Furniture and fixtures 3 years Computer equipment and software 2 to 3 years Manufacturing equipment 5 years Maintenance and repairs that do not extend the life or improve the asset are expensed when incurred. Impairment of Long-Lived Assets The Company reviews long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset (or asset group) may not be recoverable. An impairment loss is recognized when the total of estimated undiscounted future cash flows expected to result from the use of the asset and its eventual disposition is less than its carrying amount. Impairment, if any, would be assessed using discounted cash flows or other appropriate measures of fair value. The Company has not recorded impairment charges on long-lived assets for the periods presented in these financial statements. Convertible Preferred Stock Warrant Liability Freestanding warrants for shares that were contingently redeemable were classified as liabilities on the balance sheet at their estimated fair value because the shares underlying the warrants may obligate the Company to transfer assets to the holders at a future date under certain circumstances such as a deemed liquidation event. The warrants were subject to re-measurement at each balance sheet date and the change in fair value, if any, was recognized as interest and other income (expense), net in the statements of operations. The Company adjusted the liability for changes in fair value until the completion of its IPO, at which time all convertible preferred stock warrants were converted into warrants to purchase common stock and the liability was reclassified to additional paid-in capital. Other Comprehensive Income (Loss) Other comprehensive income (loss) represents all changes in stockholders’ equity except those resulting from distributions to stockholders. The Company’s unrealized loss on short-term available-for-sale securities represent the components of other comprehensive income (loss) that are excluded from the reported net loss and are presented in the statements of comprehensive loss. Revenue Recognition The Company’s revenue is generated from the sale of its products to hospitals and medical centers through direct sales representatives and independent sales agents. The Company recognizes revenue when all of the following criteria are met: · persuasive evidence of an arrangement exists; · the sales price is fixed or determinable; · collection of the relevant receivable is reasonably assured at the time of sale; and · delivery has occurred or services have been rendered. The Company recognizes revenue when title to the goods and risk of loss transfers to the customer, which is upon shipment of the product under the Company’s standard terms and conditions. Shipping and handling costs billed to the customer are recorded in revenue. Warranty Obligations The Company does not offer rights of return or price protection and has no post-delivery obligations other than its standard warranty which entitles the customer to return defective products for a period of one year after sale. The warranty liability was $50,000 as of December 31, 2016. Historical warranty costs have been insignificant. Medical Device Excise Tax In March 2010, the Affordable Care Act (the ACA) was signed into law which included a deductible 2.3% excise tax on any entity that manufactures or imports medical devices offered for sale in the United States, with limited exceptions, effective January 1, 2013. Subsequently, this excise tax was suspended effective January 1, 2016 through December 31, 2017. Research and Development The Company’s research and development costs are expensed as incurred. Research and development costs includes but are not limited to, payroll and personnel-related expenses, including stock-based compensation, laboratory supplies, consulting costs, and allocated facilities and information services costs. Income Taxes The Company accounts for income taxes under the asset and liability method, whereby deferred tax assets and liabilities are determined based on the difference between the financial statement and tax bases of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to affect taxable income. A valuation allowance is established when, in management’s estimate, it is more likely than not that the deferred tax asset will not be realized. The tax effects of the Company’s income tax positions are recognized only if they are more likely than not to be sustained based solely on the technical merits as of the reporting date. The Company considers many factors when evaluating and estimating its tax positions and benefits, which may require periodic adjustments and which may not accurately anticipate actual outcomes. Stock-based Compensation The Company measures its stock-based awards made to employees based on the estimated fair values of the awards as of the grant date using the Black-Scholes option-pricing model. Stock-based compensation expense is recognized over the requisite service period using the straight-line method and is based on the value of the portion of stock-based payment awards that is ultimately expected to vest. As such, the Company’s stock-based compensation is reduced for the estimated forfeitures at the date of grant and revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates. Stock-based compensation expense for options granted to non-employees as consideration for services received is measured on the date of performance at the fair value of the consideration received or the fair value of the equity instruments issued, using the Black-Scholes option-pricing model, whichever can be more reliably measured. Compensation expense for options granted to non-employees is periodically remeasured as the underlying options vest. Segment Reporting The Company manages its operations as a single operating segment for the purposes of assessing performance and making operating decisions. All of the Company’s assets are maintained in the United States. The Company derives its revenue from sales to customers in the United States, based upon the billing address of the customer. Net Loss per Common Share Basic net loss per common share is calculated by dividing the net loss by the weighted-average number of shares of common stock outstanding during the period, without consideration of potentially dilutive securities. Diluted net loss per common share is the same as basic net loss per common share since the effect of potentially dilutive securities are anti-dilutive. Shares subject to repurchase are excluded from the weighted-average shares. Recent Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers (Topic 606) , which supersedes the revenue recognition requirements in ASC 605, Revenue Recognition . This ASU is based on the principle that revenue is recognized to depict the transfer of goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The ASU also requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments and assets recognized from costs incurred to obtain or fulfill a contract. In August 2015, the FASB issued ASU No. 2015-14, Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date , which effectively delayed the adoption date by one year, to an effective date for public entities for annual and interim periods beginning after December 15, 2017. In March 2016, the FASB issued ASU No. 2016-08 , Revenue from Contracts with Customers (Topic 606): Principal Versus Agent Considerations (Reporting Revenue Gross Versus Net), to clarify certain aspects of the principal-versus-agent guidance in its new revenue recognition standard. In April 2016, the FASB issued ASU No. 2016-10 , Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing to clarify on how to identify the performance obligations and the licensing implementation guidance in its new revenue recognition standard. In May 2016, the FASB issued ASU No. 2016-12, Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients, to address certain issues identified by the Transition Resource Group, (the “TRG”) in the guidance on assessing collectability, presentation of sales tax, noncash consideration, and completed contracts and contracts modifications at transition. The Company plans to adopt this standard on January 1, 2018 and is in the process of determining the potential effects of this new guidance on its financial statements. In August 2014, the FASB issued ASU No. 2014-15, Disclosure of Uncertainties About an Entity’s Ability to Continue as a Going Concern . The new standard provides guidance around management’s responsibility to evaluate whether there is substantial doubt about an entity’s ability to continue as a going concern and to provide related footnote disclosures. The new standard is effective for the annual and interim periods ended after December 15, 2016. The Company has adopted this accounting standard, which is reflected in its liquidity disclosure. In July 2015, the FASB issued ASU No. 2015-11, Inventory (Topic 330): Simplifying the Measurement of Inventory , which permits companies to measure inventory at the lower of cost and realizable value. ASU No.2015-11 applies to all business entities and is effective for public business entities for annual periods, and interim periods within those annual periods, beginning after December 15, 2016. The Company currently plans to adopt this accounting standard in the first quarter of fiscal year 2017 and the standard is not expected to have a material impact on the Company’s financial statements. In January 2016, the FASB issued ASU No. 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities , which addresses certain aspects of recognition, measurement, presentation and disclosure of financial instruments. ASU No. 2016-01 is effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2017. The Company is in the process of evaluating the impact of the adoption of this new guidance on its financial statements. In February 2016, the FASB issued ASU No. 2016-02 – Leases (“ASC 842”), which sets out the principles for the recognition, measurement, presentation and disclosure of leases for both parties to a contract (i.e. lessees and lessors). The new standard requires lessees to apply a dual approach, classifying leases as either finance or operating leases based on the principle of whether or not the lease is effectively a financed purchase by the lessee. This classification will determine whether lease expense is recognized based on an effective interest method or on a straight line basis over the term of the lease, respectively. A lessee is also required to record a right-of-use asset and a lease liability for all leases with a term of greater than 12 months regardless of their classification. Leases with a term of 12 months or less will be accounted for similar to existing guidance for operating leases today. ASC 842 supersedes the previous leases standard, ASC 840 Leases. The standard is effective on January 1, 2019, with early adoption permitted. The Company is in the process of evaluating the impact of this new guidance on its financial statements. In March 2016, the FASB issued ASU No. 2016-09, Compensation-Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting. This update simplifies the accounting for employee share-based payment transactions, including the accounting for income taxes, forfeitures, and statutory tax withholding requirements, as well as classification in the statement of cash flows. ASU No. 2016-09 is effective for public entities for annual periods beginning after December 15, 2016. The Company currently plans to adopt this accounting standard in the first quarter of fiscal year 2017 and the standard is not expected to have a material impact on the Company’s financial statements. In June 2016, the FASB issued ASU No. 2016-13, Measurement of Credit Losses on Financial Statements. This update provides financial statement users with more decision-useful information about the expected credit losses on financial instruments and other commitments to extend credit held by a reporting entity at each reporting date. The update replaces the incurred loss impairment methodology in current GAAP with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. ASU No. 2016-13 is effective for public entities for annual periods beginning after December 15, 2019. The Company is in the process of evaluating the impact of this new guidance on its financial statements. In August 2016, the FASB issued ASU No. 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments (a consensus of the FASB Emerging Issues Task Force). The new guidance is intended to reduce diversity in practice in how certain transactions are classified in the statement of cash flows. This update addresses the following eight specific cash flow issues: debt prepayment or debt extinguishment costs; settlement of zero-coupon debt instruments or other debt instruments with coupon interest rates that are insignificant in relation to the effective interest rate of the borrowing; contingent consideration payments made after a business combination; proceeds from the settlement of insurance claims; proceeds from the settlement of corporate-owned life insurance policies (COLIs) (including bank-owned life insurance policies (BOLIs)); distributions received from equity method investees; beneficial interests in securitization transactions; and separately identifiable cash flows and application of the predominance principle. ASU No. 2016-15 is effective for public entities for annual periods beginning after December 15, 2017. The Company is in the process of evaluating the impact of this new guidance on its financial statements. In November 2016, the FASB issued ASU No. 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash. The amendments in this Update require that a statement of cash flows explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. Therefore, amounts generally described as restricted cash and restricted cash equivalents should be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. The amendments in this Update are effective for public business entities for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. The Company is in the process of evaluating the impact of this new guidance on its financial statements. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2016 | |
Fair Value Measurements | |
Fair Value Measurements | 3. The Company discloses and recognizes the fair value of its assets and liabilities using a hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (an exit price) in an orderly transaction between market participants at the reporting date. The hierarchy gives the highest priority to valuations based upon unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to valuations based upon unobservable inputs that are significant to the valuation (Level 3 measurements). The guidance establishes three levels of the fair value hierarchy as follows: Level 1 —Inputs are unadjusted quoted prices in active markets for identical assets or liabilities at the measurement date. Level 2 —Inputs (other than quoted market prices included in Level 1) are either directly or indirectly observable for the asset or liability through correlation with market data at the measurement date and for the duration of the instrument’s anticipated life. Level 3 —Inputs reflect management’s best estimate of what market participants would use in pricing the asset or liability at the measurement date. Consideration is given to the risk inherent in the valuation technique and the risk inherent in the inputs to the model. The Company’s financial instruments consist of Level 1 and 2 assets and Level 3 liabilities. Level 1 assets consist primarily of highly liquid money market funds that are included in cash, cash equivalents, and restricted cash. Commercial Paper and corporate debt securities are classified in Level 2 of the fair value hierarchy because these valuation inputs are observable or market-corroborated. Prior to the Company’s IPO, the Company had a convertible preferred stock warrant liability relating to certain prior year financings. See Note 8 for further discussion. Upon the IPO, in June 2015, all convertible preferred stock warrants were converted into common stock warrants and the company recorded expense of $136,000 relating to the change in fair value of this convertible preferred stock warrant. For the periods ended December 31, 2016 and December 31, 2015 respectively, the Company has no other Level 3 assets or liabilities. The following table sets forth the fair value of the Company’s financial assets and liabilities measured at fair value on a recurring basis based on the three-tier fair value hierarchy (in thousands): December 31, 2016 Level 1 Level 2 Level 3 Total Assets Money market funds $ $ — $ — $ Commercial Paper — — Corporate debt securities — — $ $ $ — $ December 31, 2015 Level 1 Level 2 Level 3 Total Assets Money market funds $ $ — $ — $ $ $ — $ — $ As of and for the twelve months ended December 31, 2016, the carrying value of the Company’s short term investments approximates its fair value. There were no short term investments held by the Company for the twelve months ended December 31, 2015 and no related unrecognized gains or losses. |
Balance Sheet Components
Balance Sheet Components | 12 Months Ended |
Dec. 31, 2016 | |
Balance Sheet Components | |
Balance Sheet Components | 4. Inventory Inventory consisted of the following (in thousands): December 31, 2016 2015 Raw materials $ $ Work-in-process Finished goods Total inventory $ $ Prepaid expenses and other current assets Prepaid expenses and other current assets consisted of the following (in thousands): December 31, 2016 2015 Prepaid expenses $ $ Other Total prepaid expenses and other current assets $ $ Property and Equipment, Net Property and equipment, net consisted of the following (in thousands): December 31, 2016 2015 Computer equipment and software $ $ Laboratory and manufacturing equipment Furniture and fixtures Leasehold improvements Total property and equipment, gross Less: accumulated depreciation and amortization Total property and equipment, net $ $ Depreciation and amortization expense was $2.0 million, $1.7 million, and $0.3 million during the years ended December 31, 2016, 2015, and 2014 respectively. Accrued and Other Current Liabilities Accrued and other current liabilities consisted of the following (in thousands): December 31, 2016 2015 Accrued payroll-related expenses $ $ Accrued independent sales agent commissions Accrued professional fees Deferred rent Other Total accrued and other current liabilities $ $ |
Related Party Loan Agreement
Related Party Loan Agreement | 12 Months Ended |
Dec. 31, 2016 | |
Related Party Loan Agreement | |
Related Party Loan Agreement | 5. In February 2014, the Company entered into a loan agreement with HealthCare Royalty Partners (“HCRP”), a related party due to its equity ownership interest in the Company, and drew down the first tranche of $10.0 million. The second tranche associated with HCRP, of $5.0 million, was drawn down in March 2015. Interest is payable quarterly at a fixed rate of 12.5% per annum with interest-only payments to be made from the effective date of the loan until March 31, 2017. Thereafter, the Company will make principal and interest payments until the maturity of the loan on December 31, 2020. The Company is permitted to make a voluntary prepayment in full, but not in part, prior to December 31, 2020, which prepayment must be made together with accrued and unpaid fixed interest on the amount prepaid and any additional amounts due in respect thereof, including an additional percentage of the aggregate loan amount or outstanding principal amount, depending on the date of prepayment. The Company’s obligations under the loan agreement are secured by a first priority security interest in all of the Company’s assets, other than bank accounts, accounts receivable and inventory. The loan agreement imposes customary affirmative and restrictive covenants, including with respect to fundamental transactions, the incurrence of additional indebtedness or liens and the payment of cash dividends, but does not include any financial covenants. The loan agreement contains a material adverse event clause which provides that an event of default will occur if, among other triggers, there occurs any circumstance that could reasonably be expected to result in a material adverse effect on the Company’s business, operations or condition, or on the Company’s ability to perform its obligations under the loan. The Company recorded interest expense of $2.0 million and $1.8 million on the loan, for the years ended December 31, 2016 and 2015, respectively. As of December 31, 2016, management does not believe that it is probable that the clause will be triggered within the next twelve months, and classified the debt as long-term excluding the portion relating to initial principal payments that are scheduled to be paid beginning March 2017. These principal payments have been reclassified into short term debt on the face of the balance sheet. The loan agreement also includes customary representations and warranties, events of defaults and termination provisions. As of December 31, 2016 and 2015, the Company was in compliance with all covenants. In connection with the loan agreement, the Company issued HCRP a warrant to purchase 84,553 shares of Series E convertible preferred stock at $13.3052 per share. The warrant was recorded on the balance sheet on the date of issuance at its fair value of $572,000 and recorded as a reduction in the carrying value of the debt. Upon completion of the IPO in June 2015, this warrant automatically converted into a warrant to purchase 86,891 shares of common stock and the liability was reclassified to additional paid-in capital. The Company also paid $200,000 in debt issuance costs to HCRP, which were recorded as a debt discount. The total debt discount is being amortized as interest expense in the straight-line method over the term of the loan. Future payments due under the Company’s loan agreements as of December 31, 2016 are as follows (in thousands): Year ending December 31, 2017 2018 2019 2020 Thereafter — Less: Amount representing interest Less: Amount representing debt discount $ |
Debt
Debt | 12 Months Ended |
Dec. 31, 2016 | |
Debt | |
Debt | 6. In December 2010, the Company entered into a loan and security agreement with Silicon Valley Bank (“SVB”) whereby the Company may borrow funds via a series of term loans. In July 2013, the Company entered into the first amendment to the loan and security agreement with SVB. The Company repaid the outstanding balance of $1.9 million on the original loan, including accrued interest, and drew down a new term loan (“Tranche III”) in the amount of $2.5 million. Pursuant to the Tranche III loan agreement, the Company made interest-only payments at a stated rate of 6% per annum for the first eleven months from the funding date. Thereafter, the Company was obligated to pay monthly cash payments of principal and interest for a 30-month period with a balloon payment at maturity which was accreted as interest expense over the term of the loan. The Company was subject to a prepayment penalty equal to 2% of the outstanding principal amount at the prepayment date if the loan was prepaid on or before 18 months after its funding date. The loan balance of $ 2.7 million principal and interest was repaid in February 2014 in connection with the Company entering into a new loan agreement with HCRP (See Note 5 – Related Party Loan Agreement). In connection with Tranche III, in July 2013, the Company granted SVB a warrant to purchase 11,294 shares of Series D convertible preferred stock at $12.395 per share. The warrant was recorded on the balance sheet on the date of issuance at its fair value of $23,000 and recorded as a reduction in the carrying value of the debt. This debt discount was initially amortized to interest expense over the term of the agreement, resulting in an effective interest rate of approximately 13.3% per annum, until the repayment of Tranche III in February 2014 at which time the remaining unamortized balance of the debt discount of $19,000 was recognized in interest expense, together with a prepayment penalty of $50,000 and the unamortized portion of the balloon interest payment of $143,000. Upon completion of the IPO on June 2015, all convertible preferred warrants automatically converted into warrants to purchase shares of common stock and the liability was reclassified to additional paid-in capital. In February 2015, the Company entered into an accounts receivable credit facility with Silicon Valley Bank (SVB) that permits the borrowing of the lesser of $7.5 million or an amount representing up to 80% of eligible accounts receivable. The credit facility terminates in February 2018 and the Company’s obligations under the credit facility are secured by a first priority security interest in the Company’s bank accounts, accounts receivable, and inventory. Interest on borrowed amounts is payable monthly at the prime rate plus 0.75%. The credit facility imposes customary affirmative and restrictive covenants, including with respect to fundamental transactions, changes to the Company’s business, the incurrence of additional indebtedness or liens and the payment of dividends, but does not include any financial covenants. In addition, the credit facility states that if the Company maintains a net cash balance, defined as unrestricted cash held with SVB less any borrowings on the revolving line of credit, of more than $3.0 million, then all collections will be deposited in the Company’s operating account. If the net cash balance is below $3.0 million, then all collections will be held in an SVB-controlled account and applied to reduce the loan balance. The credit facility also includes customary representations and warranties, events of defaults and termination provisions. As of December 31, 2016, the Company has not drawn down on the credit facility. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2016 | |
Commitments and Contingencies. | |
Commitments and Contingencies | 7. Operating Leases The Company leases manufacturing and office space in San Francisco, California, under a non-cancelable operating lease entered into in May 2014. The lease commencement date was November 1, 2014 and the lease expires on October 31, 2024. At the inception of the lease, the Company provided the landlord with a security deposit of $1.1 million in the form of an irrevocable letter of credit, which was recorded in restricted cash on the balance sheet at both December 31, 2016 and December 31, 2015. Rent expense is recognized on a straight-line basis over the term of the leases and accordingly, the Company records the difference between cash rent payments and the recognition of rent expense as a deferred rent liability. Incentives granted under the Company’s facilities leases, including allowances to fund leasehold improvements, are deferred and are recognized as adjustments to rental expense on a straight-line basis over the term of the lease. The Company is entitled to a $2.6 million tenant allowance in connection with the lease entered into in November 2014. The Company has utilized the entire $2.6 million allowance in connection with the qualified costs as of December 31, 2014 and was fully reimbursed by the landlord as of December 31, 2015. The allowance has been recorded on the balance sheet as a leasehold improvement and is being amortized over the term of the lease as a reduction to rent expense. The following table summarizes the Company’s future minimum lease payments as of December 31, 2016 (in thousands): Year ending December 31: 2017 $ 2018 2019 2020 2021 Thereafter Total $ The Company’s rent expense was $2.0 million, $2.0 million and $0.6 million for the years ended December 31, 2016, 2015 and 2014, respectively. Legal Proceedings On February 27, 2017, a purported stockholder class action titled Paciga v. Invuity, Inc., et al., Case No. 3:17-cv-01005, was filed in the United States District Court for the Northern District of California against the Company, its Chief Executive Officer, and its Chief Financial Officer. The complaint alleges that the defendants made false or misleading statements to investors regarding the Company’s business prospects. The complaint purports to assert claims for violation of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, as amended, and the Securities Exchange Commission Rule 10b-5 on behalf of a purported class consisting of all purchasers of the Company’s common stock between July 19, 2016 and November 3, 2016, and seeks unspecified compensatory damages, attorney fees and costs, and other relief. The Company intends to defend the litigation vigorously. Based on information currently available, the Company has determined that the amount of any possible loss or range of possible loss is not reasonably estimable. In addition, the Company is, and from time to time may become, involved in legal proceedings arising from the ordinary course of its business. Management is currently not aware of any matters that will have a material adverse effect on the financial position, results of operations or cash flows of the Company. Indemnifications In the ordinary course of business, the Company enters into agreements that may include indemnification provisions. Pursuant to such agreements, the Company may indemnify, hold harmless and defend an indemnified party for losses suffered or incurred by the indemnified party. Some of the provisions will limit losses to those arising from third-party actions. In some cases, the indemnification will continue after the termination of the agreement. The maximum potential amount of future payments the Company could be required to make under these provisions is not determinable. The Company has never incurred material costs to defend lawsuits or settle claims related to these indemnification provisions. The Company has also entered into indemnification agreements with its directors and officers that may require the Company to indemnify its directors and officers against liabilities that may arise by reason of their status or service as directors or officers to the fullest extent permitted by Delaware corporate law. The Company currently has directors’ and officers’ insurance. To date, the Company has not paid any claims, and the Company believes that the estimated fair value of these indemnification obligations is minimal and it has not accrued any amounts for these obligations. |
Warrants
Warrants | 12 Months Ended |
Dec. 31, 2016 | |
Warrants | |
Warrants | 8. Common Stock Warrants In March 2010, the Company issued a warrant to purchase 3,532 shares of common stock at an exercise price of $1.30 per share to a third party in exchange for recruiting services. The Company recorded the warrants in equity at their fair value of $3,000 on the date of issuance using the Black-Scholes option-pricing model. The warrant was fully exercisable upon grant and expired upon the Company’s IPO in June 2015. Preferred Stock Warrants In conjunction with various financings between 2008 and 2014, the Company issued warrants to purchase 130,540 shares of convertible preferred stock. The relative fair value of these warrants was determined using the Black-Scholes model and was amortized to interest expense over the term of each loan, unless subsequently modified. All convertible preferred stock warrants were classified as liabilities on the balance sheet at their estimated fair value because the shares underlying the warrants could obligate the Company to transfer assets to the holders at a future date under certain circumstances such as a deemed liquidation event. The warrants were subject to re-measurement at each balance sheet date and the change in fair value, if any, was recognized as interest and other income, net in the statements of operations and comprehensive loss. The Company adjusted the liability for changes in fair value until the completion of its IPO, at which time all convertible preferred stock warrants were converted into 137,007 warrants to purchase common stock and the liability was reclassified to additional paid-in capital. The Company recorded a loss of $472,000 and a gain of $522,000 during the years ended December 31, 2015 and 2014, respectively, relating to the change in fair value of the convertible preferred stock warrant liability. |
Convertible Preferred Stock and
Convertible Preferred Stock and Stockholders' Deficit | 12 Months Ended |
Dec. 31, 2016 | |
Convertible Preferred Stock and Stockholders' Deficit | |
Convertible Preferred Stock and Stockholders' Deficit | 9. Convertible Preferred Stock In February and March 2015, the Company issued an aggregate of 1,596,212 shares of Series F convertible preferred stock. Upon the closing of the Company’s IPO in June 2015, all 7,652,615 shares of convertible preferred stock then outstanding converted into 7,979,332 shares of common stock, which includes an aggregate of 326,717 additional shares of common stock related to anti-dilution adjustments upon conversion of the convertible preferred stock. |
Stock Option Plans
Stock Option Plans | 12 Months Ended |
Dec. 31, 2016 | |
Stock Option Plans | |
Stock Option Plans | 10. In April 2015, the Company’s board of directors approved the 2015 Equity Incentive plan (the “2015 Plan”), effective June 11, 2015, covering incentive stock options (“ISOs”), nonstatutory stock options (“NSOs”), restricted stock, restricted stock awards (“RSU”), stock appreciation rights and performance units that may be granted to employees, directors and consultants. In connection with the approval of the 2015 Plan, all remaining shares available for future award under the 2005 Stock Option Plan (the “2005 Plan”) were transferred to the 2015 Plan, and the 2005 Plan was terminated. The number of shares initially authorized for issuance under the 2015 Plan was 1,494,272 plus 169,529 shares remaining available for future awards under the Company’s 2005 Plan. Any options under the 2005 Plan or 2015 Plan (collectively “the Plans”) that expire or otherwise terminate will revert to the 2015 Plan and again become available for issuance. The number of shares available for issuance under the 2015 Plan will be increased on the first day of each fiscal year in an amount equal to the lessor of (i) 1,494,272 shares; (ii) five percent of the outstanding shares on the last day of the immediately preceding fiscal year or (iii) such number of shares determined by the Company’s board of directors. ISOs may be granted to employees or directors holding more than 10% of the voting power of all classes of stock of the Company at an exercise price of no less than 110% of the fair value of the common stock on the grant date and to all other employees or directors at an exercise price of no less than 100% of the fair value of the common stock on the grant date. NSOs may be granted to employees, directors and consultants at an exercise price no less than 100% of the fair value of the common stock on the grant date. Employee stock options under the 2015 plan generally vest 20% upon one year of continued service to the Company, with the remainder in monthly increments over four additional years. Options expire no more than ten years after the date of grant. The Company’s Board of Directors and stockholders previously approved the 2005 Plan. Pursuant to the 2005 plan, options and restricted stock may be granted to employees, directors and consultants of the Company. Options granted under the Company’s 2005 plan may be either incentive stock options or nonstatutory stock options. ISOs may be granted to employees with exercise prices of no less than 100% the fair value of the common stock on the grant date and NSOs may be granted to employees, directors or consultants at exercise prices of no less than 85% of the fair value of the common stock on the grant date, as determined by the Board of Directors. All options granted under the 2005 plan may be exercised before they are vested. Employee stock options granted under the 2005 plan generally vest 25% upon one year of continued service to the Company, with the remainder in monthly increments over three additional years. Stock options granted to consultants generally vest over the performance period of the consultancy agreement, ranging from two to four years. Options expire no more than ten years after the date of grant. As of December 31, 2016, there were 3,776,263 shares authorized for issuance under the Plans of which 1,198,856 were available for grant. In the event of stock splits and stock dividends, the Board of Directors may increase or decrease proportionately the number of shares and the exercise (purchase) price per share deliverable to the 2015 Plan participants. In the event of a merger in which the Company is not the surviving entity or sale of substantially all the Company’s assets, all outstanding options must be either assumed or substituted by the surviving corporation, or may be required to be exercised or settled. The following table summarizes stock option activity and related information: Options Outstanding Weighted- Average Options Exercise Aggregate Available Options Price Per Intrinsic for Grant Outstanding Share Value (in thousands) Balances at December 31, 2015 $ $ Options authorized — Options granted $ Options exercised — $ Options forfeited $ Balances at December 31, 2016 $ $ Options exercisable—December 31, 2016 $ $ Options vested and expected to vest—December 31, 2016 $ $ The intrinsic value is the difference between the estimated fair value of the Company’s common stock at the date of exercise and the exercise price for in-the-money options. The aggregate intrinsic value of options exercised was $2.3 million, $796,000, and $310,000 for the years ended December 31, 2016, 2015, and 2014 respectively. The weighted-average grant-date fair value of options granted during the years ended December 31, 2016, 2015 and 2014 was $3.43, $4.82, and $5.99 per share, respectively. As of December 31, 2016 and 2015, the weighted-average remaining contractual life of options outstanding was 7.5 and 7.8 years, respectively, and for options vested and expected to vest, was 7.5 and 7.7 years, respectively. The options outstanding, vested and currently exercisable by exercise price under the 2015 Plan at December 31, 2016 are as follows: Options Outstanding Options Exercisable Weighted- Weighted- Weighted- Average Average Average Remaining Exercise Exercise Number of Contractual Price Per Number of Price Per Exercise Price Options Life (years) Share Options Share $1.30-2.78 $ $ $3.15 $ $ $4.81-7.32 $ $ $7.45-11.1 $ $ $11.10-13.00 $ $ $13.47-14.25 $ $ $15.91 $ $ $ $ RSU activity for the year ended December 31, 2016, was as follows: Weighted Weighted Average Aggregate Average Remaining Intrinsic Grant Date Shares Contractual Term Value Fair Value (In thousands) Balances at December 31, 2015 — $ — Awarded $ Released $ Forfeited $ Balances at December 31, 2016 $ $ $ Awards vested and expected to vest—December 31, 2016 $ $ $ Early Exercise of Stock Options The 2005 Plan allowed for the granting of options that may be exercised before the options have vested. Shares issued as a result of early exercise that have not vested are subject to repurchase by the Company upon termination of the purchaser’s employment or services, at the price paid by the purchaser. The Company’s right to repurchase these shares generally lapses 1/48 of the original grant date amount per month over four years. At December 31, 2016 and 2015, there were 2,661 and 8,648 shares of common stock outstanding, respectively, subject to the Company’s right of repurchase at a weighted-average price of $2.59 and $2.49 per share, respectively. Employee Stock-Based Compensation Stock-based compensation expense recognized during the years ended December 31, 2016, 2015, and 2014, includes compensation expense for stock-based awards granted to employees based on the grant date fair value of $2.2 million, $1.1 million, and $0.6 million respectively. As of December 31, 2016 and 2015, there were total unamortized compensation costs of $5.0 million and $4.1 million, respectively related to unvested stock options which the Company expects to recognize over a period of approximately 3.1 years and 3.6 years, respectively. On April 30, 2014, the Company modified the terms of 348,871 vested and unvested stock option awards by reducing their exercise price from $4.81 to $3.15 per share. There was no change in any of the other terms of the option awards. The modification resulted in an incremental value of $226,000 being allocated to the options, of which $158,000 was recognized to expense immediately based on options that were vested at the time of the modification. The remaining incremental value of $68,000 attributable to unvested shares is being recognized over their remaining vesting term of which $1,300 is still unvested as of December 31, 2016. The Company estimates the fair value of stock options using the Black-Scholes option valuation model. The fair value of employee stock options is being amortized on a straight-line basis over the requisite service period of the awards. Prior to our IPO, the fair value of the shares of the Company’s common stock underlying the stock options has historically been determined by the Company’s Board of Directors. Because there had been no public market for the Company’s common stock, its Board of Directors has determined the fair value of the Company’s common stock at the time of grant of the option by considering a number of objective and subjective factors, including the Company’s stage of development, sales of the Company’s convertible preferred stock, the Company’s operating and financial performance, equity market conditions affecting comparable public companies, the lack of liquidity of the Company’s capital stock, and the general and industry-specific economic outlooks. Since the Company’s IPO in June 2015, the fair value of the Company’s common stock is based on the closing price of its common stock, as quoted on the NASDAQ Global Market, on the date of grant. In addition to the value determined by the board and closing price on NASDAQ Global Market, the fair value is estimated using the assumptions below. Each of these inputs is subjective and its determination generally requires significant judgment. Year Ended December 31, 2016 2015 2014 Expected term (in years) 5.0–6.0 5.0–6.0 Expected volatility % 35–50 % 35 – 38 % Risk-free interest rate 1.24–2.26 % 1.31–1.89 % 1.80 – 1.93 % Dividend yield — % — % — % Expected Term. The expected term of stock-based awards represents the weighted-average period that the stock-based awards are expected to remain outstanding. The Company opted to use the “simplified method” for estimating the expected term of the awards, whereby the expected term equals the arithmetic average of the vesting term and the original contractual term of the awards. Expected Volatility. The Company determined the share price volatility for stock-based awards based on an analysis of the historical volatilities of a peer group of publicly traded medical device companies. In evaluating similarity, the Company considered factors such as industry, stage of life cycle and size. Risk-Free Interest Rate. The risk-free interest rate is based on the U.S. Treasury yield in effect at the time of the grant for zero-coupon U.S. Treasury notes with remaining terms similar to the expected term of the stock-based awards. Dividend Rate. The expected dividend was assumed to be zero as the Company has never paid dividends and has no current plans to do so. Expected Forfeiture Rate. The Company is required to estimate forfeitures at the time of grant, and revise those estimates in subsequent periods if actual forfeitures differ from those estimates. The Company uses historical data to estimate pre-vesting option forfeitures and record stock-based compensation expense only for those awards that are expected to vest. To the extent actual forfeitures differ from the estimates, the difference will be recorded as a cumulative adjustment in the period that the estimates are revised. Non-Employee Stock-Based Compensation Stock-based compensation expense related to non-employee awards was $121,000, $103,000 and $57,000 during the years ended December 31, 2016, 2015, and 2014, respectively. Total Stock-Based Compensation The following table summarizes total stock-based compensation expense for the years ended December 31, 2016, 2015, and 2014, which was included in the statements of operations as follows (in thousands): Year Ended December 31, 2016 2015 2014 Cost of goods sold $ $ $ Selling, general and administrative Research and development Total stock-based compensation expense $ $ $ |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2016 | |
Income Taxes | |
Income Taxes | 11. The Company has incurred net operating losses for the years ended December 31, 2016, 2015 and 2014, therefore has no provision for income taxes recorded for such years. For the years ended December 31, 2016, 2015 and 2014, the Company generated losses before taxes in the United States of $40.6 million, $37.6 million and $20.7 million, respectively and no foreign income or losses. The Company’s deferred tax assets are offset by a full valuation allowance. The reconciliation of the statutory federal income tax rate to the Company’s effective tax rate is as follows: Year Ended December 31, 2016 2015 2014 Tax at statutory federal rate % % % State taxes, net of federal benefit Tax credits Change in valuation allowance Other Provision for income taxes % % % The tax effects of temporary differences and carryforwards that give rise to significant portions of the deferred tax assets are as follows (in thousands): December 31, 2016 2015 2014 Deferred tax assets: Net operating loss carryforwards $ $ $ Research and development Accrued liabilities and other Stock-based compensation Fixed assets Tenant improvement allowance Total deferred tax assets Valuation allowance Net deferred tax assets $ — $ — $ — Realization of deferred tax assets is dependent upon future earnings, if any, the timing and amount of which are uncertain. Accordingly, the net deferred tax assets have been fully offset by a valuation allowance. The valuation allowance increased by $15.2 million, $12.7 million and $7.5 million for the years ended December 31, 2016, 2015 and 2014, respectively, and there were no releases of the valuation allowance in these years. As a result of certain realization requirements of ASC 718, Compensation — Stock Compensation, the table of deferred tax assets and liabilities shown above does not include certain deferred tax assets as of December 31, 2016 and December 31, 2015, that arose directly from tax deductions related to equity compensation that are greater than the compensation recognized for financial reporting. Equity will be increased by approximately $1.0 million if and when such deferred tax assets are ultimately realized. The Company uses ASC 740 ordering when determining when excess tax benefits have been realized. As of December 31, 2016, the Company had net operating loss (“NOL”) carryforwards (before tax effects) for federal and state income tax purposes of $131.9 million and $87.4 million, respectively. These federal and state NOL carryforwards will begin to expire in 2026 and 2017, respectively, if not utilized. In addition, the Company has federal and state research and development tax credit carryforwards of $1.0 million and $1.2 million, respectively, to offset future income tax liabilities. The federal research and development tax credits will begin to expire in 2024, if not utilized, while the state research and development tax credit can be carried forward indefinitely. Federal and California tax laws impose substantial restrictions on the utilization of net operating losses and credit carry-forwards in the event of an “ownership change” for tax purposes, as defined in Section 382 of the Internal Revenue Code. Due to ownership changes since inception, the Company’s net operating losses may be limited as to their usage. In the event the Company has additional changes in ownership, utilization of the carryforwards could be further restricted. A reconciliation of the Company’s unrecognized tax benefits for the years ended December 31, 2016, 2015, and 2014 is as follows (in thousands): Year Ended December 31, 2016 2015 2014 Balance at beginning of year $ $ $ Additions for tax positions taken in current year Reductions for tax positions taken in prior years Balance at end of year $ $ $ The unrecognized tax benefits, if recognized, would not have an impact on the Company’s effective tax rate to the extent that the Company continues to maintain a full valuation allowance against its deferred tax assets. The Company does not expect a material change to its unrecognized tax benefits over the next 12 months. The Company’s policy is to include interest and penalties related to unrecognized tax benefits within the provision for income taxes. Management determined that no accrual for interest and penalties was required as of December 31, 2016, 2015, and 2014, respectively. The Company’s tax years 2005-2016 will remain open for examination by the federal and state authorities for three and four years, respectively, from the date of utilization of any NOL or research and development credits. |
Net Loss per Common Share
Net Loss per Common Share | 12 Months Ended |
Dec. 31, 2016 | |
Net Loss per Common Share | |
Net Loss per Common Share | 12. The following table sets forth the computation of the basic and diluted net loss per share during the years ended December 31, 2016, 2015, and 2014 (in thousands, except share and per share data): Year Ended December 31, 2016 2015 2014 Numerator: Net loss $ $ $ Denominator: Weighted-average common shares outstanding Less: weighted-average unvested common shares subject to repurchase Weighted-average shares used to compute net loss per common share, basic and diluted Net loss per common share, basic and diluted $ $ $ Basic net loss per share attributable to common stockholders is computed by dividing the net loss attributable to common stockholders by the weighted-average number of common shares outstanding for the period. Diluted net loss per share attributable to common stockholders is computed by dividing the net loss attributable to common stockholders by the weighted-average number of common shares and potentially dilutive securities outstanding for the period, determined using the treasury-stock method and the as-if converted method, for convertible securities, if inclusion of these is dilutive. Because the Company has reported a net loss for all periods presented, diluted net loss per common share is the same as basic net loss per common share for those periods. The following potentially dilutive securities outstanding at the end of the periods presented have been excluded from the computation of diluted shares outstanding: Year Ended December 31, 2016 2015 2014 Convertible preferred stock on an as-converted basis - - Options to purchase common stock Restricted Stock Units - - Warrants to purchase common stock Warrants to purchase convertible preferred stock on an as-converted basis - - Total |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2016 | |
Subsequent Events | |
Subsequent Events | 13 On March 10, 2017, the Company entered into a credit and security agreement with MidCap, as agent, for up to $30.0 million in term loans. Under the terms of the agreement, the Company borrowed the first term loan of $20.0 million (“Tranche 1”) at closing and will be eligible for an additional term loan of $10.0 million (“Tranche 2”) which can be drawn down prior to December 31, 2018, subject to certain terms and conditions. The term loans accrue interest at a floating rate equal to 6.50% per annum, plus the greater of (i) 1.5% or (ii) one month Libor. Interest shall accrue on the date of the commencement of funding and is payable in arrears on the first day of each month. Principal is payable in 36 equal monthly installments beginning April 1, 2019 until paid in full on March 1, 2022. The Company used $17.2 million of the $20.0 million Tranche 1 term loan to pay off in full the HCRP loan and associated prepayment fees. The Company also entered into a separate credit and security agreement with MidCap that provides for a revolving credit facility of up to $10.0 million based on the eligible accounts receivable and inventory balances. The Company may increase the total commitments under the revolving credit facility by up to an additional $10.0 million, subject to certain conditions. Loans under the revolving credit facility accrue interest at a floating rate equal to 3.25% per annum, plus the greater of (i) 1.5% or (ii) one month LIBOR. Interest is payable in arrears on the first day of each month subsequent to the draw down date. The facility terminates in full on March 1, 2022 unless terminated earlier. This new revolving credit facility replaces the Company’s $7.5 million accounts receivable credit facility that existed with SVB, under which no principal or interest was outstanding. Pursuant to the SVB credit facility, the Company paid a termination fee in an amount equal to $150,000. The term loan facility and the revolving credit facility are secured by substantially all of the Company’s assets, including intellectual property. In addition, under the terms of the agreement, the Company is required to meet certain covenants which if the Company is unable to meet, or if the Company does not make its payments, the Company may be found in default and all obligations may be accelerated and become immediately due and payable upon the sole election of the lenders. The Company must also comply with a financial covenant relating to certain quarterly minimum Net Revenue (as defined in the credit agreements) requirements on a trailing twelve month basis. In connection with the term loan facility, the Company agreed to issue to each lender warrants to purchase shares of the Company’s common stock upon the drawdown of each tranche in an aggregate amount equal to 2.0% of the amount drawn, divided by the exercise price per share for that tranche. In connection with the Tranche 1 term loan, the Company issued warrants to purchase an aggregate of 50,618 shares of the Company’s common stock, at an exercise price equal to $7.90 per share. If the Company borrows the Tranche 2 term loan, it must issue additional warrants to the Tranche 2 lenders in accordance with the formula used to calculate the number of shares subject to the Tranche 1 warrants. |
Supplementary Financial Data (U
Supplementary Financial Data (Unaudited) | 12 Months Ended |
Dec. 31, 2016 | |
Supplementary Financial Data | |
Supplementary Financial Data | SUPPLEMENTARY FINANCIAL DAT The following table presents selected unaudited financial data for each of the eight quarters in the two-year period ended December 31, 2016. The selected quarterly financial data should be read in conjunction with the Company's financial statements and the related notes and Item 7 “Management's Discussion and Analysis of Financial Condition and Results of Operations." This information has been derived from the Company's unaudited financial statements that, in management's opinion, reflect all recurring adjustments necessary to fairly state this information when read in conjunction with the Company's financial statements and the related notes appearing in the section entitled " Financial Statements and Supplementary Data," Net loss per share-basic and diluted, for the four quarters of each fiscal year may not sum to the total for the fiscal year because of the different number of shares outstanding during each period. The results of operations for any quarter are not necessarily indicative of the results to be expected for any future period. Statements of Operations Data: Three Months Ended December 31, 2016 September 30, 2016 June 30, 2016 March 31, 2016 (in thousands except share and per share data) Revenue $ $ $ $ Gross profit Loss from operations Net loss $ $ $ $ Net loss per common share, basic and diluted $ $ $ $ Weighted-average shares used to compute net loss per common share, basic and diluted Three Months Ended December 31, 2015 September 30, 2015 June 30, 2015 March 31, 2015 (in thousands except share and per share data) Revenue $ $ $ $ Gross profit Loss from operations Net loss $ $ $ $ Net loss per common share, basic and diluted $ $ $ $ Weighted-average shares used to compute net loss per common share, basic and diluted |
Summary of Significant Accoun22
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2016 | |
Summary of Significant Accounting Policies | |
Basis of Presentation | Basis of Presentation These financial statements have been prepared in accordance with accounting principles generally accepted in the U.S. (U.S. GAAP). |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. On an ongoing basis, management evaluates its estimates, including those related to revenue recognition, fair value of assets and liabilities, inventory, income taxes, common stock, and stock-based compensation. Actual results could differ from those estimates and assumptions. |
Out-of-period and Other Adjustments | Out-of-period and Other Adjustments In the twelve-months ended December 31, 2015, the Company recorded an out-of-period adjustment to reverse revenue that the Company had originally recorded in the fourth quarter of 2014 associated with sales to a distributor for military facilities. The correction of this error resulted in an increase to the Company’s net loss of $302,000 for the twelve months ended December 31, 2015 and a corresponding decrease to accounts receivable. The distributor returned the underlying inventory, and the Company terminated the relationship with the distributor involved, and started working with a new distributor for military accounts. In addition, d uring the twelve months ended December 31, 2015 , the Company recorded an out-of-period adjustment to increase the fair value of the convertible preferred stock warrant liability, which was incorrectly valued at December 31, 2014 due to an error in the expected term assumption. The correction of this error resulted in an increase to the Company’s net loss of $370,000 for the twelve months ended December 31, 2015 and a corresponding increase to the convertible preferred stock warrant liability. Management assessed the impact of these adjustments and did not believe the amounts were material to any prior period financial statements, and the impact of correcting these errors in the twelve months ended December 31, 2015 was not material to those financial statements. As a result, the Company did not restate any prior period amounts. |
Cash Equivalents | Cash Equivalents Cash equivalents consist of short-term, highly liquid investments with original maturities of three months or less from the date of purchase. Cash equivalents consist primarily of amounts invested in money market funds. |
Restricted Cash | Restricted Cash Restricted cash represents a certificate of deposit held at a financial institution as collateral for the Company credit cards and a letter of credit related to the Company’s facility lease. |
Short Term Investments | Short-Term Investments All short-term investments are classified as “available-for-sale” and carried at estimated fair value as determined based upon quoted market prices or pricing models for similar securities. Management determines the appropriate classification of its investments in debt securities at the time of purchase and reevaluates such designation as of each balance sheet date. Unrealized gains and losses are excluded from earnings and are reported as a component of comprehensive loss. Realized gains and losses and declines in fair value judged to be other than temporary, if any, on available-for-sale securities are included in interest and other income (expense), net, respectively, and are derived using the specific identification method for determining the cost of securities sold. Interest on available-for-sale securities is included in interest and other income (expense), net. Unrealized gains and losses and realized gains and losses on sale of short-term investments were not material for the years ended December 31, 2016, 2015, and 2014. The Company did not hold any short-term investments as of either December 31, 2015 and had total short investments of $10.7 million as of December 31, 2016. |
Accounts Receivable | Accounts Receivable Accounts receivable are recorded at the invoiced amount and do not bear interest. The Company generally does not require collateral or other security in support of accounts receivable. Allowances are provided for individual accounts receivable when the Company becomes aware of a customer’s inability to meet its financial obligations, such as in the case of bankruptcy, deterioration in the customer’s operating results or change in financial position. If circumstances related to customers change, estimates of the recoverability of receivables would be further adjusted. The Company also considers broad factors in evaluating the sufficiency of its allowance for doubtful accounts, including the length of time receivables are past due, significant one-time events, creditworthiness of customers and historical experience. Account balances are charged off against the allowance after all means of collection have been exhausted and the potential for recovery is considered remote. The allowance for doubtful accounts balance was $300,000 and $158,000 as of December 31, 2016 and 2015, respectively. The Company has written off $6,000, $165,000 and $0 as uncollectible accounts receivables to the allowance for doubtful accounts during the twelve months ended December 31, 2016, 2015, and 2014, respectively. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments Carrying amounts of the Company’s financial instruments, including cash equivalents, short-term investments, accounts receivable, and accounts payable approximate fair value due to their relatively short maturities. As of December 31, 2016 and 2015, based on Level 2 inputs and the borrowing rates available to the Company for loans with similar terms and consideration of the Company’s credit risk, the carrying value of the Company’s related party debt approximates its fair value. |
Concentrations of Credit Risk | Concentrations of Credit Risk Financial instruments that potentially subject the Company to concentrations of credit risk at December 31, 2016 and 2015 consist primarily of cash, which is held primarily by one domestic financial institution and exceeds federally insured limits, and cash equivalents. The Company manages its liquidity risk by investing in a variety of money market funds and corporate debt. This diversification of investments is consistent with the Company’s policy to maintain liquidity and ensure the ability to collect principal. All investments are made pursuant to corporate investment policy guidelines which restrict investments to issuers evaluated as creditworthy. Significant customers are those which represent 10% or more of the Company’s total revenue for each period presented in the statements of operations and comprehensive loss or 10% or more of the Company’s net accounts receivable balance at each respective balance sheet date. As of and for the twelve months ended December 31, 2016 and 2015, the Company had no customers that represented 10% or more of its revenue or accounts receivable balances. There was one customer that represented 12% of total revenue for the twelve months ended December 31, 2014. |
Inventory | Inventory Inventories are stated at the lower of cost or market (estimated net realizable value). Cost is determined using the standard cost method, which approximates the first-in, first out basis. The Company periodically assesses the recoverability of all inventories, including raw materials and finished goods, to determine whether adjustments to the carrying value are required. Inventory that is obsolete or in excess of forecasted usage is written down to its estimated net realizable value based on assumptions about future demand and market conditions. Inventory write-downs are charged to cost of goods. |
Property and Equipment | Property and equipment are stated at cost, less accumulated depreciation and amortization. Depreciation is provided using the straight-line method over the estimated useful lives of the respective assets. The estimated useful lives of the Company’s assets are as follows: Laboratory equipment 3 years Leasehold improvements Shorter of lease term or estimated life of the assets Furniture and fixtures 3 years Computer equipment and software 2 to 3 years Manufacturing equipment 5 years Maintenance and repairs that do not extend the life or improve the asset are expensed when incurred. |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets The Company reviews long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset (or asset group) may not be recoverable. An impairment loss is recognized when the total of estimated undiscounted future cash flows expected to result from the use of the asset and its eventual disposition is less than its carrying amount. Impairment, if any, would be assessed using discounted cash flows or other appropriate measures of fair value. The Company has not recorded impairment charges on long-lived assets for the periods presented in these financial statements. |
Convertible Preferred Stock Warrant Liability | Convertible Preferred Stock Warrant Liability Freestanding warrants for shares that were contingently redeemable were classified as liabilities on the balance sheet at their estimated fair value because the shares underlying the warrants may obligate the Company to transfer assets to the holders at a future date under certain circumstances such as a deemed liquidation event. The warrants were subject to re-measurement at each balance sheet date and the change in fair value, if any, was recognized as interest and other income (expense), net in the statements of operations. The Company adjusted the liability for changes in fair value until the completion of its IPO, at which time all convertible preferred stock warrants were converted into warrants to purchase common stock and the liability was reclassified to additional paid-in capital. |
Other Comprehensive Income (Loss) | Other Comprehensive Income (Loss) Other comprehensive income (loss) represents all changes in stockholders’ equity except those resulting from distributions to stockholders. The Company’s unrealized loss on short-term available-for-sale securities represent the components of other comprehensive income (loss) that are excluded from the reported net loss and are presented in the statements of comprehensive loss. |
Revenue Recognition | Revenue Recognition The Company’s revenue is generated from the sale of its products to hospitals and medical centers through direct sales representatives and independent sales agents. The Company recognizes revenue when all of the following criteria are met: · persuasive evidence of an arrangement exists; · the sales price is fixed or determinable; · collection of the relevant receivable is reasonably assured at the time of sale; and · delivery has occurred or services have been rendered. The Company recognizes revenue when title to the goods and risk of loss transfers to the customer, which is upon shipment of the product under the Company’s standard terms and conditions. Shipping and handling costs billed to the customer are recorded in revenue. |
Warranty Obligations | Warranty Obligations The Company does not offer rights of return or price protection and has no post-delivery obligations other than its standard warranty which entitles the customer to return defective products for a period of one year after sale. The warranty liability was $50,000 as of December 31, 2016. Historical warranty costs have been insignificant. |
Medical Device Excise Tax | Medical Device Excise Tax In March 2010, the Affordable Care Act (the ACA) was signed into law which included a deductible 2.3% excise tax on any entity that manufactures or imports medical devices offered for sale in the United States, with limited exceptions, effective January 1, 2013. Subsequently, this excise tax was suspended effective January 1, 2016 through December 31, 2017. |
Research and Development | Research and Development The Company’s research and development costs are expensed as incurred. Research and development costs includes but are not limited to, payroll and personnel-related expenses, including stock-based compensation, laboratory supplies, consulting costs, and allocated facilities and information services costs. |
Income Taxes | Income Taxes The Company accounts for income taxes under the asset and liability method, whereby deferred tax assets and liabilities are determined based on the difference between the financial statement and tax bases of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to affect taxable income. A valuation allowance is established when, in management’s estimate, it is more likely than not that the deferred tax asset will not be realized. The tax effects of the Company’s income tax positions are recognized only if they are more likely than not to be sustained based solely on the technical merits as of the reporting date. The Company considers many factors when evaluating and estimating its tax positions and benefits, which may require periodic adjustments and which may not accurately anticipate actual outcomes. |
Stock-based Compensation | Stock-based Compensation The Company measures its stock-based awards made to employees based on the estimated fair values of the awards as of the grant date using the Black-Scholes option-pricing model. Stock-based compensation expense is recognized over the requisite service period using the straight-line method and is based on the value of the portion of stock-based payment awards that is ultimately expected to vest. As such, the Company’s stock-based compensation is reduced for the estimated forfeitures at the date of grant and revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates. Stock-based compensation expense for options granted to non-employees as consideration for services received is measured on the date of performance at the fair value of the consideration received or the fair value of the equity instruments issued, using the Black-Scholes option-pricing model, whichever can be more reliably measured. Compensation expense for options granted to non-employees is periodically remeasured as the underlying options vest. |
Segment Reporting | Segment Reporting The Company manages its operations as a single operating segment for the purposes of assessing performance and making operating decisions. All of the Company’s assets are maintained in the United States. The Company derives its revenue from sales to customers in the United States, based upon the billing address of the customer. |
Net loss per Common Share | Net Loss per Common Share Basic net loss per common share is calculated by dividing the net loss by the weighted-average number of shares of common stock outstanding during the period, without consideration of potentially dilutive securities. Diluted net loss per common share is the same as basic net loss per common share since the effect of potentially dilutive securities are anti-dilutive. Shares subject to repurchase are excluded from the weighted-average shares. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers (Topic 606) , which supersedes the revenue recognition requirements in ASC 605, Revenue Recognition . This ASU is based on the principle that revenue is recognized to depict the transfer of goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The ASU also requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments and assets recognized from costs incurred to obtain or fulfill a contract. In August 2015, the FASB issued ASU No. 2015-14, Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date , which effectively delayed the adoption date by one year, to an effective date for public entities for annual and interim periods beginning after December 15, 2017. In March 2016, the FASB issued ASU No. 2016-08 , Revenue from Contracts with Customers (Topic 606): Principal Versus Agent Considerations (Reporting Revenue Gross Versus Net), to clarify certain aspects of the principal-versus-agent guidance in its new revenue recognition standard. In April 2016, the FASB issued ASU No. 2016-10 , Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing to clarify on how to identify the performance obligations and the licensing implementation guidance in its new revenue recognition standard. In May 2016, the FASB issued ASU No. 2016-12, Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients, to address certain issues identified by the Transition Resource Group, (the “TRG”) in the guidance on assessing collectability, presentation of sales tax, noncash consideration, and completed contracts and contracts modifications at transition. The Company plans to adopt this standard on January 1, 2018 and is in the process of determining the potential effects of this new guidance on its financial statements. In August 2014, the FASB issued ASU No. 2014-15, Disclosure of Uncertainties About an Entity’s Ability to Continue as a Going Concern . The new standard provides guidance around management’s responsibility to evaluate whether there is substantial doubt about an entity’s ability to continue as a going concern and to provide related footnote disclosures. The new standard is effective for the annual and interim periods ended after December 15, 2016. The Company has adopted this accounting standard, which is reflected in its liquidity disclosure. In July 2015, the FASB issued ASU No. 2015-11, Inventory (Topic 330): Simplifying the Measurement of Inventory , which permits companies to measure inventory at the lower of cost and realizable value. ASU No.2015-11 applies to all business entities and is effective for public business entities for annual periods, and interim periods within those annual periods, beginning after December 15, 2016. The Company currently plans to adopt this accounting standard in the first quarter of fiscal year 2017 and the standard is not expected to have a material impact on the Company’s financial statements. In January 2016, the FASB issued ASU No. 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities , which addresses certain aspects of recognition, measurement, presentation and disclosure of financial instruments. ASU No. 2016-01 is effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2017. The Company is in the process of evaluating the impact of the adoption of this new guidance on its financial statements. In February 2016, the FASB issued ASU No. 2016-02 – Leases (“ASC 842”), which sets out the principles for the recognition, measurement, presentation and disclosure of leases for both parties to a contract (i.e. lessees and lessors). The new standard requires lessees to apply a dual approach, classifying leases as either finance or operating leases based on the principle of whether or not the lease is effectively a financed purchase by the lessee. This classification will determine whether lease expense is recognized based on an effective interest method or on a straight line basis over the term of the lease, respectively. A lessee is also required to record a right-of-use asset and a lease liability for all leases with a term of greater than 12 months regardless of their classification. Leases with a term of 12 months or less will be accounted for similar to existing guidance for operating leases today. ASC 842 supersedes the previous leases standard, ASC 840 Leases. The standard is effective on January 1, 2019, with early adoption permitted. The Company is in the process of evaluating the impact of this new guidance on its financial statements. In March 2016, the FASB issued ASU No. 2016-09, Compensation-Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting. This update simplifies the accounting for employee share-based payment transactions, including the accounting for income taxes, forfeitures, and statutory tax withholding requirements, as well as classification in the statement of cash flows. ASU No. 2016-09 is effective for public entities for annual periods beginning after December 15, 2016. The Company currently plans to adopt this accounting standard in the first quarter of fiscal year 2017 and the standard is not expected to have a material impact on the Company’s financial statements. In June 2016, the FASB issued ASU No. 2016-13, Measurement of Credit Losses on Financial Statements. This update provides financial statement users with more decision-useful information about the expected credit losses on financial instruments and other commitments to extend credit held by a reporting entity at each reporting date. The update replaces the incurred loss impairment methodology in current GAAP with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. ASU No. 2016-13 is effective for public entities for annual periods beginning after December 15, 2019. The Company is in the process of evaluating the impact of this new guidance on its financial statements. In August 2016, the FASB issued ASU No. 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments (a consensus of the FASB Emerging Issues Task Force). The new guidance is intended to reduce diversity in practice in how certain transactions are classified in the statement of cash flows. This update addresses the following eight specific cash flow issues: debt prepayment or debt extinguishment costs; settlement of zero-coupon debt instruments or other debt instruments with coupon interest rates that are insignificant in relation to the effective interest rate of the borrowing; contingent consideration payments made after a business combination; proceeds from the settlement of insurance claims; proceeds from the settlement of corporate-owned life insurance policies (COLIs) (including bank-owned life insurance policies (BOLIs)); distributions received from equity method investees; beneficial interests in securitization transactions; and separately identifiable cash flows and application of the predominance principle. ASU No. 2016-15 is effective for public entities for annual periods beginning after December 15, 2017. The Company is in the process of evaluating the impact of this new guidance on its financial statements. In November 2016, the FASB issued ASU No. 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash. The amendments in this Update require that a statement of cash flows explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. Therefore, amounts generally described as restricted cash and restricted cash equivalents should be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. The amendments in this Update are effective for public business entities for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. The Company is in the process of evaluating the impact of this new guidance on its financial statements. |
Summary of Significant Accoun23
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Summary of Significant Accounting Policies | |
Property Plant and Equipment, Estimated Useful Lives | Laboratory equipment 3 years Leasehold improvements Shorter of lease term or estimated life of the assets Furniture and fixtures 3 years Computer equipment and software 2 to 3 years Manufacturing equipment 5 years |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Fair Value Measurements | |
Financial Assets and Liabilities Measured at Fair Value on Recurring Basis Based on Three-Tier Fair Value Hierarchy | The following table sets forth the fair value of the Company’s financial assets and liabilities measured at fair value on a recurring basis based on the three-tier fair value hierarchy (in thousands): December 31, 2016 Level 1 Level 2 Level 3 Total Assets Money market funds $ $ — $ — $ Commercial Paper — — Corporate debt securities — — $ $ $ — $ December 31, 2015 Level 1 Level 2 Level 3 Total Assets Money market funds $ $ — $ — $ $ $ — $ — $ |
Balance Sheet Components (Table
Balance Sheet Components (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Balance Sheet Components | |
Schedule of Inventory | Inventory consisted of the following (in thousands): December 31, 2016 2015 Raw materials $ $ Work-in-process Finished goods Total inventory $ $ |
Schedule of Prepaid Expenses and Other Assets | Prepaid expenses and other current assets consisted of the following (in thousands): December 31, 2016 2015 Prepaid expenses $ $ Other Total prepaid expenses and other current assets $ $ |
Schedule of Property and Equipment, Net | Property and equipment, net consisted of the following (in thousands): December 31, 2016 2015 Computer equipment and software $ $ Laboratory and manufacturing equipment Furniture and fixtures Leasehold improvements Total property and equipment, gross Less: accumulated depreciation and amortization Total property and equipment, net $ $ |
Schedule of Accrued and Other Current Liabilities | Accrued and other current liabilities consisted of the following (in thousands): December 31, 2016 2015 Accrued payroll-related expenses $ $ Accrued independent sales agent commissions Accrued professional fees Deferred rent Other Total accrued and other current liabilities $ $ |
Related Party Loan Agreement (T
Related Party Loan Agreement (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Related Party Loan Agreement | |
Schedule of Future Payments under Company's Loan Agreements | Future payments due under the Company’s loan agreements as of December 31, 2016 are as follows (in thousands): Year ending December 31, 2017 2018 2019 2020 Thereafter — Less: Amount representing interest Less: Amount representing debt discount $ |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Commitments and Contingencies. | |
Summary of Company's Future Minimum Lease Payments | The following table summarizes the Company’s future minimum lease payments as of December 31, 2016 (in thousands): Year ending December 31: 2017 $ 2018 2019 2020 2021 Thereafter Total $ |
Stock Option Plans (Tables)
Stock Option Plans (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Stock Option Plans | |
Summary of Stock Option Activity | Options Outstanding Weighted- Average Options Exercise Aggregate Available Options Price Per Intrinsic for Grant Outstanding Share Value (in thousands) Balances at December 31, 2015 $ $ Options authorized — Options granted $ Options exercised — $ Options forfeited $ Balances at December 31, 2016 $ $ Options exercisable—December 31, 2016 $ $ Options vested and expected to vest—December 31, 2016 $ $ |
Schedule of Options Outstanding, Vested and Currently Exercisable by Exercise Price | Options Outstanding Options Exercisable Weighted- Weighted- Weighted- Average Average Average Remaining Exercise Exercise Number of Contractual Price Per Number of Price Per Exercise Price Options Life (years) Share Options Share $1.30-2.78 $ $ $3.15 $ $ $4.81-7.32 $ $ $7.45-11.1 $ $ $11.10-13.00 $ $ $13.47-14.25 $ $ $15.91 $ $ $ $ |
Schedule of RSU activity | Weighted Weighted Average Aggregate Average Remaining Intrinsic Grant Date Shares Contractual Term Value Fair Value (In thousands) Balances at December 31, 2015 — $ — Awarded $ Released $ Forfeited $ Balances at December 31, 2016 $ $ $ Awards vested and expected to vest—December 31, 2016 $ $ $ |
Schedule of Assumptions Used in Estimated Fair Value of Share-based Compensation for Options Granted | Year Ended December 31, 2016 2015 2014 Expected term (in years) 5.0–6.0 5.0–6.0 Expected volatility % 35–50 % 35 – 38 % Risk-free interest rate 1.24–2.26 % 1.31–1.89 % 1.80 – 1.93 % Dividend yield — % — % — % |
Summary of Stock-based Compensation Expense Related to Stock Options and Restricted Stock Units Included in Condensed Statements of Operations and Comprehensive Loss | The following table summarizes total stock-based compensation expense for the years ended December 31, 2016, 2015, and 2014, which was included in the statements of operations as follows (in thousands): Year Ended December 31, 2016 2015 2014 Cost of goods sold $ $ $ Selling, general and administrative Research and development Total stock-based compensation expense $ $ $ |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Income Taxes | |
Schedule of Reconciliation of the Statutory Federal Income Tax Rate to the Company's Effective Tax Rate | Year Ended December 31, 2016 2015 2014 Tax at statutory federal rate % % % State taxes, net of federal benefit Tax credits Change in valuation allowance Other Provision for income taxes % % % |
Summary of Significant Portions of the Deferred Tax Assets | The tax effects of temporary differences and carryforwards that give rise to significant portions of the deferred tax assets are as follows (in thousands): December 31, 2016 2015 2014 Deferred tax assets: Net operating loss carryforwards $ $ $ Research and development Accrued liabilities and other Stock-based compensation Fixed assets Tenant improvement allowance Total deferred tax assets Valuation allowance Net deferred tax assets $ — $ — $ — |
Schedule of Reconciliation of the Company's Unrecognized Tax Benefits | A reconciliation of the Company’s unrecognized tax benefits for the years ended December 31, 2016, 2015, and 2014 is as follows (in thousands): Year Ended December 31, 2016 2015 2014 Balance at beginning of year $ $ $ Additions for tax positions taken in current year Reductions for tax positions taken in prior years Balance at end of year $ $ $ |
Net Loss per Common Share (Tabl
Net Loss per Common Share (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Net Loss per Common Share | |
Schedule of Computation of Basic and Diluted Net Loss per Share | The following table sets forth the computation of the basic and diluted net loss per share during the years ended December 31, 2016, 2015, and 2014 (in thousands, except share and per share data): Year Ended December 31, 2016 2015 2014 Numerator: Net loss $ $ $ Denominator: Weighted-average common shares outstanding Less: weighted-average unvested common shares subject to repurchase Weighted-average shares used to compute net loss per common share, basic and diluted Net loss per common share, basic and diluted $ $ $ |
Schedule of Potentially Dilutive Securities Outstanding Excluded from Computation of Diluted Shares Outstanding | The following potentially dilutive securities outstanding at the end of the periods presented have been excluded from the computation of diluted shares outstanding: Year Ended December 31, 2016 2015 2014 Convertible preferred stock on an as-converted basis - - Options to purchase common stock Restricted Stock Units - - Warrants to purchase common stock Warrants to purchase convertible preferred stock on an as-converted basis - - Total |
Supplementary Financial Data 31
Supplementary Financial Data (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Supplementary Financial Data | |
Schedule of Selected Quarterly Information | Three Months Ended December 31, 2016 September 30, 2016 June 30, 2016 March 31, 2016 (in thousands except share and per share data) Revenue $ $ $ $ Gross profit Loss from operations Net loss $ $ $ $ Net loss per common share, basic and diluted $ $ $ $ Weighted-average shares used to compute net loss per common share, basic and diluted Three Months Ended December 31, 2015 September 30, 2015 June 30, 2015 March 31, 2015 (in thousands except share and per share data) Revenue $ $ $ $ Gross profit Loss from operations Net loss $ $ $ $ Net loss per common share, basic and diluted $ $ $ $ Weighted-average shares used to compute net loss per common share, basic and diluted |
Organization and Description 32
Organization and Description of Business - Additional Information (Detail) $ / shares in Units, $ in Millions | Mar. 10, 2017USD ($) | Jul. 31, 2016USD ($) | Jun. 30, 2015$ / sharesshares | May 31, 2015 | Dec. 31, 2016$ / sharesshares | Dec. 31, 2015$ / sharesshares | Jun. 18, 2015$ / sharesshares |
Organization And Nature Of Operations [Line Items] | |||||||
Authorized capital units | 110,000,000 | ||||||
Common stock, shares authorized | 100,000,000 | 100,000,000 | 100,000,000 | ||||
Preferred stock, shares authorized | 10,000,000 | 10,000,000 | 10,000,000 | ||||
Common Stock Par Or Stated Value Per Share | $ / shares | $ 0.001 | $ 0.001 | $ 0.001 | ||||
Preferred Stock Par Or Stated Value Per Share | $ / shares | $ 0.001 | $ 0.001 | $ 0.001 | ||||
Preferred stock, shares outstanding | 0 | 0 | |||||
Second Public Offering [Member] | |||||||
Organization And Nature Of Operations [Line Items] | |||||||
ATM Offering | $ | $ 25 | ||||||
Subsequent Event | MidCap | Term loan | |||||||
Organization And Nature Of Operations [Line Items] | |||||||
Maximum loan amount | $ | $ 30 | ||||||
Subsequent Event | MidCap | Tranche 1 | |||||||
Organization And Nature Of Operations [Line Items] | |||||||
Drawn amont | $ | $ 20 | ||||||
Common Stock [Member] | |||||||
Organization And Nature Of Operations [Line Items] | |||||||
Reverse split of common stock | 0.0541 | ||||||
Description reverse stock split | Reverse Stock SplitIn May 2015, the Company's board of directors and its stockholders approved an amendment to the Company's amended and restated articles of incorporation to effect a reverse split of shares of the Company's common stock on a 1-for-18.5 basis (the "Reverse Stock Split"). All authorized, issued and outstanding shares of common stock, convertible preferred stock, warrants for common stock and preferred stock, options to purchase common stock and the related per share amounts contained in the financial statements have been retroactively adjusted to reflect this Reverse Stock Split for all periods presented. The Reverse Stock Split was effected on May 27, 2015. | ||||||
Convertible preferred stock converted into shares of common stock | 7,979,332 | ||||||
Stock issued, shares | 3,220,000 | 4,600,000 | |||||
Common Stock [Member] | IPO [Member] | |||||||
Organization And Nature Of Operations [Line Items] | |||||||
Convertible preferred stock converted into shares of common stock | 7,979,332 | ||||||
Stock issued, shares | 4,600,000 | ||||||
Price per share issed | $ / shares | $ 12 | ||||||
Common Stock [Member] | Maximum | IPO [Member] | |||||||
Organization And Nature Of Operations [Line Items] | |||||||
Additional shares of common stock | 600,000 |
Summary of Significant Accoun33
Summary of Significant Accounting Policies - Additional Information (Detail) | 3 Months Ended | 12 Months Ended | 24 Months Ended | |||||||||
Dec. 31, 2016USD ($) | Sep. 30, 2016USD ($) | Jun. 30, 2016USD ($) | Mar. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Sep. 30, 2015USD ($) | Jun. 30, 2015USD ($) | Mar. 31, 2015USD ($) | Dec. 31, 2016USD ($)segmentcustomer | Dec. 31, 2015USD ($)customer | Dec. 31, 2014USD ($)customer | Dec. 31, 2016USD ($) | |
Significant Accounting Policies [Line Items] | ||||||||||||
Net loss | $ (9,549,000) | $ (8,821,000) | $ (10,129,000) | $ (12,110,000) | $ (10,055,000) | $ (9,138,000) | $ (9,346,000) | $ (9,031,000) | $ (40,609,000) | $ (37,570,000) | $ (20,662,000) | |
Short-term Investments | 10,737,000 | 0 | 10,737,000 | 0 | $ 10,737,000 | |||||||
Allowance For Doubtful Accounts Receivable | 300,000 | 158,000 | 300,000 | 158,000 | 300,000 | |||||||
Write off adjustments charged to allowance | 6,000 | 165,000 | $ 0 | |||||||||
Warrant Liability | $ 50,000 | $ 50,000 | $ 50,000 | |||||||||
Medical Device Excise Tax Percentage | 2.30% | |||||||||||
Number of operating segments | segment | 1 | |||||||||||
Restatement Adjustment | Error Corrections That Reverse Revenue Recorded | ||||||||||||
Significant Accounting Policies [Line Items] | ||||||||||||
Net loss | (302,000) | |||||||||||
Restatement Adjustment | Error Corrections That Increase Fair Value Of Warrant Liability | ||||||||||||
Significant Accounting Policies [Line Items] | ||||||||||||
Convertible preferred stock warrant liability | $ 370,000 | $ 370,000 | ||||||||||
Revenue | Customer Concentration Risk | ||||||||||||
Significant Accounting Policies [Line Items] | ||||||||||||
Concentration risk, percentage | 10.00% | |||||||||||
Accounts Receivable, Net | ||||||||||||
Significant Accounting Policies [Line Items] | ||||||||||||
Number of Customers | customer | 0 | 0 | 1 | |||||||||
Accounts Receivable, Net | Customer Concentration Risk | ||||||||||||
Significant Accounting Policies [Line Items] | ||||||||||||
Concentration risk, percentage | 12.00% | 10.00% |
Summary of Significant Accoun34
Summary of Significant Accounting Policies - Schedule of Revenue as Percentage of Total Revenue for Each Significant Customer (Detail) - Customer Concentration Risk | 12 Months Ended | 24 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2014 | Dec. 31, 2016 | |
Revenue | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 10.00% | ||
Accounts Receivable, Net | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 12.00% | 10.00% |
Summary of Significant Accoun35
Summary of Significant Accounting Policies - Schedule of Estimated Useful Lives of Assets (Detail) | 12 Months Ended |
Dec. 31, 2016 | |
Laboratory Equipment [Member] | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, estimated useful life | 3 years |
Furniture and Fixtures | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, estimated useful life | 3 years |
Computer Equipment and Software | Minimum | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, estimated useful life | 2 years |
Computer Equipment and Software | Maximum | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, estimated useful life | 3 years |
Manufacturing Equipment [Member] | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, estimated useful life | 5 years |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Detail) - USD ($) | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Reclassification of convertible preferred stock warrant liability to additional paid-in capital upon conversion of preferred stock warrants into common stock warrants | $ 608,000 | |
Short-term Investments | $ 10,737,000 | 0 |
Gains losses on short term investments | $ 0 | |
Level 3 | Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Reclassification of convertible preferred stock warrant liability to additional paid-in capital upon conversion of preferred stock warrants into common stock warrants | $ 136,000 |
Fair Value Measurements - Finan
Fair Value Measurements - Financial Assets and Liabilities Measured at Fair Value on Recurring Basis Based on Three-Tier Fair Value Hierarchy (Detail) - Recurring - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Assets | ||
Assets | $ 37,870 | $ 44,750 |
Level 1 | ||
Assets | ||
Assets | 18,755 | 44,750 |
Level 2 | ||
Assets | ||
Assets | 19,115 | |
Level 3 | ||
Assets | ||
Assets | 0 | 0 |
Money Market Funds | ||
Assets | ||
Assets | 18,755 | 44,750 |
Money Market Funds | Level 1 | ||
Assets | ||
Assets | 18,755 | $ 44,750 |
Commercial Paper | ||
Assets | ||
Assets | 9,582 | |
Commercial Paper | Level 2 | ||
Assets | ||
Assets | 9,582 | |
Corporate Debt Securities | ||
Assets | ||
Assets | 9,533 | |
Corporate Debt Securities | Level 2 | ||
Assets | ||
Assets | $ 9,533 |
Balance Sheet Components - Sche
Balance Sheet Components - Schedule of Inventory (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Balance Sheet Components | ||
Raw materials | $ 699 | $ 1,000 |
Work-in-process | 1,144 | 798 |
Finished goods | 3,209 | 3,384 |
Total inventory | $ 5,052 | $ 5,182 |
Balance Sheet Components - Sc39
Balance Sheet Components - Schedule of Prepaid Expenses and Other Assets (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Balance Sheet Components | ||
Prepaid expenses | $ 1,004 | $ 907 |
Other | 84 | 16 |
Total prepaid expenses and other assets | $ 1,088 | $ 923 |
Balance Sheet Components - Sc40
Balance Sheet Components - Schedule of Property and Equipment, Net (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Property, Plant and Equipment [Line Items] | ||
Total property and equipment, gross | $ 12,394 | $ 11,436 |
Less: accumulated depreciation and amortization | (4,108) | (2,241) |
Total property and equipment, net | 8,286 | 9,195 |
Computer Equipment and Software | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment, gross | 1,377 | 1,341 |
Laboratory and Manufacturing Equipment | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment, gross | 2,422 | 1,544 |
Furniture and Fixtures | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment, gross | 1,442 | 1,445 |
Leasehold Improvements | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment, gross | $ 7,153 | $ 7,106 |
Balance Sheet Components - Addi
Balance Sheet Components - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Balance Sheet Components | |||
Depreciation and amortization | $ 1,995 | $ 1,710 | $ 344 |
Balance Sheet Components - Sc42
Balance Sheet Components - Schedule of Accrued and Other Current Liabilities (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Balance Sheet Components | ||
Accrued payroll-related expenses | $ 5,301 | $ 3,052 |
Accrued independent sales agent commissions | 193 | 158 |
Accrued professional fees | 246 | 373 |
Deferred rent | 261 | 261 |
Other | 350 | 370 |
Total accrued and other current liabilities | $ 6,351 | $ 4,214 |
Related Party Loan Agreement -
Related Party Loan Agreement - Additional Information (Detail) - HealthCare Royalty Partners - USD ($) | Feb. 28, 2014 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Jun. 30, 2015 |
Related Party Transaction [Line Items] | ||||||
Payments of debt issuance costs | $ 200,000 | |||||
Common Stock [Member] | IPO [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Warrants issued to purchase of shares | 86,891 | |||||
Series E Convertible Preferred Stock [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Warrants issued to purchase of shares | 84,553 | |||||
Exercise price of warrants | $ 13.3052 | |||||
Warrants liability | $ 572,000 | |||||
Loans Payable [Member] | Loan Agreement [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Debt instrument, fixed interest rate | 12.50% | |||||
Debt instrument, maturity date | Dec. 31, 2020 | |||||
Interest expense on the loan | $ 2,000,000 | $ 1,800,000 | ||||
Loans Payable [Member] | Loan Agreement [Member] | Tranche One [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Debt instrument, drawn amount | $ 10,000,000 | |||||
Loans Payable [Member] | Loan Agreement [Member] | Tranche Two [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Debt instrument, drawn amount | $ 5,000,000 |
Related Party Loan Agreement 44
Related Party Loan Agreement - Schedule of Future Payments under Company's Loan Agreements (Detail) - HealthCare Royalty Partners $ in Thousands | Dec. 31, 2016USD ($) |
Related Party Transaction [Line Items] | |
2,017 | $ 3,305 |
2,018 | 4,547 |
2,019 | 5,601 |
2,020 | 6,469 |
Total | 19,922 |
Less: Amount representing interest | (4,922) |
Less: Amount representing debt discount | (377) |
Future payments due, net | $ 14,623 |
Debt - Additional Information (
Debt - Additional Information (Detail) - Silicon Valley Bank - USD ($) | 1 Months Ended | 12 Months Ended | ||
Feb. 28, 2015 | Feb. 28, 2014 | Jul. 31, 2013 | Dec. 31, 2016 | |
Tranche III [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, repayment of loan payable | $ 2,700,000 | $ 1,900,000 | ||
New term loan | $ 2,500,000 | |||
Debt instrument, fixed interest rate | 6.00% | |||
Loan payment terms | Thereafter, the Company was obligated to pay monthly cash payments of principal and interest for a 30-month period with a balloon payment at maturity which was accreted as interest expense over the term of the loan. | |||
Frequency periodic payment of loan | Monthly | |||
Loan term period | 30 months | |||
Percentage of prepayment penalty | 2.00% | |||
Loan maturity date | February 2,014 | |||
Tranche III [Member] | Series D Convertible Preferred Stock [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt conversion number of warrants issued | 11,294 | |||
Debt conversion warrant price per share | $ 12.395 | |||
Warrants liability | $ 23,000 | |||
Loan interest rate, effective percentage | 13.30% | |||
Unamortized balance of debt discount | 19,000 | |||
Prepayment penalty on debt | 50,000 | |||
Unamortized portion of balloon interest payment | $ 143,000 | |||
Accounts Receivable Credit Facility | Revolving Credit Facility | ||||
Debt Instrument [Line Items] | ||||
Credit facility, maximum borrowing capacity | $ 7,500,000 | |||
Credit facility, percentage of maximum borrowings on eligible accounts receivable | 80.00% | |||
Line of credit facility maturity month and year | 2018-02 | |||
Credit facility, interest rate description | Interest on borrowed amounts is payable monthly at the prime rate plus 0.75%. | |||
Credit facility, covenant terms | The credit facility imposes customary affirmative and restrictive covenants, including with respect to fundamental transactions, changes to the Company's business, the incurrence of additional indebtedness or liens and the payment of dividends, but does not include any financial covenants. In addition, the credit facility states that if the Company maintains a net cash balance, defined as unrestricted cash held with SVB less any borrowings on the revolving line of credit, of more than $3.0 million, then all collections will be deposited in the Company's operating account. If the net cash balance is below $3.0 million, then all collections will be held in an SVB-controlled account and applied to reduce the loan balance. | |||
Credit facility, net cash balance | $ 3,000,000 | |||
Credit facility, frequency of interest payment | monthly | |||
Accounts Receivable Credit Facility | Revolving Credit Facility | Prime Rate [Member] | ||||
Debt Instrument [Line Items] | ||||
Credit facility, monthly interest rate | 0.75% |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Nov. 01, 2014 | |
Other Commitments [Line Items] | ||||
Rent expense | $ 2 | $ 2 | $ 0.6 | |
Non-Cancelable Facility Lease Agreement [Member] | ||||
Other Commitments [Line Items] | ||||
Commencement date of lease | Nov. 1, 2014 | |||
Lease expiration date | Oct. 31, 2024 | |||
Security deposit | $ 1.1 | |||
Tenant allowance | 2.6 | |||
Tenant allowance utilized | $ 2.6 |
Commitments and Contingencies47
Commitments and Contingencies - Summary of Company's Future Minimum Lease Payments (Detail) $ in Thousands | Dec. 31, 2016USD ($) |
Commitments and Contingencies. | |
2,017 | $ 2,114 |
2,018 | 2,178 |
2,019 | 2,243 |
2,020 | 2,310 |
2,021 | 2,380 |
Thereafter | 7,131 |
Total | $ 18,356 |
Warrants - Additional Informati
Warrants - Additional Information (Detail) - USD ($) | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2016 | Mar. 31, 2010 | |
Class Of Warrant Or Right [Line Items] | ||||
Changes in fair value of convertible preferred stock warrant liability | $ 472,000 | $ (522,000) | ||
Convertible Preferred Stock Warrants [Member] | ||||
Class Of Warrant Or Right [Line Items] | ||||
Changes in fair value of convertible preferred stock warrant liability | $ (472,000) | $ 522,000 | ||
Common Stock Warrants [Member] | ||||
Class Of Warrant Or Right [Line Items] | ||||
Warrants issued to purchase of shares | 3,532 | |||
Exercise price of warrants | $ 1.30 | |||
Preferred Stock Warrants [Member] | Financings between 2008 and 2014 [Member] | ||||
Class Of Warrant Or Right [Line Items] | ||||
Warrants issued to purchase of shares | 130,540 | |||
Convertible Preferred Stock Warrants [Member] | Financings between 2008 and 2014 [Member] | IPO [Member] | ||||
Class Of Warrant Or Right [Line Items] | ||||
Warrants issued to purchase of shares | 137,007 | |||
Black Scholes Based Option Pricing Model [Member] | Common Stock Warrants [Member] | ||||
Class Of Warrant Or Right [Line Items] | ||||
Warrants liability | $ 3,000 |
Convertible Preferred Stock a49
Convertible Preferred Stock and Stockholders' Deficit - Additional Information (Detail) - shares | 2 Months Ended | ||
Mar. 31, 2013 | Jun. 30, 2015 | Jun. 14, 2015 | |
Temporary Equity [Line Items] | |||
Convertible preferred stock, shares outstanding | 7,652,615 | ||
Series F Convertible Preferred Stock [Member] | |||
Temporary Equity [Line Items] | |||
Convertible preferred stock, shares issued during period | 1,596,212 | ||
Common Stock [Member] | |||
Temporary Equity [Line Items] | |||
Convertible preferred stock converted into shares of common stock | 7,979,332 | ||
Common Stock [Member] | IPO [Member] | |||
Temporary Equity [Line Items] | |||
Convertible preferred stock converted into shares of common stock | 7,979,332 | ||
Common Stock [Member] | Anti-dilution Adjustments [Member] | |||
Temporary Equity [Line Items] | |||
Convertible preferred stock converted into shares of common stock | 326,717 |
Stock Option Plans - Additional
Stock Option Plans - Additional Information (Detail) - USD ($) | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Apr. 30, 2015 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Number of shares authorised for future issuance | 3,776,263 | |||
Number of shares available for future awards | 1,198,856 | 1,394,661 | 1,406,439 | |
Stock-based compensation | $ 2,303,000 | $ 1,249,000 | $ 663,000 | |
2015 Plan [Member] | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Number of shares authorised for future issuance | 1,494,272 | |||
Number of shares available for future awards | 169,529 | |||
Stock option vesting, description | Employee stock options under the 2015 plan generally vest 20% upon one year of continued service to the Company, with the remainder in monthly increments over four additional years. Options expire no more than ten years after the date of grant. | |||
Increase in number of shares available for issuance, description | The number of shares available for issuance under the 2015 Plan will be increased on the first day of each fiscal year in an amount equal to the lessor of (i) 1,494,272 shares; (ii) five percent of the outstanding shares on the last day of the immediately preceding fiscal year or (iii) such number of shares determined by the Company's board of directors. | |||
2005 Plan [Member] | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Stock option vesting, description | Employee stock options granted under the 2005 plan generally vest 25% upon one year of continued service to the Company, with the remainder in monthly increments over three additional years. Stock options granted to consultants generally vest over the performance period of the consultancy agreement, ranging from two to four years. Options expire no more than ten years after the date of grant. | |||
Non Statutory Stock Option [Member] | 2005 Plan [Member] | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Exercise price of stock option granted on fair value of common stock at grant date | 85.00% | |||
Incentive Stock Options [Member] | 2015 Plan [Member] | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Stock option granted to employees or director upon minimum percentage of voting right | 10.00% | |||
Incentive Stock Options [Member] | 2005 Plan [Member] | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Exercise price of stock option granted on fair value of common stock at grant date | 100.00% | |||
Employees | Share-based Compensation Award, Tranche One [Member] | 2015 Plan [Member] | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Stock option vesting, term | 1 year | |||
Restricted stock units, vesting percentage | 20.00% | |||
Employees | Share-based Compensation Award, Tranche One [Member] | 2005 Plan [Member] | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Stock option vesting, term | 1 year | |||
Restricted stock units, vesting percentage | 25.00% | |||
Employees | Share-based Compensation Award, Tranche Two [Member] | 2015 Plan [Member] | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Stock option vesting, term | 4 years | |||
Employees | Share-based Compensation Award, Tranche Two [Member] | 2005 Plan [Member] | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Stock option vesting, term | 3 years | |||
Non-employees | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Stock-based compensation | $ 121,000 | $ 103,000 | $ 57,000 | |
Minimum | 2015 Plan [Member] | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Increase in number of shares available for issuance | 1,494,272 | |||
Increase in number of shares available for issuance, percentage | 5.00% | |||
Minimum | Employees or Directors Holding Less Than 10% of Voting Power [Member] | Incentive Stock Options [Member] | 2015 Plan [Member] | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Purchase Price of Common Stock, Percent | 110.00% | |||
Minimum | Employees or Directors Holding More Than 10% of Voting Power [Member] | Incentive Stock Options [Member] | 2015 Plan [Member] | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Purchase Price of Common Stock, Percent | 100.00% | |||
Minimum | Employees, Directors and Consultants [Member] | Non Statutory Stock Option [Member] | 2015 Plan [Member] | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Purchase Price of Common Stock, Percent | 100.00% | |||
Minimum | Consultants [Member] | 2005 Plan [Member] | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Stock option vesting, term | 2 years | |||
Maximum | 2005 Plan [Member] | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Restricted stock units, expiration term | 10 years | |||
Maximum | Share-based Compensation Award, Tranche Two [Member] | 2015 Plan [Member] | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Stock option vesting, term | 4 years | |||
Restricted stock units, expiration term | 10 years |
Stock Option Plans - Summary of
Stock Option Plans - Summary of Stock Option Activity (Detail) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Apr. 30, 2014 | |
Options Available for Grant, Beginning Balances | 1,394,661 | 1,406,439 | |
Options Available for Grant, Options authorized | 669,617 | ||
Options Available for Grant, Options granted | (963,052) | ||
Options Available for Grant, Options forfeited | 281,657 | ||
Options Available for Grant, Ending Balances | 1,198,856 | 1,394,661 | |
Options Outstanding, Beginning Balances | 2,445,600 | 2,038,787 | |
Stock options granted | 963,052 | ||
Options Outstanding, Options exercised | (274,582) | ||
Options Outstanding, Options forfeited | (281,657) | ||
Options Outstanding, Ending Balances | 2,445,600 | ||
Options Outstanding, Options exercisable | 1,083,571 | ||
Options Outstanding, Options vested and expected to vest | 2,303,316 | 348,871 | |
Weighted Average Exercise Price Per Share, Beginning Balances | $ 6.86 | $ 6.69 | |
Weighted Average Exercise Price Per Share, authorized | $ 6.74 | ||
Weighted Average Exercise Price Per Share, granted | 7.14 | ||
Weighted Average Exercise Price Per Share, exercised | 2.67 | ||
Weighted Average Exercise Price Per Share, forfeited | 10.61 | ||
Weighted Average Exercise Price Per Share, Ending Balances | 6.86 | ||
Weighted Average Exercise Price Per Share, Options exercisable | $ 5.15 | ||
Aggregate Intrinsic Value, Beginning Balances | $ 2,920 | $ 7,504 | |
Aggregate Intrinsic Value, Options exercisable | $ 2,385 | ||
Aggregate Intrinsic Value, Options vested and expected to vest | $ 2,894 |
Stock Option Plans - Schedule o
Stock Option Plans - Schedule of Options Outstanding, Vested and Currently Exercisable by Exercise Price (Detail) - 2015 Plan [Member] | 12 Months Ended |
Dec. 31, 2016$ / sharesshares | |
Exercise Price Range | |
Options Outstanding, Number of Options | shares | 2,445,600 |
Options Outstanding, Weighted-Average Remaining Contractual Life (year) | 7 years 6 months |
Options Outstanding, Weighted Average Exercise Price Per Share | $ 6.86 |
Options Exercisable, Number of Options | shares | 1,083,571 |
Options Exercisable, Weighted Average Exercise Price Per Share | $ 5.15 |
1.30-2.78 [Member] | |
Exercise Price Range | |
Exercise Price Range, Lower Range Limit | 1.30 |
Exercise Price Range, Upper Range Limit | $ 2.78 |
Options Outstanding, Number of Options | shares | 249,745 |
Options Outstanding, Weighted-Average Remaining Contractual Life (year) | 3 years 10 months 24 days |
Options Outstanding, Weighted Average Exercise Price Per Share | $ 1.44 |
Options Exercisable, Number of Options | shares | 248,885 |
Options Exercisable, Weighted Average Exercise Price Per Share | $ 1.44 |
$3.15 [Member] | |
Exercise Price Range | |
Exercise Price Range, Upper Range Limit | $ 3.15 |
Options Outstanding, Number of Options | shares | 655,436 |
Options Outstanding, Weighted-Average Remaining Contractual Life (year) | 6 years 9 months 18 days |
Options Outstanding, Weighted Average Exercise Price Per Share | $ 3.15 |
Options Exercisable, Number of Options | shares | 501,010 |
Options Exercisable, Weighted Average Exercise Price Per Share | $ 3.15 |
$4.81-7.32 [Member] | |
Exercise Price Range | |
Exercise Price Range, Lower Range Limit | 4.81 |
Exercise Price Range, Upper Range Limit | $ 7.32 |
Options Outstanding, Number of Options | shares | 550,183 |
Options Outstanding, Weighted-Average Remaining Contractual Life (year) | 7 years 10 months 24 days |
Options Outstanding, Weighted Average Exercise Price Per Share | $ 6.53 |
Options Exercisable, Number of Options | shares | 44,782 |
Options Exercisable, Weighted Average Exercise Price Per Share | $ 6.82 |
$7.45-11.1 [Member] | |
Exercise Price Range | |
Exercise Price Range, Lower Range Limit | 7.45 |
Exercise Price Range, Upper Range Limit | $ 11.10 |
Options Outstanding, Number of Options | shares | 398,248 |
Options Outstanding, Weighted-Average Remaining Contractual Life (year) | 8 years 8 months 12 days |
Options Outstanding, Weighted Average Exercise Price Per Share | $ 8.33 |
Options Exercisable, Number of Options | shares | 78,727 |
Options Exercisable, Weighted Average Exercise Price Per Share | $ 9.03 |
$11.1-13.00 [Member] | |
Exercise Price Range | |
Exercise Price Range, Lower Range Limit | 11.10 |
Exercise Price Range, Upper Range Limit | $ 13 |
Options Outstanding, Number of Options | shares | 393,822 |
Options Outstanding, Weighted-Average Remaining Contractual Life (year) | 8 years 6 months |
Options Outstanding, Weighted Average Exercise Price Per Share | $ 11.54 |
Options Exercisable, Number of Options | shares | 143,747 |
Options Exercisable, Weighted Average Exercise Price Per Share | $ 11.36 |
$13.47-14.25 [Member] | |
Exercise Price Range | |
Exercise Price Range, Lower Range Limit | 13.47 |
Exercise Price Range, Upper Range Limit | $ 14.25 |
Options Outstanding, Number of Options | shares | 139,808 |
Options Outstanding, Weighted-Average Remaining Contractual Life (year) | 8 years 9 months 18 days |
Options Outstanding, Weighted Average Exercise Price Per Share | $ 14.12 |
Options Exercisable, Number of Options | shares | 35,514 |
Options Exercisable, Weighted Average Exercise Price Per Share | $ 14.15 |
$15.91 [Member] | |
Exercise Price Range | |
Exercise Price Range, Upper Range Limit | $ 15.91 |
Options Outstanding, Number of Options | shares | 58,358 |
Options Outstanding, Weighted-Average Remaining Contractual Life (year) | 8 years 1 month 6 days |
Options Outstanding, Weighted Average Exercise Price Per Share | $ 15.91 |
Options Exercisable, Number of Options | shares | 30,906 |
Options Exercisable, Weighted Average Exercise Price Per Share | $ 15.91 |
Stock Option Plans - Addition53
Stock Option Plans - Additional Information 1 (Detail) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Compensation Related Costs [Abstract] | |||
Aggregate intrinsic value of options exercised | $ 2,300 | $ 796 | $ 310 |
Weighted average grant date fair value of options, granted | $ 3.43 | $ 4.82 | $ 5.99 |
Weighted-average remaining contractual life of options outstanding | 7 years 6 months | 7 years 9 months 18 days | |
Weighted-average remaining contractual life of options outstanding, vested and expected to vest | 7 years 6 months | 7 years 8 months 12 days | |
Stock option repurchase, term | 4 years | ||
Common stock outstanding, right to repurchase | 2,661 | 8,648 | |
Weighted average price of stock repurchase | $ 2.59 | $ 2.49 | |
Right to repurchase of shares, term | The Company's right to repurchase these shares generally lapses 1/48 of the original grant date amount per month over four years |
Stock Option Plans - Summary 54
Stock Option Plans - Summary of Stock-based Compensation Expense Related to Stock Options and Restricted Stock Units Included in Condensed Statements of Operations and Comprehensive Loss (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Total stock-based compensation expense | $ 2,303 | $ 1,249 | $ 663 |
Cost of Goods Sold | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Total stock-based compensation expense | 133 | 89 | 23 |
Research and Development | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Total stock-based compensation expense | 419 | 300 | 93 |
Selling, General and Administrative | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Total stock-based compensation expense | $ 1,751 | $ 860 | $ 547 |
Stock Option Plans - Addition55
Stock Option Plans - Additional Information 2 (Detail) - USD ($) $ / shares in Units, $ in Thousands | Apr. 30, 2014 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Share-based compensation expense recognized | $ 2,200 | $ 1,100 | $ 600 | |
Unrecognized compensation expense related to unvested options | $ 5,000 | $ 4,100 | ||
Weighted-average expected period to recognize of compensation expense, term | 3 years 1 month 6 days | 3 years 7 months 6 days | ||
Options Outstanding, Options vested and expected to vest | 348,871 | 2,303,316 | ||
Modification, incremental cost | $ 226 | |||
Expense recognized based on options vested at the time of modification of terms | 158 | |||
Incremental value attributed to unvested shares being recognized over the remaining vesting term | $ 68 | $ 1,300 | ||
Maximum | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Vested and unvested stock option award exercise price | $ 4.81 | |||
Minimum | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Vested and unvested stock option award exercise price | $ 3.15 |
Stock Option Plans - RSU (Detai
Stock Option Plans - RSU (Detail) - Restricted Stock Units $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended |
Dec. 31, 2016USD ($)$ / sharesshares | |
Shares | |
Awarded (in shares) | shares | 221,807 |
Released (in shares) | shares | (64,000) |
Forfeited (in shares) | shares | (26,000) |
Balances at end of period (in shares) | shares | 131,807 |
Awards vested and expected to vest at end of period (in shares) | shares | 114,766 |
Weighted Average Remaining Contractual Term | |
Balances at end of period (in years) | 1 year 11 months 23 days |
Awards vested and expected to vest at end of period (in years) | 1 year 10 months 2 days |
Aggregate Intrinsic Value | |
Balances at end of period | $ | $ 758 |
Awards vested and expected to vest at end of period | $ | $ 660 |
Weighted Average Grant Date Fair Value | |
Awarded (in dollars per share) | $ / shares | $ 6.93 |
Released (in dollars per share) | $ / shares | 4.87 |
Forfeited (in dollars per share) | $ / shares | 7.45 |
Balances at end of period (in dollars per share) | $ / shares | 7.82 |
Awards vested and expected to vest at end of period (in dollars per share) | $ / shares | $ 7.86 |
Stock Option Plans - Schedule57
Stock Option Plans - Schedule of Assumptions Used in Estimated Fair Value of Share-based Compensation for Options Granted (Detail) - Employees | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Expected term (in years) | 6 years | ||
Expected volatility | 50.00% | ||
Dividend yield | 0.00% | 0.00% | 0.00% |
Minimum | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Expected term (in years) | 5 years | 5 years | |
Expected volatility | 50.00% | ||
Risk-free interest rate | 1.24% | 1.31% | 1.80% |
Maximum | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Expected term (in years) | 6 years | 6 years | |
Expected volatility | 50.00% | ||
Risk-free interest rate | 2.26% | 1.89% | 1.93% |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income Tax Disclosure [Line Items] | |||
Provision for income taxes | $ 0 | $ 0 | $ 0 |
Income before income taxes, U.S. | 40,600,000 | 37,600,000 | 20,700,000 |
Income before income taxes, Foreign | 0 | 0 | 0 |
Increase decrease in deferred tax asset valuation allowance | 15,200,000 | 12,700,000 | 7,500,000 |
Unrecognized tax benefits, interest and penalties accrued | 0 | $ 0 | $ 0 |
Excess tax benefit related to stock-based compensation | $ 1,000,000 | ||
Earliest Tax Year | |||
Income Tax Disclosure [Line Items] | |||
Tax year open for income tax examination | 2,005 | ||
Latest Tax Year | |||
Income Tax Disclosure [Line Items] | |||
Tax year open for income tax examination | 2,016 | ||
Federal | |||
Income Tax Disclosure [Line Items] | |||
Net operating loss carryforwards before tax effects | $ 131,900,000 | ||
Net operating loss carryforwards expiration year | 2,026 | ||
Research and development tax credits carryforwards | $ 1,000,000 | ||
Research and development tax credits expiration year | 2,024 | ||
Tax years under examination | 3 years | ||
State | |||
Income Tax Disclosure [Line Items] | |||
Net operating loss carryforwards before tax effects | $ 87,400,000 | ||
Net operating loss carryforwards expiration year | 2,017 | ||
Research and development tax credits carryforwards | $ 1,200,000 | ||
Research and development tax credits expiration term | indefinitely | ||
Tax years under examination | 4 years |
Income Taxes - Schedule of Reco
Income Taxes - Schedule of Reconciliation of the Statutory Federal Income Tax Rate to the Company's Effective Tax Rate (Detail) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income Taxes | |||
Tax at statutory federal rate | 34.00% | 34.00% | 34.00% |
State taxes, net of federal benefit | 3.50% | 0.40% | 3.80% |
Tax credits | 1.20% | 0.90% | 1.30% |
Change in valuation allowance | (37.70%) | (33.90%) | (37.80%) |
Other | (1.00%) | (1.40%) | (1.30%) |
Provision for income taxes | 0.00% | 0.00% | 0.00% |
Income Taxes - Summary of Signi
Income Taxes - Summary of Significant Portions of the Deferred Tax Assets (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Deferred tax assets: | |||
Net operating loss carryforwards | $ 49,261 | $ 35,474 | $ 23,574 |
Research and development | 1,343 | 986 | 782 |
Accrued liabilities and other | 1,567 | 935 | 590 |
Stock-based compensation | 823 | 485 | 259 |
Fixed assets | 477 | 219 | 100 |
Tenant improvement allowance | 744 | 836 | 970 |
Total deferred tax assets | 54,215 | 38,935 | 26,275 |
Valuation allowance | (54,215) | (38,935) | (26,275) |
Net deferred tax assets |
Income Taxes - Schedule of Re61
Income Taxes - Schedule of Reconciliation of the Company's Unrecognized Tax Benefits (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income Taxes | |||
Balance at beginning of year | $ 329 | $ 261 | $ 209 |
Additions for tax positions taken in current year | 124 | 86 | 69 |
Reductions for tax positions taken in prior years | (5) | (18) | (17) |
Balance at end of year | $ 448 | $ 329 | $ 261 |
Net Loss per Common Share - Sch
Net Loss per Common Share - Schedule of Computation of Basic and Diluted Net Loss per Share (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Numerator: | |||||||||||
Net loss | $ (9,549) | $ (8,821) | $ (10,129) | $ (12,110) | $ (10,055) | $ (9,138) | $ (9,346) | $ (9,031) | $ (40,609) | $ (37,570) | $ (20,662) |
Denominator: | |||||||||||
Weighted-average common shares outstanding | 14,869,691 | 7,619,696 | 673,573 | ||||||||
Less: weighted-average unvested common shares subject to repurchase | (1,190) | (13,524) | (20,378) | ||||||||
Weighted-average shares used to compute net loss per common share, basic and diluted | 14,868,501 | 15,690,785 | 13,404,007 | 13,392,976 | 13,307,031 | 13,292,849 | 2,919,823 | 703,637 | 14,868,501 | 7,606,172 | 653,195 |
Net loss per common share, basic and diluted | $ (0.56) | $ (0.56) | $ (0.76) | $ (0.90) | $ (0.76) | $ (0.69) | $ (3.20) | $ (12.84) | $ (2.73) | $ (4.94) | $ (31.63) |
Net Loss per Common Share - S63
Net Loss per Common Share - Schedule of Potentially Dilutive Securities Outstanding Excluded from Computation of Diluted Shares Outstanding (Detail) - shares | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities excluded from computation of diluted net loss per share | 2,714,414 | 2,175,796 | 7,763,801 |
Convertible Preferred Stock As Converted [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities excluded from computation of diluted net loss per share | 6,246,196 | ||
Options to Purchase Common Stock | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities excluded from computation of diluted net loss per share | 2,445,600 | 2,038,789 | 1,379,503 |
Restricted Stock Units | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities excluded from computation of diluted net loss per share | 131,807 | ||
Warrants to Purchase Common Stock | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities excluded from computation of diluted net loss per share | 137,007 | 137,007 | 3,532 |
Warrants To Purchase Convertible Preferred Stock [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities excluded from computation of diluted net loss per share | 134,570 |
Subsequent Events (Details)
Subsequent Events (Details) - USD ($) $ / shares in Units, $ in Thousands | Mar. 10, 2017 | Dec. 31, 2014 |
Subsequent Event [Line Items] | ||
Loan paid off | $ 2,500 | |
Subsequent Event | ||
Subsequent Event [Line Items] | ||
Common Stock Drawdown Percent Of Amount Drawn | 2.00% | |
Subsequent Event | Tranche 1 | ||
Subsequent Event [Line Items] | ||
Applicable margin (as a percent) | 6.50% | |
Warrants issued to purchase of shares | 50,618 | |
Exercise price of warrants | $ 7.90 | |
Subsequent Event | Mid Cap | Revolving Credit Facility | ||
Subsequent Event [Line Items] | ||
Maximum loan amount | $ 10,000 | |
Subsequent Event | Mid Cap | Tranche 1 | ||
Subsequent Event [Line Items] | ||
Maximum loan amount | 30,000 | |
Drawn amont | 20,000 | |
Subsequent Event | Mid Cap | Tranche 1 | HealthCare Royalty Partners | ||
Subsequent Event [Line Items] | ||
Loan paid off | 17,200 | |
Subsequent Event | Mid Cap | Tranche 2 | Revolving Credit Facility | ||
Subsequent Event [Line Items] | ||
Maximum loan amount | 10,000 | |
Subsequent Event | Silicon Valley Bank | Revolving Credit Facility | ||
Subsequent Event [Line Items] | ||
Loan Termination Fee | 150 | |
Subsequent Event | Silicon Valley Bank | Accounts Receivable Credit Facility | ||
Subsequent Event [Line Items] | ||
Drawn amont | $ 7,500 |
Supplementary Financial Data 65
Supplementary Financial Data (Unaudited) - Schedule of Selected Quarterly Information (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Supplementary Financial Data | |||||||||||
Revenue | $ 9,356 | $ 8,478 | $ 8,223 | $ 6,404 | $ 6,246 | $ 5,595 | $ 4,748 | $ 4,442 | $ 32,461 | $ 21,031 | $ 13,103 |
Gross profit | 6,948 | 6,259 | 6,132 | 4,298 | 4,119 | 3,561 | 2,898 | 2,720 | 23,637 | 13,298 | 8,473 |
Loss from operations | (9,074) | (8,346) | (9,637) | (11,623) | (9,567) | (8,661) | (8,866) | (8,113) | (38,680) | (35,207) | (19,752) |
Net loss | $ (9,549) | $ (8,821) | $ (10,129) | $ (12,110) | $ (10,055) | $ (9,138) | $ (9,346) | $ (9,031) | $ (40,609) | $ (37,570) | $ (20,662) |
Net loss per common share, basic and diluted | $ (0.56) | $ (0.56) | $ (0.76) | $ (0.90) | $ (0.76) | $ (0.69) | $ (3.20) | $ (12.84) | $ (2.73) | $ (4.94) | $ (31.63) |
Weighted-average shares used to compute net loss per common share, basic and diluted | 14,868,501 | 15,690,785 | 13,404,007 | 13,392,976 | 13,307,031 | 13,292,849 | 2,919,823 | 703,637 | 14,868,501 | 7,606,172 | 653,195 |