Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2017 | Apr. 24, 2017 | |
Document And Entity Information | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2017 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q1 | |
Entity Registrant Name | Invuity, Inc. | |
Entity Central Index Key | 1,393,020 | |
Current Fiscal Year End Date | --12-31 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 16,974,586 |
Condensed Balance Sheets
Condensed Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Current assets: | ||
Cash and cash equivalents | $ 24,958 | $ 28,300 |
Short-term investments | 9,519 | 10,737 |
Restricted cash - current | 181 | 181 |
Accounts receivable, net | 6,076 | 5,782 |
Inventory | 5,913 | 5,052 |
Prepaid expenses and other current assets | 835 | 1,088 |
Total current assets | 47,482 | 51,140 |
Restricted Cash | 909 | 909 |
Property and equipment, net | 8,086 | 8,286 |
Total assets | 56,477 | 60,335 |
Current liabilities: | ||
Accounts payable | 3,259 | 2,192 |
Accrued and other current liabilities | 5,984 | 6,351 |
Short-term debt | 3,000 | 1,362 |
Total current liabilities | 12,243 | 9,905 |
Deferred rent | 2,685 | 2,721 |
Long-term debt | 19,301 | 13,261 |
Total liabilities | 34,229 | 25,887 |
Commitments and contingencies (Note 8) | ||
Stockholders' equity : | ||
Preferred stock, $0.001 par value - 10,000,000 shares authorized at March 31, 2017 and December 31, 2016, no shares issued and outstanding at March 31, 2017 and December 31, 2016 | ||
Common stock, $0.001 par value - 100,000,000 shares authorized at March 31, 2017 and December 31, 2016 16,971,664 and 16,950,940 shares issued and outstanding at March 31, 2017 and December 31, 2016, respectively | 17 | 17 |
Additional paid-in capital | 181,664 | 180,647 |
Accumulated deficit | (159,433) | (146,216) |
Total stockholders' equity | 22,248 | 34,448 |
Total liabilities and stockholders' equity | $ 56,477 | $ 60,335 |
Condensed Balance Sheets (Paren
Condensed Balance Sheets (Parenthetical) - $ / shares | Mar. 31, 2017 | Dec. 31, 2016 |
Condensed 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 | 16,971,664 | 16,950,940 |
Common stock, shares outstanding | 16,971,664 | 16,950,940 |
Condensed Statements of Operati
Condensed Statements of Operations and Comprehensive Loss - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Condensed Statements of Operations and Comprehensive Loss | ||
Revenue | $ 9,023 | $ 6,404 |
Cost of goods sold | 2,099 | 2,106 |
Gross profit | 6,924 | 4,298 |
Operating expenses: | ||
Research and development | 2,428 | 2,601 |
Selling, general and administrative | 14,853 | 13,320 |
Total operating expenses | 17,281 | 15,921 |
Loss from operations | (10,357) | (11,623) |
Interest expense | (487) | (505) |
Interest income | 57 | 36 |
Other expense, net | (127) | (18) |
Loss on extinguishment of debt | (2,303) | |
Net loss and comprehensive loss | $ (13,217) | $ (12,110) |
Net loss per common share, basic and diluted | $ (0.78) | $ (0.90) |
Weighted-average shares used to compute net loss per common share, basic and diluted | 16,958,332 | 13,392,976 |
Condensed Statements of Cash Fl
Condensed Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Cash flows from operating activities | ||
Net loss | $ (13,217) | $ (12,110) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation and amortization | 497 | 484 |
Stock-based compensation | 722 | 432 |
Noncash interest expense | 3 | 35 |
Payment of original issue discount | (782) | |
Non-cash portion of extinguishment loss | 352 | |
Accretion of premium on marketable securities | 18 | |
Recovery for doubtful accounts | (16) | (11) |
Changes in operating assets and liabilities: | ||
Accounts receivable | (278) | (432) |
Inventory | (861) | (393) |
Prepaid expenses and other assets | 253 | 141 |
Accounts payable | 1,053 | (650) |
Accrued and other current liabilities | (487) | 363 |
Deferred rent | (36) | (19) |
Net cash used in operating activities | (12,779) | (12,160) |
Cash flows from investing activities: | ||
Purchases of property and equipment | (288) | (290) |
Maturities of marketable securities | 1,200 | |
Net cash provided by (used in) investing activities | 912 | (290) |
Cash flows from financing activities: | ||
Proceeds from revolving credit facility | 3,000 | |
Proceeds from issuance of long-term debt, net of issuance costs | 19,701 | |
Payments of long-term debt - related party | (14,193) | |
Proceeds from issuance of common stock upon exercise of stock options | 17 | 18 |
Net cash provided by financing activities | 8,525 | 18 |
Net decrease in cash and cash equivalents | (3,342) | (12,432) |
Cash and cash equivalents, beginning of period | 28,300 | 46,296 |
Cash and cash equivalents, end of period | 24,958 | 33,864 |
Supplemental disclosures of cash flow information: | ||
Interest paid to related party | 457 | 469 |
Non-cash investing and financing activities: | ||
Purchases of property and equipment in accounts payable and accrued liabilities at period end | $ 39 | $ 32 |
Organization and Description of
Organization and Description of Business | 3 Months Ended |
Mar. 31, 2017 | |
Organization and Description of Business | |
Organization and Description of Business | 1. Organization and Description of Business Invuity, Inc. (the “Company”) was incorporated in California on November 29, 2004 and reincorporated in Delaware in May 2015. The Company is a commercial-stage medical technology company that 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 minimal access procedures. The Company’s manufacturing, development and management facilities are located in San Francisco, California. Liquidity The Company has incurred net losses from operations since inception and has an accumulated deficit of $159.4 million as of March 31, 2017. The Company expects to incur additional losses and negative cash flows for the foreseeable future. Management believes that its cash and cash equivalents at March 31, 2017 and additional funding, available under the new loan and security agreement with MidCap Financial Trust, and their affiliates (“ MidCap,”) will provide sufficient funds to enable the Company to meet its operating plan through at least the next twelve months. In addition, in July 1, 2016, the Company filed a prospectus supplement for an at-the-market offering (“ATM”) program of up to $25,000,000. 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 planned expenditures may need to be reduced. Basis of Presentation The accompanying unaudited condensed financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial information and in accordance with the instructions to Form 10‑Q and Rule 10‑01 of Regulation S‑X. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. The unaudited interim condensed financial statements have been prepared on the same basis as the annual financial statements. In the opinion of management, the accompanying unaudited condensed financial statements reflect all adjustments (consisting only of normal recurring adjustments) considered necessary for a fair statement of the financial position, results of operations and cash flows for the periods presented. The information included in this Quarterly Report on Form 10-Q should be read in conjunction with the audited financial statements and notes thereto included in the Company’s Annual Report on Form 10‑K for the year ended December 31, 2016 and filed with the U.S. Securities and Exchange Commission (the “SEC”). The accompanying year-end balance sheet was derived from the audited financial statements included in the Company’s Annual Report on Form 10‑K for the year ended December 31, 2016. The results for the three months ended March 31, 2017 are not necessarily indicative of the results expected for the full fiscal year or any other periods. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2017 | |
Summary of Significant Accounting Policies | |
Summary of Significant Accounting Policies | 2. Summary of Significant Accounting Policies Use of Estimates The Company’s financial statements have been prepared in conformity with U.S. GAAP. The preparation of the 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 and stock-based compensation. Actual results could differ from those estimates and assumptions. 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 a letter of credit related to the Company’s facility lease in San Francisco, California. Fair Value of Financial Instruments The 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 March 31, 2017 and December 31, 2016, 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 long-term debt approximates its fair value. Customer Concentration Significant customers are those which represent 10% or more of the Company’s total revenue for each period presented in the condensed 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 year ended December 31, 2016 and the three months ended March 31, 2017 and 2016 the Company had no customers that represented 10% or more of its revenue or accounts receivable balances. 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. 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. 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, 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 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 fiscal years, and interim periods within those fiscal years, beginning 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 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. Early adoption is 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. 2016‑08, 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. The Company is in the process of evaluating the impact of this new guidance on its financial statements. · 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. · 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, 2016. The adoption of this standard in the current quarter did not have a material impact on the Company’s 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. As a result of adopting ASU No. 2016‑09, the Company has made an accounting policy election to account for forfeitures as they occur. This change has been applied on a modified retrospective basis, with no material impacts on the Company’s financial statements. The adoption of ASU No. 2016‑09 also requires excess tax benefits and tax deficiencies be recorded in the income statement as opposed to additional paid‑in capital when the awards vest or are settled, and has been applied on a prospective basis with no impact on the financial statements as of and for the three months ended March 31, 2017. As a result of the adoption, the Company's increased its total NOLs by $1.0 million on January 1, 2017 related to deferred tax assets that arose directly from tax deductions related to equity compensation greater than compensation recognized for financial reporting purposes. This amount is fully offset by the valuation allowance. The adoption of ASU No. 2016‑09 related to the accounting for minimum statutory withholding tax requirements and cash paid by an employer when directly withholding shares for tax-withholding purposes had no impact on the Company's current consolidated financial statements or on any prior period financial statements presented. · 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 | 3 Months Ended |
Mar. 31, 2017 | |
Fair Value Measurements | |
Fair Value Measurements | 3. Fair Value Measurements 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. 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. 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): March 31, 2017 Level 1 Level 2 Level 3 Total Assets Money market funds $ 18,338 $ — $ — $ 18,338 Commercial paper — 3,598 — 3,598 Corporate debt securities — 6,996 — 6,996 $ 18,338 $ 10,594 $ — $ 28,932 December 31, 2016 Level 1 Level 2 Level 3 Total Assets Money market funds $ 18,755 $ — $ — $ 18,755 Commercial paper — 9,582 — 9,582 Corporate debt securities — 9,533 — 9,533 $ 18,755 $ 19,115 $ — $ 37,870 As of and for the three months ended March 31, 2017 and December 31, 2016, the carrying value of the Company’s short term investments approximates its fair value. |
Balance Sheet Components
Balance Sheet Components | 3 Months Ended |
Mar. 31, 2017 | |
Balance Sheet Components | |
Balance Sheet Components | 4. Balance sheet components Inventory Inventory consisted of the following (in thousands): March 31, December 31, 2017 2016 Raw materials $ 917 $ 699 Work-in-process 1,428 1,144 Finished goods 3,568 3,209 Total inventory $ 5,913 $ 5,052 Property and Equipment, Net Property and equipment, net, consisted of the following (in thousands): March 31, December 31, 2017 2016 Computer equipment and software $ 1,437 $ 1,377 Laboratory and manufacturing equipment 2,659 2,422 Furniture and fixtures 1,442 1,442 Leasehold improvements 7,153 7,153 Total property and equipment, gross 12,691 12,394 Less: accumulated depreciation and amortization (4,605) (4,108) Total property and equipment, net $ 8,086 $ 8,286 Depreciation and amortization expense was $0.5 million for both of the three months ended March 31, 2017 and 2016. Accrued and Other Current Liabilities Accrued and other current liabilities consisted of the following (in thousands): March 31, December 31, 2017 2016 Accrued payroll-related expenses $ 4,111 $ 5,301 Accrued independent sales agent commissions 131 193 Accrued professional fees 1,107 246 Deferred rent 261 261 Other 374 350 Total accrued and other current liabilities $ 5,984 $ 6,351 |
Debt
Debt | 3 Months Ended |
Mar. 31, 2017 | |
Debt | |
Debt | 5. Debt 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 the Company meeting a certain revenue target prior to that date. 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 outstanding $15.0 million loan with Health Care Royalty Partners including a $1.8 million prepayment fee and $0.4 million in interest. 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 the company meeting a certain revenue target prior to that date. 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. As of March 31, 2017, the Company had drawn down $3.0 million under the revolving credit facility. This new revolving credit facility replaced the Company’s $7.5 million accounts receivable credit facility that existed with Silicon Valley Bank, (“SVB”) which, the Company terminated during the quarter and paid a termination fee of $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. As of March 31, 2017, the Company was in compliance with all required covenants. 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. These warrants, considered Level 3 in the fair value hierarchy, were fair valued at $279,000 upon issuance using a Black-Scholes valuation model. The assumptions used in the Black-Scholes model consisted of a 10 year contractual term, interest free rate of 2.58%, dividend yield of 0.0% and volatility of 60.0%. The fair value upon issuance did not materially differ from the fair value at March 31, 2017. The warrants were capitalized as a discount to the initial $20.0 million term loan and will be amortized as interest expense over the term of the agreement which is approximately five years. |
Stock Option Plans
Stock Option Plans | 3 Months Ended |
Mar. 31, 2017 | |
Stock Option Plans | |
Stock Option Plans | 6. Stock Option Plans In April 2015, the Company’s board of directors and stockholders approved the 2015 Equity Incentive plan (the “2015 Plan”), effective June 11, 2015, covering incentive stock options, nonstatutory stock options and restricted stock awards that may be granted to employees, directors and consultants. During the three months ended March 31, 2017, the Company granted to employees 597,180 options with a weighted average grant date fair value of $6.50 per share. This included 268,000 options granted to certain executive officers with a market-based condition. The 268,000 options were valued at an aggregate value of $0.7 million using the Monte Carlo Simulation model, which will be amortized over three years from the date of grant. The aggregate intrinsic value of options exercised was $29,000 and $56,000 for the three months ended March 31, 2017 and 2016, respectively. The weighted-average remaining contractual life of options outstanding was 7.5 years as of March 31, 2017 and December 31, 2016. For vested and expected to vest options, the weighted-average remaining contractual life was 7.5 years as of both March 31, 2017 and December 31, 2016. For the three month period ended March 31, 2017 and 2016, the Company also granted to certain executive officers 71,500 and 143,000 restricted stock-based units, or RSUs, at a grant date fair value of $6.50 and $7.45 per share, respectively. The RSUs have a range of vesting terms from four to five years. Stock‑Based Compensation The fair value of stock options granted to employees is amortized on a straight-line basis over the requisite service period of the award. Stock‑based compensation related to stock options granted to non-employees is recognized as the stock options are earned. The Company recognized total employee-related stockbased compensation expense of $0.7 million and $0.4 million for the three months ended March 31, 2017 and March 31, 2016, respectively. In addition, the Company recognized non-employee stock-based compensation expense of $67,000 and $23,000 for the three months ended March 31, 2017 and March 31, 2016, respectively. The following table summarizes stock‑based compensation expense related to stock options and restricted stock units for the three months ended March 31, 2017 and 2016 included in the condensed statements of operations and comprehensive loss (in thousands): Three Months Ended March 31, 2017 2016 Cost of goods sold $ 45 $ 26 Selling, general and administrative 532 99 Research and development 145 307 Total stock-based compensation expense $ 722 $ 432 As of March 31, 2017, unrecognized compensation expense related to unvested options was $5.8 million, which the Company expects to recognize on a straight‑line basis over a weighted‑average period of 3.0 years. Unrecognized compensation expense related to unvested RSUs was $1.0 million, which the Company expects to recognize on a straight‑line basis over a weighted‑average period of 3.9 years. |
Net Loss per Common Share
Net Loss per Common Share | 3 Months Ended |
Mar. 31, 2017 | |
Net Loss per Common Share | |
Net Loss per Common Share | 7. Net Loss per Common Share As the Company generated net losses for all the periods presented, all potentially dilutive common securities are determined to be anti-dilutive. The following table sets forth the computation of the basic and diluted net loss per share (in thousands, except share and per share data): Three Months Ended March 31, 2017 2016 Numerator: Net loss $ (13,217) $ (12,110) Denominator: Weighted-average common shares outstanding 16,960,172 13,399,949 Less: weighted-average unvested common shares subject to repurchase (1,840) (6,973) Weighted-average shares used to compute net loss per common share, basic and diluted 16,958,332 13,392,976 Net loss per common share, basic and diluted $ (0.78) $ (0.90) The following outstanding shares of potentially dilutive securities have been excluded from diluted net loss per share for the three months ended March 31, 2017 and 2016 because their inclusion would be anti‑dilutive: Three Months Ended 2017 2016 Options to purchase common stock 2,964,802 2,618,303 Restricted stock units 178,507 130,000 Warrants to purchase common stock 187,625 137,007 Total 3,330,934 2,885,310 |
Commitments & Contingencies
Commitments & Contingencies | 3 Months Ended |
Mar. 31, 2017 | |
Commitments and Contingencies. | |
Commitments & Contingencies | 8. Commitments and Contingencies 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. 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. |
Organization and Description 14
Organization and Description of Business (Policies) | 3 Months Ended |
Mar. 31, 2017 | |
Organization and Description of Business | |
Liquidity | Liquidity The Company has incurred net losses from operations since inception and has an accumulated deficit of $159.4 million as of March 31, 2017. The Company expects to incur additional losses and negative cash flows for the foreseeable future. Management believes that its cash and cash equivalents at March 31, 2017 and additional funding, available under the new loan and security agreement with MidCap Financial Trust, and their affiliates (“ MidCap,”) will provide sufficient funds to enable the Company to meet its operating plan through at least the next twelve months. In addition, in July 1, 2016, the Company filed a prospectus supplement for an at-the-market offering (“ATM”) program of up to $25,000,000. 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 planned expenditures may need to be reduced. |
Basis of Presentation | Basis of Presentation The accompanying unaudited condensed financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial information and in accordance with the instructions to Form 10‑Q and Rule 10‑01 of Regulation S‑X. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. The unaudited interim condensed financial statements have been prepared on the same basis as the annual financial statements. In the opinion of management, the accompanying unaudited condensed financial statements reflect all adjustments (consisting only of normal recurring adjustments) considered necessary for a fair statement of the financial position, results of operations and cash flows for the periods presented. The information included in this Quarterly Report on Form 10-Q should be read in conjunction with the audited financial statements and notes thereto included in the Company’s Annual Report on Form 10‑K for the year ended December 31, 2016 and filed with the U.S. Securities and Exchange Commission (the “SEC”). The accompanying year-end balance sheet was derived from the audited financial statements included in the Company’s Annual Report on Form 10‑K for the year ended December 31, 2016. The results for the three months ended March 31, 2017 are not necessarily indicative of the results expected for the full fiscal year or any other periods. |
Summary of Significant Accoun15
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2017 | |
Summary of Significant Accounting Policies | |
Use of Estimates | Use of Estimates The Company’s financial statements have been prepared in conformity with U.S. GAAP. The preparation of the 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 and stock-based compensation. Actual results could differ from those estimates and assumptions. |
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 a letter of credit related to the Company’s facility lease in San Francisco, California. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments The 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 March 31, 2017 and December 31, 2016, 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 long-term debt approximates its fair value. |
Customer Concentration | Customer Concentration Significant customers are those which represent 10% or more of the Company’s total revenue for each period presented in the condensed 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 year ended December 31, 2016 and the three months ended March 31, 2017 and 2016 the Company had no customers that represented 10% or more of its revenue or accounts receivable balances. |
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. 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. |
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, 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 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 fiscal years, and interim periods within those fiscal years, beginning 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 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. Early adoption is 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. 2016‑08, 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. The Company is in the process of evaluating the impact of this new guidance on its financial statements. · 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. · 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, 2016. The adoption of this standard in the current quarter did not have a material impact on the Company’s 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. As a result of adopting ASU No. 2016‑09, the Company has made an accounting policy election to account for forfeitures as they occur. This change has been applied on a modified retrospective basis, with no material impacts on the Company’s financial statements. The adoption of ASU No. 2016‑09 also requires excess tax benefits and tax deficiencies be recorded in the income statement as opposed to additional paid‑in capital when the awards vest or are settled, and has been applied on a prospective basis with no impact on the financial statements as of and for the three months ended March 31, 2017. As a result of the adoption, the Company's increased its total NOLs by $1.0 million on January 1, 2017 related to deferred tax assets that arose directly from tax deductions related to equity compensation greater than compensation recognized for financial reporting purposes. This amount is fully offset by the valuation allowance. The adoption of ASU No. 2016‑09 related to the accounting for minimum statutory withholding tax requirements and cash paid by an employer when directly withholding shares for tax-withholding purposes had no impact on the Company's current consolidated financial statements or on any prior period financial statements presented. · 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 (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
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): March 31, 2017 Level 1 Level 2 Level 3 Total Assets Money market funds $ 18,338 $ — $ — $ 18,338 Commercial paper — 3,598 — 3,598 Corporate debt securities — 6,996 — 6,996 $ 18,338 $ 10,594 $ — $ 28,932 December 31, 2016 Level 1 Level 2 Level 3 Total Assets Money market funds $ 18,755 $ — $ — $ 18,755 Commercial paper — 9,582 — 9,582 Corporate debt securities — 9,533 — 9,533 $ 18,755 $ 19,115 $ — $ 37,870 |
Balance Sheet Components (Table
Balance Sheet Components (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Balance Sheet Components | |
Schedule of Inventory | Inventory consisted of the following (in thousands): March 31, December 31, 2017 2016 Raw materials $ 917 $ 699 Work-in-process 1,428 1,144 Finished goods 3,568 3,209 Total inventory $ 5,913 $ 5,052 |
Schedule of Property and Equipment, Net | Property and equipment, net, consisted of the following (in thousands): March 31, December 31, 2017 2016 Computer equipment and software $ 1,437 $ 1,377 Laboratory and manufacturing equipment 2,659 2,422 Furniture and fixtures 1,442 1,442 Leasehold improvements 7,153 7,153 Total property and equipment, gross 12,691 12,394 Less: accumulated depreciation and amortization (4,605) (4,108) Total property and equipment, net $ 8,086 $ 8,286 |
Schedule of Accrued and Other Current Liabilities | Accrued and other current liabilities consisted of the following (in thousands): March 31, December 31, 2017 2016 Accrued payroll-related expenses $ 4,111 $ 5,301 Accrued independent sales agent commissions 131 193 Accrued professional fees 1,107 246 Deferred rent 261 261 Other 374 350 Total accrued and other current liabilities $ 5,984 $ 6,351 |
Stock Option Plans (Tables)
Stock Option Plans (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
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 | 2016, respectively. The following table summarizes stock‑based compensation expense related to stock options and restricted stock units for the three months ended March 31, 2017 and 2016 included in the condensed statements of operations and comprehensive loss (in thousands): Three Months Ended March 31, 2017 2016 Cost of goods sold $ 45 $ 26 Selling, general and administrative 532 99 Research and development 145 307 Total stock-based compensation expense $ 722 $ 432 |
Net Loss per Common Share (Tabl
Net Loss per Common Share (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
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 (in thousands, except share and per share data): Three Months Ended March 31, 2017 2016 Numerator: Net loss $ (13,217) $ (12,110) Denominator: Weighted-average common shares outstanding 16,960,172 13,399,949 Less: weighted-average unvested common shares subject to repurchase (1,840) (6,973) Weighted-average shares used to compute net loss per common share, basic and diluted 16,958,332 13,392,976 Net loss per common share, basic and diluted $ (0.78) $ (0.90) |
Schedule of Potentially Dilutive Securities Outstanding Excluded from Computation of Diluted Shares Outstanding | The following outstanding shares of potentially dilutive securities have been excluded from diluted net loss per share for the three months ended March 31, 2017 and 2016 because their inclusion would be anti‑dilutive: Three Months Ended 2017 2016 Options to purchase common stock 2,964,802 2,618,303 Restricted stock units 178,507 130,000 Warrants to purchase common stock 187,625 137,007 Total 3,330,934 2,885,310 |
Organization and Description 20
Organization and Description of Business - Additional Information (Detail) - USD ($) | Jul. 01, 2016 | Mar. 31, 2017 | Dec. 31, 2016 |
Organization And Nature Of Operations [Line Items] | |||
Accumulated deficit | $ 159,433,000 | $ 146,216,000 | |
Maximum | |||
Organization And Nature Of Operations [Line Items] | |||
ATM Offering | $ 25,000,000 |
Summary of Significant Accoun21
Summary of Significant Accounting Policies - Additional Information (Detail) $ in Thousands | Jan. 01, 2017USD ($) | Mar. 31, 2017USD ($)segmentcustomer | Dec. 31, 2016USD ($)customer |
Significant Accounting Policies [Line Items] | |||
Short-term Investments | $ 9,519 | $ 10,737 | |
Number of operating segments | segment | 1 | ||
ASU 2016-09 | |||
Significant Accounting Policies [Line Items] | |||
Amount recognized related to deferred tax assets arose directly from tax deductions related to equity compensation | $ 1,000 | ||
Customer Concentration Risk | |||
Significant Accounting Policies [Line Items] | |||
Number of Customers | customer | 0 | 0 | |
Revenue | Customer Concentration Risk | |||
Significant Accounting Policies [Line Items] | |||
Concentration risk, percentage | 10.00% | 10.00% | |
Accounts Receivable, Net | Customer Concentration Risk | |||
Significant Accounting Policies [Line Items] | |||
Concentration risk, percentage | 10.00% | 10.00% |
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 | Mar. 31, 2017 | Dec. 31, 2016 |
Assets | ||
Assets | $ 28,932 | $ 37,870 |
Level 1 | ||
Assets | ||
Assets | 18,338 | 18,755 |
Level 2 | ||
Assets | ||
Assets | 10,594 | 19,115 |
Money Market Funds | ||
Assets | ||
Assets | 18,338 | 18,755 |
Money Market Funds | Level 1 | ||
Assets | ||
Assets | 18,338 | 18,755 |
Commercial Paper | ||
Assets | ||
Assets | 3,598 | 9,582 |
Commercial Paper | Level 2 | ||
Assets | ||
Assets | 3,598 | 9,582 |
Corporate Debt Securities | ||
Assets | ||
Assets | 6,996 | 9,533 |
Corporate Debt Securities | Level 2 | ||
Assets | ||
Assets | $ 6,996 | $ 9,533 |
Balance Sheet Components - Sche
Balance Sheet Components - Schedule of Inventory (Detail) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Balance Sheet Components | ||
Raw materials | $ 917 | $ 699 |
Work-in-process | 1,428 | 1,144 |
Finished goods | 3,568 | 3,209 |
Total inventory | $ 5,913 | $ 5,052 |
Balance Sheet Components - Sc24
Balance Sheet Components - Schedule of Property and Equipment, Net (Detail) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Dec. 31, 2016 | |
Property, Plant and Equipment [Line Items] | |||
Total property and equipment, gross | $ 12,691 | $ 12,394 | |
Less: accumulated depreciation and amortization | (4,605) | (4,108) | |
Total property and equipment, net | 8,086 | 8,286 | |
Depreciation and amortization | 497 | $ 484 | |
Computer Equipment and Software | |||
Property, Plant and Equipment [Line Items] | |||
Total property and equipment, gross | 1,437 | 1,377 | |
Laboratory and Manufacturing Equipment | |||
Property, Plant and Equipment [Line Items] | |||
Total property and equipment, gross | 2,659 | 2,422 | |
Furniture and Fixtures | |||
Property, Plant and Equipment [Line Items] | |||
Total property and equipment, gross | 1,442 | 1,442 | |
Leasehold Improvements | |||
Property, Plant and Equipment [Line Items] | |||
Total property and equipment, gross | $ 7,153 | $ 7,153 |
Balance Sheet Components - Sc25
Balance Sheet Components - Schedule of Accrued and Other Current Liabilities (Detail) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Balance Sheet Components | ||
Accrued payroll-related expenses | $ 4,111 | $ 5,301 |
Accrued independent sales agent commissions | 131 | 193 |
Accrued professional fees | 1,107 | 246 |
Deferred rent | 261 | 261 |
Other | 374 | 350 |
Total accrued and other current liabilities | $ 5,984 | $ 6,351 |
Debt - Additional Information (
Debt - Additional Information (Detail) - USD ($) | Mar. 10, 2017 | Mar. 31, 2017 |
Mid Cap | Revolving Credit Facility | ||
Debt Instrument [Line Items] | ||
Maximum loan amount | $ 10,000,000 | |
Additional loan amount | $ 10,000,000 | |
Drawn amount | $ 3,000,000 | |
Term loan rate (as a percent) | 3.25% | |
Applicable margin (as a percent) | 1.50% | |
Silicon Valley Bank | Accounts Receivable Credit Facility | ||
Debt Instrument [Line Items] | ||
Drawn amount | 7,500,000 | |
Termination fee | $ 150,000 | |
Term loan | ||
Debt Instrument [Line Items] | ||
Common stock drawdown percent of amount drawn | 2.00% | |
Term loan | HealthCare Royalty Partners | ||
Debt Instrument [Line Items] | ||
Repayments Of Debt | $ 15,000,000 | |
Payments Of Debt Extinguishment Costs | 1,800,000 | |
Interest Paid | 400,000 | |
Term loan | Mid Cap | ||
Debt Instrument [Line Items] | ||
Maximum loan amount | $ 30,000,000 | |
Term loan rate (as a percent) | 6.50% | |
Applicable margin (as a percent) | 1.50% | |
Loan term period | 36 months | |
Frequency periodic payment of loan | monthly | |
Tranche 1 | ||
Debt Instrument [Line Items] | ||
Warrants issued to purchase of shares | 50,618 | |
Exercise price of warrants | $ 7.90 | |
Tranche 1 | Mid Cap | ||
Debt Instrument [Line Items] | ||
Drawn amount | $ 20,000,000 | |
Tranche 1 | Mid Cap | HealthCare Royalty Partners | ||
Debt Instrument [Line Items] | ||
Loan paid off | $ 17,200,000 | |
Tranche 2 | ||
Debt Instrument [Line Items] | ||
Loan term period | 5 years | |
Tranche 2 | Level 3 | ||
Debt Instrument [Line Items] | ||
Warrants liability | $ 279,000 | |
Assumptions used in Black-Sholes model | ||
Contractual term | 10 years | |
Interest free rate | 2.58% | |
Dividend yield | 0.00% | |
Volatility | 60.00% | |
Tranche 2 | Mid Cap | ||
Debt Instrument [Line Items] | ||
Maximum loan amount | $ 10,000,000 |
Stock Option Plans - Additional
Stock Option Plans - Additional Information (Detail) - USD ($) | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | Dec. 31, 2016 | |
Aggregate intrinsic value of options exercised | $ 29,000 | $ 56,000 | |
Weighted-average remaining contractual life of options outstanding | 7 years 6 months | 7 years 6 months | |
Weighted-average remaining contractual life of options outstanding, vested and expected to vest | 7 years 6 months | 7 years 6 months | |
Employees | |||
Stock options granted | 597,180 | ||
Weighted average grant date fair value of options, granted | $ 6.50 | ||
Aggregate intrinsic value of options exercised | $ 700,000 | ||
Amortized period | 3 years | ||
Executive | |||
Stock options granted | 268,000 | ||
Restricted Stock Units | Executive | |||
Restricted stock units, granted | 71,500 | 143,000 | |
Restricted stock units, granted fair value | $ 6.50 | $ 7.45 | |
Restricted Stock Units | Executive | Minimum | |||
Rrestricted stock unis, vesting term | 4 years | 4 years | |
Restricted Stock Units | Executive | Maximum | |||
Rrestricted stock unis, vesting term | 5 years | 5 years |
Stock Option Plans - Stock-base
Stock Option Plans - Stock-based Compensation (Detail) - USD ($) | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Total stock-based compensation expense | $ 722,000 | $ 432,000 |
Unrecognized compensation expense | ||
Unrecognized compensation expense related to unvested options | $ 5,800,000 | |
Weighted-average expected period to recognize of compensation expense, term | 3 years | |
Cost of Goods Sold | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Total stock-based compensation expense | $ 45,000 | 26,000 |
Selling, General and Administrative | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Total stock-based compensation expense | 532,000 | 99,000 |
Research and Development | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Total stock-based compensation expense | 145,000 | 307,000 |
Employees | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Total stock-based compensation expense | 700,000 | 400,000 |
Non-employees | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Total stock-based compensation expense | $ 67,000 | $ 23,000 |
Restricted Stock Units | ||
Unrecognized compensation expense | ||
Weighted-average expected period to recognize of compensation expense, term | 3 years 10 months 24 days | |
Unrecognized compensation expense related to RSUs | $ 1,000,000 |
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 | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Numerator: | ||
Net loss | $ (13,217) | $ (12,110) |
Denominator: | ||
Weighted-average common shares outstanding | 16,960,172 | 13,399,949 |
Less: weighted-average unvested common shares subject to repurchase | (1,840) | (6,973) |
Weighted-average shares used to compute net loss per common share, basic and diluted | 16,958,332 | 13,392,976 |
Net loss per common share, basic and diluted | $ (0.78) | $ (0.90) |
Net Loss per Common Share - S30
Net Loss per Common Share - Schedule of Potentially Dilutive Securities Outstanding Excluded from Computation of Diluted Shares Outstanding (Detail) - shares | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of diluted net loss per share | 3,330,934 | 2,885,310 |
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 | 2,964,802 | 2,618,303 |
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 | 178,507 | 130,000 |
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 | 187,625 | 137,007 |