Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Feb. 28, 2018 | Jun. 30, 2017 | |
Document And Entity Information | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2017 | ||
Document Fiscal Year Focus | 2,017 | ||
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 | $ 119,135,219 | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 17,204,000 |
Balance Sheets
Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Current assets: | ||
Cash and cash equivalents | $ 17,962 | $ 28,300 |
Short-term investments | 3,040 | 10,737 |
Restricted cash - current | 181 | 181 |
Accounts receivable, net | 7,421 | 5,782 |
Inventory | 7,436 | 5,052 |
Prepaid expenses and other current assets | 1,274 | 1,088 |
Total current assets | 37,314 | 51,140 |
Restricted cash classified as long-term assets | 727 | 909 |
Property and equipment, net | 7,169 | 8,286 |
Other long-term assets | 285 | |
Total assets | 45,495 | 60,335 |
Current liabilities: | ||
Accounts payable | 3,598 | 2,192 |
Accrued and other current liabilities | 5,179 | 6,351 |
Short-term debt | 5,859 | 1,362 |
Total current liabilities | 14,636 | 9,905 |
Deferred rent | 2,569 | 2,721 |
Deferred revenue - long term | 36 | |
Long-term debt | 29,116 | 13,261 |
Total liabilities | 46,357 | 25,887 |
Commitments and contingencies (Note 7) | ||
Stockholders' equity (deficit): | ||
Preferred stock, $0.001 par value - 10,000,000 shares authorized at December 31, 2017 and December 31, 2016, no shares issued and outstanding at December 31, 2017 and December 31, 2016 | ||
Common stock, $0.001 par value - 100,000,000 shares authorized at December 31, 2017 and December 31, 2016 17,179,258 and 16,950,940 shares issued and outstanding at December 31, 2017 and December 31, 2016 | 17 | 17 |
Additional paid-in capital | 185,255 | 180,647 |
Accumulated deficit | (186,134) | (146,216) |
Total stockholders' equity (deficit) | (862) | 34,448 |
Total liabilities and stockholders' equity (deficit) | $ 45,495 | $ 60,335 |
Balance Sheets (Parenthetical)
Balance Sheets (Parenthetical) - $ / shares | Dec. 31, 2017 | Dec. 31, 2016 | Jun. 18, 2015 |
Balance Sheets | |||
Preferred stock, par value | $ 0.001 | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized | 10,000,000 | 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 | $ 0.001 |
Common stock, shares authorized | 100,000,000 | 100,000,000 | 100,000,000 |
Common stock, shares issued | 17,179,258 | 16,950,940 | |
Common stock, shares outstanding | 17,179,258 | 16,950,940 |
Statements of Operations and Co
Statements of Operations and Comprehensive Loss - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Statements of Operations and Comprehensive Loss | |||
Revenue | $ 39,619 | $ 32,461 | $ 21,031 |
Cost of goods sold | 11,741 | 8,824 | 7,733 |
Gross profit | 27,878 | 23,637 | 13,298 |
Operating expenses: | |||
Research and development | 9,018 | 9,908 | 7,869 |
Selling, general and administrative | 54,119 | 52,409 | 40,636 |
Total operating expenses | 63,137 | 62,317 | 48,505 |
Loss from operations | (35,259) | (38,680) | (35,207) |
Interest expense | (2,370) | (2,018) | (1,881) |
Interest income | 222 | 133 | 28 |
Other expense, net | (208) | (44) | (510) |
Loss on extinguishment of debt | (2,303) | ||
Net loss and comprehensive loss | $ (39,918) | $ (40,609) | $ (37,570) |
Net loss per common share, basic and diluted | $ (2.34) | $ (2.73) | $ (4.94) |
Weighted-average shares used to compute net loss per common share, basic and diluted | 17,051,037 | 14,868,501 | 7,606,172 |
Statements of Convertible Prefe
Statements of Convertible Preferred Stock and Stockholders' Equity (Deficit) - USD ($) $ in Thousands | Common Stock [Member]At-the-market offering | Common Stock [Member] | Additional Paid-In Capital [Member]At-the-market offering | Additional Paid-In Capital [Member] | Accumulated Deficit [Member] | Convertible Preferred Stock [Member] | At-the-market offering | Total |
Beginning balance at Dec. 31, 2014 | $ 1 | $ 2,209 | $ (68,037) | $ (65,827) | ||||
Beginning balance at Dec. 31, 2014 | $ 73,755 | |||||||
Beginning balance, shares at Dec. 31, 2014 | 711,249 | |||||||
Beginning balance, shares at Dec. 31, 2014 | 6,056,403 | |||||||
Issuance of convertible preferred stock, net of issuance costs | $ 22,769 | |||||||
Issuance of convertible preferred stock, net of issuance costs, shares | 1,596,212 | |||||||
Conversion of Convertible Preferred Stock upon IPO | $ 8 | 96,516 | $ (96,524) | 96,524 | ||||
Conversion of Convertible Preferred Stock upon IPO, shares | 7,979,332 | (7,652,615) | ||||||
Conversion of preferred stock warrants to common stock warrants | 608 | 608 | ||||||
Proceeds from issuance of common stock, net | $ 4 | 47,215 | 47,219 | |||||
Proceeds from issuance of common stock, net, shares | 4,600,000 | |||||||
Exercise of common stock options | 139 | 139 | ||||||
Exercise of common stock options, shares | 102,250 | |||||||
Repurchase of early exercised options (in shares) | (473) | |||||||
Repurchase of early exercised options | 1 | 1 | ||||||
Vesting of early exercise options | 2 | 2 | ||||||
Stock-based compensation expense | 1,249 | 1,249 | ||||||
Net loss | (37,570) | (37,570) | ||||||
Ending balance at Dec. 31, 2015 | $ 13 | 147,937 | (105,607) | 42,343 | ||||
Ending balance, shares at Dec. 31, 2015 | 13,392,358 | |||||||
Proceeds from issuance of common stock, net | $ 3 | 29,675 | 29,678 | |||||
Proceeds from issuance of common stock, net, shares | 3,220,000 | |||||||
Exercise of common stock options | $ 1 | 732 | 733 | |||||
Exercise of common stock options, shares | 338,582 | |||||||
Stock-based compensation expense | 2,303 | 2,303 | ||||||
Net loss | (40,609) | (40,609) | ||||||
Ending balance at Dec. 31, 2016 | $ 17 | 180,647 | (146,216) | $ 34,448 | ||||
Ending balance, shares at Dec. 31, 2016 | 16,950,940 | 16,950,940 | ||||||
Proceeds from issuance of common stock, net | $ 183 | $ 183 | ||||||
Proceeds from issuance of common stock, net, shares | 35,400 | |||||||
Exercise of common stock options | 526 | $ 526 | ||||||
Exercise of common stock options, shares | 165,687 | 165,687 | ||||||
Issuance of common stock due to vesting of restricted stock units (in shares) | 27,231 | |||||||
Issuance of common stock warrants related to term loan facilities | 556 | $ 556 | ||||||
Stock-based compensation expense | 3,343 | 3,343 | ||||||
Net loss | (39,918) | (39,918) | ||||||
Ending balance at Dec. 31, 2017 | $ 17 | $ 185,255 | $ (186,134) | $ (862) | ||||
Ending balance, shares at Dec. 31, 2017 | 17,179,258 | 17,179,258 |
Statements of Convertible Pref6
Statements of Convertible Preferred Stock and Stockholders' Equity (Deficit) (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Common Stock [Member] | |||
Net of stock issuance costs | $ 590 | $ 7,988 | |
At-the-market offering | |||
Net of stock issuance costs | $ 125 | ||
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, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Cash flows from operating activities | |||
Net loss | $ (39,918) | $ (40,609) | $ (37,570) |
Adjustments to reconcile net loss to net cash used in operating activities: | |||
Depreciation and amortization | 1,992 | 1,995 | 1,710 |
Stock-based compensation | 3,343 | 2,303 | 1,249 |
Changes in fair value of convertible preferred stock warrant liability | 472 | ||
Provision for (recovery of) doubtful accounts | (23) | 136 | 216 |
Non-cash portion of extinguishment loss | 352 | ||
Payment of original issue discount | (210) | ||
Non-cash interest expense | 122 | 143 | 143 |
Accretion of premium (discount) on marketable securities | (17) | 9 | |
Changes in operating assets and liabilities: | |||
Accounts receivable | (1,581) | (2,300) | (1,033) |
Inventory | (2,384) | 130 | (911) |
Prepaid expenses and other current assets | (186) | (165) | 1,568 |
Other non-current assets | (285) | ||
Accounts payable | 1,372 | (284) | 1,349 |
Accrued and other current liabilities | (1,310) | 2,107 | 1,537 |
Deferred rent | (152) | (89) | 105 |
Net cash used in operating activities | (38,885) | (36,624) | (31,165) |
Cash flows from investing activities | |||
Purchases of property and equipment | (844) | (1,037) | (3,748) |
Purchases of marketable securities | (12,503) | (10,746) | |
Maturities of marketable securities | 20,217 | ||
Net cash used in (provided by) investing activities | 6,870 | (11,783) | (3,748) |
Cash flows from financing activities | |||
Proceeds from revolving credit facility, net of payment | 5,859 | ||
Proceeds from issuance of common stock upon initial public offering, net of issuance costs | 47,219 | ||
Proceeds from secondary offering and common stock offerings from at-the-market equity offering, net of offering costs | 203 | 29,678 | |
Proceeds from issuance of long-term debt, net of issuance costs | 29,672 | ||
Proceeds from issuance of long-term debt-related party, net of issuance costs | 5,000 | ||
Repayments of original proceeds from long-term debt-related party | (14,765) | ||
Proceeds from issuance of common stock upon exercise of stock options | 526 | 733 | 139 |
Payments to repurchase early exercised common stock | (1) | ||
Proceeds from issuance of convertible preferred stock, net of issuance costs | 22,769 | ||
Net cash provided by financing activities | 21,495 | 30,411 | 75,126 |
Net increase (decrease) in cash and cash equivalents | (10,520) | (17,996) | 40,213 |
Cash and cash equivalents and restricted cash, beginning of year | 29,390 | 47,386 | 7,173 |
Cash and cash equivalents and restricted cash, end of year | 18,870 | 29,390 | 47,386 |
Reconciliation of cash, cash equivalents and restricted cash as shown in the consolidated statement of cash flows | |||
Total cash, cash equivalents and restricted cash | 29,390 | 47,386 | 7,173 |
Supplemental disclosures of cash flow information: | |||
Interest paid to related party | 377 | 1,875 | 1,740 |
Cash paid for interest | 1,536 | ||
Non-cash investing and financing activities | |||
Purchases of property and equipment in accounts payable and accrued liabilities at period end | 59 | $ 48 | 78 |
At-the-market offering in accounts payable and accrued liabilities | $ 20 | ||
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 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2017 | |
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, during 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 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, 2017, 2016, and 2015. The Company had total short-term investments of $3.0 million and $10.7 million as of December 31, 2017 and 2016, respectively. Accounts Receivable Accounts receivable are recorded at the invoiced amount and do not bear interest. 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 $268,000 and $300,000 as of December 31, 2017 and 2016, respectively. The Company wrote off $0, $6,000 and $165,000 as uncollectible accounts receivables to the allowance for doubtful accounts during the years ended December 31, 2017, 2016, and 2015, 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, 2017, 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 debt approximates its fair value. Concentrations of Credit Risk Financial instruments that potentially subject the Company to concentrations of credit risk at December 31, 2017 and 2016 consist primarily of cash and cash equivalents, which are held primarily by one domestic financial institution and exceeds federally insured limits. 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 December 31, 2017 and 2016 and for the years ended December 31, 2017, 2016, and 2015, the Company had no customers that represented 10% or more of its revenue or accounts receivable balances. Inventory Inventories are stated at the lower of cost or 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 5 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 (deficit) 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. In certain circumstances, the Company enters into arrangements in which multiple deliverables are provided to customers. Under multiple deliverable arrangements, the Company recognizes revenue in accordance with the principles described above and allocates the revenue based on the relative selling price of each deliverable, which is based on stand alone selling price. 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, 2017. Historical warranty costs have been insignificant. Medical Device Excise Tax In March 2010, the Patient Protection and Affordable Care Act 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 and suspended again under the 2018 short-term spending bill. Under this bill, this tax was suspended through December 31, 2020, unless subsequent legislation changes this provision. 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 ultimately vests. The Company’s stock-based compensation is reduced for actual forfeitures in the period and upon the actual date of forfeiture. 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. The majority of the Company’s assets are maintained in the United States. The Company derives its revenue primarily from sales to customers in the United States, based upon the billing address of the customer. In June 2017, the Company started selling into Asia with sales through December 31, 2017 being immaterial. 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 will adopt the new revenue standard on January 1, 2018, using the modified retrospective method. The new revenue standard is principles-based and interpretation of those principles may vary from company to company based on their unique circumstances. It is possible that interpretation, industry practice, and guidance may evolve as companies and the accounting profession work to implement this new standard. The Company has determined that the new guidance will not have a material impact on its financial statements. · 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 tho se annual periods, beginning after December 15, 2016. The adoption of this standard in the first quarter of 2017 did not 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 (Topic 825) , 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 first quarter of 2017 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 twelve months regardless of their classification. Leases with a term of twelve 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 in the first quarter of 2017, 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 impact 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 statement of operations 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 year ended December 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 a 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 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 (Topic 326) . 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. The amendments in ASU No. 2016‑15 should be applied using a retrospective transition method to each period presented. The standard is effective for public entities for annual periods beginning after December 15, 2017. The Company will adopt this standard beginning on January 1, 2018 and as a result, expects to reclassify the $2.0 million debt extinguishment cost paid in cash in the first quarter of 2017 from operating activities to financing activities. · 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 early adopted this standard in the fourth quarter of 2017. The adoption is currently reflected in the Company’s financial statements. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2017 | |
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. 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 for similar securities. Prior to the 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, 2017 and December 31, 2016 respectively, the Company had no 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, 2017 Level 1 Level 2 Level 3 Total Assets Money market funds $ 13,071 $ — $ — $ 13,071 Commercial paper — 3,763 — 3,763 Corporate debt securities — 1,753 — 1,753 $ 13,071 $ 5,516 $ — $ 18,587 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 December 31, 2017 and 2016, the carrying value of the Company’s short term investments approximates its fair value. |
Balance Sheet Components
Balance Sheet Components | 12 Months Ended |
Dec. 31, 2017 | |
Balance Sheet Components | |
Balance Sheet Components | 4. Inventory Inventory consisted of the following (in thousands): December 31, 2017 2016 Raw materials $ 1,606 $ 699 Work-in-process 1,860 1,144 Finished goods 3,970 3,209 Total inventory $ 7,436 $ 5,052 Prepaid expenses and other current assets Prepaid expenses and other current assets consisted of the following (in thousands): December 31, 2017 2016 Prepaid expenses $ 1,252 $ 1,004 Other 22 84 Total prepaid expenses and other assets $ 1,274 $ 1,088 Property and Equipment, Net Property and equipment, net consisted of the following (in thousands): December 31, 2017 2016 Computer equipment and software $ 1,368 $ 1,330 Laboratory and manufacturing equipment 3,008 2,422 Furniture and fixtures 1,516 1,442 Leasehold improvements 7,155 7,153 Assets in progress 167 47 Total property and equipment, gross 13,214 12,394 Less: accumulated depreciation and amortization (6,045) (4,108) Total property and equipment, net $ 7,169 $ 8,286 Depreciation and amortization expense was $2.0 million during each of the years ended December 31, 2017 and 2016, and $1.7 million during the year ended December 31, 2015. Accrued and Other Current Liabilities Accrued and other current liabilities consisted of the following (in thousands): December 31, 2017 2016 Accrued payroll-related expenses $ 3,777 $ 5,301 Accrued independent sales agent commissions 181 193 Accrued professional fees 501 246 Deferred rent 261 261 Other 459 350 Total accrued and other current liabilities $ 5,179 $ 6,351 |
Related Party Loan Agreement
Related Party Loan Agreement | 12 Months Ended |
Dec. 31, 2017 | |
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 was 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. The Company was permitted to make a voluntary prepayment in full, but not in part, prior to December 31, 2020, including all 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 were 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 imposed 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 did not include any financial covenants. The loan agreement contained a material adverse event clause which provided that an event of default would occur if, among other triggers, there occurred any circumstance that would reasonably expect 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. 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 was amortized as interest expense in the straight-line method over the term of the loan. On March 10, 2017, the Company entered into a new credit and security agreement with MidCap Financial Trust and affiliates (“MidCap”) and used $17.2 million received under the new term loan to terminate the loan agreement with HRCP and payoff in full the loan of $15 million and $2.2 million in associated prepayment fees and interest. The Company recorded interest expense of $0.4 million and $2.0 million on the loan, for the years ended December 31, 2017 and 2016, respectively. |
Debt
Debt | 12 Months Ended |
Dec. 31, 2017 | |
Debt | |
Debt | 6. MidCap credit and security agreement: 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. The Tranche 1 term loan accrues 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, subject to extension to October 1, 2019, if the Company achieves a certain revenue target, 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. The Company also terminated its accounts receivable credit facility with Silicon Valley Bank which was never drawn down. The transaction was accounted for as a debt extinguishment and a loss of $2.3 million was accounted for as loss on extinguishment of debt in the income statement. The loss amount includes a $1.8 million prepayment fee paid to HCRP, a $150,000 fee paid to Silicon Valley Bank for termination of the accounts receivable facility and a $0.3 million non-cash expense related to unamortized issuance costs. On September 26, 2017, the Company amended the credit and security agreement with MidCap and borrowed the second term loan of $10.0 million (“Tranche 2”). The Tranche 2 term loan accrues 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, subject to extension to October 1, 2019, if the Company achieves a certain revenue target, until paid in full on March 1, 2022. The Company also entered into a separate credit and security agreement with MidCap on March 10, 2017 that provides for a revolving credit facility of up to $10.0 million based on the eligible accounts receivable and inventory balances, as amended on September 26, 2017. 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 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. As of December 31, 2017, the Company had drawn down $5.9 million under the revolving credit facility. 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 requirements on a trailing twelve month basis. The minimum Net Revenue requirements on a trailing twelve month basis for 2018 is $40,488,151 for the period ending March 31, 2018, $42,248,214 for the period ending June 30, 2018, $46,574,986 for the period ending September 30, 2018, and $50,000,000 for the period ending December 31, 2018. Additionally, the credit and security agreement with MidCap, includes customary events of default, including failure to pay amounts due, breaches of covenants and warranties, and material adverse effect events . If an event of default occurs, MidCap may require immediate repayment of all amounts due. As of December 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. See Note 8 – Warrants for further details. Future payments due under the Company’s term loans as of December 31, 2017 are as follow (in thousands): Year ending December 31, 2018 2,490 2019 14,644 2020 10,194 2021 7,105 Thereafter 1,690 36,123 Less: Amount representing interest (6,122) Less: Amount representing debt discount (1) (885) Total $ 29,116 (1) Interest expense is based on a 6.5% base rate plus one month Libor rate Silicon Valley Bank Accounts Receivable Credit Facility: In February 2015, the Company entered into an accounts receivable credit facility with Silicon Valley Bank (“SVB”) that allowed the Company to borrow the lesser of $7.5 million or an amount representing up to 80% of eligible accounts receivable. In March 2017, this facility was replaced by the MidCap facility noted above. The Company paid a fee of $150,000 to terminate this facility. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2017 | |
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, 2017 and December 31, 2016. 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 was entitled to a $2.6 million tenant allowance in connection with the lease entered into in November 2014. The Company utilized the entire $2.6 million allowance in connection with 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, 2017 (in thousands): Year ending December 31: 2018 $ 2,178 2019 2,243 2020 2,310 2021 2,380 2022 2,451 Thereafter 4,680 Total $ 16,242 The Company’s rent expense was $2.0 million for the years ended December 31, 2017, 2016, and 2015, 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 us, our Chief Executive Officer, and our Chief Financial Officer. The complaint alleges that the defendants made false or misleading statements to investors regarding our business prospects. The complaint purports to assert claims for violation of Sections 10(b) and 20(a) of the Exchange Act of 1934, and SEC Rule 10b‑5 on behalf of a purported class consisting of all purchasers of our common stock between July 19, 2016 and November 3, 2016, and seeks unspecified compensatory damages, attorney fees and costs, and other relief. On May 30, 2017, the Court appointed Mike Paciga as lead plaintiff. The lead plaintiff filed an amended complaint on July 31, 2017. Defendants filed a motion to dismiss on September 14, 2017, the lead plaintiff filed his opposition to the motion on October 30, 2017 and Defendants filed a reply brief on December 4, 2017. The motion to dismiss is currently scheduled for hearing on April 6, 2018. 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 Company’s financial position, results of operations or cash flows. 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, 2017 | |
Warrants | |
Warrants | 8. Common Stock Warrants In connection with Tranche 1 of the MidCap term loan facility, 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. These warrants, which were recorded within stockholders’ equity (deficit), 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 was recorded 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. In connection with the Tranche 2 term loan, the Company issued warrants to purchase an aggregate of 47,790 shares of the Company’s common stock, at an exercise price equal to $8.37 per share. These warrants, which were recorded within stockholders’ equity (deficit), were fair valued at $278,000 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 2.24%, dividend yield of 0.0% and volatility of 60.0%. The fair value was recorded as a discount to the initial $10.0 million term loan and will be amortized as interest expense over the term of the agreement, which is approximately five years. 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 stockholders’ equity (deficit) 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 during the year ended December 31, 2015 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, 2017 | |
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. 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. The net proceeds 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, 2017. Secondary Offering On July 1, 2016, the Company filed a shelf registration statement on Form S-3 (Registration No. 333-212395) with the SEC to offer for sale up to an aggregate of $100.0 million of common stock, preferred stock, depositary shares, warrants and/or units in one or more offerings and in any combinations. On that date, the Company also filed a prospectus supplement for an ATM Offering of up to $25.0 million. On August 2, 2016, the Company completed a secondary offering of 3,220,000 shares of its common stock at a price to the public of $10.00 per share, which included the exercise in full by the underwriters of their option to purchase an additional 420,000 shares of its common stock. The total net proceeds from this offering were $29.7 million, after deducting underwriting discounts and commissions and offering expenses of $0.6 million payable by the Company. |
Stock Option Plans
Stock Option Plans | 12 Months Ended |
Dec. 31, 2017 | |
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 in addition to 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 25% upon one year of continued service to the Company, with the remainder in monthly increments over three 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, 2017, there were 4,430,892 shares authorized for issuance under the Plans, of which 929,940 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 and restricted stock unit activities and related information: Options Outstanding RSUs Outstanding Weighted- Weighted- Weighted- Average Average Average Shares Exercise Aggregate Grant Date Remaining Aggregate Available Number of Price Per Intrinsic Number of Fair Value Per Contractual Intrinsic for Grant Shares Share Value Shares Share Terms Value (in thousands) (in years) (in thousands) Balances at December 31, 2016 1,198,856 2,445,600 $ 6.86 $ 2,920 131,807 $ 7.82 Options authorized 847,547 — . — Options granted (1,227,205) 1,227,205 $ 7.29 — RSUs awarded (183,657) 183,657 6.61 Options exercised — (165,687) $ 3.18 — RSUs released (36,804) 4.47 Options cancelled 274,426 (274,426) $ 9.22 — RSUs forfeited/canceled 19,973 (10,400) 7.45 Balances at December 31, 2017 929,940 3,232,692 $ 7.01 $ 2,890 268,260 $ 6.84 1.53 $ 1,663 Options exercisable—December 31, 2017 1,489,787 $ 6.02 $ 2,686 Options vested and expected to vest—December 31, 2017 3,232,692 $ 7.01 $ 2,890 RSUs vested and expected to vest—December 31, 2017 268,260 $ 6.84 1.43 $ 1,663 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 $0.7 million, $2.3 million and $0.8 million for the years ended December 31, 2017, 2016, and 2015, respectively. The weighted-average grant-date fair value of options granted during the years ended December 31, 2017, 2016, and 2015 was $7.29, $3.43 and $4.82 per share, respectively. As of December 31, 2017 and 2016, the weighted-average remaining contractual life of options outstanding was 7.0 and 7.5 years, respectively, and for options vested and expected to vest, was 7.0 and 7.5 years, respectively. The options outstanding, vested and currently exercisable by exercise price under the 2005 and 2015 Plans at December 31, 2017 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 $1.30-2.78 228,049 2.8 $ 1.43 228,049 $ 1.43 $3.15 503,113 5.2 $ 3.15 455,914 $ 3.15 $4.81-6.50 799,835 7.6 $ 6.05 203,489 $ 5.24 $6.75-7.45 558,200 7.5 $ 7.32 204,657 $ 7.32 $7.60-8.40 468,713 8.7 $ 8.16 68,865 $ 8.26 $8.95-13.00 500,920 7.6 $ 10.93 229,696 $ 11.33 $13.47-15.91 173,862 7.5 $ 14.62 99,117 $ 14.87 3,232,692 7.0 $ 7.01 1,489,787 $ 6.02 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. As of December 31, 2017 and 2016, there were zero and 2,661 shares of common stock outstanding, respectively, subject to the Company’s right of repurchase. The weighted-average exercise price for the 2,661 shares of common stock was $2.59 per share. Employee Stock-Based Compensation Stock-based compensation expense recognized during the years ended December 31, 2017, 2016, and 2015, includes compensation expense for stock-based awards granted to employees based on the grant date fair value of $3.1 million, $2.2 million, and $1.1 million respectively. As of December 31, 2017 and 2016, there were total unamortized compensation costs of $6.2 million and $4.3 million, respectively, related to unvested stock options which the Company expects to recognize over a period of approximately 2.8 years and 3.1 years, respectively. As of December 31, 2017 and 2016, there were total unamortized compensation costs of $1.3 million and $0.7 million, respectively related to unvested RSUs which the Company expects to recognize over a period of approximately 2.3 years and 3.8 years, respectively 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 the Company’s 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, 2017 2016 2015 Expected term (in years) 6.0 5.0–6.0 5.0–6.0 Expected volatility % 50 % 35–50 % Risk-free interest rate 1.87-2.22 % 1.24–2.26 % 1.31–1.89 % 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. As allowed under ASU No. 2016‑09, Compensation-Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting , the Company accounts for forfeitures as they occur. Non-Employee Stock-Based Compensation Stock-based compensation expense related to non-employee awards was $256,000, $121,000, and $103,000 during the years ended December 31, 2017, 2016, and 2015, respectively. Total Stock-Based Compensation The following table summarizes total stock-based compensation expense for the years ended December 31, 2017, 2016, and 2015, which was included in the statements of operations as follows (in thousands): Year Ended December 31, 2017 2016 2015 Cost of goods sold $ 229 $ 133 $ 89 Selling, general and administrative 2,402 1,751 860 Research and development 712 419 300 Total stock-based compensation expense $ 3,343 $ 2,303 $ 1,249 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2017 | |
Income Taxes | |
Income Taxes | 11. The Company has incurred net operating losses for the years ended December 31, 2017, 2016, and 2015, therefore has no provision for income taxes recorded for such years. For the years ended December 31, 2017, 2016, and 2015, the Company generated losses before taxes in the United States of $39.9 million, $40.6 million and $37.6 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, 2017 2016 2015 Tax at statutory federal rate 34.0 % 34.0 % 34.0 % State taxes, net of federal benefit 8.0 3.5 0.4 Tax credits 0.8 1.2 0.9 Change in valuation allowance 17.9 (37.7) (33.9) Other (0.8) (1.0) (1.4) Federal Tax Rate Change (59.9) — — Provision for income taxes % % (0.0) % 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, 2017 2016 2015 Deferred tax assets: Net operating loss carryforwards $ 43,168 $ 49,261 $ 35,474 Research and development 1,732 1,343 986 Accrued liabilities and other 1,282 1,567 935 Stock-based compensation 998 823 485 Fixed assets 482 477 219 Tenant improvement allowance 447 744 836 Total deferred tax assets 48,109 54,215 38,935 Valuation allowance (48,109) (54,215) (38,935) 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 decreased by $7.1 million in the year ended December 31, 2017, due to an increase of $16.4 million in total deferred tax assets due to the increase in net operating loss carryforwards generated during the year, a decrease in the deferred tax assets related to the reduction of the U.S. corporate income tax rate from the 2017 Tax Act of $22.5 million and a decrease of $1.0 million due to the adoption of ASU No. 2016-09. The valuation allowance increased by $15.3 million and $12.7 million in the years ended December 31, 2016, and 2015, respectively, and there were no releases of the valuation allowance in any of these years. The adoption of ASU No. 2016‑09 requires excess tax benefits and tax deficiencies be recorded in the statement of operations 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 December 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 Company’s valuation allowance. The 2017 Tax Act was signed into law on December 22, 2017. The 2017 Tax Act significantly revises the U.S. corporate income tax by, among other things, lowering the statutory corporate tax rate from 35% to 21%, eliminating certain deductions, imposing a mandatory one-time tax on accumulated earnings of foreign subsidiaries as of 2017, introducing new tax regimes, and changing how foreign earnings are subject to U.S. tax. The 2017 Tax Act also enhanced and extended through 2026 the option to claim accelerated depreciation deductions on qualified property. The Company has not completed its determination of the accounting implications of the 2017 Tax Act on its tax accruals. However, the Company has reasonably estimated the effects of the 2017 Tax Act to be zero as of December 31, 2017 for the following reasons. Due to the Company not having foreign subsidiaries, the mandatory one-time tax on accumulated foreign earnings is not applicable to the Company. The remeasurement of federal net deferred tax assets resulting from the permanent reduction in the U.S. statutory corporate tax rate to 21% from 35% results in no effect to the Company's provision for income taxes due to the full valuation allowance recorded on deferred tax assets. On December 22, 2017, the SEC staff issued Staff Accounting Bulletin No. 118 (“SAB 118”), which provides guidance for the tax effect of the Tax Act. SAB 118 provides a measurement period that should not extend beyond one year from the Tax Act’s enactment date for companies to complete the accounting under Accounting Standards Codification Topic 740, Income Taxes (“ASC 740”). In accordance with SAB 118, the Company must reflect the income tax effects of those aspects of the Tax Act for which the accounting under ASC 740 is complete. To the extent that its accounting for certain income tax effects of the Tax Act is incomplete, but the Company is able to determine a reasonable estimate, the Company must record a provisional estimate in its consolidated financial statements. If the Company cannot determine a provisional estimate to be included in its consolidated financial statements, the Company should continue to apply ASC 740 on the basis of the provisions of the tax laws that were in effect immediately before the enactment of the Tax Act. Also, it is expected that the U.S. Treasury will issue regulations and other guidance on the application of certain provisions of the Tax Act. In subsequent periods, but within the measurement period, the Company will analyze that guidance and other necessary information to refine its estimates and complete its accounting for the tax effects of the Tax Act as necessary. As of December 31, 2017, the Company had net operating loss (“NOL”) carryforwards (before tax effects) for federal and state income tax purposes of $171.0 million and $124.8 million, respectively. These federal and state NOL carryforwards will begin to expire in 2026 and 2027, respectively, if not utilized. In addition, the Company has federal and state research and development tax credit carryforwards of $1.1 million and $1.5 million, respectively, to offset future income tax liabilities. The federal research and development tax credits will begin to expire in 2026, 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, 2017, 2016, and 2015 is as follows (in thousands): Year Ended December 31, 2017 2016 2015 Balance at beginning of year $ 448 $ 329 $ 261 Additions for tax positions taken in current year 81 124 86 Increases (reductions) for tax positions taken in prior years 48 (5) (18) Balance at end of year $ 577 $ 448 $ 329 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 twelve 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, 2017, 2016, and 2015, 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, 2017 | |
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, 2017, 2016, and 2015 (in thousands, except share and per share data): Year Ended December 31, 2017 2016 2015 Numerator: Net loss $ (39,918) $ (40,609) $ (37,570) Denominator: Weighted-average common shares outstanding 17,051,629 14,869,691 7,619,696 Less: weighted-average unvested common shares subject to repurchase (592) (1,190) (13,524) Weighted-average shares used to compute net loss per common share, basic and diluted 17,051,037 14,868,501 7,606,172 Net loss per common share, basic and diluted $ (2.34) $ (2.73) $ (4.94) 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, 2017 2016 2015 Options to purchase common stock 3,232,692 2,445,600 2,038,789 Restricted Stock Units 268,260 131,807 — Warrants to purchase common stock 235,415 137,007 137,007 Total 3,736,367 2,714,414 2,175,796 |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2017 | |
Subsequent Events | |
Subsequent Events | 13. On February 27, 2018, Philip Sawyer informed the board of directors that he will resign from his role as President, Chief Executive Officer, and a member of the Company’s board of directors, effective as of February 28, 2018. Scott Flora, currently serving as a member of the Company’s board of directors, assumed the additional role of Interim President and Chief Executive Officer, and as such became the Company’s principal executive officer effective on March 1, 2018. |
Supplementary Financial Data (U
Supplementary Financial Data (Unaudited) | 12 Months Ended |
Dec. 31, 2017 | |
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, 2017. 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, 2017 September 30, 2017 June 30, 2017 March 31, 2017 (in thousands except share and per share data) Revenue $ 11,228 $ 9,600 $ 9,768 $ 9,023 Gross profit 7,489 6,712 6,753 6,924 Loss from operations (6,636) (8,404) (9,861) (10,357) Net loss $ (7,407) $ (8,907) $ (10,387) $ (13,217) Net loss per common share, basic and diluted $ (0.43) $ (0.52) $ (0.61) $ (0.78) Weighted-average shares used to compute net loss per common share, basic and diluted 17,154,060 17,093,183 16,986,074 16,958,332 Three Months Ended December 31, 2016 September 30, 2016 June 30, 2016 March 31, 2016 (in thousands except share and per share data) Revenue $ 9,356 $ 8,478 $ 8,223 $ 6,404 Gross profit 6,948 6,259 6,132 4,298 Loss from operations (9,074) (8,346) (9,637) (11,623) Net loss $ (9,549) $ (8,821) $ (10,129) $ (12,110) Net loss per common share, basic and diluted $ (0.56) $ (0.56) $ (0.76) $ (0.90) 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 |
Summary of Significant Accoun21
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2017 | |
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, during 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 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, 2017, 2016, and 2015. The Company had total short-term investments of $3.0 million and $10.7 million as of December 31, 2017 and 2016, respectively. |
Inventory | Inventory Inventories are stated at the lower of cost or 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 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 5 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 (deficit) 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. In certain circumstances, the Company enters into arrangements in which multiple deliverables are provided to customers. Under multiple deliverable arrangements, the Company recognizes revenue in accordance with the principles described above and allocates the revenue based on the relative selling price of each deliverable, which is based on stand alone selling price. |
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, 2017. Historical warranty costs have been insignificant. |
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 ultimately vests. The Company’s stock-based compensation is reduced for actual forfeitures in the period and upon the actual date of forfeiture. 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. The majority of the Company’s assets are maintained in the United States. The Company derives its revenue primarily from sales to customers in the United States, based upon the billing address of the customer. In June 2017, the Company started selling into Asia with sales through December 31, 2017 being immaterial. |
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 will adopt the new revenue standard on January 1, 2018, using the modified retrospective method. The new revenue standard is principles-based and interpretation of those principles may vary from company to company based on their unique circumstances. It is possible that interpretation, industry practice, and guidance may evolve as companies and the accounting profession work to implement this new standard. The Company has determined that the new guidance will not have a material impact on its financial statements. · 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 tho se annual periods, beginning after December 15, 2016. The adoption of this standard in the first quarter of 2017 did not 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 (Topic 825) , 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 first quarter of 2017 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 twelve months regardless of their classification. Leases with a term of twelve 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 in the first quarter of 2017, 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 impact 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 statement of operations 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 year ended December 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 a 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 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 (Topic 326) . 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. The amendments in ASU No. 2016‑15 should be applied using a retrospective transition method to each period presented. The standard is effective for public entities for annual periods beginning after December 15, 2017. The Company will adopt this standard beginning on January 1, 2018 and as a result, expects to reclassify the $2.0 million debt extinguishment cost paid in cash in the first quarter of 2017 from operating activities to financing activities. · 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 early adopted this standard in the fourth quarter of 2017. The adoption is currently reflected in the Company’s financial statements. |
Summary of Significant Accoun22
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Summary of Significant Accounting Policies | |
Property Plant and Equipment, Estimated Useful Lives | Laboratory equipment 5 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, 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): December 31, 2017 Level 1 Level 2 Level 3 Total Assets Money market funds $ 13,071 $ — $ — $ 13,071 Commercial paper — 3,763 — 3,763 Corporate debt securities — 1,753 — 1,753 $ 13,071 $ 5,516 $ — $ 18,587 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) | 12 Months Ended |
Dec. 31, 2017 | |
Balance Sheet Components | |
Schedule of Inventory | Inventory consisted of the following (in thousands): December 31, 2017 2016 Raw materials $ 1,606 $ 699 Work-in-process 1,860 1,144 Finished goods 3,970 3,209 Total inventory $ 7,436 $ 5,052 |
Schedule of Prepaid Expenses and Other Assets | Prepaid expenses and other current assets consisted of the following (in thousands): December 31, 2017 2016 Prepaid expenses $ 1,252 $ 1,004 Other 22 84 Total prepaid expenses and other assets $ 1,274 $ 1,088 |
Schedule of Property and Equipment, Net | Property and equipment, net consisted of the following (in thousands): December 31, 2017 2016 Computer equipment and software $ 1,368 $ 1,330 Laboratory and manufacturing equipment 3,008 2,422 Furniture and fixtures 1,516 1,442 Leasehold improvements 7,155 7,153 Assets in progress 167 47 Total property and equipment, gross 13,214 12,394 Less: accumulated depreciation and amortization (6,045) (4,108) Total property and equipment, net $ 7,169 $ 8,286 |
Schedule of Accrued and Other Current Liabilities | Accrued and other current liabilities consisted of the following (in thousands): December 31, 2017 2016 Accrued payroll-related expenses $ 3,777 $ 5,301 Accrued independent sales agent commissions 181 193 Accrued professional fees 501 246 Deferred rent 261 261 Other 459 350 Total accrued and other current liabilities $ 5,179 $ 6,351 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Related Party Loan Agreement | |
Schedule of Future Payments under Company's Loan Agreements | Future payments due under the Company’s term loans as of December 31, 2017 are as follow (in thousands): Year ending December 31, 2018 2,490 2019 14,644 2020 10,194 2021 7,105 Thereafter 1,690 36,123 Less: Amount representing interest (6,122) Less: Amount representing debt discount (1) (885) Total $ 29,116 (1) Interest expense is based on a 6.5% base rate plus one month Libor rate |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
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, 2017 (in thousands): Year ending December 31: 2018 $ 2,178 2019 2,243 2020 2,310 2021 2,380 2022 2,451 Thereafter 4,680 Total $ 16,242 |
Stock Option Plans (Tables)
Stock Option Plans (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Stock Option Plans | |
Summary of Stock Option Activity | Options Outstanding RSUs Outstanding Weighted- Weighted- Weighted- Average Average Average Shares Exercise Aggregate Grant Date Remaining Aggregate Available Number of Price Per Intrinsic Number of Fair Value Per Contractual Intrinsic for Grant Shares Share Value Shares Share Terms Value (in thousands) (in years) (in thousands) Balances at December 31, 2016 1,198,856 2,445,600 $ 6.86 $ 2,920 131,807 $ 7.82 Options authorized 847,547 — . — Options granted (1,227,205) 1,227,205 $ 7.29 — RSUs awarded (183,657) 183,657 6.61 Options exercised — (165,687) $ 3.18 — RSUs released (36,804) 4.47 Options cancelled 274,426 (274,426) $ 9.22 — RSUs forfeited/canceled 19,973 (10,400) 7.45 Balances at December 31, 2017 929,940 3,232,692 $ 7.01 $ 2,890 268,260 $ 6.84 1.53 $ 1,663 Options exercisable—December 31, 2017 1,489,787 $ 6.02 $ 2,686 Options vested and expected to vest—December 31, 2017 3,232,692 $ 7.01 $ 2,890 RSUs vested and expected to vest—December 31, 2017 268,260 $ 6.84 1.43 $ 1,663 |
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 $1.30-2.78 228,049 2.8 $ 1.43 228,049 $ 1.43 $3.15 503,113 5.2 $ 3.15 455,914 $ 3.15 $4.81-6.50 799,835 7.6 $ 6.05 203,489 $ 5.24 $6.75-7.45 558,200 7.5 $ 7.32 204,657 $ 7.32 $7.60-8.40 468,713 8.7 $ 8.16 68,865 $ 8.26 $8.95-13.00 500,920 7.6 $ 10.93 229,696 $ 11.33 $13.47-15.91 173,862 7.5 $ 14.62 99,117 $ 14.87 3,232,692 7.0 $ 7.01 1,489,787 $ 6.02 |
Schedule of Assumptions Used in Estimated Fair Value of Share-based Compensation for Options Granted | Year Ended December 31, 2017 2016 2015 Expected term (in years) 6.0 5.0–6.0 5.0–6.0 Expected volatility % 50 % 35–50 % Risk-free interest rate 1.87-2.22 % 1.24–2.26 % 1.31–1.89 % 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, 2017, 2016, and 2015, which was included in the statements of operations as follows (in thousands): Year Ended December 31, 2017 2016 2015 Cost of goods sold $ 229 $ 133 $ 89 Selling, general and administrative 2,402 1,751 860 Research and development 712 419 300 Total stock-based compensation expense $ 3,343 $ 2,303 $ 1,249 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Income Taxes | |
Schedule of Reconciliation of the Statutory Federal Income Tax Rate to the Company's Effective Tax Rate | Year Ended December 31, 2017 2016 2015 Tax at statutory federal rate 34.0 % 34.0 % 34.0 % State taxes, net of federal benefit 8.0 3.5 0.4 Tax credits 0.8 1.2 0.9 Change in valuation allowance 17.9 (37.7) (33.9) Other (0.8) (1.0) (1.4) Federal Tax Rate Change (59.9) — — Provision for income taxes % % (0.0) % |
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, 2017 2016 2015 Deferred tax assets: Net operating loss carryforwards $ 43,168 $ 49,261 $ 35,474 Research and development 1,732 1,343 986 Accrued liabilities and other 1,282 1,567 935 Stock-based compensation 998 823 485 Fixed assets 482 477 219 Tenant improvement allowance 447 744 836 Total deferred tax assets 48,109 54,215 38,935 Valuation allowance (48,109) (54,215) (38,935) 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, 2017, 2016, and 2015 is as follows (in thousands): Year Ended December 31, 2017 2016 2015 Balance at beginning of year $ 448 $ 329 $ 261 Additions for tax positions taken in current year 81 124 86 Increases (reductions) for tax positions taken in prior years 48 (5) (18) Balance at end of year $ 577 $ 448 $ 329 |
Net Loss per Common Share (Tabl
Net Loss per Common Share (Tables) | 12 Months Ended |
Dec. 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 during the years ended December 31, 2017, 2016, and 2015 (in thousands, except share and per share data): Year Ended December 31, 2017 2016 2015 Numerator: Net loss $ (39,918) $ (40,609) $ (37,570) Denominator: Weighted-average common shares outstanding 17,051,629 14,869,691 7,619,696 Less: weighted-average unvested common shares subject to repurchase (592) (1,190) (13,524) Weighted-average shares used to compute net loss per common share, basic and diluted 17,051,037 14,868,501 7,606,172 Net loss per common share, basic and diluted $ (2.34) $ (2.73) $ (4.94) |
Schedule of Potentially Dilutive Securities Outstanding Excluded from Computation of Diluted Shares Outstanding | Year Ended December 31, 2017 2016 2015 Options to purchase common stock 3,232,692 2,445,600 2,038,789 Restricted Stock Units 268,260 131,807 — Warrants to purchase common stock 235,415 137,007 137,007 Total 3,736,367 2,714,414 2,175,796 |
Supplementary Financial Data 30
Supplementary Financial Data (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Supplementary Financial Data | |
Schedule of Selected Quarterly Information | Three Months Ended December 31, 2017 September 30, 2017 June 30, 2017 March 31, 2017 (in thousands except share and per share data) Revenue $ 11,228 $ 9,600 $ 9,768 $ 9,023 Gross profit 7,489 6,712 6,753 6,924 Loss from operations (6,636) (8,404) (9,861) (10,357) Net loss $ (7,407) $ (8,907) $ (10,387) $ (13,217) Net loss per common share, basic and diluted $ (0.43) $ (0.52) $ (0.61) $ (0.78) Weighted-average shares used to compute net loss per common share, basic and diluted 17,154,060 17,093,183 16,986,074 16,958,332 Three Months Ended December 31, 2016 September 30, 2016 June 30, 2016 March 31, 2016 (in thousands except share and per share data) Revenue $ 9,356 $ 8,478 $ 8,223 $ 6,404 Gross profit 6,948 6,259 6,132 4,298 Loss from operations (9,074) (8,346) (9,637) (11,623) Net loss $ (9,549) $ (8,821) $ (10,129) $ (12,110) Net loss per common share, basic and diluted $ (0.56) $ (0.56) $ (0.76) $ (0.90) 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 |
Organization and Description of
Organization and Description of Business (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Organization and Description of Business | |||||||||||
Net loss | $ 7,407 | $ 8,907 | $ 10,387 | $ 13,217 | $ 9,549 | $ 8,821 | $ 10,129 | $ 12,110 | $ 39,918 | $ 40,609 | $ 37,570 |
Accumulated deficit | 186,134 | $ 146,216 | 186,134 | $ 146,216 | |||||||
Cash and cash equivalents and short-term investments | 21,000 | 21,000 | |||||||||
Face value of debt outstanding | 35,000 | 35,000 | |||||||||
Working capital | $ 22,700 | $ 22,700 |
Summary of Significant Accoun32
Summary of Significant Accounting Policies - Additional Information (Detail) | Jan. 01, 2017USD ($) | Dec. 31, 2017USD ($) | Sep. 30, 2017USD ($) | Jun. 30, 2017USD ($) | Mar. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Sep. 30, 2016USD ($) | Jun. 30, 2016USD ($) | Mar. 31, 2016USD ($) | Dec. 31, 2017USD ($)segment | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) |
Significant Accounting Policies | ||||||||||||
Net loss | $ (7,407,000) | $ (8,907,000) | $ (10,387,000) | $ (13,217,000) | $ (9,549,000) | $ (8,821,000) | $ (10,129,000) | $ (12,110,000) | $ (39,918,000) | $ (40,609,000) | $ (37,570,000) | |
Short-term Investments | 3,040,000 | 10,737,000 | 3,040,000 | 10,737,000 | ||||||||
Allowance For Doubtful Accounts Receivable | 268,000 | $ 300,000 | 268,000 | 300,000 | ||||||||
Write off adjustments charged to allowance | 0 | $ 6,000 | 165,000 | |||||||||
Warrant Liability | $ 50,000 | $ 50,000 | ||||||||||
Medical Device Excise Tax Percentage | 2.30% | |||||||||||
Number of operating segments | segment | 1 | |||||||||||
Debt extinguishment cost | $ (2,303,000) | |||||||||||
ASU 2016-09 | ||||||||||||
Significant Accounting Policies | ||||||||||||
Amount recognized related to deferred tax assets arose directly from tax deductions related to equity compensation | $ 1,000,000 | |||||||||||
ASU 2016-15 | ||||||||||||
Significant Accounting Policies | ||||||||||||
Debt extinguishment cost | $ 2,000,000 | |||||||||||
Restatement Adjustment | Error Corrections That Reverse Revenue Recorded | ||||||||||||
Significant Accounting Policies | ||||||||||||
Net loss | 302,000 | |||||||||||
Restatement Adjustment | Error Corrections That Increase Fair Value Of Warrant Liability | ||||||||||||
Significant Accounting Policies | ||||||||||||
Convertible preferred stock warrant liability | $ 370,000 | |||||||||||
Revenue | Customer Concentration Risk | ||||||||||||
Significant Accounting Policies | ||||||||||||
Concentration risk, percentage | 10.00% | |||||||||||
Accounts Receivable, Net | Customer Concentration Risk | ||||||||||||
Significant Accounting Policies | ||||||||||||
Concentration risk, percentage | 10.00% | 10.00% | 10.00% |
Summary of Significant Accoun33
Summary of Significant Accounting Policies - Schedule of Revenue as Percentage of Total Revenue for Each Significant Customer (Detail) - Customer Concentration Risk | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Revenue | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 10.00% | ||
Accounts Receivable, Net | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 10.00% | 10.00% | 10.00% |
Summary of Significant Accoun34
Summary of Significant Accounting Policies - Schedule of Estimated Useful Lives of Assets (Detail) | 12 Months Ended |
Dec. 31, 2017 | |
Laboratory Equipment [Member] | |
Property, Plant and Equipment | |
Property and equipment, estimated useful life | 5 years |
Furniture and Fixtures | |
Property, Plant and Equipment | |
Property and equipment, estimated useful life | 3 years |
Computer Equipment and Software | Minimum | |
Property, Plant and Equipment | |
Property and equipment, estimated useful life | 2 years |
Computer Equipment and Software | Maximum | |
Property, Plant and Equipment | |
Property and equipment, estimated useful life | 3 years |
Manufacturing Equipment [Member] | |
Property, Plant and Equipment | |
Property and equipment, estimated useful life | 5 years |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Detail) - USD ($) | 12 Months Ended | |
Dec. 31, 2017 | 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 | |
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, 2017 | Dec. 31, 2016 |
Assets | ||
Assets | $ 18,587 | $ 37,870 |
Level 1 | ||
Assets | ||
Assets | 13,071 | 18,755 |
Level 2 | ||
Assets | ||
Assets | 5,516 | 19,115 |
Level 3 | ||
Assets | ||
Assets | 0 | 0 |
Money Market Funds | ||
Assets | ||
Assets | 13,071 | 18,755 |
Money Market Funds | Level 1 | ||
Assets | ||
Assets | 13,071 | 18,755 |
Commercial Paper | ||
Assets | ||
Assets | 3,763 | 9,582 |
Commercial Paper | Level 2 | ||
Assets | ||
Assets | 3,763 | 9,582 |
Corporate Debt Securities | ||
Assets | ||
Assets | 1,753 | 9,533 |
Corporate Debt Securities | Level 2 | ||
Assets | ||
Assets | $ 1,753 | $ 9,533 |
Balance Sheet Components - Sche
Balance Sheet Components - Schedule of Inventory (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Balance Sheet Components | ||
Raw materials | $ 1,606 | $ 699 |
Work-in-process | 1,860 | 1,144 |
Finished goods | 3,970 | 3,209 |
Total inventory | $ 7,436 | $ 5,052 |
Balance Sheet Components - Sc38
Balance Sheet Components - Schedule of Prepaid Expenses and Other Assets (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Balance Sheet Components | ||
Prepaid expenses | $ 1,252 | $ 1,004 |
Other | 22 | 84 |
Total prepaid expenses and other current assets | $ 1,274 | $ 1,088 |
Balance Sheet Components - Sc39
Balance Sheet Components - Schedule of Property and Equipment, Net (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Property, Plant and Equipment | |||
Total property and equipment, gross | $ 13,214 | $ 12,394 | |
Less: accumulated depreciation and amortization | (6,045) | (4,108) | |
Total property and equipment, net | 7,169 | 8,286 | |
Depreciation and amortization | 1,992 | 1,995 | $ 1,710 |
Computer Equipment and Software | |||
Property, Plant and Equipment | |||
Total property and equipment, gross | 1,368 | 1,330 | |
Laboratory and Manufacturing Equipment | |||
Property, Plant and Equipment | |||
Total property and equipment, gross | 3,008 | 2,422 | |
Furniture and Fixtures | |||
Property, Plant and Equipment | |||
Total property and equipment, gross | 1,516 | 1,442 | |
Leasehold Improvements | |||
Property, Plant and Equipment | |||
Total property and equipment, gross | 7,155 | 7,153 | |
Assets in progress | |||
Property, Plant and Equipment | |||
Total property and equipment, gross | $ 167 | $ 47 |
Balance Sheet Components - Sc40
Balance Sheet Components - Schedule of Accrued and Other Current Liabilities (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Balance Sheet Components | ||
Accrued payroll-related expenses | $ 3,777 | $ 5,301 |
Accrued independent sales agent commissions | 181 | 193 |
Accrued professional fees | 501 | 246 |
Deferred rent | 261 | 261 |
Other | 459 | 350 |
Total accrued and other current liabilities | $ 5,179 | $ 6,351 |
Related Party Loan Agreement -
Related Party Loan Agreement - Additional Information (Detail) - USD ($) | Mar. 10, 2017 | Feb. 28, 2014 | Mar. 31, 2015 | Dec. 31, 2017 | Dec. 31, 2016 | Jun. 30, 2015 |
Related Party Transaction [Line Items] | ||||||
Debt instrument, fixed interest rate | 6.50% | |||||
Loan amount | $ 29,116,000 | $ 13,261,000 | ||||
HealthCare Royalty Partners | ||||||
Related Party Transaction [Line Items] | ||||||
Payments of debt issuance costs | $ 200,000 | |||||
HealthCare Royalty Partners | Common Stock [Member] | IPO [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Warrants issued to purchase of shares | 86,891 | |||||
HealthCare Royalty Partners | 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 | |||||
HealthCare Royalty Partners | Term loan | ||||||
Related Party Transaction [Line Items] | ||||||
Loan paid off | $ 17,200,000 | |||||
Loan amount | 15,000,000 | |||||
Prepayment fees and interest | $ 2,200,000 | |||||
HealthCare Royalty Partners | 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 | $ 400,000 | $ 2,000,000 | ||||
HealthCare Royalty Partners | Loans Payable [Member] | Loan Agreement [Member] | Tranche One [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Debt instrument, drawn amount | $ 10,000,000 | |||||
HealthCare Royalty Partners | Loans Payable [Member] | Loan Agreement [Member] | Tranche Two [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Debt instrument, drawn amount | $ 5,000,000 |
Debt - (Detail)
Debt - (Detail) - USD ($) | Sep. 26, 2017 | Mar. 10, 2017 | Feb. 28, 2015 | Dec. 31, 2017 |
Debt | ||||
Term loan rate (as a percent) | 6.50% | |||
Loss on extinguishment of debt | $ (2,303,000) | |||
Non-cash expenses related to unamortized issuance costs | $ 300,000 | |||
Minimum net revenue requirements period ending March 31, 2018 | 40,488,151 | |||
Minimum net revenue requirements period ending June 30, 2018 | 42,248,214 | |||
Minimum net revenue requirements period ending September 30, 2018 | 46,574,986 | |||
Minimum net revenue requirements period ending December 31, 2018 | 50,000,000 | |||
HealthCare Royalty Partners | ||||
Debt | ||||
Prepayment penalty on debt | 1,800,000 | |||
Mid Cap | Revolving Credit Facility | ||||
Debt | ||||
Maximum loan amount | 10,000,000 | |||
Additional loan amount | $ 10,000,000 | |||
Drawn amount | $ 5,900,000 | |||
Term loan rate (as a percent) | 3.25% | |||
Applicable margin (as a percent) | 1.50% | |||
Silicon Valley Bank | Accounts Receivable Credit Facility | ||||
Debt | ||||
Maximum loan amount | $ 7,500,000 | |||
Credit facility, percentage of maximum borrowings on eligible accounts receivable | 80.00% | |||
Prepayment penalty on debt | $ 150,000 | |||
Termination fee | $ 150,000 | |||
Term loan | ||||
Debt | ||||
Common stock drawdown percent of amount drawn | 2.00% | |||
Term loan | HealthCare Royalty Partners | ||||
Debt | ||||
Loan paid off | $ 17,200,000 | |||
Debt instrument, repayment of loan payable | 15,000,000 | |||
Term loan | Mid Cap | ||||
Debt | ||||
Maximum loan amount | 30,000,000 | |||
Drawn amount | $ 20,000,000 | |||
Term loan rate (as a percent) | 6.50% | 6.50% | ||
Applicable margin (as a percent) | 1.50% | 1.50% | ||
Loan term period | 36 months | 36 months | ||
Frequency periodic payment of loan | monthly | monthly | ||
Tranche 1 | ||||
Debt | ||||
Loan term period | 5 years | |||
Tranche 1 | Mid Cap | ||||
Debt | ||||
Drawn amount | $ 20,000,000 | |||
Tranche 1 | Mid Cap | HealthCare Royalty Partners | ||||
Debt | ||||
Loan paid off | $ 17,200,000 | |||
Tranche 2 | Mid Cap | ||||
Debt | ||||
Drawn amount | $ 10,000,000 |
Debt - Schedule of Future Payme
Debt - Schedule of Future Payments under Company's Loan Agreements (Detail) $ in Thousands | Dec. 31, 2017USD ($) |
Related Party Transaction [Line Items] | |
Term loan rate (as a percent) | 6.50% |
HealthCare Royalty Partners | |
Related Party Transaction [Line Items] | |
2,018 | $ 2,490 |
2,019 | 14,644 |
2,020 | 10,194 |
2,021 | 7,105 |
Thereafter | 1,690 |
Future payments due | 36,123 |
Less: Amount representing interest | (6,122) |
Less: Amount representing debt discount | (885) |
Total | $ 29,116 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Nov. 01, 2014 | |
Other Commitments [Line Items] | ||||
Rent expense | $ 2 | $ 2 | $ 2 | |
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 Contingencies45
Commitments and Contingencies - Summary of Company's Future Minimum Lease Payments (Detail) $ in Thousands | Dec. 31, 2017USD ($) |
Commitments and Contingencies. | |
2,018 | $ 2,178 |
2,019 | 2,243 |
2,020 | 2,310 |
2,021 | 2,380 |
2,022 | 2,451 |
Thereafter | 4,680 |
Total | $ 16,242 |
Warrants (Detail)
Warrants (Detail) - USD ($) | Sep. 26, 2017 | Mar. 10, 2017 | Dec. 31, 2015 | Dec. 31, 2017 | Mar. 31, 2010 |
Class Of Warrant Or Right [Line Items] | |||||
Changes in fair value of convertible preferred stock warrant liability | $ 472,000 | ||||
Convertible Preferred Stock Warrants [Member] | |||||
Class Of Warrant Or Right [Line Items] | |||||
Changes in fair value of convertible preferred stock warrant liability | $ (472,000) | ||||
Tranche 1 | |||||
Class Of Warrant Or Right [Line Items] | |||||
Warrants issued to purchase of shares | 50,618 | ||||
Exercise price of warrants | $ 7.90 | ||||
Loan term period | 5 years | ||||
Tranche 2 | |||||
Class Of Warrant Or Right [Line Items] | |||||
Warrants issued to purchase of shares | 47,790 | ||||
Exercise price of warrants | $ 8.37 | ||||
Contractual term | 5 years | ||||
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 | ||||
Level 3 | Tranche 1 | |||||
Class Of Warrant Or Right [Line Items] | |||||
Warrants liability | $ 279,000 | ||||
Contractual term | 10 years | ||||
Interest free rate | 2.58% | ||||
Dividend yield | 0.00% | ||||
Volatility | 60.00% | ||||
Level 3 | Tranche 2 | |||||
Class Of Warrant Or Right [Line Items] | |||||
Warrants liability | $ 278,000 | ||||
Contractual term | 10 years | ||||
Interest free rate | 2.24% | ||||
Dividend yield | 0.00% | ||||
Volatility | 60.00% | ||||
Mid Cap | Tranche 1 | |||||
Class Of Warrant Or Right [Line Items] | |||||
Drawn amount | $ 20,000,000 | ||||
Mid Cap | Tranche 2 | |||||
Class Of Warrant Or Right [Line Items] | |||||
Drawn amount | $ 10,000,000 |
Convertible Preferred Stock a47
Convertible Preferred Stock and Stockholders' Deficit (Detail) $ / shares in Units, $ in Thousands | Jul. 01, 2016USD ($)$ / sharesshares | Jun. 30, 2015USD ($)$ / sharesshares | May 31, 2015 | Mar. 31, 2013shares | Dec. 31, 2017USD ($)shares | Dec. 31, 2016USD ($)shares | Dec. 31, 2015shares | Jun. 18, 2015shares | Jun. 14, 2015shares |
Temporary Equity [Line Items] | |||||||||
Convertible preferred stock, shares outstanding | 7,652,615 | ||||||||
Common Stock Shares Issued | 17,179,258 | 16,950,940 | |||||||
Gross proceeds from issuance of shares | $ | $ 203 | $ 29,678 | |||||||
Authorized capital units | 110,000,000 | ||||||||
Maximum number of common stock, preferred stock, depositary shares, warrants and/or units in one or more offerings and in any combinations, which can be sold | 4,430,892 | ||||||||
IPO [Member] | |||||||||
Temporary Equity [Line Items] | |||||||||
Common Stock Shares Issued | 4,600,000 | ||||||||
Price per share issued | $ / shares | $ 12 | ||||||||
Gross proceeds from issuance of shares | $ | $ 47,200 | ||||||||
Additional shares of common stock | 600,000 | ||||||||
Convertible preferred stock converted into shares of common stock | 7,979,332 | ||||||||
Secondary Offering | |||||||||
Temporary Equity [Line Items] | |||||||||
Gross proceeds from issuance of shares | $ | $ 29,700 | ||||||||
Proceeds from issuance of common stock, net, shares | 3,220,000 | ||||||||
Price per share | $ / shares | $ 10 | ||||||||
Offering issuance costs in accounts payable at period end | $ | $ 600 | ||||||||
ATM Offering | |||||||||
Temporary Equity [Line Items] | |||||||||
Gross proceeds from issuance of shares | $ | $ 25,000 | ||||||||
Over allotment | |||||||||
Temporary Equity [Line Items] | |||||||||
Proceeds from issuance of common stock, net, shares | 420,000 | ||||||||
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] | |||||||||
Stockholders' Equity Note, Stock Split, Conversion Ratio | 0.0541 | ||||||||
Convertible preferred stock converted into shares of common stock | 7,979,332 | ||||||||
Proceeds from issuance of common stock, net, shares | 3,220,000 | 4,600,000 | |||||||
Common Stock [Member] | Anti-dilution Adjustments [Member] | |||||||||
Temporary Equity [Line Items] | |||||||||
Convertible preferred stock converted into shares of common stock | 326,717 | ||||||||
Maximum | Secondary Offering | |||||||||
Temporary Equity [Line Items] | |||||||||
Gross proceeds from issuance of shares | $ | $ 100,000 |
Stock Option Plans - Additional
Stock Option Plans - Additional Information (Detail) - shares | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Apr. 30, 2015 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Number of shares authorized for future issuance | 4,430,892 | ||
Shares available for grant excluding restriced shares | 929,940 | ||
Number of shares available for future awards | 929,940 | 1,198,856 | |
2015 Plan [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Number of shares authorized 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 25% upon one year of continued service to the Company, with the remainder in monthly increments over three 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] | |||
Number of shares available for future awards | 169,529 | ||
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 | 25.00% | ||
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] | 2005 Plan [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Stock option vesting, term | 3 years | ||
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] | |||
Sharebased Compensation Arrangement By Sharebased Payment Award Expiration Period | 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 | ||
Sharebased Compensation Arrangement By Sharebased Payment Award Expiration Period | 10 years |
Stock Option Plans - Summary of
Stock Option Plans - Summary of Stock Option Activity (Detail) - USD ($) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Options Available for Grant, Beginning Balances | 1,198,856 | |
Options Available for Grant, Options authorized | 847,547 | |
Options Available for Grant, Options granted | (1,227,205) | |
Options Available for Grant, RSUs awarded | (183,657) | |
Options Available for Grant, Options, Cancelled | 274,426 | |
Options Available for Grant, RSUs forfeited/canceled | $ 19,973 | |
Options Available for Grant, Ending Balances | 929,940 | 1,198,856 |
Options Outstanding, Beginning Balances | 2,445,600 | |
Stock options granted | 1,227,205 | |
Options Outstanding, Options exercised | (165,687) | |
Options Outstanding, Options Cancelled | (274,426) | |
Options Outstanding, Ending Balances | 3,232,692 | 2,445,600 |
Options Outstanding, Options exercisable | 1,489,787 | |
Options Outstanding, Options vested and expected to vest | 3,232,692 | |
Weighted Average Exercise Price Per Share, Beginning Balances | $ 6.86 | |
Weighted Average Exercise Price Per Share, authorized | 7.01 | |
Weighted Average Exercise Price Per Share, granted | 7.29 | |
Weighted Average Exercise Price Per Share, exercised | 3.18 | |
Weighted Average Exercise Price Per Share, Cancelled | 9.22 | |
Weighted Average Exercise Price Per Share, Ending Balances | 7.01 | $ 6.86 |
Weighted Average Exercise Price Per Share, Options exercisable | $ 6.02 | |
Aggregate Intrinsic Value, Beginning Balances | $ 2,890,000 | $ 2,920,000 |
Aggregate Intrinsic Value, Options exercisable | 2,686,000 | |
Aggregate Intrinsic Value, Options vested and expected to vest | $ 2,890,000 |
Stock Option Plans - Summary 50
Stock Option Plans - Summary of Stock Option Activity - RSUs (Detail) - Restricted Stock Units $ / shares in Units, $ in Thousands | 12 Months Ended |
Dec. 31, 2017USD ($)$ / sharesshares | |
Shares | |
Balances at beginning of period (in shares) | shares | 131,807 |
Awarded (in shares) | shares | 183,657 |
Released (in shares) | shares | (36,804) |
Forfeited (in shares) | shares | (10,400) |
Balances at end of period (in shares) | shares | 268,260 |
Awards vested and expected to vest at end of period (in shares) | shares | 268,260 |
Weighted Average Grant Date Fair Value | |
Balances at beginning of period (in dollars per share) | $ / shares | $ 7.82 |
Awarded (in dollars per share) | $ / shares | 6.61 |
Released (in dollars per share) | $ / shares | 4.47 |
Forfeited (in dollars per share) | $ / shares | 7.45 |
Balances at end of period (in dollars per share) | $ / shares | 6.84 |
Awards vested and expected to vest at end of period (in dollars per share) | $ / shares | $ 6.84 |
Weighted Average Remaining Contractual Term | |
Balances at end of period (in years) | 1 year 6 months 11 days |
Awards vested and expected to vest | 1 year 5 months 5 days |
Aggregate Intrinsic Value | |
Balances at end of period | $ | $ 1,663 |
Awards vested and expected to vest at end of period | $ | $ 1,663 |
Stock Option Plans - Addition51
Stock Option Plans - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Stock options granted | 1,227,205 | ||
Weighted average grant date fair value of options, granted | $ 7.29 | $ 3.43 | $ 4.82 |
Aggregate intrinsic value of options exercised | $ 0.7 | $ 2.3 | $ 0.8 |
Weighted-average remaining contractual life of options outstanding | 7 years | 7 years 6 months | |
Weighted-average remaining contractual life of options outstanding, vested and expected to vest | 7 years | 7 years 6 months | |
Stock option repurchase, term | 4 years | ||
Common stock outstanding, right to repurchase | 0 | 2,661 | |
Weighted average price of stock repurchase | $ 2.59 | ||
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 | ||
Restricted Stock Units | |||
Restricted stock units, granted | 183,657 |
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, 2017$ / sharesshares | |
Exercise Price Range | |
Options Outstanding, Number of Options | shares | 3,232,692 |
Options Outstanding, Weighted-Average Remaining Contractual Life (year) | 7 years |
Options Outstanding, Weighted Average Exercise Price Per Share | $ 7.01 |
Options Exercisable, Number of Options | shares | 1,489,787 |
Options Exercisable, Weighted Average Exercise Price Per Share | $ 6.02 |
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 | 228,049 |
Options Outstanding, Weighted-Average Remaining Contractual Life (year) | 2 years 9 months 18 days |
Options Outstanding, Weighted Average Exercise Price Per Share | $ 1.43 |
Options Exercisable, Number of Options | shares | 228,049 |
Options Exercisable, Weighted Average Exercise Price Per Share | $ 1.43 |
$3.15 [Member] | |
Exercise Price Range | |
Exercise Price Range, Upper Range Limit | $ 3.15 |
Options Outstanding, Number of Options | shares | 503,113 |
Options Outstanding, Weighted-Average Remaining Contractual Life (year) | 5 years 2 months 12 days |
Options Outstanding, Weighted Average Exercise Price Per Share | $ 3.15 |
Options Exercisable, Number of Options | shares | 455,914 |
Options Exercisable, Weighted Average Exercise Price Per Share | $ 3.15 |
$4.81-6.50 [Member] | |
Exercise Price Range | |
Exercise Price Range, Lower Range Limit | 4.81 |
Exercise Price Range, Upper Range Limit | $ 6.50 |
Options Outstanding, Number of Options | shares | 799,835 |
Options Outstanding, Weighted-Average Remaining Contractual Life (year) | 7 years 7 months 6 days |
Options Outstanding, Weighted Average Exercise Price Per Share | $ 6.05 |
Options Exercisable, Number of Options | shares | 203,489 |
Options Exercisable, Weighted Average Exercise Price Per Share | $ 5.24 |
$6.75-7.45 | |
Exercise Price Range | |
Exercise Price Range, Lower Range Limit | 6.75 |
Exercise Price Range, Upper Range Limit | $ 7.45 |
Options Outstanding, Number of Options | shares | 558,200 |
Options Outstanding, Weighted-Average Remaining Contractual Life (year) | 7 years 6 months |
Options Outstanding, Weighted Average Exercise Price Per Share | $ 7.32 |
Options Exercisable, Number of Options | shares | 204,657 |
Options Exercisable, Weighted Average Exercise Price Per Share | $ 7.32 |
$7.60-8.40 | |
Exercise Price Range | |
Exercise Price Range, Lower Range Limit | 7.60 |
Exercise Price Range, Upper Range Limit | $ 8.40 |
Options Outstanding, Number of Options | shares | 468,713 |
Options Outstanding, Weighted-Average Remaining Contractual Life (year) | 8 years 8 months 12 days |
Options Outstanding, Weighted Average Exercise Price Per Share | $ 8.16 |
Options Exercisable, Number of Options | shares | 68,865 |
Options Exercisable, Weighted Average Exercise Price Per Share | $ 8.26 |
$8.95-13.00 | |
Exercise Price Range | |
Exercise Price Range, Lower Range Limit | 8.95 |
Exercise Price Range, Upper Range Limit | $ 13 |
Options Outstanding, Number of Options | shares | 500,920 |
Options Outstanding, Weighted-Average Remaining Contractual Life (year) | 7 years 7 months 6 days |
Options Outstanding, Weighted Average Exercise Price Per Share | $ 10.93 |
Options Exercisable, Number of Options | shares | 229,696 |
Options Exercisable, Weighted Average Exercise Price Per Share | $ 11.33 |
$13.47-15.91 | |
Exercise Price Range | |
Exercise Price Range, Lower Range Limit | 13.47 |
Exercise Price Range, Upper Range Limit | $ 15.91 |
Options Outstanding, Number of Options | shares | 173,862 |
Options Outstanding, Weighted-Average Remaining Contractual Life (year) | 7 years 6 months |
Options Outstanding, Weighted Average Exercise Price Per Share | $ 14.62 |
Options Exercisable, Number of Options | shares | 99,117 |
Options Exercisable, Weighted Average Exercise Price Per Share | $ 14.87 |
Stock Option Plans - Addition53
Stock Option Plans - Additional Information 2 (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Compensation Related Costs [Abstract] | |||
Share-based compensation expense recognized | $ 3.1 | $ 2.2 | $ 1.1 |
Options Outstanding, Options vested and expected to vest | 3,232,692 |
Stock Option Plans - Stock-base
Stock Option Plans - Stock-based Compensation (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost | |||
Total stock-based compensation expense | $ 3,343,000 | $ 2,303,000 | $ 1,249,000 |
Unrecognized compensation expense | |||
Unrecognized compensation expense related to unvested options | $ 6,200,000 | $ 4,300,000 | |
Weighted-average expected period to recognize of compensation expense, term | 2 years 9 months 18 days | 3 years 1 month 6 days | |
Unrecognized compensation expense related to RSUs | $ 1,300,000 | $ 700,000 | |
Cost of Goods Sold | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost | |||
Total stock-based compensation expense | 229,000 | 133,000 | 89,000 |
Selling, General and Administrative | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost | |||
Total stock-based compensation expense | 2,402,000 | 1,751,000 | 860,000 |
Research and Development | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost | |||
Total stock-based compensation expense | 712,000 | 419,000 | 300,000 |
Non-employees | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost | |||
Total stock-based compensation expense | $ 256,000 | $ 121,000 | $ 103,000 |
Restricted Stock Units | |||
Unrecognized compensation expense | |||
Weighted-average expected period to recognize of compensation expense, term | 2 years 3 months 18 days | 3 years 9 months 18 days |
Stock Option Plans - Schedule55
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, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Expected term (in years) | 6 years | ||
Expected volatility | 60.00% | 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 | 35.00% | ||
Risk-free interest rate | 1.87% | 1.24% | 1.31% |
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 | 2.22% | 2.26% | 1.89% |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) | Jan. 01, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Income Tax Disclosure [Line Items] | |||||
Provision for income taxes | $ 0 | $ 0 | $ 0 | ||
Income before income taxes, U.S. | 39,900,000 | 40,600,000 | 37,600,000 | ||
Income before income taxes, Foreign | 0 | 0 | 0 | ||
Increase decrease in deferred tax asset valuation allowance | (7,100,000) | $ 15,300,000 | $ 12,700,000 | ||
2017 tax act deferred tax assets | $ 22,500,000 | ||||
Tax at statutory federal rate | 34.00% | 34.00% | 34.00% | ||
Unrecognized tax benefits, interest and penalties accrued | $ 0 | $ 0 | $ 0 | ||
Forecast | |||||
Income Tax Disclosure [Line Items] | |||||
Tax at statutory federal rate | 21.00% | ||||
ASU 2016-09 | |||||
Income Tax Disclosure [Line Items] | |||||
Change In Deferred Tax Assets | $ (16,400,000) | $ 1,000,000 | |||
Amount recognized related to deferred tax assets arose directly from tax deductions related to equity 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 | $ 171,000,000 | ||||
Net operating loss carryforwards expiration year | 2,026 | ||||
Research and development tax credits carryforwards | $ 1,100,000 | ||||
Research and development tax credits expiration year | 2,026 | ||||
Tax years under examination | 3 years | ||||
State | |||||
Income Tax Disclosure [Line Items] | |||||
Net operating loss carryforwards before tax effects | $ 124,800,000 | ||||
Net operating loss carryforwards expiration year | 2,027 | ||||
Research and development tax credits carryforwards | $ 1,500,000 | ||||
Research and development tax credits expiration term | indefinitely | ||||
Tax years under examination | 4 years | ||||
Maximum | |||||
Income Tax Disclosure [Line Items] | |||||
Tax at statutory federal rate | 35.00% |
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, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Taxes | |||
Tax at statutory federal rate | 34.00% | 34.00% | 34.00% |
State taxes, net of federal benefit | 8.00% | 3.50% | 0.40% |
Tax credits | 0.80% | 1.20% | 0.90% |
Change in valuation allowance | 17.90% | (37.70%) | (33.90%) |
Other | (0.80%) | (1.00%) | (1.40%) |
Federal Tax Rate Change | (59.90%) | ||
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, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Deferred tax assets: | |||
Net operating loss carryforwards | $ 43,168 | $ 49,261 | $ 35,474 |
Research and development | 1,732 | 1,343 | 986 |
Accrued liabilities and other | 1,282 | 1,567 | 935 |
Stock-based compensation | 998 | 823 | 485 |
Fixed assets | 482 | 477 | 219 |
Tenant improvement allowance | 447 | 744 | 836 |
Total deferred tax assets | 48,109 | 54,215 | 38,935 |
Valuation allowance | (48,109) | (54,215) | (38,935) |
Net deferred tax assets |
Income Taxes - Schedule of Re59
Income Taxes - Schedule of Reconciliation of the Company's Unrecognized Tax Benefits (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Taxes | |||
Balance at beginning of year | $ 448 | $ 329 | $ 261 |
Additions for tax positions taken in current year | 81 | 124 | 86 |
Increases (reductions) for tax positions taken in prior years | 48 | (5) | (18) |
Balance at end of year | $ 577 | $ 448 | $ 329 |
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, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Numerator: | |||||||||||
Net loss | $ (7,407) | $ (8,907) | $ (10,387) | $ (13,217) | $ (9,549) | $ (8,821) | $ (10,129) | $ (12,110) | $ (39,918) | $ (40,609) | $ (37,570) |
Denominator: | |||||||||||
Weighted-average common shares outstanding | 17,051,629 | 14,869,691 | 7,619,696 | ||||||||
Less: weighted-average unvested common shares subject to repurchase | (592) | (1,190) | (13,524) | ||||||||
Weighted-average shares used to compute net loss per common share, basic and diluted | 17,154,060 | 17,093,183 | 16,986,074 | 16,958,332 | 14,868,501 | 15,690,785 | 13,404,007 | 13,392,976 | 17,051,037 | 14,868,501 | 7,606,172 |
Net loss per common share, basic and diluted | $ (0.43) | $ (0.52) | $ (0.61) | $ (0.78) | $ (0.56) | $ (0.56) | $ (0.76) | $ (0.90) | $ (2.34) | $ (2.73) | $ (4.94) |
Net Loss per Common Share - S61
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, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share | |||
Antidilutive securities excluded from computation of diluted net loss per share | 3,736,367 | 2,714,414 | 2,175,796 |
Options to Purchase Common Stock | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share | |||
Antidilutive securities excluded from computation of diluted net loss per share | 3,232,692 | 2,445,600 | 2,038,789 |
Restricted Stock Units | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share | |||
Antidilutive securities excluded from computation of diluted net loss per share | 268,260 | 131,807 | |
Warrants to Purchase Common Stock | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share | |||
Antidilutive securities excluded from computation of diluted net loss per share | 235,415 | 137,007 | 137,007 |
Supplementary Financial Data 62
Supplementary Financial Data (Unaudited) - Schedule of Selected Quarterly Information (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Supplementary Financial Data | |||||||||||
Revenue | $ 11,228 | $ 9,600 | $ 9,768 | $ 9,023 | $ 9,356 | $ 8,478 | $ 8,223 | $ 6,404 | $ 39,619 | $ 32,461 | $ 21,031 |
Gross profit | 7,489 | 6,712 | 6,753 | 6,924 | 6,948 | 6,259 | 6,132 | 4,298 | 27,878 | 23,637 | 13,298 |
Loss from operations | (6,636) | (8,404) | (9,861) | (10,357) | (9,074) | (8,346) | (9,637) | (11,623) | (35,259) | (38,680) | (35,207) |
Net loss | $ (7,407) | $ (8,907) | $ (10,387) | $ (13,217) | $ (9,549) | $ (8,821) | $ (10,129) | $ (12,110) | $ (39,918) | $ (40,609) | $ (37,570) |
Net loss per common share, basic and diluted | $ (0.43) | $ (0.52) | $ (0.61) | $ (0.78) | $ (0.56) | $ (0.56) | $ (0.76) | $ (0.90) | $ (2.34) | $ (2.73) | $ (4.94) |
Weighted-average shares used to compute net loss per common share, basic and diluted | 17,154,060 | 17,093,183 | 16,986,074 | 16,958,332 | 14,868,501 | 15,690,785 | 13,404,007 | 13,392,976 | 17,051,037 | 14,868,501 | 7,606,172 |