Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2017 | Jul. 30, 2017 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2017 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q2 | |
Trading Symbol | OBLN | |
Entity Registrant Name | OBALON THERAPEUTICS INC | |
Entity Central Index Key | 1,427,570 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Non-accelerated Filer | |
Entity Common Stock, Shares Outstanding | 16,824,139 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Current assets: | ||
Cash and cash equivalents | $ 5,827 | $ 72,975 |
Short-term investments | 54,898 | 2,500 |
Accounts receivable, net | 1,757 | 0 |
Accounts receivable, related party | 0 | 515 |
Inventory | 747 | 827 |
Other current assets | 705 | 1,244 |
Total current assets | 63,934 | 78,061 |
Property and equipment, net | 1,044 | 717 |
Total assets | 64,978 | 78,778 |
Current liabilities: | ||
Accounts payable and accrued expenses | 697 | 595 |
Accrued compensation | 2,381 | 2,497 |
Accrued clinical expenses | 192 | 101 |
Deferred revenue | 206 | 121 |
Other current liabilities | 1,341 | 1,278 |
Total current liabilities | 4,817 | 4,592 |
Deferred rent | 39 | 0 |
Long-term loan, excluding current portion | 9,901 | 9,881 |
Total long-term liabilities | 9,940 | 9,881 |
Total liabilities | 14,757 | 14,473 |
Commitments and contingencies (See Note 10) | ||
Stockholders’ equity: | ||
Common stock, $0.001 par value; 300,000,000 shares authorized as of June 30, 2017 and December 31, 2016; 16,822,416 and 16,773,205 shares issued and outstanding as of June 30, 2017 and December 31, 2016, respectively | 17 | 17 |
Additional paid-in capital | 142,307 | 140,898 |
Accumulated other comprehensive loss | (19) | (1) |
Accumulated deficit | (92,084) | (76,609) |
Total stockholders’ equity | 50,221 | 64,305 |
Total liabilities and stockholders’ equity | $ 64,978 | $ 78,778 |
CONDENSED CONSOLIDATED BALANCE3
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Jun. 30, 2017 | Dec. 31, 2016 |
Statement of Financial Position [Abstract] | ||
Common stock, par value (in usd per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 300,000,000 | 300,000,000 |
Common stock, shares issued | 16,822,416 | 16,773,205 |
Common stock, shares outstanding | 16,822,416 | 16,773,205 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Revenue: | ||||
Revenue | $ 1,963 | $ 0 | $ 3,435 | $ 0 |
Revenue, related party | 0 | 779 | 0 | 1,848 |
Total revenue | 1,963 | 779 | 3,435 | 1,848 |
Cost of revenue | 990 | 672 | 1,813 | 1,294 |
Gross profit | 973 | 107 | 1,622 | 554 |
Operating expenses: | ||||
Research and development | 2,760 | 2,586 | 5,160 | 5,098 |
Selling, general and administrative | 5,853 | 1,596 | 11,793 | 2,975 |
Total operating expenses | 8,613 | 4,182 | 16,953 | 8,073 |
Loss from operations | (7,640) | (4,075) | (15,331) | (7,519) |
Interest expense, net | (35) | (143) | (89) | (290) |
Gain from change in fair value of warrant liability | 0 | 96 | 0 | 119 |
Other expense, net | (55) | (9) | (55) | (22) |
Net loss | (7,730) | (4,131) | (15,475) | (7,712) |
Other comprehensive (loss) income | 0 | 6 | (18) | 4 |
Net loss and comprehensive loss | $ (7,730) | $ (4,125) | $ (15,493) | $ (7,708) |
Net loss per share, basic and diluted (in dollars per share) | $ (0.46) | $ (7.15) | $ (0.93) | $ (13.37) |
Weighted-average common shares outstanding, basic and diluted (in shares) | 16,637,335 | 577,659 | 16,599,891 | 576,757 |
CONDENSED CONSOLIDATED STATEME5
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
Operating activities: | ||
Net loss | $ (15,475) | $ (7,712) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation and amortization | 136 | 90 |
Stock-based compensation | 1,079 | 145 |
Loss on disposal of fixed assets | 0 | 13 |
Change in fair value of warrant liability | 0 | (119) |
Amortization of investment premium, net | 11 | 55 |
Amortization of debt discount | 20 | 43 |
Change in operating assets and liabilities: | ||
Accounts receivable | (1,757) | 0 |
Accounts receivable from related party | 515 | 51 |
Inventory | 80 | (114) |
Other current assets | 539 | 46 |
Accounts payable and accrued expenses | 58 | 60 |
Accrued compensation | (116) | (1,014) |
Accrued clinical expenses | 91 | (301) |
Deferred revenue | 85 | 0 |
Other current and long term liabilities | 326 | 94 |
Net cash used in operating activities | (14,408) | (8,663) |
Investing activities: | ||
Purchases of short-term investments | (64,928) | (14,979) |
Maturities of short-term investments | 12,500 | 10,150 |
Purchase of property and equipment | (559) | (63) |
Net cash used in investing activities | (52,987) | (4,892) |
Financing activities: | ||
Issuance of preferred stock for cash, net of offering costs | 0 | 14,517 |
Proceeds from stock issued under employee stock purchase plan | 210 | 0 |
Proceeds from sale of common stock upon exercise of stock options | 37 | 11 |
Net cash provided by financing activities | 247 | 14,528 |
Net (decrease) increase in cash and cash equivalents | (67,148) | 973 |
Cash and cash equivalents at beginning of period | 72,975 | 3,356 |
Cash and cash equivalents at end of period | 5,827 | 4,329 |
Supplemental cash flow information: | ||
Interest paid | 270 | 266 |
Non-cash investing and financing activities: | ||
Property and equipment in accounts payable | $ 96 | $ 121 |
Organization and Basis of Prese
Organization and Basis of Presentation | 6 Months Ended |
Jun. 30, 2017 | |
Accounting Policies [Abstract] | |
Organization and Basis of Presentation | Organization and Basis of Presentation Obalon Therapeutics, Inc., or the Company, was incorporated in the state of Delaware on January 2, 2008. The Company is a vertically-integrated medical device company focused on developing and commercializing innovative medical devices to treat obese and overweight people. Using its patented technology, the Company has developed the Obalon balloon system, the first and only U.S. Food and Drug Administration, or FDA, approved swallowable, gas-filled intragastric balloon designed to provide progressive and sustained weight loss in obese patients. The unaudited interim condensed consolidated financial statements include the accounts of Obalon Therapeutics, Inc., and its wholly owned subsidiaries, Obalon Therapeutics, LLC and Obalon Mexico DE RL CV. Obalon Therapeutics, LLC is a shell Company, which owns 99% of Obalon Mexico DE RL CV. Obalon Mexico DE RL CV was dissolved during 2016 and Obalon Therapeutics, LLC was dissolved in 2017. All intercompany balances and transactions have been eliminated in consolidation. The accompanying unaudited interim condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles, or GAAP. The Company’s principal operations are located in Carlsbad, California, and it operates in one business segment. As of June 30, 2017 , the Company has devoted a substantial portion of its efforts to product development, raising capital, and building infrastructure, and, since January 2017, U.S. commercialization. The Company has incurred operating losses and has experienced negative cash flows from operations since its inception. In July 2012, the Company realized initial revenue from its planned principal operations. The Company recognized total revenue of $2.0 million and $0.8 million for the three months ended June 30, 2017 and 2016 , respectively, and $3.4 million and $1.8 million for the six months ended June 30, 2017 and 2016 , respectively. However, the Company has not yet established an ongoing source of revenues sufficient to cover its operating costs and has funded its activities to date almost exclusively from equity and debt financings. On September 8, 2016, the Company received premarket approval from the FDA to market the Obalon balloon system for temporary use to facilitate weight loss in obese adults with a body mass index, or BMI, of 30 to 40 who have failed to lose weight through diet and exercise. The Obalon balloon system is intended to be used as an adjunct to a moderate intensity diet and behavior modification program. The Company began selling its Obalon balloon system in the United States in January 2017. For all periods presented through December 31, 2016, all sales are to customers outside of the United States. Liquidity As reflected in the accompanying condensed consolidated financial statements, the Company has a limited operating history and the sales and income potential of the Company’s business are unproven. The Company has not been profitable since inception, and as of June 30, 2017 , its accumulated deficit was $92.1 million . Since inception, the Company has financed its operations primarily through private placements of preferred securities, the sale of common stock through its initial public offering (IPO) and, to a lesser extent, debt financing arrangements. The Company expects to continue to incur net losses for the foreseeable future as it continues to build its sales and marketing organization, and continues research and development efforts including clinical trials of products under development. The Company may need additional funding to pay expenses relating to its operating activities, including selling, general and administrative expenses and research and development expenses. Adequate funding, if needed, may not be available to the Company on acceptable terms, or at all. The failure to obtain sufficient funds on acceptable terms could have a material adverse effect on the Company’s business, results of operations or financial condition. The Company believes that its existing cash and cash equivalents and short-term investments and expected revenues will be sufficient to meet its capital requirements and fund its operations through at least the next twelve months from the date of this filing. Reclassifications C ertain immaterial reclassifications have been made to certain of the prior years’ consolidated financial statements to conform to the current year presentation. These reclassifications have not changed the results of operations. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2017 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Except for the revenue recognition policy described below, there were no significant changes to the accounting policies during the six months ended June 30, 2017 , from the significant accounting policies described in Note 2 of the “Notes to Consolidated Financial Statements” in the Company's Annual Report on Form 10-K for the year ended December 31, 2016, filed on February 23, 2017. Revenue Recognition The Company recognizes revenue when (i) persuasive evidence of an arrangement exists, (ii) delivery has occurred, (iii) the selling price is fixed or determinable and (iv) collectability is reasonably assured. Determination of criteria (iii) and (iv) are based on management’s judgments regarding the fixed nature of the selling prices of the products delivered and the collectability of those amounts. The Company evaluates its revenue contracts under the authoritative guidance for multiple-element arrangements to determine whether each deliverable represents a separate unit of accounting. A deliverable constitutes a separate unit of accounting when it has standalone value to the customer. If the deliverable does not have standalone value without one of the undelivered elements in the arrangement, the Company combines such elements and accounts for them as a single unit of accounting. The Company allocates revenue to each separate unit of accounting based on a selling price hierarchy at the arrangement inception. The selling price for each element is based upon the following selling price hierarchy: vendor specific objective evidence, or VSOE, if available, third-party evidence, or TPE, if VSOE is not available, or estimated selling price, or ESP, if neither VSOE nor TPE are available. Typically, the components of the Obalon balloon system are packaged in a kit and delivered to the customer at the same time. If a partial delivery occurs, the Company recognizes revenue for the components which have been delivered and have met the aforementioned revenue recognition criteria. The Company allocates revenue to the various components based on management’s estimated selling price of each component. The Company bases the estimated selling price of each Obalon balloon system component using estimates within a range of selling prices considering multiple factors including, but not limited to, size of transaction, pricing strategies and market conditions. Estimated costs of customer incentive programs are recorded at the time the incentives are offered, based on the specific terms and conditions of the program. Estimated costs from these programs are recorded as a reduction of revenue unless the Company receives a separately identifiable benefit from the customer and can reasonably estimate the fair value of that benefit, in which case, these costs are recorded as an operating expense. In January 2017, the Company began offering a swallow guarantee program in the United States where it may provide replacement balloons to physicians and institutions when patients are unsuccessful in swallowing an Obalon balloon, subject to certain requirements and restrictions. The Company defers revenue relating to its swallow guarantee program based on its expected failure rate and then recognizes the revenue when replacement balloons are provided. The Company does not provide for rights of return to customers on product sales, with the exception of products that fail to conform to the Company’s specifications. As these non-conforming returns have historically been immaterial, the Company does not record a provision for returns. Shipping charges billed to customers are included in product revenue and the related shipping costs are included in cost of revenue. The Company's revenue contracts do not provide for maintenance. Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of assets and liabilities at the date of the financial statements and the reported amounts of expenses during the reporting period. Reported amounts and note disclosures reflect the overall economic conditions that are most likely to occur and anticipated measures management intends to take. Actual results could differ materially from those estimates. All revisions to accounting estimates are recognized in the period in which the estimates are revised and in any future periods affected. Unaudited Interim Condensed Consolidated Financial Statements The interim condensed consolidated financial statements as of June 30, 2017 and for the three and six months ended June 30, 2017 and 2016 are unaudited. The unaudited interim condensed consolidated financial statements have been prepared on the same basis as the annual financial statements and reflect, in the opinion of management, all adjustments of a normal and recurring nature that are necessary for the fair presentation of the Company’s condensed consolidated financial position as of June 30, 2017 and its condensed consolidated results of operations for the three and six months ended June 30, 2017 and 2016, and cash flows for the six months ended June 30, 2017 and 2016 . The results of operations for the three and six months ended June 30, 2017 are not necessarily indicative of the results to be expected for the year ending December 31, 2017 or for any other future annual or interim period. The balance sheet as of December 31, 2016 included herein was derived from the audited financial statements as of that date. These financial statements should be read in conjunction with the Company’s audited financial statements included in the Company's Annual Report on Form 10-K for the year ended December 31, 2016, filed on February 23, 2017. Fair Value Measurements The carrying values of the Company’s financial instruments, including cash and cash equivalents, short-term investments, accounts receivable, accounts receivable from related party, accounts payable, and accrued expenses approximate their fair values due to the short maturity of these instruments. The carrying value of the term loan approximates its fair value as the interest rate and other terms are that which are currently available to the Company. The Company utilizes valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs to the extent possible. The Company determines fair value based on assumptions that market participants would use in pricing an asset or liability in the principal or most advantageous market. When considering market participant assumptions in fair value measurements, the following fair value hierarchy distinguishes between observable and unobservable inputs, which are categorized in one of the following levels in accordance with authoritative accounting guidance: • Level 1 inputs: Observable inputs such as unadjusted, quoted prices in active markets for identical assets or liabilities at the measurement date. • Level 2 inputs: Other than quoted prices included in Level 1, inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the asset or liability. • Level 3 inputs: Unobservable inputs for the asset or liability used to measure fair value to the extent that observable inputs are not available, thereby allowing for situations in which there is little, if any, market activity for the asset or liability at measurement date. Net Loss per Share Basic net loss per share is calculated by dividing the net loss by the weighted-average number of shares of common stock outstanding during the period without consideration for common stock equivalents. Diluted net loss per share is the same as basic net loss per common share, since the effects of potentially dilutive securities are anti-dilutive due to the net loss position of all periods presented. Dilutive common stock equivalents are comprised of warrants, if material, and unexercised stock options outstanding under the Company’s equity plan. Recently Issued and Adopted Accounting Principles Recently Issued Accounting Pronouncements From time to time, new accounting pronouncements are issued by the Financial Accounting Standards Board, or FASB, or other standard setting bodies that are adopted by the Company as of the specified effective date. Unless otherwise discussed, the Company believes that the impact of recently issued standards that are not yet effective will not have a material impact on its financial position or results of operations upon adoption. In August 2015, the FASB issued Accounting Standards Update, or ASU, 2015-14, Revenue from Contracts with Customers (Topic 606) , which defers the effective date of ASU 2014-09 for all entities by one year. ASU 2014-09, which was issued in March 2014 and has been codified with the Accounting Standards Codification, or ASC, as Topic 606, is now effective for public companies for annual reporting periods, and interim periods within those periods, beginning after December 15, 2017. ASC 606 outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance, including industry-specific guidance. In addition, ASC 606 provides guidance on accounting for certain revenue-related costs including, but not limited to, when to capitalize costs associated with obtaining and fulfilling a contract. ASC 606 provides companies with two implementation methods: (a) full retrospective adoption, meaning the standard is applied to all periods presented, or (b) modified retrospective adoption, meaning the cumulative effect of applying the new standard is recognized as an adjustment to the opening retained earnings balance. Since ASU 2014-09 was issued, several additional ASUs have been issued and incorporated within ASC 606 to clarify various elements of the guidance. As the Company began its commercialization in the United States in January 2017 and began entering into sales agreements with customers as part of this commercialization, the Company is continuing to assess the potential impacts of the standard, including the impact to the pattern with which it recognizes revenue based on the terms entered into and finalizing the determination of transition approach. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) . Under this new guidance, at the commencement date, lessees will be required to recognize (i) a lease liability, which is a lessee’s obligation to make lease payments arising from a lease, measured on a discounted basis and (ii) a right-of-use asset, which is an asset that represents the lessee’s right to use, or control the use of, a specified asset for the lease term. This guidance is not applicable for leases with a term of 12 months or less. The new standard is effective for annual reporting periods, and interim periods within those periods, beginning after December 15, 2018, with early adoption permitted. The Company is currently evaluating the impact that this standard will have on its consolidated financial statements. In January 2017, the FASB issued ASU 2017-01, Business Combinations: Clarifying the Definition of a Business (Topic 605). This guidance was created to assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. This guidance provides a screen to determine whether an integrated set of assets and activities is a business. The screen requires that when substantially all of the fair value of the gross assets acquired (or disposed of) is concentrated in a single identifiable asset or a group of similar identifiable assets, the set is not a business. The new standard is effective for annual reporting periods, and interim periods within those periods, beginning after December 15, 2017. The Company does not anticipate this standard to have an impact on the Company’s consolidated financial statements unless a transaction occurs that would need to be evaluated under this ASU at which time the Company would assess the impact of this standard. In May 2017, the FASB issued ASU 2017-09, Compensation-Stock Compensation (Topic 718). This guidance was created to provide clarity and reduce both (1) diversity in practice and (2) cost and complexity when applying the guidance in Topic 718 to a change in the terms or conditions of a share-based payment award. ASU 2017-09 provides guidance about which changes to the terms or conditions of a share-based payment award require an entity to apply modification accounting under Topic 718. The amendments in ASU 2017-09 should be applied prospectively to an award modified on or after the adoption date. This guidance is effective for fiscal years, and interim periods within those years, beginning after December 15, 2017, with early adoption permitted. The Company does not anticipate that the adoption of ASU 2017-09 will have a material impact on its consolidated financial statements unless there are significant changes to the Company's outstanding share based payment awards at which time the Company would assess the impact of the standard. Recently Adopted Accounting Pronouncements In July 2015, FASB issued ASU 2015-11, Simplifying the Measurement of Inventory (Topic 330) . This update applies to companies that measure inventory on a first in, first out, or FIFO, or average cost basis. Under this update, companies are to measure their inventory at the lower of cost and net realizable value. Net realizable value is the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion. The amendments in this update are effective for annual reporting periods, and interim periods within those periods, beginning after December 15, 2016 with earlier application permitted as of the beginning of an interim or annual reporting period. The adoption, effective January 1, 2017, did not have a material impact on the Company’s condensed consolidated financial statements. In March 2016, the FASB issued ASU 2016-09, Improvements to Employee Share-Based Payment Accounting Compensation - Stock Compensation (Topic 718) , which involves several aspects of the accounting for stock-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. This new guidance requires all income tax effects of awards to be recognized as income tax expense or benefit in the income statement when the awards vest or are settled, as opposed to additional paid-in-capital where it is currently recorded. It also allows an employer to repurchase more of an employee’s shares than it could for tax withholding purposes without triggering liability accounting. All tax-related cash flows resulting from stock-based payments are reported as operating activities on the statement of cash flows. The guidance also allows a Company to make a policy election to either estimate the number of awards that are expected to vest or account for forfeitures as they occur. This new standard is effective for annual reporting periods, and interim periods within those periods, beginning after December 15, 2016, with early adoption permitted. The Company adopted this guidance effective January 1, 2017. As the Company does not recognize any tax benefit related to employee stock-based compensation expense as a result of the full valuation allowance on its deferred tax assets nor does it currently grant share grants nor withhold any taxes upon option exercises, the adoption did not result in an impact to its financial statements. In addition, the Company elected to keep its policy consistent for the application of a forfeiture rate. |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements Instruments Recorded at Fair Value on a Recurring Basis The Company has segregated all financial assets and liabilities that are measured at fair value on a recurring basis (at least annually) into the most appropriate level within the fair value hierarchy based on the inputs used to determine the fair value at the measurement date in the table below. Assets and liabilities measured at fair value on a recurring basis as of June 30, 2017 and December 31, 2016 are as follows (in thousands): Fair value measurements at reporting date using Balance as of June 30, 2017 Quoted prices in active markets for identical assets (Level 1) Significant other observable inputs (Level 2) Significant unobservable inputs (Level 3) Assets: Cash and cash equivalents: Money market funds $ 5,827 $ 5,827 $ — $ — Short-term investments: U.S. Treasury bonds 54,898 54,898 — — Total assets $ 60,725 $ 60,725 $ — $ — Fair value measurements at reporting date using Balance as of December 31, 2016 Quoted prices in active markets for identical assets (Level 1) Significant other observable inputs (Level 2) Significant unobservable inputs (Level 3) Assets: Short-term investments: U.S. Treasury bonds 2,500 2,500 — — Total assets $ 2,500 $ 2,500 $ — $ — The Company’s investments in Level 1 assets are valued based on publicly available quoted market prices for identical securities as of June 30, 2017 and December 31, 2016 . Instruments Not Recorded at Fair Value on a Recurring Basis The estimated fair value of long-term loan is determined by Level 2 inputs and is based primarily on quoted market prices for the same or similar issues. The recorded value of long-term loan approximates the current fair value as the interest rate and other terms are that which are currently available to the Company. |
Net Loss per Share
Net Loss per Share | 6 Months Ended |
Jun. 30, 2017 | |
Earnings Per Share [Abstract] | |
Net Loss per Share | Net Loss per Share The following table sets forth the computation of basic and diluted net loss per share of common stock (in thousands, except for shares and per share data): Three Months Ended June 30, Six Months Ended June 30, 2017 2016 2017 2016 Net loss $ (7,730 ) (4,131 ) (15,475 ) (7,712 ) Weighted-average common shares outstanding, basic and diluted 16,637,335 577,659 16,599,891 576,757 Net loss per share, basic and diluted $ (0.46 ) $ (7.15 ) $ (0.93 ) $ (13.37 ) The following table sets forth the outstanding potentially dilutive securities determined using the treasury stock and if-converted methods that have been excluded in the calculation of diluted net loss per share because to do so would be anti-dilutive (in common stock equivalent shares): Three Months Ended June 30, Six Months Ended June 30, 2017 2016 2017 2016 Convertible preferred stock, on an as-if-converted basis — 9,760,480 — 9,102,237 Stock options to purchase common stock 924,963 74,710 920,199 291,060 Total 924,963 9,835,190 920,199 9,393,297 |
Balance Sheet Details
Balance Sheet Details | 6 Months Ended |
Jun. 30, 2017 | |
Balance Sheet Related Disclosures [Abstract] | |
Balance Sheet Details | Balance Sheet Details Short-term investments consist of the following (in thousands): Maturity (in years) Amortized cost Gross unrealized gains Gross unrealized losses Estimated fair value At June 30, 2017 U.S. Treasury 1 year or less $ 54,917 $ — $ (19 ) $ 54,898 Maturity (in years) Amortized cost Gross unrealized gains Gross unrealized losses Estimated fair value At December 31, 2016 U.S. Treasury 1 year or less $ 2,501 $ — $ (1 ) $ 2,500 Inventory consist of the following (in thousands): June 30, 2017 December 31, 2016 Raw materials $ 591 $ 379 Work in process 119 239 Finished goods 37 209 Total $ 747 $ 827 Other current assets consist of the following (in thousands): June 30, 2017 December 31, 2016 Prepaid assets 433 962 Interest receivable 136 5 Other assets 136 277 Total $ 705 $ 1,244 Property and equipment, net consist of the following (in thousands): June 30, 2017 December 31, 2016 Computer equipment $ 578 $ 334 Leasehold improvements 223 193 Furniture and fixtures 156 118 Scientific equipment 962 854 Construction in progress, or CIP 345 302 2,264 1,801 Less: accumulated depreciation and amortization (1,220 ) (1,084 ) Total $ 1,044 $ 717 Depreciation and amortization expense was $0.1 million and immaterial for the three months ended June 30, 2017 and 2016, respectively, and $0.1 million for each of the six months ended June 30, 2017 and 2016, respectively. Other current liabilities consist of the following (in thousands): June 30, 2017 December 31, 2016 Accrued professional fees 363 560 Accrued legal 151 53 Accrued interest 44 44 Other accrued expenses 783 621 Total $ 1,341 $ 1,278 |
Term Loan
Term Loan | 6 Months Ended |
Jun. 30, 2017 | |
Debt Disclosure [Abstract] | |
Term Loan | Term Loan In June 2013, the Company entered into a $3.0 million loan and security agreement (Loan Agreement) with Square 1 Bank (predecessor-in-interest to Pacific Western Bank), which it subsequently amended in October 2014, September 2016, December 2016 and June 2017. The Company can borrow up to $15.0 million in two tranches as follows: a first tranche consisting of $10.0 million funded on December 21, 2016, of which the full $10.0 million was required to be used to settle the existing debt with Pacific Western Bank on a net settlement basis (pursuant to its original terms); and a second tranche consisting of an additional $5.0 million which may be drawn at any time prior to December 21, 2017 (the "Term Loans"). The Term Loans bear interest at the greater of prime rate plus 1.50% per annum, or 5.00% . The Term Loans mature on December 21, 2020 and have an interest-only period through June 21, 2018 followed by 30 equal monthly installments of principal and interest with the first principal payment due on July 1, 2018. The Term Loans may be prepaid in full at any time with no additional cost. The loan fee paid and the remaining balance of debt issuance costs and debt discount on the previous loan agreements held with Pacific Western Bank are amortized to interest expense over the remaining term of the Loan Agreement using the effective-interest method. The Loan Agreement also states that the Company's accounts maintained with the bank contain an aggregate balance in an amount equal to or greater than the total amount of outstanding debt under the Loan Agreement. While the bank has a security interest in those funds, the Company is able to use the funds in the ordinary course of its business. Total long-term loan and unamortized debt discount balances are as follows (in thousands): June 30, 2017 Face value $ 10,000 Less: unamortized debt issuance costs (99 ) Total long-term loan $ 9,901 Less: current portion of long-term loan — Total long-term loan, excluding current portion $ 9,901 As of June 30, 2017 , future principal payments due under the Loan Agreement are as follows (in thousands): Year ended: December 31, 2017 — December 31, 2018 2,000 December 31, 2019 4,000 December 31, 2020 4,000 December 31, 2021 — Total future principal payments due under the Loan Agreement $ 10,000 |
Stock-Based Compensation
Stock-Based Compensation | 6 Months Ended |
Jun. 30, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation As of June 30, 2017 , 1,617,085 options remained available for future grant under the 2016 Equity Incentive Plan. No other plans had options available for grant. The grant date fair value of stock options for employees was estimated using a Black-Scholes option pricing model with the following assumptions: Three Months Ended June 30, Six Months Ended June 30, 2017 2016 2017 2016 Assumed risk-free interest rate 1.83% - 1.93% 1.49 % 1.83% -2.23% 1.49 % Assumed volatility 57.53%- 58.83% 53.49 % 55.11%- 58.83% 53.49 % Expected option life 6.1 years 6.1 years 6.1 years 6.1 years Expected dividend yield — % — % — % — % The Company recognizes stock-based compensation straight-line over the vesting term of the options. The Company recorded stock-based compensation, including stock-based compensation to employees and nonemployees in the condensed consolidated statements of operations and comprehensive loss as follows (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2017 2016 2017 2016 Cost of revenue $ 26 $ 8 53 15 Research and development 98 13 197 25 Selling, general and administrative 492 74 829 105 Total $ 616 $ 95 1,079 145 Unrecognized compensation expense at June 30, 2017 was approximately $6.0 million , which is expected to be recognized over a weighted-average term of 6.1 years . The following table summarizes stock option transactions for the 2016 Plan for the six months ended June 30, 2017 (in thousands, except shares and per share data): Number of shares Weighted- average exercise price per share Weighted- average remaining contractual life (in years) Aggregate intrinsic value (in thousands) Outstanding at December 31, 2016 2,225,684 $ 5.00 Options granted 549,834 10.02 Options exercised (26,005 ) 1.44 Options canceled (19,446 ) 6.14 Outstanding at June 30, 2017 2,730,067 $ 6.04 8.6 years $ 10,744 Vested and expected to vest at June 30, 2017 2,455,271 $ 5.90 8.5 years $ 9,984 Vested and exercisable at June 30, 2017 726,415 $ 3.40 6.7 years $ 4,733 Certain options outstanding under the 2008 Plan are exercisable under the early exercise provisions of the 2008 Plan. There are no early exercise provisions under the 2016 Plan. Options granted under the 2008 Plan that are exercised prior to vesting are subject to repurchase by the Company at the original issue price and will vest according to the respective option agreement. During the prior year ended December 31, 2016, 252,453 options were early exercised and 154,725 remain unvested as of June 30, 2017 with a related liability of $0.2 million recorded under other current liabilities on the Company’s condensed consolidated balance sheet as of June 30, 2017 . There were no options early exercised during the six months ended June 30, 2017 . Employee Stock Purchase Plan On October 5, 2016, the Employee Stock Purchase Plan, or ESPP, became effective. The ESPP was adopted in order to enable eligible employees to purchase shares of the Company’s common stock at a discount. Purchases will be accomplished through participation in discrete offering periods. The Company initially reserved 180,000 shares of common stock for issuance under the ESPP. The number of shares reserved for issuance under the ESPP increases automatically on January 1 of each calendar year beginning after the first offering date and continuing through the first ten calendar years by the number of shares equal to 1% of the total outstanding shares of common stock and common stock equivalents as of the immediately preceding December 31. During the three and six months ended June 30, 2017, 23,206 shares were issued pursuant to ESPP purchases. Stock-based compensation expense related to the ESPP was immaterial and $0.1 million for the three and six months ended June 30, 2017 , respectively, and is included in total stock-based compensation expense previously disclosed. |
Stockholders' Equity
Stockholders' Equity | 6 Months Ended |
Jun. 30, 2017 | |
Equity [Abstract] | |
Stockholders' Equity | Stockholder's Equity Outstanding Warrants The following equity classified warrants were outstanding as of June 30, 2017 : Shares Weighted- average exercise price Issuance date Expiration date Common stock warrants 24,224 $ 6.1918 Feb 24, 2012 Feb 24, 2019 Total 24,224 $ 6.1918 Common Stock Reserved for Future Issuance Common stock reserved for future issuance consists of the following as of June 30, 2017 : Stock options issued and outstanding 2,730,067 Authorized for future option grants 1,617,085 Authorized for future issuance under ESPP 347,025 Warrants outstanding 24,224 Total 4,718,401 |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes For the three and six months ended June 30, 2017 and 2016 , the Company did not record an income tax provision. The U.S. federal and California deferred tax assets generated from the Company’s net operating losses have been fully reserved, as the Company believes it is more likely than not the benefit will not be realized. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies The Company leases facilities under a noncancelable operating lease that expires on March 31, 2019 . Under the terms of the facilities lease, the Company is required to pay its proportionate share of property taxes, insurance and normal maintenance costs. Future noncancelable minimum payment obligations under the operating lease were as follows as of June 30, 2017 (in thousands): Year ended: December 31, 2017 $ 162 December 31, 2018 397 December 31, 2019 100 Total future payments due under building lease $ 659 Rent expense was $0.1 million for each of the three months ended June 30, 2017 and 2016, respectively, and $0.2 million and $0.1 million for the six months ended June 30, 2017 and 2016 , respectively. |
Related Party Transactions
Related Party Transactions | 6 Months Ended |
Jun. 30, 2017 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions In June 2013, the Company and Bader Sultan & Bros. Co W.L.L., or Bader, a healthcare products distributor based in Sufat, Kuwait, entered into a distribution agreement, whereby the Company appointed Bader as a distributor of its products in the Middle East. Sales to Bader began in November 2013. Bader subsequently participated in the Company's Series D convertible preferred stock financing in 2014. Prior to the Company's initial public offering, or IPO, in October 2016, Bader was considered a related party due to its beneficial ownership percentage of the Company. As a result of Bader’s decreased beneficial ownership percentage of the Company following the IPO, Bader is no longer a related party for accounting purposes. Sales to Bader for the three months ended June 30, 2017 and 2016 were immaterial and $0.8 million , respectively, which represent an immaterial percentage and 100% of total revenue for the respective periods. Sales to Bader for the six months ended June 30, 2017 and 2016 were immaterial and $1.8 million , respectively, which represent an immaterial percentage and 100% of total revenue for the respective periods. |
Subsequent Events
Subsequent Events | 6 Months Ended |
Jun. 30, 2017 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events Commencement of Middle East Sales In July 2017, the Company began selling its current generation Obalon balloon system to Bader in the Middle East. Sale of New Capsule in United States In July 2017, the Company began selling the Obalon balloon system with the vegetable-based HydroxyPropylMethylCellulose, or HPMC, capsule to physicians and institutions in the United States. Stock Option Grants Subsequent to June 30, 2017, stock options for 0.1 million shares of the Company's common stock were granted to Company employees. |
Summary of Significant Accoun18
Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2017 | |
Accounting Policies [Abstract] | |
Revenue Recognition | Revenue Recognition The Company recognizes revenue when (i) persuasive evidence of an arrangement exists, (ii) delivery has occurred, (iii) the selling price is fixed or determinable and (iv) collectability is reasonably assured. Determination of criteria (iii) and (iv) are based on management’s judgments regarding the fixed nature of the selling prices of the products delivered and the collectability of those amounts. The Company evaluates its revenue contracts under the authoritative guidance for multiple-element arrangements to determine whether each deliverable represents a separate unit of accounting. A deliverable constitutes a separate unit of accounting when it has standalone value to the customer. If the deliverable does not have standalone value without one of the undelivered elements in the arrangement, the Company combines such elements and accounts for them as a single unit of accounting. The Company allocates revenue to each separate unit of accounting based on a selling price hierarchy at the arrangement inception. The selling price for each element is based upon the following selling price hierarchy: vendor specific objective evidence, or VSOE, if available, third-party evidence, or TPE, if VSOE is not available, or estimated selling price, or ESP, if neither VSOE nor TPE are available. Typically, the components of the Obalon balloon system are packaged in a kit and delivered to the customer at the same time. If a partial delivery occurs, the Company recognizes revenue for the components which have been delivered and have met the aforementioned revenue recognition criteria. The Company allocates revenue to the various components based on management’s estimated selling price of each component. The Company bases the estimated selling price of each Obalon balloon system component using estimates within a range of selling prices considering multiple factors including, but not limited to, size of transaction, pricing strategies and market conditions. Estimated costs of customer incentive programs are recorded at the time the incentives are offered, based on the specific terms and conditions of the program. Estimated costs from these programs are recorded as a reduction of revenue unless the Company receives a separately identifiable benefit from the customer and can reasonably estimate the fair value of that benefit, in which case, these costs are recorded as an operating expense. In January 2017, the Company began offering a swallow guarantee program in the United States where it may provide replacement balloons to physicians and institutions when patients are unsuccessful in swallowing an Obalon balloon, subject to certain requirements and restrictions. The Company defers revenue relating to its swallow guarantee program based on its expected failure rate and then recognizes the revenue when replacement balloons are provided. The Company does not provide for rights of return to customers on product sales, with the exception of products that fail to conform to the Company’s specifications. As these non-conforming returns have historically been immaterial, the Company does not record a provision for returns. Shipping charges billed to customers are included in product revenue and the related shipping costs are included in cost of revenue. The Company's revenue contracts do not provide for maintenance. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of assets and liabilities at the date of the financial statements and the reported amounts of expenses during the reporting period. Reported amounts and note disclosures reflect the overall economic conditions that are most likely to occur and anticipated measures management intends to take. Actual results could differ materially from those estimates. All revisions to accounting estimates are recognized in the period in which the estimates are revised and in any future periods affected. |
Unaudited Interim Condensed Consolidated Financial Statements | Unaudited Interim Condensed Consolidated Financial Statements The interim condensed consolidated financial statements as of June 30, 2017 and for the three and six months ended June 30, 2017 and 2016 are unaudited. The unaudited interim condensed consolidated financial statements have been prepared on the same basis as the annual financial statements and reflect, in the opinion of management, all adjustments of a normal and recurring nature that are necessary for the fair presentation of the Company’s condensed consolidated financial position as of June 30, 2017 and its condensed consolidated results of operations for the three and six months ended June 30, 2017 and 2016, and cash flows for the six months ended June 30, 2017 and 2016 . The results of operations for the three and six months ended June 30, 2017 are not necessarily indicative of the results to be expected for the year ending December 31, 2017 or for any other future annual or interim period. The balance sheet as of December 31, 2016 included herein was derived from the audited financial statements as of that date. These financial statements should be read in conjunction with the Company’s audited financial statements included in the Company's Annual Report on Form 10-K for the year ended December 31, 2016, filed on February 23, 2017. |
Fair Value Measurements | Fair Value Measurements The carrying values of the Company’s financial instruments, including cash and cash equivalents, short-term investments, accounts receivable, accounts receivable from related party, accounts payable, and accrued expenses approximate their fair values due to the short maturity of these instruments. The carrying value of the term loan approximates its fair value as the interest rate and other terms are that which are currently available to the Company. The Company utilizes valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs to the extent possible. The Company determines fair value based on assumptions that market participants would use in pricing an asset or liability in the principal or most advantageous market. When considering market participant assumptions in fair value measurements, the following fair value hierarchy distinguishes between observable and unobservable inputs, which are categorized in one of the following levels in accordance with authoritative accounting guidance: • Level 1 inputs: Observable inputs such as unadjusted, quoted prices in active markets for identical assets or liabilities at the measurement date. • Level 2 inputs: Other than quoted prices included in Level 1, inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the asset or liability. • Level 3 inputs: Unobservable inputs for the asset or liability used to measure fair value to the extent that observable inputs are not available, thereby allowing for situations in which there is little, if any, market activity for the asset or liability at measurement date. |
Net Loss per Share | Net Loss per Share Basic net loss per share is calculated by dividing the net loss by the weighted-average number of shares of common stock outstanding during the period without consideration for common stock equivalents. Diluted net loss per share is the same as basic net loss per common share, since the effects of potentially dilutive securities are anti-dilutive due to the net loss position of all periods presented. Dilutive common stock equivalents are comprised of warrants, if material, and unexercised stock options outstanding under the Company’s equity plan. |
Recently Issued and Adopted Accounting Principals | Recently Issued and Adopted Accounting Principles Recently Issued Accounting Pronouncements From time to time, new accounting pronouncements are issued by the Financial Accounting Standards Board, or FASB, or other standard setting bodies that are adopted by the Company as of the specified effective date. Unless otherwise discussed, the Company believes that the impact of recently issued standards that are not yet effective will not have a material impact on its financial position or results of operations upon adoption. In August 2015, the FASB issued Accounting Standards Update, or ASU, 2015-14, Revenue from Contracts with Customers (Topic 606) , which defers the effective date of ASU 2014-09 for all entities by one year. ASU 2014-09, which was issued in March 2014 and has been codified with the Accounting Standards Codification, or ASC, as Topic 606, is now effective for public companies for annual reporting periods, and interim periods within those periods, beginning after December 15, 2017. ASC 606 outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance, including industry-specific guidance. In addition, ASC 606 provides guidance on accounting for certain revenue-related costs including, but not limited to, when to capitalize costs associated with obtaining and fulfilling a contract. ASC 606 provides companies with two implementation methods: (a) full retrospective adoption, meaning the standard is applied to all periods presented, or (b) modified retrospective adoption, meaning the cumulative effect of applying the new standard is recognized as an adjustment to the opening retained earnings balance. Since ASU 2014-09 was issued, several additional ASUs have been issued and incorporated within ASC 606 to clarify various elements of the guidance. As the Company began its commercialization in the United States in January 2017 and began entering into sales agreements with customers as part of this commercialization, the Company is continuing to assess the potential impacts of the standard, including the impact to the pattern with which it recognizes revenue based on the terms entered into and finalizing the determination of transition approach. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) . Under this new guidance, at the commencement date, lessees will be required to recognize (i) a lease liability, which is a lessee’s obligation to make lease payments arising from a lease, measured on a discounted basis and (ii) a right-of-use asset, which is an asset that represents the lessee’s right to use, or control the use of, a specified asset for the lease term. This guidance is not applicable for leases with a term of 12 months or less. The new standard is effective for annual reporting periods, and interim periods within those periods, beginning after December 15, 2018, with early adoption permitted. The Company is currently evaluating the impact that this standard will have on its consolidated financial statements. In January 2017, the FASB issued ASU 2017-01, Business Combinations: Clarifying the Definition of a Business (Topic 605). This guidance was created to assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. This guidance provides a screen to determine whether an integrated set of assets and activities is a business. The screen requires that when substantially all of the fair value of the gross assets acquired (or disposed of) is concentrated in a single identifiable asset or a group of similar identifiable assets, the set is not a business. The new standard is effective for annual reporting periods, and interim periods within those periods, beginning after December 15, 2017. The Company does not anticipate this standard to have an impact on the Company’s consolidated financial statements unless a transaction occurs that would need to be evaluated under this ASU at which time the Company would assess the impact of this standard. In May 2017, the FASB issued ASU 2017-09, Compensation-Stock Compensation (Topic 718). This guidance was created to provide clarity and reduce both (1) diversity in practice and (2) cost and complexity when applying the guidance in Topic 718 to a change in the terms or conditions of a share-based payment award. ASU 2017-09 provides guidance about which changes to the terms or conditions of a share-based payment award require an entity to apply modification accounting under Topic 718. The amendments in ASU 2017-09 should be applied prospectively to an award modified on or after the adoption date. This guidance is effective for fiscal years, and interim periods within those years, beginning after December 15, 2017, with early adoption permitted. The Company does not anticipate that the adoption of ASU 2017-09 will have a material impact on its consolidated financial statements unless there are significant changes to the Company's outstanding share based payment awards at which time the Company would assess the impact of the standard. Recently Adopted Accounting Pronouncements In July 2015, FASB issued ASU 2015-11, Simplifying the Measurement of Inventory (Topic 330) . This update applies to companies that measure inventory on a first in, first out, or FIFO, or average cost basis. Under this update, companies are to measure their inventory at the lower of cost and net realizable value. Net realizable value is the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion. The amendments in this update are effective for annual reporting periods, and interim periods within those periods, beginning after December 15, 2016 with earlier application permitted as of the beginning of an interim or annual reporting period. The adoption, effective January 1, 2017, did not have a material impact on the Company’s condensed consolidated financial statements. In March 2016, the FASB issued ASU 2016-09, Improvements to Employee Share-Based Payment Accounting Compensation - Stock Compensation (Topic 718) , which involves several aspects of the accounting for stock-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. This new guidance requires all income tax effects of awards to be recognized as income tax expense or benefit in the income statement when the awards vest or are settled, as opposed to additional paid-in-capital where it is currently recorded. It also allows an employer to repurchase more of an employee’s shares than it could for tax withholding purposes without triggering liability accounting. All tax-related cash flows resulting from stock-based payments are reported as operating activities on the statement of cash flows. The guidance also allows a Company to make a policy election to either estimate the number of awards that are expected to vest or account for forfeitures as they occur. This new standard is effective for annual reporting periods, and interim periods within those periods, beginning after December 15, 2016, with early adoption permitted. The Company adopted this guidance effective January 1, 2017. As the Company does not recognize any tax benefit related to employee stock-based compensation expense as a result of the full valuation allowance on its deferred tax assets nor does it currently grant share grants nor withhold any taxes upon option exercises, the adoption did not result in an impact to its financial statements. In addition, the Company elected to keep its policy consistent for the application of a forfeiture rate. |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Fair Value Disclosures [Abstract] | |
Schedule of Assets and Liabilities Measured at Fair Value on Recurring Basis | Assets and liabilities measured at fair value on a recurring basis as of June 30, 2017 and December 31, 2016 are as follows (in thousands): Fair value measurements at reporting date using Balance as of June 30, 2017 Quoted prices in active markets for identical assets (Level 1) Significant other observable inputs (Level 2) Significant unobservable inputs (Level 3) Assets: Cash and cash equivalents: Money market funds $ 5,827 $ 5,827 $ — $ — Short-term investments: U.S. Treasury bonds 54,898 54,898 — — Total assets $ 60,725 $ 60,725 $ — $ — Fair value measurements at reporting date using Balance as of December 31, 2016 Quoted prices in active markets for identical assets (Level 1) Significant other observable inputs (Level 2) Significant unobservable inputs (Level 3) Assets: Short-term investments: U.S. Treasury bonds 2,500 2,500 — — Total assets $ 2,500 $ 2,500 $ — $ — |
Net Loss per Share (Tables)
Net Loss per Share (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Earnings Per Share [Abstract] | |
Schedule of Computation of Basic and Diluted Net Loss per Share of Common Stock | The following table sets forth the computation of basic and diluted net loss per share of common stock (in thousands, except for shares and per share data): Three Months Ended June 30, Six Months Ended June 30, 2017 2016 2017 2016 Net loss $ (7,730 ) (4,131 ) (15,475 ) (7,712 ) Weighted-average common shares outstanding, basic and diluted 16,637,335 577,659 16,599,891 576,757 Net loss per share, basic and diluted $ (0.46 ) $ (7.15 ) $ (0.93 ) $ (13.37 ) |
Schedule of Anti-Dilutive Common Stock Equivalents Excluded from the Calculation of Diluted Net Loss Per Share | The following table sets forth the outstanding potentially dilutive securities determined using the treasury stock and if-converted methods that have been excluded in the calculation of diluted net loss per share because to do so would be anti-dilutive (in common stock equivalent shares): Three Months Ended June 30, Six Months Ended June 30, 2017 2016 2017 2016 Convertible preferred stock, on an as-if-converted basis — 9,760,480 — 9,102,237 Stock options to purchase common stock 924,963 74,710 920,199 291,060 Total 924,963 9,835,190 920,199 9,393,297 |
Balance Sheet Details (Tables)
Balance Sheet Details (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Balance Sheet Related Disclosures [Abstract] | |
Schedule of Short-term Investments | Short-term investments consist of the following (in thousands): Maturity (in years) Amortized cost Gross unrealized gains Gross unrealized losses Estimated fair value At June 30, 2017 U.S. Treasury 1 year or less $ 54,917 $ — $ (19 ) $ 54,898 Maturity (in years) Amortized cost Gross unrealized gains Gross unrealized losses Estimated fair value At December 31, 2016 U.S. Treasury 1 year or less $ 2,501 $ — $ (1 ) $ 2,500 |
Schedule of Inventory | Inventory consist of the following (in thousands): June 30, 2017 December 31, 2016 Raw materials $ 591 $ 379 Work in process 119 239 Finished goods 37 209 Total $ 747 $ 827 |
Schedule of Other Current Assets | Other current assets consist of the following (in thousands): June 30, 2017 December 31, 2016 Prepaid assets 433 962 Interest receivable 136 5 Other assets 136 277 Total $ 705 $ 1,244 |
Schedule of Property and Equipment, Net | Property and equipment, net consist of the following (in thousands): June 30, 2017 December 31, 2016 Computer equipment $ 578 $ 334 Leasehold improvements 223 193 Furniture and fixtures 156 118 Scientific equipment 962 854 Construction in progress, or CIP 345 302 2,264 1,801 Less: accumulated depreciation and amortization (1,220 ) (1,084 ) Total $ 1,044 $ 717 |
Schedule of Other Current Liabilities | Other current liabilities consist of the following (in thousands): June 30, 2017 December 31, 2016 Accrued professional fees 363 560 Accrued legal 151 53 Accrued interest 44 44 Other accrued expenses 783 621 Total $ 1,341 $ 1,278 |
Term Loan (Tables)
Term Loan (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Debt Disclosure [Abstract] | |
Summary of Total Long-term Loan and Unamortized Debt Discount | Total long-term loan and unamortized debt discount balances are as follows (in thousands): June 30, 2017 Face value $ 10,000 Less: unamortized debt issuance costs (99 ) Total long-term loan $ 9,901 Less: current portion of long-term loan — Total long-term loan, excluding current portion $ 9,901 |
Schedule of Future Principal Payments Due | As of June 30, 2017 , future principal payments due under the Loan Agreement are as follows (in thousands): Year ended: December 31, 2017 — December 31, 2018 2,000 December 31, 2019 4,000 December 31, 2020 4,000 December 31, 2021 — Total future principal payments due under the Loan Agreement $ 10,000 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Summary of Fair Value of Stock Options for Employees was Estimated using Black-Scholes Option Pricing Model | The grant date fair value of stock options for employees was estimated using a Black-Scholes option pricing model with the following assumptions: Three Months Ended June 30, Six Months Ended June 30, 2017 2016 2017 2016 Assumed risk-free interest rate 1.83% - 1.93% 1.49 % 1.83% -2.23% 1.49 % Assumed volatility 57.53%- 58.83% 53.49 % 55.11%- 58.83% 53.49 % Expected option life 6.1 years 6.1 years 6.1 years 6.1 years Expected dividend yield — % — % — % — % |
Summary of Non-cash Compensation to Employees and Nonemployees in Condensed Consolidated Statements of Operations and Comprehensive Loss | The Company recorded stock-based compensation, including stock-based compensation to employees and nonemployees in the condensed consolidated statements of operations and comprehensive loss as follows (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2017 2016 2017 2016 Cost of revenue $ 26 $ 8 53 15 Research and development 98 13 197 25 Selling, general and administrative 492 74 829 105 Total $ 616 $ 95 1,079 145 |
Summary of Stock Option Transactions | The following table summarizes stock option transactions for the 2016 Plan for the six months ended June 30, 2017 (in thousands, except shares and per share data): Number of shares Weighted- average exercise price per share Weighted- average remaining contractual life (in years) Aggregate intrinsic value (in thousands) Outstanding at December 31, 2016 2,225,684 $ 5.00 Options granted 549,834 10.02 Options exercised (26,005 ) 1.44 Options canceled (19,446 ) 6.14 Outstanding at June 30, 2017 2,730,067 $ 6.04 8.6 years $ 10,744 Vested and expected to vest at June 30, 2017 2,455,271 $ 5.90 8.5 years $ 9,984 Vested and exercisable at June 30, 2017 726,415 $ 3.40 6.7 years $ 4,733 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Equity [Abstract] | |
Schedule of Outstanding Warrants | The following equity classified warrants were outstanding as of June 30, 2017 : Shares Weighted- average exercise price Issuance date Expiration date Common stock warrants 24,224 $ 6.1918 Feb 24, 2012 Feb 24, 2019 Total 24,224 $ 6.1918 |
Schedule of Common Stock Reserved for Future Issuance | Common stock reserved for future issuance consists of the following as of June 30, 2017 : Stock options issued and outstanding 2,730,067 Authorized for future option grants 1,617,085 Authorized for future issuance under ESPP 347,025 Warrants outstanding 24,224 Total 4,718,401 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Future Noncancelable Minimum Payment Obligations Under Operating Lease | Future noncancelable minimum payment obligations under the operating lease were as follows as of June 30, 2017 (in thousands): Year ended: December 31, 2017 $ 162 December 31, 2018 397 December 31, 2019 100 Total future payments due under building lease $ 659 |
Organization and Basis of Pre26
Organization and Basis of Presentation - Additional Information (Detail) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2017USD ($) | Jun. 30, 2016USD ($) | Jun. 30, 2017USD ($)Segment | Jun. 30, 2016USD ($) | Dec. 31, 2016USD ($) | |
Basis Of Presentation And Organization [Line Items] | |||||
Number of operating segments | Segment | 1 | ||||
Total revenue | $ 1,963 | $ 779 | $ 3,435 | $ 1,848 | |
Accumulated deficit | $ (92,084) | $ (92,084) | $ (76,609) | ||
Obalon Mexico DE RL CV [Member] | |||||
Basis Of Presentation And Organization [Line Items] | |||||
Ownership percentage in subsidiary | 99.00% | 99.00% |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule of Assets and Liabilities Measured at Fair Value on Recurring Basis (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Total assets measured at fair value | $ 60,725 | $ 2,500 |
Money Market Funds | Cash and cash equivalents | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Total assets measured at fair value | 5,827 | |
U.S. Treasury Bonds | Short-term investments | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Total assets measured at fair value | 54,898 | 2,500 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Total assets measured at fair value | 60,725 | 2,500 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Money Market Funds | Cash and cash equivalents | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Total assets measured at fair value | 5,827 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | U.S. Treasury Bonds | Short-term investments | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Total assets measured at fair value | $ 54,898 | $ 2,500 |
Net Loss per Share - Schedule o
Net Loss per Share - Schedule of Computation of Basic and Diluted Net Loss Per Share of Common Stock (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Earnings Per Share [Abstract] | ||||
Net loss | $ (7,730) | $ (4,131) | $ (15,475) | $ (7,712) |
Weighted-average common shares outstanding, basic and diluted (in shares) | 16,637,335 | 577,659 | 16,599,891 | 576,757 |
Net loss per share, basic and diluted (in dollars per share) | $ (0.46) | $ (7.15) | $ (0.93) | $ (13.37) |
Net Loss per Share - Schedule29
Net Loss per Share - Schedule of Anti-Dilutive Common Stock Equivalents Excluded from the Calculation of Diluted Net Loss Per Share (Details) - shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||||
Anti-dilutive securities excluded from computation of diluted net loss per share | 924,963 | 9,835,190 | 920,199 | 9,393,297 |
Convertible Preferred Stock, On An As-If-Converted Basis | ||||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||||
Anti-dilutive securities excluded from computation of diluted net loss per share | 0 | 9,760,480 | 0 | 9,102,237 |
Stock Options to Purchase Common Stock | ||||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||||
Anti-dilutive securities excluded from computation of diluted net loss per share | 924,963 | 74,710 | 920,199 | 291,060 |
Balance Sheet Details - Schedul
Balance Sheet Details - Schedule of Short-term Investments (Details) - U.S. Treasury Bonds - Maturity in 1 Year or Less - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2017 | Dec. 31, 2016 | |
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized cost | $ 54,917 | $ 2,501 |
Gross unrealized gains | 0 | 0 |
Gross unrealized losses | (19) | (1) |
Estimated fair value | $ 54,898 | $ 2,500 |
Maximum maturity period | 1 year | 1 year |
Balance Sheet Details - Sched31
Balance Sheet Details - Schedule of Inventory (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Balance Sheet Related Disclosures [Abstract] | ||
Raw materials | $ 591 | $ 379 |
Work in process | 119 | 239 |
Finished goods | 37 | 209 |
Total | $ 747 | $ 827 |
Balance Sheet Details - Sched32
Balance Sheet Details - Schedule of Other Current Assets (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Balance Sheet Related Disclosures [Abstract] | ||
Prepaid assets | $ 433 | $ 962 |
Interest receivable | 136 | 5 |
Other assets | 136 | 277 |
Total | $ 705 | $ 1,244 |
Balance Sheet Details - Sched33
Balance Sheet Details - Schedule of Property and Equipment, Net (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | Dec. 31, 2016 | |
Property Plant And Equipment [Line Items] | ||||
Property and equipment, gross | $ 2,264 | $ 1,801 | ||
Less: accumulated depreciation and amortization | (1,220) | (1,084) | ||
Total | 1,044 | 717 | ||
Depreciation and amortization | $ 100 | 136 | $ 90 | |
Computer equipment | ||||
Property Plant And Equipment [Line Items] | ||||
Property and equipment, gross | 578 | 334 | ||
Leasehold improvements | ||||
Property Plant And Equipment [Line Items] | ||||
Property and equipment, gross | 223 | 193 | ||
Furniture and fixtures | ||||
Property Plant And Equipment [Line Items] | ||||
Property and equipment, gross | 156 | 118 | ||
Scientific equipment | ||||
Property Plant And Equipment [Line Items] | ||||
Property and equipment, gross | 962 | 854 | ||
Construction in progress, or CIP | ||||
Property Plant And Equipment [Line Items] | ||||
Property and equipment, gross | $ 345 | $ 302 |
Balance Sheet Details - Sched34
Balance Sheet Details - Schedule of Other Current Liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Balance Sheet Related Disclosures [Abstract] | ||
Accrued professional fees | $ 363 | $ 560 |
Accrued legal | 151 | 53 |
Accrued interest | 44 | 44 |
Other accrued expenses | 783 | 621 |
Total | $ 1,341 | $ 1,278 |
Term Loan - Additional Informat
Term Loan - Additional Information (Details) - Pacific Western Bank | Dec. 21, 2016USD ($)installmenttranche | Jun. 30, 2013USD ($) |
2013 Loan Agreement | ||
Debt Instrument [Line Items] | ||
Term loan, maximum borrowings | $ 3,000,000 | |
December 2016 Loan Agreement | ||
Debt Instrument [Line Items] | ||
Term loan, maximum borrowings | $ 15,000,000 | |
Number of tranches | tranche | 2 | |
Term loan, fixed interest rate | 5.00% | |
Number of installment payments | installment | 30 | |
December 2016 Loan Agreement | Prime Rate | ||
Debt Instrument [Line Items] | ||
Term loan, variable interest rate | 1.50% | |
December 2016 Loan Agreement | First Tranche | ||
Debt Instrument [Line Items] | ||
Term loan, maximum borrowings | $ 10,000,000 | |
December 2016 Loan Agreement | Second Tranche | ||
Debt Instrument [Line Items] | ||
Additional term loan available for draw down | $ 5,000,000 |
Term Loan - Summary of Total Lo
Term Loan - Summary of Total Long-term Loan and Unamortized Debt Discount (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Debt Disclosure [Abstract] | ||
Face value | $ 10,000 | |
Less: debt issuance costs | (99) | |
Total future principal payments due under the Loan Agreement | 9,901 | |
Less: current portion of long-term loan | 0 | |
Long-term loan, excluding current portion | $ 9,901 | $ 9,881 |
Term Loan - Schedule of Future
Term Loan - Schedule of Future Principal Payments Due (Details) $ in Thousands | Jun. 30, 2017USD ($) |
Long-term Debt, Fiscal Year Maturity [Abstract] | |
Total future principal payments due under the Loan Agreement | $ 9,901 |
2016 Loan Agreement | |
Long-term Debt, Fiscal Year Maturity [Abstract] | |
December 31, 2017 | 0 |
December 31, 2018 | 2,000 |
December 31, 2019 | 4,000 |
December 31, 2020 | 4,000 |
December 31, 2021 | 0 |
Total future principal payments due under the Loan Agreement | $ 10,000 |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Details) - USD ($) $ in Millions | Oct. 04, 2016 | Jun. 30, 2017 | Jun. 30, 2017 | Dec. 31, 2016 |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Common stock shares reserved for issuance | 4,718,401 | 4,718,401 | ||
Unrecognized compensation expense | $ 6 | $ 6 | ||
Weighted average compensation cost recognition period | 6 years 1 month 6 days | |||
Stock options early exercised (in shares) | 0 | 252,453 | ||
Stock options remaining, unvested (in shares) | 154,725 | 154,725 | ||
Other Current Liabilities | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Stock options early exercised liability | $ 0.2 | $ 0.2 | ||
2016 Equity Incentive Plan | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Common stock shares reserved for issuance | 1,617,085 | 1,617,085 | ||
2016 ESPP | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Common stock shares reserved for issuance | 180,000 | 347,025 | 347,025 | |
Increase in percentage of common stock outstanding and common stock equivalents | 1.00% | |||
Shares issued in period (in shares) | 23,206 | 23,206 | ||
Share-based compensation expense | $ 0.1 |
Stock-Based Compensation - Summ
Stock-Based Compensation - Summary of Fair Value of Stock Options for Employees was Estimated using Black-Scholes Option Pricing Model (Details) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Assumed risk-free interest rate (percent) | 1.49% | 1.49% | ||
Assumed volatility (percent) | 53.49% | 53.49% | ||
Expected option life | 6 years 1 month 6 days | 6 years 1 month 6 days | 6 years 1 month 6 days | 6 years 1 month 6 days |
Expected dividend yield (percent) | 0.00% | 0.00% | 0.00% | 0.00% |
Minimum | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Assumed risk-free interest rate (percent) | 1.83% | 1.83% | ||
Assumed volatility (percent) | 57.53% | 55.11% | ||
Maximum | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Assumed risk-free interest rate (percent) | 1.93% | 2.23% | ||
Assumed volatility (percent) | 58.83% | 58.83% |
Stock-Based Compensation - Su40
Stock-Based Compensation - Summary of Non-cash Compensation to Employees and Nonemployees in Condensed Consolidated Statements of Operations and Comprehensive Loss (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Stock-based compensation | $ 616 | $ 95 | $ 1,079 | $ 145 |
Cost of Revenue | ||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Stock-based compensation | 26 | 8 | 53 | 15 |
Research and Development | ||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Stock-based compensation | 98 | 13 | 197 | 25 |
Selling, General and Administrative | ||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Stock-based compensation | $ 492 | $ 74 | $ 829 | $ 105 |
Stock-Based Compensation - Su41
Stock-Based Compensation - Summary of Stock Option Transactions (Details) $ / shares in Units, $ in Thousands | 6 Months Ended |
Jun. 30, 2017USD ($)$ / sharesshares | |
Number of shares | |
Number of shares Outstanding, Beginning balance (in shares) | shares | 2,225,684 |
Number of shares, Options granted (in shares) | shares | 549,834 |
Number of shares, Options exercised (in shares) | shares | (26,005) |
Number of shares, Options canceled (in shares) | shares | (19,446) |
Number of shares Outstanding, Ending balance (in shares) | shares | 2,730,067 |
Weighted- average exercise price per share | |
Weighted average exercise price Outstanding, Beginning balance (in usd per share) | $ / shares | $ 5 |
Weighted average exercise price, Options granted (in usd per share) | $ / shares | 10.02 |
Weighted average exercise price, Options exercised (in usd per share) | $ / shares | 1.44 |
Weighted average exercise price, Options canceled (in usd per share) | $ / shares | 6.14 |
Weighted average exercise price Outstanding, Ending balance (in usd per share) | $ / shares | $ 6.04 |
Weighted- average remaining contractual life (in years) | |
Weighted average contractual life, Vested and expected to vest | 8 years 6 months 22 days |
Weighted average contractual life Outstanding, Ending balance | 8 years 5 months 23 days |
Weighted average contractual life, Vested and exercisable | 6 years 8 months 19 days |
Aggregate intrinsic value (in thousands) | |
Aggregate intrinsic Value Outstanding, Ending balance | $ | $ 10,744,161 |
Aggregate intrinsic value, Vested and expected to vest | $ | 9,984,446 |
Aggregate intrinsic value, Vested and exercisable | $ | $ 4,733,441 |
Number of shares, Vested and exercisable (in shares) | shares | 726,415 |
Number of shares, Vested and expected to vest (in shares) | shares | 2,455,271 |
Weighted average exercise price, Vested and expected to vest (in usd per share) | $ / shares | $ 5.90 |
Weighted average exercise price, Vested and exercisable (in usd per share) | $ / shares | $ 3.40 |
Stockholders' Equity - Schedule
Stockholders' Equity - Schedule of Outstanding Warrants (Details) | Jun. 30, 2017$ / sharesshares |
Class Of Warrant Or Right [Line Items] | |
Shares | shares | 24,224 |
Weighted-average exercise price (in usd per share) | $ / shares | $ 6.1918 |
Feb 24, 2012 Warrant Issuance | |
Class Of Warrant Or Right [Line Items] | |
Shares | shares | 24,224 |
Weighted-average exercise price (in usd per share) | $ / shares | $ 6.1918 |
Stockholders' Equity - Schedu43
Stockholders' Equity - Schedule of Common Stock Reserved for Future Issuance (Details) - shares | Jun. 30, 2017 | Oct. 04, 2016 |
Class of Stock [Line Items] | ||
Total common stock | 4,718,401 | |
Warrant | ||
Class of Stock [Line Items] | ||
Total common stock | 24,224 | |
2016 Equity Incentive Plan | ||
Class of Stock [Line Items] | ||
Total common stock | 1,617,085 | |
2016 ESPP | ||
Class of Stock [Line Items] | ||
Total common stock | 347,025 | 180,000 |
Stock Options to Purchase Common Stock | ||
Class of Stock [Line Items] | ||
Total common stock | 2,730,067 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | ||||
Operating lease rent expense | $ 0.1 | $ 0.1 | $ 0.2 | $ 0.1 |
Commitments and Contingencies45
Commitments and Contingencies - Schedule of Future Noncancelable Minimum Payment Obligations Under Operating Lease (Details) $ in Thousands | Jun. 30, 2017USD ($) |
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | |
December 31, 2017 | $ 162 |
December 31, 2018 | 397 |
December 31, 2019 | 100 |
Total future payments due under building lease | $ 659 |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Details) - Bader - Series D Convertible Preferred Stock - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended |
Jun. 30, 2016 | Jun. 30, 2016 | |
Related Party Transaction [Line Items] | ||
Proceeds from issuance of convertible preferred stock | $ 0.8 | $ 1.8 |
Revenue from related parties as percentage of total revenue | 100.00% | 100.00% |
Subsequent Events (Details)
Subsequent Events (Details) - shares | 1 Months Ended | 6 Months Ended |
Aug. 02, 2017 | Jun. 30, 2017 | |
Subsequent Event [Line Items] | ||
Number of shares granted (in shares) | 549,834 | |
Subsequent Event | Stock Options to Purchase Common Stock | ||
Subsequent Event [Line Items] | ||
Number of shares granted (in shares) | 100,000 |