Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2018 | Oct. 26, 2018 | |
Document And Entity Information [Abstract] | ||
Current Fiscal Year End Date | --12-31 | |
Document Type | 10-Q | |
Entity Central Index Key | 1,427,570 | |
Document Period End Date | Sep. 30, 2018 | |
Document Fiscal Period Focus | Q3 | |
Entity Registrant Name | OBALON THERAPEUTICS INC | |
Trading Symbol | OBLN | |
Document Fiscal Year Focus | 2,018 | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | true | |
Entity Ex Transition Period | true | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 23,280,439 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Current assets: | ||
Cash and cash equivalents | $ 21,552 | $ 21,108 |
Short-term investments | 8,116 | 23,292 |
Accounts receivable, net of allowance of $538 and $239, respectively | 2,775 | 4,223 |
Inventory | 1,955 | 1,418 |
Other current assets | 909 | 1,714 |
Total current assets | 35,307 | 51,755 |
Property and equipment, net | 1,572 | 1,346 |
Total assets | 36,879 | 53,101 |
Current liabilities: | ||
Accounts payable | 1,458 | 1,276 |
Accrued compensation | 2,671 | 4,494 |
Deferred revenue | 301 | 510 |
Other current liabilities | 2,328 | 1,773 |
Current portion of long-term loan | 523 | 1,958 |
Total current liabilities | 7,281 | 10,011 |
Deferred rent | 46 | 13 |
Long-term loan, excluding current portion | 9,399 | 7,964 |
Total long-term liabilities | 9,445 | 7,977 |
Total liabilities | 16,726 | 17,988 |
Commitments and contingencies (See Note 10) | ||
Stockholders’ equity: | ||
Common stock, $0.001 par value; 100,000,000 and 300,000,000 shares authorized as of September 30, 2018 and December 31, 2017, respectively; 23,280,310 and 17,500,604 shares issued and outstanding as of September 30, 2018 and December 31, 2017, respectively | 23 | 18 |
Additional paid-in capital | 160,130 | 146,474 |
Accumulated other comprehensive loss | (2) | (5) |
Accumulated deficit | (139,998) | (111,374) |
Total stockholders’ equity | 20,153 | 35,113 |
Total liabilities and stockholders’ equity | $ 36,879 | $ 53,101 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Statement of Financial Position [Abstract] | ||
Allowances | $ 538 | $ 239 |
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized (in shares) | 100,000,000 | 300,000,000 |
Common stock, shares issued (in shares) | 23,280,310 | 17,500,604 |
Common stock, shares outstanding (in shares) | 23,280,310 | 17,500,604 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Statement of Comprehensive Income [Abstract] | ||||
Revenue | $ 2,987 | $ 2,787 | $ 7,065 | $ 6,222 |
Cost of revenue | 1,418 | 1,314 | 3,919 | 3,127 |
Gross profit | 1,569 | 1,473 | 3,146 | 3,095 |
Operating expenses: | ||||
Research and development | 2,368 | 2,798 | 8,359 | 7,958 |
Selling, general and administrative | 5,836 | 7,813 | 23,092 | 19,606 |
Total operating expenses | 8,204 | 10,611 | 31,451 | 27,564 |
Loss from operations | (6,635) | (9,138) | (28,305) | (24,469) |
Interest expense, net | (70) | (21) | (164) | (110) |
Other expense | (40) | (11) | (155) | (66) |
Net loss | (6,745) | (9,170) | (28,624) | (24,645) |
Other comprehensive (loss) income | (3) | 15 | 3 | (3) |
Total comprehensive loss | $ (6,748) | $ (9,155) | $ (28,621) | $ (24,648) |
Net loss per share, basic and diluted (in dollars per share) | $ (0.35) | $ (0.55) | $ (1.60) | $ (1.48) |
Weighted-average common shares outstanding, basic and diluted (in shares) | 19,457,971 | 16,747,791 | 17,837,297 | 16,649,447 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Operating activities: | ||
Net loss | $ (28,624) | $ (24,645) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation | 428 | 221 |
Stock-based compensation | 3,610 | 2,102 |
Fair value of stock issued for legal settlement | 0 | 1,398 |
Loss on disposal of fixed assets | 107 | 0 |
(Accretion) amortization of investment (discount) premium, net | (20) | 24 |
Amortization of debt discount | 29 | 31 |
Change in operating assets and liabilities: | ||
Accounts receivable, net | 1,448 | (2,515) |
Accounts receivable from related party | 0 | 515 |
Inventory | (537) | (84) |
Other current assets | 805 | 240 |
Accounts payable | 135 | 534 |
Accrued compensation | (1,823) | 174 |
Deferred revenue | (209) | 72 |
Other current and long term liabilities | 634 | 506 |
Net cash used in operating activities | (24,017) | (21,427) |
Investing activities: | ||
Purchases of short-term investments | (9,103) | (80,317) |
Maturities of short-term investments | 24,302 | 41,500 |
Purchase of property and equipment | (867) | (904) |
Net cash provided by (used in) investing activities | 14,332 | (39,721) |
Financing activities: | ||
Fees paid in connection with loan amendment | (30) | 0 |
Proceeds from issuance of common stock, net of issuance costs | 9,973 | 0 |
Proceeds from stock issued under employee stock purchase plan | 148 | 210 |
Proceeds from sale of common stock upon exercise of stock options | 38 | 46 |
Net cash provided by financing activities | 10,129 | 256 |
Net increase (decrease) in cash and cash equivalents | 444 | (60,892) |
Cash and cash equivalents at beginning of period | 21,108 | 72,975 |
Cash and cash equivalents at end of period | 21,552 | 12,083 |
Supplemental cash flow information: | ||
Interest paid | 473 | 416 |
Unpaid issuance costs | 160 | 0 |
Property and equipment in accounts payable | $ 106 | $ 126 |
Organization and Basis of Prese
Organization and Basis of Presentation | 9 Months Ended |
Sep. 30, 2018 | |
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 subsidiary, Obalon Therapeutics, LLC, which was dissolved in 2017 and had no activity in 2017. 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. In August 2018, the Company sold 5,494,506 shares of its common stock pursuant to a securities purchase agreement (the "Purchase Agreement") for aggregate gross proceeds of $10.0 million in connection with a private placement financing transaction (the "Private Placement"). As of September 30, 2018 , 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 $3.0 million and $2.8 million for the three months ended September 30, 2018 and 2017 , respectively, and $7.1 million and $6.2 million for the nine months ended September 30, 2018 and 2017 , 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. 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 September 30, 2018 , its accumulated deficit was $140.0 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 a subsequent private placement, 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 believes that its existing cash and cash equivalents, short-term investments, additional debt capacity (Note 6) and expected revenues will be sufficient to meet its capital requirements and fund its operations through for at least twelve months from the filing date of this Form 10-Q. The Company plans to seek additional debt or equity financing in order to maintain its current operating plan. Adequate funding may not be available on acceptable terms, or at all. The failure to obtain sufficient funds on acceptable terms and in a timely manner could require the Company to make significant spending reductions in its operating plan, which could delay or stop commercialization and development efforts and would have a material adverse effect on its business, results of operations and financial condition. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2018 | |
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 nine months ended September 30, 2018 , 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, 2017, filed on March 5, 2018. Revenue Recognition The Company recognizes revenue, in accordance with ASC 606, when control of its products is transferred to its customers in an amount that reflects the consideration it expects to receive in exchange for those products. The Company's revenue recognition process involves identifying the contract with a customer, determining the performance obligations in the contract, determining the contract price, allocating the contract price to the distinct performance obligations in the contract, and recognizing revenue as performance obligations are satisfied. A performance obligation is considered distinct from other obligations in a contract when it provides a benefit to the customer either on its own or together with other resources that are readily available to the customer and is separately identified in the contract. The Company considers a performance obligation satisfied once it has transferred control of a good or service to the customer, meaning the customer has the ability to use and obtain the benefit of the good or service. The Company recognizes revenue for satisfied performance obligations only when it determines there are no uncertainties regarding payment terms or transfer of control. Revenue is generated from sales of the Obalon balloon system to physicians and institutions in the United States and to a distributor in the Middle East. The Company recognizes revenue upon shipment of its product as the Company's standard contract terms dictate that control transfers to the customer upon shipment of its product. Invoicing typically occurs upon shipment and the time period between invoicing and when payment is due is not significant. Sales taxes collected are excluded from revenues. Shipping charges billed to customers are included in revenue and related shipping cost is included in cost of revenue. The Company's revenue contracts do not provide for maintenance. Commissions are considered incremental costs to obtain a contract with a customer and paid to salespeople when contracts are executed. Commissions are recognized as a selling expense when incurred as the amortization period is one year or less. The components of the Obalon balloon system are typically packaged in a kit and shipped to the customer at the same time, satisfying the majority of performance obligations in the contact. The Company recognizes revenue for any unsatisfied, distinct performance obligations, such as undelivered components, as they are satisfied based on the standalone selling price of each performance obligation. The Company estimates the standalone selling price of each performance obligation by estimating the expected cost of satisfying that performance obligation plus an appropriate margin. When the Company enters into contracts with multiple performance obligations, such obligations are generally satisfied within a short time frame of approximately three to six months after the contract execution date. The Company does not disclose the value of the unsatisfied performance obligations within its contracts. The Company offers a swallow guarantee program in the United States where it may provide replacement balloons to customers when their patients are unsuccessful in swallowing an Obalon balloon, subject to certain requirements and restrictions. The Company considers the replacement balloons provided under this program as an additional performance obligation in the contract and defers revenue relating to the replacement balloons based on an expected swallow failure rate and then recognizes the revenue when replacement balloons are provided. The Company recognizes revenue at the net sales price, which reflects the consideration the Company believes it is most likely to receive. The net sales price includes estimates of variable consideration for customer incentives and returns. The Company reserves for product returns as a reduction to revenue in the period when the related revenue is recognized. The Company estimates its product returns based on historical return rates and specifically known events. 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. Customer incentives that provide discounts to the customer on purchases of current or future product are recorded as a reduction of revenue in the period the related product revenue is recognized. Any consideration payable to a customer is presumed as a reduction to revenue unless the Company can demonstrate that the consideration provided to the customer is in exchange for a distinct good or service. Actual amounts of consideration ultimately received may differ from the Company’s estimates. If actual results vary from the Company’s estimates, the Company would adjust these estimates, which would impact net product revenue and results of operations in the period such variances become known. 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 September 30, 2018 and for the three and nine months ended September 30, 2018 and 2017 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 September 30, 2018 and its condensed consolidated results of operations for the three and nine months ended September 30, 2018 and 2017, and cash flows for the nine months ended September 30, 2018 and 2017 . The results of operations for the three and nine months ended September 30, 2018 are not necessarily indicative of the results to be expected for the year ending December 31, 2018 or for any other future annual or interim period. The balance sheet as of December 31, 2017 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, 2017, filed on March 5, 2018. Fair Value Measurements The carrying values of the Company’s financial instruments, including cash and cash equivalents, short-term investments, accounts receivable, 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. Concentrations of Credit Risk Financial instruments that potentially subject the Company to significant concentrations of credit risk consist primarily of cash equivalents and trade accounts receivable, which are generally not collateralized. The Company limits its exposure to credit loss by placing its cash equivalents with high credit quality financial institutions and investing in high quality short-term debt instruments. The Company’s customers consist of physicians and institutions in the United States and one international distributor. The Company establishes customer credit policies related to its accounts receivable based on historical collection experiences within the various markets in which the Company operates, historical past-due amounts, and any specific information that the Company becomes aware of such as bankruptcy or liquidity issues of customers. The following table summarizes certain financial data for the customers who accounted for 10.0% or more of sales and accounts receivable. Three Months Ended Nine Months Ended 2018 2017 2018 2017 Single largest customer:* Revenue 39.4 % 28.3 % 45.4 % 13.3 % Second largest customer: Revenue 27.4 % 5.0 % 18.2 % 2.2 % September 30, 2018 December 31, 2017 Single largest customer:* Accounts receivable 34.0 % 17.4 % Second largest customer: Accounts receivable 24.8 % — % *The Company's largest customer for the three and nine months ended September 30, 2018 was its Middle East distributor. The Company recorded $0.8 million of sales with this distributor for the three and nine months ended September 30, 2017 . There were no other international sales aside from sales to this distributor for the three and nine months ended September 30, 2018 and 2017 . 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. Potentially dilutive common stock equivalents are comprised of warrants, if material, unvested restricted stock awards (RSAs), and unexercised stock options outstanding under the Company’s equity plan. Recently Issued and Adopted Accounting Pronouncements Recently Adopted Accounting Pronouncements In August 2015, the FASB issued Accounting Standards Update, or ASU, 2015-14, Revenue from Contracts with Customers (ASC 606) , which defers the effective date of ASU 2014-09 by one year. 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. ASC 606 is based on the principle that revenue should be recognized in an amount that reflects the consideration to which a company expects to be entitled in exchange for the transfer of promised goods or services. The Company adopted ASC 606 on January 1, 2018 using the modified retrospective implementation method. The Company noted the following in its assessment of the impact of ASC 606 on its financial statements issued prior to fiscal year 2018: • The majority of the Company's sales contracts fall under its standard sales agreement whereby control transfers to the customer upon delivery of the product to the named common carrier at the Company's location, satisfying the performance obligations of the contract. As such, revenue is recognized upon shipment under ASC 606 in the same way that it was recognized under the previous revenue guidance. The Company's contracts did not meet the criteria under ASC 606 for revenue recognition over time. • Customer incentives existing prior to December 31, 2017 related to discounts that were recognized as a reduction to revenue in the same period when the related revenue was recognized or situations where the Company deferred revenue related to undelivered elements of the contract and then recognized the revenue as the undelivered elements were delivered. The Company concluded that the revenue recognition for these customer incentives under ASC 606 was the same as under the previous revenue guidance. • Prior to December 31, 2017, the Company presented the reserve for expected sales returns as a decrease to its accounts receivable balance. Under ASC 606, the Company accounts for expected sales returns as a refund liability and presents the reserve for sales returns as a current liability in its consolidated financial statements with a corresponding asset if the returned item is expected to be re-sold. The adoption of ASC 606 resulted in an immaterial transition adjustment related to this reserve. This reclassification did not have an impact on the results of operations. The reserve for sales returns was $0.2 million at September 30, 2018. Overall, the cumulative effect of applying the new revenue standard to all incomplete contracts as of January 1, 2018 was not material and, therefore, did not result in an adjustment to retained earnings. There was no material difference to the consolidated financial statements for the three or nine months ended September 30, 2018 due to the adoption of ASC 606. In May 2017, the FASB issued ASU 2017-09, Compensation-Stock Compensation, 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 provided 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 were effective for fiscal and interim reporting periods in fiscal years beginning after December 15, 2017. The amendments in ASU 2017-09 should be applied prospectively to an award modified on or after the adoption date. The Company adopted ASU 2017-09 on January 1, 2018 and the adoption did not have a material impact on the Company's consolidated financial statements or related financial statement disclosure. In June 2018, the FASB issued ASU 2018-07, Compensation - Stock Compensation (Topic 718), Improvements to Nonemployee Share-Based Payment Accounting. This ASU expands the scope of Topic 718 to include share based payment transactions for acquiring goods and services from nonemployees. An entity should apply the requirements of Topic 718 to nonemployee awards except for specific guidance on inputs to an option pricing model and the attribution of cost. This ASU is effective for the Company on January 1, 2019 with early adoption permitted, although no earlier than the adoption date of Topic 606. The Company elected to early adopt this ASU in the quarter ended June 30, 2018, which did not have a material impact on its financial statements. Recently Issued Accounting Pronouncements not yet adopted 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. In July 2018, the FASB issued ASU 2018-10, Codification Improvements to Topic 842 (Leases) , which provides narrow amendments to clarify how to apply certain aspects of the new lease standard. The new standard is effective for annual reporting periods, and interim periods within those periods, beginning after December 15, 2018, with early adoption permitted. In July 2018, the FASB issued ASU No. 2018-11, Leases Topic (842): Targeted Improvements. This ASU provides companies an option to apply the transition provisions of the new lease standard at its adoption date instead of at the earliest comparative period presented in its financial statements. The Company is currently evaluating the potential impact of adoption of the new lease standard and the additional transition method under ASU 2018-11 on its consolidated financial statements. The Company currently believes the most significant change will be related to the recognition of a new right-of-use asset and lease liability on the Company's consolidated balance sheet for its real estate operating lease. In July 2017, the FASB issued ASU 2017-11, Earnings Per Share (Topic 260); Distinguishing Liabilities from Equity (Topic 480); Derivatives and Hedging (Topic 815): (Part I) Accounting for Certain Financial Instruments with Down Round Features, (Part II) Replacement of the Indefinite Deferral for Mandatorily Redeemable Financial Instruments of Certain Nonpublic Entities and Certain Mandatorily Redeemable Non-controlling Interests with a Scope Exception. The ASU allows companies to exclude a down round feature when determining whether a financial instrument (or embedded conversion feature) is considered indexed to the entity’s own stock. As a result, financial instruments (or embedded conversion features) with down round features may no longer be required to be classified as liabilities. A company will recognize the value of a down round feature only when it is triggered and the strike price has been adjusted downward. For equity-classified freestanding financial instruments, such as warrants, an entity will treat the value of the effect of the down round, when triggered, as a dividend and a reduction of income available to common shareholders in computing basic earnings per share. For convertible instruments with embedded conversion features containing down round provisions, entities will recognize the value of the down round as a beneficial conversion discount to be amortized to earnings. The guidance in ASU 2017-11 is effective for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. Early adoption is permitted, and the guidance is to be applied using a full or modified retrospective approach. The Company does not anticipate that the adoption of ASU 2017-11 will have a material impact on its consolidated financial statements unless a transaction occurs that would need to be evaluated under this guidance at which time the Company will assess the impact of this standard. |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2018 | |
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 September 30, 2018 and December 31, 2017 are as follows (in thousands): Fair value measurements at reporting date using Balance as of September 30, 2018 Quoted prices in active markets for identical assets (Level 1) Significant other observable inputs (Level 2) Significant unobservable inputs (Level 3) Assets: Cash equivalents: Money market funds $ 21,552 $ 21,552 $ — $ — Short-term investments: U.S. Treasury bonds 8,116 8,116 — — Total assets $ 29,668 $ 29,668 $ — $ — Fair value measurements at reporting date using Balance as of December 31, 2017 Quoted prices in active markets for identical assets (Level 1) Significant other observable inputs (Level 2) Significant unobservable inputs (Level 3) Assets: Cash equivalents: Money market funds $ 12,115 $ 12,115 U.S. Treasury bonds 8,993 8,993 Short-term investments: U.S. Treasury bonds 23,292 23,292 — — Total assets $ 44,400 $ 44,400 — — The Company’s investments in Level 1 assets are valued based on publicly available quoted market prices for identical securities as of September 30, 2018 and December 31, 2017 . Instruments Not Recorded at Fair Value on a Recurring Basis The estimated fair value of the Company's 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 the Company's 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 | 9 Months Ended |
Sep. 30, 2018 | |
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 September 30, Nine Months Ended 2018 2017 2018 2017 Net loss $ (6,745 ) (9,170 ) (28,624 ) (24,645 ) Weighted-average common shares outstanding, basic and diluted 19,457,971 16,747,791 17,837,297 16,649,447 Net loss per share, basic and diluted $ (0.35 ) $ (0.55 ) $ (1.60 ) $ (1.48 ) The following table sets forth the outstanding potentially dilutive securities determined using the treasury stock method 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 September 30, Nine Months Ended September 30, 2018 2017 2018 2017 Stock options to purchase common stock 259,683 873,282 424,725 904,755 Total 259,683 873,282 424,725 904,755 |
Balance Sheet Details
Balance Sheet Details | 9 Months Ended |
Sep. 30, 2018 | |
Balance Sheet Related Disclosures [Abstract] | |
Balance Sheet Details | Balance Sheet Details Short term investments consist of the following as of September 30, 2018 and December 31, 2017: Maturity Amortized Gross Gross Estimated At September 30, 2018: U.S. Treasury bonds 1 year or less $ 8,118 $ — $ (2 ) $ 8,116 Maturity Amortized Gross Gross Estimated At December 31, 2017: U.S. Treasury bonds 1 year or less $ 23,295 $ — $ (3 ) $ 23,292 Inventory consist of the following (in thousands): September 30, 2018 December 31, 2017 Raw materials $ 1,269 $ 1,046 Work in process 190 127 Finished goods 496 245 Total $ 1,955 $ 1,418 Other current assets consist of the following (in thousands): September 30, 2018 December 31, 2017 Prepaid expenses 783 1,514 Interest receivable 5 85 Other assets 121 115 Total $ 909 $ 1,714 Property and equipment, net consist of the following (in thousands): September 30, 2018 December 31, 2017 Computer hardware $ 405 $ 397 Computer software 274 392 Leasehold improvements 405 238 Furniture and fixtures 171 160 Scientific equipment 1,792 1,354 Construction in progress, or CIP 351 220 3,398 2,761 Less: accumulated depreciation (1,826 ) (1,415 ) Total $ 1,572 $ 1,346 Depreciation expense was $0.1 million for each of the three months ended September 30, 2018 and 2017 , and $0.4 million and $0.2 million for each of the nine months ended September 30, 2018 and 2017 , respectively. Other current liabilities consist of the following (in thousands): September 30, 2018 December 31, 2017 Accrued legal and professional fees $ 346 $ 289 Accrued customer incentives 903 558 Accrued clinical trial expenses 65 — Accrued sales and other taxes 133 167 Accrued marketing expenses 6 60 Other accrued expenses 875 699 Total $ 2,328 $ 1,773 |
Term Loan
Term Loan | 9 Months Ended |
Sep. 30, 2018 | |
Debt Disclosure [Abstract] | |
Term Loan | Term Loan In June 2013, the Company entered into a $3.0 million loan and security agreement (the "Loan Agreement") with Square 1 Bank (predecessor-in-interest to Pacific Western Bank), which it subsequently amended in October 2014, September 2016, December 2016, June 2017 and July 2018. In July 2018, the Company executed the Fifth Amendment to the Loan and Security Agreement (the "Loan Amendment") with Pacific Western Bank, which increased the loan capacity to $20 million from $10 million . The loan capacity of $20 million consists of two tranches as follows: a first tranche consisting of $10.0 million funded on July 10, 2018, 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 $10.0 million which may be drawn at any time prior to July 9, 2019. As of September 30, 2018, the Company had $10.0 million in outstanding borrowings under the Loan Agreement. The outstanding debt has a variable annual interest rate equal to the greater of the prime rate plus 1.5% per annum, or 5% , and matures in July 2022. As the prime rate was 5.25% as of September 30, 2018, the interest rate on the debt was 6.75% as of September 30, 2018. The Loan Amendment provides for an interest-only period through July 9, 2019 followed by 36 equal monthly installments of principal and interest with the first principal payment due on August 9, 2019. The Loan Agreement 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. In addition, the Company is required to deposit into such accounts a portion or all of the net proceeds from its next equity offering, which the Company satisfied in connection with the completion of the private placement in August 2018. Even if the cash in the Company's accounts maintained with the bank falls below the total amount of outstanding debt under the Loan Agreement, the Company is not restricted from using the funds in the ordinary course of business. Total long-term loan and unamortized debt discount balances are as follows (in thousands): September 30, 2018 Face value $ 10,000 Less: unamortized debt issuance costs (78 ) Total term loan $ 9,922 Less: current portion of long-term loan (523 ) Total long-term loan, excluding current portion $ 9,399 As of September 30, 2018 , future principal payments due under the Loan Agreement are as follows (in thousands): Year ended: December 31, 2018 $ — December 31, 2019 1,389 December 31, 2020 3,333 December 31, 2021 3,333 December 31, 2022 1,945 Total future principal payments due under the Loan Agreement $ 10,000 |
Stock-Based Compensation
Stock-Based Compensation | 9 Months Ended |
Sep. 30, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation Equity Incentive Plan As of September 30, 2018 , 892,827 stock options and awards remained available for future grant under the 2016 Equity Incentive Plan. No other plans had options or awards available for grant. The Company recorded stock-based compensation in the condensed consolidated statements of operations and comprehensive loss as follows (in thousands): Three Months Ended September 30, Nine Months Ended 2018 2017 2018 2017 Cost of revenue $ 28 $ 30 68 83 Research and development 307 118 859 315 Selling, general and administrative 672 875 2,683 1,704 Total $ 1,007 $ 1,023 $ 3,610 $ 2,102 Unrecognized compensation expense at September 30, 2018 was approximately $6.6 million , which is expected to be recognized over a weighted-average term of 2.0 years . Incentive Stock Options The following table summarizes stock option transactions for the 2016 Equity Incentive Plan for the nine months ended September 30, 2018 (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, 2017 2,979,285 $ 6.49 Options granted 1,565,864 4.92 Options exercised (26,003 ) 1.46 Options canceled (957,238 ) 6.32 Outstanding at September 30, 2018 3,561,908 $ 5.88 7.8 $ 1,194 Vested and expected to vest at September 30, 2018 3,327,958 $ 5.85 7.8 $ 1,168 Vested and exercisable at September 30, 2018 1,662,409 $ 5.93 6.6 $ 845 Restricted Stock Awards The following table summarizes restricted stock award transactions for the 2016 Equity Incentive Plan for the nine months ended September 30, 2018 : Number of awards Weighted- average grant date fair value Outstanding at December 31, 2017 413,000 $ 9.98 Awards granted 425,942 4.10 Awards vested — — Awards canceled (212,000 ) 10.00 Outstanding at September 30, 2018 626,942 $ 5.99 |
Stockholder's Equity
Stockholder's Equity | 9 Months Ended |
Sep. 30, 2018 | |
Equity [Abstract] | |
Stockholder's Equity | Stockholder's Equity In August 2018, the Company sold 5,494,506 shares of its common stock pursuant to the Purchase Agreement for aggregate gross proceeds of $10.0 million in connection with the private placement. Investors in the private placement included certain unaffiliated investors, members of the Company's management team and the board of directors and certain of their affiliated funds, including Domain Associates and InterWest Partners. The Company incurred $0.2 million , including an immaterial amount paid as of September 30, 2018, of legal, accounting, registration and other professional fees related to the private placement. These amounts were charged against additional paid-in capital upon completion of the private placement. In June 2018, the Company amended its certificate of incorporation to reduce the authorized number of shares of common stock from 300,000,000 to 100,000,000 . Outstanding Warrants The following equity classified warrants were outstanding as of September 30, 2018 : 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 September 30, 2018 : Stock options issued and outstanding 3,561,908 Authorized for future option and ongoing vesting of award grants 892,827 Authorized for future issuance under ESPP 476,259 Warrants outstanding 24,224 Total 4,955,218 |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes For the three and nine months ended September 30, 2018 and 2017 , 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 | 9 Months Ended |
Sep. 30, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Leases On June 1, 2018, the Company amended its office lease agreement for the purpose of extending the term of the current lease on its corporate headquarters and leasing an additional 2,700 square feet of space in an adjacent building. The Company leases facilities under a noncancelable operating lease that expires on March 31, 2022 . 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 September 30, 2018 (in thousands): Year ended: December 31, 2018 $ 117 December 31, 2019 474 December 31, 2020 487 December 31, 2021 501 December 31, 2022 126 Total future payments due under building lease $ 1,705 Termination of Stock Offering On January 23, 2018, the Company issued a press release announcing the termination of its previously announced offering of common stock due to a purported whistleblower compliant, which was later found to be without merit. As of September 30, 2018, the Company did not record any liability associated with termination of the offering, and management believed that the likelihood is remote that the Company will incur material fees in the future. Shareholder Lawsuit On February 14 and 22, 2018, plaintiff stockholders filed class action lawsuits against the Company and certain of its executive officers in the United States District Court for the Southern District of California (Hustig v. Obalon Therapeutics, Inc., et al., Case No. 3:18-cv-00352-AJB-WVG, and Cook v. Obalon Therapeutics, Inc. et al., Case No. 3:18-cv-00407-CAB-RBB). On July 24, 2018, the court appointed Inter-Local Pension Fund GCC/IBT as lead plaintiff. On October 5, 2018, plaintiffs filed an amended complaint. The amended complaint alleges that the Company and certain of its executive officers made false and misleading statements and failed to disclose material adverse facts about its business, operations, and prospects in violation of Sections 10(b) (and Rule 10b-5 promulgated thereunder) and 20(a) of the Exchange Act. The amended complaint also alleges violations of Section 11 of the Exchange Act arising out of the Company’s initial public offering. The plaintiffs seek damages, interest, costs, attorneys' fees, and other unspecified equitable relief. The case is at a preliminary stage and the Company intends to vigorously defend against it. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2018 | |
Accounting Policies [Abstract] | |
Revenue Recognition | Revenue Recognition The Company recognizes revenue, in accordance with ASC 606, when control of its products is transferred to its customers in an amount that reflects the consideration it expects to receive in exchange for those products. The Company's revenue recognition process involves identifying the contract with a customer, determining the performance obligations in the contract, determining the contract price, allocating the contract price to the distinct performance obligations in the contract, and recognizing revenue as performance obligations are satisfied. A performance obligation is considered distinct from other obligations in a contract when it provides a benefit to the customer either on its own or together with other resources that are readily available to the customer and is separately identified in the contract. The Company considers a performance obligation satisfied once it has transferred control of a good or service to the customer, meaning the customer has the ability to use and obtain the benefit of the good or service. The Company recognizes revenue for satisfied performance obligations only when it determines there are no uncertainties regarding payment terms or transfer of control. Revenue is generated from sales of the Obalon balloon system to physicians and institutions in the United States and to a distributor in the Middle East. The Company recognizes revenue upon shipment of its product as the Company's standard contract terms dictate that control transfers to the customer upon shipment of its product. Invoicing typically occurs upon shipment and the time period between invoicing and when payment is due is not significant. Sales taxes collected are excluded from revenues. Shipping charges billed to customers are included in revenue and related shipping cost is included in cost of revenue. The Company's revenue contracts do not provide for maintenance. Commissions are considered incremental costs to obtain a contract with a customer and paid to salespeople when contracts are executed. Commissions are recognized as a selling expense when incurred as the amortization period is one year or less. The components of the Obalon balloon system are typically packaged in a kit and shipped to the customer at the same time, satisfying the majority of performance obligations in the contact. The Company recognizes revenue for any unsatisfied, distinct performance obligations, such as undelivered components, as they are satisfied based on the standalone selling price of each performance obligation. The Company estimates the standalone selling price of each performance obligation by estimating the expected cost of satisfying that performance obligation plus an appropriate margin. When the Company enters into contracts with multiple performance obligations, such obligations are generally satisfied within a short time frame of approximately three to six months after the contract execution date. The Company does not disclose the value of the unsatisfied performance obligations within its contracts. The Company offers a swallow guarantee program in the United States where it may provide replacement balloons to customers when their patients are unsuccessful in swallowing an Obalon balloon, subject to certain requirements and restrictions. The Company considers the replacement balloons provided under this program as an additional performance obligation in the contract and defers revenue relating to the replacement balloons based on an expected swallow failure rate and then recognizes the revenue when replacement balloons are provided. The Company recognizes revenue at the net sales price, which reflects the consideration the Company believes it is most likely to receive. The net sales price includes estimates of variable consideration for customer incentives and returns. The Company reserves for product returns as a reduction to revenue in the period when the related revenue is recognized. The Company estimates its product returns based on historical return rates and specifically known events. 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. Customer incentives that provide discounts to the customer on purchases of current or future product are recorded as a reduction of revenue in the period the related product revenue is recognized. Any consideration payable to a customer is presumed as a reduction to revenue unless the Company can demonstrate that the consideration provided to the customer is in exchange for a distinct good or service. Actual amounts of consideration ultimately received may differ from the Company’s estimates. If actual results vary from the Company’s estimates, the Company would adjust these estimates, which would impact net product revenue and results of operations in the period such variances become known. |
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 September 30, 2018 and for the three and nine months ended September 30, 2018 and 2017 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 September 30, 2018 and its condensed consolidated results of operations for the three and nine months ended September 30, 2018 and 2017, and cash flows for the nine months ended September 30, 2018 and 2017 . The results of operations for the three and nine months ended September 30, 2018 are not necessarily indicative of the results to be expected for the year ending December 31, 2018 or for any other future annual or interim period. The balance sheet as of December 31, 2017 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, 2017, filed on March 5, 2018. |
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 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. |
Concentrations of Credit Risk | Concentrations of Credit Risk Financial instruments that potentially subject the Company to significant concentrations of credit risk consist primarily of cash equivalents and trade accounts receivable, which are generally not collateralized. The Company limits its exposure to credit loss by placing its cash equivalents with high credit quality financial institutions and investing in high quality short-term debt instruments. The Company’s customers consist of physicians and institutions in the United States and one international distributor. The Company establishes customer credit policies related to its accounts receivable based on historical collection experiences within the various markets in which the Company operates, historical past-due amounts, and any specific information that the Company becomes aware of such as bankruptcy or liquidity issues of customers. |
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. Potentially dilutive common stock equivalents are comprised of warrants, if material, unvested restricted stock awards (RSAs), and unexercised stock options outstanding under the Company’s equity plan. |
Recently Issued and Adopted Accounting Pronouncements | Recently Issued and Adopted Accounting Pronouncements Recently Adopted Accounting Pronouncements In August 2015, the FASB issued Accounting Standards Update, or ASU, 2015-14, Revenue from Contracts with Customers (ASC 606) , which defers the effective date of ASU 2014-09 by one year. 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. ASC 606 is based on the principle that revenue should be recognized in an amount that reflects the consideration to which a company expects to be entitled in exchange for the transfer of promised goods or services. The Company adopted ASC 606 on January 1, 2018 using the modified retrospective implementation method. The Company noted the following in its assessment of the impact of ASC 606 on its financial statements issued prior to fiscal year 2018: • The majority of the Company's sales contracts fall under its standard sales agreement whereby control transfers to the customer upon delivery of the product to the named common carrier at the Company's location, satisfying the performance obligations of the contract. As such, revenue is recognized upon shipment under ASC 606 in the same way that it was recognized under the previous revenue guidance. The Company's contracts did not meet the criteria under ASC 606 for revenue recognition over time. • Customer incentives existing prior to December 31, 2017 related to discounts that were recognized as a reduction to revenue in the same period when the related revenue was recognized or situations where the Company deferred revenue related to undelivered elements of the contract and then recognized the revenue as the undelivered elements were delivered. The Company concluded that the revenue recognition for these customer incentives under ASC 606 was the same as under the previous revenue guidance. • Prior to December 31, 2017, the Company presented the reserve for expected sales returns as a decrease to its accounts receivable balance. Under ASC 606, the Company accounts for expected sales returns as a refund liability and presents the reserve for sales returns as a current liability in its consolidated financial statements with a corresponding asset if the returned item is expected to be re-sold. The adoption of ASC 606 resulted in an immaterial transition adjustment related to this reserve. This reclassification did not have an impact on the results of operations. The reserve for sales returns was $0.2 million at September 30, 2018. Overall, the cumulative effect of applying the new revenue standard to all incomplete contracts as of January 1, 2018 was not material and, therefore, did not result in an adjustment to retained earnings. There was no material difference to the consolidated financial statements for the three or nine months ended September 30, 2018 due to the adoption of ASC 606. In May 2017, the FASB issued ASU 2017-09, Compensation-Stock Compensation, 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 provided 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 were effective for fiscal and interim reporting periods in fiscal years beginning after December 15, 2017. The amendments in ASU 2017-09 should be applied prospectively to an award modified on or after the adoption date. The Company adopted ASU 2017-09 on January 1, 2018 and the adoption did not have a material impact on the Company's consolidated financial statements or related financial statement disclosure. In June 2018, the FASB issued ASU 2018-07, Compensation - Stock Compensation (Topic 718), Improvements to Nonemployee Share-Based Payment Accounting. This ASU expands the scope of Topic 718 to include share based payment transactions for acquiring goods and services from nonemployees. An entity should apply the requirements of Topic 718 to nonemployee awards except for specific guidance on inputs to an option pricing model and the attribution of cost. This ASU is effective for the Company on January 1, 2019 with early adoption permitted, although no earlier than the adoption date of Topic 606. The Company elected to early adopt this ASU in the quarter ended June 30, 2018, which did not have a material impact on its financial statements. Recently Issued Accounting Pronouncements not yet adopted 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. In July 2018, the FASB issued ASU 2018-10, Codification Improvements to Topic 842 (Leases) , which provides narrow amendments to clarify how to apply certain aspects of the new lease standard. The new standard is effective for annual reporting periods, and interim periods within those periods, beginning after December 15, 2018, with early adoption permitted. In July 2018, the FASB issued ASU No. 2018-11, Leases Topic (842): Targeted Improvements. This ASU provides companies an option to apply the transition provisions of the new lease standard at its adoption date instead of at the earliest comparative period presented in its financial statements. The Company is currently evaluating the potential impact of adoption of the new lease standard and the additional transition method under ASU 2018-11 on its consolidated financial statements. The Company currently believes the most significant change will be related to the recognition of a new right-of-use asset and lease liability on the Company's consolidated balance sheet for its real estate operating lease. In July 2017, the FASB issued ASU 2017-11, Earnings Per Share (Topic 260); Distinguishing Liabilities from Equity (Topic 480); Derivatives and Hedging (Topic 815): (Part I) Accounting for Certain Financial Instruments with Down Round Features, (Part II) Replacement of the Indefinite Deferral for Mandatorily Redeemable Financial Instruments of Certain Nonpublic Entities and Certain Mandatorily Redeemable Non-controlling Interests with a Scope Exception. The ASU allows companies to exclude a down round feature when determining whether a financial instrument (or embedded conversion feature) is considered indexed to the entity’s own stock. As a result, financial instruments (or embedded conversion features) with down round features may no longer be required to be classified as liabilities. A company will recognize the value of a down round feature only when it is triggered and the strike price has been adjusted downward. For equity-classified freestanding financial instruments, such as warrants, an entity will treat the value of the effect of the down round, when triggered, as a dividend and a reduction of income available to common shareholders in computing basic earnings per share. For convertible instruments with embedded conversion features containing down round provisions, entities will recognize the value of the down round as a beneficial conversion discount to be amortized to earnings. The guidance in ASU 2017-11 is effective for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. Early adoption is permitted, and the guidance is to be applied using a full or modified retrospective approach. The Company does not anticipate that the adoption of ASU 2017-11 will have a material impact on its consolidated financial statements unless a transaction occurs that would need to be evaluated under this guidance at which time the Company will assess the impact of this standard. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Accounting Policies [Abstract] | |
Summary of Concentration Risk | The following table summarizes certain financial data for the customers who accounted for 10.0% or more of sales and accounts receivable. Three Months Ended Nine Months Ended 2018 2017 2018 2017 Single largest customer:* Revenue 39.4 % 28.3 % 45.4 % 13.3 % Second largest customer: Revenue 27.4 % 5.0 % 18.2 % 2.2 % September 30, 2018 December 31, 2017 Single largest customer:* Accounts receivable 34.0 % 17.4 % Second largest customer: Accounts receivable 24.8 % — % *The Company's largest customer for the three and nine months ended September 30, 2018 was its Middle East distributor. The Company recorded $0.8 million of sales with this distributor for the three and nine months ended September 30, 2017 . There were no other international sales aside from sales to this distributor for the three and nine months ended September 30, 2018 and 2017 . |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
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 September 30, 2018 and December 31, 2017 are as follows (in thousands): Fair value measurements at reporting date using Balance as of September 30, 2018 Quoted prices in active markets for identical assets (Level 1) Significant other observable inputs (Level 2) Significant unobservable inputs (Level 3) Assets: Cash equivalents: Money market funds $ 21,552 $ 21,552 $ — $ — Short-term investments: U.S. Treasury bonds 8,116 8,116 — — Total assets $ 29,668 $ 29,668 $ — $ — Fair value measurements at reporting date using Balance as of December 31, 2017 Quoted prices in active markets for identical assets (Level 1) Significant other observable inputs (Level 2) Significant unobservable inputs (Level 3) Assets: Cash equivalents: Money market funds $ 12,115 $ 12,115 U.S. Treasury bonds 8,993 8,993 Short-term investments: U.S. Treasury bonds 23,292 23,292 — — Total assets $ 44,400 $ 44,400 — — |
Net Loss per Share (Tables)
Net Loss per Share (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
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 September 30, Nine Months Ended 2018 2017 2018 2017 Net loss $ (6,745 ) (9,170 ) (28,624 ) (24,645 ) Weighted-average common shares outstanding, basic and diluted 19,457,971 16,747,791 17,837,297 16,649,447 Net loss per share, basic and diluted $ (0.35 ) $ (0.55 ) $ (1.60 ) $ (1.48 ) |
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 method 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 September 30, Nine Months Ended September 30, 2018 2017 2018 2017 Stock options to purchase common stock 259,683 873,282 424,725 904,755 Total 259,683 873,282 424,725 904,755 |
Balance Sheet Details (Tables)
Balance Sheet Details (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Balance Sheet Related Disclosures [Abstract] | |
Schedule of Investments | Short term investments consist of the following as of September 30, 2018 and December 31, 2017: Maturity Amortized Gross Gross Estimated At September 30, 2018: U.S. Treasury bonds 1 year or less $ 8,118 $ — $ (2 ) $ 8,116 Maturity Amortized Gross Gross Estimated At December 31, 2017: U.S. Treasury bonds 1 year or less $ 23,295 $ — $ (3 ) $ 23,292 |
Schedule of Inventory | Inventory consist of the following (in thousands): September 30, 2018 December 31, 2017 Raw materials $ 1,269 $ 1,046 Work in process 190 127 Finished goods 496 245 Total $ 1,955 $ 1,418 |
Schedule of Other Current Assets | Other current assets consist of the following (in thousands): September 30, 2018 December 31, 2017 Prepaid expenses 783 1,514 Interest receivable 5 85 Other assets 121 115 Total $ 909 $ 1,714 |
Schedule of Property and Equipment, Net | Property and equipment, net consist of the following (in thousands): September 30, 2018 December 31, 2017 Computer hardware $ 405 $ 397 Computer software 274 392 Leasehold improvements 405 238 Furniture and fixtures 171 160 Scientific equipment 1,792 1,354 Construction in progress, or CIP 351 220 3,398 2,761 Less: accumulated depreciation (1,826 ) (1,415 ) Total $ 1,572 $ 1,346 |
Schedule of Other Current Liabilities | Other current liabilities consist of the following (in thousands): September 30, 2018 December 31, 2017 Accrued legal and professional fees $ 346 $ 289 Accrued customer incentives 903 558 Accrued clinical trial expenses 65 — Accrued sales and other taxes 133 167 Accrued marketing expenses 6 60 Other accrued expenses 875 699 Total $ 2,328 $ 1,773 |
Term Loan (Tables)
Term Loan (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
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): September 30, 2018 Face value $ 10,000 Less: unamortized debt issuance costs (78 ) Total term loan $ 9,922 Less: current portion of long-term loan (523 ) Total long-term loan, excluding current portion $ 9,399 |
Schedule of Future Principal Payments Due | As of September 30, 2018 , future principal payments due under the Loan Agreement are as follows (in thousands): Year ended: December 31, 2018 $ — December 31, 2019 1,389 December 31, 2020 3,333 December 31, 2021 3,333 December 31, 2022 1,945 Total future principal payments due under the Loan Agreement $ 10,000 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Summary of Stock-Based Compensation | The Company recorded stock-based compensation in the condensed consolidated statements of operations and comprehensive loss as follows (in thousands): Three Months Ended September 30, Nine Months Ended 2018 2017 2018 2017 Cost of revenue $ 28 $ 30 68 83 Research and development 307 118 859 315 Selling, general and administrative 672 875 2,683 1,704 Total $ 1,007 $ 1,023 $ 3,610 $ 2,102 |
Summary of Stock Option Transactions | The following table summarizes stock option transactions for the 2016 Equity Incentive Plan for the nine months ended September 30, 2018 (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, 2017 2,979,285 $ 6.49 Options granted 1,565,864 4.92 Options exercised (26,003 ) 1.46 Options canceled (957,238 ) 6.32 Outstanding at September 30, 2018 3,561,908 $ 5.88 7.8 $ 1,194 Vested and expected to vest at September 30, 2018 3,327,958 $ 5.85 7.8 $ 1,168 Vested and exercisable at September 30, 2018 1,662,409 $ 5.93 6.6 $ 845 |
Summary of Restricted Stock Awards | The following table summarizes restricted stock award transactions for the 2016 Equity Incentive Plan for the nine months ended September 30, 2018 : Number of awards Weighted- average grant date fair value Outstanding at December 31, 2017 413,000 $ 9.98 Awards granted 425,942 4.10 Awards vested — — Awards canceled (212,000 ) 10.00 Outstanding at September 30, 2018 626,942 $ 5.99 |
Stockholder's Equity (Tables)
Stockholder's Equity (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Equity [Abstract] | |
Schedule of Outstanding Warrants | The following equity classified warrants were outstanding as of September 30, 2018 : 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 September 30, 2018 : Stock options issued and outstanding 3,561,908 Authorized for future option and ongoing vesting of award grants 892,827 Authorized for future issuance under ESPP 476,259 Warrants outstanding 24,224 Total 4,955,218 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
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 September 30, 2018 (in thousands): Year ended: December 31, 2018 $ 117 December 31, 2019 474 December 31, 2020 487 December 31, 2021 501 December 31, 2022 126 Total future payments due under building lease $ 1,705 |
Organization and Basis of Pre_2
Organization and Basis of Presentation - Additional Information (Detail) $ in Thousands | 1 Months Ended | 3 Months Ended | 9 Months Ended | |||
Aug. 31, 2018USD ($)shares | Sep. 30, 2018USD ($) | Sep. 30, 2017USD ($) | Sep. 30, 2018USD ($)segment | Sep. 30, 2017USD ($) | Dec. 31, 2017USD ($) | |
Accounting Policies [Abstract] | ||||||
Number of operating segments | segment | 1 | |||||
Subsidiary, Sale of Stock [Line Items] | ||||||
Revenue | $ 2,987 | $ 2,787 | $ 7,065 | $ 6,222 | ||
Accumulated deficit | $ 139,998 | $ 139,998 | $ 111,374 | |||
Private Placement | ||||||
Subsidiary, Sale of Stock [Line Items] | ||||||
Number of shares sold (in shares) | shares | 5,494,506 | |||||
Gross proceeds | $ 10,000 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Summary of Concentration Risk (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | |
Accounting Policies [Abstract] | |||||
Amortization period, less than | 1 year | 1 year | |||
Performance obligation, timing | three to six months | ||||
Concentration Risk [Line Items] | |||||
Revenue | $ 2,987 | $ 2,787 | $ 7,065 | $ 6,222 | |
Reserve for sales returns | $ 200 | $ 200 | |||
Single largest customer | |||||
Concentration Risk [Line Items] | |||||
Revenue | $ 800 | $ 800 | |||
Customer Concentration Risk | Single largest customer | Revenue | |||||
Concentration Risk [Line Items] | |||||
Concentration risk percentage | 39.40% | 28.30% | 45.40% | 13.30% | |
Customer Concentration Risk | Single largest customer | Accounts receivable | |||||
Concentration Risk [Line Items] | |||||
Concentration risk percentage | 34.00% | 17.40% | |||
Customer Concentration Risk | Second largest customer | Revenue | |||||
Concentration Risk [Line Items] | |||||
Concentration risk percentage | 27.40% | 5.00% | 18.20% | 2.20% | |
Customer Concentration Risk | Second largest customer | Accounts receivable | |||||
Concentration Risk [Line Items] | |||||
Concentration risk percentage | 24.80% | 0.00% |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule of Assets and Liabilities Measured at Fair Value on Recurring Basis (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
U.S. Treasury Bonds | Short-term investments | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Total assets measured at fair value | $ 8,116 | |
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 | 8,116 | |
Significant other observable inputs (Level 2) | U.S. Treasury Bonds | Short-term investments | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Total assets measured at fair value | 0 | |
Significant unobservable inputs (Level 3) | U.S. Treasury Bonds | Short-term investments | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Total assets measured at fair value | 0 | |
Recurring | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Total assets measured at fair value | 29,668 | $ 44,400 |
Recurring | Money Market Funds | Cash and cash equivalents | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Total assets measured at fair value | 21,552 | 12,115 |
Recurring | U.S. Treasury Bonds | Cash and cash equivalents | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Total assets measured at fair value | 8,993 | |
Recurring | U.S. Treasury Bonds | Short-term investments | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Total assets measured at fair value | 23,292 | |
Recurring | 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 | 29,668 | 44,400 |
Recurring | 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 | 21,552 | 12,115 |
Recurring | Quoted prices in active markets for identical assets (Level 1) | U.S. Treasury Bonds | Cash and cash equivalents | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Total assets measured at fair value | 8,993 | |
Recurring | 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 | 23,292 | |
Recurring | Significant other observable inputs (Level 2) | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Total assets measured at fair value | 0 | 0 |
Recurring | Significant other observable inputs (Level 2) | Money Market Funds | Cash and cash equivalents | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Total assets measured at fair value | 0 | |
Recurring | Significant other observable inputs (Level 2) | U.S. Treasury Bonds | Short-term investments | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Total assets measured at fair value | 0 | |
Recurring | Significant unobservable inputs (Level 3) | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Total assets measured at fair value | 0 | 0 |
Recurring | Significant unobservable inputs (Level 3) | Money Market Funds | Cash and cash equivalents | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Total assets measured at fair value | $ 0 | |
Recurring | Significant unobservable inputs (Level 3) | U.S. Treasury Bonds | Short-term investments | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Total assets measured at fair value | $ 0 |
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 | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Earnings Per Share [Abstract] | ||||
Net loss | $ (6,745) | $ (9,170) | $ (28,624) | $ (24,645) |
Weighted-average common shares outstanding, basic and diluted (in shares) | 19,457,971 | 16,747,791 | 17,837,297 | 16,649,447 |
Net loss per share, basic and diluted (in dollars per share) | $ (0.35) | $ (0.55) | $ (1.60) | $ (1.48) |
Net Loss per Share - Schedule_2
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 | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||||
Anti-dilutive securities excluded from computation of diluted net loss per share (in shares) | 259,683 | 873,282 | 424,725 | 904,755 |
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 (in shares) | 259,683 | 873,282 | 424,725 | 904,755 |
Balance Sheet Details - Schedul
Balance Sheet Details - Schedule of Investments (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Balance Sheet Related Disclosures [Abstract] | ||
Amortized cost | $ 8,118 | $ 23,295 |
Gross unrealized gains | 0 | 0 |
Gross unrealized losses | (2) | (3) |
Estimated fair value | $ 8,116 | $ 23,292 |
Balance Sheet Details - Sched_2
Balance Sheet Details - Schedule of Inventory (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Balance Sheet Related Disclosures [Abstract] | ||
Raw materials | $ 1,269 | $ 1,046 |
Work in process | 190 | 127 |
Finished goods | 496 | 245 |
Total | $ 1,955 | $ 1,418 |
Balance Sheet Details - Sched_3
Balance Sheet Details - Schedule of Other Current Assets (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Balance Sheet Related Disclosures [Abstract] | ||
Prepaid expenses | $ 783 | $ 1,514 |
Interest receivable | 5 | 85 |
Other assets | 121 | 115 |
Total | $ 909 | $ 1,714 |
Balance Sheet Details - Sched_4
Balance Sheet Details - Schedule of Property and Equipment, Net (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | |
Property Plant And Equipment [Line Items] | |||||
Property and equipment, gross | $ 3,398 | $ 3,398 | $ 2,761 | ||
Less: accumulated depreciation | (1,826) | (1,826) | (1,415) | ||
Total | 1,572 | 1,572 | 1,346 | ||
Depreciation expense | 100 | $ 100 | 428 | $ 221 | |
Computer hardware | |||||
Property Plant And Equipment [Line Items] | |||||
Property and equipment, gross | 405 | 405 | 397 | ||
Computer software | |||||
Property Plant And Equipment [Line Items] | |||||
Property and equipment, gross | 274 | 274 | 392 | ||
Leasehold improvements | |||||
Property Plant And Equipment [Line Items] | |||||
Property and equipment, gross | 405 | 405 | 238 | ||
Furniture and fixtures | |||||
Property Plant And Equipment [Line Items] | |||||
Property and equipment, gross | 171 | 171 | 160 | ||
Scientific equipment | |||||
Property Plant And Equipment [Line Items] | |||||
Property and equipment, gross | 1,792 | 1,792 | 1,354 | ||
Construction in progress, or CIP | |||||
Property Plant And Equipment [Line Items] | |||||
Property and equipment, gross | $ 351 | $ 351 | $ 220 |
Balance Sheet Details - Sched_5
Balance Sheet Details - Schedule of Other Current Liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Balance Sheet Related Disclosures [Abstract] | ||
Accrued legal and professional fees | $ 346 | $ 289 |
Accrued customer incentives | 903 | 558 |
Accrued clinical trial expenses | 65 | 0 |
Accrued sales and other taxes | 133 | 167 |
Accrued marketing expenses | 6 | 60 |
Other accrued expenses | 875 | 699 |
Total | $ 2,328 | $ 1,773 |
Term Loan - Additional Informat
Term Loan - Additional Information (Details) | 1 Months Ended | 9 Months Ended | ||
Jul. 31, 2018USD ($)tranche | Sep. 30, 2018USD ($)installment | Jun. 30, 2018USD ($) | Jun. 30, 2013USD ($) | |
Debt Instrument [Line Items] | ||||
Loan outstanding | $ 9,922,000 | |||
2013 Loan Agreement | ||||
Debt Instrument [Line Items] | ||||
Term loan, maximum borrowings | $ 3,000,000 | |||
December 2016 Loan Agreement | ||||
Debt Instrument [Line Items] | ||||
Loan outstanding | $ 10,000,000 | |||
Term loan, fixed interest rate | 6.75% | |||
Number of installment payments | installment | 36 | |||
December 2016 Loan Agreement | Prime Rate | ||||
Debt Instrument [Line Items] | ||||
Term loan, variable interest rate | 1.50% | |||
Term loan, fixed interest rate | 5.25% | |||
Minimum | December 2016 Loan Agreement | ||||
Debt Instrument [Line Items] | ||||
Term loan, fixed interest rate | 5.00% | |||
Line of Credit | 5th Amendment To The Loan And Security Agreement | ||||
Debt Instrument [Line Items] | ||||
Term loan, maximum borrowings | $ 20,000,000 | |||
Number of tranches | tranche | 2 | |||
Line of Credit | December 2016 Loan Agreement | ||||
Debt Instrument [Line Items] | ||||
Term loan, maximum borrowings | $ 10,000,000 | |||
Line of Credit | 5th Amendment To The Loan And Security Agreement Tranche 1 | ||||
Debt Instrument [Line Items] | ||||
Term loan, maximum borrowings | $ 10,000,000 | |||
Proceeds used for repayment of debt | 10,000,000 | |||
Line of Credit | 5th Amendment To The Loan And Security Agreement Tranche 2 | ||||
Debt Instrument [Line Items] | ||||
Term loan, maximum borrowings | $ 10,000,000 |
Term Loan - Summary of Total Lo
Term Loan - Summary of Total Long-term Loan and Unamortized Debt Discount (Details) - USD ($) | Sep. 30, 2018 | Dec. 31, 2017 |
Debt Disclosure [Abstract] | ||
Face value | $ 10,000,000 | |
Less: unamortized debt issuance costs | (78,000) | |
Total future principal payments due under the Loan Agreement | 9,922,000 | |
Less: current portion of long-term loan | (523,000) | $ (1,958,000) |
Long-term loan, excluding current portion | $ 9,399,000 | $ 7,964,000 |
Term Loan - Schedule of Future
Term Loan - Schedule of Future Principal Payments Due (Details) $ in Thousands | Sep. 30, 2018USD ($) |
Long-term Debt, Fiscal Year Maturity [Abstract] | |
Total future principal payments due under the Loan Agreement | $ 9,922 |
2016 Loan Agreement | |
Long-term Debt, Fiscal Year Maturity [Abstract] | |
December 31, 2018 | 0 |
December 31, 2019 | 1,389 |
December 31, 2020 | 3,333 |
December 31, 2021 | 3,333 |
December 31, 2022 | 1,945 |
Total future principal payments due under the Loan Agreement | $ 10,000 |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2018USD ($)shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Common stock shares reserved for issuance | 4,955,218 |
Unrecognized compensation expense | $ | $ 6.6 |
Weighted average compensation cost recognition period | 1 year 12 months 6 days |
2016 Equity Incentive Plan | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Common stock shares reserved for issuance | 892,827 |
Stock-Based Compensation - Summ
Stock-Based Compensation - Summary of Stock-Based Compensation (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Stock-based compensation | $ 1,007 | $ 1,023 | $ 3,610 | $ 2,102 |
Cost of revenue | ||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Stock-based compensation | 28 | 30 | 68 | 83 |
Research and development | ||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Stock-based compensation | 307 | 118 | 859 | 315 |
Selling, general and administrative | ||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Stock-based compensation | $ 672 | $ 875 | $ 2,683 | $ 1,704 |
Stock-Based Compensation - Su_2
Stock-Based Compensation - Summary of Stock Option Transactions (Details) $ / shares in Units, $ in Thousands | 9 Months Ended |
Sep. 30, 2018USD ($)$ / sharesshares | |
Number of shares | |
Number of shares outstanding, beginning balance (in shares) | shares | 2,979,285 |
Number of shares, options granted (in shares) | shares | 1,565,864 |
Number of shares, options exercised (in shares) | shares | (26,003) |
Number of shares, options canceled (in shares) | shares | (957,238) |
Number of shares outstanding, ending balance (in shares) | shares | 3,561,908 |
Number of shares, vested and expected to vest (in shares) | shares | 3,327,958 |
Number of shares, vested and exercisable (in shares) | shares | 1,662,409 |
Weighted- average exercise price per share | |
Weighted average exercise price outstanding, beginning balance (in dollars per share) | $ / shares | $ 6.49 |
Weighted average exercise price, options granted (in dollars per share) | $ / shares | 4.92 |
Weighted average exercise price, options exercised (in dollars per share) | $ / shares | 1.46 |
Weighted average exercise price, options canceled (in dollars per share) | $ / shares | 6.32 |
Weighted average exercise price outstanding, ending balance (in dollars per share) | $ / shares | 5.88 |
Weighted average exercise price, vested and expected to vest (in dollars per share) | $ / shares | 5.85 |
Weighted average exercise price, vested and exercisable (in dollars per share) | $ / shares | $ 5.93 |
Weighted- average remaining contractual life (in years) | |
Weighted average contractual life outstanding, ending balance | 7 years 10 months 6 days |
Weighted average contractual life, vested and expected to vest | 7 years 10 months 6 days |
Weighted average contractual life, vested and exercisable | 6 years 7 months 12 days |
Aggregate intrinsic value (in thousands) | |
Aggregate intrinsic value outstanding, ending balance | $ | $ 1,194 |
Aggregate intrinsic value, vested and expected to vest | $ | 1,168 |
Aggregate intrinsic value, vested and exercisable | $ | $ 845 |
Stock-Based Compensation - Su_3
Stock-Based Compensation - Summary of Restricted Stock Awards (Details) | 9 Months Ended |
Sep. 30, 2018$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |
Outstanding, beginning balance (in shares) | shares | 413,000 |
Awards granted (in shares) | shares | 425,942 |
Awards vested (in shares) | shares | 0 |
Awards canceled (in shares) | shares | (212,000) |
Outstanding, ending balance (in shares) | shares | 626,942 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |
Outstanding balance (in dollars per share) | $ / shares | $ 9.98 |
Awards granted (in dollars per share) | $ / shares | 4.10 |
Awards vested (in dollars per share) | $ / shares | 0 |
Awards canceled (in dollars per share) | $ / shares | 10 |
Outstanding balance (in dollars per share) | $ / shares | $ 5.99 |
Stockholder's Equity - Addition
Stockholder's Equity - Additional Information (Details) - USD ($) $ in Millions | 1 Months Ended | ||||
Aug. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | May 31, 2018 | Dec. 31, 2017 | |
Subsidiary, Sale of Stock [Line Items] | |||||
Common stock, shares authorized (in shares) | 100,000,000 | 100,000,000 | 300,000,000 | 300,000,000 | |
Private Placement | |||||
Subsidiary, Sale of Stock [Line Items] | |||||
Number of shares sold (in shares) | 5,494,506 | ||||
Gross proceeds | $ 10 | ||||
Fees incurred | $ 0.2 |
Stockholder's Equity - Schedule
Stockholder's Equity - Schedule of Outstanding Warrants (Details) - $ / shares | Sep. 30, 2018 | Jun. 30, 2018 | May 31, 2018 | Dec. 31, 2017 |
Equity [Abstract] | ||||
Common stock, shares authorized (in shares) | 100,000,000 | 100,000,000 | 300,000,000 | 300,000,000 |
Class Of Warrant Or Right [Line Items] | ||||
Shares (in shares) | 24,224 | |||
Weighted-average exercise price (in dollars per share) | $ 6.1918 | |||
Feb 24, 2012 Warrant Issuance | ||||
Class Of Warrant Or Right [Line Items] | ||||
Shares (in shares) | 24,224 | |||
Weighted-average exercise price (in dollars per share) | $ 6.1918 |
Stockholder's Equity - Schedu_2
Stockholder's Equity - Schedule of Common Stock Reserved for Future Issuance (Details) | Sep. 30, 2018shares |
Class of Stock [Line Items] | |
Total common stock (in shares) | 4,955,218 |
Warrant | |
Class of Stock [Line Items] | |
Total common stock (in shares) | 24,224 |
2016 Equity Incentive Plan | |
Class of Stock [Line Items] | |
Total common stock (in shares) | 892,827 |
2016 ESPP | |
Class of Stock [Line Items] | |
Total common stock (in shares) | 476,259 |
Stock options to purchase common stock | |
Class of Stock [Line Items] | |
Total common stock (in shares) | 3,561,908 |
Commitments and Contingencies -
Commitments and Contingencies - Schedule of Future Noncancelable Minimum Payment Obligations Under Operating Lease (Details) $ in Thousands | Jun. 01, 2018ft² | Sep. 30, 2018USD ($) |
Commitments and Contingencies Disclosure [Abstract] | ||
Additional leased square feet | ft² | 2,700 | |
December 31, 2018 | $ 117 | |
December 31, 2019 | 474 | |
December 31, 2020 | 487 | |
December 31, 2021 | 501 | |
December 31, 2022 | 126 | |
Total future payments due under building lease | $ 1,705 |