Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2018 | Apr. 23, 2018 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2018 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q1 | |
Trading Symbol | TNDM | |
Entity Registrant Name | TANDEM DIABETES CARE INC | |
Entity Central Index Key | 1,438,133 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Smaller Reporting Company | |
Entity Common Stock, Shares Outstanding | 50,067,860 |
CONDENSED BALANCE SHEETS
CONDENSED BALANCE SHEETS - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Current assets: | ||
Cash and cash equivalents | $ 62,583 | $ 13,700 |
Short-term investments | 9,295 | 479 |
Accounts receivable, net | 13,043 | 20,793 |
Inventory, net | 26,486 | 26,993 |
Prepaid and other current assets | 2,936 | 2,191 |
Total current assets | 114,343 | 64,156 |
Property and equipment, net | 18,860 | 19,631 |
Restricted cash - long term | 10,000 | 10,000 |
Other long-term assets | 121 | 102 |
Total assets | 144,699 | 95,346 |
Current liabilities: | ||
Accounts payable | 3,751 | 5,150 |
Accrued expense | 3,199 | 2,832 |
Employee-related liabilities | 10,510 | 14,488 |
Deferred revenue | 2,875 | 2,526 |
Common stock warrants | 18,061 | 5,432 |
Other current liabilities | 5,315 | 5,657 |
Total current liabilities | 43,711 | 36,085 |
Notes payable—long-term | 76,405 | 76,541 |
Deferred rent—long-term | 4,488 | 4,687 |
Other long-term liabilities | 8,247 | 7,181 |
Total liabilities | 132,851 | 124,494 |
Commitments and contingencies | ||
Stockholders’ equity (deficit): | ||
Common stock, $0.001 par value; 100,000 shares authorized as of March 31, 2018 and December 31, 2017, 46,636 and 10,119 shares issued and outstanding at March 31, 2018 and December 31, 2017, respectively. | 47 | 10 |
Additional paid-in capital | 521,958 | 448,455 |
Accumulated deficit | (510,157) | (477,613) |
Total stockholders’ equity (deficit) | 11,848 | (29,148) |
Total liabilities and stockholders’ equity (deficit) | 144,699 | 95,346 |
Patents [Member] | ||
Current assets: | ||
Patents, net | $ 1,375 | $ 1,457 |
CONDENSED BALANCE SHEETS (Paren
CONDENSED BALANCE SHEETS (Parenthetical) - $ / shares | Mar. 31, 2018 | Dec. 31, 2017 |
Statement Of Financial Position [Abstract] | ||
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, shares issued | 46,636,000 | 10,119,000 |
Common stock, shares outstanding | 46,636,000 | 10,119,000 |
CONDENSED STATEMENTS OF OPERATI
CONDENSED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | ||
Income Statement [Abstract] | |||
Sales | $ 27,277 | $ 18,977 | |
Cost of sales | 15,873 | 12,224 | |
Gross profit | 11,404 | 6,753 | |
Operating expenses: | |||
Selling, general and administrative | 20,914 | 22,849 | |
Research and development | 5,975 | 5,130 | |
Total operating expenses | 26,889 | 27,979 | |
Operating loss | (15,485) | (21,226) | |
Other income (expense), net: | |||
Interest and other income | 91 | 59 | |
Interest and other expense | (3,071) | (2,625) | |
Change in fair value of stock warrants | (14,228) | ||
Total other expense, net | (17,208) | (2,566) | |
Net loss | (32,693) | (23,792) | |
Other comprehensive loss: | |||
Unrealized gain on short-term investments | 1 | ||
Comprehensive loss | $ (32,693) | $ (23,791) | |
Net loss per share, basic and diluted | [1] | $ (1.82) | $ (7.46) |
Weighted average shares used to compute basic and diluted net loss per share | [1] | 17,993 | 3,189 |
[1] | The issued and outstanding shares of common stock have been restated for all periods presented to reflect the effects of the 1-for-10 reverse stock split, which was effective on October 9, 2017. |
CONDENSED STATEMENTS OF OPERAT5
CONDENSED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (Unaudited) (Parenthetical) | Oct. 09, 2017 | Mar. 31, 2018 |
Income Statement [Abstract] | ||
Reverse stock split description | 1-for-10 reverse stock split | |
Reverse stock split, conversion ratio | 0.1 |
CONDENSED STATEMENTS OF CASH FL
CONDENSED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 27 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | |
Operating activities | |||
Net loss | $ (32,693) | $ (23,792) | |
Adjustments to reconcile net loss to net cash used in operating activities: | |||
Depreciation and amortization expense | 1,493 | 1,428 | |
Interest expense related to amortization of debt discount and debt issuance costs | 692 | 294 | |
Provision for allowance for doubtful accounts | 359 | 307 | |
Provision for inventory reserve | 107 | 131 | |
Payment in kind interest accrual of notes payable | 405 | $ 2,700 | |
Change in fair value of common stock warrants | 14,228 | ||
Amortization of discount on short-term investments | 59 | (13) | |
Stock-based compensation expense | 1,192 | 2,964 | |
Other | 148 | 64 | |
Changes in operating assets and liabilities: | |||
Accounts receivable, net | 7,657 | 3,178 | |
Inventory, net | 342 | (2,615) | |
Prepaid and other current assets | (745) | (468) | |
Other long-term assets | (18) | (43) | |
Accounts payable | (1,654) | (2,725) | |
Accrued expense | 366 | 855 | |
Employee-related liabilities | (3,978) | 1,447 | |
Deferred revenue | 349 | (1,423) | |
Other current liabilities | (356) | (382) | |
Deferred rent | (185) | (162) | |
Other long-term liabilities | 365 | (262) | |
Net cash used in operating activities | (12,272) | (20,812) | |
Investing activities | |||
Purchase of short-term investments | (9,000) | ||
Proceeds from sales and maturities of short-term investments | 5,250 | ||
Purchase of property and equipment | (514) | (2,643) | |
Net cash provided by (used in) investing activities | (9,514) | 2,607 | |
Financing activities | |||
Proceeds from public offering, net of offering costs | 64,157 | 21,595 | |
Proceeds from exercise of warrants | 6,512 | ||
Proceeds from exercise of common stock | 266 | ||
Net cash provided by financing activities | 70,669 | 21,861 | |
Net increase in cash and cash equivalents and restricted cash | 48,883 | 3,656 | |
Cash and cash equivalents and restricted cash at beginning of period | 23,700 | 44,678 | |
Cash and cash equivalents and restricted cash at end of period | 72,583 | 48,334 | $ 23,700 |
Supplemental disclosures of cash flow information | |||
Interest paid | 2,379 | 1,926 | |
Supplemental schedule of noncash investing and financing activities | |||
Lease incentive - lessor-paid tenant improvements | 1,773 | ||
Debt discount included in other long-term liabilities | 827 | 2,559 | |
Common stock warrants issued in connection with term loan | 3,331 | ||
Public offering costs included in accounts payable | 129 | 374 | |
Property and equipment included in accounts payable | $ 217 | $ 229 |
Organization and Basis of Prese
Organization and Basis of Presentation | 3 Months Ended |
Mar. 31, 2018 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Organization and Basis of Presentation | 1. Organization and Basis of Presentation The Company Tandem Diabetes Care, Inc. is a medical device company focused on the design, development and commercialization of products for people with insulin-dependent diabetes. The Company is incorporated in the state of Delaware. Unless the context requires otherwise, the terms the “Company” or “Tandem” refer to Tandem Diabetes Care, Inc. The Company manufactures and sells insulin pump products in the United States that are designed to address large and differentiated needs of the insulin-dependent diabetes market. The Company’s manufacturing and sales activities primarily focus on the t:slim X2 Insulin Delivery System, or t:slim X2, the next-generation flagship product that is updatable and designed to display Dexcom G5 continuous glucose monitoring, or CGM, sensor information directly on the pump Home Screen. The Company’s insulin pump products are generally considered durable medical equipment, and have an expected lifespan of at least four years. In addition to selling insulin pumps, the Company sells disposable products that are used together with the pumps and are replaced every few days, including cartridges for storing and delivering insulin, and infusion sets that connect the insulin pump to a user’s body. The Company’s insulin pump products are compatible with the Tandem Device Updater, . The Company began commercial sales of its first product, t:slim, in August 2012. During 2015, the Company commenced commercial sales of two additional insulin pumps: t:flex in May 2015 and t:slim G4 in September 2015. In October 2016, the Company commenced commercial sales of t:slim X2 and discontinued new sales of t:slim. In September 2017, the Company commenced commercial sales of t:slim X2 with Dexcom G5 Mobile CGM integration, or t:slim X2 with G5, and discontinued new sales of t:slim G4. The t:slim X2 hardware platform now represents nearly 100% of new pump shipments. Accordingly, the Company intends to discontinue new sales of t:flex pumps in the third quarter of 2018. In July 2016, the Company launched a Technology Upgrade Program that provided eligible t:slim and t:slim G4 customers a path to obtain t:slim X2, or, as of September 2017, t:slim X2 with G5. Participating customers had the right to exchange their original t:slim and t:slim G4 for a t:slim X2 or t:slim X2 with G5, under a variable pricing structure. The Technology Upgrade Program expired on September 30, 2017. The Company has incurred operating losses since its inception and, as reflected in the accompanying financial statements, the Company has an accumulated deficit of $510.2 million as of March 31, 2018, which includes a net loss of $32.7 million for the three months ended March 31, 2018. The Company’s ability to achieve profitable operations primarily depends upon achieving a level of revenues adequate to support its cost structure. The Company primarily funded its operations through private and public equity and debt financing. Management expects operating losses and negative cash flows to continue for at least the next 12 months. As of March 31, 2018, the Company had $81.9 million in cash and cash equivalents and short-term investments, which included $10.0 million of restricted cash. Management evaluated the Company’s ability to continue as a going concern within one year of the financial statements being issued and believes that the cash on hand will be sufficient to satisfy its liquidity requirements for at least the next 12 months. The Company’s ability to continue as a going concern, meet its minimum liquidity requirements in the future or satisfy the other covenants under the Amended and Restated Term Loan Agreement with Capital Royalty Partners, or the Term Loan Agreement (see Note 6, “Term Loan Agreement”) is dependent on its ability to continue to grow the business by executing its strategy to achieve renewal pump sales objectives, develop and launch new products, increase gross profits from higher sales of infusion sets, maximize manufacturing efficiencies and leverage early investments made in the sales, clinical and marketing organization. If the Company does not achieve these objectives, it may in the future seek additional capital from public or private offerings of its capital stock or it may elect to borrow additional amounts under new credit lines or from other sources. If the Company issues equity or debt securities to raise additional funds, its existing stockholders may experience dilution, it may incur significant financing costs, and the new equity or debt securities may have rights, preferences and privileges senior to those of its existing stockholders. There can be no assurance that equity or debt financing will be available on acceptable terms, or at all. The financial statements included in this Quarterly Report on Form 10-Q for the three months ended March 31, 2018 (the “Quarterly Report”) have been prepared on a basis that assumes that the Company will continue as a going concern, and do not include any adjustments that may result from the outcome of this uncertainty. This basis of accounting contemplates the recovery of the Company’s assets and the satisfaction of the Company’s liabilities and commitments in the normal course of business and does not include any adjustments to reflect the possible future effects of the recoverability and classification of recorded asset amounts or amounts and classification of liabilities that might be necessary should the Company be unable to continue as a going concern Basis of Presentation The Company has prepared the accompanying unaudited condensed financial statements in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial information and pursuant to the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and disclosures required by U.S. GAAP for complete financial statements. In the opinion of management, all adjustments which are of a normal and recurring nature, considered necessary for a fair presentation of the financial information contained herein, have been included. Interim financial results are not necessarily indicative of results anticipated for the full year or any other period(s). These unaudited condensed financial statements should be read in conjunction with the Company’s audited financial statements and accompanying footnotes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2017 (“Annual Report”), from which the balance sheet information herein was derived. These unaudited condensed financial statements exclude disclosures required by U.S. GAAP for complete financial statements. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2018 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 2. Summary of Significant Accounting Policies There have been no material changes in our significant accounting policies during the three months ended March 31, 2018, as compared with those disclosed in the Annual Report other than adoption of the new revenue recognition standard (“Revenue from Contracts with Customers Standard”) Use of Estimates The preparation of the financial statements in conformity with U.S. GAAP requires management to make informed estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses, and the disclosure of contingent assets and liabilities in the Company’s financial statements and accompanying footnotes as of the date of the financial statements. Actual results could materially differ from those estimates and assumptions. Segment Reporting Operating segments are identified as components of an enterprise about which segment discrete financial information is available for evaluation by the chief operating decision-maker in making decisions regarding resource allocation and assessing performance. To date, the Company has viewed its operations and managed its business as one segment, operating in the United States. Restricted Cash The Company recorded $10.0 million of restricted cash as of both March 31, 2018 and December 31, 2017, for the minimum cash balance requirement in connection with the Term Loan Agreement (see Note 6, “Term Loan Agreement”). In January 2018, the Company adopted new guidance from the Financial Accounting Standards Board (“FASB”) Accounts Receivable The Company grants credit to various customers in the ordinary course of business. The Company maintains an allowance for doubtful accounts for potential credit losses. Provisions are made based on historical experience, assessment of specific risk, review of outstanding invoices, and various assumptions and estimates that are believed to be reasonable under the circumstances. Uncollectible accounts are written off against the allowance after appropriate collection efforts have been exhausted and when it is deemed that a balance is uncollectible. Fair Value of Financial Instruments The carrying amounts of cash and cash equivalents, accounts receivable, accounts payable, accrued expense, and employee-related liabilities are reasonable estimates of their fair values because of the short-term nature of these assets and liabilities. Short-term investments The estimated fair value of certain of the Company’s common stock warrants is determined by using the Black-Scholes pricing model as of March 31, 2018 and December 31, 2017, as discussed in Note 5. Revenue Recognition Revenue is generated primarily from sales in the United States of insulin pumps, disposable cartridges and infusion sets to individual customers and third-party distributors that resell the product to insulin-dependent diabetes customers. The Company is paid directly by customers who use the products, distributors and third-party insurance payors. In January 2018, the Company adopted Revenue from Contracts with Customers Standard that supersedes existing revenue guidance under U.S. GAAP and International Financial Reporting Standards. Pursuant to the Revenue from Contracts with Customers Standard’s core principle subsequent to January 1, 2018, the Company recognizes revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. The Company elected to implement this new standard utilizing the modified retrospective method. Under the modified retrospective approach, the Company applied the new standard to all new contracts initiated on/after the effective date, and, for contracts which had remaining obligations as of the effective date, the Company recorded an adjustment to the opening balance of accumulated deficit. The accounting for the significant majority of the Company’s revenues is not impacted by the new guidance. As a result, on January 1, 2018, the Company recorded a net reduction to accumulated deficit in the amount of $149,000, reflecting the accounting change. Prior to the implementation of this new standard, revenue was recognized when persuasive evidence of an arrangement existed, delivery had occurred and title passed, the price was fixed or determinable, and collectability was reasonably assured. The Company At March 31, 2018 and December 31, 2017, $2.1 million and $2.0 million, respectively, were recorded as deferred revenue for these performance obligations that are satisfied over time. Additionally, the Company offers a 30-day right of return to its customers from the date of shipment of any of its insulin pumps, provided a physician’s confirmation of the medical reason for the return is received. Estimated allowances for sales returns are based on historical returned quantities as compared to pump shipments in those same periods of return. The return rate is then applied to the sales of the current period to establish a reserve at the end of the period. The return rates used in the reserve are adjusted for known or expected changes in the marketplace when appropriate. Under the new guidance, the allowance for product returns is recorded as a reduction of revenue and an increase in deferred revenue in the period in which the related sale is recorded. Historically, the allowance was recorded as a reduction of revenue and accounts receivable. The amount recorded on the Company’s balance sheets for product return allowance was Warranty Reserve The Company generally provides a four-year warranty on its insulin pumps to end user customers and may replace any pumps that do not function in accordance with the product specifications. Insulin pumps returned to the Company may be refurbished and redeployed. The Company evaluates the reserve quarterly and makes adjustments when appropriate. Changes to the actual replacement rates or the expected product replacement cost could have a material impact on the Company’s estimated warranty reserve. As of March 31, 2018 and December 31, 2017, the warranty reserve was $6.1 million and $5.6 million, respectively. The following table provides a reconciliation of the change in product warranty liabilities from December 31, 2017 through March 31, 2018 (in thousands): Balance at December 31, 2017 $ 5,640 Provision for warranties issued during the period 1,672 Settlements made during the period (1,836 ) Increases in warranty estimates 610 Balance at March 31, 2018 $ 6,086 Current portion $ 2,803 Non-current portion 3,283 Total $ 6,086 Stock-Based Compensation Stock-based compensation cost is measured at the grant date based on the estimated fair value of the award, and the portion that is ultimately expected to vest is recognized as compensation expense over the requisite service period on a straight-line basis. The Company estimates the fair value of stock options issued under the Company’s 2013 Stock Incentive Plan (“2013 Plan”) and shares issued under the Company’s 2013 Employee Stock Purchase Plan (“ESPP”) using a Black-Scholes option-pricing model on the date of grant. The Black-Scholes option-pricing model requires the use of subjective assumptions about a number of key variables, including stock price volatility, expected term, and risk-free interest rate. For awards that vest based on the achievement of service conditions, the Company recognizes expense using the straight-line method less estimated forfeitures based on historical experience. Net Loss Per Share Basic net loss per share Potentially dilutive securities not included in the calculation of diluted net loss per share (because inclusion would be anti-dilutive) are as follows (in thousands, in common stock equivalent shares): Three Months Ended March 31, 2018 2017 Warrants for common stock 7,323 - Common stock options 419 125 ESPP - 39 7,742 164 Reclassifications Certain reclassifications of prior year amounts have been made to conform to the current year presentation. Recent Accounting Pronouncements In June 2016, FASB issued a new credit loss standard that changes the impairment model for most financial assets and certain other instruments. for annual periods beginning after December 15, 2018, and interim periods within those years In February 2016, FASB issued final guidance for lease accounting. The new guidance requires lessees to put most leases on their balance sheet but to recognize expenses on their income statement in a manner similar to current accounting principles. The new guidance also eliminates the current real estate-specific provisions for all entities. The standard is effective for public companies for annual periods beginning after December 15, 2018, and interim periods within those years. Early adoption is permitted for all entities. The Company is in the process of assessing the impact of the adoption of the standard on its financial statements. |
Short-Term Investments
Short-Term Investments | 3 Months Ended |
Mar. 31, 2018 | |
Investments Debt And Equity Securities [Abstract] | |
Short-Term Investments | 3. Short-Term Investments The Company invests in investment securities, principally debt instruments of financial institutions and corporations with strong credit ratings. The following represents a summary of the estimated fair value of short-term investments as of March 31, 2018 and December 31, 2017 (in thousands): At March 31, 2018 Maturity (in years) Amortized Cost Unrealized Gain Unrealized Loss Estimated Fair Value Available-for-sale investment securities: Commercial paper $ 8,941 $ 1 $ (1 ) $ 8,941 Trading securities: Mutual funds held for nonqualified deferred compensation plan participants 355 (1 ) — 354 Total $ 9,296 $ — $ (1 ) $ 9,295 At December 31, 2017 Maturity (in years) Amortized Cost Unrealized Gain Unrealized Loss Estimated Fair Value Trading securities: Mutual funds held for nonqualified deferred compensation plan participants $ 459 $ 20 $ — $ 479 Total $ 459 $ 20 $ — $ 479 |
Inventory
Inventory | 3 Months Ended |
Mar. 31, 2018 | |
Inventory Disclosure [Abstract] | |
Inventory | 4. Inventory Inventory consisted of the following as of March 31, 2018 and December 31, 2017 (in thousands): March 31, December 31, 2018 2017 Raw materials $ 10,395 $ 10,328 Work in process 3,761 3,812 Finished goods 12,330 12,853 Total $ 26,486 $ 26,993 |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 5. Fair Value Measurements Authoritative guidance on fair value measurements defines fair value, establishes a consistent framework for measuring fair value, and expands disclosures for each major asset and liability category measured at fair value on either a recurring or a nonrecurring basis. Fair value is intended to reflect an assumed exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or liability. As a basis for considering such assumptions, the authoritative guidance establishes a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value as follows: Level 1: Observable inputs such as unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities . Level 2: Inputs, other than quoted prices in active markets, that are observable either directly or indirectly for substantially the full term of the asset or liability . Level 3: Unobservable inputs in which there is little or no market data and that are significant to the fair value of the assets or liabilities, which require the reporting entity to develop its own valuation techniques that require input assumptions . The following table presents information about the Company’s financial assets and liabilities measured at fair value on a recurring basis as of March 31, 2018 and December 31, 2017, and indicates the fair value hierarchy of the valuation techniques utilized by the Company to determine such fair value (in thousands): Fair Value Measurements at March 31, 2018 (Level 1) (Level 2) (Level 3) Assets Cash equivalents (1) $ 64,709 $ 64,709 $ — $ — Commercial paper 8,941 — 8,941 — Mutual funds held for nonqualified deferred compensation plan participants (2) 354 354 — — Total assets $ 74,004 $ 65,063 $ 8,941 $ — Liabilities Common stock warrants $ 18,061 $ — $ — $ 18,061 Deferred compensation (2) 354 354 — — Total liabilities $ 18,415 $ 354 $ — $ 18,061 Fair Value Measurements at December 31, 2017 (Level 1) (Level 2) (Level 3) Assets Cash equivalents (1) $ 23,700 $ 23,700 $ — $ — Mutual funds held for nonqualified deferred compensation plan participants (2) 479 479 — — Total assets $ 24,179 $ 24,179 $ — $ — Liabilities Common stock warrants $ 5,432 $ — $ — $ 5,432 Deferred compensation (2) 479 479 — - Total liabilities $ 5,911 $ 479 $ — $ 5,432 (1) Generally, cash equivalents include money market funds and investments with a maturity of three months or less from the date of purchase. This asset is included as a component of cash and cash equivalents on the balance sheet, of which $10.0 million is classified as restricted cash – long-term as of both March 31, 2018 and December 31, 2017. (2) The deferred compensation plan is directed by the Company and structured as a Rabbi Trust for the benefit of certain executives and non-employee directors. The investment assets of the Rabbi Trust are valued using quoted market prices multiplied by the number of shares held in each trust account. The related deferred compensation liability represents the fair value of the investment assets . The Company’s Level 2 financial instruments are valued using market prices on less active markets with observable valuation inputs such as interest rates and yield curves. The Company obtains the fair value of Level 2 financial instruments from quoted market prices, calculated prices or quotes from third-party pricing services. The Company validates these prices through independent valuation testing and review of portfolio valuations provided by the Company’s investment managers. There were no transfers between Level 1 and Level 2 assets during the three months ended March 31, 2018. Level 3 liabilities at March 31, 2018 and December 31, 2017 include the Series A and Series B common stock warrants issued by the Company in connection with the public offering of common stock in October 2017. The Series A warrants to purchase 4,630,000 shares of the Company’s common stock have a term of five years and an exercise price of $3.50 per share. The Series B warrants to purchase 4,630,000 shares of the Company’s common stock have a term of six months and an exercise price of $3.50 per share. These warrants were initially valued at $6.5 million on the date of issuance utilizing a Black-Scholes pricing model. The Company reassesses the fair value of the outstanding Series A and Series B warrants at each reporting date utilizing a Black-Scholes pricing model. Inputs used in the pricing model include estimates of stock price volatility, expected warrant life and risk-free interest rate. The Company develops its estimates based on publicly available historical data. The assumptions used to estimate the fair values of the common stock warrants at March 31, 2018 and December 31, 2017 are presented below: Series A Warrants March 31, 2018 December 31, 2017 Risk-free interest rate 2.6 % 2.2 % Expected dividend yield 0.0 % 0.0 % Expected volatility 65.2 % 63.5 % Expected term (in years) 4.6 4.8 Series B Warrants March 31, 2018 December 31, 2017 Risk-free interest rate 1.6 % 1.4 % Expected dividend yield 0.0 % 0.0 % Expected volatility 42.8 % 80.3 % Expected term (in years) 0.1 0.3 The following table presents a summary of changes in fair value of the Company’s total Level 3 financial assets for the quarter ended March 31, 2018: Balance at December 31, 2017 $ 5,432 Decrease in fair value from warrants exercised during the period (1,599 ) Increase in fair value included in change in fair value of common stock warrants 14,228 Balance at March 31, 2018 $ 18,061 During the quarter ended March 31, 2018, the Company issued 1,936,565 shares of common stock upon the exercise of Series A and Series B warrants. As a result, Series A and Series B warrants to purchase 7,323,435 common stock warrants from the October financing were outstanding as of March 31, 2018. |
Term Loan Agreement
Term Loan Agreement | 3 Months Ended |
Mar. 31, 2018 | |
Debt Disclosure [Abstract] | |
Term Loan Agreement | 6. Term Loan Agreement The Company had $82.7 million of aggregate borrowings outstanding under the Term Loan Agreement, as of both March 31, 2018 and December 31, 2017. Under the Term Loan Agreement, interest is payable at the Company’s option, (i) in cash at a rate of 11.5% per annum, or (ii) at a rate of 9.5% of the 11.5% per annum in cash and 2.0% of the 11.5% per annum (the “PIK Loan”) to be added to the principal of the loan and subject to accruing interest. Interest-only payments are due quarterly on March 31, June 30, September 30 and December 31 of each year of the interest-only payment period, which ends on December 31, 2019. The principal balance is due in full at the end of the term of the loan, which is March 31, 2020 (the “Maturity Date”). The Company had elected to pay interest in cash at a rate of 11.5% per annum through September 30, 2015. From October 1, 2015 through December 31, 2017, the Company elected to pay interest in cash at a rate of 9.5% per annum and for a rate of 2.0% per annum to be added to the principal of the loan. As a result, $2.7 million was added to the principal of the loan during that time period (the “PIK Loans”). The term loan is collateralized by all assets of the Company. The principal financial covenants require that the Company attain minimum annual revenues of $95.0 million in 2018 and each year thereafter until the Maturity Date. Pursuant to Amendment No. 3 to the In March 2017, the Company entered into Amendment No. 4 to the Term Loan Agreement (the “Fourth Amendment”), which included a limited waiver of a potential event of default that could have resulted from the explanatory paragraph in the audit report of its independent registered public accounting firm In consideration for the waiver, the Company agreed to: (i) issue Capital Royalty Partners ten-year warrants to purchase an aggregate of 193,788 shares of the Company’s common stock at an exercise price equal to $23.50 per share, the closing price of our common stock on the NASDAQ Global Market on the date of the Fourth Amendment, (ii) increase the Company’s minimum cash balance requirement under the Term Loan Agreement from $2.0 million to $10.0 million, (iii) provide Capital Royalty Partners the same information it makes available to its board of directors, subject to limited exceptions, and (iv) not incur additional third party indebtedness secured solely by accounts receivable, inventory and cash. Furthermore, the Company agreed to increase the Back End Financing Fee to 5.0% of the entire aggregate principal amount of borrowings outstanding, including total PIK Loans issued, under the Term Loan Agreement, which was $82.7 million as of December 31, 2017. The Back End Financing Fee is payable at maturity of the Company’s loans and on the principal amount of any loans for which it makes an optional prepayment, and may be payable in connection with asset sales not permitted under the Term Loan Agreement or a change of control. In February 2018, the Company entered into Amendment No. 5 to the Term Loan Agreement (the “Fifth Amendment”), which included a limited advance waiver of a potential event of default that could have resulted from a qualification regarding the Company’s ability to continue as a going concern in the audit report for the year ended December 31, 2017. The Fifth Amendment included a covenant requiring the Company to complete a financing in which gross proceeds from the sale of equity securities was at least $20.0 million, no later than August 30, 2018, which covenant was satisfied in February 2018. In addition, the Company agreed to increase the Back End Financing Fee from 5.0% to 6.0% of the entire aggregrate principal amount of borrowings outstanding, including total PIK Loans issued, under the Term Loan Agreement. As of March 31, 2018, and December 31, 2017, the Company had accrued $5.0 million and $4.1 million for the Back End Financing Fee in other long-term liabilities and as contra-debt in notes payable-long-term on the accompanying balance sheet. The Company treated the execution of each of the Third, Fourth and Fifth Amendments as a modification for accounting purposes. The present value of the future cash flows under these amendments did not exceed the present value of the future cash flows under the previous terms by more than 10%. The Back End Financing Fee and the remaining balance of debt issuance costs and debt discount of the loan are amortized to interest expense over the remaining term using the effective interest method. |
Stockholders' Equity
Stockholders' Equity | 3 Months Ended |
Mar. 31, 2018 | |
Equity [Abstract] | |
Stockholders' Equity | 7. Stockholders’ Equity Public Offerings In the first quarter of 2017, the Company completed a public offering of 1,850,000 shares of its common stock at a public offering price of $12.50 per share. The gross proceeds to the Company from the offering were $23.1 million, before deducting underwriting discounts and commissions and other offering expenses payable by the Company. From July 2017 through September 2017, the Company sold 464,108 shares of its common stock under its “at-the-market” offering program at prices ranging from $5.64 to $10.54. The gross proceeds from the offering were $4.3 million, before deducting underwriting discounts and commissions and other offering expenses. In October 2017, the Company completed a public offering, pursuant to which it sold 4,630,000 shares of its common stock, Series A warrants to purchase up to 4,630,000 shares of common stock and Series B warrants to purchase up to 4,630,000 shares of common stock at a public offering price of $3.50 per share and accompanying warrants. The gross proceeds from the public offering were approximately $16.2 million, before deducting underwriting discounts and commissions and other offering expenses. As of March 31, 2018, the Company had issued 1,936,565 shares of common stock upon exercise of Series A and Series B warrants, which resulted in gross proceeds to the Company of $6.5 million. Subsequent to March 31, 2018, through the expiration of the Series B warrants on April 17, 2018, an additional 3,432,555 warrants were exercised resulting in additional gross proceeds of $11.3 million. In the first quarter of 2018, the Company completed a public offering of 34,500,000 shares of its common stock at a public offering price of $2.00 per share. The gross proceeds to the Company from the offering were $69.0 million, before deducting underwriting discounts and commissions and other offering expenses payable by the Company. Shares Reserved for Future Issuance The following shares of the Company’s common stock were reserved for future issuance as of March 31, 2018 (in thousands): Shares underlying outstanding warrants 7,616 Shares underlying outstanding stock options 1,267 Shares authorized for future equity award grants 97 Shares authorized for issuance as ESPP awards 101 9,081 The Company did not issue any shares of its common stock upon the exercise of any form of stock warrants during the year ended December 31, 2017. The Company issued 24,406 shares of its common stock upon the exercise of stock options during the year ended December 31, 2017. The Company did not issue any shares of its common stock upon the exercise of stock options during the three months ended March 31, 2018. The ESPP enables eligible employees to purchase shares of the Company’s common stock using their after tax payroll deductions, subject to certain conditions. Historically, offerings under t he ESPP consisted of a two-year offering period with four six-month purchase periods which began in May and November of each year. 38,929 Stock-Based Compensation The assumptions used in the Black-Scholes option-pricing model are as follows: Stock Option Three Months Ended March 31, 2018 2017 Weighted average grant date fair value (per share) $ 1.86 $ 12.50 Risk-free interest rate 2.7 % 2.1 % Expected dividend yield 0.0 % 0.0 % Expected volatility 61.4 % 59.3 % Expected term (in years) 6.1 6.1 The following table summarizes the allocation of stock-based compensation expense (in thousands): Three Months Ended March 31, 2018 2017 Cost of sales $ 165 $ 229 Selling, general & administrative 912 2,461 Research and development 115 274 Total $ 1,192 $ 2,964 The total stock-based compensation expense capitalized as part of the cost of inventory was $0.1 million and $0.2 million as of March 31, 2018 and December 31, 2017, respectively. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2018 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 8. Commitments and Contingencies From time to time, the Company may be subject to legal proceedings, disputes and other claims arising in the ordinary course of business, including actions with respect to intellectual property, employment, product liability and contractual matters. In connection with these matters, the Company regularly assesses the probability and range of possible loss based on the developments in these matters. A liability is recorded in the financial statements if it is determined that it is probable that a loss has been incurred, and that the amount or range of the loss can be reasonably estimated. Because of uncertainties related to any pending actions, the Company is currently unable to predict their ultimate outcome, and, with respect to any legal proceeding or claim where no liability has been accrued, to make a meaningful estimate of the reasonably possible loss or range of loss that could result from an unfavorable outcome. As of March 31, 2018 and December 31, 2017, there were no legal proceedings, regulatory encounters or other matters for which the negative outcome was considered probable or for which the amount or range of loss was reasonably estimable. |
Organization and Basis of Pre15
Organization and Basis of Presentation (Policies) | 3 Months Ended |
Mar. 31, 2018 | |
Accounting Policies [Abstract] | |
The Company | The Company Tandem Diabetes Care, Inc. is a medical device company focused on the design, development and commercialization of products for people with insulin-dependent diabetes. The Company is incorporated in the state of Delaware. Unless the context requires otherwise, the terms the “Company” or “Tandem” refer to Tandem Diabetes Care, Inc. The Company manufactures and sells insulin pump products in the United States that are designed to address large and differentiated needs of the insulin-dependent diabetes market. The Company’s manufacturing and sales activities primarily focus on the t:slim X2 Insulin Delivery System, or t:slim X2, the next-generation flagship product that is updatable and designed to display Dexcom G5 continuous glucose monitoring, or CGM, sensor information directly on the pump Home Screen. The Company’s insulin pump products are generally considered durable medical equipment, and have an expected lifespan of at least four years. In addition to selling insulin pumps, the Company sells disposable products that are used together with the pumps and are replaced every few days, including cartridges for storing and delivering insulin, and infusion sets that connect the insulin pump to a user’s body. The Company’s insulin pump products are compatible with the Tandem Device Updater, . The Company began commercial sales of its first product, t:slim, in August 2012. During 2015, the Company commenced commercial sales of two additional insulin pumps: t:flex in May 2015 and t:slim G4 in September 2015. In October 2016, the Company commenced commercial sales of t:slim X2 and discontinued new sales of t:slim. In September 2017, the Company commenced commercial sales of t:slim X2 with Dexcom G5 Mobile CGM integration, or t:slim X2 with G5, and discontinued new sales of t:slim G4. The t:slim X2 hardware platform now represents nearly 100% of new pump shipments. Accordingly, the Company intends to discontinue new sales of t:flex pumps in the third quarter of 2018. In July 2016, the Company launched a Technology Upgrade Program that provided eligible t:slim and t:slim G4 customers a path to obtain t:slim X2, or, as of September 2017, t:slim X2 with G5. Participating customers had the right to exchange their original t:slim and t:slim G4 for a t:slim X2 or t:slim X2 with G5, under a variable pricing structure. The Technology Upgrade Program expired on September 30, 2017. The Company has incurred operating losses since its inception and, as reflected in the accompanying financial statements, the Company has an accumulated deficit of $510.2 million as of March 31, 2018, which includes a net loss of $32.7 million for the three months ended March 31, 2018. The Company’s ability to achieve profitable operations primarily depends upon achieving a level of revenues adequate to support its cost structure. The Company primarily funded its operations through private and public equity and debt financing. Management expects operating losses and negative cash flows to continue for at least the next 12 months. As of March 31, 2018, the Company had $81.9 million in cash and cash equivalents and short-term investments, which included $10.0 million of restricted cash. Management evaluated the Company’s ability to continue as a going concern within one year of the financial statements being issued and believes that the cash on hand will be sufficient to satisfy its liquidity requirements for at least the next 12 months. The Company’s ability to continue as a going concern, meet its minimum liquidity requirements in the future or satisfy the other covenants under the Amended and Restated Term Loan Agreement with Capital Royalty Partners, or the Term Loan Agreement (see Note 6, “Term Loan Agreement”) is dependent on its ability to continue to grow the business by executing its strategy to achieve renewal pump sales objectives, develop and launch new products, increase gross profits from higher sales of infusion sets, maximize manufacturing efficiencies and leverage early investments made in the sales, clinical and marketing organization. If the Company does not achieve these objectives, it may in the future seek additional capital from public or private offerings of its capital stock or it may elect to borrow additional amounts under new credit lines or from other sources. If the Company issues equity or debt securities to raise additional funds, its existing stockholders may experience dilution, it may incur significant financing costs, and the new equity or debt securities may have rights, preferences and privileges senior to those of its existing stockholders. There can be no assurance that equity or debt financing will be available on acceptable terms, or at all. The financial statements included in this Quarterly Report on Form 10-Q for the three months ended March 31, 2018 (the “Quarterly Report”) have been prepared on a basis that assumes that the Company will continue as a going concern, and do not include any adjustments that may result from the outcome of this uncertainty. This basis of accounting contemplates the recovery of the Company’s assets and the satisfaction of the Company’s liabilities and commitments in the normal course of business and does not include any adjustments to reflect the possible future effects of the recoverability and classification of recorded asset amounts or amounts and classification of liabilities that might be necessary should the Company be unable to continue as a going concern |
Basis of Presentation | Basis of Presentation The Company has prepared the accompanying unaudited condensed financial statements in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial information and pursuant to the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and disclosures required by U.S. GAAP for complete financial statements. In the opinion of management, all adjustments which are of a normal and recurring nature, considered necessary for a fair presentation of the financial information contained herein, have been included. Interim financial results are not necessarily indicative of results anticipated for the full year or any other period(s). These unaudited condensed financial statements should be read in conjunction with the Company’s audited financial statements and accompanying footnotes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2017 (“Annual Report”), from which the balance sheet information herein was derived. These unaudited condensed financial statements exclude disclosures required by U.S. GAAP for complete financial statements. |
Use of Estimates | Use of Estimates The preparation of the financial statements in conformity with U.S. GAAP requires management to make informed estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses, and the disclosure of contingent assets and liabilities in the Company’s financial statements and accompanying footnotes as of the date of the financial statements. Actual results could materially differ from those estimates and assumptions. |
Segment Reporting | Segment Reporting Operating segments are identified as components of an enterprise about which segment discrete financial information is available for evaluation by the chief operating decision-maker in making decisions regarding resource allocation and assessing performance. To date, the Company has viewed its operations and managed its business as one segment, operating in the United States. |
Restricted Cash | Restricted Cash The Company recorded $10.0 million of restricted cash as of both March 31, 2018 and December 31, 2017, for the minimum cash balance requirement in connection with the Term Loan Agreement (see Note 6, “Term Loan Agreement”). In January 2018, the Company adopted new guidance from the Financial Accounting Standards Board (“FASB”) |
Accounts Receivable | Accounts Receivable The Company grants credit to various customers in the ordinary course of business. The Company maintains an allowance for doubtful accounts for potential credit losses. Provisions are made based on historical experience, assessment of specific risk, review of outstanding invoices, and various assumptions and estimates that are believed to be reasonable under the circumstances. Uncollectible accounts are written off against the allowance after appropriate collection efforts have been exhausted and when it is deemed that a balance is uncollectible. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments The carrying amounts of cash and cash equivalents, accounts receivable, accounts payable, accrued expense, and employee-related liabilities are reasonable estimates of their fair values because of the short-term nature of these assets and liabilities. Short-term investments The estimated fair value of certain of the Company’s common stock warrants is determined by using the Black-Scholes pricing model as of March 31, 2018 and December 31, 2017, as discussed in Note 5. |
Revenue Recognition | Revenue Recognition Revenue is generated primarily from sales in the United States of insulin pumps, disposable cartridges and infusion sets to individual customers and third-party distributors that resell the product to insulin-dependent diabetes customers. The Company is paid directly by customers who use the products, distributors and third-party insurance payors. In January 2018, the Company adopted Revenue from Contracts with Customers Standard that supersedes existing revenue guidance under U.S. GAAP and International Financial Reporting Standards. Pursuant to the Revenue from Contracts with Customers Standard’s core principle subsequent to January 1, 2018, the Company recognizes revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. The Company elected to implement this new standard utilizing the modified retrospective method. Under the modified retrospective approach, the Company applied the new standard to all new contracts initiated on/after the effective date, and, for contracts which had remaining obligations as of the effective date, the Company recorded an adjustment to the opening balance of accumulated deficit. The accounting for the significant majority of the Company’s revenues is not impacted by the new guidance. As a result, on January 1, 2018, the Company recorded a net reduction to accumulated deficit in the amount of $149,000, reflecting the accounting change. Prior to the implementation of this new standard, revenue was recognized when persuasive evidence of an arrangement existed, delivery had occurred and title passed, the price was fixed or determinable, and collectability was reasonably assured. The Company At March 31, 2018 and December 31, 2017, $2.1 million and $2.0 million, respectively, were recorded as deferred revenue for these performance obligations that are satisfied over time. Additionally, the Company offers a 30-day right of return to its customers from the date of shipment of any of its insulin pumps, provided a physician’s confirmation of the medical reason for the return is received. Estimated allowances for sales returns are based on historical returned quantities as compared to pump shipments in those same periods of return. The return rate is then applied to the sales of the current period to establish a reserve at the end of the period. The return rates used in the reserve are adjusted for known or expected changes in the marketplace when appropriate. Under the new guidance, the allowance for product returns is recorded as a reduction of revenue and an increase in deferred revenue in the period in which the related sale is recorded. Historically, the allowance was recorded as a reduction of revenue and accounts receivable. The amount recorded on the Company’s balance sheets for product return allowance was |
Warranty Reserve | Warranty Reserve The Company generally provides a four-year warranty on its insulin pumps to end user customers and may replace any pumps that do not function in accordance with the product specifications. Insulin pumps returned to the Company may be refurbished and redeployed. The Company evaluates the reserve quarterly and makes adjustments when appropriate. Changes to the actual replacement rates or the expected product replacement cost could have a material impact on the Company’s estimated warranty reserve. As of March 31, 2018 and December 31, 2017, the warranty reserve was $6.1 million and $5.6 million, respectively. The following table provides a reconciliation of the change in product warranty liabilities from December 31, 2017 through March 31, 2018 (in thousands): Balance at December 31, 2017 $ 5,640 Provision for warranties issued during the period 1,672 Settlements made during the period (1,836 ) Increases in warranty estimates 610 Balance at March 31, 2018 $ 6,086 Current portion $ 2,803 Non-current portion 3,283 Total $ 6,086 |
Stock-Based Compensation | Stock-Based Compensation Stock-based compensation cost is measured at the grant date based on the estimated fair value of the award, and the portion that is ultimately expected to vest is recognized as compensation expense over the requisite service period on a straight-line basis. The Company estimates the fair value of stock options issued under the Company’s 2013 Stock Incentive Plan (“2013 Plan”) and shares issued under the Company’s 2013 Employee Stock Purchase Plan (“ESPP”) using a Black-Scholes option-pricing model on the date of grant. The Black-Scholes option-pricing model requires the use of subjective assumptions about a number of key variables, including stock price volatility, expected term, and risk-free interest rate. For awards that vest based on the achievement of service conditions, the Company recognizes expense using the straight-line method less estimated forfeitures based on historical experience. |
Net Loss Per Share | Net Loss Per Share Basic net loss per share Potentially dilutive securities not included in the calculation of diluted net loss per share (because inclusion would be anti-dilutive) are as follows (in thousands, in common stock equivalent shares): Three Months Ended March 31, 2018 2017 Warrants for common stock 7,323 - Common stock options 419 125 ESPP - 39 7,742 164 |
Reclassifications | Reclassifications Certain reclassifications of prior year amounts have been made to conform to the current year presentation. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In June 2016, FASB issued a new credit loss standard that changes the impairment model for most financial assets and certain other instruments. for annual periods beginning after December 15, 2018, and interim periods within those years In February 2016, FASB issued final guidance for lease accounting. The new guidance requires lessees to put most leases on their balance sheet but to recognize expenses on their income statement in a manner similar to current accounting principles. The new guidance also eliminates the current real estate-specific provisions for all entities. The standard is effective for public companies for annual periods beginning after December 15, 2018, and interim periods within those years. Early adoption is permitted for all entities. The Company is in the process of assessing the impact of the adoption of the standard on its financial statements. |
Summary of Significant Accoun16
Summary of Significant Accounting Policies (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Accounting Policies [Abstract] | |
Summary of Reconciliation of Change in Product Warranty Liabilities | The following table provides a reconciliation of the change in product warranty liabilities from December 31, 2017 through March 31, 2018 (in thousands): Balance at December 31, 2017 $ 5,640 Provision for warranties issued during the period 1,672 Settlements made during the period (1,836 ) Increases in warranty estimates 610 Balance at March 31, 2018 $ 6,086 Current portion $ 2,803 Non-current portion 3,283 Total $ 6,086 |
Schedule of Anti-Dilutive Securities | Potentially dilutive securities not included in the calculation of diluted net loss per share (because inclusion would be anti-dilutive) are as follows (in thousands, in common stock equivalent shares): Three Months Ended March 31, 2018 2017 Warrants for common stock 7,323 - Common stock options 419 125 ESPP - 39 7,742 164 |
Short-Term Investments (Tables)
Short-Term Investments (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Investments Debt And Equity Securities [Abstract] | |
Summary of Estimated Fair Value of Short-Term Investments | The Company invests in investment securities, principally debt instruments of financial institutions and corporations with strong credit ratings. The following represents a summary of the estimated fair value of short-term investments as of March 31, 2018 and December 31, 2017 (in thousands): At March 31, 2018 Maturity (in years) Amortized Cost Unrealized Gain Unrealized Loss Estimated Fair Value Available-for-sale investment securities: Commercial paper $ 8,941 $ 1 $ (1 ) $ 8,941 Trading securities: Mutual funds held for nonqualified deferred compensation plan participants 355 (1 ) — 354 Total $ 9,296 $ — $ (1 ) $ 9,295 At December 31, 2017 Maturity (in years) Amortized Cost Unrealized Gain Unrealized Loss Estimated Fair Value Trading securities: Mutual funds held for nonqualified deferred compensation plan participants $ 459 $ 20 $ — $ 479 Total $ 459 $ 20 $ — $ 479 |
Inventory (Tables)
Inventory (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Inventory Disclosure [Abstract] | |
Summary of Inventory | Inventory consisted of the following as of March 31, 2018 and December 31, 2017 (in thousands): March 31, December 31, 2018 2017 Raw materials $ 10,395 $ 10,328 Work in process 3,761 3,812 Finished goods 12,330 12,853 Total $ 26,486 $ 26,993 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Schedule of Financial Assets and Liabilities Measured at Fair Value on Recurring Basis | The following table presents information about the Company’s financial assets and liabilities measured at fair value on a recurring basis as of March 31, 2018 and December 31, 2017, and indicates the fair value hierarchy of the valuation techniques utilized by the Company to determine such fair value (in thousands): Fair Value Measurements at March 31, 2018 (Level 1) (Level 2) (Level 3) Assets Cash equivalents (1) $ 64,709 $ 64,709 $ — $ — Commercial paper 8,941 — 8,941 — Mutual funds held for nonqualified deferred compensation plan participants (2) 354 354 — — Total assets $ 74,004 $ 65,063 $ 8,941 $ — Liabilities Common stock warrants $ 18,061 $ — $ — $ 18,061 Deferred compensation (2) 354 354 — — Total liabilities $ 18,415 $ 354 $ — $ 18,061 Fair Value Measurements at December 31, 2017 (Level 1) (Level 2) (Level 3) Assets Cash equivalents (1) $ 23,700 $ 23,700 $ — $ — Mutual funds held for nonqualified deferred compensation plan participants (2) 479 479 — — Total assets $ 24,179 $ 24,179 $ — $ — Liabilities Common stock warrants $ 5,432 $ — $ — $ 5,432 Deferred compensation (2) 479 479 — - Total liabilities $ 5,911 $ 479 $ — $ 5,432 (1) Generally, cash equivalents include money market funds and investments with a maturity of three months or less from the date of purchase. This asset is included as a component of cash and cash equivalents on the balance sheet, of which $10.0 million is classified as restricted cash – long-term as of both March 31, 2018 and December 31, 2017. (2) The deferred compensation plan is directed by the Company and structured as a Rabbi Trust for the benefit of certain executives and non-employee directors. The investment assets of the Rabbi Trust are valued using quoted market prices multiplied by the number of shares held in each trust account. The related deferred compensation liability represents the fair value of the investment assets . |
Schedule of Assumptions Used to Estimate Fair Values of Common Stock Warrants | The assumptions used to estimate the fair values of the common stock warrants at March 31, 2018 and December 31, 2017 are presented below: Series A Warrants March 31, 2018 December 31, 2017 Risk-free interest rate 2.6 % 2.2 % Expected dividend yield 0.0 % 0.0 % Expected volatility 65.2 % 63.5 % Expected term (in years) 4.6 4.8 Series B Warrants March 31, 2018 December 31, 2017 Risk-free interest rate 1.6 % 1.4 % Expected dividend yield 0.0 % 0.0 % Expected volatility 42.8 % 80.3 % Expected term (in years) 0.1 0.3 |
Summary of Changes in Fair Value of Total Level 3 Financial Assets | The following table presents a summary of changes in fair value of the Company’s total Level 3 financial assets for the quarter ended March 31, 2018: Balance at December 31, 2017 $ 5,432 Decrease in fair value from warrants exercised during the period (1,599 ) Increase in fair value included in change in fair value of common stock warrants 14,228 Balance at March 31, 2018 $ 18,061 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Equity [Abstract] | |
Schedule of Shares of Common Stock Reserved for Future Issuance | The following shares of the Company’s common stock were reserved for future issuance as of March 31, 2018 (in thousands): Shares underlying outstanding warrants 7,616 Shares underlying outstanding stock options 1,267 Shares authorized for future equity award grants 97 Shares authorized for issuance as ESPP awards 101 9,081 |
Schedule of Assumptions Used in Black-Scholes Option-Pricing Model | The assumptions used in the Black-Scholes option-pricing model are as follows: Stock Option Three Months Ended March 31, 2018 2017 Weighted average grant date fair value (per share) $ 1.86 $ 12.50 Risk-free interest rate 2.7 % 2.1 % Expected dividend yield 0.0 % 0.0 % Expected volatility 61.4 % 59.3 % Expected term (in years) 6.1 6.1 |
Summary for Allocation of Stock-Based Compensation Expense | The following table summarizes the allocation of stock-based compensation expense (in thousands): Three Months Ended March 31, 2018 2017 Cost of sales $ 165 $ 229 Selling, general & administrative 912 2,461 Research and development 115 274 Total $ 1,192 $ 2,964 |
Organization and Basis of Pre21
Organization and Basis of Presentation - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | |
Organization And Basis Of Presentation [Line Items] | |||
Operating losses and accumulated deficit | $ (510,157) | $ (477,613) | |
Net loss | (32,693) | $ (23,792) | |
Cash and cash equivalents and short-term investments including restricted cash | 81,900 | ||
Restricted cash | $ 10,000 | $ 10,000 | |
Insulin Pump [Member] | Minimum [Member] | |||
Organization And Basis Of Presentation [Line Items] | |||
Expected life span term | 4 years | ||
T:slim X2 [Member] | |||
Organization And Basis Of Presentation [Line Items] | |||
Percentage of new pump shipments represented by product hardware platform | 100.00% |
Summary of Significant Accoun22
Summary of Significant Accounting Policies - Additional Information (Detail) | 3 Months Ended | ||
Mar. 31, 2018USD ($)Segment | Jan. 01, 2018USD ($) | Dec. 31, 2017USD ($) | |
Summary Of Significant Accounting Policies [Line Items] | |||
Number of operating segments | Segment | 1 | ||
Offered period for sales return | 30 days | ||
Allowance for product returns | $ 200,000 | $ 200,000 | |
Warranty reserve | 6,086,000 | 5,640,000 | |
Warranty reserves [Member] | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Warranty reserve | 6,100,000 | 5,600,000 | |
Complementary products [Member] | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Deferred revenue | $ 2,100,000 | 2,000,000 | |
Revenue performance obligations satisfied over period | 4 years | ||
Tandem Pump [Member] | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Warranty period offered | 4 years | ||
Slim cartridges and infusion sets [Member] | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Warranty period offered | 6 months | ||
ASU 2014-09: Revenue from Contracts with Customers [Member] | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Net reduction to accumulated deficit | $ 149,000 | ||
Term Loan Agreement [Member] | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Restricted cash | $ 10,000,000 | $ 10,000,000 |
Summary of Significant Accoun23
Summary of Significant Accounting Policies - Summary of Reconciliation of Change in Product Warranty Liabilities (Detail) $ in Thousands | 3 Months Ended |
Mar. 31, 2018USD ($) | |
Movement In Standard And Extended Product Warranty Increase Decrease Roll Forward | |
Beginning balance | $ 5,640 |
Provision for warranties issued during the period | 1,672 |
Settlements made during the period | (1,836) |
Increases in warranty estimates | 610 |
Ending balance | 6,086 |
Current portion | 2,803 |
Non-current portion | $ 3,283 |
Summary of Significant Accoun24
Summary of Significant Accounting Policies - Schedule of Anti-Dilutive Securities (Detail) - shares shares in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of earnings per share, amount | 7,742 | 164 |
Warrants for common stock [Member] | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of earnings per share, amount | 7,323 | |
Common stock options [Member] | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of earnings per share, amount | 419 | 125 |
ESPP [Member] | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of earnings per share, amount | 39 |
Short-Term Investments - Summar
Short-Term Investments - Summary of Estimated Fair Value of Short-Term Investments (Detail) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Cash Cash Equivalents And Short Term Investments [Line Items] | ||
Short-term investments, Amortized Cost | $ 9,296 | $ 459 |
Short-term investments, Unrealized Gain | 20 | |
Short-term investments, Unrealized Loss | (1) | |
Short-term investments, Estimated Fair Value | 9,295 | 479 |
Commercial paper [Member] | ||
Cash Cash Equivalents And Short Term Investments [Line Items] | ||
Available-for-sale investment securities, Amortized Cost | 8,941 | |
Available-for-sale investment securities, Unrealized Gain | 1 | |
Available-for-sale investment securities, Unrealized Loss | (1) | |
Available-for-sale investment securities, Estimated Fair Value | 8,941 | |
Trading securities — mutual funds held for nonqualified deferred compensation plan participants [Member] | ||
Cash Cash Equivalents And Short Term Investments [Line Items] | ||
Trading securities, Amortized Cost | 355 | 459 |
Trading securities, Unrealized Gain | (1) | 20 |
Trading securities, Estimated Fair Value | $ 354 | $ 479 |
Inventory - Summary of Inventor
Inventory - Summary of Inventory (Detail) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 10,395 | $ 10,328 |
Work in process | 3,761 | 3,812 |
Finished goods | 12,330 | 12,853 |
Total | $ 26,486 | $ 26,993 |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule of Financial Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Total assets | $ 74,004 | $ 24,179 |
Total liabilities | 18,415 | 5,911 |
Cash equivalents [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Total assets | 64,709 | 23,700 |
Commercial paper [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Total assets | 8,941 | |
Mutual funds held for nonqualified deferred compensation plan participants [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Total assets | 354 | 479 |
Warrants for common stock [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Total liabilities | 18,061 | 5,432 |
Deferred compensation [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Total liabilities | 354 | 479 |
Level 1 [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Total assets | 65,063 | 24,179 |
Total liabilities | 354 | 479 |
Level 1 [Member] | Cash equivalents [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Total assets | 64,709 | 23,700 |
Level 1 [Member] | Mutual funds held for nonqualified deferred compensation plan participants [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Total assets | 354 | 479 |
Level 1 [Member] | Deferred compensation [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Total liabilities | 354 | 479 |
Level 2 [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Total assets | 8,941 | |
Level 2 [Member] | Commercial paper [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Total assets | 8,941 | |
Level 3 [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Total liabilities | 18,061 | 5,432 |
Level 3 [Member] | Warrants for common stock [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Total liabilities | $ 18,061 | $ 5,432 |
Fair Value Measurements - Sch28
Fair Value Measurements - Schedule of Financial Assets and Liabilities Measured at Fair Value on Recurring Basis (Parenthetical) (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2018 | Dec. 31, 2017 | |
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Restricted cash - long term | $ 10,000 | $ 10,000 |
Maximum [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Cash equivalents maturity term | 3 months | 3 months |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Detail) - USD ($) | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2018 | Dec. 31, 2017 | Oct. 31, 2017 | |
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | |||
Transfer between level 1 and level 2 assets | $ 0 | ||
Warrants initial value | $ 6,500,000 | $ 6,500,000 | |
Series A warrants [Member] | Secondary Public Offering [Member] | |||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | |||
Warrants issue to purchase common stock | 4,630,000 | 4,630,000 | 4,630,000 |
Public offering period | 5 years | 5 years | |
Warrants exercise price | $ 3.50 | $ 3.50 | |
Series B warrants [Member] | Secondary Public Offering [Member] | |||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | |||
Warrants issue to purchase common stock | 4,630,000 | 4,630,000 | 4,630,000 |
Public offering period | 6 months | 6 months | |
Warrants exercise price | $ 3.50 | $ 3.50 | |
Series A and B warrants [Member] | |||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | |||
Warrants issue to purchase common stock | 1,936,565 | ||
Outstanding warrants | 7,323,435 |
Fair Value Measurements - Sch30
Fair Value Measurements - Schedule of Assumptions Used to Estimate Fair Values of Common Stock Warrants (Detail) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2018 | Dec. 31, 2017 | |
Series A Warrants [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items] | ||
Risk-free interest rate | 2.60% | 2.20% |
Expected dividend yield | 0.00% | 0.00% |
Expected volatility | 65.20% | 63.50% |
Expected term (in years) | 4 years 7 months 6 days | 4 years 9 months 18 days |
Series B Warrants [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items] | ||
Risk-free interest rate | 1.60% | 1.40% |
Expected dividend yield | 0.00% | 0.00% |
Expected volatility | 42.80% | 80.30% |
Expected term (in years) | 1 month 6 days | 3 months 18 days |
Fair Value Measurements - Summa
Fair Value Measurements - Summary of Changes in Fair Value of Total Level 3 Financial Assets (Detail) $ in Thousands | 3 Months Ended |
Mar. 31, 2018USD ($) | |
Fair Value Liabilities Measured On Recurring Basis Unobservable Input Reconciliation Calculation Roll Forward | |
Balance at December 31, 2017 | $ 5,432 |
Decrease in fair value from warrants exercised during the period | (1,599) |
Increase in fair value included in change in fair value of common stock warrants | 14,228 |
Balance at March 31, 2018 | $ 18,061 |
Term Loan Agreement - Additiona
Term Loan Agreement - Additional Information (Detail) - USD ($) | 1 Months Ended | 3 Months Ended | 27 Months Ended | |||||
Feb. 28, 2018 | Mar. 31, 2017 | Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Oct. 01, 2015 | Sep. 30, 2015 | |
Debt Instrument [Line Items] | ||||||||
Loan outstanding | $ 82,700,000 | |||||||
Compounded interest payable | 2.00% | |||||||
Additional amount borrowed | $ 405,000 | 2,700,000 | ||||||
Minimum annual revenues attainable in 2017 | $ 95,000,000 | |||||||
Minimum annual revenues attainable after 2017 | 95,000,000 | |||||||
Term Loan Agreement [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Loan outstanding | $ 82,700,000 | 82,700,000 | ||||||
Interest rate | 11.50% | 11.50% | ||||||
Interest payable as cash | 9.50% | 9.50% | ||||||
Compounded interest payable | 2.00% | |||||||
Interest-only payments description | Under the Term Loan Agreement, interest is payable at the Company’s option, (i) in cash at a rate of 11.5% per annum, or (ii) at a rate of 9.5% of the 11.5% per annum in cash and 2.0% of the 11.5% per annum (the “PIK Loan”) to be added to the principal of the loan and subject to accruing interest. Interest-only payments are due quarterly on March 31, June 30, September 30 and December 31 of each year of the interest-only payment period, which ends on December 31, 2019. | |||||||
Maturity date for interest-only payment | Dec. 31, 2019 | |||||||
Maturity date for principal balance | Mar. 31, 2020 | |||||||
Minimum cash balance | $ 10,000,000 | $ 10,000,000 | $ 2,000,000 | |||||
Third Amendment [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Percentage of financing fee | 3.00% | |||||||
Line of credit facility amount borrowed | $ 50,000,000 | |||||||
Third Amendment [Member] | Other Long Term Liabilities And As Contra-Debt In Notes Payable-Long Term [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Accrued back end financing fee | $ 5,000,000 | $ 4,100,000 | ||||||
Fourth Amendment [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Warrants life | 10 years | |||||||
Warrants issue to purchase common stock | 193,788 | 193,788 | ||||||
Warrants exercise price | $ 23.50 | $ 23.50 | ||||||
Prepayment fee percentage | 5.00% | |||||||
Present value of the future cash flows | 10.00% | |||||||
Fifth Amendment [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Prepayment fee percentage | 6.00% | |||||||
Equity finance completion last date | Aug. 30, 2018 | |||||||
Fifth Amendment [Member] | Minimum [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Gross proceeds from sale of equity securities on event of default occurred due to going concern qualification | $ 20,000,000 |
Stockholders' Equity - Addition
Stockholders' Equity - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||
Apr. 17, 2018 | Oct. 31, 2017 | Mar. 31, 2018 | Sep. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2017 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Gross proceeds from secondary public offering | $ 16,200 | $ 69,000 | $ 23,100 | |||
Gross proceeds from exercise of warrants | 6,512 | |||||
Total stock-based compensation expense capitalized as part of cost of inventory | $ 100 | $ 200 | ||||
Common stock options [Member] | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Common stock shares issued | 0 | 24,406 | ||||
Series B warrants [Member] | Subsequent Event [Member] | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Gross proceeds from exercise of warrants | $ 11,300 | |||||
Warrants exercised | 3,432,555 | |||||
Series A and B warrants [Member] | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Warrants issue to purchase common stock | 1,936,565 | |||||
Gross proceeds from exercise of warrants | $ 6,500 | |||||
Warrants for common stock [Member] | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Common stock shares issued | 0 | |||||
Secondary Public Offering [Member] | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Shares offered for public offering | 4,630,000 | 34,500,000 | 1,850,000 | |||
Shares offering price per share | $ 3.50 | $ 2 | $ 12.50 | |||
Secondary Public Offering [Member] | Series A warrants [Member] | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Warrants issue to purchase common stock | 4,630,000 | 4,630,000 | 4,630,000 | |||
Secondary Public Offering [Member] | Series B warrants [Member] | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Warrants issue to purchase common stock | 4,630,000 | 4,630,000 | 4,630,000 | |||
At The Market Offering Program [Member] | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Proceeds from secondary public offering | $ 4,300 | |||||
At The Market Offering Program [Member] | Common Stock [Member] | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Shares offered for public offering | 464,108 | |||||
At The Market Offering Program [Member] | Common Stock [Member] | Minimum [Member] | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Shares offering price per share | $ 5.64 | |||||
At The Market Offering Program [Member] | Common Stock [Member] | Maximum [Member] | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Shares offering price per share | $ 10.54 | |||||
ESPP [Member] | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Purchase of common stock under ESPP | 0 | 38,929 | ||||
Offering Period | 2 years | |||||
Purchase Period | four six-month |
Stockholders' Equity - Schedule
Stockholders' Equity - Schedule of Shares of Common Stock Reserved for Future Issuance (Detail) shares in Thousands | Mar. 31, 2018shares |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Common stock reserved for future issuance | 9,081 |
Shares underlying outstanding warrants [Member] | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Common stock reserved for future issuance | 7,616 |
Shares underlying outstanding stock options [Member] | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Common stock reserved for future issuance | 1,267 |
Shares authorized for future equity award grants [Member] | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Common stock reserved for future issuance | 97 |
Shares authorized for issuance as ESPP awards [Member] | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Common stock reserved for future issuance | 101 |
Stockholders' Equity - Schedu35
Stockholders' Equity - Schedule of Assumptions Used in Black-Scholes Option-Pricing Model (Detail) - Employee Stock Option [Member] - $ / shares | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Weighted average grant date fair value (per share) | $ 1.86 | $ 12.50 |
Risk-free interest rate | 2.70% | 2.10% |
Expected dividend yield | 0.00% | 0.00% |
Expected volatility | 61.40% | 59.30% |
Expected term (in years) | 6 years 1 month 6 days | 6 years 1 month 6 days |
Stockholders' Equity - Summary
Stockholders' Equity - Summary for Allocation of Stock-Based Compensation Expense (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Compensation cost | $ 1,192 | $ 2,964 |
Cost of sales [Member] | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Compensation cost | 165 | 229 |
Selling, general & administrative [Member] | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Compensation cost | 912 | 2,461 |
Research and development [Member] | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Compensation cost | $ 115 | $ 274 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) - LegalMatter | 3 Months Ended | 12 Months Ended |
Mar. 31, 2018 | Dec. 31, 2017 | |
Commitments And Contingencies Disclosure [Abstract] | ||
Number of legal proceedings, regulatory encounters or other matters | 0 | 0 |