Document_and_Entity_Informatio
Document and Entity Information | 9 Months Ended | |
Sep. 30, 2013 | Nov. 01, 2013 | |
Document And Entity Information [Abstract] | ' | ' |
Document Type | '10-Q | ' |
Amendment Flag | 'false | ' |
Document Period End Date | 30-Sep-13 | ' |
Document Fiscal Year Focus | '2013 | ' |
Document Fiscal Period Focus | 'Q3 | ' |
Trading Symbol | 'MBII | ' |
Entity Registrant Name | 'MARRONE BIO INNOVATIONS INC | ' |
Entity Central Index Key | '0001441693 | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Filer Category | 'Non-accelerated Filer | ' |
Entity Common Stock, Shares Outstanding | ' | 19,207,690 |
Condensed_Consolidated_Balance
Condensed Consolidated Balance Sheets (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Current assets: | ' | ' |
Cash and cash equivalents | $40,775 | $10,006 |
Restricted cash | ' | 9,139 |
Short-term investments | 12,684 | ' |
Accounts receivable | 2,050 | 2,970 |
Inventories | 10,754 | 4,872 |
Prepaid expenses and other current assets | 2,357 | 478 |
Total current assets | 68,620 | 27,465 |
Property, plant and equipment, net | 5,726 | 3,528 |
Other assets | 1,057 | 2,785 |
Total assets | 75,403 | 33,778 |
Current liabilities: | ' | ' |
Accounts payable | 5,125 | 2,104 |
Accrued liabilities | 2,973 | 3,023 |
Deferred revenue, current portion | 1,094 | 324 |
Capital lease obligations, current portion | 782 | 207 |
Debt, current portion | 177 | 8,572 |
Convertible notes payable, current portion | ' | 22,518 |
Total current liabilities | 10,151 | 38,933 |
Deferred revenue, less current portion | 1,453 | 1,696 |
Capital lease obligations, less current portion | 538 | 195 |
Debt, less current portion | 12,261 | 7,766 |
Convertible notes payable, less current portion | ' | 19,342 |
Other liabilities | 569 | 481 |
Total liabilities | 24,972 | 68,413 |
Commitments and contingencies (Note 13) | ' | ' |
Preferred stock | ' | ' |
Stockholders' deficit: | ' | ' |
Common stock: $0.00001 par value; 250,000 shares authorized and 19,199 shares issued and outstanding at September 30, 2013; 12,936 shares authorized and 1,267 shares issued and outstanding at December 31, 2012 | ' | ' |
Additional paid-in capital | 145,876 | 1,322 |
Accumulated deficit | -95,445 | -75,569 |
Total stockholders' equity (deficit) | 50,431 | -74,247 |
Total liabilities, convertible preferred stock and stockholders' equity (deficit) | 75,403 | 33,778 |
Convertible preferred stock - Series A [Member] | ' | ' |
Current liabilities: | ' | ' |
Preferred stock | ' | 3,747 |
Convertible preferred stock - Series B [Member] | ' | ' |
Current liabilities: | ' | ' |
Preferred stock | ' | 10,758 |
Convertible preferred stock - Series C [Member] | ' | ' |
Current liabilities: | ' | ' |
Preferred stock | ' | 25,107 |
Preferred stock [Member] | ' | ' |
Current liabilities: | ' | ' |
Warrant liability | ' | 1,884 |
Common stock [Member] | ' | ' |
Current liabilities: | ' | ' |
Warrant liability | ' | $301 |
Condensed_Consolidated_Balance1
Condensed Consolidated Balance Sheets (Parenthetical) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
Preferred stock, par value | $0.00 | ' |
Preferred stock, shares authorized | 20,000,000 | ' |
Common stock, par value | $0.00 | ' |
Common stock, shares authorized | 250,000,000 | 12,936,000 |
Common stock, shares issued | 19,199,000 | 1,267,000 |
Common stock, shares outstanding | 19,199,000 | 1,267,000 |
Convertible preferred stock - Series A [Member] | ' | ' |
Preferred stock, par value | $0.00 | ' |
Preferred stock, shares authorized | ' | 1,489,000 |
Preferred stock, shares issued | ' | 1,484,000 |
Preferred stock, shares outstanding | ' | 1,484,000 |
Convertible preferred stock - Series B [Member] | ' | ' |
Preferred stock, par value | $0.00 | ' |
Preferred stock, shares authorized | ' | 2,252,000 |
Preferred stock, shares issued | ' | 2,242,000 |
Preferred stock, shares outstanding | ' | 2,242,000 |
Convertible preferred stock - Series C [Member] | ' | ' |
Preferred stock, par value | $0.00 | ' |
Preferred stock, shares authorized | ' | 5,082,000 |
Preferred stock, shares issued | ' | 4,778,000 |
Preferred stock, shares outstanding | ' | 4,778,000 |
Condensed_Consolidated_Stateme
Condensed Consolidated Statements of Operations (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Revenues: | ' | ' | ' | ' |
Product | $1,265 | $662 | $8,333 | $4,039 |
License | 81 | 76 | 243 | 207 |
Total revenues | 1,346 | 738 | 8,576 | 4,246 |
Cost of product revenues | 1,077 | 521 | 6,270 | 2,065 |
Gross profit | 269 | 217 | 2,306 | 2,181 |
Operating expenses: | ' | ' | ' | ' |
Research and development | 4,454 | 3,350 | 11,678 | 8,498 |
Selling, general and administrative | 4,493 | 2,617 | 10,447 | 7,105 |
Total operating expenses | 8,947 | 5,967 | 22,125 | 15,603 |
Loss from operations | -8,678 | -5,750 | -19,819 | -13,422 |
Other income (expense): | ' | ' | ' | ' |
Interest income | 24 | 10 | 25 | 16 |
Interest expense | -1,119 | -593 | -5,389 | -1,250 |
Change in estimated fair value of financial instruments | 3,730 | -7,473 | 6,717 | -7,053 |
Gain on extinguishment of debt | ' | ' | 49 | ' |
Other (expense) income, net | -67 | 4 | -81 | 11 |
Total other income (expense), net | 2,568 | -8,052 | 1,321 | -8,276 |
Loss before income taxes | -6,110 | -13,802 | -18,498 | -21,698 |
Income taxes | ' | ' | ' | ' |
Net loss | -6,110 | -13,802 | -18,498 | -21,698 |
Deemed dividend on convertible notes | ' | ' | -1,378 | -1,253 |
Net loss attributable to common stockholders | ($6,110) | ($13,802) | ($19,876) | ($22,951) |
Net loss per common share: | ' | ' | ' | ' |
Basic | ($0.47) | ($10.94) | ($3.83) | ($18.32) |
Diluted | ($0.53) | ($10.94) | ($3.86) | ($18.32) |
Weighted-average shares outstanding used in computing net loss per common share: | ' | ' | ' | ' |
Basic | 12,888 | 1,262 | 5,187 | 1,253 |
Diluted | 14,017 | 1,262 | 5,229 | 1,253 |
Condensed_Consolidated_Stateme1
Condensed Consolidated Statements of Comprehensive Loss (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Amounts Reclassified Out Of Accumulated Other Comprehensive Income Loss [Abstract] | ' | ' | ' | ' |
Net loss | ($6,110) | ($13,802) | ($18,498) | ($21,698) |
Other comprehensive loss | ' | ' | ' | ' |
Comprehensive loss | ($6,110) | ($13,802) | ($18,498) | ($21,698) |
Condensed_Consolidated_Stateme2
Condensed Consolidated Statement of Convertible Preferred Stock and Stockholders' Equity (Deficit) (USD $) | Total | Common stock [Member] | Additional paid-in capital [Member] | Accumulated deficit [Member] | Convertible preferred stock [Member] | Convertible preferred stock [Member] | Convertible preferred stock [Member] | Convertible preferred stock [Member] |
Series A [Member] | Series B [Member] | Series C [Member] | ||||||
Beginning balance at Dec. 31, 2012 | ($74,247,000) | ' | $1,322,000 | ($75,569,000) | $39,612,000 | $3,747,000 | $10,758,000 | $25,107,000 |
Beginning balance, shares at Dec. 31, 2012 | ' | 1,267,000 | ' | ' | 8,504,000 | 1,484,000 | 2,242,000 | 4,778,000 |
Net loss | -18,498,000 | ' | ' | -18,498,000 | ' | ' | ' | ' |
Exercise of stock options, shares | 93,000 | 93,000 | ' | ' | ' | ' | ' | ' |
Exercise of stock options | 81,000 | ' | 81,000 | ' | ' | ' | ' | ' |
Share-based compensation | 1,125,000 | ' | 1,125,000 | ' | ' | ' | ' | ' |
Deemed dividend, convertible notes | -1,378,000 | ' | ' | -1,378,000 | ' | ' | ' | ' |
Cash exercise of preferred stock warrants, shares | ' | ' | ' | ' | 10,000 | ' | 10,000 | ' |
Cash exercise of preferred stock warrants | ' | ' | ' | ' | 47,000 | ' | 47,000 | ' |
Net exercise of preferred stock warrants, shares | ' | 71,000 | ' | ' | ' | ' | ' | ' |
Net exercise of preferred stock warrants | ' | ' | ' | ' | ' | ' | ' | ' |
Conversion of preferred stock into common stock, shares | ' | 8,514,000 | ' | ' | -8,514,000 | -1,484,000 | -2,252,000 | -4,778,000 |
Conversion of preferred stock into common stock | 39,659,000 | ' | 39,659,000 | ' | -39,659,000 | -3,747,000 | -10,805,000 | -25,107,000 |
Convertible notes converted into common stock, shares | ' | 3,741,000 | ' | ' | ' | ' | ' | ' |
Convertible notes converted into common stock | 44,890,000 | ' | 44,890,000 | ' | ' | ' | ' | ' |
Cash exercise of common stock warrants, shares | ' | 3,000 | ' | ' | ' | ' | ' | ' |
Cash exercise of common stock warrants | 25,000 | ' | 25,000 | ' | ' | ' | ' | ' |
Net exercise of common stock warrants, shares | ' | 47,000 | ' | ' | ' | ' | ' | ' |
Net exercise of common stock warrants | ' | ' | ' | ' | ' | ' | ' | ' |
Reclassification of warrants from liability to equity | 2,669,000 | ' | 2,669,000 | ' | ' | ' | ' | ' |
Issuance of common stock upon initial public offering, net of offering costs and underwriter commission, shares | ' | 5,463,000 | ' | ' | ' | ' | ' | ' |
Issuance of common stock upon initial public offering, net of offering costs and underwriter commission | 56,105,000 | ' | 56,105,000 | ' | ' | ' | ' | ' |
Ending balance at Sep. 30, 2013 | $50,431,000 | ' | $145,876,000 | ($95,445,000) | ' | ' | ' | ' |
Ending balance, shares at Sep. 30, 2013 | ' | 19,199,000 | ' | ' | 0 | 0 | 0 | 0 |
Condensed_Consolidated_Stateme3
Condensed Consolidated Statements of Cash Flows (USD $) | 9 Months Ended | |
Sep. 30, 2013 | Sep. 30, 2012 | |
Cash flows from operating activities | ' | ' |
Net loss | ($18,498,000) | ($21,698,000) |
Adjustments to reconcile net loss to net cash used in operating activities: | ' | ' |
Depreciation and amortization | 594,000 | 447,000 |
Loss on disposal of equipment | 47,000 | ' |
Share-based compensation | 1,125,000 | 466,000 |
Noncash interest expense | 4,068,000 | 546,000 |
Change in estimated fair value of financial instruments | -6,717,000 | 7,053,000 |
Gain on extinguishment of debt | -49,000 | ' |
Amortization of investment securities premiums/discounts, net | 4,000 | ' |
Net changes in operating assets and liabilities: | ' | ' |
Accounts receivable | 920,000 | -52,000 |
Inventories | -5,882,000 | -2,362,000 |
Prepaid expenses and other current assets | -1,413,000 | -52,000 |
Other assets | 1,922,000 | -1,784,000 |
Accounts payable | 3,021,000 | 1,485,000 |
Accrued liabilities | -50,000 | -157,000 |
Deferred revenue | 527,000 | 792,000 |
Other liabilities | -37,000 | -15,000 |
Net cash used in operating activities | -20,418,000 | -15,331,000 |
Cash flows from investing activities | ' | ' |
Purchases of property, plant and equipment | -2,238,000 | -2,149,000 |
Proceeds from sale of equipment | 16,000 | ' |
Purchase of short-term investments | -12,688,000 | ' |
Maturities of short-term investments | ' | 2,000,000 |
Net cash used in investing activities | -14,910,000 | -149,000 |
Cash flows from financing activities | ' | ' |
Proceeds from initial public offering, net of offering costs and underwriter commissions | 56,105,000 | ' |
Proceeds from issuance of convertible notes payable | 6,529,000 | 8,075,000 |
Proceeds from issuance of debt | 3,700,000 | 9,875,000 |
Proceeds from line of credit | ' | 500,000 |
Repayment of line of credit | ' | -500,000 |
Repayment of debt | -9,367,000 | -708,000 |
Repayment of capital leases | -162,000 | -122,000 |
Proceeds from secured borrowing | 2,880,000 | ' |
Reductions in secured borrowing | -2,880,000 | ' |
Change in restricted cash | 9,139,000 | ' |
Proceeds from exercise of stock options | 81,000 | 22,000 |
Proceeds from exercise of preferred stock warrants | 47,000 | ' |
Proceeds from exercise of common stock warrants | 25,000 | ' |
Net cash provided by financing activities | 66,097,000 | 17,142,000 |
Net increase in cash and cash equivalents | 30,769,000 | 1,662,000 |
Cash and cash equivalents, beginning of year | 10,006,000 | 2,215,000 |
Cash and cash equivalents, end of period | 40,775,000 | 3,877,000 |
Supplemental disclosure of cash flow information | ' | ' |
Cash paid for interest, net of capitalized interest of $450 and $43 for the nine months ended September 30, 2013 and 2012, respectively. | 1,321,000 | 703,000 |
Supplemental disclosure of noncash investing and financing activities | ' | ' |
Equipment acquired under capital leases | 617,000 | 102,000 |
Interest added to the principal of convertible notes | 1,623,000 | ' |
Reclassification of warrants from liabilities to equity | 2,669,000 | ' |
Conversion of convertible notes to common stock | 44,890,000 | ' |
Conversion of preferred stock to common stock | $39,659,000 | ' |
Condensed_Consolidated_Stateme4
Condensed Consolidated Statements of Cash Flows (Parenthetical) (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 |
Statement Of Cash Flows [Abstract] | ' | ' |
Cash paid for interest, net of capitalized interest | $450 | $43 |
Summary_of_Business
Summary of Business | 9 Months Ended |
Sep. 30, 2013 | |
Accounting Policies [Abstract] | ' |
Summary of Business | ' |
1. Summary of Business | |
Marrone Bio Innovations, Inc. (Company), formerly Marrone Organic Innovations, Inc., was incorporated under the laws of the State of Delaware on June 15, 2006, and is located in Davis, California. In July 2012, the Company formed a wholly-owned subsidiary, Marrone Michigan Manufacturing LLC (MMM LLC), a Michigan corporation, which holds the assets of a manufacturing plant the Company purchased in July 2012 as discussed in Note 2. The Company makes bio-based pest management and plant health products. The Company targets the major markets that use conventional chemical pesticides, including certain agricultural and water markets where its bio-based products are used as substitutes for, or in conjunction with, conventional chemical pesticides. The Company also targets new markets for which there are no available conventional chemical pesticides, the use of conventional chemical pesticides may not be desirable or permissible, or the development of pest resistance has reduced the efficacy of conventional chemical pesticides. The Company delivers EPA-approved and registered biopesticide products and other bio-based products that address the global demand for effective, safe and environmentally responsible products. | |
The Company has filed a prospectus pursuant to Rule 424(b) under the Securities and Exchange Act, (hereafter referred to as the “Prospectus”) with the U.S. Securities and Exchange Commission (SEC) dated August 1, 2013. These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and the notes thereto for the year ended December 31, 2012 included in the Prospectus. | |
In August 2013, the Company closed its initial public offering of 5,462,500 shares of its common stock (inclusive of 712,500 shares of common stock sold upon the exercise of the underwriters’ option to purchase additional shares) (IPO). The public offering price of the shares sold in the offering was $12.00 per share. The total gross proceeds from the offering to the Company were $65,550,000, and after deducting underwriting discounts and commissions and offering expenses payable by the Company, the aggregate net proceeds received by the Company totaled approximately $56,105,000. Upon the closing of the IPO, all shares of the Company’s outstanding convertible preferred stock and convertible notes automatically converted into shares of common stock and outstanding warrants to purchase convertible preferred stock and certain warrants to purchase common stock were exercised into shares of common stock (See Note 15). | |
The Company is an early stage company with a limited operating history and has only recently begun commercializing its products. As of September 30, 2013, the Company had an accumulated deficit of $95,445,000 and expects to incur losses for the next several years. Until the IPO in August 2013, the Company had funded operations primarily with the net proceeds from the private placements of convertible preferred stock, convertible notes, promissory notes, term loans, as well as proceeds from the sale of its products and payments under strategic collaboration agreements and government grants. The Company will need to generate significant revenue to achieve and maintain profitability. As of September 30, 2013, the Company had working capital of $58,469,000, cash and cash equivalents of $40,775,000, and short-term investments of $12,684,000. | |
On August 1, 2013, the Company amended and restated its certificate of incorporation to effect a reverse split of shares of its common stock at a 1-for-3.138458 ratio (See Note 14). | |
The Company participates in a heavily regulated and highly competitive crop protection industry and believes that adverse changes in any of the following areas could have a material effect on the Company’s future financial position, results of operations, or cash flows: inability to obtain regulatory approvals, increased competition in the pesticide market, market acceptance of the Company’s products, weather and other seasonal factors beyond the Company’s control, litigation or claims against the Company based on intellectual property, patent, product, regulatory or other factors, and the Company’s ability to support increased growth. |
Significant_Accounting_Policie
Significant Accounting Policies | 9 Months Ended | ||||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||||
Accounting Policies [Abstract] | ' | ||||||||||||||||||||||||
Significant Accounting Policies | ' | ||||||||||||||||||||||||
2. Significant Accounting Policies | |||||||||||||||||||||||||
Basis of Presentation | |||||||||||||||||||||||||
The condensed consolidated financial statements include the accounts of the Company and its wholly-owned subsidiary. All significant intercompany balances and transactions have been eliminated in consolidation. | |||||||||||||||||||||||||
The accompanying financial information as of September 30, 2013 and for the three and nine months ended September 30, 2013 and 2012 has been prepared by the Company, without audit, pursuant to the rules and regulations of the SEC. Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States (U.S.) have been condensed or omitted pursuant to such rules and regulations. The December 31, 2012 consolidated balance sheet was derived from audited consolidated financial statements, but does not include all disclosures required by accounting principles generally accepted in the U.S. However, the Company believes that the disclosures are adequate to make the information presented not misleading. These condensed consolidated financial statements should be read in conjunction with the annual consolidated financial statements and the notes thereto, included in the Prospectus. | |||||||||||||||||||||||||
In the opinion of management, the condensed consolidated financial statements as of September 30, 2013 and for the three and nine months ended September 30, 2013 and 2012 reflect all adjustments, which are normal recurring adjustments, necessary to present a fair statement of financial position, results of operations, comprehensive loss, convertible preferred stock and stockholders’ equity (deficit) and cash flows. The results of operations for the three and nine months ended September 30, 2013 are not necessarily indicative of the operating results for the full fiscal year or any future periods. | |||||||||||||||||||||||||
Cash and Cash Equivalents | |||||||||||||||||||||||||
The Company considers all highly liquid financial instruments purchased with a maturity of three months or less to be cash equivalents. Cash and cash equivalents consist of cash on deposit, money market funds and certificates of deposit accounts (CDs) with U.S. financial institutions. The Company is exposed to credit risk in the event of default by financial institutions to the extent that cash and cash equivalents balances with financial institutions are in excess of amounts that are insured by the Federal Deposit Insurance Corporation. The Company has not experienced any losses on these deposits. | |||||||||||||||||||||||||
Short-Term Investments | |||||||||||||||||||||||||
The Company’s short-term investments consist of certificates of deposit with original maturities less than one year but greater than three months which are classified as held-to-maturity. Certificates of deposit are stated at their amortized cost with realized gains or losses, if any, reported as other income or expenses in the condensed consolidated statements of operations. The Company routinely evaluates the realizability of its short-term investments and recognizes an impairment charge when a decline in the estimated fair value of a short-term investment is below the amortized cost and determined to be other-than-temporary. The Company considers various factors in determining whether to recognize an impairment charge, including the duration of time and the severity to which the fair value has been less than amortized cost, any adverse changes in the investee’s financial condition, and the Company’s intent and ability to hold the short-term investment for a period of time sufficient to allow for any anticipated recovery in market value. To date, the Company has not experienced any losses on its short-term investments. | |||||||||||||||||||||||||
Concentration of Credit Risk | |||||||||||||||||||||||||
Financial instruments that potentially subject the Company to concentrations of credit risk consist principally of cash, cash equivalents, short-term investments, accounts receivable and debt. The Company deposits its cash, cash equivalents and short-term investments with high credit quality domestic financial institutions with locations in the U.S. Such deposits may exceed federal deposit insurance limits. The Company believes the financial risks associated with these financial instruments are minimal. | |||||||||||||||||||||||||
The Company’s customer base is dispersed across many different geographic areas, and currently most customers are pest management distributors in the U.S. Generally, receivables are due 30 to 90 days from the invoice date and are considered past due after this date, although the Company may offer extended terms from time to time. | |||||||||||||||||||||||||
For the three months ended September 30, 2013 and 2012, 27% and 5%, respectively, of the Company’s revenues were generated from international customers. For the nine months ended September 30, 2013 and 2012, 11% and 16%, respectively, of the Company’s revenues were generated from international customers. | |||||||||||||||||||||||||
From inception through December 31, 2012, the Company’s principal source of revenues was its Regalia product line. During the three and nine months ended September 30, 2013, Grandevo and Regalia were the principal sources of the Company’s total revenues. For the three months ended September 30, 2013 and 2012, these two product lines accounted for 94% and 86%, respectively, of the Company’s total revenues. For the nine months ended September 30, 2013 and 2012, these two product lines accounted for 97% and 92%, respectively, of the Company’s total revenues. | |||||||||||||||||||||||||
Customers with 10% or more of the Company’s total revenues consist of the following: | |||||||||||||||||||||||||
Customer | Customer | Customer | Customer | Customer | Customer | ||||||||||||||||||||
A | B | C | D | E | F | ||||||||||||||||||||
For the three months ended September 30, | |||||||||||||||||||||||||
2013 | 18 | % | 17 | % | * | * | * | 10 | % | ||||||||||||||||
2012 | 35 | % | * | 16 | % | 13 | % | * | 12 | % | |||||||||||||||
For the nine months ended September 30, | |||||||||||||||||||||||||
2013 | 39 | % | * | * | * | * | * | ||||||||||||||||||
2012 | 36 | % | * | 14 | % | * | 11 | % | * | ||||||||||||||||
* | Represents less than 10% of total revenues | ||||||||||||||||||||||||
Customers with 10% or more of the Company’s outstanding accounts receivable consist of the following: | |||||||||||||||||||||||||
Customer A | Customer B | Customer C | Customer D | Customer E | |||||||||||||||||||||
September 30, 2013 | * | * | 22 | % | * | 37 | % | ||||||||||||||||||
December 31, 2012 | 33 | % | 17 | % | 11 | % | 11 | % | * | ||||||||||||||||
* | Represents less than 10% of accounts receivable | ||||||||||||||||||||||||
Inventories | |||||||||||||||||||||||||
Inventories are stated at the lower of cost or market value (net realizable value or replacement cost) and include the cost of material and external labor and manufacturing costs. Cost is determined on the first-in, first-out basis. The Company provides for inventory reserves when conditions indicate that the selling price may be less than cost due to physical deterioration, obsolescence, changes in price levels, or other factors. Additionally, the Company provides reserves for excess and slow-moving inventory on hand that is not expected to be sold to reduce the carrying amount of excess slow-moving inventory to its estimated net realizable value. The reserves are based upon estimates about future demand from the Company’s customers and distributors and market conditions. As of September 30, 2013 and December 31, 2012, the Company had no reserves against its inventories. | |||||||||||||||||||||||||
Deferred Cost of Product Revenues | |||||||||||||||||||||||||
Deferred cost of product revenues are stated at the lower of cost or net realizable value and include product sold where title has transferred but the criteria for revenue recognition have not been met. As of September 30, 2013, the Company recorded current deferred cost of product revenues of $357,000 which is included in prepaid expenses and other current assets in the condensed consolidated balance sheet. As of December 31, 2012, the Company had no deferred cost of product revenues. During the three and nine months ended September 30, 2013, the company recorded an adjustment of $167,000 to write down the carrying value of deferred cost of product revenues to net realizable value. | |||||||||||||||||||||||||
Acquisition | |||||||||||||||||||||||||
On July 19, 2012 (Acquisition Date), the Company purchased land, building and equipment (Manufacturing Plant) for $1,459,000, including $341,000 of transaction costs. The Manufacturing Plant is located in Bangor, Michigan. Prior to the acquisition, the Manufacturing Plant was owned by a bank and sold in a foreclosure auction. Accordingly, the purchase price for the Manufacturing Plant was less than the estimated fair value of the assets acquired by $257,000. The excess of fair value of the assets acquired over the purchase price was allocated on a relative fair value basis to all assets acquired. The acquisition of the Manufacturing Plant will allow the Company to manufacture certain products internally and improve the overall operating efficiencies and margins of the business as the production of these products historically has been outsourced. | |||||||||||||||||||||||||
The acquisition was accounted for as an asset acquisition in accordance with ASC 805, Business Combinations. The assets acquired under the Manufacturing Plant acquisition have been included in the Company’s condensed consolidated financial statements from the Acquisition Date. The purchase price was allocated to assets acquired as of the Acquisition Date. | |||||||||||||||||||||||||
Prior to the allocation of the excess of fair value of the assets acquired over the purchase price, the assets acquired are first measured at their fair values. The Company engaged a third-party valuation firm to assist with its estimated fair value of the assets acquired. The following methods and assumptions are used to estimate the fair value of each class of asset acquired: | |||||||||||||||||||||||||
Land—Market approach based on similar, but not identical, transactions in the market. Adjustments to comparable sales are based on both the quantitative and qualitative data. | |||||||||||||||||||||||||
Building—The cost approach, market approach and income approach were used to assess fair value. Cost approach is based on replacement cost new less depreciation adjusted for physical deterioration, functional obsolescence and external/economic obsolescence, as applicable. The market approach is based on similar, but not identical, transactions in the market using both quantitative and qualitative data. The income approach is based on the direct capitalization method using similar but not identical lease rates and making an assessment of net operating income. | |||||||||||||||||||||||||
Equipment—Both the cost approach and the market approach were used to assess fair value. Cost approach is based on replacement cost new less depreciation adjusted for physical deterioration, functional obsolescence and external/economic obsolescence, as applicable. The market approach is based on similar, but not identical, transactions in the market using both quantitative and qualitative data. | |||||||||||||||||||||||||
The following table summarizes the estimated fair value of the assets acquired as of the Acquisition Date, which were determined using level two and three inputs as described above (in thousands): | |||||||||||||||||||||||||
JULY 19, | |||||||||||||||||||||||||
2012 | |||||||||||||||||||||||||
Land | $ | 1 | |||||||||||||||||||||||
Building | 314 | ||||||||||||||||||||||||
Equipment | 1,144 | ||||||||||||||||||||||||
Assets acquired | $ | 1,459 | |||||||||||||||||||||||
As the Manufacturing Plant had not yet been placed in service as of September 30, 2013, the assets acquired, except the land, were recorded as construction in process as a component of property, plant and equipment in the accompanying condensed consolidated balance sheets as of September 30, 2013 and December 31, 2012. | |||||||||||||||||||||||||
Revenue Recognition | |||||||||||||||||||||||||
The Company recognizes revenues when persuasive evidence of an arrangement exists, delivery and transfer of title has occurred or services have been rendered, the price is fixed or determinable, and collectability is reasonably assured, unless contractual obligations, acceptance provisions or other contingencies exist. If such obligations or provisions exist, revenue is recognized after such obligations or provisions are fulfilled or expire. | |||||||||||||||||||||||||
Product revenues consist of revenues generated from sales to distributors and from sales of our products to direct customers, net of rebates and cash discounts. For sales of products made to distributors, the Company considers a number of factors in determining whether revenue is recognized upon transfer of title to the distributor, or when payment is received. These factors include, but are not limited to, whether the payment terms offered to the distributor in comparison to the Company’s historical terms are considered to be longer than typical, the distributor history of adhering to the terms of its contractual arrangements with the Company, whether the Company has a pattern of granting concessions for the benefit of the distributor, and whether there are other conditions that may indicate that the sale to the distributor is not substantive. When the Company offers payment terms that are considered to be extended in comparison to the Company’s historical terms, the Company considers the arrangement not to be fixed and determinable, and accordingly, revenue is deferred until payment is due. The costs associated with such deferral are also deferred and classified in prepaid expenses and other current assets in the condensed consolidated balance sheet. The Company currently recognizes revenue primarily on the sell-in method with its distributors. Distributors do not have price protection or return rights. | |||||||||||||||||||||||||
As of September 30, 2013, the Company recorded current deferred product revenues of $770,000. As of December 31, 2012, the Company had no deferred product revenues. | |||||||||||||||||||||||||
From time to time, the Company offers certain product rebates, which are recorded as reductions to product revenues. An accrued liability for these product rebates is recorded at the time the revenues are recorded. | |||||||||||||||||||||||||
The Company recognizes license revenues pursuant to strategic collaboration and distribution agreements under which the Company receives payments for the achievement of testing validation, regulatory progress and commercialization events. As these activities and payments are associated with exclusive rights that the Company provides in connection with strategic collaboration and distribution agreements over the term of the agreements, revenues related to the payments received are deferred and recognized over the term of the exclusive distribution period of the respective agreement. No payments were received under these agreements during the three and nine months ended September 30, 2013 and the three months ended September 30, 2012, and $1,000,000 was received during the nine months ended September 30, 2012. For the three months ended September 30, 2013 and 2012, the Company recognized $81,000 and $76,000, respectively, as license revenues in the accompanying condensed consolidated statements of operations. For the nine months ended September 30, 2013 and 2012, the Company recognized $243,000 and $207,000, respectively, as license revenues in the accompanying condensed consolidated statements of operations. At September 30, 2013, the Company recorded current and non-current deferred revenues of $324,000 and $1,453,000, respectively, related to payments received under these agreements. At December 31, 2012, the Company recorded current and non-current deferred revenues of $324,000 and $1,696,000 respectively, related to payments received under these agreements. | |||||||||||||||||||||||||
Recently Issued Accounting Pronouncements | |||||||||||||||||||||||||
There have been no new accounting pronouncements issued during the nine months ending September 30, 2013 that are of significance, or potential significance, to the Company. Any recent accounting pronouncements that are of significance, or potential significance, to the Company are set forth in the notes of the annual consolidated financial statements included in the Prospectus. |
Fair_Value_Measurements
Fair Value Measurements | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Fair Value Disclosures [Abstract] | ' | ||||||||||||||||
Fair Value Measurements | ' | ||||||||||||||||
3. Fair Value Measurements | |||||||||||||||||
The following table presents the Company’s financial assets and liabilities measured at fair value on a recurring basis as of September 30, 2013 and December 31, 2012 (in thousands): | |||||||||||||||||
30-Sep-13 | |||||||||||||||||
TOTAL | LEVEL 1 | LEVEL 2 | LEVEL 3 | ||||||||||||||
Assets | |||||||||||||||||
Money market funds | $ | 28,660 | $ | 28,660 | $ | — | $ | — | |||||||||
DECEMBER 31, 2012 | |||||||||||||||||
TOTAL | LEVEL 1 | LEVEL 2 | LEVEL 3 | ||||||||||||||
Assets | |||||||||||||||||
Money market funds | $ | 7,668 | $ | 7,668 | $ | — | $ | — | |||||||||
Liabilities | |||||||||||||||||
Common stock warrant liability | $ | 301 | $ | — | $ | — | $ | 301 | |||||||||
Preferred stock warrant liability | 1,884 | — | — | 1,884 | |||||||||||||
Convertible notes payable | 41,860 | — | — | 41,860 | |||||||||||||
Total liabilities at fair value | $ | 44,045 | $ | — | $ | — | $ | 44,045 | |||||||||
The money market funds held as of September 30, 2013, and December 31, 2012, were in active markets and, therefore, are measured based on the Level 1 valuation hierarchy. | |||||||||||||||||
The Company estimated the fair value of the common and preferred stock warrant liabilities as of December 31, 2012 using the Probability Weighted Expected Return Method (PWERM), which analyzes the returns afforded to common equity holders under multiple future scenarios. Under the PWERM, share value is based upon the probability-weighted present value of expected future net cash flows (distributions to shareholders), considering each of the possible future events and giving consideration to the rights and preferences of each share class. This method is most appropriate when the long-term outlook for an enterprise is largely known and multiple future scenarios can be reasonably estimated. | |||||||||||||||||
The common and preferred stock warrant liabilities were valued by a PWERM valuation using six scenarios, which included three initial public offering scenarios, two merger scenarios and a sale of the Company’s intellectual property. An annual discount rate of 35% was applied to the PWERM valuations as of December 31, 2012. The common stock warrant liability valuation also included an 18% discount for lack of marketability as of December 31, 2012. As the PWERM estimates the fair value of the common and preferred stock warrant liabilities using unobservable inputs, it is considered to be a Level 3 fair value measurement. | |||||||||||||||||
Effective on the date of the IPO, under ASC 815-40-15, Contracts in Entity’s Own Equity, the common and preferred stock warrant liabilities were considered to be indexed to the Company’s stock, and accordingly, the total warrants liability of $2,669,000 was reclassified and included in stockholders’ equity as of September 30, 2013. The Company revalued the warrants immediately prior to the IPO. The fair value of the warrants which would have expired on the date of the IPO unless exercised was determined using the intrinsic method based on the IPO price of $12.00 per share, which is deemed a “Level 2” valuation method. The fair value of the warrants that would not have expired on the date of the IPO regardless of whether or not they were exercised was determined using the Black-Scholes-Merton option-pricing model, which is deemed a “Level 3” valuation method. | |||||||||||||||||
As a result of the change in estimated fair value between December 31, 2012 and the closing of the IPO, the Company recognized a net gain from the total change in estimated fair value of the common and preferred stock warrant liabilities as shown in the tables below. | |||||||||||||||||
The following table provides a reconciliation of the beginning and ending balances for the common and preferred stock warrant liabilities measured at fair value using significant unobservable inputs (Level 3). The amounts included in the “Transfers out of Level 3” represent the beginning balance in the interim quarter during which it was transferred (in thousands): | |||||||||||||||||
COMMON | |||||||||||||||||
STOCK | |||||||||||||||||
WARRANT | |||||||||||||||||
LIABILITY | |||||||||||||||||
Fair value at December 31, 2012 | $ | 301 | |||||||||||||||
Warrants issued | 900 | ||||||||||||||||
Change in fair value recorded in change in fair value of financial instruments | 377 | ||||||||||||||||
Transfers out of Level 3 | (434 | ) | |||||||||||||||
Reclassified to stockholders’ equity (deficit) | (1,144 | ) | |||||||||||||||
Fair value at September 30, 2013 | $ | — | |||||||||||||||
PREFERRED | |||||||||||||||||
STOCK | |||||||||||||||||
WARRANT | |||||||||||||||||
LIABILITY | |||||||||||||||||
Fair value at December 31, 2012 | $ | 1,884 | |||||||||||||||
Change in fair value recorded in change in fair value of financial instruments | (823 | ) | |||||||||||||||
Transfers out of Level 3 | (140 | ) | |||||||||||||||
Reclassified to stockholders’ equity (deficit) | (921 | ) | |||||||||||||||
Fair value at September 30, 2013 | $ | — | |||||||||||||||
Effective on the date of the IPO, all of the Company’s convertible notes were converted into shares of common stock. Prior to the IPO, convertible notes were valued by a PWERM valuation utilizing inputs similar to those used for estimating fair values of the common and preferred stock warrant liabilities described above. A discount rate of 25% was used for valuing the March and October 2012 Convertible Notes, defined in Note 11, as of December 31, 2012. A discount rate of 18% was used for valuing the October 2012 Subordinated Convertible Notes and the December 2012 Convertible Note, both defined in Note 11, as of December 31, 2012. These annual discount rates were applied in the PWERM valuation as of December 31, 2012. The Company revalued the warrants immediately prior to the IPO. As a result of the IPO, the number of shares to be issued became known and the Company estimated the fair value of the convertible notes using the intrinsic method based on the IPO price of $12 per share, which is deemed a “Level 2” valuation method. Due to the change in estimated fair values between December 31, 2012 or the issuance dates of the convertible notes issued during the nine months ended September 30, 2013 and the closing of the IPO, the Company recognized a gain from the change in estimated fair value of the convertible notes as shown in the table below. | |||||||||||||||||
The following table provides a reconciliation of the beginning and ending balances for the convertible notes measured at fair value using significant unobservable inputs (Level 3). The amounts included in the “Transfers out of Level 3” represent the beginning balance in the interim quarter during which it was transferred (in thousands): | |||||||||||||||||
Fair value at December 31, 2012 | $ | 41,860 | |||||||||||||||
Convertible notes issued | 9,069 | ||||||||||||||||
Convertible notes cancelled | (1,360 | ) | |||||||||||||||
Accrued interest | 1,299 | ||||||||||||||||
Change in fair valued recorded in change in fair value of financial instruments | (2,634 | ) | |||||||||||||||
Transfers out of Level 3 | (48,234 | ) | |||||||||||||||
Fair value at September 30, 2013 | $ | — | |||||||||||||||
During the three months ended September 30, 2013, as noted above, there were $574,000 of preferred and common stock warrants and $48,234,000 of convertible notes transferred from the Level 3 to Level 2 category. |
Shortterm_Investments
Short-term Investments | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Investments Debt And Equity Securities [Abstract] | ' | ||||||||||||||||
Short-term Investments | ' | ||||||||||||||||
4. Short-term Investments | |||||||||||||||||
The amortized cost and estimated fair values of short-term investments are summarized in the following table (in thousands): | |||||||||||||||||
30-Sep-13 | |||||||||||||||||
Amortized | Gross | Gross | Estimated | ||||||||||||||
Cost | Unrealized | Unrealized | Fair Value | ||||||||||||||
Gains | Losses | ||||||||||||||||
Securities Held-to-Maturity | |||||||||||||||||
Certificates of deposit, with maturities less than 1 year | $ | 12,684 | $ | 1 | $ | -5 | $ | 12,680 | |||||||||
The short-term investments at September 30, 2013 were in inactive markets and, therefore, the estimated fair value is measured based on the Level 2 valuation hierarchy. The Company did not have any investments in securities as of December 31, 2012. |
Inventories
Inventories | 9 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Inventory Disclosure [Abstract] | ' | ||||||||
Inventories | ' | ||||||||
5. Inventories | |||||||||
Inventories consist of the following (in thousands): | |||||||||
SEPTEMBER 30, | DECEMBER 31, | ||||||||
2013 | 2012 | ||||||||
Raw materials | $ | 4,652 | $ | 3,204 | |||||
Work in progress | 3,189 | 607 | |||||||
Finished goods | 2,913 | 1,061 | |||||||
$ | 10,754 | $ | 4,872 | ||||||
Net_Loss_Per_Share
Net Loss Per Share | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Earnings Per Share [Abstract] | ' | ||||||||||||||||
Net Loss Per Share | ' | ||||||||||||||||
6. Net Loss Per Share | |||||||||||||||||
Basic net loss per share, which excludes dilution, is computed by dividing the net loss attributable to common shareholders by the weighted-average number of shares of common stock outstanding during the period. Diluted net loss per share reflects the potential dilution that could occur if securities or other contracts to issue common stock, such as stock options, convertible notes, convertible preferred stock and warrants, result in the issuance of common stock which share in the earnings of the Company. Stock options and convertible preferred stock have been excluded from the computation of diluted net loss per share for all periods as their effect would be anti-dilutive. Such potentially dilutive shares are excluded when the effect would be to reduce the loss per share. The treasury stock method has been applied to determine the dilutive effect of warrants. | |||||||||||||||||
The following table sets forth the weighted average potential shares of common stock that are not included in the calculation of diluted net loss per share because to do so would be anti-dilutive for each period presented (in thousands): | |||||||||||||||||
THREE MONTHS ENDED | NINE MONTHS ENDED | ||||||||||||||||
30-Sep | 30-Sep | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Convertible preferred stock | 2,714 | 8,504 | 6,274 | 8,504 | |||||||||||||
Convertible notes (1) | 503 | — | 501 | — | |||||||||||||
Stock options outstanding | 2,369 | 1,749 | 2,211 | 1,672 | |||||||||||||
Warrants to purchase convertible preferred stock | 32 | 207 | 61 | 153 | |||||||||||||
Warrants to purchase common stock (2) | — | — | — | — | |||||||||||||
(1) | As of September 30, 2012, the Company had approximately $8,804,000, in contingently convertible notes payable and related accrued interest for which the contingencies related to conversion had not been met as of September 30, 2012. Therefore, it would have no dilutive or anti-dilutive impact until the contingency had been met effective upon the IPO in August 2013. Refer to Note 11 for further discussion. The Company used the if-converted method to determine the dilutive effect of convertible notes as of July 1, 2013, the beginning of the quarter when the contingency had been met. | ||||||||||||||||
(2) | In October 2012 and April 2013, the Company issued warrants to purchase a number of shares of common stock equal to 15% of the funded principal amount of the October 2012 Junior Secured Promissory Notes as defined in Note 10, divided by 70% of the value of common stock in a sale of the Company or a qualified initial public offering (Qualified IPO), with an exercise price of 70% of the value of common stock in a sale of the Company or a Qualified IPO. In June 2013, the Company issued warrants to purchase a number of shares of common stock equal to 10% of the total committed amount of the June 2013 Credit Facility as defined in Note 10, divided by 70% of the value of common stock in a sale of the Company or a Qualified IPO, with an exercise price of 70% of the value of common stock in a sale of the Company or a Qualified IPO. These warrants were contingently exercisable for which the contingencies related to exercise had not been met until the IPO in August 2013. Therefore, they would have no dilutive or anti-dilutive impact until the contingency had been met in August 2013. Refer to Note 10 for further discussion. The Company used the if-converted method to determine the dilutive effect of warrants to purchase common stock as of July 1, 2013, the beginning of the quarter when the contingency had been met. | ||||||||||||||||
The numbers of shares of common stock issuable upon the exercise of warrants to purchase convertible preferred stock and upon the conversion of convertible preferred stock were at a ratio of one-to-one. | |||||||||||||||||
THREE MONTHS ENDED | NINE MONTHS ENDED | ||||||||||||||||
30-Sep | 30-Sep | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
(in thousands, except per share data) | |||||||||||||||||
Numerator: | |||||||||||||||||
Net loss | $ | (6,110 | ) | $ | (13,802 | ) | $ | (18,498 | ) | $ | (21,698 | ) | |||||
Deemed dividend on convertible notes | — | — | (1,378 | ) | (1,253 | ) | |||||||||||
Net loss attributable to common stockholders | $ | (6,110 | ) | $ | (13,802 | ) | $ | (19,876 | ) | $ | (22,951 | ) | |||||
Effect of potentially dilutive securities: | |||||||||||||||||
Convertible notes | (1,089 | ) | — | (118 | ) | — | |||||||||||
Warrants to purchase common stock | (201 | ) | — | (201 | ) | — | |||||||||||
Net loss for diluted earnings per share | $ | (7,400 | ) | $ | (13,802 | ) | $ | (20,195 | ) | $ | (22,951 | ) | |||||
Denominator: | |||||||||||||||||
Shares used for basic net loss per share | 12,888 | 1,262 | 5,187 | 1,253 | |||||||||||||
Effect of potentially dilutive securities: | |||||||||||||||||
Convertible notes | 1,043 | — | 20 | — | |||||||||||||
Warrants to purchase common stock | 86 | — | 22 | — | |||||||||||||
Weighted average shares outstanding for diluted earnings per share | 14,017 | 1,262 | 5,229 | 1,253 | |||||||||||||
Basic net loss per share: | $ | (0.47 | ) | $ | (10.94 | ) | $ | (3.83 | ) | $ | (18.32 | ) | |||||
Diluted net loss per share: | $ | (0.53 | ) | $ | (10.94 | ) | $ | (3.86 | ) | $ | (18.32 | ) | |||||
Other_Assets
Other Assets | 9 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Deferred Costs Capitalized Prepaid And Other Assets Disclosure [Abstract] | ' | ||||||||
Other Assets | ' | ||||||||
7. Other Assets | |||||||||
Other assets consist of the following (in thousands): | |||||||||
SEPTEMBER 30, | DECEMBER 31, | ||||||||
2013 | 2012 | ||||||||
Prepaid initial public offering costs | $ | — | $ | 2,257 | |||||
Prepaid distribution fees | 127 | 134 | |||||||
Deferred financing costs | 195 | 261 | |||||||
Deposit for equipment | 463 | — | |||||||
Deposits on equipment leases | 184 | 43 | |||||||
Other assets | 88 | 90 | |||||||
$ | 1,057 | $ | 2,785 | ||||||
Accrued_Liabilities
Accrued Liabilities | 9 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Payables And Accruals [Abstract] | ' | ||||||||
Accrued Liabilities | ' | ||||||||
8. Accrued Liabilities | |||||||||
Accrued liabilities consist of the following (in thousands): | |||||||||
SEPTEMBER 30, | DECEMBER 31, | ||||||||
2013 | 2012 | ||||||||
Accrued compensation | $ | 1,593 | $ | 1,342 | |||||
Accrued expenses | 1,380 | 1,295 | |||||||
Accrued product rebates | — | 386 | |||||||
$ | 2,973 | $ | 3,023 | ||||||
Factoring_and_Security_Agreeme
Factoring and Security Agreement | 9 Months Ended |
Sep. 30, 2013 | |
Equity [Abstract] | ' |
Factoring and Security Agreement | ' |
9. Factoring and Security Agreement | |
On June 13, 2013, the Company entered into a factoring and security agreement (Factoring and Security Agreement) with a third-party that would enable the Company to sell the entire interest in certain accounts receivable up to $5,000,000. Under the Factoring and Security Agreement, 15% of the sales proceeds will be held back by the purchaser until collection of such receivables. Such holdbacks are not considered legal securities, nor are they certificated. Upon the sale of the receivable, the Company will not maintain servicing. The purchaser may require the Company to repurchase accounts receivable if (i) the payment is disputed by the account debtor, with the purchaser being under no obligation to determine the bona fides of such dispute, (ii) the account debtor has become insolvent or (iii) upon the effective date of the termination of the Factoring and Security Agreement. The purchaser will retain its security interest in any accounts repurchased by the Company. The Factoring and Security Agreement is secured by all of the Company’s personal property and fixtures, and proceeds thereof, including accounts receivable, inventory, equipment and general intangibles other than intellectual property. Upon sale of the receivable, the Company may elect to set up a reserve where upon the cash for the sale remains with the third-party and the Company can draw on the available amount on the reserve account at any time. The Company elected to utilize the reserve account. | |
The Company accounted for sales of accounts receivable under the Factoring and Security Agreement as a secured borrowing in accordance with ASC 860, Transfers and Servicing. As of September 30, 2013, the Company had $1,396,000 included in accounts receivable that were transferred under this arrangement and had $199,000 in excess funds available on the reserve account which is included in prepaid expenses and other current assets in the condensed consolidated balance sheet. |
Debt
Debt | 9 Months Ended | ||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||
Debt Disclosure [Abstract] | ' | ||||||||||||||||||||
Debt | ' | ||||||||||||||||||||
10. Debt | |||||||||||||||||||||
Debt consists of the following (in thousands): | |||||||||||||||||||||
SEPTEMBER 30, | DECEMBER 31, | ||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||
Promissory note bearing interest at 6.25% per annum, which is payable monthly through May 2013, collateralized by all of the Company’s inventories, chattel paper, accounts receivable, equipment and general intangibles (excluding certain financed equipment and intellectual property). The Promissory Note was repaid in May 2013 (1) | $ | — | $ | 35 | |||||||||||||||||
Term Loan (Term Loan) bearing interest at 7.00% per annum which is payable monthly through April 2016. The Term Loan is collateralized by all of the Company’s inventories, chattel paper, accounts receivable, equipment and general intangibles (excluding certain financed equipment and intellectual property) pledged as collateral under the Term Loan, subordinated (1) | 339 | 426 | |||||||||||||||||||
Promissory note bearing interest at 7.00% per annum which is payable monthly through November 2014, collateralized by all of the Company’s inventories, chattel paper, accounts receivable, equipment and general intangibles (excluding certain financed equipment and intellectual property), net of unamortized debt discount at September 30, 2013 of $2, subordinated (1) | 158 | 261 | |||||||||||||||||||
Senior secured promissory note (April 2012 Senior Secured Promissory Note) bearing interest at 15.00% per annum which is payable monthly through April 2017, collateralized by substantially all of the Company’s assets. The April 2012 Senior Secured Promissory Note was repaid in January 2013 | — | 8,374 | |||||||||||||||||||
Junior secured promissory notes (October 2012 and April 2013 Junior Secured Promissory Notes) bearing interest at 12.00% per annum which is payable monthly through October 2015, collateralized by substantially all of the Company’s assets, net of unamortized debt discount at September 30, 2013 of $509 (1) | 11,941 | 7,242 | |||||||||||||||||||
Debt | 12,438 | 16,338 | |||||||||||||||||||
Less current portion | (177 | ) | (8,572 | ) | |||||||||||||||||
$ | 12,261 | $ | 7,766 | ||||||||||||||||||
(1) | The lender’s security interest was subordinate to the holders of the April 2012 Senior Secured Promissory Note with the exception of its interest in equipment. | ||||||||||||||||||||
The Company believes the carrying values of its debt approximate their fair values at September 30, 2013 and December 31, 2012 based on the interest rates as of those dates compared to similar debt instruments. | |||||||||||||||||||||
Promissory Notes, Term Loan, Revolving Line of Credit and Credit Facility | |||||||||||||||||||||
In May 2008, the Company borrowed $400,000 pursuant to a promissory note with a bank which bears interest at the rate of 6.25% per annum and is repayable in 60 equal monthly installments of $7,785 commencing June 1, 2008. This promissory note was repaid in May 2013. | |||||||||||||||||||||
In March 2009, October 2010 and October 2011, the Company and the bank agreed to modify the terms of its existing revolving line of credit (Revolver). Under the modified terms of the Revolver, the Company’s borrowings under the Revolver were limited to 75% of qualifying accounts receivable with a maximum borrowing limit of $500,000. In March 2012, the Company entered into a change in terms agreement with the bank under which the existing Revolver was replaced by the Term Loan in the amount of $500,000 with a rate of 7.00% per annum, maturing April 1, 2016. The Company’s inventories, chattel paper, accounts receivable, equipment and general intangibles (excluding certain financed equipment and intellectual property) have been pledged as collateral under the Term Loan. There was no outstanding balance on the Revolver as of December 31, 2011 and the Revolver was terminated in March 2012. | |||||||||||||||||||||
In March 2009, the Company borrowed $650,000 pursuant to a promissory note with the bank which bears interest at the rate of 7.00% per annum and is repayable in six monthly interest only payments starting May 1, 2009, followed by 60 equal monthly installments of $13,000 commencing November 1, 2009, with the final payment due on November 1, 2014. | |||||||||||||||||||||
All of the Company’s inventories, chattel paper, accounts receivable, equipment and general intangibles (excluding certain financed equipment and any intellectual property) have been pledged as collateral for the promissory notes. | |||||||||||||||||||||
On April 13, 2012, the Company borrowed $10,000,000 pursuant to a senior secured promissory note (April 2012 Senior Secured Promissory Note), which had an interest rate of 15.00% per annum and required the Company to pay the lender non-refundable loan fees of $625,000. The April 2012 Senior Secured Promissory Note was payable in 59 monthly installments of $238,000 beginning in May 2012 with all unpaid principal and interest due in April 2017. The April 2012 Senior Secured Promissory Note was secured by a first priority security interest in substantially all of the Company’s present and future assets. The Company also issued a warrant (Series C Warrant) to the lender to purchase 191,000 shares of the Company’s Series C convertible preferred stock with an exercise price of $7.846 per share. Under its terms, the Series C Warrant would expire, unless exercised, on the earlier to occur of April 2022 or one year after the Company successfully completes a Qualified IPO, however the Series C Warrant was exercised effective upon the completion of the IPO (See Note 15). Until the effective date of the IPO, the Company estimated the fair value of the Series C Warrant using a PWERM valuation based on unobservable inputs, and, therefore, the Series C Warrant was considered to be a Level 3 liability. | |||||||||||||||||||||
The loan fees and the fair value of the Series C Warrant at the date of issuance of $625,000 and $306,000, respectively, were recorded as a debt discount to the April 2012 Senior Secured Promissory Note and were being amortized to interest expense over the term of the arrangement. | |||||||||||||||||||||
Under the terms of the April 2012 Senior Secured Promissory Note, the Company could have elected to prepay the entire outstanding principal balance upon thirty days written notice to the lender. In the event the Company decided to prepay the entire loan balance, the Company would incur a termination fee that would be calculated based on the April 2012 Senior Secured Promissory Note’s outstanding principal balance as of the effective date of termination notice. The termination fee is 0% to 3% of the April 2012 Senior Secured Promissory Note’s outstanding balance as of the effective date of termination notice, depending on the timing of the termination. | |||||||||||||||||||||
Under the terms of the December 2012 Convertible Note issued in December 2012 (Note 11), the Company was required to use the proceeds from this convertible note to repay all outstanding balance of the April 2012 Senior Secured Promissory Note within 35 days of closing. The Company repaid the outstanding balance of the April 2012 Senior Secured Promissory Note in January 2013 and classified the outstanding balance of the April 2012 Senior Secured Promissory Note as of December 31, 2012 as a current liability. The total amount of the payout was $9,451,000 which consisted of $9,139,000 in principal, $34,000 in accrued interest, and an early termination fee of $278,000. The termination fee was recorded as incremental interest expense in the accompanying condensed consolidated statements of operations for the nine months ended September 30, 2013. | |||||||||||||||||||||
Activity related to the April 2012 Senior Secured Promissory Note from December 31, 2012 through September 30, 2013 consisted of the following (in thousands): | |||||||||||||||||||||
DECEMBER 31, | AMORTIZATION | PRINCIPAL | SEPTEMBER 30, | ||||||||||||||||||
2012 | OF DEBT | PAYMENTS | 2013 | ||||||||||||||||||
DISCOUNT | |||||||||||||||||||||
Principal | $ | 9,139 | $ | — | $ | (9,139 | ) | $ | — | ||||||||||||
Discount related to Series C Warrant (1) | (251 | ) | 251 | — | — | ||||||||||||||||
Discount related to financing costs (1) | (514 | ) | 514 | — | — | ||||||||||||||||
$ | 8,374 | $ | 765 | $ | (9,139 | ) | $ | — | |||||||||||||
(1) | The amortization of this account is included in interest expense in the condensed consolidated statements of operations and noncash interest expense in the condensed consolidated statements of cash flows. | ||||||||||||||||||||
On October 2, 2012, the Company borrowed $7,500,000 pursuant to senior notes (October 2012 Junior Secured Promissory Notes) with a group of lenders. The October 2012 Junior Secured Promissory Notes have an initial term of three years and can be extended for an additional two years in one year increments. During the initial three-year term, the October 2012 Junior Secured Promissory Notes bear interest at 12% per annum. If the term of the October 2012 Junior Secured Promissory Notes is extended an additional year, the interest rate increases to 13% during the fourth year. If the term of the October 2012 Junior Secured Promissory Notes is extended for an additional two years, the interest rate is 14% during the fifth year. Interest on the October 2012 Junior Secured Promissory Notes is payable monthly through the initial maturity date of the loan which is October 2, 2015 or through any extension period. The principal and all unpaid interest are due on the maturity date, as may be extended. | |||||||||||||||||||||
As part of the terms of the October 2012 Junior Secured Promissory Notes, the Company is required to pay a fee of 5% of the funded principal amount to the agent that facilitated the borrowing and provides management of the relationship with the group of lenders (Agent Fee). This Agent Fee is payable within 30 days after all interest and principal have been paid. For each year the Company extends the maturity date of the October 2012 Junior Secured Promissory Notes beyond the initial term, the agent will receive an additional 1% fee based on the funded principal amount. The present value of the unpaid Agent Fee, based on 5% of the funded principal amount, or $261,000 as of the closing date of the October 2012 Junior Secured Promissory Notes was recorded as both deferred financing costs as a component of current and non-current other assets and non-current other liabilities. The amortization of the deferred financing costs and the accretion of the Agent Fee are recorded to interest expense over the term of the arrangement. As of September 30, 2013 and December 31, 2012, $485,000 and $270,000, respectively, of the Agent Fee, including the amounts relating to the additional funds received from the issuance of the April 2013 Junior Secured Promissory Notes discussed below, was recorded under non-current other liabilities. In addition, the Company incurred an additional $66,000 in financing-related costs, primarily legal fees. These costs were recorded as deferred financing costs as a component of current and non-current other assets and are being amortized to interest expense over the term of the arrangement. | |||||||||||||||||||||
The October 2012 Junior Secured Promissory Notes are secured by the Company’s ownership interest in MMM LLC, a security interest in the assets of the Manufacturing Plant, and all of the Company’s other assets, subject to certain permitted liens. This security interest was subordinated to the security interest held by the holders of the April 2012 Senior Secured Promissory Note as described above, which also had a security interest in MMM LLC. | |||||||||||||||||||||
The Company also issued warrants (Common Stock Warrants) to the group of lenders to purchase a number of shares of common stock equal to 15% of the funded principal amount of the October 2012 Junior Secured Promissory Notes divided by 70% of the value of common stock in a sale of the Company or a Qualified IPO, with such Common Stock Warrants having an exercise price of 70% of the value of common stock in a sale of the Company or a Qualified IPO. The Common Stock Warrants would be automatically exercised immediately prior to expiration on the earlier to occur of a Qualified IPO or a sale of the Company or the maturity of the October 2012 Junior Secured Promissory Notes. The October 2012 Junior Secured Promissory Notes could be prepaid six months after the initial funding date or earlier if a Qualified IPO or a sale of the Company occurs. As the predominant settlement feature of the Common Stock Warrants is to settle a fixed monetary amount in a variable number of shares, the Common Stock Warrants were accounted for under ASC 480, Distinguishing Liabilities from Equity (ASC 480). Accordingly, the Common Stock Warrants were recorded at estimated fair value on their issuance date and were adjusted to its estimated fair value as of each reporting date with the change in estimated fair value recorded as a component of change in estimated fair value of financial instruments in the Company’s condensed consolidated statements of operations. The fair value of the Common Stock Warrants at the date of issuance of $282,000 was recorded as a discount to the October 2012 Junior Secured Promissory Notes and is being amortized to interest expense over the term of the arrangement. Until the effective date of the IPO, the Company estimated the fair value of the Common Stock Warrants using a PWERM valuation based on unobservable inputs, and, therefore, the Common Stock Warrants were considered to be Level 3 liabilities. Upon closing of the IPO, the exercise price of the Common Stock Warrants was determined to be $8.40 and the number of shares to be issued upon exercise of the warrants was no longer variable. As a result of the IPO, the Common Stock Warrants were considered to be indexed to the Company’s stock, and accordingly, the common stock warrants liability was reclassified and included in stockholders’ equity during the three months ended September 30, 2013. | |||||||||||||||||||||
The October 2012 Junior Secured Promissory Notes contain certain covenant requirements which include a requirement to maintain a minimum cash balance of the lesser of the April 2012 Senior Secured Promissory Note indebtedness described above or $5,000,000. As discussed above, the April 2012 Senior Secured Promissory Note was fully paid off in January 2013. The Company is also precluded from adding additional debt without lender approval unless such debt is subordinated to the October 2012 Junior Secured Promissory Notes and not more than $2,000,000. In the event of default on the October 2012 Junior Secured Promissory Notes, the lenders may declare the entire unpaid principal and interest immediately due and payable. | |||||||||||||||||||||
On April 10, 2013 (Conversion Date), the Company entered an amendment to increase by up to $5,000,000 the amount available under the terms of the loan agreement with respect to the October 2012 Junior Secured Promissory Notes. Under this amendment, an additional $4,950,000 was issued in partial consideration for $3,700,000 in cash received and in partial conversion for the cancellation of $1,250,000 of the total principal balance of the October 2012 Subordinated Convertible Note described below (collectively, April 2013 Junior Secured Promissory Notes). The total amount borrowed under the amended loan agreement for the October 2012 Junior Secured Promissory Notes and the April 2013 Junior Secured Promissory Notes increased from $7,500,000 to $12,450,000 as of the Conversion Date. The accrued interest of $74,000 for the partially converted October 2012 Subordinated Convertible Note as of the Conversion Date shall be repaid or converted on the applicable maturity date of the October 2012 Subordinated Convertible Note. | |||||||||||||||||||||
In conjunction with the issuance of the April 2013 Junior Secured Promissory Notes, the Company issued additional warrants (Additional Common Stock Warrants) to purchase a number of shares of common stock equal to 20% of the funded principal amount of the April 2013 Junior Secured Promissory Notes divided by 70% of the value of common stock in a sale of the Company or a Qualified IPO, with such Additional Common Stock Warrants to have an exercise price of 70% of the value of common stock in a sale of the Company or a Qualified IPO. As the predominant settlement feature of the Additional Common Stock Warrants was to settle a fixed monetary amount in a variable number of shares, the Common Stock Warrants were accounted for under ASC 480. Accordingly, the Additional Common Stock Warrants were recorded at estimated fair value on their issuance date and were adjusted to its estimated fair value as of each reporting date with the change in estimated fair value recorded as a component of change in estimated fair value of financial instruments in the Company’s condensed consolidated statements of operations. The fair value of the Additional Common Stock Warrants at the date of issuance was estimated to be $465,000. The Company estimated the fair value of the Additional Common Stock Warrants using a PWERM valuation based on unobservable inputs, and, therefore, the Additional Common Stock Warrants were considered to be Level 3 liabilities. Upon closing of the IPO, the exercise price of the Common Stock Warrants was determined to be $8.40 and the number of shares to be issued upon exercise of the warrants was no longer variable. As a result of the IPO, the Common Stock Warrants were considered to be indexed to the Company’s stock, and accordingly, the common stock warrants liability was reclassified and included in stockholders’ equity during the three months ended September 30, 2013. | |||||||||||||||||||||
The debt holder who converted $1,250,000 principal balance of the October 2012 Subordinated Convertible Note (with a fair value of $1,360,000 on the date of conversion) also loaned an additional $2,500,000 in cash as part of the April 2013 Junior Secured Promissory Notes (collectively, the $3,750,000 Notes). The Company accounted for the conversion as an extinguishment of debt in accordance with ASC 470-50, Debt Modifications and Extinguishments (ASC 470-50). The $1,360,000 fair value of the partially converted October 2012 Subordinated Convertible Note on the Conversion Date was derecognized and the fair value of the $3,750,000 Notes with the portion of the fair value of the Additional Common Stock Warrants issued to this debt holder on the date of issuance was recorded. The Company recorded the $49,000 excess of the total fair value of the $3,750,000 Notes and the related Additional Common Stock Warrants on the issuance date over total consideration received as a gain on extinguishment of debt in the accompanying condensed consolidated statements of operations for the nine months ended September 30, 2013. | |||||||||||||||||||||
The following table shows the consideration received, fair values of the notes and common stock warrants issued and calculation of the gain on extinguishment of debt for the $3,750,000 Notes (in thousands): | |||||||||||||||||||||
Consideration received | |||||||||||||||||||||
Fair Value of October 2012 Subordinated Convertible Note | $ | 1,360 | |||||||||||||||||||
Cash | 2,500 | ||||||||||||||||||||
Total Consideration Received (a) | $ | 3,860 | |||||||||||||||||||
Notes and Warrants Issued | |||||||||||||||||||||
Principal Balance of Notes Issued | $ | 3,750 | |||||||||||||||||||
Debt Discount (1) | (291 | ) | |||||||||||||||||||
Fair Value of Notes Issued | 3,459 | ||||||||||||||||||||
Fair Value of Additional Common Stock Warrants Issued | 352 | ||||||||||||||||||||
Total Fair Value of Notes and Warrants Issued (b) | $ | 3,811 | |||||||||||||||||||
Gain on Extinguishment of Debt (a - b) | $ | 49 | |||||||||||||||||||
(1) | The amortization of this account is being recorded in interest expense on the condensed consolidated statements of operations over the term of the arrangement. | ||||||||||||||||||||
The remaining fair value to the Additional Common Stock Warrants of $113,000, net of the fair value of the Additional Common Stock Warrants issued of $352,000 related to the $3,750,000 Notes discussed above, was recorded as a debt discount to the April 2013 Junior Secured Promissory Notes and is being amortized to interest expense over the term of the arrangement. | |||||||||||||||||||||
As a result of the amendment described above, the Company is also required to pay the Agent Fee, 5% of the $3,700,000 in cash received from the April 2013 Junior Secured Promissory Notes, under the same terms as the October 2012 Junior Secured Promissory Notes. In addition, the portion of the Agent Fee relating to the converted October 2012 Subordinated Convertible Note that would be due under the terms of the October 2012 Subordinated Convertible Note will be paid under the terms of the October 2012 and April 2013 Junior Secured Promissory Notes. The present value of the unpaid Agent Fee of $172,000, based on 5% of the funded principal amount of $4,250,000, as of the closing date of the April 2013 Junior Secured Promissory Notes was recorded as both deferred financing costs as a component of current and non-current other assets and non-current other liabilities. The amortization of the deferred financing costs and the accretion of the Agent Fee are recorded to interest expense over the term of the arrangement. | |||||||||||||||||||||
In addition, the Company incurred an additional $24,000 in financing-related costs, primarily legal fees. These costs were recorded as deferred financing costs as a component of current and non-current other assets and are being amortized to interest expense over the term of the arrangement. | |||||||||||||||||||||
The amendment to the loan agreement also amended the interest provision applicable to the October 2012 and April 2013 Junior Secured Promissory Notes to allow any holder of the October 2012 and April 2013 Junior Secured Promissory Notes to request the Company to defer all interest due monthly to the applicable maturity date, and the optional prepayment provision applicable to the October 2012 and April 2013 Junior Secured Promissory Notes to allow the Company to repay the outstanding amount of the October 2012 and April 2013 Junior Secured Promissory Notes, either (i) with the written consent of the lender or the agent on such lenders’ behalf or (ii) without such consent provided that the Company pays the interest that would have been due from the prepayment date to the initial maturity date. | |||||||||||||||||||||
Activity related to the October 2012 and April 2013 Junior Secured Promissory Notes from December 31, 2012 through September 30, 2013 consisted of the following (in thousands): | |||||||||||||||||||||
DECEMBER 31, | ADDITIONS | AMORTIZATION | PRINCIPAL | SEPTEMBER 30, | |||||||||||||||||
2012 | OF DEBT | PAYMENTS | 2013 | ||||||||||||||||||
DISCOUNT | |||||||||||||||||||||
Principal | $ | 7,500 | $ | 4,950 | $ | — | $ | — | $ | 12,450 | |||||||||||
Debt discount related to issuance of common stock warrants (1) | (258 | ) | (113 | ) | 95 | — | (276 | ) | |||||||||||||
Discount related to the $3,750,000 Notes (1) | — | (291 | ) | 58 | — | (233 | ) | ||||||||||||||
$ | 7,242 | $ | 4,546 | $ | 153 | $ | — | $ | 11,941 | ||||||||||||
(1) | The amortization of this account is included in interest expense on the condensed consolidated statements of operations and as noncash interest expense in the condensed consolidated statement of cash flows. | ||||||||||||||||||||
On June 14, 2013, the Company entered into a credit facility agreement (June 2013 Credit Facility) with a group of lenders that are, or that are affiliated with, existing investors in the Company. Under the June 2013 Credit Facility, the lenders have committed to permit the Company to draw an aggregate of up to $5,000,000, and, subject to the Company’s obtaining additional commitments from lenders, such amount may be increased to up to $7,000,000. The June 2013 Credit Facility expires on June 30, 2014. During the term of the June 2013 Credit Facility, the Company may request from the lenders up to four advances, with each advance equal to one quarter of each lender’s aggregate commitment amount. The Company will issue a promissory note in the principal amount of each such advance that will accrue interest at a rate of 10% per annum. The principal and all unpaid interest under the promissory notes are due on the maturity date, and the Company may not prepay the promissory notes prior to the maturity date without consent of at least a majority in interest of the aggregate principal amount of the promissory notes then outstanding under the credit facility. In connection with the June 2013 Credit Facility, the Company agreed to pay a fee of 2% of the total commitment amount to the lenders. In addition, the Company incurred an additional $8,000 in financing-related costs, primarily legal fees. These costs were recorded as deferred financing costs as a component of current other assets and are being amortized to interest expense over the term of the arrangement. | |||||||||||||||||||||
In conjunction with the June 2013 Credit Facility, the Company issued warrants (June 2013 Warrants) to purchase a number of shares of common stock equal to 10% of the total committed amount of the June 2013 Credit Facility divided by 70% of the value of common stock in a sale of the Company or a Qualified IPO, with such June 2013 Common Stock Warrants to have an exercise price of 70% of the value of common stock in a sale of the Company or a Qualified IPO. The June 2013 Common Stock Warrants expire upon the earlier of June 14, 2023 or the sale of the Company. As the predominant settlement feature of the June 2013 Warrants was to settle a fixed monetary amount in a variable number of shares, the Common Stock Warrants were accounted for under ASC 480. Accordingly, the Common Stock Warrants were recorded at estimated fair value on their issuance date and were adjusted to its estimated fair value as of each reporting date with the change in estimated fair value recorded as a component of change in estimated fair value of financial instruments in the Company’s condensed consolidated statements of operations. The fair value of the June 2013 Warrants at the date of issuance of $435,000 was recorded as a deferred financing cost as a current other asset and is being amortized to interest expense over the term of the arrangement. Until the effective date of the IPO, the Company estimated the fair value of the Common Stock Warrants using a PWERM valuation based on unobservable inputs, and, therefore, the Common Stock Warrants were considered to be Level 3 liabilities. Upon closing of the IPO, the exercise price of the Common Stock Warrants was determined to be $8.40 and the number of shares to be issued upon exercise of the warrants was no longer variable. As a result of the IPO, the Common Stock Warrants were considered to be indexed to the Company’s stock, and accordingly, the common stock warrants liability was reclassified and included in stockholders’ equity during the three months ended September 30, 2013. | |||||||||||||||||||||
As of September 30, 2013, there were no amounts outstanding under the June 2013 Credit Facility and in August 2013, the Company’s Board of Directors resolved not to call for any advances under the June 2013 Credit Facility. | |||||||||||||||||||||
The Company is also required to comply with certain affirmative and negative covenants under the debt agreements discussed above. In the event of default on the debt, the lender(s) may declare the entire unpaid principal and interest immediately due and payable. As of September 30, 2013, the Company was in compliance with all of the affirmative and negative covenants, and there were no events of default, as defined in the agreements, related to the debt. |
Convertible_Notes_Payable
Convertible Notes Payable | 9 Months Ended | ||||||||||
Sep. 30, 2013 | |||||||||||
Text Block [Abstract] | ' | ||||||||||
Convertible Notes Payable | ' | ||||||||||
11. Convertible Notes Payable | |||||||||||
Convertible notes payable consists of the following (in thousands): | |||||||||||
MATURITY | SEPTEMBER 30, | DECEMBER 31, | |||||||||
DATE | 2013 | 2012 | |||||||||
Convertible notes (March 2012 Convertible Notes) bearing interest at 10.00% per annum issued in March and April 2012. The convertible notes were converted to common stock in August 2013. | September 2013 | $ | — | $ | 20,204 | ||||||
Convertible note (October 2012 Convertible Note) bearing interest at 10.00% per annum issued in October 2012. The convertible note was converted to common stock in August 2013 | Sep-13 | — | 2,314 | ||||||||
Convertible notes payable, current portion | — | 22,518 | |||||||||
Convertible note (October 2012 Subordinated Convertible Note) bearing interest at 12.00% per annum issued in October 2012. The convertible note was converted to common stock in August 2013 | Oct-15 | — | 2,797 | ||||||||
Convertible note (December 2012 Convertible Note) bearing interest at 10.00% per annum issued in December 2012. The convertible note was converted to common stock in August 2013 | Oct-15 | — | 16,545 | ||||||||
Convertible note (First May 2013 Convertible Note) bearing interest at 10.00% per annum issued in May 2013. The convertible note was converted to common stock in August 2013 | May-16 | — | — | ||||||||
Convertible note (Second May 2013 Convertible Note) bearing interest at 10.00% per annum issued in May 2013. The convertible note was converted to common stock in August 2013 | May-16 | — | — | ||||||||
Total convertible notes payable | $ | — | $ | 41,860 | |||||||
March 2012 and October 2012 Convertible Notes | |||||||||||
During March 2012 through April 2012, the Company issued and sold in a series of closings $8,076,000 of convertible notes (March 2012 Convertible Notes) to existing preferred stock holders. During October 2012, the Company issued an additional $1,000,000 convertible note (October 2012 Convertible Note) to another existing preferred stock holder. Collectively, the March 2012 Convertible Notes and the October 2012 Convertible Note are referred to as the “March and October 2012 Convertible Notes,” and they accrued interest at 10% per annum. The principal and accrued interest then outstanding under the March and October 2012 Convertible Notes (Outstanding Balance) would mature on September 30, 2013 (Maturity Date) or earlier, at which time all such Outstanding Balance would automatically convert into a new series of preferred stock to be authorized immediately prior to the Maturity Date. | |||||||||||
Under the terms of the note, if the Company closed an initial public offering in which the Company received gross cash proceeds, before underwriting discounts, commissions and fees, of at least $30,000,000 (a Qualified IPO) or a sale of substantially all of the Company’s assets or a series of transactions that result in the transfer of more than 50% of the Company’s outstanding voting power (an Acquisition), the Outstanding Balance of the March 2012 Convertible Notes would automatically convert into shares of the Company’s common stock at a rate of 70% of the per share price of the Company’s common stock sold in the Qualified IPO or the Acquisition. In the event of a Qualified IPO or Acquisition, the Outstanding Balance of the October 2012 Convertible Note would automatically convert into shares of the Company’s common stock at a rate of 80% of the per share price of the Company’s common stock sold in the Qualified IPO or the Acquisition. Upon the closing of the IPO on August 7, 2013, all outstanding principal and accrued interest of the March and October 2012 Convertible Notes converted into shares of the Company’s common stock at a rate of 70% and 80% of the per share price, respectively (See Note 15). | |||||||||||
Alternatively, the Outstanding Balance would have been automatically converted into other new securities, as follows, if prior to closing the Qualified IPO or the Acquisition, the Company had closed an equity financing for an aggregate consideration of at least $5,000,000 (a Qualified Equity Financing). If prior to closing the Qualified IPO or the Acquisition, the Company had closed a Qualified Equity Financing, the Outstanding Balance of the March 2012 Convertible Notes would have converted into the equity securities issued in the equity financing at 80% of the purchase price of such securities. In the event of a Qualified Equity Financing, the Outstanding Balance of the October 2012 Convertible Note would have converted into the equity securities issued in the equity financing at 85% of the purchase price of such securities. | |||||||||||
On the issuance date and at each reporting date prior to the conversion, the Company assessed the probability of the potential conversion scenarios under the terms of the March and October 2012 Convertible Notes and determined that the predominant settlement feature of the March and October 2012 Convertible Notes would have been the conversion of the March and October 2012 Convertible Notes into shares of the Company’s common stock issuable at a 30% or 20% discount to the per share price payable in connection with the completion of the Qualified IPO or Acquisition during the term of the arrangement. As the predominant settlement feature of the March and October 2012 Convertible Notes was to settle a fixed monetary amount in a variable number of shares, the March and October 2012 Convertible Notes fell within the scope of ASC 480. Accordingly, the March and October 2012 Convertible Notes were recorded at estimated fair value on their respective issuance dates and were adjusted to their estimated fair value as of each reporting date with the change in estimated fair value recorded as a component of change in estimated fair value of financial instruments in the Company’s condensed consolidated statements of operations. As a result of the IPO, the number of shares to be issued became known and the Company estimated the fair value of the convertible notes immediately prior to the conversion using the intrinsic method based on the IPO price of $12 per share. | |||||||||||
The Company estimated the fair value of the March and October 2012 Convertible Notes as of the issuance dates to be $9,343,000 and $1,772,000, respectively. As the Company received total cash proceeds of $9,076,000 through the issuance of the March and October 2012 Convertible Notes, the Company determined that $2,039,000 of the excess of the estimated fair value of the March and October 2012 Convertible Notes on the issuance dates over cash proceeds to the Company represented a deemed dividend to preferred stockholders, and this amount was reflected in the net loss attributable to common stockholders for the year ended December 31, 2012 in the Company’s consolidated statements of operations. | |||||||||||
As of December 31, 2012 and immediately prior to the closing of the IPO on August 7, 2013, the estimated fair value of the March and October 2012 Convertible Notes was $22,518,000 and $14,599,000, respectively. Between December 31, 2012 and August 7, 2013, the estimated fair value of the March and October 2012 Convertible Notes decreased by $8,516,000, which was recognized as additional income, in the change in estimated fair value of financial instruments for the nine months ended September 30, 2013 in the Company’s condensed consolidated statements of operations. | |||||||||||
As discussed above, the Company was not required to pay interest on the March and October 2012 Convertible Notes, but interest accrued as part of the principal balance under the March and October 2012 Convertible Notes and was converted, along with the initial principal, into common stock upon closing of the IPO in August 2013. | |||||||||||
October 2012 Subordinated Convertible Note | |||||||||||
On October 16, 2012, the Company borrowed $2,500,000 pursuant to a convertible note (October 2012 Subordinated Convertible Note) from a lender. The October 2012 Subordinated Convertible Note had an initial term of three years. During the initial three-year term, the October 2012 Subordinated Convertible Note accrued interest at 12% per annum. | |||||||||||
In April 2013, the Company entered an amendment to convert $1,250,000 of the outstanding principal balance of the October 2012 Subordinated Convertible Note to the April 2013 Junior Secured Promissory Notes, as defined and further discussed in Note 10. The accrued interest of $74,000 for the partially converted October 2012 Subordinated Convertible Note as of the Conversion Date shall be repaid or converted on the applicable maturity date of the October 2012 Subordinated Convertible Note. The Company accounted for the exchange as an extinguishment of debt in accordance with ASC 470-50 and derecognized the $1,360,000 fair value of the October 2012 Subordinated Convertible Note and recorded a $49,000 gain on extinguishment of debt which was reflected in the Company’s condensed consolidated statements of operations. In addition, the portion of the Agent Fee relating to the converted October 2012 Subordinated Convertible Note that would be due under the terms of the October 2012 Subordinated Convertible Note will be paid under the terms of the October 2012 and April 2013 Junior Secured Promissory Notes. The amount of the unamortized converted Agent Fee on the date of conversion recorded under non-current other liabilities of $48,000 and the amount recorded as a component of current and non-current other assets of $39,000 was written off and recorded as an adjustment to interest expense (See Note 10). | |||||||||||
As part of the terms of the October 2012 Subordinated Convertible Note, the Company is required to pay the Agent Fee of 5% of the funded principal amount to the agent that facilitated the borrowing and provides management of the relationship with the lender and who also facilitated the October 2012 Junior Secured Promissory Notes discussed in Note 10 above. This Agent Fee is payable within 30 days after all interest and principal have been paid. For each year the Company extended the maturity date of the October 2012 Subordinated Convertible Note beyond the initial term, the agent would have received an additional 1% fee based on the funded principal amount. The present value of the unpaid Agent Fee, based on 5% of the funded principal amount, or $87,000 as of the closing date of the October 2012 Subordinated Convertible Note was recorded as both deferred financing costs as a component of current and non-current other assets and non-current other liabilities. The amortization of the deferred financing costs and the accretion of the Agent Fee were recorded to interest expense over the term of the arrangement. As of September 30, 2013 and December 31, 2012, $63,000 and $89,000, respectively, of the Agent Fee, including the effect of the amendment of the October 2012 Subordinated Convertible Note discussed above, was recorded in current and non-current other liabilities, respectively. In addition, the Company incurred an additional $22,000 in financing-related costs, primarily legal fees. These costs were recorded as deferred financing costs as a component of current and non-current other assets and were amortized to interest expense over the term of the arrangement. | |||||||||||
Under the terms of the note, if the Company closed a Qualified IPO or an Acquisition, the October 2012 Subordinated Convertible Note and any accrued interest would automatically convert into shares of the Company’s common stock at a rate of 85% of the purchase price of common stock sold, provided the closing occurred on or prior to eighteen months from the issuance date of the October 2012 Subordinated Convertible Note. The conversion rate would have adjusted to 80% of the purchase price of such securities, if the closing had occurred on or after eighteen months from the issuance date of the October 2012 Subordinated Convertible Note through the date of maturity. Upon the closing of the IPO in August 2013, all outstanding principal and accrued interest of the October 2012 Subordinated Convertible Note were converted into shares of the Company’s common stock at a rate of 85% of the per share price (See Note 15). | |||||||||||
On the issuance date and at each reporting date prior to the conversion, the Company assessed the probability of potential conversion under its terms of the October 2012 Subordinated Convertible Note and determined that the predominate settlement feature of the October 2012 Subordinated Convertible Note would have been the conversion of the October 2012 Subordinated Convertible Note into shares of the Company’s common stock issuable at a 15% or 20% discount to the per share price payable upon the completion of a Qualified IPO, an Acquisition, or Qualified Equity Financing. As the predominant settlement feature of the October 2012 Subordinated Convertible Note was to settle a fixed monetary amount in a variable number of shares, the October 2012 Subordinated Convertible Note fell within the scope of ASC 480. Accordingly, the October 2012 Subordinated Convertible Note was recorded at estimated fair value on its issuance date and was adjusted to its estimated fair value as of each reporting date with the change in estimated fair value recorded as a component of change in estimated fair value of financial instruments in the Company’s condensed consolidated statements of operations. As a result of the IPO, the number of shares to be issued became known and the Company estimated the fair value of the convertible notes immediately prior to the conversion using the intrinsic method based on the IPO price of $12 per share. | |||||||||||
The Company estimated the fair value of the October 2012 Subordinated Convertible Note as of the issuance date to be $2,662,000. As the Company received cash proceeds of $2,500,000 through the issuance of the October 2012 Subordinated Convertible Note, $162,000 of the excess of the estimated fair value of the October 2012 Subordinated Convertible Note on the issuance date over cash proceeds was recorded as additional interest expense for the year ended December 31, 2012 in the Company’s condensed consolidated statements of operations. | |||||||||||
As of December 31, 2012, the principal balance and the estimated fair value of the October 2012 Subordinated Convertible Note was $2,500,000 and $2,797,000, respectively. Immediately prior to the closing of the IPO in August 2013, the principal balance and the estimated fair value of the October 2012 Subordinated Convertible Note was $1,250,000 and $1,703,000, respectively. Between December 31, 2012 and August 7, 2013, the estimated fair value of the October 2012 Subordinated Convertible Note increased by $133,000, which was recognized as additional expense in the change in estimated fair value of financial instruments for the nine months ended September 30, 2013 in the Company’s condensed consolidated statements of operations. | |||||||||||
December 2012 Convertible Note | |||||||||||
On December 6, 2012, the Company borrowed $12,500,000 pursuant to a convertible note (December 2012 Convertible Note) from an existing preferred stock holder that also is an affiliate of one of the Company’s distributors. The December 2012 Convertible Note had an initial maturity date of October 16, 2015. During the initial approximately three-year (two-year and ten-month) term, the December 2012 Convertible Note accrued interest at 10% per annum. | |||||||||||
Under the terms of the note, the December 2012 Convertible Note could not have been pre-paid unless such prepayment was mandated by a sale event. A sale event as defined in the agreement was the transfer of substantially all of the Company’s assets, a transaction or series of transactions that result in the transfer of more than 50% voting power of the Company, or transactions that result in gross proceeds of at least $120,000,000 (Sale Event). In the case of a Sale Event, the holder could have elected to either convert all outstanding principal and accrued interest into shares of common stock in accordance with the conversion terms of this agreement or receive cash equal to the principal and accrued interest then outstanding multiplied by 133.33% if the Sale Event occurred prior to or as of June 30, 2013 or multiplied by 142.86% if the Sale Event occurred after June 30, 2013. | |||||||||||
Under the terms of the note, a Qualified Financing meant an equity financing for which the gross proceeds were at least $20,000,000 and at least 50% of the amount invested comes from sources other than holders of the Company’s equity, strategic investors, or affiliates (Qualified Financing). In the event of a Qualified Financing, all outstanding principal and unpaid interest on the December 2012 Convertible Note would automatically convert into new securities issued and sold in such qualified financing at a rate of 75% of the purchase price of such new securities provided the closing occurred on or prior to June 30, 2013. The conversion rate would adjust to 70% of the purchase price of such new securities, if the closing occurred after June 30, 2013. Upon the closing of the IPO on August 7, 2013, all outstanding principal and accrued interest of the December 2012 Convertible Note was converted into shares of the Company’s common stock at a rate of 70% of the per share price (See Note 15). | |||||||||||
In the event of a non-qualified financing (Non-Qualified Financing) or the Sale Event, the holder of the December 2012 Convertible Note would have had the right, but not the obligation, to convert all or a part of the outstanding principal and unpaid interest on the December 2012 Convertible Note into the same type of securities issued in the Non-Qualified Financing. A Non-Qualified Financing included either a convertible note financing or an equity transaction that did not qualify as a Qualified Financing. | |||||||||||
If the Non-Qualified Financing related to an equity financing or Sale Event, the number of shares of common stock or common stock equivalents to be received by the holder of the December 2012 Convertible Note would have been calculated by dividing the principal and unpaid accrued interest elected to be converted by the holder by a price per share equal to the price per share paid in the Non-Qualified Financing multiplied by a conversion discount. | |||||||||||
If the Non-Qualified Financing related to a debt financing, the December 2012 Convertible Note holder would have received new convertible notes convertible into the shares of common stock or common stock equivalents at a per share price equal to the conversion price per share applicable to the other convertible debt issued in the Non-Qualified Financing multiplied by a conversion discount. In each case, if the Non-Qualified Financing had occurred on or before June 30, 2013, the conversion rate would have been equal to 75%, and thereafter the conversion rate would have been equal to 70%. | |||||||||||
On the issuance date and at each reporting date prior to the conversion, the Company assessed the probability of the potential conversion scenarios under the terms of the December 2012 Convertible Note and determined that the predominant settlement feature of the December 2012 Convertible Note was the conversion of the December 2012 Convertible Note into shares of the Company’s common stock issuable at a 25% or 30% discount to the per share price payable in connection with the completion of a Qualified Financing or a Sale Event during the term of the arrangement. As the predominant settlement feature of the December 2012 Convertible Note was to settle a fixed monetary amount in a variable number of shares, the December 2012 Convertible Note fell within the scope of ASC 480. Accordingly, the Company determined that the December 2012 Convertible Note should be recorded at estimated fair value on its issuance date and adjusted to its estimated fair value as of each reporting date with the change in estimated fair value recorded as a component of change in estimated fair value of financial instruments in the Company’s condensed consolidated statements of operations. As a result of the IPO, the number of shares to be issued became known and the Company estimated the fair value of the convertible notes immediately prior to the conversion using the intrinsic method based on the IPO price of $12 per share. | |||||||||||
Following the issuance of the December 2012 Convertible Note, the Company estimated the fair value of the December 2012 Convertible Note as of the issuance date using a PWERM valuation consisting of six scenarios. This valuation included three initial public offering scenarios, two merger scenarios and a sale of the Company’s intellectual property along with the applicable conversion ratios based on the estimated timing of each scenario. Based on this valuation, the Company estimated the fair value of the December 2012 Convertible Note to be $16,355,000 as of the issuance date. As the holder of the December 2012 Convertible Note was an affiliate of one of the Company’s distributors, the $3,855,000 excess of the estimated fair value of the December 2012 Convertible Note on the date of issuance over gross cash proceeds was recorded as a reduction of revenue to the extent of revenue recognized from the distributor, $245,000 ($110,000 from license revenue and $135,000 from product revenues), and the remaining excess of $3,610,000 was recorded separately to an operating expense in accordance with ASC 605-50, Customer Payments and Incentives, in the Company’s condensed consolidated statements of operations for the year ended December 31, 2012. | |||||||||||
As of December 31, 2012 and immediately prior to conversion on August 7, 2013, the estimated fair value of the December 2012 Convertible Note was $16,545,000 and $19,072,000, respectively. Between December 31, 2012 and August 7, 2013, the estimated fair value of the December 2012 Convertible Note increased by $1,767,000, which was recognized as additional expense in the change in estimated fair value of financial instruments for the nine months ended September 30, 2013 in the Company’s condensed consolidated statements of operations. | |||||||||||
The December 2012 Convertible Note purchase agreement also required the Company to use the proceeds from this note to repay all outstanding obligations under the April 2012 Senior Secured Promissory Note within 35 days of closing as discussed in Note 10. | |||||||||||
First and Second May 2013 Convertible Notes | |||||||||||
On May 22, 2013, the Company completed the sale of convertible notes under a convertible note purchase agreement in the amount of $3,529,000 in a private placement to 22 investors (First May 2013 Convertible Notes). The First May 2013 Convertible Notes accrued interest at a rate of 10% per annum and would have matured on May 22, 2016. | |||||||||||
In addition, on May 28, 2013, the Company completed the sale of a convertible note under a separate convertible note purchase agreement in the amount of $3,000,000 in a private placement (Second May 2013 Convertible Note). The Second May 2013 Convertible Note accrued interest at a rate of 10% per annum and would have matured on May 30, 2016. | |||||||||||
Under the terms of the notes, no payments were due under the First and Second May 2013 Convertible Notes until maturity. In an event of a Qualified Financing, all outstanding principal and accrued interest due under the First and Second May 2013 Convertible Notes would automatically convert into the number of shares of the Company’s common stock determined by dividing such unpaid amounts by 70% of the per share price of the Company’s common stock sold in such qualified financing. Upon the closing of the IPO in August 2013, all outstanding principal and accrued interest of the First and Second May 2013 Convertible Notes were converted into shares of the Company’s common stock at a rate of 70% of the per share price (See Note 15). | |||||||||||
Alternatively, in the earlier event of a Non-Qualified Financing of equity or debt securities the First and Second May 2013 Convertible Notes could have been converted, at the option of the holder, into the same type of securities issued in such financing, and in the earlier of a Sale Event, the First and Second May 2013 Convertible Notes would have been either, at the option of the holder, repaid the principal and accrued interest then outstanding multiplied by 142.86% or converted at a discount into shares of the Company’s common stock. | |||||||||||
If the Qualified Financing, Non-Qualified Financing, or Sale Event had not occurred from the date of issuance of the convertible note through January 14, 2014, the holder of the Second May 2013 Convertible Note would have been able to elect to convert all outstanding principal and accrued interest into a number of shares of common stock determined by dividing this amount by the greater of (i) the per share price into which the Outstanding Balance under the Second May Convertible Note would be converted at their maturity in the event a Qualified Financing had not occurred as of September 30, 2013 or (ii) the purchase price paid per share for the most recent Non-Qualified Financing that occurred prior to a Sale Event, provided such Non-Qualified Financing would have been at least $2,000,000 and at least 50% of the proceeds of such Non-Qualified Financing would have been from persons or entities who were not common shareholders, or common share equivalents or affiliates of the Company. | |||||||||||
On the issuance date and at each reporting date prior to the conversion, the Company assessed the probability of potential conversion under its terms of the First and Second May 2013 Convertible Notes and determined that the predominate settlement feature of the First and Second May 2013 Convertible Notes was the conversion of the First and Second May 2013 Convertible Notes into shares of the Company’s common stock issuable at a 30% discount to the per share price payable upon the completion of a Qualified IPO, an Acquisition, or Qualified Equity Financing. As the predominant settlement feature of the First and Second May 2013 Convertible Notes was to settle a fixed monetary amount in a variable number of shares, the First and Second May 2013 Convertible Notes fell within the scope of ASC 480. Accordingly, the First and Second May 2013 Convertible Notes were recorded at estimated fair value on their issuance dates and were adjusted to estimated fair value as of each reporting date with the change in estimated fair value recorded as a component of change in estimated fair value of financial instruments in the Company’s condensed consolidated statements of operations. As a result of the IPO, the number of shares to be issued became known and the Company estimated the fair value of the convertible notes immediately prior to the conversion using the intrinsic method based on the IPO price of $12 per share. | |||||||||||
The Company estimated the fair value of the First May 2013 Convertible Notes as of the issuance date to be $4,907,000. As the Company received cash proceeds of $3,529,000 through the issuance of the First Convertible Note, the Company determined that $1,378,000 of the excess of the estimated fair value of the First May 2013 Convertible Note on the issuance date over cash proceeds to the Company represented a deemed dividend to preferred stockholders, and this amount was reflected in the net loss attributable to common stockholders for the nine months ended September 30, 2013 in the Company’s condensed consolidated statements of operations. | |||||||||||
Immediately prior to conversion in connection with the closing of the IPO on August 7, 2013, the estimated fair value of the First May 2013 Convertible Note was $5,147,000. The estimated fair value of the First May 2013 Convertible Note increased by $166,000 during this period, which was recognized as additional expense in the change in estimated fair value of financial instruments for the nine months ended September 30, 2013 in the Company’s condensed consolidated statements of operations. | |||||||||||
The Company estimated the fair value of the Second May 2013 Convertible Note as of the issuance date to be $4,162,000. As the Company received cash proceeds of $3,000,000 through the issuance of the Second May 2013 Convertible Note, $1,162,000 of the excess of the estimated fair value of the Second May 2013 Convertible Note on the issuance date over cash proceeds to the Company was recorded as additional interest expense for the nine months ended September 30, 2013 in the Company’s condensed consolidated statements of operations. | |||||||||||
Immediately prior to conversion, as of August 7, 2013, the estimated fair value of the Second May 2013 Convertible Note was $4,369,000. The estimated fair value of the Second May 2013 Convertible Note increased by $149,000 during this period, which was recognized as additional expense in the change in estimated fair value of financial instruments for the nine months ended September 30, 2013 in the Company’s condensed consolidated statements of operations. |
Stock_Option_Plans
Stock Option Plans | 9 Months Ended |
Sep. 30, 2013 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ' |
Stock Option Plans | ' |
12. Stock Option Plans | |
In August 2013, the Company’s Board of Directors adopted the 2013 Stock Incentive Plan (2013 Plan) covering officers, employees, directors of, and consultants to, the Company. The 2013 Plan allows for the granting of the following types of “stock awards”: incentive stock options, non-qualified stock options, stock appreciation rights, restricted stock, restricted stock units and dividend equivalent rights. The maximum aggregate number of shares of the Company’s common stock which may be issued pursuant to the 2013 Plan was 1,600,000 in addition to any shares of common stock reserved for issuance pursuant to future grants under the 2011 Stock Plan (2011 Plan). In addition, the number of shares authorized for issuance pursuant to the 2013 Plan will be increased by any additional shares that would otherwise return to the 2011 Plan as a result of the forfeiture, termination or expiration of awards previously granted under the 2011 Plan. Further, the 2013 Plan will provide for annual increases in the number of shares available for issuance thereunder on the first business day of each fiscal year equal to 3.5% of the number of shares of common stock outstanding. No new stock awards may be granted under the 2011 Plan. | |
As of September 30, 2013, there were 2,675,000 options outstanding and 1,251,000 options available for grant under the outstanding option plans. | |
The Company recognized $537,000 and $86,000 in compensation for the three months ended September 30, 2013 and 2012, respectively. The Company recognized $1,125,000 and $466,000 in compensation for the nine months ended September 30, 2013 and 2012, respectively. During the three and nine months ended September 30, 2013, the Company granted 717,000 and 917,000 options, respectively, at a weighted-average exercise price of $16.59 and $15.58 per share, respectively. During the three and nine months ended September 30, 2013, 80,000 and 93,000 options were exercised, respectively, at a weighted-average exercise price of $0.89 and $0.87 per share, respectively. |
Commitments_and_Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2013 | |
Commitments And Contingencies Disclosure [Abstract] | ' |
Commitments and Contingencies | ' |
13. Commitments and Contingencies | |
Commitments | |
On September 9, 2013, the Company entered into a lease agreement for a new 28,700 square foot office and laboratory facility located in Davis, California. The initial term of the lease is for a period of 60 months commencing on the later of the date of substantial completion of initial improvements to the leased property, or May 1, 2014. The monthly base rent is $46,000 for the first 12 months with a 3% increase each year thereafter. The Company will have the option to extend the lease term twice for a period of five years each. | |
Contingencies | |
The Company is subject to legal proceedings and claims that arise in the normal course of business. As of September 30, 2013, there were no current proceedings or litigation involving the Company that management believes would have a material adverse impact on its business, financial position, results of operations or cash flows. |
Reverse_Stock_Split
Reverse Stock Split | 9 Months Ended |
Sep. 30, 2013 | |
Text Block [Abstract] | ' |
Reverse Stock Split | ' |
14. Reverse Stock Split | |
On August 1, 2013, the Company amended and restated its certificate of incorporation to effect the conversion of its outstanding convertible preferred stock into common stock on a 1-for-1 basis followed immediately by a reverse split of shares of its common stock (including the common stock issued upon conversion of the convertible preferred stock) at a 1-for-3.138458 ratio (the “Reverse Stock Split”). The amendment also increased the number of shares of common stock authorized for issuance to 250,000,000 shares and the number of shares of preferred stock authorized for issuance to 20,000,000. The par value of the common stock and preferred stock was not adjusted as a result of the Reverse Stock Split. | |
All issued and outstanding common stock, preferred stock, and warrants for common stock or preferred stock, and the related per share amounts contained in the condensed consolidated financial statements, have been retroactively adjusted to give effect to this Reverse Stock Split for all periods presented. |
Initial_Public_Offering
Initial Public Offering | 9 Months Ended | |||
Sep. 30, 2013 | ||||
Text Block [Abstract] | ' | |||
Initial Public Offering | ' | |||
15. Initial Public Offering | ||||
In August 2013, the Company closed its initial public offering of 5,462,500 shares of its common stock (inclusive of 712,500 shares of common stock sold upon the exercise of the underwriters’ option to purchase additional shares). The public offering price of the shares sold in the offering was $12.00 per share. The total gross proceeds from the offering to the Company were $65,550,000, and after deducting underwriting discounts and commissions and offering expenses payable by the Company, the aggregate net proceeds received by the Company totaled approximately $56,105,000. In connection with the IPO: | ||||
• | all outstanding shares of convertible preferred stock were converted into 8,514,000 shares of common stock, including 10,000 shares issued upon the cash exercise of Series B convertible preferred stock warrants; | |||
• | all outstanding principal and accrued interest of the convertible notes were converted into 3,741,000 shares of common stock; | |||
• | 47,000 shares of common stock were issued upon the net exercise of common stock warrants; | |||
• | 3,000 shares of common stock were issued upon the cash exercise of common stock warrants; and | |||
• | the Series A and Series C convertible preferred stock warrants were net exercised into 71,000 shares of common stock. | |||
After the closing of the IPO, the Company had 19,133,000 shares of common stock and 151,000 warrants to purchase common stock outstanding and there were no shares of convertible preferred stock, preferred stock warrants or balances related to convertible notes outstanding. |
Significant_Accounting_Policie1
Significant Accounting Policies (Policies) | 9 Months Ended | ||||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||||
Accounting Policies [Abstract] | ' | ||||||||||||||||||||||||
Basis of Presentation | ' | ||||||||||||||||||||||||
Basis of Presentation | |||||||||||||||||||||||||
The condensed consolidated financial statements include the accounts of the Company and its wholly-owned subsidiary. All significant intercompany balances and transactions have been eliminated in consolidation. | |||||||||||||||||||||||||
The accompanying financial information as of September 30, 2013 and for the three and nine months ended September 30, 2013 and 2012 has been prepared by the Company, without audit, pursuant to the rules and regulations of the SEC. Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States (U.S.) have been condensed or omitted pursuant to such rules and regulations. The December 31, 2012 consolidated balance sheet was derived from audited consolidated financial statements, but does not include all disclosures required by accounting principles generally accepted in the U.S. However, the Company believes that the disclosures are adequate to make the information presented not misleading. These condensed consolidated financial statements should be read in conjunction with the annual consolidated financial statements and the notes thereto, included in the Prospectus. | |||||||||||||||||||||||||
In the opinion of management, the condensed consolidated financial statements as of September 30, 2013 and for the three and nine months ended September 30, 2013 and 2012 reflect all adjustments, which are normal recurring adjustments, necessary to present a fair statement of financial position, results of operations, comprehensive loss, convertible preferred stock and stockholders’ equity (deficit) and cash flows. The results of operations for the three and nine months ended September 30, 2013 are not necessarily indicative of the operating results for the full fiscal year or any future periods. | |||||||||||||||||||||||||
Cash and Cash Equivalents | ' | ||||||||||||||||||||||||
Cash and Cash Equivalents | |||||||||||||||||||||||||
The Company considers all highly liquid financial instruments purchased with a maturity of three months or less to be cash equivalents. Cash and cash equivalents consist of cash on deposit, money market funds and certificates of deposit accounts (CDs) with U.S. financial institutions. The Company is exposed to credit risk in the event of default by financial institutions to the extent that cash and cash equivalents balances with financial institutions are in excess of amounts that are insured by the Federal Deposit Insurance Corporation. The Company has not experienced any losses on these deposits. | |||||||||||||||||||||||||
Short-Term Investments | ' | ||||||||||||||||||||||||
Short-Term Investments | |||||||||||||||||||||||||
The Company’s short-term investments consist of certificates of deposit with original maturities less than one year but greater than three months which are classified as held-to-maturity. Certificates of deposit are stated at their amortized cost with realized gains or losses, if any, reported as other income or expenses in the condensed consolidated statements of operations. The Company routinely evaluates the realizability of its short-term investments and recognizes an impairment charge when a decline in the estimated fair value of a short-term investment is below the amortized cost and determined to be other-than-temporary. The Company considers various factors in determining whether to recognize an impairment charge, including the duration of time and the severity to which the fair value has been less than amortized cost, any adverse changes in the investee’s financial condition, and the Company’s intent and ability to hold the short-term investment for a period of time sufficient to allow for any anticipated recovery in market value. To date, the Company has not experienced any losses on its short-term investments. | |||||||||||||||||||||||||
Concentration of Credit Risk | ' | ||||||||||||||||||||||||
Concentration of Credit Risk | |||||||||||||||||||||||||
Financial instruments that potentially subject the Company to concentrations of credit risk consist principally of cash, cash equivalents, short-term investments, accounts receivable and debt. The Company deposits its cash, cash equivalents and short-term investments with high credit quality domestic financial institutions with locations in the U.S. Such deposits may exceed federal deposit insurance limits. The Company believes the financial risks associated with these financial instruments are minimal. | |||||||||||||||||||||||||
The Company’s customer base is dispersed across many different geographic areas, and currently most customers are pest management distributors in the U.S. Generally, receivables are due 30 to 90 days from the invoice date and are considered past due after this date, although the Company may offer extended terms from time to time. | |||||||||||||||||||||||||
For the three months ended September 30, 2013 and 2012, 27% and 5%, respectively, of the Company’s revenues were generated from international customers. For the nine months ended September 30, 2013 and 2012, 11% and 16%, respectively, of the Company’s revenues were generated from international customers. | |||||||||||||||||||||||||
From inception through December 31, 2012, the Company’s principal source of revenues was its Regalia product line. During the three and nine months ended September 30, 2013, Grandevo and Regalia were the principal sources of the Company’s total revenues. For the three months ended September 30, 2013 and 2012, these two product lines accounted for 94% and 86%, respectively, of the Company’s total revenues. For the nine months ended September 30, 2013 and 2012, these two product lines accounted for 97% and 92%, respectively, of the Company’s total revenues. | |||||||||||||||||||||||||
Customers with 10% or more of the Company’s total revenues consist of the following: | |||||||||||||||||||||||||
Customer | Customer | Customer | Customer | Customer | Customer | ||||||||||||||||||||
A | B | C | D | E | F | ||||||||||||||||||||
For the three months ended September 30, | |||||||||||||||||||||||||
2013 | 18 | % | 17 | % | * | * | * | 10 | % | ||||||||||||||||
2012 | 35 | % | * | 16 | % | 13 | % | * | 12 | % | |||||||||||||||
For the nine months ended September 30, | |||||||||||||||||||||||||
2013 | 39 | % | * | * | * | * | * | ||||||||||||||||||
2012 | 36 | % | * | 14 | % | * | 11 | % | * | ||||||||||||||||
* | Represents less than 10% of total revenues | ||||||||||||||||||||||||
Customers with 10% or more of the Company’s outstanding accounts receivable consist of the following: | |||||||||||||||||||||||||
Customer A | Customer B | Customer C | Customer D | Customer E | |||||||||||||||||||||
September 30, 2013 | * | * | 22 | % | * | 37 | % | ||||||||||||||||||
December 31, 2012 | 33 | % | 17 | % | 11 | % | 11 | % | * | ||||||||||||||||
* | Represents less than 10% of accounts receivable | ||||||||||||||||||||||||
Inventories | ' | ||||||||||||||||||||||||
Inventories | |||||||||||||||||||||||||
Inventories are stated at the lower of cost or market value (net realizable value or replacement cost) and include the cost of material and external labor and manufacturing costs. Cost is determined on the first-in, first-out basis. The Company provides for inventory reserves when conditions indicate that the selling price may be less than cost due to physical deterioration, obsolescence, changes in price levels, or other factors. Additionally, the Company provides reserves for excess and slow-moving inventory on hand that is not expected to be sold to reduce the carrying amount of excess slow-moving inventory to its estimated net realizable value. The reserves are based upon estimates about future demand from the Company’s customers and distributors and market conditions. As of September 30, 2013 and December 31, 2012, the Company had no reserves against its inventories. | |||||||||||||||||||||||||
Deferred Cost of Product Revenues | ' | ||||||||||||||||||||||||
Deferred Cost of Product Revenues | |||||||||||||||||||||||||
Deferred cost of product revenues are stated at the lower of cost or net realizable value and include product sold where title has transferred but the criteria for revenue recognition have not been met. As of September 30, 2013, the Company recorded current deferred cost of product revenues of $357,000 which is included in prepaid expenses and other current assets in the condensed consolidated balance sheet. As of December 31, 2012, the Company had no deferred cost of product revenues. During the three and nine months ended September 30, 2013, the company recorded an adjustment of $167,000 to write down the carrying value of deferred cost of product revenues to net realizable value. | |||||||||||||||||||||||||
Acquisition | ' | ||||||||||||||||||||||||
Acquisition | |||||||||||||||||||||||||
On July 19, 2012 (Acquisition Date), the Company purchased land, building and equipment (Manufacturing Plant) for $1,459,000, including $341,000 of transaction costs. The Manufacturing Plant is located in Bangor, Michigan. Prior to the acquisition, the Manufacturing Plant was owned by a bank and sold in a foreclosure auction. Accordingly, the purchase price for the Manufacturing Plant was less than the estimated fair value of the assets acquired by $257,000. The excess of fair value of the assets acquired over the purchase price was allocated on a relative fair value basis to all assets acquired. The acquisition of the Manufacturing Plant will allow the Company to manufacture certain products internally and improve the overall operating efficiencies and margins of the business as the production of these products historically has been outsourced. | |||||||||||||||||||||||||
The acquisition was accounted for as an asset acquisition in accordance with ASC 805, Business Combinations. The assets acquired under the Manufacturing Plant acquisition have been included in the Company’s condensed consolidated financial statements from the Acquisition Date. The purchase price was allocated to assets acquired as of the Acquisition Date. | |||||||||||||||||||||||||
Prior to the allocation of the excess of fair value of the assets acquired over the purchase price, the assets acquired are first measured at their fair values. The Company engaged a third-party valuation firm to assist with its estimated fair value of the assets acquired. The following methods and assumptions are used to estimate the fair value of each class of asset acquired: | |||||||||||||||||||||||||
Land—Market approach based on similar, but not identical, transactions in the market. Adjustments to comparable sales are based on both the quantitative and qualitative data. | |||||||||||||||||||||||||
Building—The cost approach, market approach and income approach were used to assess fair value. Cost approach is based on replacement cost new less depreciation adjusted for physical deterioration, functional obsolescence and external/economic obsolescence, as applicable. The market approach is based on similar, but not identical, transactions in the market using both quantitative and qualitative data. The income approach is based on the direct capitalization method using similar but not identical lease rates and making an assessment of net operating income. | |||||||||||||||||||||||||
Equipment—Both the cost approach and the market approach were used to assess fair value. Cost approach is based on replacement cost new less depreciation adjusted for physical deterioration, functional obsolescence and external/economic obsolescence, as applicable. The market approach is based on similar, but not identical, transactions in the market using both quantitative and qualitative data. | |||||||||||||||||||||||||
The following table summarizes the estimated fair value of the assets acquired as of the Acquisition Date, which were determined using level two and three inputs as described above (in thousands): | |||||||||||||||||||||||||
JULY 19, | |||||||||||||||||||||||||
2012 | |||||||||||||||||||||||||
Land | $ | 1 | |||||||||||||||||||||||
Building | 314 | ||||||||||||||||||||||||
Equipment | 1,144 | ||||||||||||||||||||||||
Assets acquired | $ | 1,459 | |||||||||||||||||||||||
As the Manufacturing Plant had not yet been placed in service as of September 30, 2013, the assets acquired, except the land, were recorded as construction in process as a component of property, plant and equipment in the accompanying condensed consolidated balance sheets as of September 30, 2013 and December 31, 2012. | |||||||||||||||||||||||||
Revenue Recognition | ' | ||||||||||||||||||||||||
Revenue Recognition | |||||||||||||||||||||||||
The Company recognizes revenues when persuasive evidence of an arrangement exists, delivery and transfer of title has occurred or services have been rendered, the price is fixed or determinable, and collectability is reasonably assured, unless contractual obligations, acceptance provisions or other contingencies exist. If such obligations or provisions exist, revenue is recognized after such obligations or provisions are fulfilled or expire. | |||||||||||||||||||||||||
Product revenues consist of revenues generated from sales to distributors and from sales of our products to direct customers, net of rebates and cash discounts. For sales of products made to distributors, the Company considers a number of factors in determining whether revenue is recognized upon transfer of title to the distributor, or when payment is received. These factors include, but are not limited to, whether the payment terms offered to the distributor in comparison to the Company’s historical terms are considered to be longer than typical, the distributor history of adhering to the terms of its contractual arrangements with the Company, whether the Company has a pattern of granting concessions for the benefit of the distributor, and whether there are other conditions that may indicate that the sale to the distributor is not substantive. When the Company offers payment terms that are considered to be extended in comparison to the Company’s historical terms, the Company considers the arrangement not to be fixed and determinable, and accordingly, revenue is deferred until payment is due. The costs associated with such deferral are also deferred and classified in prepaid expenses and other current assets in the condensed consolidated balance sheet. The Company currently recognizes revenue primarily on the sell-in method with its distributors. Distributors do not have price protection or return rights. | |||||||||||||||||||||||||
As of September 30, 2013, the Company recorded current deferred product revenues of $770,000. As of December 31, 2012, the Company had no deferred product revenues. | |||||||||||||||||||||||||
From time to time, the Company offers certain product rebates, which are recorded as reductions to product revenues. An accrued liability for these product rebates is recorded at the time the revenues are recorded. | |||||||||||||||||||||||||
The Company recognizes license revenues pursuant to strategic collaboration and distribution agreements under which the Company receives payments for the achievement of testing validation, regulatory progress and commercialization events. As these activities and payments are associated with exclusive rights that the Company provides in connection with strategic collaboration and distribution agreements over the term of the agreements, revenues related to the payments received are deferred and recognized over the term of the exclusive distribution period of the respective agreement. No payments were received under these agreements during the three and nine months ended September 30, 2013 and the three months ended September 30, 2012, and $1,000,000 was received during the nine months ended September 30, 2012. For the three months ended September 30, 2013 and 2012, the Company recognized $81,000 and $76,000, respectively, as license revenues in the accompanying condensed consolidated statements of operations. For the nine months ended September 30, 2013 and 2012, the Company recognized $243,000 and $207,000, respectively, as license revenues in the accompanying condensed consolidated statements of operations. At September 30, 2013, the Company recorded current and non-current deferred revenues of $324,000 and $1,453,000, respectively, related to payments received under these agreements. At December 31, 2012, the Company recorded current and non-current deferred revenues of $324,000 and $1,696,000 respectively, related to payments received under these agreements. | |||||||||||||||||||||||||
Recently Issued Accounting Pronouncements | ' | ||||||||||||||||||||||||
Recently Issued Accounting Pronouncements | |||||||||||||||||||||||||
There have been no new accounting pronouncements issued during the nine months ending September 30, 2013 that are of significance, or potential significance, to the Company. Any recent accounting pronouncements that are of significance, or potential significance, to the Company are set forth in the notes of the annual consolidated financial statements included in the Prospectus. |
Significant_Accounting_Policie2
Significant Accounting Policies (Tables) | 9 Months Ended | ||||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||||
Accounting Policies [Abstract] | ' | ||||||||||||||||||||||||
Schedule of Concentration of Credit Risk Percentage | ' | ||||||||||||||||||||||||
Customers with 10% or more of the Company’s total revenues consist of the following: | |||||||||||||||||||||||||
Customer | Customer | Customer | Customer | Customer | Customer | ||||||||||||||||||||
A | B | C | D | E | F | ||||||||||||||||||||
For the three months ended September 30, | |||||||||||||||||||||||||
2013 | 18 | % | 17 | % | * | * | * | 10 | % | ||||||||||||||||
2012 | 35 | % | * | 16 | % | 13 | % | * | 12 | % | |||||||||||||||
For the nine months ended September 30, | |||||||||||||||||||||||||
2013 | 39 | % | * | * | * | * | * | ||||||||||||||||||
2012 | 36 | % | * | 14 | % | * | 11 | % | * | ||||||||||||||||
* | Represents less than 10% of total revenues | ||||||||||||||||||||||||
Customers with 10% or more of the Company’s outstanding accounts receivable consist of the following: | |||||||||||||||||||||||||
Customer A | Customer B | Customer C | Customer D | Customer E | |||||||||||||||||||||
September 30, 2013 | * | * | 22 | % | * | 37 | % | ||||||||||||||||||
December 31, 2012 | 33 | % | 17 | % | 11 | % | 11 | % | * | ||||||||||||||||
* | Represents less than 10% of accounts receivable | ||||||||||||||||||||||||
Summary of Estimated Fair Value of Assets Acquired | ' | ||||||||||||||||||||||||
The following table summarizes the estimated fair value of the assets acquired as of the Acquisition Date, which were determined using level two and three inputs as described above (in thousands): | |||||||||||||||||||||||||
JULY 19, | |||||||||||||||||||||||||
2012 | |||||||||||||||||||||||||
Land | $ | 1 | |||||||||||||||||||||||
Building | 314 | ||||||||||||||||||||||||
Equipment | 1,144 | ||||||||||||||||||||||||
Assets acquired | $ | 1,459 | |||||||||||||||||||||||
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Fair Value Disclosures [Abstract] | ' | ||||||||||||||||
Assets and Liabilities Measured at Fair Value on Recurring Basis | ' | ||||||||||||||||
The following table presents the Company’s financial assets and liabilities measured at fair value on a recurring basis as of September 30, 2013 and December 31, 2012 (in thousands): | |||||||||||||||||
30-Sep-13 | |||||||||||||||||
TOTAL | LEVEL 1 | LEVEL 2 | LEVEL 3 | ||||||||||||||
Assets | |||||||||||||||||
Money market funds | $ | 28,660 | $ | 28,660 | $ | — | $ | — | |||||||||
DECEMBER 31, 2012 | |||||||||||||||||
TOTAL | LEVEL 1 | LEVEL 2 | LEVEL 3 | ||||||||||||||
Assets | |||||||||||||||||
Money market funds | $ | 7,668 | $ | 7,668 | $ | — | $ | — | |||||||||
Liabilities | |||||||||||||||||
Common stock warrant liability | $ | 301 | $ | — | $ | — | $ | 301 | |||||||||
Preferred stock warrant liability | 1,884 | — | — | 1,884 | |||||||||||||
Convertible notes payable | 41,860 | — | — | 41,860 | |||||||||||||
Total liabilities at fair value | $ | 44,045 | $ | — | $ | — | $ | 44,045 | |||||||||
Reconciliation of Liabilities Measured At Fair Value Using Significant Unobservable Inputs (Level 3) | ' | ||||||||||||||||
The following table provides a reconciliation of the beginning and ending balances for the common and preferred stock warrant liabilities measured at fair value using significant unobservable inputs (Level 3). The amounts included in the “Transfers out of Level 3” represent the beginning balance in the interim quarter during which it was transferred (in thousands): | |||||||||||||||||
COMMON | |||||||||||||||||
STOCK | |||||||||||||||||
WARRANT | |||||||||||||||||
LIABILITY | |||||||||||||||||
Fair value at December 31, 2012 | $ | 301 | |||||||||||||||
Warrants issued | 900 | ||||||||||||||||
Change in fair value recorded in change in fair value of financial instruments | 377 | ||||||||||||||||
Transfers out of Level 3 | (434 | ) | |||||||||||||||
Reclassified to stockholders’ equity (deficit) | (1,144 | ) | |||||||||||||||
Fair value at September 30, 2013 | $ | — | |||||||||||||||
PREFERRED | |||||||||||||||||
STOCK | |||||||||||||||||
WARRANT | |||||||||||||||||
LIABILITY | |||||||||||||||||
Fair value at December 31, 2012 | $ | 1,884 | |||||||||||||||
Change in fair value recorded in change in fair value of financial instruments | (823 | ) | |||||||||||||||
Transfers out of Level 3 | (140 | ) | |||||||||||||||
Reclassified to stockholders’ equity (deficit) | (921 | ) | |||||||||||||||
Fair value at September 30, 2013 | $ | — | |||||||||||||||
The following table provides a reconciliation of the beginning and ending balances for the convertible notes measured at fair value using significant unobservable inputs (Level 3). The amounts included in the “Transfers out of Level 3” represent the beginning balance in the interim quarter during which it was transferred (in thousands): | |||||||||||||||||
Fair value at December 31, 2012 | $ | 41,860 | |||||||||||||||
Convertible notes issued | 9,069 | ||||||||||||||||
Convertible notes cancelled | (1,360 | ) | |||||||||||||||
Accrued interest | 1,299 | ||||||||||||||||
Change in fair valued recorded in change in fair value of financial instruments | (2,634 | ) | |||||||||||||||
Transfers out of Level 3 | (48,234 | ) | |||||||||||||||
Fair value at September 30, 2013 | $ | — |
Shortterm_Investments_Tables
Short-term Investments (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Investments Debt And Equity Securities [Abstract] | ' | ||||||||||||||||
Amortized Cost and Estimated Fair Values of Short-Term Investments | ' | ||||||||||||||||
The amortized cost and estimated fair values of short-term investments are summarized in the following table (in thousands): | |||||||||||||||||
30-Sep-13 | |||||||||||||||||
Amortized | Gross | Gross | Estimated | ||||||||||||||
Cost | Unrealized | Unrealized | Fair Value | ||||||||||||||
Gains | Losses | ||||||||||||||||
Securities Held-to-Maturity | |||||||||||||||||
Certificates of deposit, with maturities less than 1 year | $ | 12,684 | $ | 1 | $ | -5 | $ | 12,680 | |||||||||
Inventories_Tables
Inventories (Tables) | 9 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Inventory Disclosure [Abstract] | ' | ||||||||
Schedule of Inventories | ' | ||||||||
Inventories consist of the following (in thousands): | |||||||||
SEPTEMBER 30, | DECEMBER 31, | ||||||||
2013 | 2012 | ||||||||
Raw materials | $ | 4,652 | $ | 3,204 | |||||
Work in progress | 3,189 | 607 | |||||||
Finished goods | 2,913 | 1,061 | |||||||
$ | 10,754 | $ | 4,872 | ||||||
Net_Loss_Per_Share_Tables
Net Loss Per Share (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Earnings Per Share [Abstract] | ' | ||||||||||||||||
Schedule of Anti-dilutive Securities Excluded from Computation of Diluted Net Loss Per Share | ' | ||||||||||||||||
The following table sets forth the weighted average potential shares of common stock that are not included in the calculation of diluted net loss per share because to do so would be anti-dilutive for each period presented (in thousands): | |||||||||||||||||
THREE MONTHS ENDED | NINE MONTHS ENDED | ||||||||||||||||
30-Sep | 30-Sep | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Convertible preferred stock | 2,714 | 8,504 | 6,274 | 8,504 | |||||||||||||
Convertible notes (1) | 503 | — | 501 | — | |||||||||||||
Stock options outstanding | 2,369 | 1,749 | 2,211 | 1,672 | |||||||||||||
Warrants to purchase convertible preferred stock | 32 | 207 | 61 | 153 | |||||||||||||
Warrants to purchase common stock (2) | — | — | — | — | |||||||||||||
(1) | As of September 30, 2012, the Company had approximately $8,804,000, in contingently convertible notes payable and related accrued interest for which the contingencies related to conversion had not been met as of September 30, 2012. Therefore, it would have no dilutive or anti-dilutive impact until the contingency had been met effective upon the IPO in August 2013. Refer to Note 11 for further discussion. The Company used the if-converted method to determine the dilutive effect of convertible notes as of July 1, 2013, the beginning of the quarter when the contingency had been met. | ||||||||||||||||
(2) | In October 2012 and April 2013, the Company issued warrants to purchase a number of shares of common stock equal to 15% of the funded principal amount of the October 2012 Junior Secured Promissory Notes as defined in Note 10, divided by 70% of the value of common stock in a sale of the Company or a qualified initial public offering (Qualified IPO), with an exercise price of 70% of the value of common stock in a sale of the Company or a Qualified IPO. In June 2013, the Company issued warrants to purchase a number of shares of common stock equal to 10% of the total committed amount of the June 2013 Credit Facility as defined in Note 10, divided by 70% of the value of common stock in a sale of the Company or a Qualified IPO, with an exercise price of 70% of the value of common stock in a sale of the Company or a Qualified IPO. These warrants were contingently exercisable for which the contingencies related to exercise had not been met until the IPO in August 2013. Therefore, they would have no dilutive or anti-dilutive impact until the contingency had been met in August 2013. Refer to Note 10 for further discussion. The Company used the if-converted method to determine the dilutive effect of warrants to purchase common stock as of July 1, 2013, the beginning of the quarter when the contingency had been met. | ||||||||||||||||
Computation of Common Shares Upon Exercise of Warrants and Basic and Diluted Net Loss Per Share | ' | ||||||||||||||||
The numbers of shares of common stock issuable upon the exercise of warrants to purchase convertible preferred stock and upon the conversion of convertible preferred stock were at a ratio of one-to-one. | |||||||||||||||||
THREE MONTHS ENDED | NINE MONTHS ENDED | ||||||||||||||||
30-Sep | 30-Sep | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
(in thousands, except per share data) | |||||||||||||||||
Numerator: | |||||||||||||||||
Net loss | $ | (6,110 | ) | $ | (13,802 | ) | $ | (18,498 | ) | $ | (21,698 | ) | |||||
Deemed dividend on convertible notes | — | — | (1,378 | ) | (1,253 | ) | |||||||||||
Net loss attributable to common stockholders | $ | (6,110 | ) | $ | (13,802 | ) | $ | (19,876 | ) | $ | (22,951 | ) | |||||
Effect of potentially dilutive securities: | |||||||||||||||||
Convertible notes | (1,089 | ) | — | (118 | ) | — | |||||||||||
Warrants to purchase common stock | (201 | ) | — | (201 | ) | — | |||||||||||
Net loss for diluted earnings per share | $ | (7,400 | ) | $ | (13,802 | ) | $ | (20,195 | ) | $ | (22,951 | ) | |||||
Denominator: | |||||||||||||||||
Shares used for basic net loss per share | 12,888 | 1,262 | 5,187 | 1,253 | |||||||||||||
Effect of potentially dilutive securities: | |||||||||||||||||
Convertible notes | 1,043 | — | 20 | — | |||||||||||||
Warrants to purchase common stock | 86 | — | 22 | — | |||||||||||||
Weighted average shares outstanding for diluted earnings per share | 14,017 | 1,262 | 5,229 | 1,253 | |||||||||||||
Basic net loss per share: | $ | (0.47 | ) | $ | (10.94 | ) | $ | (3.83 | ) | $ | (18.32 | ) | |||||
Diluted net loss per share: | $ | (0.53 | ) | $ | (10.94 | ) | $ | (3.86 | ) | $ | (18.32 | ) | |||||
Other_Assets_Tables
Other Assets (Tables) | 9 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Deferred Costs Capitalized Prepaid And Other Assets Disclosure [Abstract] | ' | ||||||||
Summary of Other Assets | ' | ||||||||
Other assets consist of the following (in thousands): | |||||||||
SEPTEMBER 30, | DECEMBER 31, | ||||||||
2013 | 2012 | ||||||||
Prepaid initial public offering costs | $ | — | $ | 2,257 | |||||
Prepaid distribution fees | 127 | 134 | |||||||
Deferred financing costs | 195 | 261 | |||||||
Deposit for equipment | 463 | — | |||||||
Deposits on equipment leases | 184 | 43 | |||||||
Other assets | 88 | 90 | |||||||
$ | 1,057 | $ | 2,785 | ||||||
Accrued_Liabilities_Tables
Accrued Liabilities (Tables) | 9 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Payables And Accruals [Abstract] | ' | ||||||||
Schedule of Accrued Liabilities | ' | ||||||||
Accrued liabilities consist of the following (in thousands): | |||||||||
SEPTEMBER 30, | DECEMBER 31, | ||||||||
2013 | 2012 | ||||||||
Accrued compensation | $ | 1,593 | $ | 1,342 | |||||
Accrued expenses | 1,380 | 1,295 | |||||||
Accrued product rebates | — | 386 | |||||||
$ | 2,973 | $ | 3,023 | ||||||
Debt_Tables
Debt (Tables) | 9 Months Ended | ||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||
Schedule of Debt | ' | ||||||||||||||||||||
Debt consists of the following (in thousands): | |||||||||||||||||||||
SEPTEMBER 30, | DECEMBER 31, | ||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||
Promissory note bearing interest at 6.25% per annum, which is payable monthly through May 2013, collateralized by all of the Company’s inventories, chattel paper, accounts receivable, equipment and general intangibles (excluding certain financed equipment and intellectual property). The Promissory Note was repaid in May 2013 (1) | $ | — | $ | 35 | |||||||||||||||||
Term Loan (Term Loan) bearing interest at 7.00% per annum which is payable monthly through April 2016. The Term Loan is collateralized by all of the Company’s inventories, chattel paper, accounts receivable, equipment and general intangibles (excluding certain financed equipment and intellectual property) pledged as collateral under the Term Loan, subordinated (1) | 339 | 426 | |||||||||||||||||||
Promissory note bearing interest at 7.00% per annum which is payable monthly through November 2014, collateralized by all of the Company’s inventories, chattel paper, accounts receivable, equipment and general intangibles (excluding certain financed equipment and intellectual property), net of unamortized debt discount at September 30, 2013 of $2, subordinated (1) | 158 | 261 | |||||||||||||||||||
Senior secured promissory note (April 2012 Senior Secured Promissory Note) bearing interest at 15.00% per annum which is payable monthly through April 2017, collateralized by substantially all of the Company’s assets. The April 2012 Senior Secured Promissory Note was repaid in January 2013 | — | 8,374 | |||||||||||||||||||
Junior secured promissory notes (October 2012 and April 2013 Junior Secured Promissory Notes) bearing interest at 12.00% per annum which is payable monthly through October 2015, collateralized by substantially all of the Company’s assets, net of unamortized debt discount at September 30, 2013 of $509 (1) | 11,941 | 7,242 | |||||||||||||||||||
Debt | 12,438 | 16,338 | |||||||||||||||||||
Less current portion | (177 | ) | (8,572 | ) | |||||||||||||||||
$ | 12,261 | $ | 7,766 | ||||||||||||||||||
(1) | The lender’s security interest was subordinate to the holders of the April 2012 Senior Secured Promissory Note with the exception of its interest in equipment. | ||||||||||||||||||||
Consideration Received, Fair Values of Notes, Common Stock Warrants Issued and Calculation of the Gain on Extinguishment of Debt | ' | ||||||||||||||||||||
The following table shows the consideration received, fair values of the notes and common stock warrants issued and calculation of the gain on extinguishment of debt for the $3,750,000 Notes (in thousands): | |||||||||||||||||||||
Consideration received | |||||||||||||||||||||
Fair Value of October 2012 Subordinated Convertible Note | $ | 1,360 | |||||||||||||||||||
Cash | 2,500 | ||||||||||||||||||||
Total Consideration Received (a) | $ | 3,860 | |||||||||||||||||||
Notes and Warrants Issued | |||||||||||||||||||||
Principal Balance of Notes Issued | $ | 3,750 | |||||||||||||||||||
Debt Discount (1) | (291 | ) | |||||||||||||||||||
Fair Value of Notes Issued | 3,459 | ||||||||||||||||||||
Fair Value of Additional Common Stock Warrants Issued | 352 | ||||||||||||||||||||
Total Fair Value of Notes and Warrants Issued (b) | $ | 3,811 | |||||||||||||||||||
Gain on Extinguishment of Debt (a - b) | $ | 49 | |||||||||||||||||||
(1) | The amortization of this account is being recorded in interest expense on the condensed consolidated statements of operations over the term of the arrangement. | ||||||||||||||||||||
October 2012 Junior secured promissory notes [Member] | ' | ||||||||||||||||||||
Activity Related to Secured Promissory Note | ' | ||||||||||||||||||||
Activity related to the October 2012 and April 2013 Junior Secured Promissory Notes from December 31, 2012 through September 30, 2013 consisted of the following (in thousands): | |||||||||||||||||||||
DECEMBER 31, | ADDITIONS | AMORTIZATION | PRINCIPAL | SEPTEMBER 30, | |||||||||||||||||
2012 | OF DEBT | PAYMENTS | 2013 | ||||||||||||||||||
DISCOUNT | |||||||||||||||||||||
Principal | $ | 7,500 | $ | 4,950 | $ | — | $ | — | $ | 12,450 | |||||||||||
Debt discount related to issuance of common stock warrants (1) | (258 | ) | (113 | ) | 95 | — | (276 | ) | |||||||||||||
Discount related to the $3,750,000 Notes (1) | — | (291 | ) | 58 | — | (233 | ) | ||||||||||||||
$ | 7,242 | $ | 4,546 | $ | 153 | $ | — | $ | 11,941 | ||||||||||||
(1) | The amortization of this account is included in interest expense on the condensed consolidated statements of operations and as noncash interest expense in the condensed consolidated statement of cash flows. | ||||||||||||||||||||
April 2012 Senior secured promissory note [Member] | ' | ||||||||||||||||||||
Activity Related to Secured Promissory Note | ' | ||||||||||||||||||||
Activity related to the April 2012 Senior Secured Promissory Note from December 31, 2012 through September 30, 2013 consisted of the following (in thousands): | |||||||||||||||||||||
DECEMBER 31, | AMORTIZATION | PRINCIPAL | SEPTEMBER 30, | ||||||||||||||||||
2012 | OF DEBT | PAYMENTS | 2013 | ||||||||||||||||||
DISCOUNT | |||||||||||||||||||||
Principal | $ | 9,139 | $ | — | $ | (9,139 | ) | $ | — | ||||||||||||
Discount related to Series C Warrant (1) | (251 | ) | 251 | — | — | ||||||||||||||||
Discount related to financing costs (1) | (514 | ) | 514 | — | — | ||||||||||||||||
$ | 8,374 | $ | 765 | $ | (9,139 | ) | $ | — | |||||||||||||
(1) | The amortization of this account is included in interest expense in the condensed consolidated statements of operations and noncash interest expense in the condensed consolidated statements of cash flows. |
Convertible_Notes_Payable_Tabl
Convertible Notes Payable (Tables) | 9 Months Ended | ||||||||||
Sep. 30, 2013 | |||||||||||
Text Block [Abstract] | ' | ||||||||||
Summary of Convertible Notes Payable | ' | ||||||||||
Convertible notes payable consists of the following (in thousands): | |||||||||||
MATURITY | SEPTEMBER 30, | DECEMBER 31, | |||||||||
DATE | 2013 | 2012 | |||||||||
Convertible notes (March 2012 Convertible Notes) bearing interest at 10.00% per annum issued in March and April 2012. The convertible notes were converted to common stock in August 2013. | September 2013 | $ | — | $ | 20,204 | ||||||
Convertible note (October 2012 Convertible Note) bearing interest at 10.00% per annum issued in October 2012. The convertible note was converted to common stock in August 2013 | Sep-13 | — | 2,314 | ||||||||
Convertible notes payable, current portion | — | 22,518 | |||||||||
Convertible note (October 2012 Subordinated Convertible Note) bearing interest at 12.00% per annum issued in October 2012. The convertible note was converted to common stock in August 2013 | Oct-15 | — | 2,797 | ||||||||
Convertible note (December 2012 Convertible Note) bearing interest at 10.00% per annum issued in December 2012. The convertible note was converted to common stock in August 2013 | Oct-15 | — | 16,545 | ||||||||
Convertible note (First May 2013 Convertible Note) bearing interest at 10.00% per annum issued in May 2013. The convertible note was converted to common stock in August 2013 | May-16 | — | — | ||||||||
Convertible note (Second May 2013 Convertible Note) bearing interest at 10.00% per annum issued in May 2013. The convertible note was converted to common stock in August 2013 | May-16 | — | — | ||||||||
Total convertible notes payable | $ | — | $ | 41,860 | |||||||
Summary_of_Business_Additional
Summary of Business - Additional Information (Detail) (USD $) | 1 Months Ended | 9 Months Ended | |||
Aug. 31, 2013 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Dec. 31, 2011 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | ' | ' | ' | ' | ' |
Shares issued under initial public offering | 5,462,500 | ' | ' | ' | ' |
Issuance of common stock under IPO to underwriters by selling stockholders | 712,500 | ' | ' | ' | ' |
Public offering price of the shares sold in the offering | $12 | ' | ' | ' | ' |
Total gross proceeds from IPO | $65,550,000 | ' | ' | ' | ' |
Aggregate net proceeds received | 56,105,000 | 56,105,000 | ' | ' | ' |
Accumulated deficit | ' | -95,445,000 | -75,569,000 | ' | ' |
Working capital | ' | 58,469,000 | ' | ' | ' |
Cash and cash equivalents | ' | 40,775,000 | 10,006,000 | 3,877,000 | 2,215,000 |
Short-term investments | ' | $12,684,000 | ' | ' | ' |
Reverse Stock Split | '1-for-3.138458 | ' | ' | ' | ' |
Significant_Accounting_Policie3
Significant Accounting Policies - Additional Information (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | Jul. 19, 2012 | |
Concentration Risk [Line Items] | ' | ' | ' | ' | ' | ' |
Current deferred revenue | $357,000 | ' | $357,000 | ' | $0 | ' |
Write down carrying value of deferred cost of product revenues | 167,000 | ' | 167,000 | ' | ' | ' |
Company acquired land, building and equipment | ' | ' | ' | ' | ' | 1,459,000 |
Transaction costs of acquisition | ' | ' | ' | ' | ' | 341,000 |
Fair value in excess of purchase price of the asset acquired | ' | ' | ' | ' | ' | 257,000 |
Current deferred revenue | 1,094,000 | ' | 1,094,000 | ' | 324,000 | ' |
Deferred payments received | ' | ' | ' | 1,000,000 | ' | ' |
Recognized license revenue | 81,000 | 76,000 | 243,000 | 207,000 | ' | ' |
Non-current deferred revenue | 1,453,000 | ' | 1,453,000 | ' | 1,696,000 | ' |
Revenue Recognition [Member] | ' | ' | ' | ' | ' | ' |
Concentration Risk [Line Items] | ' | ' | ' | ' | ' | ' |
Current deferred revenue | $770,000 | ' | $770,000 | ' | ' | ' |
Sales Revenue, Net [Member] | Product Concentration Risk [Member] | Grandevo and Regalia [Member] | ' | ' | ' | ' | ' | ' |
Concentration Risk [Line Items] | ' | ' | ' | ' | ' | ' |
Customers accounted for percentage of company's total revenues and accounts receivable | 94.00% | 86.00% | 97.00% | 92.00% | ' | ' |
Sales Revenue, Net [Member] | Customer Concentration Risk [Member] | International [Member] | ' | ' | ' | ' | ' | ' |
Concentration Risk [Line Items] | ' | ' | ' | ' | ' | ' |
Customers accounted for percentage of company's total revenues and accounts receivable | 27.00% | 5.00% | 11.00% | 16.00% | ' | ' |
Minimum [Member] | ' | ' | ' | ' | ' | ' |
Concentration Risk [Line Items] | ' | ' | ' | ' | ' | ' |
Receivables due period | ' | ' | '30 days | ' | ' | ' |
Customers accounted for percentage of company's total revenues and accounts receivable | 10.00% | 10.00% | 10.00% | 10.00% | ' | ' |
Maximum [Member] | ' | ' | ' | ' | ' | ' |
Concentration Risk [Line Items] | ' | ' | ' | ' | ' | ' |
Receivables due period | ' | ' | '90 days | ' | ' | ' |
Maximum [Member] | Sales Revenue, Net [Member] | Customer Concentration Risk [Member] | ' | ' | ' | ' | ' | ' |
Concentration Risk [Line Items] | ' | ' | ' | ' | ' | ' |
Customers accounted for percentage of company's total revenues and accounts receivable | 10.00% | 10.00% | 10.00% | 10.00% | ' | ' |
Significant_Accounting_Policie4
Significant Accounting Policies - Schedule of Concentration of Credit Risk Percentage (Detail) (Customer Concentration Risk [Member]) | 9 Months Ended | 12 Months Ended | 9 Months Ended | 12 Months Ended | 9 Months Ended | 12 Months Ended | 9 Months Ended | 12 Months Ended | 9 Months Ended | 12 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | ||||||||||||
Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Accounts receivable [Member] | Accounts receivable [Member] | Accounts receivable [Member] | Accounts receivable [Member] | Accounts receivable [Member] | Accounts receivable [Member] | Accounts receivable [Member] | Accounts receivable [Member] | Accounts receivable [Member] | Accounts receivable [Member] | Sales Revenue, Net [Member] | Sales Revenue, Net [Member] | Sales Revenue, Net [Member] | Sales Revenue, Net [Member] | Sales Revenue, Net [Member] | Sales Revenue, Net [Member] | Sales Revenue, Net [Member] | Sales Revenue, Net [Member] | Sales Revenue, Net [Member] | Sales Revenue, Net [Member] | Sales Revenue, Net [Member] | Sales Revenue, Net [Member] | Sales Revenue, Net [Member] | Sales Revenue, Net [Member] | Sales Revenue, Net [Member] | Sales Revenue, Net [Member] | Sales Revenue, Net [Member] | Sales Revenue, Net [Member] | Sales Revenue, Net [Member] | Sales Revenue, Net [Member] | Sales Revenue, Net [Member] | Sales Revenue, Net [Member] | Sales Revenue, Net [Member] | Sales Revenue, Net [Member] | |
Customer A [Member] | Customer A [Member] | Customer B [Member] | Customer B [Member] | Customer C [Member] | Customer C [Member] | Customer D [Member] | Customer D [Member] | Customer E [Member] | Customer E [Member] | Customer A [Member] | Customer A [Member] | Customer A [Member] | Customer A [Member] | Customer B [Member] | Customer B [Member] | Customer B [Member] | Customer B [Member] | Customer C [Member] | Customer C [Member] | Customer C [Member] | Customer C [Member] | Customer D [Member] | Customer D [Member] | Customer D [Member] | Customer D [Member] | Customer E [Member] | Customer E [Member] | Customer E [Member] | Customer E [Member] | Customer F [Member] | Customer F [Member] | Customer F [Member] | Customer F [Member] | |
Concentration Risk [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Customers accounted for percentage of company's total revenues and accounts receivable | ' | 33.00% | ' | 17.00% | 22.00% | 11.00% | ' | 11.00% | 37.00% | ' | 18.00% | 35.00% | 39.00% | 36.00% | 17.00% | ' | ' | ' | ' | 16.00% | ' | 14.00% | ' | 13.00% | ' | ' | ' | ' | ' | 11.00% | 10.00% | 12.00% | ' | ' |
Significant_Accounting_Policie5
Significant Accounting Policies - Schedule of Concentration of Credit Risk Percentage (Parenthetical) (Detail) (Maximum [Member], Customer Concentration Risk [Member]) | 9 Months Ended | 12 Months Ended | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Accounts receivable [Member] | Accounts receivable [Member] | Sales Revenue, Net [Member] | Sales Revenue, Net [Member] | Sales Revenue, Net [Member] | Sales Revenue, Net [Member] | |
Concentration Risk [Line Items] | ' | ' | ' | ' | ' | ' |
Customers accounted for percentage of company's total revenues and accounts receivable | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% |
Significant_Accounting_Policie6
Significant Accounting Policies - Summary of Estimated Fair Value of Assets Acquired (Detail) (USD $) | Jul. 19, 2012 |
In Thousands, unless otherwise specified | |
Business Combinations [Abstract] | ' |
Land | $1 |
Building | 314 |
Equipment | 1,144 |
Assets acquired | $1,459 |
Fair_Value_Measurements_Assets
Fair Value Measurements - Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Liabilities | ' | ' |
Liabilities at fair value | ' | $44,045 |
Common stock warrant liability [Member] | ' | ' |
Liabilities | ' | ' |
Liabilities at fair value | ' | 301 |
Preferred stock warrant liability [Member] | ' | ' |
Liabilities | ' | ' |
Liabilities at fair value | ' | 1,884 |
Convertible notes payable [Member] | ' | ' |
Liabilities | ' | ' |
Liabilities at fair value | ' | 41,860 |
Money market funds [Member] | ' | ' |
Assets | ' | ' |
Assets at fair value | 28,660 | 7,668 |
Level 1 [Member] | ' | ' |
Liabilities | ' | ' |
Liabilities at fair value | ' | ' |
Level 1 [Member] | Common stock warrant liability [Member] | ' | ' |
Liabilities | ' | ' |
Liabilities at fair value | ' | ' |
Level 1 [Member] | Preferred stock warrant liability [Member] | ' | ' |
Liabilities | ' | ' |
Liabilities at fair value | ' | ' |
Level 1 [Member] | Convertible notes payable [Member] | ' | ' |
Liabilities | ' | ' |
Liabilities at fair value | ' | ' |
Level 1 [Member] | Money market funds [Member] | ' | ' |
Assets | ' | ' |
Assets at fair value | 28,660 | 7,668 |
Level 2 [Member] | ' | ' |
Liabilities | ' | ' |
Liabilities at fair value | ' | ' |
Level 2 [Member] | Common stock warrant liability [Member] | ' | ' |
Liabilities | ' | ' |
Liabilities at fair value | ' | ' |
Level 2 [Member] | Preferred stock warrant liability [Member] | ' | ' |
Liabilities | ' | ' |
Liabilities at fair value | ' | ' |
Level 2 [Member] | Convertible notes payable [Member] | ' | ' |
Liabilities | ' | ' |
Liabilities at fair value | ' | ' |
Level 2 [Member] | Money market funds [Member] | ' | ' |
Assets | ' | ' |
Assets at fair value | ' | ' |
Level 3 [Member] | ' | ' |
Liabilities | ' | ' |
Liabilities at fair value | ' | 44,045 |
Level 3 [Member] | Common stock warrant liability [Member] | ' | ' |
Liabilities | ' | ' |
Liabilities at fair value | ' | 301 |
Level 3 [Member] | Preferred stock warrant liability [Member] | ' | ' |
Liabilities | ' | ' |
Liabilities at fair value | ' | 1,884 |
Level 3 [Member] | Convertible notes payable [Member] | ' | ' |
Liabilities | ' | ' |
Liabilities at fair value | ' | 41,860 |
Level 3 [Member] | Money market funds [Member] | ' | ' |
Assets | ' | ' |
Assets at fair value | ' | ' |
Fair_Value_Measurements_Additi
Fair Value Measurements - Additional Information (Detail) (USD $) | 12 Months Ended | 3 Months Ended | 12 Months Ended | ||||||
Dec. 31, 2012 | Sep. 30, 2013 | Aug. 31, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Dec. 31, 2012 | Dec. 31, 2012 | Sep. 30, 2013 | |
Series C warrant [Member] | Preferred and common stock warrants [Member] | Convertible notes payable [Member] | March 2012 and October 2012 convertible notes [Member] | Subordinated convertible notes [Member] | Subordinated convertible notes [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fair value discount rate | 35.00% | ' | ' | ' | ' | ' | 25.00% | 18.00% | ' |
Discount for lack of marketability | 18.00% | ' | ' | ' | ' | ' | ' | ' | ' |
Warrants liability reclassified | ' | $2,669,000 | ' | ' | ' | ' | ' | ' | ' |
Public offering price of the shares sold | ' | ' | $12 | $12 | ' | ' | ' | ' | $12 |
Transfers from Level 3 to Level 2 | ' | ' | ' | ' | $574,000 | $48,234,000 | ' | ' | ' |
Fair_Value_Measurements_Reconc
Fair Value Measurements - Reconciliation of Liabilities Measured at Fair Value Using Significant Unobservable Inputs (Level 3) (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | |
Convertible notes payable [Member] | Level 3 [Member] | Level 3 [Member] | Level 3 [Member] | |
Common stock warrant liability [Member] | Preferred stock warrant liability [Member] | Convertible notes payable [Member] | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ' | ' | ' | ' |
Beginning balance | ' | $301,000 | $1,884,000 | $41,860,000 |
Warrants issued\ Convertible notes issued | ' | 900,000 | ' | 9,069,000 |
Convertible notes cancelled | ' | ' | ' | -1,360,000 |
Accrued interest | ' | ' | ' | 1,299,000 |
Change in fair value recorded in change in fair value of financial instruments | ' | 377,000 | -823,000 | -2,634,000 |
Transfers out of Level 3 | -48,234,000 | -434,000 | -140,000 | -48,234,000 |
Reclassified to stockholders' equity (deficit) | ' | -1,144,000 | -921,000 | ' |
Ending balance | ' | ' | ' | ' |
Shortterm_Investments_Amortize
Short-term Investments - Amortized Cost and Estimated Fair Values of Short-Term Investments (Detail) (Certificates of deposit with maturities less than 1 year [Member], USD $) | 9 Months Ended |
In Thousands, unless otherwise specified | Sep. 30, 2013 |
Certificates of deposit with maturities less than 1 year [Member] | ' |
Schedule of Held-to-maturity Securities [Line Items] | ' |
Amortized Cost | $12,684 |
Gross Unrealized Gains | 1 |
Gross Unrealized Losses | -5 |
Estimated Fair Value | $12,680 |
Shortterm_Investments_Addition
Short-term Investments - Additional Information (Detail) (USD $) | Dec. 31, 2012 |
Investments Debt And Equity Securities [Abstract] | ' |
Investments in securities | $0 |
Inventories_Schedule_of_Invent
Inventories - Schedule of Inventories (Detail) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Inventory Disclosure [Abstract] | ' | ' |
Raw materials | $4,652 | $3,204 |
Work in progress | 3,189 | 607 |
Finished goods | 2,913 | 1,061 |
Inventories, total | $10,754 | $4,872 |
Net_Loss_Per_Share_Schedule_of
Net Loss Per Share - Schedule of Anti-dilutive Securities Excluded from Computation of Diluted Net Loss Per Share (Detail) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Convertible preferred stock [Member] | ' | ' | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' | ' | ' |
Anti-dilutive securities excluded from computation of earning per share | 2,714 | 8,504 | 6,274 | 8,504 |
Convertible notes payable [Member] | ' | ' | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' | ' | ' |
Anti-dilutive securities excluded from computation of earning per share | 503 | ' | 501 | ' |
Stock options outstanding [Member] | ' | ' | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' | ' | ' |
Anti-dilutive securities excluded from computation of earning per share | 2,369 | 1,749 | 2,211 | 1,672 |
Warrants to purchase convertible preferred stock [Member] | ' | ' | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' | ' | ' |
Anti-dilutive securities excluded from computation of earning per share | 32 | 207 | 61 | 153 |
Warrants to purchase common stock [Member] | ' | ' | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' | ' | ' |
Anti-dilutive securities excluded from computation of earning per share | ' | ' | ' | ' |
Net_Loss_Per_Share_Schedule_of1
Net Loss Per Share - Schedule of Anti-dilutive Securities Excluded from Computation of Diluted Net Loss Per Share (Parenthetical) (Detail) (USD $) | 1 Months Ended | |||||
Jun. 30, 2013 | Apr. 30, 2013 | Oct. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | |
Earnings Per Share [Abstract] | ' | ' | ' | ' | ' | ' |
Contingently convertible notes payable | ' | ' | ' | ' | $41,860,000 | $8,804,000 |
Warrants issued to purchase a percentage of common stock | 10.00% | 15.00% | 15.00% | ' | ' | ' |
Value of common stock in a sale of the Company or an initial public offering | 70.00% | ' | 70.00% | ' | ' | ' |
Percentage of exercise price on the value of common stock | 70.00% | ' | 70.00% | ' | ' | ' |
Net_Loss_Per_Share_Additional_
Net Loss Per Share - Additional Information (Detail) | 1 Months Ended | 9 Months Ended |
Aug. 31, 2013 | Sep. 30, 2012 | |
Earnings Per Share [Abstract] | ' | ' |
Conversion of convertible preferred stock ratio | 1 | 1 |
Net_Loss_Per_Share_Computation
Net Loss Per Share - Computation of Common Shares Upon Exercise of Warrants and Basic and Diluted Net Loss Per Share (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Numerator | ' | ' | ' | ' |
Net loss | ($6,110) | ($13,802) | ($18,498) | ($21,698) |
Deemed dividend on convertible notes | ' | ' | -1,378 | -1,253 |
Net loss attributable to common stockholders | -6,110 | -13,802 | -19,876 | -22,951 |
Effect of potentially dilutive securities | ' | ' | ' | ' |
Convertible notes | -1,089 | ' | -118 | ' |
Warrants to purchase common stock | -201 | ' | -201 | ' |
Net loss for diluted earnings per share | ($7,400) | ($13,802) | ($20,195) | ($22,951) |
Denominator | ' | ' | ' | ' |
Shares used for basic net loss per share | 12,888 | 1,262 | 5,187 | 1,253 |
Effect of potentially dilutive securities | ' | ' | ' | ' |
Convertible notes | 1,043 | ' | 20 | ' |
Warrants to purchase common stock | 86 | ' | 22 | ' |
Weighted average shares outstanding for diluted earnings per share | 14,017 | 1,262 | 5,229 | 1,253 |
Basic net loss per share | ($0.47) | ($10.94) | ($3.83) | ($18.32) |
Diluted net loss per share | ($0.53) | ($10.94) | ($3.86) | ($18.32) |
Other_Assets_Summary_of_Other_
Other Assets - Summary of Other Assets (Detail) (USD $) | Sep. 30, 2013 | Apr. 10, 2013 | Dec. 31, 2012 |
Deferred Costs Capitalized Prepaid And Other Assets Disclosure [Abstract] | ' | ' | ' |
Prepaid initial public offering costs | ' | ' | $2,257,000 |
Prepaid distribution fees | 127,000 | ' | 134,000 |
Deferred financing costs | 195,000 | 24,000 | 261,000 |
Deposit for equipment | 463,000 | ' | ' |
Deposits on equipment leases | 184,000 | ' | 43,000 |
Other assets | 88,000 | ' | 90,000 |
Other assets, total | $1,057,000 | ' | $2,785,000 |
Accrued_Liabilities_Schedule_o
Accrued Liabilities - Schedule of Accrued Liabilities (Detail) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Payables And Accruals [Abstract] | ' | ' |
Accrued compensation | $1,593 | $1,342 |
Accrued expenses | 1,380 | 1,295 |
Accrued product rebates | ' | 386 |
Accrued liabilities, total | $2,973 | $3,023 |
Factoring_and_Security_Agreeme1
Factoring and Security Agreement - Additional Information (Detail) (USD $) | 1 Months Ended | |
Jun. 13, 2013 | Sep. 30, 2013 | |
Receivables [Abstract] | ' | ' |
Sales of interest in accounts receivable | $5,000,000 | ' |
Sales of interest in accounts receivables, percentage | 15.00% | ' |
Accounts receivable transferred | ' | 1,396,000 |
Accounts receivable held for sale excess funds available on reserve | ' | $199,000 |
Debt_Schedule_of_Debt_Detail
Debt - Schedule of Debt (Detail) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Debt Instrument [Line Items] | ' | ' |
Debt | $12,438 | $16,338 |
Less current portion | -177 | -8,572 |
Debt, less current portion | 12,261 | 7,766 |
Promissory note bearing interest at 6.25% [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Debt | ' | 35 |
Term Loan bearing interest at 7.00% [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Debt | 339 | 426 |
Promissory note bearing interest at 7.00% [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Debt | 158 | 261 |
April 2012 Senior secured promissory note [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Debt | ' | 8,374 |
October 2012 Junior secured promissory notes [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Debt | $11,941 | $7,242 |
Debt_Schedule_of_Debt_Parenthe
Debt - Schedule of Debt (Parenthetical) (Detail) (USD $) | 9 Months Ended | 12 Months Ended | 9 Months Ended | 12 Months Ended | 1 Months Ended | 9 Months Ended | 12 Months Ended | 9 Months Ended | 12 Months Ended | 9 Months Ended | 12 Months Ended | |||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Dec. 31, 2012 | 31-May-13 | Sep. 30, 2013 | Dec. 31, 2012 | Mar. 31, 2012 | Mar. 31, 2009 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Apr. 13, 2013 | Sep. 30, 2013 | Dec. 31, 2012 |
Promissory note bearing interest at 6.25% [Member] | Promissory note bearing interest at 6.25% [Member] | Promissory note bearing interest at 6.25% [Member] | Term Loan bearing interest at 7.00% [Member] | Term Loan bearing interest at 7.00% [Member] | Term Loan bearing interest at 7.00% [Member] | Promissory note bearing interest at 7.00% [Member] | Promissory note bearing interest at 7.00% [Member] | Promissory note bearing interest at 7.00% [Member] | April 2012 Senior secured promissory note [Member] | April 2012 Senior secured promissory note [Member] | April 2012 Senior secured promissory note [Member] | October 2012 Junior secured promissory notes [Member] | October 2012 Junior secured promissory notes [Member] | |
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt instrument, interest rate | 6.25% | 6.25% | 6.25% | 7.00% | 7.00% | 7.00% | 7.00% | 7.00% | 7.00% | 15.00% | 15.00% | 15.00% | 12.00% | 12.00% |
Debt instrument, payment terms | 'Payable monthly through May 2013 | 'Payable monthly through May 2013 | ' | 'Payable monthly through April 2016 | 'Payable monthly through April 2016 | ' | 'Six monthly interest only payments starting May 1, 2009, followed by 60 equal monthly installments of $13,000 commencing November 1, 2009, with the final payment due on November 1, 2014. | 'Payable monthly through November 2014 | 'Payable monthly through November 2014 | 'Payable monthly through April 2017 | 'Payable monthly through April 2017 | ' | 'Payable monthly through October 2015 | 'Payable monthly through October 2015 |
Net of unamortized debt discount | ' | ' | ' | ' | ' | ' | ' | $2 | ' | ' | ' | ' | $509 | ' |
Debt_Additional_Information_De
Debt - Additional Information (Detail) (USD $) | 1 Months Ended | 6 Months Ended | 9 Months Ended | 9 Months Ended | 9 Months Ended | 1 Months Ended | 9 Months Ended | 1 Months Ended | 9 Months Ended | 9 Months Ended | 1 Months Ended | 9 Months Ended | 12 Months Ended | 1 Months Ended | 9 Months Ended | 12 Months Ended | 9 Months Ended | 12 Months Ended | 1 Months Ended | 9 Months Ended | 12 Months Ended | 1 Months Ended | 9 Months Ended | 12 Months Ended | |||||||||||||||
Apr. 10, 2013 | Jun. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | Oct. 31, 2012 | Sep. 30, 2013 | Apr. 10, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Apr. 10, 2013 | Sep. 30, 2013 | Dec. 31, 2012 | Oct. 31, 2012 | Sep. 30, 2013 | Apr. 10, 2013 | Oct. 16, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | 31-May-13 | Sep. 30, 2013 | Dec. 31, 2012 | Mar. 31, 2009 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Jun. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Mar. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Apr. 13, 2013 | Sep. 30, 2013 | Dec. 31, 2012 | |
Revolving line of credit [Member] | Common stock warrants [Member] | Series C warrant [Member] | Convertible preferred stock - Series C [Member] | June 2013 credit facility [Member] | June 2013 warrants [Member] | June 2013 warrants [Member] | April 2013 junior secured promissory notes [Member] | April 2013 junior secured promissory notes [Member] | April 2013 junior secured promissory notes [Member] | October 2012 subordinated convertible note [Member] | October 2012 subordinated convertible note [Member] | October 2012 subordinated convertible note [Member] | October 2012 subordinated convertible note [Member] | Minimum [Member] | Maximum [Member] | Promissory note bearing interest at 6.25% [Member] | Promissory note bearing interest at 6.25% [Member] | Promissory note bearing interest at 6.25% [Member] | Promissory note bearing interest at 7.00% [Member] | Promissory note bearing interest at 7.00% [Member] | Promissory note bearing interest at 7.00% [Member] | October 2012 Junior secured promissory notes [Member] | October 2012 Junior secured promissory notes [Member] | October 2012 Junior secured promissory notes [Member] | October 2012 Junior secured promissory notes [Member] | October 2012 Junior secured promissory notes [Member] | Term Loan bearing interest at 7.00% [Member] | Term Loan bearing interest at 7.00% [Member] | Term Loan bearing interest at 7.00% [Member] | April 2012 Senior secured promissory note [Member] | April 2012 Senior secured promissory note [Member] | April 2012 Senior secured promissory note [Member] | |||||||
Common stock warrants [Member] | Installment | Installment | Extended fourth year [Member] | Extended fifth year [Member] | Installment | ||||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt instrument borrowing amount | ' | ' | $6,529,000 | $8,075,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $400,000 | ' | ' | $650,000 | ' | ' | $7,500,000 | ' | ' | ' | ' | ' | ' | ' | $10,000,000 | ' | ' |
Debt instrument, interest rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 12.00% | ' | 12.00% | ' | ' | 6.25% | 6.25% | 6.25% | 7.00% | 7.00% | 7.00% | 12.00% | 12.00% | ' | 13.00% | 14.00% | 7.00% | 7.00% | 7.00% | 15.00% | 15.00% | 15.00% |
Number of installments | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 60 | ' | ' | 60 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 59 | ' | ' |
Amount paid in each installment | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 7,785 | ' | ' | 13,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 238,000 | ' | ' |
Installment payment commencing date | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1-Jun-08 | ' | ' | 1-Nov-09 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1-May-12 | ' | ' |
Percentage of borrowings limited to qualifying accounts receivable | ' | ' | ' | ' | ' | ' | 75.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Credit facility maximum borrowing capacity | ' | ' | ' | ' | ' | ' | 500,000 | ' | ' | ' | 7,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 500,000 | ' | ' | ' | ' | ' |
Debt instrument maturity date | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 16-Oct-15 | ' | ' | ' | ' | ' | ' | ' | 1-Nov-14 | ' | ' | ' | ' | ' | ' | ' | 1-Apr-16 | ' | ' | ' | ' | ' |
Debt instrument, payment terms | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 'Payable monthly through May 2013 | 'Payable monthly through May 2013 | 'Six monthly interest only payments starting May 1, 2009, followed by 60 equal monthly installments of $13,000 commencing November 1, 2009, with the final payment due on November 1, 2014. | 'Payable monthly through November 2014 | 'Payable monthly through November 2014 | 'Payable monthly through October 2015 | 'Payable monthly through October 2015 | ' | ' | ' | ' | 'Payable monthly through April 2016 | 'Payable monthly through April 2016 | ' | 'Payable monthly through April 2017 | 'Payable monthly through April 2017 |
Non-refundable loan fees | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 625,000 | ' | ' |
Installment payment final date | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '2017-04-01 | ' | ' |
Warrants issued to lender for of purchase preferred stock | ' | ' | ' | ' | ' | ' | ' | ' | ' | 191,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Warrants exercise price | ' | ' | ' | ' | ' | ' | ' | ' | ' | $7.85 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Warrant expiration period | ' | ' | ' | ' | ' | ' | ' | ' | ' | 'The Series C Warrant would expire, unless exercised, on the earlier to occur of April 2022 or one year after the Company successfully completes a Qualified IPO | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fees amount | ' | ' | ' | ' | ' | ' | ' | ' | 625,000 | ' | ' | ' | ' | ' | 485,000 | 270,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fair value of Series C Warrant | ' | ' | ' | ' | ' | ' | ' | ' | 306,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Termination fee, percentage | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.00% | 3.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Convertible note repayment terms | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '35 days | ' |
Total repayment debt | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 9,451,000 | ' |
Principal amount of repayment | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 9,139,000 | ' |
Principal amount of repayment, accrued interest | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 34,000 | ' |
Termination fee payment | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 278,000 | ' |
Debt instrument borrowing terms | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 'The October 2012 Junior Secured Promissory Notes have an initial term of three years and can be extended for an additional two years in one year increments. During the initial three-year term, the October 2012 Junior Secured Promissory Notes bear interest at 12% per annum. If the term of the October 2012 Junior Secured Promissory Notes is extended an additional year, the interest rate increases to 13% during the fourth year. If the term of the October 2012 Junior Secured Promissory Notes is extended for an additional two years, the interest rate is 14% during the fifth year. Interest on the October 2012 Junior Secured Promissory Notes is payable monthly through the initial maturity date of the loan which is October 2, 2015 or through any extension period. The principal and all unpaid interest are due on the maturity date, as may be extended. | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Agent Fee percentage | ' | ' | 5.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Additional fee percentage | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Unpaid Agent Fee | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 172,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 261,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Additional costs related to legal fees | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 66,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Warrants issued to purchase common stock funded principal percentage | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 15.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Value of common stock in a sale of the Company or an initial public offering | ' | 70.00% | ' | ' | ' | 70.00% | ' | ' | ' | ' | ' | 70.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 70.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fair value of Common Stock Warrants | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 282,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Exercise price of the Common Stock Warrants | ' | ' | 8.4 | ' | ' | ' | ' | ' | ' | ' | ' | 8.4 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 8.4 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Covenant requirements minimum cash balance | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Additional debt cash balance | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Increase in amount available under loan agreement | 5,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Additional debt issued under amendment | 4,950,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt issued in partial consideration for cash | 3,700,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt issued in partial conversion for cancellation of principal balance | 1,250,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amount borrowed under amended loan agreement | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 7,500,000 | 12,450,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Accrued interest on promissory notes | ' | 74,000 | 74,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Warrants exercise price percentage | ' | ' | 70.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Exercise price of warrants as percentage of common stock | ' | ' | 70.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common stock warrants issued to purchase common stock percentage | ' | ' | 20.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | 10.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fair value of Common Stock Warrants | ' | ' | 465,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Convertible debt instrument, face value | ' | ' | ' | 8,804,000 | 41,860,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,250,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Convertible debt, fair value | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,360,000 | 1,360,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt instrument, additional borrowings | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,500,000 | 2,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Promissory Notes issued | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3,750,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3,750,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Gain on extinguishment of debt | ' | ' | 49,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt discount | ' | ' | ' | ' | ' | ' | ' | 113,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fair value of Additional Common Stock Warrants issued | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 352,000 | 352,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Funds borrowed | ' | ' | 3,700,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4,250,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Additional unpaid Agent Fee, percentage | ' | ' | 5.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Deferred finance costs | 24,000 | ' | 195,000 | ' | 261,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 87,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amount permit to draw | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Credit facility expiry date | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 30-Jun-14 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Credit facility accrued interest | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 10.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Credit facility fee | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2.00% | ' | ' | ' | ' | ' | 5.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Credit facility financing-related costs and primarily legal fees | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 8,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Warrants expire date | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 14-Jun-23 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fair value of the Warrants at the date of issuance as deferred financing cost | ' | ' | $435,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt_Activity_Related_to_Secur
Debt - Activity Related to Secured Promissory Note (Detail) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 |
In Thousands, unless otherwise specified | October 2012 Junior secured promissory notes [Member] | October 2012 Junior secured promissory notes [Member] | October 2012 Junior secured promissory notes [Member] | October 2012 Junior secured promissory notes [Member] | April 2012 Senior secured promissory note [Member] | April 2012 Senior secured promissory note [Member] | April 2012 Senior secured promissory note [Member] | April 2012 Senior secured promissory note [Member] | ||
Principal [Member] | Debt discount related to issuance of common stock warrants [Member] | Discount related to the $3,750,000 Notes [Member] | Principal [Member] | Discount related to Series C Warrant [Member] | Discount related to financing costs [Member] | |||||
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
DEBT, BEGINNING BALANCE | $12,438 | $16,338 | $7,242 | $7,500 | ($258) | ' | $8,374 | $9,139 | ($251) | ($514) |
AMORTIZATION OF DEBT DISCOUNT | ' | ' | 153 | ' | 95 | 58 | 765 | ' | 251 | 514 |
PRINCIPAL PAYMENTS | ' | ' | ' | ' | ' | ' | -9,139 | -9,139 | ' | ' |
DEBT, ENDING BALANCE | 12,438 | 16,338 | 11,941 | 12,450 | -276 | -233 | ' | ' | ' | ' |
ADDITIONS | ' | ' | $4,546 | $4,950 | ($113) | ($291) | ' | ' | ' | ' |
Debt_Consideration_Received_Fa
Debt - Consideration Received, Fair Values of Notes, Common Stock Warrants Issued and Calculation of the Gain on Extinguishment of Debt (Detail) (USD $) | 9 Months Ended | 1 Months Ended | 9 Months Ended | |||
Sep. 30, 2013 | Sep. 30, 2013 | Apr. 10, 2013 | Dec. 31, 2012 | Apr. 10, 2013 | Sep. 30, 2013 | |
October 2012 subordinated convertible note [Member] | October 2012 subordinated convertible note [Member] | October 2012 subordinated convertible note [Member] | April 2013 junior secured promissory notes [Member] | April 2013 junior secured promissory notes [Member] | ||
Consideration received | ' | ' | ' | ' | ' | ' |
Fair Value of October 2012 Subordinated Convertible Note | ' | $1,360,000 | $1,360,000 | ' | ' | ' |
Cash | ' | ' | ' | ' | 2,500,000 | 2,500,000 |
Total Consideration Received | 3,860,000 | ' | ' | ' | ' | ' |
Notes and Warrants Issued | ' | ' | ' | ' | ' | ' |
Principal Balance of Notes Issued | ' | 1,250,000 | ' | 1,703,000 | ' | 3,750,000 |
Debt Discount | ' | ' | ' | ' | ' | -291,000 |
Fair Value of Notes Issued | ' | ' | ' | ' | ' | 3,459,000 |
Fair value of Additional Common Stock Warrants issued | ' | ' | ' | ' | 352,000 | 352,000 |
Total Fair Value of Notes and Warrants Issued | 3,811,000 | ' | ' | ' | ' | ' |
Gain on extinguishment of debt | $49,000 | ' | ' | ' | ' | ' |
Debt_Activity_Related_to_Secur1
Debt - Activity Related to Secured Promissory Note (Parenthetical) (Detail) (October 2012 Junior secured promissory notes [Member], USD $) | Sep. 30, 2013 |
October 2012 Junior secured promissory notes [Member] | ' |
Debt Instrument [Line Items] | ' |
Promissory Notes issued | $3,750,000 |
Convertible_Notes_Payable_Summ
Convertible Notes Payable - Summary of Convertible Notes Payable (Detail) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Apr. 10, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2013 |
March 2012 convertible notes [Member] | March 2012 convertible notes [Member] | October 2012 convertible notes [Member] | October 2012 convertible notes [Member] | October 2012 subordinated convertible note [Member] | October 2012 subordinated convertible note [Member] | October 2012 subordinated convertible note [Member] | December 2012 convertible note [Member] | December 2012 convertible note [Member] | First may 2013 convertible note [Member] | Second may 2013 convertible note [Member] | ||||
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Convertible notes payable, current portion | ' | $22,518,000 | ' | ' | $20,204,000 | ' | $2,314,000 | ' | ' | ' | ' | ' | ' | ' |
Convertible notes payable, noncurrent portion | ' | 19,342,000 | ' | ' | ' | ' | ' | ' | ' | 2,797,000 | ' | 16,545,000 | ' | ' |
Total convertible notes payable | ' | $41,860,000 | $8,804,000 | ' | ' | ' | ' | ' | $1,250,000 | ' | ' | ' | ' | ' |
Convertible_Notes_Payable_Summ1
Convertible Notes Payable - Summary of Convertible Notes Payable (Parenthetical) (Detail) | 9 Months Ended | 0 Months Ended | 9 Months Ended | |||||
Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Oct. 16, 2012 | Dec. 06, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | |
March 2012 convertible notes [Member] | October 2012 convertible notes [Member] | October 2012 subordinated convertible note [Member] | October 2012 subordinated convertible note [Member] | December 2012 convertible note [Member] | December 2012 convertible note [Member] | First may 2013 convertible note [Member] | Second may 2013 convertible note [Member] | |
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' |
Maturity Date | 30-Sep-13 | 30-Sep-13 | 16-Oct-15 | ' | 16-Oct-15 | 16-Oct-15 | 22-May-16 | 30-May-16 |
Convertible note interest rate | 10.00% | 10.00% | 12.00% | 12.00% | 10.00% | 10.00% | 10.00% | 10.00% |
Convertible_Notes_Payable_Conv
Convertible Notes Payable - Convertible Notes - Additional Information (Detail) (USD $) | 1 Months Ended | 9 Months Ended | 9 Months Ended | 9 Months Ended | 9 Months Ended | |||||||||||
Aug. 31, 2013 | 28-May-13 | Sep. 30, 2013 | Sep. 30, 2013 | 28-May-13 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | |
Common stock [Member] | Common stock [Member] | Equity securities [Member] | March 2012 convertible notes [Member] | March 2012 convertible notes [Member] | October 2012 convertible notes [Member] | October 2012 convertible notes [Member] | October 2012 convertible notes [Member] | March 2012 and October 2012 convertible notes [Member] | March 2012 and October 2012 convertible notes [Member] | March 2012 and October 2012 convertible notes [Member] | March 2012 and October 2012 convertible notes [Member] | March 2012 and October 2012 convertible notes [Member] | ||||
Equity securities [Member] | Common stock [Member] | Equity securities [Member] | Maximum [Member] | Minimum [Member] | Common stock [Member] | |||||||||||
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Issued and sold convertible notes | ' | ' | ' | ' | ' | ' | $8,076,000 | ' | $1,000,000 | ' | ' | ' | ' | ' | ' | ' |
Maturity Date | ' | ' | ' | ' | ' | ' | 30-Sep-13 | ' | 30-Sep-13 | ' | ' | ' | ' | ' | ' | ' |
Accrued interest | ' | ' | ' | ' | ' | ' | 10.00% | ' | 10.00% | ' | ' | ' | ' | ' | ' | ' |
Proceeds from issuance of public offering | 56,105,000 | ' | 56,105,000 | 30,000,000 | ' | 5,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Business acquisition voting transfer | ' | ' | ' | 50.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Convertible Notes convert into equity securities of purchase price | ' | ' | ' | ' | 70.00% | ' | ' | 80.00% | ' | 80.00% | 85.00% | ' | ' | ' | ' | 70.00% |
Discount on conversion price | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 20.00% | 30.00% | ' |
Public offering price of the shares sold | $12 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $12 | ' | ' | ' | ' |
Estimated fair value of Convertible Notes as of issuance dates | ' | ' | ' | ' | ' | ' | 9,343,000 | ' | 1,772,000 | ' | ' | 14,599,000 | 22,518,000 | ' | ' | ' |
Proceeds from issuance of Convertible Notes | ' | 3,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 9,076,000 | ' | ' | ' | ' |
Excess of estimated fair value of Convertible Notes | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,039,000 | ' | ' | ' | ' |
Increase of estimated fair value of Convertible Notes | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $8,516,000 | ' | ' | ' | ' |
Convertible_Notes_Payable_Octo
Convertible Notes Payable - October 2012 Subordinated Convertible Note - Additional Information (Detail) (USD $) | 1 Months Ended | 6 Months Ended | 9 Months Ended | 9 Months Ended | 1 Months Ended | 9 Months Ended | |||||||||||||
28-May-13 | Jun. 30, 2013 | Sep. 30, 2013 | Aug. 31, 2013 | Apr. 10, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Oct. 31, 2012 | Oct. 16, 2012 | Sep. 30, 2013 | Apr. 10, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Dec. 31, 2012 | |
Non-current other liabilities [Member] | Current and non-current other assets [Member] | Legal fees [Member] | October 2012 subordinated convertible note [Member] | October 2012 subordinated convertible note [Member] | October 2012 subordinated convertible note [Member] | October 2012 subordinated convertible note [Member] | October 2012 subordinated convertible note [Member] | October 2012 subordinated convertible note [Member] | October 2012 subordinated convertible note [Member] | October 2012 subordinated convertible note [Member] | October 2012 subordinated convertible note [Member] | October 2012 subordinated convertible note [Member] | |||||||
Conversion adjusted rate [Member] | Maximum [Member] | Minimum [Member] | Agent fee [Member] | Agent fee [Member] | |||||||||||||||
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Company borrowed convertible note | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $2,500,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Convertible Note initial maturity term | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '3 years | ' | ' | ' | ' | ' | ' | ' | ' |
Convertible Note additional maturity term | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '2 years | ' | ' | ' | ' | ' | ' | ' | ' |
Convertible Note interest percentage per annum | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 12.00% | 12.00% | ' | ' | ' | ' | ' | ' | ' |
Outstanding principal balance | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,250,000 | ' | 1,703,000 | ' | ' | ' | ' | ' |
Accrued interest on promissory notes | ' | 74,000 | 74,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Convertible debt, fair value | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,360,000 | 1,360,000 | ' | ' | ' | ' | ' | ' |
Gain on extinguishment of debt | ' | ' | 49,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Converted Agent Fee | ' | ' | ' | ' | ' | ' | 48,000 | 39,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Agent Fee, percentage | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Additional agent fee, percentage | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Deferred financing costs | ' | ' | 195,000 | ' | 24,000 | 261,000 | ' | ' | 22,000 | 87,000 | ' | ' | ' | ' | ' | ' | ' | 63,000 | 89,000 |
Convertible into share of common stock per share | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 85.00% | ' | ' | 80.00% | ' | ' | ' | ' |
Discount on conversion price | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 20.00% | 15.00% | ' | ' |
Public offering price of the shares sold | ' | ' | ' | $12 | ' | ' | ' | ' | ' | ' | ' | $12 | ' | ' | ' | ' | ' | ' | ' |
Estimated fair value of Convertible Notes as of issuance dates | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,662,000 | 2,500,000 | ' | 2,797,000 | ' | ' | ' | ' | ' |
Proceeds from issuance of Convertible Notes | 3,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,500,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Excess of estimated fair value of Convertible Notes | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 162,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Increase of estimated fair value of Convertible Notes | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $133,000 | ' | ' | ' | ' | ' | ' | ' |
Convertible_Notes_Payable_Dece
Convertible Notes Payable - December 2012 Convertible Note - Additional Information (Detail) (USD $) | Jun. 30, 2013 | Jun. 30, 2013 | Dec. 06, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Dec. 06, 2012 | Dec. 06, 2012 | Dec. 06, 2012 | Dec. 06, 2012 |
Prior to June 30 2013 [Member] | After June 30 2013 [Member] | December 2012 convertible note [Member] | December 2012 convertible note [Member] | December 2012 convertible note [Member] | December 2012 convertible note [Member] | December 2012 convertible note [Member] | December 2012 convertible note [Member] | December 2012 convertible note [Member] | December 2012 convertible note [Member] | December 2012 convertible note [Member] | December 2012 convertible note [Member] | December 2012 convertible note [Member] | December 2012 convertible note [Member] | December 2012 convertible note [Member] | December 2012 convertible note [Member] | |
Non-Qualified financing [Member] | Non-Qualified financing [Member] | Minimum [Member] | Maximum [Member] | Qualified financing [Member] | Prior to June 30 2013 [Member] | Prior to June 30 2013 [Member] | After June 30 2013 [Member] | After June 30 2013 [Member] | Operating expense [Member] | Cost of license revenue [Member] | Product [Member] | Distributor [Member] | ||||
Qualified financing [Member] | Qualified financing [Member] | |||||||||||||||
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Company borrowed convertible note | ' | ' | $12,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Convertible Note initial maturity term | ' | ' | '2 years 10 months | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Convertible Note additional maturity term | ' | ' | '1 year | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Maturity Date | ' | ' | 16-Oct-15 | 16-Oct-15 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Convertible Note interest percentage | ' | ' | 10.00% | 10.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Transfer of voting power percentage | ' | ' | ' | 50.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Outstanding principal balance | ' | ' | ' | 120,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Conversion price percentage on a sale transaction | ' | ' | ' | ' | ' | ' | ' | ' | 133.33% | ' | 142.86% | ' | ' | ' | ' | ' |
Gross proceeds qualified for conversion | ' | ' | ' | ' | ' | ' | ' | 20,000,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Convertible invested holder of the Company's equity, strategic investors | ' | ' | ' | ' | ' | ' | ' | 50.00% | ' | ' | ' | ' | ' | ' | ' | ' |
Convertible into share of common stock per share | 75.00% | 70.00% | ' | ' | ' | ' | ' | ' | ' | 75.00% | ' | 70.00% | ' | ' | ' | ' |
Discount on conversion price | ' | ' | ' | ' | ' | 25.00% | 30.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Estimated fair value of Convertible Notes as of issuance dates | ' | ' | 16,355,000 | 19,072,000 | 16,545,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Excess of estimated fair value of Convertible Notes | ' | ' | 3,855,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3,610,000 | 110,000 | 135,000 | 245,000 |
Change in estimated fair value of financial instruments | ' | ' | ' | $1,767,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Convertible_Notes_Payable_Firs
Convertible Notes Payable - First and Second May 2013 Convertible Notes - Additional Information (Detail) (USD $) | 1 Months Ended | 9 Months Ended | |
22-May-13 | 28-May-13 | Sep. 30, 2013 | |
Debt Instrument [Line Items] | ' | ' | ' |
Sale of convertible note | $3,529,000 | ' | ' |
Convertible note interest rate description | 'On May 22, 2013, the Company completed the sale of convertible notes under a convertible note purchase agreement in the amount of $3,529,000 in a private placement to 22 investors (First May 2013 Convertible Notes). The First May 2013 Convertible Notes accrued interest at a rate of 10% per annum and would have matured on May 22, 2016. | 'On May 28, 2013, the Company completed the sale of a convertible note under a separate convertible note purchase agreement in the amount of $3,000,000 in a private placement (Second May 2013 Convertible Note). The Second May 2013 Convertible Note accrued interest at a rate of 10% per annum and would have matured on May 30, 2016. | ' |
Proceeds from issuance of Convertible Notes | ' | 3,000,000 | ' |
Notes converted at discount into common stock percentage | ' | ' | 142.86% |
Amount of additional Non-Qualified Financing | ' | ' | 2,000,000 |
Percentage of proceeds from Non-Qualified Financing | ' | ' | 50.00% |
First and second May 2013 convertible notes [Member] | ' | ' | ' |
Debt Instrument [Line Items] | ' | ' | ' |
Discount on conversion price | ' | ' | 30.00% |
First may 2013 convertible note [Member] | ' | ' | ' |
Debt Instrument [Line Items] | ' | ' | ' |
Proceeds from issuance of Convertible Notes | 3,529,000 | ' | ' |
Estimated fair value of Convertible Notes as of issuance dates | 4,907,000 | ' | 5,147,000 |
Excess of estimated fair value of Convertible Notes | 1,378,000 | ' | ' |
Increase of estimated fair value of Convertible Notes | ' | ' | 166,000 |
Second may 2013 convertible note [Member] | ' | ' | ' |
Debt Instrument [Line Items] | ' | ' | ' |
Proceeds from issuance of Convertible Notes | 3,000,000 | ' | ' |
Estimated fair value of Convertible Notes as of issuance dates | 4,162,000 | ' | 4,369,000 |
Excess of estimated fair value of Convertible Notes | 1,162,000 | ' | ' |
Increase of estimated fair value of Convertible Notes | ' | ' | $149,000 |
Common stock [Member] | ' | ' | ' |
Debt Instrument [Line Items] | ' | ' | ' |
Convertible into share of common stock per share | ' | 70.00% | ' |
Stock_Option_Plans_Additional_
Stock Option Plans - Additional Information (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Stock options outstanding | 2,675,000 | ' | 2,675,000 | ' |
Stock options available for grant | 1,251,000 | ' | 1,251,000 | ' |
Share based compensation recognized | $537,000 | $86,000 | $1,125,000 | $466,000 |
Stock option granted | 717,000 | ' | 917,000 | ' |
Weighted-average exercise price per share | $16.59 | ' | $15.58 | ' |
Stock option exercised | 80,000 | ' | 93,000 | ' |
Weighted-average exercise price per share, exercised | $0.89 | ' | $0.87 | ' |
Stock incentive plan 2013 [Member] | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Stock issued under the incentive plan | 1,600,000 | ' | 1,600,000 | ' |
Percentage of annual increase in common stock outstanding | ' | ' | 3.50% | ' |
Commitments_and_Contingencies_
Commitments and Contingencies - Additional Information (Detail) (USD $) | 1 Months Ended |
Sep. 09, 2013 | |
sqft | |
Commitments And Contingencies Disclosure [Abstract] | ' |
Office facility lease agreement | 28,700 |
Lease agreement period | '60 months |
Monthly base rent | $46,000 |
Percentage of annual increase in base rent | 3.00% |
Lease renewal period | '5 years |
Reverse_Stock_Split_Additional
Reverse Stock Split - Additional Information (Detail) | 1 Months Ended | 9 Months Ended | ||
Aug. 31, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | |
Equity [Abstract] | ' | ' | ' | ' |
Conversion of convertible preferred stock ratio | 1 | 1 | ' | ' |
Reverse Stock Split | '1-for-3.138458 | ' | ' | ' |
Reverse Stock Split, ratio | 3.138458 | ' | ' | ' |
Increased number of shares of common stock authorized for issuance | 250,000,000 | ' | 250,000,000 | 12,936,000 |
Increased number of shares of preferred stock authorized for issuance | 20,000,000 | ' | 20,000,000 | ' |
Initial_Public_Offering_Additi
Initial Public Offering - Additional Information (Detail) (USD $) | 1 Months Ended | 9 Months Ended | |
Aug. 31, 2013 | Sep. 30, 2013 | Dec. 31, 2012 | |
Subsidiary, Sale of Stock [Line Items] | ' | ' | ' |
Shares issued under initial public offering | 5,462,500 | ' | ' |
Issuance of common stock under IPO to underwriters by selling stockholders | 712,500 | ' | ' |
Public offering price of the shares sold in the offering | $12 | ' | ' |
Total gross proceeds from IPO | $65,550,000 | ' | ' |
Aggregate net proceeds received | $56,105,000 | $56,105,000 | ' |
Convertible preferred stock and warrants to common stock | 8,514,000 | ' | ' |
Common stock issued upon cash exercise of common stock warrants | 3,000 | ' | ' |
Convertible notes converted into common stock | 3,741,000 | ' | ' |
Common stock issued upon net exercise of common stock warrants | 47,000 | ' | ' |
Common stock, shares outstanding | 19,133,000 | 19,199,000 | 1,267,000 |
Warrants to purchase common stock outstanding | 151,000 | ' | ' |
Series B convertible preferred stock warrants [Member] | ' | ' | ' |
Subsidiary, Sale of Stock [Line Items] | ' | ' | ' |
Common stock issued upon cash exercise of common stock warrants | 10,000 | ' | ' |
Series A and Series C convertible preferred stock warrants [Member] | ' | ' | ' |
Subsidiary, Sale of Stock [Line Items] | ' | ' | ' |
Convertible preferred stock and warrants to common stock | 71,000 | ' | ' |