Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2016 | Jul. 29, 2016 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2016 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q2 | |
Trading Symbol | NVRO | |
Entity Registrant Name | NEVRO CORP | |
Entity Central Index Key | 1,444,380 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 28,502,344 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Current Assets | ||
Cash and cash equivalents | $ 50,696 | $ 87,036 |
Short-term investments | 239,791 | 106,634 |
Accounts receivable, net of allowance for doubtful accounts of $442 and $122 at June 30, 2016 and December 31, 2015, respectively | 36,855 | 22,522 |
Inventories | 68,122 | 62,430 |
Prepaid expenses and other current assets | 7,014 | 4,009 |
Total current assets | 402,478 | 282,631 |
Property and equipment, net | 6,688 | 5,794 |
Other assets | 2,240 | 1,852 |
Restricted cash | 906 | 906 |
Total assets | 412,312 | 291,183 |
Current liabilities | ||
Accounts payable | 13,121 | 21,887 |
Accrued liabilities | 17,260 | 14,381 |
Other current liabilities | 172 | 121 |
Total current liabilities | 30,553 | 36,389 |
Long-term debt | 134,786 | 19,740 |
Other long-term liabilities | 573 | 462 |
Total liabilities | 165,912 | 56,591 |
Commitments and contingencies (Note 5) | ||
Stockholders’ equity | ||
Preferred stock, $0.001 par value, 10,000,000 shares authorized at June 30, 2016 and December 31, 2015; zero shares issued and outstanding at June 30, 2016 and December 31, 2015 | ||
Common stock, $0.001 par value, 290,000,000 shares authorized at June 30, 2016 and December 31, 2015; 28,482,180 and 28,143,573 shares issued and outstanding at June 30, 2016 and December 31, 2015, respectively | 28 | 28 |
Additional paid-in capital | 454,157 | 424,147 |
Accumulated other comprehensive loss | (310) | (175) |
Accumulated deficit | (207,475) | (189,408) |
Total stockholders’ equity | 246,400 | 234,592 |
Total liabilities and stockholders’ equity | $ 412,312 | $ 291,183 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Statement Of Financial Position [Abstract] | ||
Accounts receivable, allowance for doubtful accounts | $ 442 | $ 122 |
Preferred stock, par value | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 290,000,000 | 290,000,000 |
Common stock, shares issued | 28,482,180 | 28,143,573 |
Common stock, shares outstanding | 28,482,180 | 28,143,573 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations and Comprehensive Loss - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Income Statement [Abstract] | ||||
Revenue | $ 55,400 | $ 11,418 | $ 97,051 | $ 21,080 |
Cost of revenue | 18,842 | 5,508 | 34,506 | 9,381 |
Gross profit | 36,558 | 5,910 | 62,545 | 11,699 |
Operating expenses | ||||
Research and development | 8,169 | 5,263 | 14,530 | 10,261 |
Sales, general and administrative | 34,312 | 19,822 | 62,955 | 32,952 |
Total operating expenses | 42,481 | 25,085 | 77,485 | 43,213 |
Loss from operations | (5,923) | (19,175) | (14,940) | (31,514) |
Interest income | 295 | 110 | 510 | 214 |
Interest expense | (972) | (681) | (1,614) | (1,354) |
Other income (expense), net | (653) | 175 | (163) | (835) |
Loss on extinguishment of debt | (1,268) | (1,268) | ||
Loss before income taxes | (8,521) | (19,571) | (17,475) | (33,489) |
Provision for income taxes | 258 | 155 | 592 | 297 |
Net loss | (8,779) | (19,726) | (18,067) | (33,786) |
Other comprehensive loss: | ||||
Changes in foreign currency translation adjustment | (67) | 120 | (346) | (3) |
Changes in unrealized gains (losses) on short-term investments, net | 157 | 164 | 211 | 85 |
Net change in other comprehensive loss | 90 | 284 | (135) | 82 |
Comprehensive Loss | $ (8,689) | $ (19,442) | $ (18,202) | $ (33,704) |
Net loss per share, basic and diluted | $ (0.31) | $ (0.77) | $ (0.64) | $ (1.34) |
Weighted average number of common shares used to compute basic and diluted net loss per share | 28,381,253 | 25,564,249 | 28,287,855 | 25,208,710 |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Cash flows from operating activities | ||
Net loss | $ (18,067) | $ (33,786) |
Adjustments to reconcile net loss to net cash used in operating activities | ||
Depreciation and amortization | 769 | 130 |
Stock-based compensation expense | 6,504 | 3,130 |
Amortization (accretion) of discount on short-term investments | (208) | (173) |
Non-cash loss on extinguishment of debt | 1,157 | |
Payment of original issue discount | (1,500) | |
Provision for doubtful accounts | 259 | 88 |
Write-down of inventory | 1,697 | 1,306 |
Non-cash interest expense | 411 | 118 |
Unrealized losses on foreign currency transactions | 1,477 | |
Changes in operating assets and liabilities | ||
Accounts receivable | (14,945) | (1,115) |
Inventories | (8,594) | (12,747) |
Prepaid expenses and other current assets | (3,058) | (740) |
Other assets | (389) | (1,679) |
Accounts payable | (9,600) | 2,537 |
Accrued liabilities | 3,045 | 2,303 |
Other long-term liabilities | 112 | 15 |
Net cash used in operating activities | (40,930) | (40,613) |
Cash flows from investing activities | ||
Purchases of short-term investments | (224,215) | (93,983) |
Proceeds from maturity of short-term investments | 91,600 | 50,522 |
Changes in restricted cash | (606) | |
Purchases of property and equipment | (1,624) | (1,852) |
Net cash used in investing activities | (134,239) | (45,919) |
Cash flows from financing activities | ||
Proceeds from issuance of common stock in underwritten public offering | 118,440 | |
Proceeds from issuance of convertible notes | 172,500 | |
Convertible notes initial issuance discount and debt issuance costs | (5,515) | |
Proceeds from issuance of warrants | 33,120 | |
Purchase of convertible note hedges | (45,092) | |
Repayment of debt | (19,500) | |
Proceeds from issuance of common stock from stock option exercises | 3,704 | 1,566 |
Net cash provided by financing activities | 139,217 | 120,006 |
Effect of exchange rate changes on cash and cash equivalents | (388) | (50) |
Net increase (decrease) in cash and cash equivalents | (36,340) | 33,424 |
Cash and cash equivalents | ||
Cash and cash equivalents at beginning of period | 87,036 | 25,287 |
Cash and cash equivalents at end of period | 50,696 | 58,711 |
Significant non-cash transactions | ||
Purchases of property and equipment in accounts payable | 792 | 452 |
Vesting of early-exercised stock options | $ 27 | $ 27 |
Formation and Business of the C
Formation and Business of the Company | 6 Months Ended |
Jun. 30, 2016 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Formation and Business of the Company | 1. Formation and Business of the Company Nevro Corp. (the Company) was incorporated in Minnesota on March 10, 2006 to manufacture and market innovative active implantable medical devices for the treatment of neurological disorders initially focusing on the treatment of chronic pain. Subsequently, the Company was reincorporated in Delaware on October 4, 2006 and relocated to California. Since inception, the Company has incurred net losses and negative cash flows from operations. During the year ended December 31, 2015, the Company incurred a net loss of $67.4 million and used $100.4 million of cash in operations. For the six months ended June 30, 2016, the Company incurred a net loss of $18.1 million and used $40.9 million of cash in operations. At June 30, 2016 and December 31, 2015, the Company had an accumulated deficit of $207.5 million and $189.4 million, respectively. The Company has financed operations to date primarily through private placements of equity securities, borrowings under a debt agreement, the issuance of common stock in its November 2014 initial public offering, its June 2015 underwritten public offering and its June 2016 underwritten public offering of convertible senior notes. The Company’s ability to continue to meet its obligations and to achieve its business objectives for the foreseeable future is dependent upon, amongst other things, generating sufficient revenues and its ability to continue to control expenses. Failure to increase sales of its products, manage discretionary expenditures or raise additional financing, if required, may adversely impact the Company’s ability to achieve its intended business objectives. The accompanying interim condensed consolidated financial statements as of June 30, 2016 and for the six months ended June 30, 2016 and 2015, and the related interim information contained within the notes to the financial statements, are unaudited. The unaudited interim condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States (U.S. GAAP) for interim financial information and on the same basis as the audited financial statements filed included on the Company’s Annual Report on Form 10-K (Annual Report) filed with the Securities and Exchange Commission (SEC) on February 29, 2016. In the opinion of management, the accompanying unaudited interim condensed consolidated financial statements contain all adjustments (consisting of normal recurring adjustments) necessary to state fairly the Company’s financial position as of June 30, 2016, and the results of its operations and cash flows for the six months ended June 30, 2016 and 2015. All such adjustments are of a normal and recurring nature. The interim financial data as of June 30, 2016 is not necessarily indicative of the results to be expected for the year ending December 31, 2016, or for any future period. The accompanying condensed consolidated financial statements and related financial information should be read in conjunction with the audited consolidated financial statements and the related notes thereto for the year ended December 31, 2015 included in the Annual Report. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2016 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 2. Summary of Significant Accounting Policies Basis of Presentation These condensed consolidated financial statements have been prepared in accordance with U.S. GAAP. The condensed consolidated financial statements include the Company’s accounts and those of its wholly-owned subsidiaries. All intercompany accounts and transactions have been eliminated. Segments The chief operating decision maker for the Company is the Chief Executive Officer. The Chief Executive Officer reviews financial information presented on a consolidated basis, accompanied by information about revenue by geographic region, for purposes of allocating resources and evaluating financial performance. The Company has one business activity and there are no segment managers who are held accountable for operations, operating results or plans for levels or components below the consolidated unit level. Accordingly, the Company has determined that it has a single reportable and operating segment structure. The Company and its Chief Executive Officer evaluate performance based primarily on revenue in the geographic locations in which the Company operates. Historically, the Company derived most of its revenue from sales to customers in Australia and Europe. In May 2015, the U.S. Food and Drug Administration (FDA) approved the Company’s premarket approval (PMA) application to market Senza in the United States and the Company launched sales in the United States in 2015. Revenue by geography is based on the billing address of the customer. The following table sets forth, by geographic area, those countries with revenue accounting for more than 10% of the total revenue in any of the periods presented: Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 United States 73 % * 72 % * Australia 10 % 30 % * 29 % United Kingdom * 16 % * 19 % Germany * 19 % * 19 % * Represents less than 10% Long-lived assets located outside the United States are not material; therefore, disclosures have been limited to revenue. Foreign Currency Translation The Company’s consolidated financial statements are prepared in U.S. dollars (USD). Its foreign subsidiaries use their local currency as their functional currency and maintain their records in the local currency. Accordingly, the assets and liabilities of these subsidiaries are translated into USD using the current exchange rates in effect at the balance sheet date and equity accounts are translated into USD using historical rates. Revenues and expenses are translated using the monthly average exchange rates during the period when the transaction occurs. The resulting foreign currency translation adjustments from this process are recorded in accumulated other comprehensive income (loss) on the consolidated balance sheets. Unrealized foreign exchange gains and losses from the remeasurement of assets and liabilities denominated in currencies other than the functional currency of the reporting entity are recorded in other income (expense), net. Additionally, realized gains and losses resulting from transactions denominated in currencies other than the local currency are recorded in other income (expense), net in the condensed consolidated statements of operations. The Company recorded net unrealized and net realized foreign currency transaction gain (loss) during the periods presented as follows (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 Net unrealized foreign currency gain (loss) $ (1,224 ) $ 1,158 $ (1,278 ) $ 665 Net realized foreign currency gain (loss) 613 (934 ) 1,228 (1,406 ) As the Company’s international operations grow, its risks associated with fluctuations in currency rates will become greater, and the Company will continue to reassess its approach to managing this risk. In addition, currency fluctuations or a weakening USD can increase the costs of the Company’s international expansion. To date, the Company has not entered into any foreign currency hedging contracts. Based on its current international structure, the Company does not plan on engaging in hedging activities in the near future. Use of Estimates The preparation of financial statements in accordance with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the condensed consolidated financial statements and accompanying notes. Significant accounting estimates and management judgments reflected in the condensed consolidated financial statements include items such as allowances for doubtful accounts; clinical accruals; stock-based compensation; depreciation and amortization periods; inventory valuation; and valuation of investments and deferred tax assets, including valuation allowances. Estimates are based on historical experience, where applicable, and other assumptions believed to be reasonable by the management. Actual results may differ from those estimates under different assumptions or conditions. Concentration of Credit Risk and Other Risks and Uncertainties Financial instruments that potentially subject the Company to a concentration of credit risk consist of cash, cash equivalents and investments. The majority of the Company’s cash is held by one financial institution in the United States in excess of federally insured limits. The Company maintained investments in money market funds that were not federally insured during the periods ended June 30, 2016 and December 31, 2015. The Company also held cash in foreign banks of approximately $8.1 million at June 30, 2016 and $5.2 million at December 31, 2015 that was not federally insured. The Company has not experienced any losses on its deposits of cash and cash equivalents. Through December 31, 2014, all of the Company’s revenue had been derived from sales of its products in international markets, principally Australia and Europe. In May 2015, the Company launched sales in the United States upon receiving FDA approval to market and sell its products in the United States. In the international markets in which the Company participates, the Company uses both a direct sales force and distributors to sell its products, while in the United States the Company utilizes a direct sales force. The Company performs ongoing credit evaluations of its direct customers and distributors, does not require collateral, and maintains allowances for potential credit losses on customer accounts when deemed necessary. During the three and six months ended June 30, 2016 and 2015, no single customer accounted for more than 10% of the Company’s revenue. As of June 30, 2016 and December 31, 2015, no single customer accounted for 10% of the accounts receivable balance. The Company is subject to risks common to medical device companies, including, but not limited to, new technological innovations, dependence on key personnel, protection of proprietary technology, compliance with government regulations, product liability, manufacturing quality and scaling, continued reimbursement from third-party payors, There can be no assurance that the Company’s products or services will continue to be accepted in its existing marketplaces, nor can there be any assurance that any future products or services can be developed or manufactured at an acceptable cost and with appropriate performance characteristics, or that such products or services will be successfully marketed, if at all. The Company may choose to raise additional funds to further enhance its research and development efforts, for product expansion opportunities or to acquire a new business or products that are complementary to its business. There can be no assurance that such financing will be available or will be at terms acceptable by the Company. Fair Value of Financial Instruments The carrying amounts of certain of the Company’s financial instruments, including cash equivalents, short-term investments, accounts receivable, accounts payable and accrued liabilities, approximate fair value due to their relatively short maturities. Cash and Cash Equivalents The Company considers all highly-liquid investments purchased with an original maturity of three months or less at the date of purchase to be cash equivalents. Cash and cash equivalents include money market funds, commercial paper and corporate notes in the amount of $37.2 million and $36.6 million as of June 30, 2016 and December 31, 2015, respectively. At June 30, 2016 and December 31, 2015, the Company’s cash equivalents were held at institutions in the United States and include deposits in a money market fund which was unrestricted as to withdrawal or use. Restricted Cash Restricted cash as of June 30, 2016 and December 31, 2015 consists of a letter of credit of $0.6 million representing collateral for the Company’s Redwood City, California building lease pursuant to an agreement dated March 5, 2015 and certificates of deposit of $0.3 million collateralizing payment of charges related to the Company’s credit cards. Investment Securities The Company classifies its investment securities as available-for-sale. Those investments with maturities of less than 12 months at the date of purchase are considered short-term investments. Those investments with maturities greater than 12 months at the date of purchase are considered long-term investments. The Company’s investment securities classified as available-for-sale are recorded at fair value based upon quoted market prices at period end. Unrealized gains and losses, deemed temporary in nature, are reported as a separate component of accumulated comprehensive income (loss). A decline in the fair value of any security below cost that is deemed other than temporary results in a charge to earnings and the corresponding establishment of a new cost basis for the security. Premiums (discounts) are amortized (accreted) over the life of the related security as an adjustment to yield using the straight-line interest method. Dividend and interest income are recognized when earned. Realized gains and losses are included in earnings and are derived using the specific identification method for determining the cost of securities sold. Inventories Inventories are stated at the lower of cost to purchase or manufacture the inventory or the market value of such inventory. Cost is determined using the standard cost method which approximates the first-in, first-out basis. Market value is determined as the lower of replacement cost or net realizable value. The Company regularly reviews inventory quantities in consideration of actual loss experiences, projected future demand and remaining shelf life to record a provision for excess and obsolete inventory when appropriate. The Company writes down inventory that has become obsolete, inventory that has a cost basis in excess of its expected net realizable value, and inventory that is in excess of expected requirements. The estimate of excess quantities is subjective and primarily dependent on the Company’s estimates of future demand for a particular product. If the estimate of future demand is inaccurate based on actual sales, the Company may increase the write down for excess inventory for that component and record a charge to inventory impairment in the accompanying consolidated statements of operations and comprehensive loss. The Company periodically evaluates the carrying value of inventory on hand for potential excess amounts over demand using the same lower of cost or market approach at that has been used to value inventory. The Company also periodically evaluates inventory quantities in consideration of actual loss experience. In addition, the Company determines at times that there may be certain inventory that does not meet its product requirements. As a result of these evaluations, the Company recognized total write downs of $0.7 million and $1.3 million for its inventories for the three months ended June 30, 2016 and 2015, respectively, and $1.7 million and $1.3 million for the six months ended June 30, 2016 and 2015, respectively. The Company’s estimation of the future demand for a particular component of the Senza product may vary and may result in changes in estimates of inventory values in any particular period. Shipping and Handling Costs Shipping and handling costs are expensed as incurred and are included in cost of revenue. Revenue Recognition The Company recognizes revenue when all of the following criteria are met: · persuasive evidence of an arrangement exists; · the sales price is fixed or determinable; · collection of the relevant receivable is reasonably assured at the time of sale; and · delivery has occurred or services have been rendered. For a majority of sales, where the Company’s sales representative delivers its product at the point of implantation at hospitals or medical facilities, the Company recognizes revenue upon completion of the procedure and authorization, which represents satisfaction of the required revenue recognition criteria. For the remaining sales, which are sent from the Company’s distribution centers directly to hospitals and medical facilities, as well as distributor sales, where product is ordered in advance of an implantation procedure and a valid purchase order has been received, the Company recognizes revenue at the time of shipment of the product, which represents the point in time when the customer has taken ownership and assumed the risk of loss and the required revenue recognition criteria are satisfied. The Company’s customers are obligated to pay within specified terms regardless of when or if they ever sell or use the products. The Company does not offer rights of return or price protection and it has no post-delivery obligations. The Company has a limited one to five year warranty to most customers in the markets in which it operates. Estimated warranty obligations are recorded at the time of sale, and warranty costs have not been material to date. Property and Equipment Property and equipment are stated at cost less accumulated depreciation and amortization. Depreciation of property and equipment, other than leasehold improvements, is computed using the straight-line method over the assets’ estimated useful lives of three to five years. Leasehold improvements are amortized on a straight-line basis over the shorter of the estimated useful life of the asset or the life of the lease. Upon retirement or sale, the cost and related accumulated depreciation are removed from the consolidated balance sheet and the resulting gain or loss, if any, is reflected in operations. Maintenance and repairs are charged to operations as incurred. Impairment of Long-Lived Assets The Company reviews long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset might not be recoverable. When such an event occurs, management determines whether there has been impairment by comparing the anticipated undiscounted future net cash flows to the related asset group’s carrying value. If an asset is considered impaired, the asset is written down to fair value, which is based either on discounted cash flows or appraised value, depending on the nature of the asset. There were no impairment charges or changes in estimated useful lives recorded through June 30, 2016. Income Taxes During the three and six months ended June 30, 2016 and 2015, the Company calculated its interim tax provision to record taxes incurred on a discrete basis due to the variability of taxable income in the jurisdictions in which it operates. Additionally, the Company records income taxes using the asset and liability method, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been recognized in the Company’s condensed consolidated financial statements or income tax returns. In estimating future tax consequences, expected future events other than enactments or changes in the tax law or rates are considered. Valuation allowances are provided when necessary to reduce deferred tax assets to the amount expected to be realized. The provision for income taxes for the three and six months ended June 30, 2016 and 2015 is primarily comprised of foreign taxes based upon income earned during the period with no tax benefit recorded for the loss jurisdictions. The Company operates in various tax jurisdictions and is subject to audit by various tax authorities. To date, taxes paid have been predominantly due to income taxes in foreign jurisdictions in which the Company conducts business. The Company provides for tax contingencies whenever it is deemed probable that a tax asset has been impaired or a tax liability has been incurred for events such as tax claims or changes in tax laws. Tax contingencies are based upon their technical merits, relative tax law and the specific facts and circumstances as of each reporting period. Changes in facts and circumstances could result in material changes to the amounts recorded for such tax contingencies. The Company records uncertain tax positions on the basis of a two-step process whereby (1) a determination is made as to whether it is more likely than not that the tax positions will be sustained based on the technical merits of the position and (2) for those tax positions that meet the more-likely-than-not recognition threshold, the Company recognizes the largest amount of tax benefit that is greater than 50% likely to be realized upon ultimate settlement with the related tax authority. The Company’s policy is to recognize interest and penalties related to income taxes as a component of income tax expense. No interest or penalties related to income taxes have been recognized in the statements of operations and comprehensive loss for the three and six months ended June 30, 2016 and 2015. Comprehensive Income (Loss) Comprehensive income (loss) represents all changes in the stockholders’ equity except those resulting from and distributions to stockholders. The Company’s changes in unrealized gains and losses on available-for-sale investment securities and foreign currency translation adjustments represent the components of other comprehensive income (loss) that are excluded from the reported net loss and have been presented in the consolidated statements of operations and comprehensive loss. Research and Development Research and development costs, including new product development, regulatory compliance and clinical research, are charged to operations as incurred in the consolidated statements of operations and comprehensive loss. Such costs include personnel-related costs, including stock-based compensation, supplies, services, depreciation, allocated facilities and information services, clinical trial and related clinical manufacturing expenses, fees paid to investigative sites and other indirect costs. Stock-Based Compensation The Company accounts for stock-based compensation arrangements with employees in accordance with Accounting Standards Codification (ASC) 718, Compensation - Stock Compensation. The Company’s determination of the fair value of stock options on the date of grant utilizes the Black-Scholes option-pricing model and is impacted by its common stock price as well as changes in assumptions regarding a number of highly complex and subjective variables. These variables include, but are not limited to, expected term that options will remain outstanding, expected common stock price volatility over the term of the option awards, risk-free interest rates and expected dividends. The fair value is recognized over the period during which an optionee is required to provide services in exchange for the option award, known as the requisite service period (usually the vesting period) on a straight-line basis. Stock-based compensation expense recognized at fair value includes the impact of estimated forfeitures. The Company estimates future forfeitures at the date of grant and revises the estimates, if necessary, in subsequent periods if actual forfeitures differ from those estimates. Equity instruments issued to non-employees are recorded at their fair value on the measurement date and are subject to periodic adjustments as the underlying equity instruments vest. The fair value of options granted to consultants is expensed when vested. The non-employee stock-based compensation expense was not material for all periods presented. Estimating the fair value of equity-settled awards as of the grant date using valuation models, such as the Black-Scholes option pricing model, is affected by assumptions regarding a number of complex variables. Changes in the assumptions can materially affect the fair value and ultimately how much stock-based compensation expense is recognized. These inputs are subjective and generally require significant analysis and judgment to develop. For all stock options granted to date, the Company estimated the volatility data based on a study of publicly traded industry peer companies. For purposes of identifying these peer companies, the Company considered the industry, stage of development, size and financial leverage of potential comparable companies. The risk-free interest rate is based on the yield available on U.S. Treasury zero-coupon issues similar in duration to the expected term of the equity-settled award. The Company accounts for stock-based compensation for the restricted stock units at their fair value, based on the closing market price of the Company’s common stock on the grant date. These costs are recognized on a straight-line basis over the requisite service period, which is generally the vesting term of four years. The Company also issues stock options and restricted stock units with vesting based upon completion of performance goals. The fair value for these performance based awards is recognized over the period during which the goals are to be achieved. Stock-based compensation expense recognized at fair value includes the impact of estimated probability that the goals would be achieved, which is assessed prior to the requisite service period for the specific goals. The Company recognizes a benefit from stock-based compensation as additional paid-in capital if an incremental tax benefit is realized by following the with-and-without approach. Net Loss per Share of Common Stock Basic net loss per common share is calculated by dividing the net loss by the weighted average number of common shares outstanding during the period, without consideration for potentially dilutive securities. Diluted net loss per share is computed by dividing the net loss by the weighted average number of common shares and potentially dilutive securities outstanding for the period. For purposes of the diluted net loss per share calculation, the Company’s restricted stock units and common stock options are considered to be potentially dilutive securities. Because the Company has reported a net loss in all periods presented, diluted net loss per common share is the same as basic net loss per common share for those periods. Recent Accounting Pronouncements In July 2015, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2015-11, Inventory (Topic 330): Simplifying the Measurement of Inventory In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) Revenue Recognition. Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date Revenue from Contracts with Customers (Topic 606) Identifying Performance Obligations and Licensing, In May 2016, the FASB issued ASU No. 2016-12, Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients , related to disclosures of remaining performance obligations, as well as other amendments to guidance on collectability, non-cash consideration and the presentation of sales and other similar taxes collected from customers. In August 2014, the FASB issued ASU No. 2014-15, Disclosure of Uncertainties About an Entity’s Ability to Continue as a Going Concern. In January 2016, the FASB issued ASU 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities, In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) In March 2016, the FASB issued ASU No. 2016-09, Compensation-Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting. In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2016 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 3. Fair Value Measurements Fair value is defined as the exchange price that would be received for an asset or an exit price paid to transfer a liability in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs. The fair value hierarchy defines a three-level valuation hierarchy for disclosure of fair value measurements as follows: · Level 1—Observable inputs, such as quoted prices in active markets for identical assets or liabilities. · Level 2—Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. · Level 3—Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. Cash Equivalents and Short-Term Investments The Company’s cash equivalents are comprised of investments in money market funds that are classified as Level 1 of the fair value hierarchy and commercial paper that is classified as Level 2 in the fair value hierarchy. To value its money market funds, the Company values the funds at $1 stable net asset value, which is the market pricing convention for identical assets that the Company has the ability to access. The Company’s short-term investments are comprised of commercial paper and U.S. government agency obligations. All short-term investments have been classified within Level 1 or Level 2 of the fair value hierarchy because of the sufficient observable inputs for revaluation. The Company’s Level 2 investments are valued using third-party pricing sources. The pricing services utilize industry-standard valuation models, including both income and market-based approaches, for which all significant inputs are observable, either directly or indirectly, to estimate fair value. These inputs include reported trades of and broker/dealer quotes on the same or similar investments, issuer credit spreads, benchmark investments, prepayment/default projections based on historical data and other observable inputs. The following table sets forth the Company’s financial instruments that were measured at fair value on a recurring basis by level within the fair value hierarchy (in thousands): Balance as of June 30, 2016 Level 1 Level 2 Level 3 Total Assets: Money market funds (i) $ 12,424 $ — $ — $ 12,424 Commercial paper (ii) — 193,147 — 193,147 Corporate notes (ii) — 71,402 — 71,402 Total assets $ 12,424 $ 264,549 $ — $ 276,973 Balance as of December 31, 2015 Level 1 Level 2 Level 3 Total Assets: Money market funds (i) $ 36,559 $ — $ — $ 36,559 Commercial paper (ii) — 129,206 — 129,206 Treasury bonds (iii) 10,617 — — 10,617 Total assets $ 47,176 $ 129,206 $ — $ 176,382 (i) Included in cash and cash equivalents on the condensed consolidated balance sheets. (ii) Included in either cash and cash equivalents or short-term investments on the condensed consolidated balance sheets. (iii) Included in short-term investments on the condensed consolidated balance sheets. |
Balance Sheet Components
Balance Sheet Components | 6 Months Ended |
Jun. 30, 2016 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Balance Sheet Components | 4. Balance Sheet Components Investments The fair value of the Company’s cash equivalents and short-term investments approximates their respective carrying amounts due to their short-term maturity. The following is a summary of the gross unrealized gains and unrealized losses on the Company’s investment securities, excluding investments in money market funds (in thousands): June 30, 2016 Amortized Cost Gross Unrealized Holding Gains Gross Unrealized Holding Losses Aggregate Fair Value Investment Securities Commercial paper (i) $ 192,652 $ 495 $ — $ 193,147 Corporate notes (i) 71,433 3 (34 ) 71,402 Total securities $ 264,085 $ 498 $ (34 ) $ 264,549 (i) December 31, 2015 Amortized Cost Gross Unrealized Holding Gains Gross Unrealized Holding Losses Aggregate Fair Value Investment Securities Commercial paper (i) $ 129,075 $ 131 $ — $ 129,206 Treasury bonds 10,616 1 — 10,617 Total securities $ 139,691 $ 132 $ — $ 139,823 (i) Included $33.2 million of commercial paper that is classified as cash and cash equivalents on the consolidated balance sheet. Realized gains or losses and other-than-temporary impairments, if any, on available-for-sale securities are reported in other income (expense), net as incurred. The cost of securities sold is determined based on the specific identification method. The Company has not recorded any realized gains or losses on its investments during the periods presented. The contractual maturities of the Company’s investment securities were all within one year as of June 30, 2016 and December 31, 2015. Inventories (in thousands) June 30, 2016 December 31, 2015 Raw materials $ 34,411 $ 37,096 Finished goods 33,711 25,334 $ 68,122 $ 62,430 Property and Equipment, Net (in thousands) June 30, 2016 December 31, 2015 Laboratory equipment $ 1,537 $ 921 Computer equipment and software 2,301 1,836 Furniture and fixtures 2,005 1,752 Leasehold improvements 1,213 1,188 Construction in process 1,104 799 Total 8,160 6,496 Less: Accumulated depreciation and amortization (1,472 ) (702 ) Property and equipment, net $ 6,688 $ 5,794 The Company recognized depreciation and amortization expense on property and equipment as follows (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 Depreciation and amortization expense $ 389 $ 84 $ 769 $ 130 Accrued Liabilities (in thousands) June 30, 2016 December 31, 2015 Accrued payroll and related expenses $ 11,028 $ 9,857 Accrued professional fees 942 583 Accrued taxes 2,069 2,044 Accrued clinical and research expenses 954 405 Accrued interest 143 — Accrued other 2,124 1,492 Total accrued liabilities $ 17,260 $ 14,381 |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2016 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 5. Commitments and Contingencies Operating Leases The Company entered into a non-cancellable operating lease effective May 1, 2010 for facilities in Menlo Park, California as amended in 2012 to extend the period of the lease until May 31, 2015. In March 2015, the Company again extended the lease through September 30, 2015, at which time the lease terminated. In August 2014, the Company entered into a new facility lease for warehouse space beginning on August 21, 2014 through May 31, 2015. In March 2015, the Company extended the warehouse lease through February 2017 under which it is obligated to pay approximately $0.3 million in lease payments over the remaining term of the lease. In March 2015, the Company entered into a lease agreement for approximately 50,000 square feet of office space located in Redwood City, California for a period beginning on June 30, 2015 and ending in May 2022, with initial annual payments of approximately $2.0 million, increasing to $2.4 million annually during the final year of the lease term. The Company recognized rent expense during the periods indicated as follows (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 Rent expense $ 607 $ 201 $ 1,207 $ 409 Contingencies From time to time, the Company may have certain contingent liabilities that arise in the ordinary course of business activities related to, for example, employment matters and patent issues. The Company accrues a liability for such matters when it is probable that future expenditures will be made and such expenditures can be reasonably estimated. There are no matters which the Company has determined are reasonably possible of materially affecting the Company’s financial position or results of operations. Indemnification The Company enters into standard indemnification arrangements in the ordinary course of business. Pursuant to these arrangements, the Company indemnifies, holds harmless and agrees to reimburse the indemnified parties for losses suffered or incurred by the indemnified party, in connection with any trade secret, copyright, patent or other intellectual property infringement claim by any third-party with respect to the Company’s technology. The term of these indemnification agreements is generally perpetual. The maximum potential amount of future payments the Company could be required to make under these agreements is not determinable because it involves claims that may be made against the Company in the future, but have not yet been made. The Company has entered into indemnification agreements with its directors and officers that may require the Company to indemnify its directors and officers against liabilities that may arise by reason of their status or service as directors or officers, other than liabilities arising from willful misconduct of the individual. The maximum potential amount of future payments the Company could be required to make under these indemnification agreements is unlimited; however, the Company has director and officer insurance coverage that reduces the Company’s exposure and enables the Company to recover a portion of any future amounts paid. The Company believes the estimated fair value of these indemnification agreements in excess of applicable insurance coverage is minimal. The Company has not incurred costs to defend lawsuits or settle claims related to these indemnification agreements. No liability associated with such indemnifications has been recorded to date. License Agreement In March 2006, the Company entered into an amended and restated license agreement with the Mayo Foundation for Medical Education and Research (Mayo), and Venturi Group LLC (VGL), which provides the Company access to certain know-how and licensed patents owned by Mayo and VGL for treatment of central, autonomic and peripheral nervous system disorders, including pain, using devices to modulate nerve signaling. The licenses granted are exclusive and the Company has the right to sub-license. The agreement will terminate upon the last to expire patent application, unless terminated earlier. The agreement can be terminated any time after three years from March 2006 by Mayo or VGL. Per the terms of the license, the Company is required to pay royalties based on the greater of earned royalties or a minimum royalty. The earned royalty is based on a percentage of net sales of licensed products either by the Company or the sub-licensee. The minimum royalty payment is based on royalty periods as defined in the agreement. In March 2011, the Company entered into a Phase II License Agreement with Mayo which provides the Company access to the certain know-how and licensed patents owned by Mayo. The licenses granted are exclusive and the Company has the right to sub-license. Per terms of the license, the Company is required to: · Pay a retainer fee of $40,000 per annum starting March 2011 and ending on February 2013; and · Pay royalties based on the greater of earned royalties or a minimum royalty. The earned royalties are based on a percentage of net sales of licensed products either by the Company or the sub-licensee. The minimum annual royalty payment is $200,000. The Company recognized royalty expense during the periods indicated as follows (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 Royalty expense $ 551 $ 113 $ 965 $ 210 |
Long-term Debt
Long-term Debt | 6 Months Ended |
Jun. 30, 2016 | |
Debt Disclosure [Abstract] | |
Long-term Debt | 6. Long-term Debt 1.75% Convertible Senior Notes and Convertible Note Hedge and Warrant Transactions In June 2016, the Company issued $150.0 million aggregate principal amount of 1.75% convertible senior notes due 2021 in a registered underwritten public offering and an additional $22.5 million aggregate principal amount of such notes pursuant to the exercise in full of the over-allotment options of the underwriters (the 2021 Notes). The interest rates are fixed at 1.75% per annum and are payable semi-annually in arrears on June 1 and December 1 of each year, commencing on December 1, 2016. The total net proceeds from the debt offering, after deducting initial purchase discounts and debt issuance costs, were approximately $166.2 million. Each $1,000 principal amount of the 2021 Notes will initially be convertible into 10.3770 shares of the Company’s common stock, which is equivalent to an initial conversion price of approximately $96.37 per share, subject to adjustment upon the occurrence of specified events. The 2021 Notes will be convertible at the option of the holders at any time prior to the close of business on the business day immediately preceding December 1, 2020, only under the following circumstances: (1) during any calendar quarter commencing after the calendar quarter ending on September 30, 2016 (and only during such calendar quarter), if the last reported sale price of the Company’s common stock for at least 20 trading days (whether or not consecutive) during a period of 30 consecutive trading days ending on the last trading day of the immediately preceding calendar quarter is greater than or equal to 130% of the conversion price on each applicable trading day; (2) during the five business day period after any ten consecutive trading day period (the measurement period) in which the trading price (as defined in the indenture to the 2021 Notes) per $1,000 principal amount of notes for each trading day of the measurement period was less than 98% of the product of the last reported sale price of the Company’s common stock and the conversion rate on each such trading day; or (3) upon the occurrence of specified corporate events. On or after December 1, 2020 until the close of business on the second scheduled trading day immediately preceding the maturity date, holders may convert their 2021 Notes at any time, regardless of the foregoing circumstances. If the Company undergoes a fundamental change prior to the maturity date, holders of the notes may require the Company to repurchase for cash all or any portion of their notes at a repurchase price equal to 100% of the principal amount of the notes to be repurchased, plus accrued and unpaid interest to, but excluding, the fundamental change repurchase date. It is the Company’s current intent and policy to settle conversions through combination settlement with a specified dollar amount per $1,000 principal amount of notes of $1,000. In accounting for the issuance of the convertible senior notes, the Company separated the 2021 Notes into liability and equity components. The carrying amount of the liability component was calculated by measuring the fair value of a similar debt instrument that does not have an associated convertible feature. The carrying amount of the equity component representing the conversion option was $32.9 million and was determined by deducting the fair value of the liability component from the par value of the 2021 Notes. The equity component is not remeasured as long as it continues to meet the conditions for equity classification. The excess of the principal amount of the liability component over its carrying amount ("debt discount") is amortized to interest expense over the term of the 2021 Notes expense at an effective interest rate of 6.29% over the contractual terms of the notes. In accounting for the debt issuance costs of $6.3 million related to the 2021 Notes, the Company allocated the total amount incurred to the liability and equity components of the 2021 Notes based on their relative values. Issuance costs attributable to the liability component were $5.1 million and will be amortized to interest expense using the effective interest method over the contractual terms of the 2021 Notes. The net carrying amount of the liability component of the 2021 Notes was as follows (in thousands): June 30, 2016 Principal $ 172,500 Unamortized discount (32,674 ) Unamortized issuance cost (5,040 ) Net carrying amount $ 134,786 As of June 30, 2016, the fair value of the 2021 Notes was $181.8 million. The fair value was determined on the basis of market prices observable for similar instruments and is considered Level 2 in the fair value hierarchy. The net carrying amount of the equity component of the 2021 Notes was as follows (in thousands): June 30, 2016 Debt discount related to value of conversion option $ 32,945 Debt issuance cost (1,198 ) Net carrying amount $ 31,747 The following table sets forth the interest expense recognized related to the 2021 Notes (in thousands): Three Months Ended June 30, 2016 Contractual interest expense $ 143 Amortization of debt discount 272 Amortization of debt issuance costs 36 Total interest expense related to the 2021 Notes $ 451 In connection with the offering of the 2021 Notes, the Company entered into convertible note hedge transactions with certain bank counterparties in which the Company has the option to purchase initially (subject to adjustment for certain specified events) a total of approximately 1.8 million shares of the Company’s common stock at a price of approximately $96.37 per share. The total cost of the convertible note hedge transactions was $45.1 million. In addition, the Company sold warrants to certain bank counterparties whereby the holders of the warrants have the option to purchase initially (subject to adjustment for certain specified events) a total of approximately 1.8 million shares of the Company’s common stock at a price of $127.28 per share. The Company received $33.1 million in cash proceeds from the sale of these warrants. Taken together, the purchase of the convertible note hedges and the sale of warrants are intended to offset any actual dilution from the conversion of these notes and to effectively increase the overall conversion price from $96.37 to $127.28 per share. As these transactions meet certain accounting criteria, the convertible note hedges and warrants are recorded in stockholders’ equity and are not accounted for as derivatives. The net cost of $12.0 million incurred in connection with the convertible note hedge and warrant transactions was recorded as a reduction to additional paid-in capital on the consolidated balance sheet. Capital Royalty Term Loan On October 24, 2014, the Company entered into a credit facility (the “credit facility”) with Capital Royalty Partners and certain of its affiliates (the “lenders”) under which, subject to certain conditions, the Company may enter into three term loan agreements totaling $50.0 million with the lenders on or before September 30, 2015. Under the credit facility, each term loan is to be paid over 24 quarterly payment periods, with the first payment due on the last day of the calendar quarter during the period for which the term loan is made. The first twelve quarterly payments will be interest only payments, and the last twelve quarterly payments will be equal installments in which interest and principal amounts are paid. Interest is calculated at a fixed rate of 11.5% per annum. During the interest only period for the first twelve quarterly payments under each term loan, the Company may elect to make the 11.5% interest payment by making a cash payment for the 8.0% per annum of interest and making a payment in kind for the remaining amount, for which the 3.5% per annum of interest would be added to the outstanding principal amount of the loans. The Company has initially chosen not to elect the payment in kind option. The final payment will also include an additional amount for closing and repayment fees equivalent to 5% of the term loan agreement. The Company entered into the first term loan for $20.0 million on December 12, 2014, and incurred closing fees of $0.5 million. Under the original agreement, the Company was eligible to enter into a second term loan for a principal amount of $10.0 million on or prior to March 31, 2015 and a third term loan for a principal amount of $20.0 million on or prior to September 30, 2015, in each case, upon meeting certain conditions. In March 2015, the Company entered into a First Amendment under its credit facility with Capital Royalty Partners to extend the draw-down deadline of the second draw from March 31, 2015 to June 29, 2015. In June 2015, the Company entered into a Second Amendment to extend the draw-down deadline of the second draw from June 29, 2015 to September 30, 2015. The Company met the deadline to satisfy certain conditions precedent on or prior to September 30, 2015, such that the interest only period on the first draw was extended so that the outstanding principal amount of the term loans would be payable in a single installment at maturity (the 24th quarterly payment date after the first borrowing). The credit facility contains customary events of default, including in the event of bankruptcy or upon the occurrence of a material adverse change. The Company’s obligations under the credit facility were collateralized by substantially all of its assets, including its intellectual property. In June 2016, the Company paid the outstanding principal and repayment fees totaling $21.0 million to the lenders. Subsequently, t |
Net Loss Per Share
Net Loss Per Share | 6 Months Ended |
Jun. 30, 2016 | |
Earnings Per Share [Abstract] | |
Net Loss Per Share | 7. Net Loss Per Share The following table summarizes the computation of basic and diluted net loss per share (in thousands, except share and per share data): Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 Net loss, basic and diluted $ (8,779 ) $ (19,726 ) $ (18,067 ) $ (33,786 ) Weighted average shares outstanding 28,389,970 25,587,716 28,298,415 25,234,020 Less: weighted average shares subject to repurchase (8,717 ) (23,467 ) (10,560 ) (25,310 ) Weighted average shares used to compute basic and diluted net loss per share 28,381,253 25,564,249 28,287,855 25,208,710 Net loss per share, basic and diluted $ (0.31 ) $ (0.77 ) $ (0.64 ) $ (1.34 ) Basic net loss per share is computed by dividing the net loss by the weighted average number of common shares outstanding for the period. Diluted net loss per share is computed by dividing the net loss by the weighted average number of common shares and dilutive common stock equivalents outstanding for the period, if inclusion of these is dilutive. Since the Company expects to settle the principal amount of its outstanding convertible senior notes in cash, the Company uses the treasury stock method for calculating any potential dilutive effect of the conversion spread on diluted net income per share, if applicable. The conversion spread will have a dilutive impact on diluted net income per share of common stock when the average market price of the Company’s common stock for a given period exceeds the conversion price of $96.37 per share for the 2021 Notes. June 30 2016 2015 Unreleased restricted stock 244,691 — Options to purchase common stock 3,065,110 2,968,932 Total 3,309,801 2,968,932 |
Employee Benefit Plans
Employee Benefit Plans | 6 Months Ended |
Jun. 30, 2016 | |
Postemployment Benefits [Abstract] | |
Employee Benefit Plans | 8. Employee Benefit Plans 401(k) Plan In 2007, the Company adopted a 401(k) plan for its employees whereby eligible employees may contribute up to the maximum amount permitted by the Internal Revenue Code. In June 2016, the Company adopted a policy to match a portion of employee contributions for all qualified employees participating in the 401(k) plan. Employee Stock Purchase Plan Concurrent with the effectiveness of the Company’s registration statement on Form S-1 in November 2014, the Company’s 2014 Employee Stock Purchase Plan (ESPP) became effective. The ESPP allows eligible employees to purchase shares of the Company’s Class A common stock at a discount through payroll deductions of up to 15% of their eligible compensation, subject to any plan limitations. The ESPP generally provides for six-month offering periods, and at the end of each offering period, employees are able to purchase shares at 85% of the lower of the fair market value of the Company’s Class A common stock on the first trading day of the offering period or on the last trading day of the offering period. Shares of common stock issued under the ESPP were 42,613 for the three and six months ended June 30, 2016. No shares of common stock were issued under the ESPP for the three and six months ended June 30, 2015. Shares available for future purchase under the ESPP were 650,984 at June 30, 2016. |
Summary of Significant Accoun14
Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2016 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation These condensed consolidated financial statements have been prepared in accordance with U.S. GAAP. The condensed consolidated financial statements include the Company’s accounts and those of its wholly-owned subsidiaries. All intercompany accounts and transactions have been eliminated. |
Segments | Segments The chief operating decision maker for the Company is the Chief Executive Officer. The Chief Executive Officer reviews financial information presented on a consolidated basis, accompanied by information about revenue by geographic region, for purposes of allocating resources and evaluating financial performance. The Company has one business activity and there are no segment managers who are held accountable for operations, operating results or plans for levels or components below the consolidated unit level. Accordingly, the Company has determined that it has a single reportable and operating segment structure. The Company and its Chief Executive Officer evaluate performance based primarily on revenue in the geographic locations in which the Company operates. Historically, the Company derived most of its revenue from sales to customers in Australia and Europe. In May 2015, the U.S. Food and Drug Administration (FDA) approved the Company’s premarket approval (PMA) application to market Senza in the United States and the Company launched sales in the United States in 2015. Revenue by geography is based on the billing address of the customer. The following table sets forth, by geographic area, those countries with revenue accounting for more than 10% of the total revenue in any of the periods presented: Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 United States 73 % * 72 % * Australia 10 % 30 % * 29 % United Kingdom * 16 % * 19 % Germany * 19 % * 19 % * Represents less than 10% Long-lived assets located outside the United States are not material; therefore, disclosures have been limited to revenue. |
Foreign Currency Translation | Foreign Currency Translation The Company’s consolidated financial statements are prepared in U.S. dollars (USD). Its foreign subsidiaries use their local currency as their functional currency and maintain their records in the local currency. Accordingly, the assets and liabilities of these subsidiaries are translated into USD using the current exchange rates in effect at the balance sheet date and equity accounts are translated into USD using historical rates. Revenues and expenses are translated using the monthly average exchange rates during the period when the transaction occurs. The resulting foreign currency translation adjustments from this process are recorded in accumulated other comprehensive income (loss) on the consolidated balance sheets. Unrealized foreign exchange gains and losses from the remeasurement of assets and liabilities denominated in currencies other than the functional currency of the reporting entity are recorded in other income (expense), net. Additionally, realized gains and losses resulting from transactions denominated in currencies other than the local currency are recorded in other income (expense), net in the condensed consolidated statements of operations. The Company recorded net unrealized and net realized foreign currency transaction gain (loss) during the periods presented as follows (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 Net unrealized foreign currency gain (loss) $ (1,224 ) $ 1,158 $ (1,278 ) $ 665 Net realized foreign currency gain (loss) 613 (934 ) 1,228 (1,406 ) As the Company’s international operations grow, its risks associated with fluctuations in currency rates will become greater, and the Company will continue to reassess its approach to managing this risk. In addition, currency fluctuations or a weakening USD can increase the costs of the Company’s international expansion. To date, the Company has not entered into any foreign currency hedging contracts. Based on its current international structure, the Company does not plan on engaging in hedging activities in the near future. |
Use of Estimates | Use of Estimates The preparation of financial statements in accordance with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the condensed consolidated financial statements and accompanying notes. Significant accounting estimates and management judgments reflected in the condensed consolidated financial statements include items such as allowances for doubtful accounts; clinical accruals; stock-based compensation; depreciation and amortization periods; inventory valuation; and valuation of investments and deferred tax assets, including valuation allowances. Estimates are based on historical experience, where applicable, and other assumptions believed to be reasonable by the management. Actual results may differ from those estimates under different assumptions or conditions. |
Concentration of Credit Risk and Other Risks and Uncertainties | Concentration of Credit Risk and Other Risks and Uncertainties Financial instruments that potentially subject the Company to a concentration of credit risk consist of cash, cash equivalents and investments. The majority of the Company’s cash is held by one financial institution in the United States in excess of federally insured limits. The Company maintained investments in money market funds that were not federally insured during the periods ended June 30, 2016 and December 31, 2015. The Company also held cash in foreign banks of approximately $8.1 million at June 30, 2016 and $5.2 million at December 31, 2015 that was not federally insured. The Company has not experienced any losses on its deposits of cash and cash equivalents. Through December 31, 2014, all of the Company’s revenue had been derived from sales of its products in international markets, principally Australia and Europe. In May 2015, the Company launched sales in the United States upon receiving FDA approval to market and sell its products in the United States. In the international markets in which the Company participates, the Company uses both a direct sales force and distributors to sell its products, while in the United States the Company utilizes a direct sales force. The Company performs ongoing credit evaluations of its direct customers and distributors, does not require collateral, and maintains allowances for potential credit losses on customer accounts when deemed necessary. During the three and six months ended June 30, 2016 and 2015, no single customer accounted for more than 10% of the Company’s revenue. As of June 30, 2016 and December 31, 2015, no single customer accounted for 10% of the accounts receivable balance. The Company is subject to risks common to medical device companies, including, but not limited to, new technological innovations, dependence on key personnel, protection of proprietary technology, compliance with government regulations, product liability, manufacturing quality and scaling, continued reimbursement from third-party payors, There can be no assurance that the Company’s products or services will continue to be accepted in its existing marketplaces, nor can there be any assurance that any future products or services can be developed or manufactured at an acceptable cost and with appropriate performance characteristics, or that such products or services will be successfully marketed, if at all. The Company may choose to raise additional funds to further enhance its research and development efforts, for product expansion opportunities or to acquire a new business or products that are complementary to its business. There can be no assurance that such financing will be available or will be at terms acceptable by the Company. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments The carrying amounts of certain of the Company’s financial instruments, including cash equivalents, short-term investments, accounts receivable, accounts payable and accrued liabilities, approximate fair value due to their relatively short maturities. |
Cash and Cash Equivalents | Cash and Cash Equivalents The Company considers all highly-liquid investments purchased with an original maturity of three months or less at the date of purchase to be cash equivalents. Cash and cash equivalents include money market funds, commercial paper and corporate notes in the amount of $37.2 million and $36.6 million as of June 30, 2016 and December 31, 2015, respectively. At June 30, 2016 and December 31, 2015, the Company’s cash equivalents were held at institutions in the United States and include deposits in a money market fund which was unrestricted as to withdrawal or use. |
Restricted Cash | Restricted Cash Restricted cash as of June 30, 2016 and December 31, 2015 consists of a letter of credit of $0.6 million representing collateral for the Company’s Redwood City, California building lease pursuant to an agreement dated March 5, 2015 and certificates of deposit of $0.3 million collateralizing payment of charges related to the Company’s credit cards. |
Investment Securities | Investment Securities The Company classifies its investment securities as available-for-sale. Those investments with maturities of less than 12 months at the date of purchase are considered short-term investments. Those investments with maturities greater than 12 months at the date of purchase are considered long-term investments. The Company’s investment securities classified as available-for-sale are recorded at fair value based upon quoted market prices at period end. Unrealized gains and losses, deemed temporary in nature, are reported as a separate component of accumulated comprehensive income (loss). A decline in the fair value of any security below cost that is deemed other than temporary results in a charge to earnings and the corresponding establishment of a new cost basis for the security. Premiums (discounts) are amortized (accreted) over the life of the related security as an adjustment to yield using the straight-line interest method. Dividend and interest income are recognized when earned. Realized gains and losses are included in earnings and are derived using the specific identification method for determining the cost of securities sold. |
Inventories | Inventories Inventories are stated at the lower of cost to purchase or manufacture the inventory or the market value of such inventory. Cost is determined using the standard cost method which approximates the first-in, first-out basis. Market value is determined as the lower of replacement cost or net realizable value. The Company regularly reviews inventory quantities in consideration of actual loss experiences, projected future demand and remaining shelf life to record a provision for excess and obsolete inventory when appropriate. The Company writes down inventory that has become obsolete, inventory that has a cost basis in excess of its expected net realizable value, and inventory that is in excess of expected requirements. The estimate of excess quantities is subjective and primarily dependent on the Company’s estimates of future demand for a particular product. If the estimate of future demand is inaccurate based on actual sales, the Company may increase the write down for excess inventory for that component and record a charge to inventory impairment in the accompanying consolidated statements of operations and comprehensive loss. The Company periodically evaluates the carrying value of inventory on hand for potential excess amounts over demand using the same lower of cost or market approach at that has been used to value inventory. The Company also periodically evaluates inventory quantities in consideration of actual loss experience. In addition, the Company determines at times that there may be certain inventory that does not meet its product requirements. As a result of these evaluations, the Company recognized total write downs of $0.7 million and $1.3 million for its inventories for the three months ended June 30, 2016 and 2015, respectively, and $1.7 million and $1.3 million for the six months ended June 30, 2016 and 2015, respectively. The Company’s estimation of the future demand for a particular component of the Senza product may vary and may result in changes in estimates of inventory values in any particular period. |
Shipping and Handling Costs | Shipping and Handling Costs Shipping and handling costs are expensed as incurred and are included in cost of revenue. |
Revenue Recognition | Revenue Recognition The Company recognizes revenue when all of the following criteria are met: · persuasive evidence of an arrangement exists; · the sales price is fixed or determinable; · collection of the relevant receivable is reasonably assured at the time of sale; and · delivery has occurred or services have been rendered. For a majority of sales, where the Company’s sales representative delivers its product at the point of implantation at hospitals or medical facilities, the Company recognizes revenue upon completion of the procedure and authorization, which represents satisfaction of the required revenue recognition criteria. For the remaining sales, which are sent from the Company’s distribution centers directly to hospitals and medical facilities, as well as distributor sales, where product is ordered in advance of an implantation procedure and a valid purchase order has been received, the Company recognizes revenue at the time of shipment of the product, which represents the point in time when the customer has taken ownership and assumed the risk of loss and the required revenue recognition criteria are satisfied. The Company’s customers are obligated to pay within specified terms regardless of when or if they ever sell or use the products. The Company does not offer rights of return or price protection and it has no post-delivery obligations. The Company has a limited one to five year warranty to most customers in the markets in which it operates. Estimated warranty obligations are recorded at the time of sale, and warranty costs have not been material to date. |
Property and Equipment | Property and Equipment Property and equipment are stated at cost less accumulated depreciation and amortization. Depreciation of property and equipment, other than leasehold improvements, is computed using the straight-line method over the assets’ estimated useful lives of three to five years. Leasehold improvements are amortized on a straight-line basis over the shorter of the estimated useful life of the asset or the life of the lease. Upon retirement or sale, the cost and related accumulated depreciation are removed from the consolidated balance sheet and the resulting gain or loss, if any, is reflected in operations. Maintenance and repairs are charged to operations as incurred. |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets The Company reviews long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset might not be recoverable. When such an event occurs, management determines whether there has been impairment by comparing the anticipated undiscounted future net cash flows to the related asset group’s carrying value. If an asset is considered impaired, the asset is written down to fair value, which is based either on discounted cash flows or appraised value, depending on the nature of the asset. There were no impairment charges or changes in estimated useful lives recorded through June 30, 2016. |
Income Taxes | Income Taxes During the three and six months ended June 30, 2016 and 2015, the Company calculated its interim tax provision to record taxes incurred on a discrete basis due to the variability of taxable income in the jurisdictions in which it operates. Additionally, the Company records income taxes using the asset and liability method, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been recognized in the Company’s condensed consolidated financial statements or income tax returns. In estimating future tax consequences, expected future events other than enactments or changes in the tax law or rates are considered. Valuation allowances are provided when necessary to reduce deferred tax assets to the amount expected to be realized. The provision for income taxes for the three and six months ended June 30, 2016 and 2015 is primarily comprised of foreign taxes based upon income earned during the period with no tax benefit recorded for the loss jurisdictions. The Company operates in various tax jurisdictions and is subject to audit by various tax authorities. To date, taxes paid have been predominantly due to income taxes in foreign jurisdictions in which the Company conducts business. The Company provides for tax contingencies whenever it is deemed probable that a tax asset has been impaired or a tax liability has been incurred for events such as tax claims or changes in tax laws. Tax contingencies are based upon their technical merits, relative tax law and the specific facts and circumstances as of each reporting period. Changes in facts and circumstances could result in material changes to the amounts recorded for such tax contingencies. The Company records uncertain tax positions on the basis of a two-step process whereby (1) a determination is made as to whether it is more likely than not that the tax positions will be sustained based on the technical merits of the position and (2) for those tax positions that meet the more-likely-than-not recognition threshold, the Company recognizes the largest amount of tax benefit that is greater than 50% likely to be realized upon ultimate settlement with the related tax authority. The Company’s policy is to recognize interest and penalties related to income taxes as a component of income tax expense. No interest or penalties related to income taxes have been recognized in the statements of operations and comprehensive loss for the three and six months ended June 30, 2016 and 2015. |
Comprehensive Income (Loss) | Comprehensive Income (Loss) Comprehensive income (loss) represents all changes in the stockholders’ equity except those resulting from and distributions to stockholders. The Company’s changes in unrealized gains and losses on available-for-sale investment securities and foreign currency translation adjustments represent the components of other comprehensive income (loss) that are excluded from the reported net loss and have been presented in the consolidated statements of operations and comprehensive loss. |
Research and Development | Research and Development Research and development costs, including new product development, regulatory compliance and clinical research, are charged to operations as incurred in the consolidated statements of operations and comprehensive loss. Such costs include personnel-related costs, including stock-based compensation, supplies, services, depreciation, allocated facilities and information services, clinical trial and related clinical manufacturing expenses, fees paid to investigative sites and other indirect costs. |
Stock-Based Compensation | Stock-Based Compensation The Company accounts for stock-based compensation arrangements with employees in accordance with Accounting Standards Codification (ASC) 718, Compensation - Stock Compensation. The Company’s determination of the fair value of stock options on the date of grant utilizes the Black-Scholes option-pricing model and is impacted by its common stock price as well as changes in assumptions regarding a number of highly complex and subjective variables. These variables include, but are not limited to, expected term that options will remain outstanding, expected common stock price volatility over the term of the option awards, risk-free interest rates and expected dividends. The fair value is recognized over the period during which an optionee is required to provide services in exchange for the option award, known as the requisite service period (usually the vesting period) on a straight-line basis. Stock-based compensation expense recognized at fair value includes the impact of estimated forfeitures. The Company estimates future forfeitures at the date of grant and revises the estimates, if necessary, in subsequent periods if actual forfeitures differ from those estimates. Equity instruments issued to non-employees are recorded at their fair value on the measurement date and are subject to periodic adjustments as the underlying equity instruments vest. The fair value of options granted to consultants is expensed when vested. The non-employee stock-based compensation expense was not material for all periods presented. Estimating the fair value of equity-settled awards as of the grant date using valuation models, such as the Black-Scholes option pricing model, is affected by assumptions regarding a number of complex variables. Changes in the assumptions can materially affect the fair value and ultimately how much stock-based compensation expense is recognized. These inputs are subjective and generally require significant analysis and judgment to develop. For all stock options granted to date, the Company estimated the volatility data based on a study of publicly traded industry peer companies. For purposes of identifying these peer companies, the Company considered the industry, stage of development, size and financial leverage of potential comparable companies. The risk-free interest rate is based on the yield available on U.S. Treasury zero-coupon issues similar in duration to the expected term of the equity-settled award. The Company accounts for stock-based compensation for the restricted stock units at their fair value, based on the closing market price of the Company’s common stock on the grant date. These costs are recognized on a straight-line basis over the requisite service period, which is generally the vesting term of four years. The Company also issues stock options and restricted stock units with vesting based upon completion of performance goals. The fair value for these performance based awards is recognized over the period during which the goals are to be achieved. Stock-based compensation expense recognized at fair value includes the impact of estimated probability that the goals would be achieved, which is assessed prior to the requisite service period for the specific goals. The Company recognizes a benefit from stock-based compensation as additional paid-in capital if an incremental tax benefit is realized by following the with-and-without approach. |
Net Loss per Share of Common Stock | Net Loss per Share of Common Stock Basic net loss per common share is calculated by dividing the net loss by the weighted average number of common shares outstanding during the period, without consideration for potentially dilutive securities. Diluted net loss per share is computed by dividing the net loss by the weighted average number of common shares and potentially dilutive securities outstanding for the period. For purposes of the diluted net loss per share calculation, the Company’s restricted stock units and common stock options are considered to be potentially dilutive securities. Because the Company has reported a net loss in all periods presented, diluted net loss per common share is the same as basic net loss per common share for those periods. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In July 2015, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2015-11, Inventory (Topic 330): Simplifying the Measurement of Inventory In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) Revenue Recognition. Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date Revenue from Contracts with Customers (Topic 606) Identifying Performance Obligations and Licensing, In May 2016, the FASB issued ASU No. 2016-12, Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients , related to disclosures of remaining performance obligations, as well as other amendments to guidance on collectability, non-cash consideration and the presentation of sales and other similar taxes collected from customers. In August 2014, the FASB issued ASU No. 2014-15, Disclosure of Uncertainties About an Entity’s Ability to Continue as a Going Concern. In January 2016, the FASB issued ASU 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities, In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) In March 2016, the FASB issued ASU No. 2016-09, Compensation-Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting. In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments |
Summary of Significant Accoun15
Summary of Significant Accounting Policies (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Accounting Policies [Abstract] | |
Schedule of Revenue by Major Customers by Geographic Area | The following table sets forth, by geographic area, those countries with revenue accounting for more than 10% of the total revenue in any of the periods presented: Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 United States 73 % * 72 % * Australia 10 % 30 % * 29 % United Kingdom * 16 % * 19 % Germany * 19 % * 19 % * Represents less than 10% |
Net Unrealized and Net Realized Foreign Currency Transaction Gain (Loss) | The Company recorded net unrealized and net realized foreign currency transaction gain (loss) during the periods presented as follows (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 Net unrealized foreign currency gain (loss) $ (1,224 ) $ 1,158 $ (1,278 ) $ 665 Net realized foreign currency gain (loss) 613 (934 ) 1,228 (1,406 ) |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Fair Value Disclosures [Abstract] | |
Financial Instruments Measured at Fair Value on Recurring Basis | The following table sets forth the Company’s financial instruments that were measured at fair value on a recurring basis by level within the fair value hierarchy (in thousands): Balance as of June 30, 2016 Level 1 Level 2 Level 3 Total Assets: Money market funds (i) $ 12,424 $ — $ — $ 12,424 Commercial paper (ii) — 193,147 — 193,147 Corporate notes (ii) — 71,402 — 71,402 Total assets $ 12,424 $ 264,549 $ — $ 276,973 Balance as of December 31, 2015 Level 1 Level 2 Level 3 Total Assets: Money market funds (i) $ 36,559 $ — $ — $ 36,559 Commercial paper (ii) — 129,206 — 129,206 Treasury bonds (iii) 10,617 — — 10,617 Total assets $ 47,176 $ 129,206 $ — $ 176,382 (i) Included in cash and cash equivalents on the condensed consolidated balance sheets. (ii) Included in either cash and cash equivalents or short-term investments on the condensed consolidated balance sheets. (iii) Included in short-term investments on the condensed consolidated balance sheets. |
Balance Sheet Components (Table
Balance Sheet Components (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Summary of Gross Unrealized Gains and Unrealized Losses of Investment Securities Excluding Investments in Money Market Funds | The following is a summary of the gross unrealized gains and unrealized losses on the Company’s investment securities, excluding investments in money market funds (in thousands): June 30, 2016 Amortized Cost Gross Unrealized Holding Gains Gross Unrealized Holding Losses Aggregate Fair Value Investment Securities Commercial paper (i) $ 192,652 $ 495 $ — $ 193,147 Corporate notes (i) 71,433 3 (34 ) 71,402 Total securities $ 264,085 $ 498 $ (34 ) $ 264,549 (i) December 31, 2015 Amortized Cost Gross Unrealized Holding Gains Gross Unrealized Holding Losses Aggregate Fair Value Investment Securities Commercial paper (i) $ 129,075 $ 131 $ — $ 129,206 Treasury bonds 10,616 1 — 10,617 Total securities $ 139,691 $ 132 $ — $ 139,823 (i) Included $33.2 million of commercial paper that is classified as cash and cash equivalents on the consolidated balance sheet. |
Components of Inventories | Inventories (in thousands) June 30, 2016 December 31, 2015 Raw materials $ 34,411 $ 37,096 Finished goods 33,711 25,334 $ 68,122 $ 62,430 |
Schedule of Property and Equipment, Net and Depreciation and Amortization Expense | Property and Equipment, Net (in thousands) June 30, 2016 December 31, 2015 Laboratory equipment $ 1,537 $ 921 Computer equipment and software 2,301 1,836 Furniture and fixtures 2,005 1,752 Leasehold improvements 1,213 1,188 Construction in process 1,104 799 Total 8,160 6,496 Less: Accumulated depreciation and amortization (1,472 ) (702 ) Property and equipment, net $ 6,688 $ 5,794 The Company recognized depreciation and amortization expense on property and equipment as follows (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 Depreciation and amortization expense $ 389 $ 84 $ 769 $ 130 |
Summary of Accrued Liabilities | Accrued Liabilities (in thousands) June 30, 2016 December 31, 2015 Accrued payroll and related expenses $ 11,028 $ 9,857 Accrued professional fees 942 583 Accrued taxes 2,069 2,044 Accrued clinical and research expenses 954 405 Accrued interest 143 — Accrued other 2,124 1,492 Total accrued liabilities $ 17,260 $ 14,381 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Commitments And Contingencies Disclosure [Abstract] | |
Summary of Recognized Rent Expense | The Company recognized rent expense during the periods indicated as follows (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 Rent expense $ 607 $ 201 $ 1,207 $ 409 |
Summary of Royalty Expense | The Company recognized royalty expense during the periods indicated as follows (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 Royalty expense $ 551 $ 113 $ 965 $ 210 |
Long-term Debt (Tables)
Long-term Debt (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Interest Expense Recognized Related to Convertible Notes | The following table sets forth the interest expense recognized related to the 2021 Notes (in thousands): Three Months Ended June 30, 2016 Contractual interest expense $ 143 Amortization of debt discount 272 Amortization of debt issuance costs 36 Total interest expense related to the 2021 Notes $ 451 |
Debt, Liability Component [Member] | |
Net Carrying Amount of Convertible Debt | The net carrying amount of the liability component of the 2021 Notes was as follows (in thousands): June 30, 2016 Principal $ 172,500 Unamortized discount (32,674 ) Unamortized issuance cost (5,040 ) Net carrying amount $ 134,786 |
Debt, Equity Component [Member] | |
Net Carrying Amount of Convertible Debt | The net carrying amount of the equity component of the 2021 Notes was as follows (in thousands): June 30, 2016 Debt discount related to value of conversion option $ 32,945 Debt issuance cost (1,198 ) Net carrying amount $ 31,747 |
Net Loss Per Share (Tables)
Net Loss Per Share (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Earnings Per Share [Abstract] | |
Computation of Basic and Diluted Net Loss per Share | The following table summarizes the computation of basic and diluted net loss per share (in thousands, except share and per share data): Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 Net loss, basic and diluted $ (8,779 ) $ (19,726 ) $ (18,067 ) $ (33,786 ) Weighted average shares outstanding 28,389,970 25,587,716 28,298,415 25,234,020 Less: weighted average shares subject to repurchase (8,717 ) (23,467 ) (10,560 ) (25,310 ) Weighted average shares used to compute basic and diluted net loss per share 28,381,253 25,564,249 28,287,855 25,208,710 Net loss per share, basic and diluted $ (0.31 ) $ (0.77 ) $ (0.64 ) $ (1.34 ) |
Computation of Potentially Dilutive Securities Outstanding Excluded from Computation of Diluted Shares | The following potentially dilutive securities outstanding at the end of the periods presented have been excluded from the computation of diluted shares outstanding, as the effect would be anti-dilutive: June 30 2016 2015 Unreleased restricted stock 244,691 — Options to purchase common stock 3,065,110 2,968,932 Total 3,309,801 2,968,932 |
Formation and Business of the21
Formation and Business of the Company - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2015 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |||||
Net loss | $ (8,779) | $ (19,726) | $ (18,067) | $ (33,786) | $ (67,400) |
Cash used in operations | (40,930) | $ (40,613) | (100,400) | ||
Accumulated deficit | $ (207,475) | $ (207,475) | $ (189,408) |
Summary of Significant Accoun22
Summary of Significant Accounting Policies - Additional Information (Detail) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2016USD ($)Customer | Jun. 30, 2015USD ($)Customer | Jun. 30, 2016USD ($)BusinessCustomer | Jun. 30, 2015USD ($)Customer | Dec. 31, 2015USD ($)Customer | |
Summary Of Significant Accounting Policies [Line Items] | |||||
Number of business activities | Business | 1 | ||||
Cash held in foreign banks | $ 8,100,000 | $ 8,100,000 | $ 5,200,000 | ||
Money market funds, commercial paper and corporate notes | 37,200,000 | 37,200,000 | 36,600,000 | ||
Restricted cash | 906,000 | 906,000 | 906,000 | ||
Write down of inventory | 700,000 | $ 1,300,000 | $ 1,697,000 | $ 1,306,000 | |
Standard product warranty, Description | Limited one- to five-year warranty | ||||
Impairment charges | $ 0 | ||||
Provision for income taxes | 258,000 | 155,000 | 592,000 | 297,000 | |
Interest or penalties recognized | 0 | 0 | $ 0 | 0 | |
RSU's [Member] | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Vesting term | 4 years | ||||
Foreign Tax Authority [Member] | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Provision for income taxes | 0 | $ 0 | $ 0 | $ 0 | |
Letter of Credit [Member] | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Restricted cash | 600,000 | 600,000 | 600,000 | ||
Certificate of Deposit [Member] | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Restricted cash | $ 300,000 | $ 300,000 | $ 300,000 | ||
Minimum [Member] | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Estimated useful life of property and equipment | 3 years | ||||
Maximum [Member] | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Estimated useful life of property and equipment | 5 years | ||||
Customer Concentration Risk [Member] | Revenue [Member] | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Number of customers accounted more than 10% concentration risk | Customer | 0 | 0 | |||
Customer Concentration Risk [Member] | Minimum Threshold For Disclosure [Member] | Revenue [Member] | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Concentration risk, percentage | 10.00% | 10.00% | 10.00% | 10.00% | |
Number of customers accounted more than 10% concentration risk | Customer | 0 | 0 | |||
Credit Concentration Risk [Member] | Accounts Receivable [Member] | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Number of customers accounted more than 10% concentration risk | Customer | 0 | 0 | |||
Credit Concentration Risk [Member] | Minimum Threshold For Disclosure [Member] | Accounts Receivable [Member] | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Concentration risk, percentage | 10.00% | 10.00% |
Summary of Significant Accoun23
Summary of Significant Accounting Policies - Schedule of Revenue by Major Customers by Geographic Area (Detail) - Revenue [Member] - Geographic Concentration Risk [Member] | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
United States [Member] | ||||
Concentration Risk [Line Items] | ||||
Revenue | 73.00% | 72.00% | ||
Australia [Member] | ||||
Concentration Risk [Line Items] | ||||
Revenue | 10.00% | 30.00% | 29.00% | |
United Kingdom [Member] | ||||
Concentration Risk [Line Items] | ||||
Revenue | 16.00% | 19.00% | ||
Germany [Member] | ||||
Concentration Risk [Line Items] | ||||
Revenue | 19.00% | 19.00% |
Summary of Significant Accoun24
Summary of Significant Accounting Policies - Schedule of Revenue by Major Customers by Geographic Area (Parenthetical) (Detail) - Revenue [Member] - Geographic Concentration Risk [Member] | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
United States [Member] | ||||
Concentration Risk [Line Items] | ||||
Revenue | 73.00% | 72.00% | ||
United States [Member] | Maximum [Member] | ||||
Concentration Risk [Line Items] | ||||
Revenue | 10.00% | 10.00% | ||
Australia [Member] | ||||
Concentration Risk [Line Items] | ||||
Revenue | 10.00% | 30.00% | 29.00% | |
Australia [Member] | Maximum [Member] | ||||
Concentration Risk [Line Items] | ||||
Revenue | 10.00% | |||
United Kingdom [Member] | ||||
Concentration Risk [Line Items] | ||||
Revenue | 16.00% | 19.00% | ||
United Kingdom [Member] | Maximum [Member] | ||||
Concentration Risk [Line Items] | ||||
Revenue | 10.00% | 10.00% | ||
Germany [Member] | ||||
Concentration Risk [Line Items] | ||||
Revenue | 19.00% | 19.00% | ||
Germany [Member] | Maximum [Member] | ||||
Concentration Risk [Line Items] | ||||
Revenue | 10.00% | 10.00% |
Summary of Significant Accoun25
Summary of Significant Accounting Policies - Net Unrealized and Net Realized Foreign Currency Transaction Gain (Loss) (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Accounting Policies [Abstract] | ||||
Net unrealized foreign currency gain (loss) | $ (1,224) | $ 1,158 | $ (1,278) | $ 665 |
Net realized foreign currency gain (loss) | $ 613 | $ (934) | $ 1,228 | $ (1,406) |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Detail) | 6 Months Ended |
Jun. 30, 2016$ / shares | |
Fair Value, Measurements, Recurring [Member] | Level 1 [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Net asset value of market funds | $ 1 |
Fair Value Measurements - Finan
Fair Value Measurements - Financial Instruments Measured at Fair Value on Recurring Basis (Detail) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | $ 276,973 | $ 176,382 |
Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 12,424 | 47,176 |
Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 264,549 | 129,206 |
Money Market Funds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 12,424 | 36,559 |
Money Market Funds [Member] | Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 12,424 | 36,559 |
Commercial Paper [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 193,147 | 129,206 |
Commercial Paper [Member] | Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 193,147 | 129,206 |
Corporate Notes [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 71,402 | |
Corporate Notes [Member] | Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | $ 71,402 | |
Treasury Bonds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 10,617 | |
Treasury Bonds [Member] | Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | $ 10,617 |
Balance Sheet Components - Summ
Balance Sheet Components - Summary of Gross Unrealized Gains and Unrealized Losses of Investment Securities Excluding Investments in Money Market Funds (Detail) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | $ 264,085 | $ 139,691 |
Gross Unrealized Holding Gains | 498 | 132 |
Gross Unrealized Holding Losses | (34) | |
Aggregate Fair Value | 264,549 | 139,823 |
Commercial Paper [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 192,652 | 129,075 |
Gross Unrealized Holding Gains | 495 | 131 |
Aggregate Fair Value | 193,147 | 129,206 |
Corporate Notes [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 71,433 | |
Gross Unrealized Holding Gains | 3 | |
Gross Unrealized Holding Losses | (34) | |
Aggregate Fair Value | $ 71,402 | |
Treasury Bonds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 10,616 | |
Gross Unrealized Holding Gains | 1 | |
Aggregate Fair Value | $ 10,617 |
Balance Sheet Components - Su29
Balance Sheet Components - Summary of Gross Unrealized Gains and Unrealized Losses of Investment Securities Excluding Investments in Money Market Funds (Parenthetical) (Detail) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 | Jun. 30, 2015 | Dec. 31, 2014 |
Schedule of Available-for-sale Securities [Line Items] | ||||
Cash and cash equivalents | $ 50,696 | $ 87,036 | $ 58,711 | $ 25,287 |
Commercial Paper [Member] | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Cash and cash equivalents | 18,000 | $ 33,200 | ||
Corporate Notes [Member] | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Cash and cash equivalents | $ 6,700 |
Balance Sheet Components - Addi
Balance Sheet Components - Additional Information (Detail) - USD ($) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2016 | Dec. 31, 2015 | |
Balance Sheet Components [Abstract] | ||
Realized gains or losses on investments | $ 0 | $ 0 |
Balance Sheet Components - Comp
Balance Sheet Components - Components of Inventories (Detail) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 34,411 | $ 37,096 |
Finished goods | 33,711 | 25,334 |
Total inventories | $ 68,122 | $ 62,430 |
Balance Sheet Components - Sche
Balance Sheet Components - Schedule of Property and Equipment, Net (Detail) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 8,160 | $ 6,496 |
Less: Accumulated depreciation and amortization | (1,472) | (702) |
Property and equipment, net | 6,688 | 5,794 |
Laboratory Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 1,537 | 921 |
Computer Equipment and Software [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 2,301 | 1,836 |
Furniture and Fixtures [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 2,005 | 1,752 |
Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 1,213 | 1,188 |
Construction in Process [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 1,104 | $ 799 |
Balance Sheet Components - Sc33
Balance Sheet Components - Schedule of Property and Equipment, Depreciation and Amortization Expense (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Property Plant And Equipment [Abstract] | ||||
Depreciation and amortization expense | $ 389 | $ 84 | $ 769 | $ 130 |
Balance Sheet Components - Su34
Balance Sheet Components - Summary of Accrued Liabilities (Detail) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Payables And Accruals [Abstract] | ||
Accrued payroll and related expenses | $ 11,028 | $ 9,857 |
Accrued professional fees | 942 | 583 |
Accrued taxes | 2,069 | 2,044 |
Accrued clinical and research expenses | 954 | 405 |
Accrued interest | 143 | |
Accrued other | 2,124 | 1,492 |
Total accrued liabilities | $ 17,260 | $ 14,381 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) | 1 Months Ended | 3 Months Ended | 6 Months Ended | |||
Feb. 28, 2017USD ($) | Jun. 30, 2016USD ($) | Jun. 30, 2015USD ($) | Jun. 30, 2016USD ($) | Jun. 30, 2015USD ($) | Mar. 31, 2015USD ($)ft² | |
Other Commitments [Line Items] | ||||||
Retainer fees | $ 8,169,000 | $ 5,263,000 | $ 14,530,000 | $ 10,261,000 | ||
Licensing Agreements [Member] | ||||||
Other Commitments [Line Items] | ||||||
Annual royalty payment | 551,000 | $ 113,000 | $ 965,000 | $ 210,000 | ||
Mayo And VGL [Member] | Licensing Agreements [Member] | ||||||
Other Commitments [Line Items] | ||||||
License agreement, terms | The agreement will terminate upon the last to expire patent application, unless terminated earlier. The agreement can be terminated any time after three years from March 2006 by Mayo or VGL. | |||||
Mayo Foundation [Member] | Licensing Agreements [Member] | ||||||
Other Commitments [Line Items] | ||||||
Retainer fees | $ 40,000 | |||||
Mayo Foundation [Member] | Licensing Agreements [Member] | Minimum [Member] | ||||||
Other Commitments [Line Items] | ||||||
Annual royalty payment | 200,000 | |||||
Indemnification Agreement [Member] | ||||||
Other Commitments [Line Items] | ||||||
Contingent liabilities | $ 0 | $ 0 | ||||
Menlo Park Agreement, Original [Member] | ||||||
Other Commitments [Line Items] | ||||||
Lease agreement, effective date | May 1, 2010 | |||||
Lease agreement, expiration date | May 31, 2015 | |||||
Menlo Park Agreement, Extended [Member] | ||||||
Other Commitments [Line Items] | ||||||
Lease agreement, expiration date | Sep. 30, 2015 | |||||
Lease agreement, commencement period | 2015-03 | |||||
Facility Lease Agreement, Original [Member] | ||||||
Other Commitments [Line Items] | ||||||
Lease agreement, effective date | Aug. 21, 2014 | |||||
Lease agreement, expiration date | May 31, 2015 | |||||
Lease agreement, commencement period | 2014-08 | |||||
Facility Lease Agreement, Extended [Member] | ||||||
Other Commitments [Line Items] | ||||||
Lease agreement, commencement period | 2015-03 | |||||
Lease agreement, expiration period | 2017-02 | |||||
Facility Lease Agreement, Extended [Member] | Scenario Forecast [Member] | ||||||
Other Commitments [Line Items] | ||||||
Lease agreement, lease expense | $ 300,000 | |||||
Redwood Office Agreement [Member] | ||||||
Other Commitments [Line Items] | ||||||
Lease agreement, effective date | Jun. 30, 2015 | |||||
Lease agreement, commencement period | 2015-03 | |||||
Lease agreement, expiration period | 2022-05 | |||||
Area of office space | ft² | 50,000 | |||||
Lease expense, payment due | $ 2,000,000 | |||||
Annual lease expense payable in May 2022 | $ 2,400,000 |
Commitments and Contingencies36
Commitments and Contingencies - Summary of Recognized Rent Expense (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Commitments And Contingencies Disclosure [Abstract] | ||||
Rent expense | $ 607 | $ 201 | $ 1,207 | $ 409 |
Commitments and Contingencies37
Commitments and Contingencies - Summary of Royalty Expense (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Licensing Agreements [Member] | ||||
Other Commitments [Line Items] | ||||
Royalty expense | $ 551 | $ 113 | $ 965 | $ 210 |
Long-term Debt - Additional Inf
Long-term Debt - Additional Information (Detail) | Dec. 12, 2014USD ($) | Oct. 24, 2014USD ($)Term_loan | Jun. 30, 2016USD ($)d$ / sharesshares | Jun. 30, 2016USD ($)Quarterly_Payments$ / sharesshares |
Debt Instrument [Line Items] | ||||
Proceeds from issuance of warrants | $ 33,120,000 | |||
Repayment of outstanding principal and fees | $ 19,500,000 | |||
Credit Facility [Member] | ||||
Debt Instrument [Line Items] | ||||
Number of term loan agreements | Term_loan | 3 | |||
Credit facility frequency of payments | Under the credit facility, each term loan is to be paid over 24 quarterly payment periods, with the first payment due on the last day of the calendar quarter during the period for which the term loan is made. | |||
Credit facility, number of quarterly payment | Quarterly_Payments | 24 | |||
Credit facility, number of quarterly interest payment | Quarterly_Payments | 12 | |||
Credit facility, number of quarterly equal installments payment | Quarterly_Payments | 12 | |||
Credit facility closing fee percentage | 5.00% | 5.00% | ||
1.75% Convertible Senior Notes due 2021 [Member] | ||||
Debt Instrument [Line Items] | ||||
Aggregate principal amount of convertible senior notes | $ 150,000,000 | $ 150,000,000 | ||
Debt instrument interest rate | 1.75% | 1.75% | ||
Debt instrument due year | 2,021 | |||
Additional aggregate principal amount of convertible senior notes | $ 22,500,000 | $ 22,500,000 | ||
Debt instrument frequency of payment | semi-annually in arrears on June 1 and December 1 of each year, commencing on December 1, 2016 | |||
Net proceeds from the debt offering after deducting transaction costs | 166,200,000 | |||
Convertible notes principal amount | $ 1,000 | |||
Convertible notes, shares issued | shares | 10.3770 | |||
Convertible notes, type of equity security issued | common stock | |||
Convertible notes, conversion price | $ / shares | $ 96.37 | $ 96.37 | ||
Debt instrument convertible, percentage of conversion price | 130.00% | |||
Percentage of repurchase price, which is equal to principal amount of convertible notes | 100.00% | |||
Debt instrument combination settlement | $ 1,000 | $ 1,000 | ||
Debt conversion, converted instrument amount | $ 32,900,000 | $ 32,900,000 | ||
Debt instrument, effective interest rate | 6.29% | 6.29% | ||
Debt issuance costs attributable to the liability and equity component, total amount | $ 6,300,000 | $ 6,300,000 | ||
Debt issuance costs attributable to the liability component | 5,040,000 | 5,040,000 | ||
Fair value of notes | $ 181,800,000 | $ 181,800,000 | ||
Number of shares purchased under convertible note hedge transactions | shares | 1,800,000 | 1,800,000 | ||
Purchase price of the shares issued under convertible note hedge transactions | $ / shares | $ 96.37 | $ 96.37 | ||
Total cost of the convertible note hedge transactions | $ 45,100,000 | |||
Proceeds from issuance of warrants | 33,100,000 | |||
Net cost of reduction to additional paid-in capital | $ 12,000,000 | |||
1.75% Convertible Senior Notes due 2021 [Member] | Warrant | ||||
Debt Instrument [Line Items] | ||||
Number of shares issued for warrants under convertible note hedge transactions | shares | 1,800,000 | 1,800,000 | ||
Purchase price of the shares issued under convertible note hedge transactions | $ / shares | $ 127.28 | $ 127.28 | ||
1.75% Convertible Senior Notes due 2021 [Member] | 130% for Applicable Conversion Price [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt instrument convertible trading days | d | 20 | |||
Debt instrument convertible consecutive trading days | 30 days | |||
1.75% Convertible Senior Notes due 2021 [Member] | 98% Applicable Conversion Price [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt instrument convertible trading days | d | 5 | |||
Debt instrument convertible consecutive trading days | 10 days | |||
1.75% Convertible Senior Notes due 2021 [Member] | Maximum [Member] | ||||
Debt Instrument [Line Items] | ||||
Percentage of closing sale price of common stock | 98.00% | |||
1.75% Convertible Senior Notes due 2021 [Member] | Maximum [Member] | Warrant | ||||
Debt Instrument [Line Items] | ||||
Overall conversion price | $ / shares | $ 127.28 | 127.28 | ||
1.75% Convertible Senior Notes due 2021 [Member] | Minimum [Member] | Warrant | ||||
Debt Instrument [Line Items] | ||||
Overall conversion price | $ / shares | $ 96.37 | $ 96.37 | ||
Capital Royalty Term Loan [Member] | Credit Facility [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt instrument interest rate | 11.50% | |||
Credit facility borrowing capacity | $ 50,000,000 | |||
Credit facility expiration date | Sep. 30, 2015 | |||
Credit facility frequency of interest payments | The first twelve quarterly payments will be interest only payments, and the last twelve quarterly payments will be equal installments in which interest and principal amounts are paid. | |||
Credit facility, percentage of interest paid in cash | 8.00% | |||
Credit facility, percentage of interest payable in-kind | 3.50% | |||
Repayment of outstanding principal and fees | $ 21,000,000 | |||
First Term Loan [Member] | Credit Facility [Member] | ||||
Debt Instrument [Line Items] | ||||
Borrowings under term loan | $ 20,000,000 | |||
Credit facility net of closing fees | $ 500,000 | |||
Second Term Loan [Member] | Credit Facility [Member] | ||||
Debt Instrument [Line Items] | ||||
Credit facility, remaining borrowing capacity | 10,000,000 | $ 10,000,000 | ||
Third Term Loan [Member] | Credit Facility [Member] | ||||
Debt Instrument [Line Items] | ||||
Credit facility, remaining borrowing capacity | $ 20,000,000 | $ 20,000,000 |
Long-term Debt - Net Carrying A
Long-term Debt - Net Carrying Amount of Liability Component of Convertible Debt (Detail) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Debt Instrument [Line Items] | ||
Net carrying amount | $ 134,786 | $ 19,740 |
1.75% Convertible Senior Notes due 2021 [Member] | ||
Debt Instrument [Line Items] | ||
Unamortized issuance cost | (5,040) | |
1.75% Convertible Senior Notes due 2021 [Member] | Debt, Liability Component [Member] | ||
Debt Instrument [Line Items] | ||
Principal | 172,500 | |
Unamortized discount | (32,674) | |
Unamortized issuance cost | (5,040) | |
Net carrying amount | $ 134,786 |
Long-term Debt - Net Carrying40
Long-term Debt - Net Carrying Amount of Equity Component of Convertible Debt (Detail) - 1.75% Convertible Senior Notes due 2021 [Member] $ in Thousands | Jun. 30, 2016USD ($) |
Debt Instrument [Line Items] | |
Net carrying amount | $ 32,900 |
Debt, Equity Component [Member] | |
Debt Instrument [Line Items] | |
Debt discount related to value of conversion option | 32,945 |
Debt issuance cost | (1,198) |
Net carrying amount | $ 31,747 |
Long-term Debt - Interest Expen
Long-term Debt - Interest Expense Recognized Related to Convertible Notes (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2016 | Jun. 30, 2015 | |
Debt Instrument [Line Items] | |||
Amortization of debt issuance costs | $ 411 | $ 118 | |
1.75% Convertible Senior Notes due 2021 [Member] | |||
Debt Instrument [Line Items] | |||
Contractual interest expense | $ 143 | ||
Amortization of debt discount | 272 | ||
Amortization of debt issuance costs | 36 | ||
Total interest expense related to the 2021 Notes | $ 451 |
Net Loss Per Share - Computatio
Net Loss Per Share - Computation of Basic and Diluted Net Loss per Share (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2015 | |
Earnings Per Share [Abstract] | |||||
Net loss, basic and diluted | $ (8,779) | $ (19,726) | $ (18,067) | $ (33,786) | $ (67,400) |
Weighted average shares outstanding | 28,389,970 | 25,587,716 | 28,298,415 | 25,234,020 | |
Less: weighted average shares subject to repurchase | (8,717) | (23,467) | (10,560) | (25,310) | |
Weighted average shares used to compute basic and diluted net loss per share | 28,381,253 | 25,564,249 | 28,287,855 | 25,208,710 | |
Net loss per share, basic and diluted | $ (0.31) | $ (0.77) | $ (0.64) | $ (1.34) |
Net Loss Per Share - Additional
Net Loss Per Share - Additional Information (Detail) | Jun. 30, 2016$ / shares |
1.75% Convertible Senior Notes due 2021 [Member] | |
Earnings Per Share Diluted [Line Items] | |
Convertible notes, conversion price | $ 96.37 |
Net Loss Per Share - Computat44
Net Loss Per Share - Computation of Potentially Dilutive Securities Outstanding Excluded from Computation of Diluted Shares (Detail) - shares | 6 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Potentially dilutive securities excluded from computation of diluted shares outstanding | 3,309,801 | 2,968,932 |
Unreleased Restricted Stock [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Potentially dilutive securities excluded from computation of diluted shares outstanding | 244,691 | |
Options to Purchase Common Stock [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Potentially dilutive securities excluded from computation of diluted shares outstanding | 3,065,110 | 2,968,932 |
Employee Benefit Plans - Additi
Employee Benefit Plans - Additional Information (Detail) - shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
ESPP offering period | 6 months | |||
Employee Stock [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Maximum employee subscription rate | 15.00% | 15.00% | ||
Purchase price of common stock shares, lower of fair market value, percentage | 85.00% | |||
Shares of common stock issued | 42,613 | 0 | 42,613 | 0 |
Shares available for future purchase | 650,984 | 650,984 |