Soleno Therapeutics (SLNO) 10-Q 12 May 16 2016 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2016	May. 01, 2016
Document And Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Mar. 31, 2016
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	Q1
Trading Symbol	CAPN
Entity Registrant Name	Capnia, Inc.
Entity Central Index Key	1,484,565
Current Fiscal Year End Date	--12-31
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		15,461,531

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Current assets
Cash and cash equivalents	$ 6,492	$ 5,495
Accounts receivable	187	156
Restricted cash	35	35
Inventory	653	551
Prepaid expenses and other current assets	216	167
Total current assets	7,583	6,404
Long-term assets
Property and equipment, net	121	86
Goodwill	718	718
Other intangible assets, net	892	917
Other assets	76	76
Total assets	9,390	8,201
Current liabilities
Accounts payable	1,262	695
Accrued compensation and other current liabilities	1,317	1,634
Total current liabilities	2,579	3,194
Long-term liabilities
Other long-term liabilities	200	109
Commitments and contingencies (Note 6)	0	0
Stockholders’ equity
Common stock, $0.001 par value, 100,000,000 shares authorized, 15,403,111 and 14,017,909 shares issued and outstanding at March 31, 2016 and December 31, 2015, respectively.	15	14
Additional paid-in-capital	95,255	89,456
Accumulated deficit	(89,436)	(86,247)
Total stockholders’ equity	5,834	3,223
Total liabilities and stockholders’ equity	9,390	8,201
Series A Warrant Liability [Member]
Long-term liabilities
Warrant liability	558	1,213
Series B Warrant Liability [Member]
Current liabilities
Series B warrant liability	0	865
Series C Warrant Liability [Member]
Long-term liabilities
Warrant liability	219	462
Series A Convertible Preferred Stock [Member]
Stockholders’ equity
Series A convertible preferred stock, $0.001 par value, 40,000 shares authorized, 8,335 and 4,555 issued and outstanding at March 31, 2016 and December 31, 2015, respectively.	$ 0	$ 0

Condensed Consolidated Balance3

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($)	Mar. 31, 2016	Dec. 31, 2015
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, shares authorized	100,000,000	100,000,000
Common stock, shares issued	15,403,111	14,017,909
Common stock, shares outstanding	15,403,111	14,017,909
Series A Convertible Preferred Stock [Member]
Convertible preferred stock, par value (in dollars per share)	$ 0.001	$ 0.001
Convertible preferred stock, shares authorized	40,000	40,000
Convertible preferred stock, shares issued	8,335	4,555
Convertible preferred stock, shares outstanding	8,335	4,555

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Income Statement [Abstract]
Product revenue	$ 447	$ 22
Cost of product revenue	461	18
Gross profit (loss)	(14)	4
Expenses
Research and development	1,772	878
Sales and marketing	538	260
General and administrative	1,939	1,292
Total expenses	4,249	2,430
Operating loss	(4,263)	(2,426)
Interest and other income (expense)
Interest expense, net	0	(1)
Change in fair value of warrants liabilities (expense)	1,170	(6,174)
Cease-use expense	(94)	0
Other expense	(2)	0
Inducement charge for Series C warrants	0	(3,050)
Interest and other income (expense), net	1,074	(9,225)
Net loss	$ (3,189)	$ (11,651)
Basic and diluted net loss per common share (in dollars per share)	$ (0.22)	$ (1.67)
Weighted-average common shares outstanding used to calculate basic and diluted net loss per common share (in shares)	14,796,119	6,965,483

Condensed Consolidated Stateme5

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Cash flows from operating activities:
Net loss	$ (3,189)	$ (11,651)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	20	15
Stock-based compensation expense	136	401
Change in fair value of common stock warrants	(1,170)	6,174
Inducement charge for Series C warrants	0	3,050
Change in fair value of contingent consideration	19	0
Change in operating assets and liabilities:
Accounts receivable	(31)	(8)
Inventory	(102)	(97)
Prepaid expenses and other assets	(49)	(7)
Accounts payable	627	199
Accrued compensation and other current liabilities	(317)	115
Other long-term liabilities	72	0
Net cash used in operating activities	(3,984)	(1,809)
Cash flows from investing activities:
Purchase of property and equipment	(19)	(1)
Net cash used in investing activities	(19)	(1)
Cash flows from financing activities:
Proceeds from sale of Series A preferred convertible stock	5,071	0
Initial public offering costs paid	0	(530)
Proceeds from exercise of common stock options	0	12
Repayment of credit line	0	(102)
Net cash provided by financing activities	5,000	3,382
Net increase in cash and cash equivalents	997	1,572
Cash and cash equivalents, beginning of period	5,495	7,957
Cash and cash equivalents, end of period	6,492	9,529
Supplemental disclosures of noncash investing and financing information
Conversion of Series A preferred to common stock	1,665	0
Reduction in initial public offering costs payable	0	45
Fixed asset costs included in accounts payable	11	0
Series B Warrant transaction costs accrued and included in accrued compensation and other current liabilities	0	131
Series A Convertible Preferred Stock [Member]
Cash flows from financing activities:
Initial public offering costs paid	(71)	0
Series A Warrant Liability [Member]
Cash flows from financing activities:
Gross proceeds upon exercise of warrants	0	156
Series A Warrant Liability [Member] | Cash Exercise [Member]
Supplemental disclosures of noncash investing and financing information
De-recognition warrant liability	0	42
Private Placement Series B Warrants [Member]
Cash flows from financing activities:
Gross proceeds upon exercise of warrants	0	3,832
Tender Offer Series B Warrants [Member]
Cash flows from financing activities:
Gross proceeds upon exercise of warrants	0	189
Series B Warrant Liability [Member]
Cash flows from financing activities:
Series B warrant transaction costs paid	0	(175)
Series B Warrant Liability [Member] | Cash Exercise [Member]
Supplemental disclosures of noncash investing and financing information
De-recognition warrant liability	0	6,748
Series B Warrant Liability [Member] | Cash Less Exercise [Member]
Supplemental disclosures of noncash investing and financing information
De-recognition warrant liability	$ 593	$ 417

Description of Business

Description of Business	3 Months Ended
	Mar. 31, 2016
Accounting Policies [Abstract]
Description of Business	Description of Business Capnia, Inc. (the “Company”) was incorporated in the State of Delaware on August 25, 1999 , and is located in Redwood City, California. The Company develops and commercializes neonatology devices and diagnostics. The Company also has a therapeutics platform based on its proprietary technology for precision metering of gas flow. On September 8, 2015, the Company established NeoForce, Inc. ("NeoForce"), a wholly owned subsidiary of the Company and acquired substantially all of the assets of an unrelated privately held company NeoForce Group, Inc.("NFG"). NeoForce develops innovative pulmonary resuscitation solutions for the inpatient and ambulatory neonatal markets. On April 27, 2015, the Company established Capnia UK Limited, a wholly owned foreign subsidiary in the United Kingdom. Capnia UK Limited began sales and marketing operations in the first quarter of 2016. The Company’s first diagnostic product, CoSense ® , aids in diagnosis of excessive hemolysis, a condition in which red blood cells degrade rapidly. When present in neonates with jaundice, hemolysis is a dangerous condition which can lead to adverse neurological outcomes. CoSense has 510(k) clearance for sale in the U.S. with a specific Indication for Use related to hemolysis issued, and has received CE Mark certification for sale in the European Union (“E.U.”). CoSense is commercially available in the U.S. In addition, the Company is applying its research and development efforts to additional diagnostic products based on its Sensalyze Technology Platform, a portfolio of proprietary methods and devices which enables CoSense and can be applied to detect a variety of analytes in exhaled breath and other products for the neonatology market. The Company has also obtained CE Mark certification in the E.U. for Serenz, a therapeutic product candidate for the treatment of symptoms related to allergic rhinitis (“AR”) (see Note 10).

Liquidity, Financial Condition

Liquidity, Financial Condition and Management's Plans	3 Months Ended
	Mar. 31, 2016
Accounting Policies [Abstract]
Liquidity, Financial Condition and Management's Plans	Liquidity, Financial Condition and Management’s Plans The Company had a net loss of $3.2 million for the three months ended March 31, 2016 and has an accumulated deficit of approximately $89.4 million at March 31, 2016 from having incurred losses since its inception. The Company has approximately $5.0 million of working capital at March 31, 2016 and used $ 4.0 million of cash in its operating activities during the three months ended March 31, 2016. The Company has financed its operations principally through issuances of debt and equity securities. On July 24, 2015, the Company entered into a Common Stock Purchase Agreement (the "Aspire Purchase Agreement") with Aspire Capital, LLC ("Aspire") which provides that, upon the terms and subject to the conditions and limitations set forth therein, Aspire is committed to purchase up to an aggregate of $10.0 million in value of shares of the Company’s Common Stock over the 24 -month term of the Aspire Purchase Agreement. As of April 4, 2016, the restrictions on the use of the Aspire Purchase Agreement imposed by the Sabby Purchase Agreement expired. On October 12, 2015, the Company entered into a Securities Purchase Agreement (the “Sabby Purchase Agreement”) with funds managed by Sabby Management, LLC ("Sabby"), to purchase up to $10 million worth of Series A Convertible Preferred Stock (the “Series A Preferred Stock”). The sale of the Series A Preferred Stock closed in two separate closings. On October 15, 2015, the date of the first closing, the Company received proceeds of approximately $4.1 million , net of $0.4 million in estimated expenses. Upon the second closing on January 8, 2016, the Company received proceeds of approximately $5.0 million , net of $0.5 million in estimated expenses. The Company expects to continue incurring losses for the foreseeable future and may be required to raise additional capital to pursue its product development initiatives and penetrate markets for the sale of its products. Management believes that the Company's commercial products, including CoSense, the other neonatology products and Serenz, and the distribution strategies implemented will begin to generate meaningful revenue and corresponding cash in the near term. In addition, the Company has been successful over the last 12 months in raising additional capital, including closing pursuant to the Aspire Purchase Agreement and most recently in January of 2016 with the second closing pursuant to the Sabby Purchase Agreement. Management believes that the Company has access to capital resources through possible public or private equity offerings, debt financings, corporate collaborations or other means; however, the Company has not secured any commitment for new financing at this time nor can it provide any assurance that new financing will be available on commercially acceptable terms, if at all. If the Company is unable to secure additional capital, it may be required to curtail its development of new products and take additional measures to reduce costs in order to conserve its cash in amounts sufficient to sustain operations and meet its obligations. These measures could cause significant delays in the Company's efforts to commercialize its products, which is critical to the realization of its business plan and the future operations of the Company.

Summary of Significant Accounti

Summary of Significant Accounting Policies	3 Months Ended
	Mar. 31, 2016
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	Summary of Significant Accounting Policies There have been no material changes to the significant accounting policies during the three months ended March 31, 2016, as compared to the significant accounting policies described in Note 3 of the “Notes to Consolidated Financial Statements” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2015. Below are those policies with current period updates: Basis of Presentation The accompanying condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP") and the applicable rules and regulations of the Securities and Exchange Commission ("SEC") for interim financial information. Accordingly, they do not include all of the information and notes required by GAAP for complete financial statements. The condensed consolidated balance sheet at December 31, 2015 has been derived from the audited consolidated financial statements at that date, but does not include all disclosures, including notes, required by GAAP for complete financial statements. The unaudited interim condensed consolidated financial statements have been prepared on the same basis as the audited consolidated financial statements and, in the opinion of management, reflect all adjustments of a normal recurring nature considered necessary to present fairly the Company's financial position as of March 31, 2016 and results of its operations and cash flows for the three months ended March 31, 2016 and 2015. The interim results are not necessarily indicative of the results for any future interim period or for the entire year. Certain prior period amounts have been reclassified to conform to current period presentation. 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 Company's Annual Report on Form 10-K. Use of Estimates The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities, and reported amounts of expenses in the financial statements and accompanying notes. Actual results could differ from those estimates. Key estimates included in the financial statements include the valuation of deferred income tax assets, liability and equity instruments, stock-based compensation, acquired intangibles, contingent earn-out consideration, and allowances for accounts receivable and inventory. Inventory As of December 31, 2015 and March 31, 2016, the Company’s inventory was comprised of the following (in thousands): March 31, 2016 December 31, 2015 Raw materials $ 290 $ 106 Work-in-process 267 399 Finished goods 96 46 Total inventory $ 653 $ 551 Inventory is stated at the lower of cost or market under the first-in, first-out (FIFO) method. Intangible Assets Intangible assets with finite lives are amortized on a straight-line basis over their estimated useful lives, which range in term from 5 to 12 years. The useful life of the intangible asset is evaluated each reporting period to determine whether events and circumstances warrant a revision to the remaining useful life. Goodwill The Company tests its goodwill for impairment annually, or whenever events or changes in circumstances indicate an impairment may have occurred, by comparing its reporting unit’s carrying value to its implied fair value. Impairment may result from, among other things, deterioration in the performance of the acquired business, adverse market conditions, adverse changes in applicable laws or regulations and a variety of other circumstances. If the Company determines that an impairment has occurred, it is required to record a write-down of the carrying value and charge the impairment as an operating expense in the period the determination is made. In evaluating the recoverability of the carrying value of goodwill the Company must make assumptions regarding estimated future cash flows and other factors to determine the fair value of the acquired assets. Changes in strategy or market conditions could significantly impact those judgments in the future and require an adjustment to the recorded balances. There was no impairment of goodwill for the three months ended March 31, 2016. Such goodwill is not deductible for tax purposes and represents the value placed on entering new markets and expanding market share. Common Stock Purchase Warrants and Other Derivative Financial Instruments The Company classifies Common Stock purchase warrants and other free standing derivative financial instruments as equity if the contracts (i) require physical settlement or net-share settlement or (ii) give the Company a choice of net-cash settlement or settlement in its own shares (physical settlement or net-share settlement). The Company classifies any contracts that (i) require net-cash settlement (including a requirement to net cash settle the contract if an event occurs and if that event is outside the control of the Company), (ii) give the counterparty a choice of net-cash settlement or settlement in shares (physical settlement or net-share settlement), or (iii) contain reset provisions as either an asset or a liability. The Company assesses classification of its freestanding derivatives at each reporting date to determine whether a change in classification between assets and liabilities is required. The Company determined that certain freestanding derivatives, which principally consist of Series A, Series B, and Series C Warrants to purchase Common Stock, do not satisfy the criteria for classification as equity instruments due to the existence of certain cash settlement features that are not within the sole control of the Company or variable settlement provision that cause them to not be indexed to the Company’s own stock. Due to certain provisions contained in the Series B Warrant agreement that provides for the Company potentially issuing an unlimited number of shares upon exercise, the Company had adopted a sequencing policy that reclassified contracts, with the exception of stock options, from equity to assets or liabilities for those with the latest inception date first. The Company had evaluated the issuance of securities as to reclassification as a liability under this sequencing policy through February 12, 2016, the date that the Series B Warrants expired. Recent Accounting Pronouncements There have been no new accounting pronouncements or changes to accounting pronouncements during the three months ended March 31, 2016 as compared to the recent accounting pronouncements described in the Company’s Annual Report on Form 10-K for the year ended December 31, 2015 that are of significance or potential significance to the Company.

Fair Value of Financial Instrum

Fair Value of Financial Instruments	3 Months Ended
	Mar. 31, 2016
Fair Value Disclosures [Abstract]
Fair Value of Financial Instruments	Fair Value of Financial Instruments The carrying value of the Company’s cash and cash equivalents, restricted cash, accounts receivable, accounts payable and accrued liabilities, approximate fair value due to the short-term nature of these items. 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 I Unadjusted quoted prices in active markets for identical assets or liabilities; • Level II Inputs other than quoted prices included within Level I that are observable, unadjusted 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 related assets or liabilities; and • Level III Unobservable inputs that are supported by little or no market activity for the related assets or liabilities. The categorization of a financial instrument within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement. 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): Fair Value Measurements at March 31, 2016 Total Level 1 Level 2 Level 3 Assets Money market fund $ 3,975 $ 3,975 $ — $ — Liabilities Series A warrant liability $ 558 $ 558 $ — $ — Series C warrant liability 219 — — 219 Total liabilities $ 777 $ 558 $ — $ 219 Fair Value Measurements at December 31, 2015 Total Level 1 Level 2 Level 3 Assets Money market fund $ 3,804 $ 3,804 $ — $ — Liabilities Series A warrant liability $ 1,213 $ 1,213 $ — $ — Series B warrant liability 865 — — 865 Series C warrant liability 462 — — 462 Total common stock warrant liability $ 2,540 $ 1,213 $ — $ 1,327 The Series A Warrant is a registered security that trades on the open market. The fair value of the Series A Warrant liability is based on the publicly quoted trading price of the warrants which is listed on and obtained from NASDAQ. Accordingly, the fair value of Series A Warrants is a Level 1 measurement. The fair value measurements of the Series B and Series C Warrants are based on significant inputs that are unobservable and thus represent Level 3 measurements. The Company’s estimated fair value of the Series B Warrant liability is calculated using a Monte Carlo simulation. Key assumptions include the volatility of the Company’s stock, the expected warrant term, expected dividend yield and risk-free interest rates (see Note 5). The Company’s estimated fair value of the Series C Warrant liability is calculated using the Black-Scholes valuation model. Key assumptions include the volatility of the Company’s stock, the expected warrant term, expected dividend yield and risk-free interest rates (see Note 5). The Level 3 estimates are based, in part, on subjective assumptions. The agreement to pay the annual royalty in the NFG acquisition resulted in the recognition of a contingent consideration, which was recognized at the inception of the acquisition. Subsequent changes to estimate of the amounts of contingent consideration to be paid will be recognized as charges or credits in the statement of operations. The fair value of the contingent consideration is based on preliminary cash flow projections, growth in expected product sales and other assumptions. Based on the assumptions, the fair value of the royalty was determined to be $153 thousand at the date of acquisition and $172 thousand as of March 31, 2016. The fair value of the royalty was determined by applying the income approach, using several significant unobservable inputs for projected cash flows and a discount rate of 20% commensurate with the Company's cost of capital and expectation of the revenue growth for products at their life cycle stage. These inputs are considered Level 3 inputs under the fair value measurements and disclosure guidance. On January 13, 2016 we entered into an agreement to sublease our excess space located in Redwood City. By the end of February we removed all equipment, furniture and fixtures being stored in this excess space and ceased use of this space. The fair value of the cease-use liability was calculated using the remaining lease payments, offset by future sub-lease payments, offset by deferred rent amortization, and discounted to present value using our current cost of capital of 20% . These inputs are considered Level 3 inputs under the fair value measurements and disclosure guidance. During the periods presented, the Company has not changed the manner in which it values liabilities that are measured at fair value using Level 3 inputs. The Company recognizes transfers between levels of the fair value hierarchy as of the end of the reporting period. There were no transfers within the hierarchy during the periods presented. The following table sets forth a summary of the changes in the fair value of the Company’s Level 1 and Level 3 warrants, which are treated as liabilities, as follows (dollars in thousands): Series A Warrant Series B Warrant Series C Warrant Number of Warrants Liability Number of Warrants Liability Number of Warrants Liability Balance at December 31, 2015 2,425,605 $ 1,213 116,580 $ 865 590,415 $ 462 Change in value of Series A Warrants — (655 ) — — — — De-recognition of Series B Warrant liability upon cashless exercise of warrants (485,202 shares issued) — — (102,300 ) (593 ) — — De-recognition of Series B Warrant liability upon expiration — — (14,280 ) — — — Change in value of Series B Warrants — — — (272 ) — — Change in value of Series C Warrants — — — — — (243 ) Balance at March 31, 2016 2,425,605 $ 558 — $ — 590,415 $ 219

Warrant Liabilities

Warrant Liabilities	3 Months Ended
	Mar. 31, 2016
Equity [Abstract]
Warrant Liabilities	Warrant Liabilities Warrants terms The Company has issued Series A Warrants, Series B Warrants and Series C Warrants (the “Warrants”). The Company’s Warrants contain standard anti-dilution provisions for stock dividends, stock splits, subdivisions, combinations and similar types of recapitalization events. They also contain a cashless exercise feature that provides for their net share settlement at the option of the holder in the event that there is no effective registration statement covering the continuous offer and sale of the warrants and underlying shares. The Company is required to comply with certain requirement to cause or maintain the effectiveness of a registration statement for the offer and sale of these securities. The Warrant contracts further provide for the payment of liquidated damages at an amount per month equal to 1% of the aggregate VWAP of the shares into which each Warrant is convertible into in the event that the Company is unable to maintain the effectiveness of a registration statement as described herein. The Company evaluated the registration payment arrangement stipulated in the terms of these securities and determined that it is probable that the Company will maintain an effective registration statement and has therefore not allocated any portion of the Company's cash or cash equivalents to the registration payment arrangement. The Warrants also contain a fundamental transactions provision that permits their settlement in cash at fair value at the option of the holder upon the occurrence of a change in control. Such change in control events include tender offers or hostile takeovers, which are not within the sole control of the Company as the issuer of these Warrants. Accordingly, the Warrants are considered to have a cash settlement feature that precludes their classification as equity instruments. Settlement at fair value upon the occurrence of a fundamental transaction would be computed using the Black Scholes Option Pricing Model. Accounting Treatment The Company accounts for the Warrants in accordance with the guidance in ASC 815 Derivatives and Hedging . As indicated above, the Company may be obligated to settle Warrants in cash in the case of a Fundamental Transaction. The Company classified the Warrants as liabilities at their fair value and will re-measure the warrants at each balance sheet date until they are exercised or expire. Any change in the fair value is recognized as other income (expense) in the Company’s statement of operations. Under ASC 815-40-35, the Company adopted a sequencing policy that reclassifies contracts, with the exception of stock options, from equity to assets or liabilities for those with the latest inception date first. Future issuance of securities will be evaluated as to reclassification as a liability under our sequencing policy of latest inception date first until either all of the Series B Warrants are settled or expire. The Series B Warrants expired on February 12, 2016. In accordance with the guidance under ASC 815-40-25, we have evaluated that we have a sufficient number of authorized and unissued shares as March 31, 2016, to settle all existing commitments. Series A Warrants The Company has issued 2,449,605 Series A Warrants to purchase shares of its Common Stock at an exercise price of $6.50 per share in connection with the unit offering offered in the Company's initial public offering ("IPO") described in Note 2. The Series A Warrants are exercisable at any time prior to the expiration of the five -year term on November 12, 2019. Upon the completion of the IPO, the Series A Warrants started trading on the NASDAQ under the symbol CAPNW. As the Series A Warrants are publicly traded, the Company uses the closing price on the measurement date to determine the fair value of these the Series A Warrants. Since their issuance, a total of 24,000 Series A Warrants have been exercised. As of March 31, 2016, the fair value of the 2,425,605 outstanding Series A Warrants was approximately $558 thousand , and the decrease of $655 thousand in fair value during the three months ended March 31, 2016 was recorded as other income in the statement of operations. Series B Warrants The Company issued 2,449,605 Series B Warrants to purchase shares of its Common Stock at an exercise price of $6.50 per share in connection with the Intial Public Offering. The unexercised Series B Warrants expired on February 12, 2016. The net decrease in carrying amount of the Series B Warrants for the three months ended March 31, 2016 was $865 thousand , of which $271 thousand was attributed to the change in fair value of the warrant liability during the three months ended March 31, 2016 and was recorded as other expense in the consolidated statement of operations. Factors contributing to the change in fair value of the Series B Warrants include the trading price of the Common Stock and term remaining to expiration of the Series B Warrants. Before the expiration date of February 12, 2016, certain holders of Series B warrants cashless exercised a total of 102,300 warrants resulting in the issuance of 485,202 shares of Common Stock and the derecognition of approximately $594 thousand , in Series B Warrant liability, respectively for the three months ended March 31, 2016, which was recorded as additional paid-in capital. Series C Warrants On March 5, 2015, the Company entered into separate agreements with certain Series B Warrant holders, who agreed to exercise their Series B Warrants to purchase an aggregate of 589,510 shares of the Company’s Common Stock at an exercise price of $6.50 per share, resulting in the de-recognition of $6.7 million of Series B Warrant liability and gross proceeds to the Company of approximately $3.8 million based on the exercise price of the Series B Warrants. In connection with this exercise of the Series B Warrants, the Company issued to each investor who exercised Series B Warrants, new Series C Warrants for the number of shares of the Company’s Common Stock underlying the Series B Warrants that were exercised. Each Series C Warrant is exercisable at $6.25 per share and will expire on March 5, 2020 . In April 2015, the Company issued a tender offer to the remaining holders of Series B Warrants to induce the holders to cash exercise the outstanding Series B Warrants in exchange for new Series C Warrants with an exercise price of $6.25 per share that expire on March 5, 2020 . The tender offer was extended to warrant holders under a registration statement filed with the SEC on Form S-4, which was declared effective on June 25, 2015 and expired on July 24, 2015 . During July 2015, certain Series B Warrant holder(s) tendered their Series B Warrants under the tender offer, which resulted in the issuance of 905 shares of Capnia Common Stock, the issuance of 905 Series C Warrants and proceeds to the Company of $5,882 . The new Series C Warrants are exercisable into 590,415 shares of the Company’s Common Stock. As of March 31, 2016, the fair value of the Series C Warrants was determined to be $219 thousand . The decline in the fair value of the Series C Warrants of $244 thousand in the three months ended March 31, 2016 was recorded as other income in the consolidated statement of operations. The Company has calculated the fair value of the Series C Warrants using a Black-Scholes pricing model, which requires the input of highly subjective assumptions including the expected stock price volatility. The Company used the following inputs: March 31, 2016 December 31, 2015 Volatility 90 % 90 % Expected Term (years) 3.92 4.17 Expected dividend yield — % — % Risk-free rate 1.03 % 1.76 %

Commitments and Contingencies

Commitments and Contingencies	3 Months Ended
	Mar. 31, 2016
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies Facility Leases On July 1, 2015 the Company executed a new four year non-cancelable operating lease agreement for 8,171 square feet of office space for its headquarters facility. The lease agreement provides for monthly lease payments of $23,300 beginning in September of 2015, with increases in the following three years. An additional 5,265 square feet of office space became part of the new lease agreement on March 1, 2016. The Company leases office space under a non-cancelable operating lease agreement which was set to expire in May 2015. On February 2, 2015, the Company signed an amendment to its lease agreement, extending the lease through June 2018. The amendment provides for monthly lease payments of $22,000 beginning in June 2015, with increases in the following two years. The Company subleased this facility in January 2016 and ceased use of the facility in March 2016 (See Note 4). The Company also leases approximately 2,100 square feet of office space for its operations in Ivyland, Pennsylvania under a month-to-month lease. Rent expense was $184 thousand and $62 thousand during the three months ended March 31, 2016 and 2015, respectively. Contingencies In the normal course of business, the Company enters into contracts and agreements that contain a variety of representations and warranties and provide for general indemnifications. The Company’s exposure under these agreements is unknown because it involves claims that may be made against the Company in the future, but have not yet been made. 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. In connection with the acquisition of the assets of NFG, the Company agreed to pay the former NFG shareholder an annual royalty payment for a period of 36 months. The agreement to pay the annual royalty resulted in the recognition of a contingent consideration, which is recognized at the inception of the transaction, and subsequent changes to estimate of the amounts of contingent consideration to be paid will be recognized as charges or credits in the statement of operations. The fair value of the contingent consideration is based on preliminary cash flow projections, growth in expected product sales and other assumptions. Based on the assumptions, the fair value of the royalty was determined to be $153 thousand at the date of acquisition and $172 thousand at March 31, 2016.

Stockholders' Equity

Stockholders' Equity	3 Months Ended
	Mar. 31, 2016
Equity [Abstract]
Stockholders' Equity	Stockholders’ Equity Convertible Preferred Stock The Company is authorized to issue 40,000 shares of Series A Convertible Preferred Stock. On January 8, 2016 the Company issued an aggregate of 5,445 shares of Series A Convertible Preferred Stock under the Sabby Purchase Agreement. The Company has issued a total of 10,000 Series A Convertible Preferred Stock, with a par value of $0.001 and a stated value of $1,000 per share. The Series A Convertible Preferred Stock do not have an expiration date and are not redeemable. During the three months ended March 31, 2016, the holders of the Series A Convertible Preferred Stock converted 1,665 shares of Series A Convertible Preferred Stock resulting in the issuance of 900,000 shares of Common Stock. Stock Option Plan The Company has adopted the 1999 Incentive Stock Plan, the 2010 Equity Incentive Plan, and the 2014 Equity Incentive Plan (together, the "Plans"). The 1999 Incentive Stock Plan expired in 2009, and the 2010 Equity Incentive Plan has been closed to new issuances. Therefore, the Company may issue options to purchase shares of common stock to employees, directors, and consultants only under the 2014 Equity Incentive Plan. Options granted under the 2014 Plan may be incentive stock options (“ISOs”) or nonqualified stock options (“NSOs”). ISOs may be granted only to Company employees and directors. NSOs may be granted to employees, directors, advisors, and consultants. The Board of Directors has the authority to determine to whom options will be granted, the number of options, the term, and the exercise price. Options are to be granted at an exercise price not less than fair value for an ISO or 85% of fair value for an NSO. For individuals holding more than 10% of the voting rights of all classes of stock, the exercise price of an option will not be less than 110% of fair value. The vesting period is normally monthly over a period of 4 years from the vesting date. The contractual term of an option is no longer than five years for ISOs for which the grantee owns greater than 10% of the voting power of all classes of stock and no longer than ten years for all other options. The Company recognized stock-based compensation expense related to options granted to employees for the three months ended March 31, 2016 and 2015 of $136 thousand and $401 thousand , respectively. The compensation expense is allocated on a departmental basis, based on the classification of the option holder. No income tax benefits have been recognized in the statements of operations for stock-based compensation arrangements as of March 31, 2016 and March 31, 2015. Stock compensation expense (in thousands) was allocated between departments as follows: Three months ended March 31, 2016 2015 Research & Development $ 33 $ 50 Sales & Marketing (31 ) 20 General & Administrative 134 331 Total $ 136 $ 401 The fair value of each award granted was estimated on the date of grant using the Black-Scholes option pricing model with the following assumptions: Three Months Ended March 31, 2016 2015 Expected life (years) 6.0-6.1 5.5-6.1 Risk-free interest rate 1.5%-1.7% 1.5%-1.6% Volatility 66% - 67% 57% - 68% Dividend rate —% —% Expected volatility is based on volatilities of a group of public companies operating in the Company’s industry. The expected life of stock options represents the average of the contractual term of the options and the weighted-average vesting period, as permitted under the simplified method. The Company has elected to use the simplified method, as the Company does not have enough historical exercise experience to provide a reasonable basis upon which to estimate the expected term and the stock option grants are considered “plain vanilla” options. The risk-free rate is based on the U.S. Treasury yield curve in effect at the time of grant. The following table summarizes stock option transactions issued under the Plans: Shares Available for Grant Number of Options Outstanding Weighted-Average Exercise Price per Share Weighted Average Remaining Contractual Term (in years) Balance at December 31, 2014 606,061 1,072,011 6.34 8.67 Additional shares authorized 270,764 Options granted (955,713 ) 955,713 3.08 Options exercised (83,848 ) 3.50 Options canceled/forfeited 85,037 (85,037 ) 5.03 Balance at December 31, 2015 6,149 1,858,839 4.82 8.75 Additional shares authorized 560,717 Options granted (538,500 ) 538,500 1.59 Options exercised — — Options canceled/forfeited 99,700 (99,700 ) 2.33 Balance at March 31, 2016 128,066 2,297,639 $ 4.09 8.77 Future stock-based compensation for unvested employee options granted and outstanding as of March 31, 2016 is approximately $1.8 million to be recognized over a remaining requisite service period of 3.2 years. The fair value of an equity award granted to a non-employee generally is determined in the same manner as an equity award granted to an employee. In most cases, the fair value of the equity securities granted is more reliably determinable than the fair value of the goods or services received. Stock-based compensation related to its grant of options to non-employees has not been material to date. 2014 Employee Stock Purchase Plan Our Board of Directors and stockholders have adopted the 2014 Employee Stock Purchase Plan, or the ESPP. The ESPP has become effective, and our Board of Directors will implement commencement of offers thereunder in its discretion. A total of 139,839 shares of our Common Stock has been made available for sale under the ESPP. In addition, our ESPP provides for annual increases in the number of shares available for issuance under the plan on the first day of each year beginning in the year following the initial date that our Board of Directors authorizes commencement, equal to the least of: • 1.0% of the outstanding shares of our Common Stock on the first day of such year; 279,680 shares; or • such amount as determined by our Board of Directors. As of March 31, 2016 there were no purchases by employees under this plan. Series D Warrants The Company has issued 2,810,811 Series D Warrants, with an exercise price of $2.46 and a term of five years expiring on October 15, 2020. The Company’s Series D Warrants contain standard anti-dilution provisions for stock dividends, stock splits, subdivisions, combinations and similar types of recapitalization events. They also contain a cashless exercise feature that provides for their net share settlement at the option of the holder in the event that there is no effective registration statement covering the continuous offer and sale of the warrants and underlying shares. The Company is required to comply with certain requirement to cause or maintain the effectiveness of a registration statement for the offer and sale of these securities. The Series D Warrant agreement further provides for the payment of liquidated damages at an amount per month equal to 1% of the aggregate VWAP of the shares into which each Series D Warrant is convertible into in the event that the Company is unable to maintain the effectiveness of a registration statement as described herein. The Company evaluated the registration payment arrangement stipulated in the terms of this securities agreement and determined that it is probable that the Company will maintain an effective registration statement and has therefore not allocated any portion of the proceeds to the registration payment arrangement. The Series D Warrant agreement specifically provides that under no circumstances will the Company be required to settle any Series D Warrant exercise for cash, whether by net settlement or otherwise. Accounting Treatment The Company accounts for the Series D Warrants in accordance with the guidance in ASC 815 Derivatives and Hedging . As indicated above, the Company is not required under any circumstance to settle any Series D Warrant exercise for cash. The Company has therefore classified the value of the Series D Warrants as permanent equity. Other Common Stock Warrants As of March 31, 2016, the Company had 480,147 Common Stock warrants outstanding from the 2010/2012 convertible notes, with an exercise price of $4.87 and a term of 10 years expiring in November 2024. The Company also has outstanding 9,259 Common Stock warrants issued in 2009, with an exercise price of $21.60 and a term of 10 years, expiring in January 2019 and 82,500 Common Stock warrants issued to the underwriter in our IPO, with an exercise price of $7.14 and a term of 10 years, expiring in November 2024.

Net loss per share

Net loss per share	3 Months Ended
	Mar. 31, 2016
Earnings Per Share [Abstract]
Net loss per share	Net loss per share Basic net loss per share is computed by dividing net loss by the weighted-average number of Common Stock actually outstanding during the period. Diluted net loss per share is computed by dividing net loss by the weighted-average number of Common Stock outstanding and dilutive potential Common Stock that would be issued upon the exercise of Common Stock warrants and options. For the three months ended March 31, 2016 and 2015, the effect of issuing the potential common stock is anti-dilutive due to the net losses in those periods and the number of shares used to compute basic and diluted earnings per share are the same in each of those periods. The following potentially dilutive securities outstanding have been excluded from the computations of diluted weighted-average shares outstanding because such securities have an antidilutive impact due to losses reported (in Common Stock equivalent shares): As of March 31, 2016 2015 Convertible preferred stock 4,505,405 — Warrants issued to 2010/2012 convertible note holders to purchase common stock 480,147 480,147 Options to purchase common stock 2,297,639 1,458,964 Warrants issued in 2009 to purchase common stock 9,259 9,259 Warrants issued to underwriter to purchase common stock 82,500 82,500 Series A Warrants to purchase common stock 2,425,605 2,425,605 Series B Warrants to purchase common stock — 1,778,275 Series C Warrants to purchase common stock 590,415 589,510 Series D Warrants to purchase common stock 2,810,812 —

Subsequent Events

Subsequent Events	3 Months Ended
	Mar. 31, 2016
Subsequent Events [Abstract]
Subsequent Events	Subsequent Events On April 26, 2016, the Company commercially launched Serenz in the E.U. over the counter through two United Kingdom-based pharmacy chains, Paydens Group (Paydens) and Weldricks Pharmacy Limited (Weldricks), with more than 150 retail pharmacy locations in the United Kingdom.

Summary of Significant Accoun15

Summary of Significant Accounting Policies (Policies)	3 Months Ended
	Mar. 31, 2016
Accounting Policies [Abstract]
Basis of Presentation	Basis of Presentation The accompanying condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP") and the applicable rules and regulations of the Securities and Exchange Commission ("SEC") for interim financial information. Accordingly, they do not include all of the information and notes required by GAAP for complete financial statements. The condensed consolidated balance sheet at December 31, 2015 has been derived from the audited consolidated financial statements at that date, but does not include all disclosures, including notes, required by GAAP for complete financial statements. The unaudited interim condensed consolidated financial statements have been prepared on the same basis as the audited consolidated financial statements and, in the opinion of management, reflect all adjustments of a normal recurring nature considered necessary to present fairly the Company's financial position as of March 31, 2016 and results of its operations and cash flows for the three months ended March 31, 2016 and 2015. The interim results are not necessarily indicative of the results for any future interim period or for the entire year. Certain prior period amounts have been reclassified to conform to current period presentation. 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 Company's Annual Report on Form 10-K.
Use of Estimates	Use of Estimates The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities, and reported amounts of expenses in the financial statements and accompanying notes. Actual results could differ from those estimates. Key estimates included in the financial statements include the valuation of deferred income tax assets, liability and equity instruments, stock-based compensation, acquired intangibles, contingent earn-out consideration, and allowances for accounts receivable and inventory.
Inventory	Inventory is stated at the lower of cost or market under the first-in, first-out (FIFO) method.
Intangible Assets	Intangible Assets Intangible assets with finite lives are amortized on a straight-line basis over their estimated useful lives, which range in term from 5 to 12 years. The useful life of the intangible asset is evaluated each reporting period to determine whether events and circumstances warrant a revision to the remaining useful life.
Goodwill	Goodwill The Company tests its goodwill for impairment annually, or whenever events or changes in circumstances indicate an impairment may have occurred, by comparing its reporting unit’s carrying value to its implied fair value. Impairment may result from, among other things, deterioration in the performance of the acquired business, adverse market conditions, adverse changes in applicable laws or regulations and a variety of other circumstances. If the Company determines that an impairment has occurred, it is required to record a write-down of the carrying value and charge the impairment as an operating expense in the period the determination is made. In evaluating the recoverability of the carrying value of goodwill the Company must make assumptions regarding estimated future cash flows and other factors to determine the fair value of the acquired assets. Changes in strategy or market conditions could significantly impact those judgments in the future and require an adjustment to the recorded balances. There was no impairment of goodwill for the three months ended March 31, 2016. Such goodwill is not deductible for tax purposes and represents the value placed on entering new markets and expanding market share.
Common Stock Purchase Warrants and Other Derivative Financial Instruments	Common Stock Purchase Warrants and Other Derivative Financial Instruments The Company classifies Common Stock purchase warrants and other free standing derivative financial instruments as equity if the contracts (i) require physical settlement or net-share settlement or (ii) give the Company a choice of net-cash settlement or settlement in its own shares (physical settlement or net-share settlement). The Company classifies any contracts that (i) require net-cash settlement (including a requirement to net cash settle the contract if an event occurs and if that event is outside the control of the Company), (ii) give the counterparty a choice of net-cash settlement or settlement in shares (physical settlement or net-share settlement), or (iii) contain reset provisions as either an asset or a liability. The Company assesses classification of its freestanding derivatives at each reporting date to determine whether a change in classification between assets and liabilities is required. The Company determined that certain freestanding derivatives, which principally consist of Series A, Series B, and Series C Warrants to purchase Common Stock, do not satisfy the criteria for classification as equity instruments due to the existence of certain cash settlement features that are not within the sole control of the Company or variable settlement provision that cause them to not be indexed to the Company’s own stock. Due to certain provisions contained in the Series B Warrant agreement that provides for the Company potentially issuing an unlimited number of shares upon exercise, the Company had adopted a sequencing policy that reclassified contracts, with the exception of stock options, from equity to assets or liabilities for those with the latest inception date first. The Company had evaluated the issuance of securities as to reclassification as a liability under this sequencing policy through February 12, 2016, the date that the Series B Warrants expired.
Recent Accounting Pronouncements	Recent Accounting Pronouncements There have been no new accounting pronouncements or changes to accounting pronouncements during the three months ended March 31, 2016 as compared to the recent accounting pronouncements described in the Company’s Annual Report on Form 10-K for the year ended December 31, 2015 that are of significance or potential significance to the Company.

Summary of Significant Accoun16

Summary of Significant Accounting Policies (Tables)	3 Months Ended
	Mar. 31, 2016
Accounting Policies [Abstract]
Schedule of Inventory	As of December 31, 2015 and March 31, 2016, the Company’s inventory was comprised of the following (in thousands): March 31, 2016 December 31, 2015 Raw materials $ 290 $ 106 Work-in-process 267 399 Finished goods 96 46 Total inventory $ 653 $ 551

Fair Value of Financial Instr17

Fair Value of Financial Instruments (Tables)	3 Months Ended
	Mar. 31, 2016
Fair Value Disclosures [Abstract]
Summary of 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): Fair Value Measurements at March 31, 2016 Total Level 1 Level 2 Level 3 Assets Money market fund $ 3,975 $ 3,975 $ — $ — Liabilities Series A warrant liability $ 558 $ 558 $ — $ — Series C warrant liability 219 — — 219 Total liabilities $ 777 $ 558 $ — $ 219 Fair Value Measurements at December 31, 2015 Total Level 1 Level 2 Level 3 Assets Money market fund $ 3,804 $ 3,804 $ — $ — Liabilities Series A warrant liability $ 1,213 $ 1,213 $ — $ — Series B warrant liability 865 — — 865 Series C warrant liability 462 — — 462 Total common stock warrant liability $ 2,540 $ 1,213 $ — $ 1,327
Summary of Changes in Fair Value of Level1 and Level 3 Financial Instruments	The following table sets forth a summary of the changes in the fair value of the Company’s Level 1 and Level 3 warrants, which are treated as liabilities, as follows (dollars in thousands): Series A Warrant Series B Warrant Series C Warrant Number of Warrants Liability Number of Warrants Liability Number of Warrants Liability Balance at December 31, 2015 2,425,605 $ 1,213 116,580 $ 865 590,415 $ 462 Change in value of Series A Warrants — (655 ) — — — — De-recognition of Series B Warrant liability upon cashless exercise of warrants (485,202 shares issued) — — (102,300 ) (593 ) — — De-recognition of Series B Warrant liability upon expiration — — (14,280 ) — — — Change in value of Series B Warrants — — — (272 ) — — Change in value of Series C Warrants — — — — — (243 ) Balance at March 31, 2016 2,425,605 $ 558 — $ — 590,415 $ 219

Warrant Liabilities (Tables)

Warrant Liabilities (Tables)	3 Months Ended
	Mar. 31, 2016
Equity [Abstract]
Fair Value of Convertible Preferred Stock Warrant Liability	The Company has calculated the fair value of the Series C Warrants using a Black-Scholes pricing model, which requires the input of highly subjective assumptions including the expected stock price volatility. The Company used the following inputs: March 31, 2016 December 31, 2015 Volatility 90 % 90 % Expected Term (years) 3.92 4.17 Expected dividend yield — % — % Risk-free rate 1.03 % 1.76 %

Stockholders' Equity (Tables)

Stockholders' Equity (Tables)	3 Months Ended
	Mar. 31, 2016
Equity [Abstract]
Summary of Stock Based Compensation Expense	Stock compensation expense (in thousands) was allocated between departments as follows: Three months ended March 31, 2016 2015 Research & Development $ 33 $ 50 Sales & Marketing (31 ) 20 General & Administrative 134 331 Total $ 136 $ 401
Stock Options Valuation Assumptions	The fair value of each award granted was estimated on the date of grant using the Black-Scholes option pricing model with the following assumptions: Three Months Ended March 31, 2016 2015 Expected life (years) 6.0-6.1 5.5-6.1 Risk-free interest rate 1.5%-1.7% 1.5%-1.6% Volatility 66% - 67% 57% - 68% Dividend rate —% —%
Summary of Stock Option Transactions	The following table summarizes stock option transactions issued under the Plans: Shares Available for Grant Number of Options Outstanding Weighted-Average Exercise Price per Share Weighted Average Remaining Contractual Term (in years) Balance at December 31, 2014 606,061 1,072,011 6.34 8.67 Additional shares authorized 270,764 Options granted (955,713 ) 955,713 3.08 Options exercised (83,848 ) 3.50 Options canceled/forfeited 85,037 (85,037 ) 5.03 Balance at December 31, 2015 6,149 1,858,839 4.82 8.75 Additional shares authorized 560,717 Options granted (538,500 ) 538,500 1.59 Options exercised — — Options canceled/forfeited 99,700 (99,700 ) 2.33 Balance at March 31, 2016 128,066 2,297,639 $ 4.09 8.77

Net loss per share (Tables)

Net loss per share (Tables)	3 Months Ended
	Mar. 31, 2016
Earnings Per Share [Abstract]
Schedule of Potentially Dilutive Securities Outstanding Excluded from Computations of Diluted Weighted-Average Shares Outstanding	The following potentially dilutive securities outstanding have been excluded from the computations of diluted weighted-average shares outstanding because such securities have an antidilutive impact due to losses reported (in Common Stock equivalent shares): As of March 31, 2016 2015 Convertible preferred stock 4,505,405 — Warrants issued to 2010/2012 convertible note holders to purchase common stock 480,147 480,147 Options to purchase common stock 2,297,639 1,458,964 Warrants issued in 2009 to purchase common stock 9,259 9,259 Warrants issued to underwriter to purchase common stock 82,500 82,500 Series A Warrants to purchase common stock 2,425,605 2,425,605 Series B Warrants to purchase common stock — 1,778,275 Series C Warrants to purchase common stock 590,415 589,510 Series D Warrants to purchase common stock 2,810,812 —

Liquidity, Financial Conditio21

Liquidity, Financial Condition and Management's Plans - Additional Information (Detail)	Jan. 08, 2016USD ($)	Oct. 15, 2015USD ($)	Oct. 12, 2015USD ($)closing	Jul. 24, 2015USD ($)	Mar. 31, 2016USD ($)	Mar. 31, 2015USD ($)	Dec. 31, 2015USD ($)
Liquidity And Managements Plans [Line Items]
Net loss					$ (3,189,000)	$ (11,651,000)
Accumulated deficit					(89,436,000)		$ (86,247,000)
Positive (deficit) in working capital					5,000,000
Net cash used in operating activities					(3,984,000)	(1,809,000)
Proceeds from sale of Series A preferred convertible stock					5,071,000	0
Expenses related stock issuance					0	530,000
Series A Convertible Preferred Stock [Member]
Liquidity And Managements Plans [Line Items]
Expenses related stock issuance					$ 71,000	$ 0
Sabby Management, LLC [Member] | Series A Convertible Preferred Stock [Member]
Liquidity And Managements Plans [Line Items]
Number of closings | closing			2
Maximum commitment under stock purchase agreement			$ 10,000,000
Proceeds from sale of Series A preferred convertible stock	$ 5,000,000	$ 4,100,000
Expenses related stock issuance	$ 500,000	$ 400,000
Aspire Capital Fund, LLC [Member]
Liquidity And Managements Plans [Line Items]
Maximum commitment under stock purchase agreement				$ 10,000,000
Agreement term				24 months

Summary of Significant Accoun22

Summary of Significant Accounting Policies - Additional Information (Detail) $ in Thousands	3 Months Ended
	Mar. 31, 2016USD ($)
Acquired Indefinite-lived Intangible Assets [Line Items]
Impairment of goodwill	$ 0
Minimum [Member]
Acquired Indefinite-lived Intangible Assets [Line Items]
Intangible assets estimated useful lives	5 years
Maximum [Member]
Acquired Indefinite-lived Intangible Assets [Line Items]
Intangible assets estimated useful lives	12 years

Summary of Significant Accoun23

Summary of Significant Accounting Policies - Inventory (Details) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Accounting Policies [Abstract]
Raw materials	$ 290	$ 106
Work-in-process	267	399
Finished goods	96	46
Total inventory	$ 653	$ 551

Fair Value of Financial Instr24

Fair Value of Financial Instruments - Summary of Financial Instruments Measured at Fair Value on Recurring Basis (Detail) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Series A Warrant Liability [Member]
Liabilities
Warrant liability	$ 558	$ 1,213
Series C Warrant Liability [Member]
Liabilities
Warrant liability	219	462
Fair Value, Measurements, Recurring [Member]
Liabilities
Warrant liability	777	2,540
Fair Value, Measurements, Recurring [Member] | Convertible preferred stock warrant liability [Member] | Series A Warrant Liability [Member]
Liabilities
Warrant liability	558	1,213
Fair Value, Measurements, Recurring [Member] | Convertible preferred stock warrant liability [Member] | Series B Warrant Liability [Member]
Liabilities
Warrant liability		865
Fair Value, Measurements, Recurring [Member] | Convertible preferred stock warrant liability [Member] | Series C Warrant Liability [Member]
Liabilities
Warrant liability	219	462
Fair Value, Measurements, Recurring [Member] | Money market fund [Member]
Assets
Cash and cash equivalents	3,975	3,804
Fair Value, Measurements, Recurring [Member] | Level 1 [Member]
Liabilities
Warrant liability	558	1,213
Fair Value, Measurements, Recurring [Member] | Level 1 [Member] | Convertible preferred stock warrant liability [Member] | Series A Warrant Liability [Member]
Liabilities
Warrant liability	558	1,213
Fair Value, Measurements, Recurring [Member] | Level 1 [Member] | Money market fund [Member]
Assets
Cash and cash equivalents	3,975	3,804
Fair Value, Measurements, Recurring [Member] | Level 3 [Member]
Liabilities
Warrant liability	219	1,327
Fair Value, Measurements, Recurring [Member] | Level 3 [Member] | Convertible preferred stock warrant liability [Member] | Series B Warrant Liability [Member]
Liabilities
Warrant liability		865
Fair Value, Measurements, Recurring [Member] | Level 3 [Member] | Convertible preferred stock warrant liability [Member] | Series C Warrant Liability [Member]
Liabilities
Warrant liability	$ 219	$ 462

Fair Value of Financial Instr25

Fair Value of Financial Instruments - Summary of Changes in Fair Value of Level1 and Level 3 Financial Instruments (Detail) - USD ($) $ in Thousands	Feb. 12, 2016	Mar. 31, 2016	Mar. 05, 2015
Series A Warrant [Member]
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
De-recognition of Warrant liability upon exercise, in shares		(24,000)
Balance at the end of period, in shares		2,425,605
Series A Warrant [Member] | Common stock warrant liability [Member]
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Balance at the beginning of period, in shares		2,425,605
Balance at the end of period, in shares		2,425,605
Balance at the beginning of period		$ 1,213
Change in value of Warrant		(655)
Balance at end of period		$ 558
Series B Warrant [Member]
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
De-recognition of Warrant liability upon exercise, in shares			(589,510)
Series B Warrant [Member] | Common stock warrant liability [Member]
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Balance at the beginning of period, in shares		116,580
De-recognition of Series B Warrant liability upon expiration, in shares		(14,280)
Balance at the end of period, in shares		0
Balance at the beginning of period		$ 865
Change in value of Warrant		(272)
Balance at end of period		$ 0
Series B Warrant [Member] | Common stock warrant liability [Member] | Cash Less Exercise [Member]
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
De-recognition of Warrant liability upon exercise, in shares	(102,300)	(102,300)
De-recognition of Warrant liability upon exercise	$ (594)	$ (593)
De-recognition of Warrant liability upon exercise, shares issued	485,202	485,202
Series C Warrant [Member] | Common stock warrant liability [Member]
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Balance at the beginning of period, in shares		590,415
Balance at the end of period, in shares		590,415
Balance at the beginning of period		$ 462
Change in value of Warrant		(243)
Balance at end of period		$ 219

Fair Value of Financial Instr26

Fair Value of Financial Instruments - Additional Information (Details) - USD ($) $ in Thousands	Jan. 13, 2016	Sep. 08, 2015	Mar. 31, 2016	Dec. 31, 2015
Redwood City, California [Member] | Level 3 [Member] | Sublease of Excess Space [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value inputs, discount rate	20.00%
NeoForce, Inc [Member] | NeoForce Group, Inc. [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value of royalty		$ 153	$ 172	$ 153
Fair value inputs, discount rate			20.00%

Warrant Liabilities - Additiona

Warrant Liabilities - Additional Information (Detail) - USD ($)	Feb. 12, 2016	Mar. 05, 2015	Jul. 31, 2015	Mar. 31, 2016	Mar. 31, 2015	Dec. 31, 2015	Apr. 30, 2015
Class of Warrant or Right [Line Items]
Aggregate VWAP (percent)				1.00%
Decrease in the fair value of warrants liabilities				$ (1,170,000)	$ 6,174,000
Series A Warrants to Purchase Shares of Common Stock [Member] | IPO [Member]
Class of Warrant or Right [Line Items]
Number of common stock purchased upon issuance of warrants				2,449,605
Exercise price of warrants exercised				$ 6.50
Warrants term				5 years
Series A Warrant Liability [Member]
Class of Warrant or Right [Line Items]
Warrants exercised				24,000
Warrants outstanding				2,425,605
Warrant liability				$ 558,000		$ 1,213,000
Decrease in the fair value of warrants liabilities				655,000
Gross proceeds upon exercise of warrants				$ 0	156,000
Series A Warrant Liability [Member] | Common stock warrant liability [Member]
Class of Warrant or Right [Line Items]
Warrants outstanding				2,425,605		2,425,605
Series B Warrants to Purchase Shares of Common Stock [Member]
Class of Warrant or Right [Line Items]
Number of common stock purchased upon issuance of warrants				2,449,605
Exercise price of warrants exercised				$ 6.50
Series B Warrant Liability [Member]
Class of Warrant or Right [Line Items]
Exercise price of warrants exercised		$ 6.50
Warrants exercised		589,510
Decrease in the fair value of warrants liabilities				$ 865,000
De-recognition of warrant liability		$ 6,700,000
Gross proceeds upon exercise of warrants		$ 3,800,000
Series B Warrant Liability [Member] | Cash Less Exercise [Member]
Class of Warrant or Right [Line Items]
De-recognition of warrant liability				$ 593,000	$ 417,000
Series B Warrant Liability [Member] | Common stock warrant liability [Member]
Class of Warrant or Right [Line Items]
Warrants outstanding				0		116,580
Series B Warrant Liability [Member] | Common stock warrant liability [Member] | Cash Less Exercise [Member]
Class of Warrant or Right [Line Items]
Warrants exercised	102,300			102,300
De-recognition of Warrant liability upon exercise, shares issued	485,202			485,202
De-recognition of Warrant liability upon exercise	$ 594,000			$ 593,000
Series B Warrant Liability [Member] | Decrease in carrying value [Member]
Class of Warrant or Right [Line Items]
Decrease in the fair value of warrants liabilities				$ 271,000
Series C Warrant Liability [Member]
Class of Warrant or Right [Line Items]
Number of common stock purchased upon issuance of warrants				590,415
Exercise price of warrants exercised		$ 6.25					$ 6.25
Warrant liability				$ 219,000		$ 462,000
Decrease in the fair value of warrants liabilities				$ 244,000
Warrants cashless exercised			905
Proceeds from issuance of common stock under tender offer			$ 5,882
Series C Warrant Liability [Member] | Common stock warrant liability [Member]
Class of Warrant or Right [Line Items]
Warrants outstanding				590,415		590,415
Series C Warrant Liability [Member] | Common Stock [Member]
Class of Warrant or Right [Line Items]
Issuance of shares upon cashless exercise warrants			905

Warrant Liabilities - Fair Valu

Warrant Liabilities - Fair Value of Convertible Preferred Stock Warrant Liability (Detail) - Series C Warrant [Member]	3 Months Ended	12 Months Ended
	Mar. 31, 2016	Dec. 31, 2015
Fair Value Inputs, Liabilities, Quantitative Information [Line Items]
Volatility	90.00%	90.00%
Expected Term	3 years 11 months 1 day	4 years 2 months 1 day
Expected dividend yield	0.00%	0.00%
Risk-free rate	1.03%	1.76%

Commitments and Contingencies -

Commitments and Contingencies - Additional Information (Detail)	Mar. 01, 2016ft²	Sep. 08, 2015USD ($)	Jul. 01, 2015USD ($)ft²	Feb. 02, 2015USD ($)	Mar. 31, 2016USD ($)	Mar. 31, 2015USD ($)	Dec. 31, 2015USD ($)ft²
Loss Contingencies [Line Items]
Non-cancelable operating lease agreement term			4 years
Area of real estate property (in sqft) | ft²			8,171
Future minimum commitment under non-cancelable operating lease | $			$ 23,300	$ 22,000
Lessee Leasing Arrangements, Operating Leases, Increases to Monthly Payments, Term			3 years	2 years
Additional area of office space for headquarters facility | ft²	5,265
Rent expense | $					$ 184,000	$ 62,000
Ivyland, Pennsylvania [Member]
Loss Contingencies [Line Items]
Area of real estate property (in sqft) | ft²							2,100
NeoForce Group, Inc. [Member] | NeoForce, Inc [Member]
Loss Contingencies [Line Items]
Royalty payment period					36 months
Fair value of royalty | $		$ 153,000			$ 172,000		$ 153,000

Stockholders' Equity - Addition

Stockholders' Equity - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		12 Months Ended
	Mar. 31, 2016	Mar. 31, 2015	Dec. 31, 2015	Jan. 08, 2016	Dec. 31, 2014
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense	$ 136	$ 401
Future stock-based compensation for unvested employee options granted and outstanding	$ 1,800
Future stock-based compensation, requisite service period	3 years 2 months 12 days
Aggregate VWAP (percent)	1.00%
Warrants Issued in 2009 to Purchase Common Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Warrants outstanding	9,259
Exercise price of warrants exercised	$ 21.60
Warrants term	10 years
Series D Warrants [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Warrants outstanding	2,810,811
Exercise price of warrants exercised	$ 2.46
Warrants term	5 years
Aggregate VWAP (percent)	1.00%
Warrants to Purchase Stock [Member] | 2010 and 2012 Convertible Promissory Notes [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Warrants outstanding	480,147
Exercise price of warrants exercised	$ 4.87
Warrants term	10 years
Underwriter [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Warrants outstanding	82,500
Exercise price of warrants exercised	$ 7.14
Warrants term	10 years
Employee Stock Purchase Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares available for sale under the ESPP	139,839
Annual increases in the number of shares available for issuance, percentage of outstanding common stock	1.00%
Annual increases in the number of shares available for issuance, number of shares	279,680
Minimum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Percentage of voting rights of stock	10.00%
NSO [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Percentage of fair market value	85.00%
Stock Options [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period	4 years
Income tax benefit from stock compensation expense	$ 0	$ 0
Shares available for sale under the ESPP	128,066		6,149		606,061
Annual increases in the number of shares available for issuance, number of shares	560,717		270,764
Stock Options [Member] | Minimum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Percentage of fair market value	110.00%
Stock Options [Member] | Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Contractual term of option	10 years
ISOs [Member] | Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Contractual term of option	5 years
Series A Convertible Preferred Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Convertible preferred stock, shares authorized	40,000		40,000
Convertible preferred stock, shares issued	8,335		4,555	10,000
Convertible preferred stock, par value (in dollars per share)	$ 0.001
Convertible preferred stock, stated value (in dollars per share)	$ 1,000
Number of shares converted	1,665
Common Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares issued upon conversion	900,000
Sabby Management, LLC [Member] | Series A Convertible Preferred Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Convertible preferred stock, shares issued				5,445

Stockholders' Equity - Summary

Stockholders' Equity - Summary of Stock Based Compensation Expense (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Total stock compensation expense	$ 136	$ 401
Research and Development [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Total stock compensation expense	33	50
Sales and Marketing [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Total stock compensation expense	(31)	20
General and Administrative [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Total stock compensation expense	$ 134	$ 331

Stockholders' Equity - Stock Op

Stockholders' Equity - Stock Option Assumptions (Details)	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Dividend rate	0.00%	0.00%
Minimum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected life	6 years	5 years 6 months
Risk-free interest rate	1.50%	1.50%
Volatility	66.00%	57.00%
Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected life	6 years 1 month 6 days	6 years 1 month 6 days
Risk-free interest rate	1.70%	1.60%
Volatility	67.00%	68.00%

Stockholders' Equity - Summar33

Stockholders' Equity - Summary of Stock Option Transactions (Detail) - Stock Options [Member] - $ / shares	3 Months Ended	12 Months Ended
	Mar. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Shares Available for Grant
Beginning balance (in shares)	6,149	606,061
Additional shares authorized (in shares)	560,717	270,764
Options granted (in shares)	(538,500)	(955,713)
Options canceled/forfeited (in shares)	99,700	85,037
Ending balance (in shares)	128,066	6,149	606,061
Number of Options Outstanding
Beginning balance (in shares)	1,858,839	1,072,011
Options granted (in shares)	538,500	955,713
Options exercised (in shares)	0	(83,848)
Options canceled/forfeited (in shares)	(99,700)	(85,037)
Ending balance (in shares)	2,297,639	1,858,839	1,072,011
Weighted-Average Exercise Price per Share
Beginning balance (in dollars per share)	$ 4.82	$ 6.34
Options granted (in dollars per share)	1.59	3.08
Options exercised (in dollars per share)	0	3.50
Options canceled/forfeited (in dollars per share)	2.33	5.03
Ending balance (in dollars per share)	$ 4.09	$ 4.82	$ 6.34
Weighted average remaining contractual term (in years)	8 years 9 months 7 days	8 years 9 months	8 years 8 months 1 day

Net loss per share - Schedule o

Net loss per share - Schedule of Potentially Dilutive Securities Outstanding Excluded from Computations of Diluted Weighted-Average Shares Outstanding (Detail) - shares	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Underwriter [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computations of diluted weighted-average shares outstanding	82,500	82,500
Series A Warrants to Purchase Shares of Common Stock [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computations of diluted weighted-average shares outstanding	2,425,605	2,425,605
Series B Warrants to Purchase Shares of Common Stock [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computations of diluted weighted-average shares outstanding	0	1,778,275
Series C Warrant to Purchase Common Stock [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computations of diluted weighted-average shares outstanding	590,415	589,510
Series D Warrant To Purchase Common Stock [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computations of diluted weighted-average shares outstanding	2,810,812	0
Warrants Issued to 2010/2012 Convertible Note Holders to Purchase Common Stock [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computations of diluted weighted-average shares outstanding	480,147	480,147
Options to Purchase Common Stock [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computations of diluted weighted-average shares outstanding	2,297,639	1,458,964
Warrants Issued in 2009 to Purchase Common Stock [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computations of diluted weighted-average shares outstanding	9,259	9,259
Convertible Preferred Stock [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computations of diluted weighted-average shares outstanding	4,505,405	0

Subsequent Events (Details)

Subsequent Events (Details) - Subsequent Event [Member]	Apr. 26, 2016locationpharmacy_chain
Subsequent Event [Line Items]
Number of pharmacy chains | pharmacy_chain	2
Number of retail locations | location	150