GenMark Diagnostics (GNMK) 10-Q 27 Oct 15 2015 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2015	Oct. 22, 2015
Document and Entity Information [Abstract]
Entity Registrant Name	GenMark Diagnostics, Inc.
Entity Central Index Key	1,487,371
Current Fiscal Year End Date	--12-31
Entity Filer Category	Accelerated Filer
Document Type	10-Q
Document Period End Date	Sep. 30, 2015
Document Fiscal Year Focus	2,015
Document Fiscal Period Focus	Q3
Amendment Flag	false
Entity Common Stock, Shares Outstanding		42,442,721

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets (Unaudited) - USD ($)	Sep. 30, 2015	Dec. 31, 2014
Current assets
Cash and cash equivalents	$ 34,212,000	$ 36,855,000
Marketable securities	19,966,000	33,651,000
Accounts receivable, net of allowances of $2,702 and $2,702, respectively	4,332,000	4,889,000
Inventories	2,714,000	2,137,000
Prepaid expenses and other current assets	874,000	575,000
Total current assets	62,098,000	78,107,000
Property and equipment, net	11,557,000	11,052,000
Intangible assets, net	2,470,000	1,870,000
Restricted cash	758,000	758,000
Other long-term assets	184,000	183,000
Total assets	77,067,000	91,970,000
Current liabilities
Accounts payable	4,893,000	5,126,000
Accrued compensation	4,885,000	5,172,000
Other current liabilities	1,695,000	1,995,000
Total current liabilities	11,473,000	12,293,000
Long-term liabilities
Deferred rent	1,308,000	1,445,000
Long-term Debt, Excluding Current Maturities	9,794,000	0
Other non-current liabilities	249,000	208,000
Total liabilities	22,824,000	13,946,000
Stockholders’ equity
Preferred stock, $0.0001 par value; 5,000 authorized, none issued	0	0
Common stock, $0.0001 par value; 100,000 authorized; 42,445 and 41,859 shares issued and outstanding as of September 30, 2015 and December 31, 2014, respectively	4,000	4,000
Additional paid-in capital	350,124,000	340,502,000
Accumulated deficit	(295,887,000)	(262,472,000)
Accumulated other comprehensive income	2,000	(10,000)
Total stockholders’ equity	54,243,000	78,024,000
Total liabilities and stockholders’ equity	$ 77,067,000	$ 91,970,000

Condensed Consolidated Balance3

Condensed Consolidated Balance Sheets (Parenthetical) (Unaudited) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Statement of Financial Position [Abstract]
Accounts receivable - net of allowance	$ 2,702	$ 2,702
Preferred stock, par value	$ 0.0001	$ 0.0001
Preferred stock, authorized	5,000,000	5,000,000
Preferred stock, issued	0	0
Common stock, par value	$ 0.0001	$ 0.0001
Common stock, authorized	100,000,000	100,000,000
Common stock, issued	42,445,000	41,859,000
Common stock, outstanding	42,445,000	41,859,000

Condensed Consolidated Statemen

Condensed Consolidated Statements of Comprehensive Loss (Unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Income Statement [Abstract]
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, before Tax	$ (1)	$ 0	$ 8	$ 0
Revenue
Product revenue	8,382	6,233	25,944	20,593
License and other revenue	90	67	281	175
Total revenue	8,472	6,300	26,225	20,768
Cost of revenue	3,352	2,609	10,630	9,300
Gross profit	5,120	3,691	15,595	11,468
Operating expenses
Sales and marketing	3,587	3,159	10,984	9,516
General and administrative	3,061	2,900	10,393	9,051
Research and development	9,589	7,904	27,292	23,297
Total operating expenses	16,237	13,963	48,669	41,864
Loss from operations	(11,117)	(10,272)	(33,074)	(30,396)
Other income (expense)
Interest income	30	45	99	206
Interest expense	(289)	(14)	(607)	(18)
Other income (expense)	(14)	(33)	193	(34)
Total other income (expense)	(273)	(2)	(315)	154
Loss before provision for income taxes	(11,390)	(10,274)	(33,389)	(30,242)
Income tax expense (benefit)	4	(616)	26	(591)
Net loss	$ (11,394)	$ (9,658)	$ (33,415)	$ (29,651)
Net loss per share, basic and diluted	$ (0.27)	$ (0.23)	$ (0.79)	$ (0.72)
Weighted average number of shares outstanding, basic and diluted	42,312	41,446	42,061	41,273
Other comprehensive loss
Net loss	$ (11,394)	$ (9,658)	$ (33,415)	$ (29,651)
Net unrealized gains (losses) on marketable securities, net of tax	(4)	(3)	(20)	6
Comprehensive loss	$ (11,399)	$ (9,661)	$ (33,427)	$ (29,645)

Condensed Consolidated Stateme5

Condensed Consolidated Statement of Cash Flows (Unaudited) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
Operating activities
Net loss	$ (33,415)	$ (29,651)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	2,500	1,870
Amortization of premiums on investments	157	577
Amortization of Financing Costs and Discounts	199	0
Gain (Loss) on Sale of Other Investments	(223)	0
Stock-based compensation	7,347	4,478
Non-cash inventory adjustments	567	517
Other Operating Activities, Cash Flow Statement	9	0
Changes in operating assets and liabilities:
Accounts receivable	557	151
Inventories	(980)	209
Prepaid expenses and other assets	(320)	(691)
Accounts payable	(358)	(318)
Accrued compensation	575	1,757
Other liabilities	(295)	(1,131)
Net cash used in operating activities	(23,680)	(22,232)
Investing activities
Payments for intellectual property licenses	(550)	(350)
Purchases of property and equipment	(2,868)	(3,699)
Purchases of available-for-sale securities	(14,797)	(28,054)
Proceeds from sales of marketable securities	223	7,497
Maturities of marketable securities	28,350	36,250
Net cash provided by investing activities	10,358	11,644
Financing activities
Proceeds from issuance of common stock	427	373
Principal repayment of borrowings	(15)	(51)
Proceeds from borrowings	10,000	0
Payments of Debt Issuance Costs	(718)
Proceeds from stock option exercises	986	201
Net cash provided by financing activities	10,680	523
Effect of Exchange Rate on Cash and Cash Equivalents	(1)	0
Net decrease in cash and cash equivalents	(2,643)	(10,065)
Cash and cash equivalents at beginning of period	36,855
Cash and cash equivalents at end of period	34,212
Non-cash investing and financing activities
Transfer of instruments from property and equipment to inventory	165	156
Property and equipment costs included in accounts payable	248	364
Intellectual property acquisitions included in other current liabilities	800	550
Supplemental cash flow disclosures
Cash paid for income taxes, net	9	27
Cash received for interest	256	783
Cash paid for interest	$ 607	$ 18

Organization and Basis of Prese

Organization and Basis of Presentation	9 Months Ended
	Sep. 30, 2015
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Organization and Basis of Presentation	asis of Presentation The accompanying financial statements have been prepared on a going-concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. The Company has incurred net losses from operations since its inception and had an accumulated deficit of $295,887,000 as of September 30, 2015 . Management expects operating losses to continue for the foreseeable future. The Company's ability to transition to profitable operations is dependent upon achieving a level of revenues adequate to support its cost structure through expanding its product offerings and consequently increasing its product revenues. Cash, cash equivalents and marketable securities as of September 30, 2015 were $54,178,000 . The Company has prepared cash flow forecasts which indicate, based on the Company’s current cash resources available, that the Company will have sufficient resources to fund its business for at least the next 12 months . The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with United States generally accepted accounting principles, or U.S. GAAP, and applicable regulations of the U.S. Securities and Exchange Commission, or the SEC, and should be read in conjunction with the audited financial statements included in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2014 filed with the SEC on February 24, 2015. These unaudited condensed consolidated financial statements reflect all adjustments that are, in the opinion of management, necessary for a fair statement of the results for the interim periods presented. These adjustments are of a normal, recurring nature. Interim period operating results may not be indicative of the operating results for the full year or any future period. Use of Estimates The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and the notes thereto. The Company’s significant estimates included in the preparation of the financial statements are related to accounts receivable, inventories, property and equipment, intangible assets, employee-related compensation accruals, warranty liabilities, tax valuation accounts and stock-based compensation. Actual results could differ from those estimates. Segment Information The Company currently operates in one reportable business segment, which encompasses the development, manufacturing, sales and support of instruments and molecular tests based on its proprietary eSensor® detection technology. Substantially all of the Company’s operations and assets are in the United States of America. Reclassifications Certain reclassifications of prior year financial information have been made to conform to the current year presentation. Costs previously reported as cost of revenue totaling $83,000 and $291,000 for the three and nine months ended September 30, 2014, respectively, have been reclassified as general and administrative expenses to better align those costs with the functional areas that benefited from those expenditures. The Company also reclassified $183,000 and $577,000 included in other income and expense for the three and nine months ended September 30, 2014, respectively, into interest income to better align the true nature of the expenses. In addition, the Company reclassified $1,658,000 included in other current liabilities to accounts payable at December 31, 2014 to better align the nature of this balance. None of the foregoing reclassifications impacts the Company’s previously reported consolidated total revenue, loss from operations, net loss or net loss per share. Recent Accounting Pronouncements From time to time, new accounting pronouncements are issued by the Financial Accounting Standards Board, or the FASB, or other standard setting bodies that the Company adopts as of the specified effective date. The Company believes that the impact of recently issued standards that are not yet effective will not have a material impact on its financial condition or results of operations upon adoption. In April 2015, the FASB issued Accounting Standards Update (ASU) 2015-03, Interest - Imputation of Interest. This standard requires debt issuance costs related to a recognized debt liability to be presented in the balance sheet as a direct deduction from the debt liability. The Company has retrospectively adopted this standard. The Company's debt issuance costs have been recognized as a direct reduction to short-term and long-term debt liability in the unaudited condensed consolidated balance sheets for all periods presented. In August 2015, the FASB issued Accounting Standards Update (ASU) 2015-14, Revenue from Contracts with Customers deferring the previously issued ASU 2014-09. This standard is based on the principle that revenue should be recognized to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. ASU 2014-09 will be effective for the Company beginning in the first fiscal quarter of 2018 and allows for a full retrospective or a modified retrospective adoption approach. The new standard does not have a current impact on the unaudited consolidated financial statements presented. The Company is currently evaluating the impact of ASU 2014-09 on its consolidated financial statements. Cash, Cash Equivalents and Marketable Securities Cash and cash equivalents consist of cash on deposit with banks, money market instruments and certificates of deposit with original maturities of three months or less at the date of purchase. Marketable securities consist of certificates of deposits that mature in greater than three months. Marketable securities are accounted for as "available-for-sale" with the carrying amounts reported in the balance sheets stated at cost, which approximates their fair market value, with unrealized gains and losses, if any, reported as a separate component of stockholders' equity and included in comprehensive loss. Restricted Cash Restricted cash represents amounts designated for uses other than current operations and included $758,000 as of September 30, 2015 , held as security for the Company’s letter of credit with Banc of California. Receivables Accounts receivable consist of amounts due to the Company for sales to customers and are recorded net of an allowance for doubtful accounts. The allowance for doubtful accounts is determined based on an assessment of the collectability of specific customer accounts, the aging of accounts receivable, and a reserve for unknown items based upon the Company’s historical experience. Product Warranties The Company generally offers a one -year warranty for its instruments sold to customers and typically up to a 60 day warranty for consumables. Factors that affect the Company’s warranty reserves include the number of units sold, historical and anticipated rates of warranty repairs and the cost per repair. The Company periodically assesses the adequacy of its warranty reserve and adjusts the amount as appropriate. Intangible Assets Intangible assets are comprised of licenses or sublicenses to technology covered by patents owned by third parties, and are amortized on a straight-line basis over the expected useful lives of these assets, which is generally 10 years . Amortization of licenses typically begins upon the Company obtaining access to the licensed technology and is recorded in cost of revenues for licenses supporting commercialized products. The amortization of licenses to technology supporting products in development is recorded in research and development expenses. Impairment of Long-Lived Assets The Company assesses the recoverability of long-lived assets, including intangible assets, by periodically evaluating the carrying value whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. If impairment is indicated, the Company writes down the carrying value of the asset to its estimated fair value. This fair value is primarily determined based on estimated discounted cash flows. Inventories Inventories are stated at the lower of cost (first-in, first-out) or net realizable value and include direct labor, materials, and manufacturing overhead. The Company periodically reviews inventory for evidence of slow-moving or obsolete parts, and writes inventory down to net realizable value, as needed. This write down is based on management’s review of inventories on hand, compared to estimated future usage and sales, shelf-life assumptions, and assumptions about the likelihood of obsolescence. If actual market conditions are less favorable than those projected by the Company, additional inventory write-downs may be required. Inventory impairment charges establish a new cost basis for inventory and charges are not reversed subsequently to income, even if circumstances later suggest that increased carrying amounts are recoverable. Property and Equipment, net Property, equipment and leasehold improvements are recorded at cost and depreciated using the straight-line method over the estimated useful lives of the assets, which are identified below. Repair and maintenance costs are expensed as incurred. Machinery and laboratory equipment 3 - 5 years Instruments 4 - 5 years Office equipment 5 years Leasehold improvements over the shorter of the remaining life of the lease or the useful economic life of the asset Income Taxes Current income tax expense is the amount of income taxes expected to be payable for the current year. A deferred income tax liability or asset is established for the expected future tax consequences resulting from the differences in financial reporting and tax basis of assets and liabilities. A valuation allowance is provided if it is more likely than not that some or all of the deferred tax assets will not be realized. A full valuation allowance has been recorded against the Company’s net deferred tax assets due to the uncertainty surrounding the Company’s ability to utilize these assets in the future. The Company provides for uncertain tax positions when such tax positions do not meet the recognition thresholds or measurement standards prescribed by the authoritative guidance on income taxes. Amounts for uncertain tax positions are adjusted in periods when new information becomes available or when positions are effectively settled. The Company recognizes accrued interest related to uncertain tax positions as a component of income tax expense. A tax position that is more likely than not to be realized is measured at the largest amount of tax benefit that is greater than 50% likely of being realized upon settlement with the taxing authority that has full knowledge of all relevant information. Measurement of a tax position that meets the more likely than not threshold considers the amounts and probabilities of the outcomes that could be realized upon settlement using the facts, circumstances and information available at the reporting date.

Stock-Based Compensation

Stock-Based Compensation	9 Months Ended
	Sep. 30, 2015
Compensation Related Costs [Abstract]
Stock-Based Compensation	Stock-Based Compensation The Company recognizes stock-based compensation expense related to stock options, restricted stock awards, restricted stock units, and market-based stock units granted to employees and directors in exchange for services and employee stock purchases under the Company's 2013 Employee Stock Purchase Plan, or the ESPP. Stock-based compensation expense is based on the fair value of the applicable award utilizing various assumptions regarding the underlying attributes of the award. Stock-based compensation expense is recorded in cost of sales, sales and marketing, research and development, and general and administration expenses based on the employee's respective function. The estimated fair value of stock options granted, net of forfeitures expected to occur during the vesting period, is amortized as compensation expense on a straight-line basis to reflect vesting as it occurs. The fair value of stock options granted is derived from the Black-Scholes Option Pricing Model which uses several judgment-based variables to calculate the expense. The inputs include the expected term of the stock option, the expected volatility and other factors. • Expected Term. Expected term represents the period that the stock-based awards are expected to be outstanding and is determined by using the simplified method. • Expected Volatility . Expected volatility represents the estimated volatility in the Company’s stock price over the expected term of the stock option and is determined by review of the Company’s and similar companies’ historical experience. • Expected Dividend . The Black-Scholes Option Pricing Model calls for a single expected dividend yield as an input. The Company has assumed no dividends as it has never paid dividends and has no current plans to do so. • Risk-Free Interest Rate. The risk-free interest rate used in the Black-Scholes Option Pricing Model is based on published U.S. Treasury rates in effect at the time of grant for periods corresponding with the expected term of the option. The compensation expense related to the restricted stock awards or units is calculated as the fair market value of the stock on the grant date and is adjusted for estimated forfeitures. Employee participation in the Company's 2010 Equity Incentive Plan, or the 2010 Plan, is at the discretion of the Compensation Committee of the Board of Directors of the Company. All stock options granted under the 2010 Plan are exercisable at a per share price equal to the closing quoted market price of a share of the Company’s stock on the NASDAQ Global Market on the grant date and generally vest over a period of between one and four years . Stock options are generally exercisable for a period of up to 10 years after grant and are typically forfeited if employment is terminated before the options vest. As of September 30, 2015 , there were 186,083 shares available for future grant under the 2010 Plan. Each grant of stock options, restricted stock awards, restricted stock units and market-based stock units reduces the number of shares available for grant under the 2010 Plan. The following table summarizes stock option activity during the nine months ended September 30, 2015 : Number of Shares Weighted Average Exercise Price Outstanding as of December 31, 2014 2,479,435 $ 8.66 Granted 780,450 12.99 Exercised (179,409) 5.47 Cancelled (57,160) 11.39 Outstanding as of September 30, 2015 3,023,316 9.92 Vested and expected to vest as of September 30, 2015 2,748,858 9.67 Exercisable as of September 30, 2015 1,542,560 $ 7.62 The weighted average fair value of stock options granted during the nine months ended September 30, 2015 was $6.35 . Options that were exercisable as of September 30, 2015 had a remaining weighted average contractual term of 6.26 years, and an aggregate intrinsic value of $2,440,000 . As of September 30, 2015 , there were 3,023,316 stock options outstanding, which had a remaining weighted average contractual term of 7.53 years and an aggregate intrinsic value of $2,465,000 . The following table presents the weighted average assumptions used by the Company to estimate the fair value of stock options granted, as well as the resulting weighted average fair values for the nine months ended September 30, 2015 : Nine Months Ended September 30, 2015 2014 Expected volatility 50 % 69 % Expected life (years) 6.08 6.08 Risk-free interest rate 1.69 % 1.82 % Expected dividend — % — % Weighted average fair value $6.35 $7.47 In March 2013, the Company transitioned to granting restricted stock units under the 2010 Plan in lieu of granting restricted stock awards. The Company’s restricted stock award and restricted stock unit activity for the nine months ended September 30, 2015 was as follows: Restricted Stock Awards Restricted Stock Units Number of Shares Weighted Average Grant Date Fair Value Number of Shares Weighted Average Grant Date Fair Value Unvested as of December 31, 2014 173,610 $ 4.56 741,992 $ 11.46 Granted — — 674,996 12.26 Vested (109,080) 4.38 (339,954) 11.61 Cancelled or expired (1,999) 5.11 (44,353) 12.47 Unvested as of September 30, 2015 62,531 $ 4.84 1,032,681 $ 11.89 As of September 30, 2015 , there was $ 255,000 of unrecognized compensation cost related to unvested restricted stock awards, which is expected to be recognized over a weighted average period of 0.61 years. The total fair value of restricted stock awards that vested during the nine months ended September 30, 2015 and 2014 was $1,222,000 and $2,978,000 , respectively. As of September 30, 2015 , there was $10,785,000 of unrecognized compensation cost related to unvested restricted stock units, which is expected to be recognized over a weighted average period of 2.80 years. The total fair value of restricted stock units that vested during the nine months ended September 30, 2015 and 2014 was $ 3,885,000 and $1,791,000 , respectively. Restricted stock awards or units may be granted at the discretion of the Compensation Committee of the Board of Directors under the 2010 Plan in connection with the hiring or retention of personnel and are subject to certain conditions. Restrictions expire at certain dates in accordance with specific provisions in the applicable award agreement. During the nine months ended September 30, 2015 and 2014 , aggregate stock-based compensation expense for restricted stock units and awards and market-based stock units was $4,352,000 and $2,453,000 , respectively. The Company issued 154,929 market-based stock units in February 2015 which may result in the recipient receiving shares of stock equal to 200% of the target number of units. The fair value of these market-based stock units was estimated on the date of grant using the Monte Carlo Simulation Valuation Model, which estimates the potential outcome of reaching the market condition based on simulated future stock prices, with the following assumptions: expected volatility of 44.7% and risk free interest rate of 1.1% . The vesting and issuance of Company stock depends on the Company's stock performance as compared to the NASDAQ Composite Index. The awards vest in three equal installments on December 31, 2015, December 31, 2016 and December 31, 2017 if stock performance metrics are achieved. As of September 30, 2015 , there was $1,777,000 of unrecognized stock-based compensation expense related to these awards, which is expected to be recognized over a weighted average period of 2.25 years. The Company issued 43,200 performance-based restricted stock units in March 2014 with a grant date fair value of $12.30 . The vesting and issuance of Company stock pursuant to these awards depends on obtaining regulatory clearance of various products within a defined time. Stock-based compensation expense for performance-based awards is recognized when it is probable that the applicable performance criteria will be satisfied. The probability of achieving the relevant performance criteria is evaluated on a quarterly basis. As of September 30, 2015 , there was $399,000 of unrecognized stock-based compensation expense related to these awards. Employee Stock Purchase Plan The Company's stockholders approved the ESPP in May 2013. A total of 650,000 shares of the Company’s common stock were originally reserved for issuance under the ESPP, which permits eligible employees to purchase common stock at a discount through payroll deductions. The price at which stock is purchased under the ESPP is equal to 85% of the fair market value of the Company's common stock on the first or the last day of the offering period, whichever is lower. Generally, each offering under the ESPP will be for a period of six months as determined by the Company's Board of Directors; provided that no offering period may exceed 27 months. Employees may invest up to 10% of their qualifying gross compensation through payroll deductions. In no event may an employee purchase more than 1,500 shares of common stock during any six-month offering period. As of September 30, 2015 , there were 473,301 shares of common stock available for issuance under the ESPP. The ESPP is a compensatory plan as defined by the authoritative guidance for stock compensation, therefore; stock-based compensation expense related to the ESPP has been recorded during the nine months ended September 30, 2015 .

Net Loss per Common Share

Net Loss per Common Share	9 Months Ended
	Sep. 30, 2015
Earnings Per Share [Abstract]
Net Loss per Common Share	Net Loss per Common Share Basic net loss per share is calculated by dividing loss available to stockholders of the Company's common stock (the numerator) by the weighted average number of shares of the Company's common stock outstanding during the period (the denominator). Shares issued during the period and shares reacquired during the period are weighted for the portion of the period that they were outstanding. Diluted loss per share is calculated in a similar way to basic loss per share except that the denominator is increased to include the number of additional shares that would have been outstanding if the dilutive potential shares had been issued, unless the effect would be anti-dilutive. The computations of diluted net loss per share for the three and nine month periods ended September 30, 2015 and 2014 did not include the effects of the following stock options and other equity awards which were outstanding as of the end of each period because the inclusion of these securities would have been anti-dilutive (in thousands): Three Months Ended September 30, Nine Months Ended 2015 2014 2015 2014 Options outstanding to purchase common stock 3,023 2,547 3,023 2,547 Other unvested equity awards 1,283 1,009 1,283 1,009 Total 4,306 3,556 4,306 3,556

Inventories

Inventories	9 Months Ended
	Sep. 30, 2015
Inventory Disclosure [Abstract]
Inventories	Inventories Inventory on hand as of September 30, 2015 and December 31, 2014 comprised the following (in thousands): September 30, 2015 December 31, 2014 Raw materials $ 593 $ 593 Work-in-process 1,130 660 Finished goods 991 884 Total inventories $ 2,714 $ 2,137

Property and Equipment, net

Property and Equipment, net	9 Months Ended
	Sep. 30, 2015
Property, Plant and Equipment, Net [Abstract]
Property and Equipment, net	Property and Equipment, net Property and equipment as of September 30, 2015 and December 31, 2014 comprised the following (in thousands): September 30, 2015 December 31, 2014 Property and equipment — at cost: Machinery and laboratory equipment $ 7,603 $ 6,737 Instruments 8,084 6,611 Office equipment 1,565 1,441 Leasehold improvements 4,084 4,050 Total property and equipment — at cost 21,336 18,839 Less: accumulated depreciation (9,779 ) (7,787 ) Property and equipment, net $ 11,557 $ 11,052 Depreciation expense was $797,000 and $638,000 for the three months ended September 30, 2015 and 2014 , respectively, and was $2,301,000 and $1,707,000 for the nine months ended September 30, 2015 and 2014 , respectively.

Intangible Assets, net

Intangible Assets, net	9 Months Ended
	Sep. 30, 2015
Goodwill and Intangible Assets Disclosure [Abstract]
Intangible Assets, net	Intangible Assets, net Intangible assets as of September 30, 2015 and December 31, 2014 comprised the following (in thousands): September 30, 2015 December 31, 2014 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Intellectual property licenses $ 3,550 $ (1,080 ) $ 2,470 $ 2,750 $ (880 ) $ 1,870 Intellectual property licenses have a weighted average remaining amortization period of 6.59 years as of September 30, 2015 . Amortization expense for these licenses was $71,000 and $64,000 for the three months ended September 30, 2015 and 2014 , respectively, and was $199,000 and $163,000 for the nine months ended September 30, 2015 and 2014 , respectively. Estimated future amortization expense for these licenses is as follows (in thousands): Fiscal Years Ending Future Amortization Expense Remaining in 2015 $ 94 2016 375 2017 375 2018 375 2019 375 Thereafter 876 Total $ 2,470

Loan Payable

Loan Payable	9 Months Ended
	Sep. 30, 2015
Debt Disclosure [Abstract]
Loan Payable	Loan Payable The Company had no outstanding long-term debt as of December 31, 2014 . As of September 30, 2015 , long-term debt consisted of the following (in thousands): September 30, 2015 Term Loan A 6.9% principal $ 10,000 Unamortized issuance premium (569 ) Total debt, net 9,431 Current portion of unamortized issuance premium 363 Long-term debt $ 9,794 Term Loans In January 2015, the Company entered into a Loan and Security Agreement, or the LSA, with General Electric Capital Corporation, or GECC, and certain other financial institutions party thereto, as lenders, pursuant to which the Company obtained (a) up to $35,000,000 in a series of term loans and (b) a revolving loan in the maximum amount of $5,000,000 . Under the terms of the LSA, the Company may, subject to certain conditions, borrow: • $10,000,000 on or before March 31, 2015, or Term Loan A; • an additional $10,000,000 , or Term Loan B, subject to the Company’s satisfaction of regulatory requirements necessary to CE Mark its ePlex system in Europe by a specified date; and • an additional $15,000,000 , or Term Loan C, and together with Term Loan A and Term Loan B, the Term Loans, subject to the Company’s satisfaction of FDA 510(k) market clearance for the sale of the Company’s ePlex system in the United States by a specified date. On March 27, 2015, the Company borrowed $10,000,000 pursuant to Term Loan A. The Term Loans will accrue interest at a rate equal to, ( a) the greater of 1.00% or the 3-year treasury rate in effect at the time of funding, plus (b) an applicable margin between 4.95% and 5.90% per annum. The Company is only required to make interest payments on amounts borrowed pursuant to the Term Loans from the applicable funding date until March 1, 2017 , or the Interest Only Period. Following the Interest Only Period, monthly installments of principal and interest under the Term Loans will be due until the original principal amount and applicable interest is fully repaid by January 12, 2019 , or the Maturity Date. Under the LSA, the Company is required to comply with certain affirmative and negative covenants, including, without limitation, delivering reports and notices relating to the Company’s financial condition and certain regulatory events and intellectual property matters, as well as limiting the creation of liens, the incurrence of indebtedness, and the making of certain investments, payments and acquisitions, other than as specifically permitted by the LSA. As of September 30, 2015 , the Company was in compliance with all covenants under the LSA. On September 30, 2015, the Company entered into an amendment to the LSA, pursuant to which the lenders internally reallocated certain funding commitments under the LSA between the lenders (but did not increase or reduce the aggregate amount of such commitments), and the parties adjusted certain of the Company’s administrative financial reporting obligations and the dates by which certain future funding requirements must be satisfied. Revolving Loan Pursuant to the LSA, the Company may borrow up to $5,000,000 under the revolving loan facility. Borrowings under the revolving loan will accrue interest at a rate equal to (a) the greater of 1.25% per annum or a base rate as determined by a three-month LIBOR-based formula, plus (b) an applicable margin between 2.95% and 3.95% based on certain criteria as set forth in the LSA. All principal and interest outstanding under the revolving loan is due and payable on the Maturity Date. Following the funding of Term Loan A, the Company is required to pay a commitment fee equal to 0.75% per annum of the amounts made available but unborrowed under the revolving loan. As of September 30, 2015 , the Company had not borrowed any amounts pursuant the revolving loan facility. Debt Issuance Costs As of September 30, 2015 and December 31, 2014, the Company had $569,000 and $90,000 , respectively, of unamortized debt issuance discount, which is offset against borrowings in long-term and short-term debt. For the three and nine months ended September 30, 2015 , amortization of debt issuance costs was $83,000 and $199,000 , respectively. Amortization of debt issuance costs was included in interest expense in the Company's unaudited condensed consolidated statements of comprehensive loss for the periods presented. Letter of Credit In September 2012, the Company provided a $758,000 letter of credit issued by Banc of California to the landlord of its executive office facility in Carlsbad, California. This letter of credit was secured with $758,000 of restricted cash as of September 30, 2015 .

Leases

Leases	9 Months Ended
	Sep. 30, 2015
Leases [Abstract]
Leases	Leases The Company has operating and capital lease agreements for its office, manufacturing, warehousing and laboratory space and for office equipment. Rent and operating expenses charged under these arrangements was $336,000 and $268,000 for the three months ended September 30, 2015 and 2014 , respectively, and $920,000 and $858,000 for the nine months ended September 30, 2015 and 2014 , respectively. Pursuant to the Company's lease agreements, a portion of the monthly rent has been deferred. The balance of deferred rent as of September 30, 2015 and December 31, 2014 was $1,488,000 and $1,601,000 , respectively. As of September 30, 2015 , the future minimum lease payments required over the next five years under the Company's lease arrangements are as follows (in thousands): Fiscal Years Ending Future Minimum Lease Payments Remaining in 2015 $ 275 2016 1,416 2017 1,615 2018 1,763 2019 1,891 Thereafter 4,694 Total $ 11,654

Fair Value of Financial Instrum

Fair Value of Financial Instruments	9 Months Ended
	Sep. 30, 2015
Fair Value Disclosures [Abstract]
Fair Value of Financial Instruments	Fair Value of Financial Instruments The carrying amounts of financial instruments, such as cash equivalents, restricted cash, accounts receivable, and accounts payable approximate the related fair values due to the short-term maturities of these instruments. The Company uses a fair value hierarchy with three levels of inputs, of which the first two are considered observable and the last unobservable, to measure fair value: • Level 1 — Quoted prices in active markets for identical assets or liabilities. • Level 2 — Inputs, other than Level 1, that are observable, either directly or indirectly, 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. The following table presents the financial instruments measured at fair value on a recurring basis and the valuation approach applied to each class of financial instruments as of September 30, 2015 and December 31, 2014 (in thousands): September 30, 2015 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Money market funds (cash equivalents) $ 21,206 $ — $ — $ 21,206 Corporate notes and bonds — 12,465 — 12,465 U.S. government and agency securities — 7,501 — 7,501 Total $ 21,206 $ 19,966 $ — $ 41,172 December 31, 2014 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Money market funds (cash equivalents) $ 31,412 $ — $ — $ 31,412 Corporate notes and bonds — 18,387 — 18,387 U.S. government and agency securities — 15,264 — 15,264 Total $ 31,412 $ 33,651 $ — $ 65,063 Level 2 marketable securities are priced using quoted market prices for similar instruments or nonbinding market prices that are corroborated by observable market data. The Company uses inputs such as actual trade data, benchmark yields, broker/dealer quotes, and other similar data, which are obtained from quoted market prices, independent pricing vendors, or other sources, to determine the ultimate fair value of these assets and liabilities. The Company uses such pricing data as the primary input to make its assessments and determinations as to the ultimate valuation of its investment portfolio and has not made, during the periods presented, any material adjustments to such inputs.

Marketable Securities

Marketable Securities	9 Months Ended
	Sep. 30, 2015
Investments, Debt and Equity Securities [Abstract]
Marketable Securities	Marketable Securities The following table summarizes the Company’s marketable securities as of September 30, 2015 and December 31, 2014 (in thousands): September 30, 2015 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Corporate notes and bonds $ 12,465 $ 1 $ (1 ) $ 12,465 U.S. government and agency securities 7,501 — — 7,501 Total $ 19,966 $ 1 $ (1 ) $ 19,966 December 31, 2014 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Corporate notes and bonds $ 18,408 $ 1 $ (22 ) $ 18,387 U.S. government and agency securities 15,267 2 (5 ) 15,264 Total $ 33,675 $ 3 $ (27 ) $ 33,651 The following table summarizes the maturities of the Company’s marketable securities as of September 30, 2015 (in thousands): Amortized Cost Estimated Fair Value Due in one year or less $ 19,966 $ 19,966 Due after one year through two years — — Total $ 19,966 $ 19,966

Income Taxes

Income Taxes	9 Months Ended
	Sep. 30, 2015
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes The Company uses an estimated annual effective tax rate, which is based on expected annual income, statutory tax rates and tax planning opportunities available in the various jurisdictions in which the Company operates, to determine its quarterly provision for income taxes. Certain significant or unusual items are separately recognized in the quarter in which they occur and can be a source of variability in the effective tax rates from quarter to quarter. As of September 30, 2015 , the Company recorded a full valuation allowance against all of its net deferred tax assets due to the uncertainty surrounding the Company’s ability to utilize these assets in the future. Due to the Company's losses, it only records a tax provision or benefit related to uncertain tax positions and related interest and minimum tax payments or refunds. The Company recorded income tax expense of $26,000 for the nine months ended September 30, 2015 and an income tax benefit of $591,000 for the nine months ended September 30, 2014 . During the third quarter of 2014, the Company reduced the amount of unrecognized tax benefits associated with uncertain tax positions by $610,000, including interest and penalties of $228,000, as a result of the expiration of applicable statute of limitations. The Company is subject to taxation in the United States and in various state and foreign jurisdictions. As of September 30, 2015 , the Company’s tax years after 2010 are subject to examination by the United Kingdom tax authorities related to legacy operations. Except for net operating losses generated in prior years carrying forward to the current year, as of September 30, 2015 , the Company is no longer subject to U.S. federal, state, or local examinations for years before 2010.

Organization and Basis of Pre17

Organization and Basis of Presentation (Policies)	9 Months Ended
	Sep. 30, 2015
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of Presentation	Basis of Presentation The accompanying financial statements have been prepared on a going-concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. The Company has incurred net losses from operations since its inception and had an accumulated deficit of $295,887,000 as of September 30, 2015 . Management expects operating losses to continue for the foreseeable future. The Company's ability to transition to profitable operations is dependent upon achieving a level of revenues adequate to support its cost structure through expanding its product offerings and consequently increasing its product revenues. Cash, cash equivalents and marketable securities as of September 30, 2015 were $54,178,000 . The Company has prepared cash flow forecasts which indicate, based on the Company’s current cash resources available, that the Company will have sufficient resources to fund its business for at least the next 12 months .
Segment Information	Segment Information The Company currently operates in one reportable business segment, which encompasses the development, manufacturing, sales and support of instruments and molecular tests based on its proprietary eSensor® detection technology. Substantially all of the Company’s operations and assets are in the United States of America.
Recent Accounting Pronouncements	Recent Accounting Pronouncements From time to time, new accounting pronouncements are issued by the Financial Accounting Standards Board, or the FASB, or other standard setting bodies that the Company adopts as of the specified effective date. The Company believes that the impact of recently issued standards that are not yet effective will not have a material impact on its financial condition or results of operations upon adoption.
Cash and Cash Equivalents	Cash, Cash Equivalents and Marketable Securities
Receivables	Receivables Accounts receivable consist of amounts due to the Company for sales to customers and are recorded net of an allowance for doubtful accounts. The allowance for doubtful accounts is determined based on an assessment of the collectability of specific customer accounts, the aging of accounts receivable, and a reserve for unknown items based upon the Company’s historical experience.
Restricted Cash	Restricted Cash Restricted cash represents amounts designated for uses other than current operations and included $758,000 as of September 30, 2015 ,
Use of Estimates	Use of Estimates The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and the notes thereto. The Company’s significant estimates included in the preparation of the financial statements are related to accounts receivable, inventories, property and equipment, intangible assets, employee-related compensation accruals, warranty liabilities, tax valuation accounts and stock-based compensation. Actual results could differ from those estimates.
Product Warranties	Product Warranties The Company generally offers a one -year warranty for its instruments sold to customers and typically up to a 60 day warranty for consumables. Factors that affect the Company’s warranty reserves include the number of units sold, historical and anticipated rates of warranty repairs and the cost per repair. The Company periodically assesses the adequacy of its warranty reserve and adjusts the amount as appropriate.
Intangible Assets	Intangible Assets Intangible assets are comprised of licenses or sublicenses to technology covered by patents owned by third parties, and are amortized on a straight-line basis over the expected useful lives of these assets, which is generally 10 years . Amortization of licenses typically begins upon the Company obtaining access to the licensed technology and is recorded in cost of revenues for licenses supporting commercialized products. The amortization of licenses to technology supporting products in development is recorded in research and development expenses.
Impairment of Long-Lived Assets	Impairment of Long-Lived Assets
Inventories	Inventories
Property and Equipment, net	Property and Equipment, net Property, equipment and leasehold improvements are recorded at cost and depreciated using the straight-line method over the estimated useful lives of the assets, which are identified below. Repair and maintenance costs are expensed as incurred. Machinery and laboratory equipment 3 - 5 years Instruments 4 - 5 years Office equipment 5 years Leasehold improvements over the shorter of the remaining life of the lease or the useful economic life of the asset
Income Taxes	Income Taxes

Organization and Basis of Pre18

Organization and Basis of Presentation (Tables)	9 Months Ended
	Sep. 30, 2015
Reclassifications [Line Items]
Reclassifications [Text Block]	Reclassifications Certain reclassifications of prior year financial information have been made to conform to the current year presentation. Costs previously reported as cost of revenue totaling $83,000 and $291,000 for the three and nine months ended September 30, 2014, respectively, have been reclassified as general and administrative expenses to better align those costs with the functional areas that benefited from those expenditures. The Company also reclassified $183,000 and $577,000 included in other income and expense for the three and nine months ended September 30, 2014, respectively, into interest income to better align the true nature of the expenses. In addition, the Company reclassified $1,658,000 included in other current liabilities to accounts payable at December 31, 2014 to better align the nature of this balance.
Estimated useful lives of property and equipment	Machinery and laboratory equipment 3 - 5 years Instruments 4 - 5 years Office equipment 5 years Leasehold improvements over the shorter of the remaining life of the lease or the useful economic life of the asset

Stock-Based Compensation (Table

Stock-Based Compensation (Tables)	9 Months Ended
	Sep. 30, 2015
Compensation Related Costs [Abstract]
Schedule of stock option activity	he following table summarizes stock option activity during the nine months ended September 30, 2015 : Number of Shares Weighted Average Exercise Price Outstanding as of December 31, 2014 2,479,435 $ 8.66 Granted 780,450 12.99 Exercised (179,409) 5.47 Cancelled (57,160) 11.39 Outstanding as of September 30, 2015 3,023,316 9.92 Vested and expected to vest as of September 30, 2015 2,748,858 9.67 Exercisable as of September 30, 2015 1,542,560 $ 7.62
Fair value assumptions of stock options	Nine Months Ended September 30, 2015 2014 Expected volatility 50 % 69 % Expected life (years) 6.08 6.08 Risk-free interest rate 1.69 % 1.82 % Expected dividend — % — % Weighted average fair value $6.35 $7.47
Summary of restricted stock award and restricted stock units activity	The Company’s restricted stock award and restricted stock unit activity for the nine months ended September 30, 2015 was as follows: Restricted Stock Awards Restricted Stock Units Number of Shares Weighted Average Grant Date Fair Value Number of Shares Weighted Average Grant Date Fair Value Unvested as of December 31, 2014 173,610 $ 4.56 741,992 $ 11.46 Granted — — 674,996 12.26 Vested (109,080) 4.38 (339,954) 11.61 Cancelled or expired (1,999) 5.11 (44,353) 12.47 Unvested as of September 30, 2015 62,531 $ 4.84 1,032,681 $ 11.89

Net Loss per Common Share (Tabl

Net Loss per Common Share (Tables)	9 Months Ended
	Sep. 30, 2015
Earnings Per Share [Abstract]
Computations of diluted net loss per share	The computations of diluted net loss per share for the three and nine month periods ended September 30, 2015 and 2014 did not include the effects of the following stock options and other equity awards which were outstanding as of the end of each period because the inclusion of these securities would have been anti-dilutive (in thousands): Three Months Ended September 30, Nine Months Ended 2015 2014 2015 2014 Options outstanding to purchase common stock 3,023 2,547 3,023 2,547 Other unvested equity awards 1,283 1,009 1,283 1,009 Total 4,306 3,556 4,306 3,556

Inventories (Tables)

Inventories (Tables)	9 Months Ended
	Sep. 30, 2015
Inventory Disclosure [Abstract]
Summary of inventory on hand	Inventory on hand as of September 30, 2015 and December 31, 2014 comprised the following (in thousands): September 30, 2015 December 31, 2014 Raw materials $ 593 $ 593 Work-in-process 1,130 660 Finished goods 991 884 Total inventories $ 2,714 $ 2,137

Property and Equipment, net (Ta

Property and Equipment, net (Tables)	9 Months Ended
	Sep. 30, 2015
Property, Plant and Equipment, Net [Abstract]
Property and equipment, net	Property and equipment as of September 30, 2015 and December 31, 2014 comprised the following (in thousands): September 30, 2015 December 31, 2014 Property and equipment — at cost: Machinery and laboratory equipment $ 7,603 $ 6,737 Instruments 8,084 6,611 Office equipment 1,565 1,441 Leasehold improvements 4,084 4,050 Total property and equipment — at cost 21,336 18,839 Less: accumulated depreciation (9,779 ) (7,787 ) Property and equipment, net $ 11,557 $ 11,052

Intangible Assets, net (Tables)

Intangible Assets, net (Tables)	9 Months Ended
	Sep. 30, 2015
Goodwill and Intangible Assets Disclosure [Abstract]
Summary of intangible assets	Intangible assets as of September 30, 2015 and December 31, 2014 comprised the following (in thousands): September 30, 2015 December 31, 2014 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Intellectual property licenses $ 3,550 $ (1,080 ) $ 2,470 $ 2,750 $ (880 ) $ 1,870
Summary of estimated future amortization expense	Estimated future amortization expense for these licenses is as follows (in thousands): Fiscal Years Ending Future Amortization Expense Remaining in 2015 $ 94 2016 375 2017 375 2018 375 2019 375 Thereafter 876 Total $ 2,470

Leases (Tables)

Leases (Tables)	9 Months Ended
	Sep. 30, 2015
Leases [Abstract]
Schedule of future minimum lease payments	As of September 30, 2015 , the future minimum lease payments required over the next five years under the Company's lease arrangements are as follows (in thousands): Fiscal Years Ending Future Minimum Lease Payments Remaining in 2015 $ 275 2016 1,416 2017 1,615 2018 1,763 2019 1,891 Thereafter 4,694 Total $ 11,654

Fair Value of Financial Instr25

Fair Value of Financial Instruments (Tables)	9 Months Ended
	Sep. 30, 2015
Fair Value Disclosures [Abstract]
Assets measured at fair value on a recurring basis	The following table presents the financial instruments measured at fair value on a recurring basis and the valuation approach applied to each class of financial instruments as of September 30, 2015 and December 31, 2014 (in thousands): September 30, 2015 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Money market funds (cash equivalents) $ 21,206 $ — $ — $ 21,206 Corporate notes and bonds — 12,465 — 12,465 U.S. government and agency securities — 7,501 — 7,501 Total $ 21,206 $ 19,966 $ — $ 41,172 December 31, 2014 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Money market funds (cash equivalents) $ 31,412 $ — $ — $ 31,412 Corporate notes and bonds — 18,387 — 18,387 U.S. government and agency securities — 15,264 — 15,264 Total $ 31,412 $ 33,651 $ — $ 65,063

Marketable Securities (Tables)

Marketable Securities (Tables)	9 Months Ended
	Sep. 30, 2015
Investments, Debt and Equity Securities [Abstract]
Company's available-for-sale investments	The following table summarizes the Company’s marketable securities as of September 30, 2015 and December 31, 2014 (in thousands): September 30, 2015 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Corporate notes and bonds $ 12,465 $ 1 $ (1 ) $ 12,465 U.S. government and agency securities 7,501 — — 7,501 Total $ 19,966 $ 1 $ (1 ) $ 19,966 December 31, 2014 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Corporate notes and bonds $ 18,408 $ 1 $ (22 ) $ 18,387 U.S. government and agency securities 15,267 2 (5 ) 15,264 Total $ 33,675 $ 3 $ (27 ) $ 33,651
Company's available-for-sale maturities investments	The following table summarizes the maturities of the Company’s marketable securities as of September 30, 2015 (in thousands): Amortized Cost Estimated Fair Value Due in one year or less $ 19,966 $ 19,966 Due after one year through two years — — Total $ 19,966 $ 19,966

Organization and Basis of Pre27

Organization and Basis of Presentation (Details)	9 Months Ended
	Sep. 30, 2015
Machinery and laboratory equipment [Member] | Minimum [Member]
Property, Plant and Equipment [Line Items]
Expected useful lives of these assets	3 years
Machinery and laboratory equipment [Member] | Maximum [Member]
Property, Plant and Equipment [Line Items]
Expected useful lives of these assets	5 years
Office equipment [Member]
Property, Plant and Equipment [Line Items]
Expected useful lives of these assets	5 years
Leasehold improvements [Member]
Property, Plant and Equipment [Line Items]
Leasehold improvements	over the shorter of the remaining life of the lease or the useful economic life of the asset

Organization and Basis of Pre28

Organization and Basis of Presentation (Details Textual)	9 Months Ended
	Sep. 30, 2015USD ($)Segment	Dec. 31, 2014USD ($)
Property, Plant and Equipment [Line Items]
Accumulated deficit	$ (295,887,000)	$ (262,472,000)
Cash and cash equivalents	$ 54,178,000
Sufficient capital to fund its operations	at least the next 12 months
Number of operating segment | Segment	1
Restricted cash	$ 758,000
Reclassifications [Text Block]	Reclassifications Certain reclassifications of prior year financial information have been made to conform to the current year presentation. Costs previously reported as cost of revenue totaling $83,000 and $291,000 for the three and nine months ended September 30, 2014, respectively, have been reclassified as general and administrative expenses to better align those costs with the functional areas that benefited from those expenditures. The Company also reclassified $183,000 and $577,000 included in other income and expense for the three and nine months ended September 30, 2014, respectively, into interest income to better align the true nature of the expenses. In addition, the Company reclassified $1,658,000 included in other current liabilities to accounts payable at December 31, 2014 to better align the nature of this balance.
Maximum [Member]
Property, Plant and Equipment [Line Items]
Expected useful lives of these assets	10 years
Systems [Member]
Property, Plant and Equipment [Line Items]
Products warranty period	1 year
Reagents [Member]
Property, Plant and Equipment [Line Items]
Products warranty period	60 days

Organization and Basis of Pre29

Organization and Basis of Presentation Reclassifications (Details) - USD ($)	3 Months Ended	9 Months Ended	12 Months Ended
	Sep. 30, 2014	Sep. 30, 2014	Dec. 31, 2014
COGS Reclass [Member]
Reclassifications [Line Items]
Prior Period Reclassification Adjustment	$ 83,000	$ 291,000
Other Income Reclass [Member]
Reclassifications [Line Items]
Prior Period Reclassification Adjustment	$ 183,000	$ 577,000
Accounts Payable Reclass [Member]
Reclassifications [Line Items]
Prior Period Reclassification Adjustment			$ 1,658,000

Stock-Based Compensation (Detai

Stock-Based Compensation (Details)	9 Months Ended
	Sep. 30, 2015$ / sharesshares
Schedule of stock option activity
Number of Share options Outstanding, Beginning Balance | shares	2,479,435
Number of Share options, Granted | shares	780,450
Number of Share options, Exercised | shares	(179,409)
Number of Share options, Cancelled | shares	(57,160)
Number of Share options Outstanding, Ending Balance | shares	3,023,316
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Exercisable, Number | shares	2,748,858
Number of Share options, Exercisable | shares	1,542,560
Weighted average exercise price Outstanding, Beginning Balance	$ 8.66
Weighted average exercise price, Granted	12.99
Weighted average exercise price, Exercised	5.47
Weighted average exercise price, Cancelled	11.39
Weighted average exercise price Outstanding, Ending Balance	9.92
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Exercisable, Weighted Average Exercise Price	9.67
Weighted average exercise price, Exercisable	$ 7.62

Stock-Based Compensation (Det31

Stock-Based Compensation (Details 1) - Options [Member] - $ / shares	9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2013
Fair value of stock options granted
Expected volatility (%)	50.00%	69.00%
Expected life (years)	6 years 29 days	6 years 29 days
Risk free rate (%)	1.69%	1.82%
Expected dividend yield (%)	0.00%	0.00%
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Exercise Price	$ 6.35		$ 7.47

Stock-Based Compensation (Det32

Stock-Based Compensation (Details 2)	9 Months Ended
	Sep. 30, 2015$ / sharesshares
Restricted Stock Awards [Member]
Summary of restricted stock award and restricted stock units activity
Non-vested, Number of shares, Beginning balance | shares	173,610
Number of shares, Granted | shares	0
Number of shares, Vested | shares	(109,080)
Number of shares, Cancelled or expired | shares	(1,999)
Non-vested, Number of shares, Ending balance | shares	62,531
Non-vested, Weighted average Grant Date Fair Value, Beginning balance	$ 4.56
Weighted Average Grant Date Fair Value, Granted	0
Weighted average Grant Date Fair Value, Vested	4.38
Weighted average Grant Date Fair Value, Cancelled or expired	5.11
Non-vested, Weighted average Grant Date Fair Value, Ending balance	$ 4.84
Restricted Stock Units [Member]
Summary of restricted stock award and restricted stock units activity
Non-vested, Number of shares, Beginning balance | shares	741,992
Number of shares, Granted | shares	674,996
Number of shares, Vested | shares	(339,954)
Number of shares, Cancelled or expired | shares	(44,353)
Non-vested, Number of shares, Ending balance | shares	1,032,681
Non-vested, Weighted average Grant Date Fair Value, Beginning balance	$ 11.46
Weighted Average Grant Date Fair Value, Granted	12.26
Weighted average Grant Date Fair Value, Vested	11.61
Weighted average Grant Date Fair Value, Cancelled or expired	12.47
Non-vested, Weighted average Grant Date Fair Value, Ending balance	$ 11.89

Stock-Based Compensation (Det33

Stock-Based Compensation (Details Textual) - USD ($)	1 Months Ended	3 Months Ended	9 Months Ended		12 Months Ended
	Mar. 31, 2013	Sep. 30, 2015	Sep. 30, 2015	Sep. 30, 2014	Dec. 31, 2013	Dec. 31, 2014	Sep. 30, 2013
Share-based compensation (Textual) [Abstract]
Granted Stock option			780,450
Stock compensation expense			$ 7,347,000	$ 4,478,000
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number		3,023,316	3,023,316			2,479,435
Weighted average exercise price of stock option			$ 12.99
Aggregate intrinsic value of options exercisable		$ 2,440,000	$ 2,440,000
Remaining weighted average contractual term			5 years 10 months 20 days
Employee Stock Purchase Plan [Abstract]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Intrinsic Value		$ 2,465,000	$ 2,465,000
Weighted Average Remaining Contractual Life, Outstanding (in years)			7 years 3 months 7 days		6 years 8 months 27 days
Options [Member]
Share-based compensation (Textual) [Abstract]
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Risk Free Interest Rate			1.69%	1.82%
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Volatility Rate			50.00%	69.00%
Employee Stock Purchase Plan [Abstract]
Expected dividend yield			0.00%	0.00%
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Exercise Price		$ 6.35	$ 6.35				$ 7.47
Restricted Stock Awards [Member]
Share-based compensation (Textual) [Abstract]
Total fair value of restricted stock vested			$ 1,222,000	$ 2,978,000
Stock compensation expense			4,352,000	2,453,000
Unrecognized compensation cost		$ 255,000	$ 255,000
Weighted average-period, cost is expected to be recognized		7 months 10 days
Number of shares, Granted			0
Weighted average fair value of options granted			$ 0
Market Share Unit [Member]
Share-based compensation (Textual) [Abstract]
Unrecognized compensation cost		$ 1,777,000	$ 1,777,000
Weighted average-period, cost is expected to be recognized			2 years 3 months
Number of shares, Granted			154,929
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Risk Free Interest Rate			1.10%
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Volatility Rate			45.00%
Restricted Stock Units [Member]
Share-based compensation (Textual) [Abstract]
Total fair value of restricted stock vested			$ 3,885,000	$ 1,791,000
Unrecognized compensation cost		10,785,000	$ 10,785,000
Weighted average-period, cost is expected to be recognized			2 years 9 months 18 days
Number of shares, Granted			674,996
Weighted average fair value of options granted			$ 12.26
Performance Shares [Member]
Share-based compensation (Textual) [Abstract]
Stock compensation expense			$ 43,200
Unrecognized compensation cost		$ 399,000	$ 399,000
Weighted average fair value of options granted			$ 12.30
Options [Member]
Employee Stock Purchase Plan [Abstract]
Maximum offering period			27 months
2010 Plan [Member]
Share-based compensation (Textual) [Abstract]
Future grant of awards under the Plan		186,083	186,083
2010 Plan [Member] | Minimum [Member]
Share-based compensation (Textual) [Abstract]
Options vested			1 year
2010 Plan [Member] | Maximum [Member]
Share-based compensation (Textual) [Abstract]
Options vested			4 years
2010 Plan [Member] | Options [Member]
Share-based compensation (Textual) [Abstract]
Expiration period			10 years
2013 Employee Stock Purchase Plan [Member] | Options [Member]
Employee Stock Purchase Plan [Abstract]
Common stock reserved for future issuance		473,301	473,301				650,000
Purchase price as a percent of the fair market value of the common stock	85.00%
Maximum offering period	6 months
Maximum employee investment in ESPP as a percentage of gross compensation	10.00%
Maximum shares of common stock that can be puchased by each employee	1,500

Net Loss per Common Share (Deta

Net Loss per Common Share (Details) - shares shares in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Computations of diluted net loss per share
Antidilutive securities excluded from calculation	4,306	3,556	4,306	3,556
Options [Member]
Computations of diluted net loss per share
Antidilutive securities excluded from calculation	3,023	2,547	3,023	2,547
Unvested restricted stock [Member]
Computations of diluted net loss per share
Antidilutive securities excluded from calculation	1,283	1,009	1,283	1,009

Inventories (Details)

Inventories (Details) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Summary of inventory on hand
Raw materials	$ 593	$ 593
Work-in-process	1,130	660
Finished goods	991	884
Total	$ 2,714	$ 2,137

Property and Equipment, net (De

Property and Equipment, net (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014	Dec. 31, 2014
Property and equipment-at cost:
Total property and equipment-at cost	$ 21,336		$ 21,336		$ 18,839
Less accumulated depreciation	(9,779)		(9,779)		(7,787)
Property and equipment, net	11,557		11,557		11,052
Depreciation expense	797	$ 638	2,301	$ 1,707
Plant and machinery [Member]
Property and equipment-at cost:
Total property and equipment-at cost	7,603		7,603		6,737
Instruments [Member]
Property and equipment-at cost:
Total property and equipment-at cost	8,084		8,084		6,611
Office equipment [Member]
Property and equipment-at cost:
Total property and equipment-at cost	1,565		1,565		1,441
Leasehold improvements [Member]
Property and equipment-at cost:
Total property and equipment-at cost	$ 4,084		$ 4,084		$ 4,050

Intangible Assets, net (Details

Intangible Assets, net (Details) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Summary of intangible assets
Net carrying amount	$ 2,470
Licensed intellectual property [Member]
Summary of intangible assets
Gross carrying amount	3,550	$ 2,750
Accumulated amortization	(1,080)	(880)
Net carrying amount	$ 2,470	$ 1,870

Intangible Assets, net (Detai38

Intangible Assets, net (Details 1) $ in Thousands	Sep. 30, 2015USD ($)
Summary of estimated future amortization expense
Remaining in 2015	$ 94
2,015	375
2,016	375
2,017	375
2,018	375
Thereafter	876
Net carrying amount	$ 2,470

Intangible Assets, net (Detai39

Intangible Assets, net (Details Textual) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Indefinite-lived Intangible Assets [Line Items]
Amortization expense for intangible assets	$ 71,000	$ 64,000	$ 199,000	$ 163,000
Licensed intellectual property [Member]
Indefinite-lived Intangible Assets [Line Items]
Weighted average amortization period			6 years 7 months 3 days

Loan Payable (Details Textual)

Loan Payable (Details Textual) - USD ($)	3 Months Ended	9 Months Ended
	Sep. 30, 2015	Sep. 30, 2015	Sep. 30, 2014	Dec. 31, 2014
Line of Credit Facility [Line Items]
Line of Credit Facility, Maximum Borrowing Capacity	$ 5,000,000	$ 5,000,000
Line of Credit Facility, Interest Rate Description		the greater of 1.25% per annum or a base rate as determined by a three-month LIBOR-based formula, plus (b) an applicable margin between 2.95% and 3.95%
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage		0.75%
Unamortized Loan Commitment and Origination Fees and Unamortized Discounts or Premiums	569,000	$ 569,000		$ 90,000
Amortization of Other Deferred Charges	83,000	199,000
Loan Payable (Textual) [Abstract]
Restricted cash	758,000	758,000
Term Loans [Member]
Loan Payable (Textual) [Abstract]
Loans Payable	35,000,000	35,000,000
Term Loan C [Member]
Loan Payable (Textual) [Abstract]
Loans Payable	15,000,000	15,000,000
Term Loan A [Member]
Loan Payable (Textual) [Abstract]
Loans Payable	10,000,000	10,000,000
Term Loan B [Member]
Loan Payable (Textual) [Abstract]
Loans Payable	10,000,000	10,000,000
New Letter of Credit [Member] | Letter of Credit [Member]
Loan Payable (Textual) [Abstract]
Increased amount of line of credit availability			$ 758,000
Banc of California [Member] | Previous Letter of Credit [Member] | Letter of Credit [Member]
Loan Payable (Textual) [Abstract]
Restricted cash	$ 758,000	$ 758,000

Loan Payable Loan Payable (Deta

Loan Payable Loan Payable (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2015	Dec. 31, 2014
Debt Instrument [Line Items]
Debt Instrument, Interest Rate Terms	a) the greater of 1.00% or the 3-year treasury rate in effect at the time of funding, plus (b) an applicable margin between 4.95% and 5.90% per annum.
Investment, Interest Only Flag	Mar. 1, 2017
Debt Instrument, Maturity Date	Jan. 12, 2019
Debt Instrument, Unamortized Discount (Premium), Net	$ (569)
Long-term Debt, Current Maturities	363
Long-term Debt, Excluding Current Maturities	9,794	$ 0
Long-term Debt	9,431
Term Loans [Member]
Debt Instrument [Line Items]
Loans Payable	35,000
Term Loan A [Member]
Debt Instrument [Line Items]
Loans Payable	10,000
Term Loan B [Member]
Debt Instrument [Line Items]
Loans Payable	10,000
Term Loan C [Member]
Debt Instrument [Line Items]
Loans Payable	$ 15,000

Leases (Details)

Leases (Details) $ in Thousands	Sep. 30, 2015USD ($)
Schedule of future minimum lease payments
Remaining in 2015	$ 275
2,015	1,416
2,016	1,615
2,017	1,763
2,018	1,891
Thereafter	4,694
Total future minimum payments	$ 11,654

Leases (Details Textual)

Leases (Details Textual) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014	Dec. 31, 2014
Leases [Abstract]
Rent and operating expenses	$ 336	$ 268	$ 920	$ 858
Operating lease, deferred expense	$ 1,488		$ 1,488		$ 1,601

Fair Value of Financial Instr44

Fair Value of Financial Instruments (Details) - Fair Value, Measurements, Recurring [Member] - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Assets:
Assets, fair value	$ 41,172	$ 65,063
Quotes Prices in Active Markets for Identical Assets (Level 1) [Member]
Assets:
Assets, fair value	21,206	31,412
Significant Other Observable Inputs (Level 2) [Member]
Assets:
Assets, fair value	19,966	33,651
Significant Unobservable Inputs (Level 3) [Member]
Assets:
Assets, fair value	0	0
Money market funds (cash equivalents) [Member]
Assets:
Assets, fair value	21,206	31,412
Money market funds (cash equivalents) [Member] | Quotes Prices in Active Markets for Identical Assets (Level 1) [Member]
Assets:
Assets, fair value	21,206	31,412
Money market funds (cash equivalents) [Member] | Significant Other Observable Inputs (Level 2) [Member]
Assets:
Assets, fair value	0	0
Money market funds (cash equivalents) [Member] | Significant Unobservable Inputs (Level 3) [Member]
Assets:
Assets, fair value	0	0
Corporate notes and bonds [Member]
Assets:
Assets, fair value	12,465	18,387
Corporate notes and bonds [Member] | Quotes Prices in Active Markets for Identical Assets (Level 1) [Member]
Assets:
Assets, fair value	0	0
Corporate notes and bonds [Member] | Significant Other Observable Inputs (Level 2) [Member]
Assets:
Assets, fair value	12,465	18,387
Corporate notes and bonds [Member] | Significant Unobservable Inputs (Level 3) [Member]
Assets:
Assets, fair value	0	0
U.S. government and agency securities [Member]
Assets:
Assets, fair value	7,501	15,264
U.S. government and agency securities [Member] | Quotes Prices in Active Markets for Identical Assets (Level 1) [Member]
Assets:
Assets, fair value	0	0
U.S. government and agency securities [Member] | Significant Other Observable Inputs (Level 2) [Member]
Assets:
Assets, fair value	7,501	15,264
U.S. government and agency securities [Member] | Significant Unobservable Inputs (Level 3) [Member]
Assets:
Assets, fair value	$ 0	$ 0

Marketable Securities Details)

Marketable Securities Details) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Company's available-for-sales investments
Amortized Cost	$ 19,966	$ 33,675
Gross Unrealized Gains	1	3
Gross Unrealized Losses	(1)	(27)
Fair Value	19,966	33,651
Corporate notes and bonds [Member]
Company's available-for-sales investments
Amortized Cost	12,465	18,408
Gross Unrealized Gains	1	1
Gross Unrealized Losses	(1)	(22)
Fair Value	12,465	18,387
U.S. government and agency securities [Member]
Company's available-for-sales investments
Amortized Cost	7,501	15,267
Gross Unrealized Gains	0	2
Gross Unrealized Losses	0	(5)
Fair Value	$ 7,501	$ 15,264

Investments (Details 1)

Investments (Details 1) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Company's available-for-sales investments
Less than 1 year, Amortized cost	$ 19,966
Due in 1 to 2 years, Amortized cost	0
Amortized Cost	19,966	$ 33,675
Less than 1 year, Fair value	19,966
Due in 1 to 2 years, Fair value	0
Fair Value	$ 19,966	$ 33,651

Income Taxes (Details)

Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014	Dec. 31, 2014
Income Tax Disclosure [Abstract]
Income tax expense (benefit)	$ (4)	$ 616	$ (26)	$ 591
Total amount of unrecognized tax benefits	$ 382		$ 382		$ 382