GenMark Diagnostics (GNMK) 10-Q 3 Nov 16 2016 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2016	Oct. 31, 2016
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, 2016
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	Q3
Amendment Flag	false
Entity Common Stock, Shares Outstanding		46,404,310

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets (Unaudited) - USD ($)	Sep. 30, 2016	Dec. 31, 2015
Current assets
Cash and cash equivalents	$ 19,293,000	$ 35,385,000
Marketable Securities	34,860,000	10,080,000
Accounts receivable, net of allowances of $2,740 and $2,727, respectively	5,115,000	6,847,000
Inventories	4,216,000	3,054,000
Prepaid expenses and other current assets	1,192,000	591,000
Total current assets	64,676,000	55,957,000
Property and equipment, net	17,335,000	11,396,000
Intangible assets, net	2,795,000	2,376,000
Restricted cash	758,000	758,000
Other long-term assets	175,000	180,000
Total assets	85,739,000	70,667,000
Current liabilities
Accounts payable	5,392,000	4,376,000
Accrued compensation	5,227,000	3,861,000
Long-term Debt, Current Maturities	5,403,000	(373,000)
Other current liabilities	3,804,000	2,725,000
Liabilities, Current	19,826,000	10,589,000
Long-term liabilities
Deferred rent	3,781,000	1,257,000
Long-term Debt, Excluding Current Maturities	14,302,000	9,890,000
Other non-current liabilities	202,000	334,000
Total liabilities	38,111,000	22,070,000
Stockholders’ equity
Preferred stock, $0.0001 par value; 5,000 authorized, none issued	0	0
Common stock, $0.0001 par value; 100,000 authorized; 46,402 and 42,551 shares issued and outstanding as of September 30, 2016 and December 31, 2015, respectively	5,000	4,000
Additional paid-in capital	390,194,000	353,233,000
Accumulated deficit	(342,593,000)	(304,669,000)
Accumulated other comprehensive income	22,000	29,000
Total stockholders’ equity	47,628,000	48,597,000
Total liabilities and stockholders’ equity	$ 85,739,000	$ 70,667,000

Condensed Consolidated Balance3

Condensed Consolidated Balance Sheets (Parenthetical) (Unaudited) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Statement of Financial Position [Abstract]
Accounts receivable - net of allowance	$ 2,740	$ 2,727
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	46,402,000	42,551,000
Common stock, outstanding	46,402,000	42,551,000

Condensed Consolidated Statemen

Condensed Consolidated Statements of Comprehensive Loss (Unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Income Statement [Abstract]
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, before Tax	$ (4)	$ (1)	$ 9	$ 8
Revenue
Product revenue	10,727	8,382	34,111	25,944
License and other revenue	86	90	278	281
Total revenue	10,813	8,472	34,389	26,225
Cost of revenue	4,362	3,352	13,457	10,630
Gross profit	6,451	5,120	20,932	15,595
Operating expenses
Sales and marketing	3,223	3,587	10,232	10,984
General and administrative	3,227	3,061	10,522	10,393
Research and development	11,628	9,589	37,100	27,292
Total operating expenses	18,078	16,237	57,854	48,669
Loss from operations	(11,627)	(11,117)	(36,922)	(33,074)
Other income (expense)
Interest income	43	30	98	99
Interest expense	(476)	(289)	(1,061)	(607)
Other income (expense)	16	(14)	7	193
Total other income (expense)	(417)	(273)	(956)	(315)
Loss before provision for income taxes	(12,044)	(11,390)	(37,878)	(33,389)
Income tax expense	14	4	45	26
Net loss	$ (12,058)	$ (11,394)	$ (37,923)	$ (33,415)
Net loss per share, basic and diluted	$ (0.27)	$ (0.27)	$ (0.88)	$ (0.79)
Weighted average number of shares outstanding, basic and diluted	44,377	42,312	43,308	42,061
Other comprehensive loss
Net loss	$ (12,058)	$ (11,394)	$ (37,923)	$ (33,415)
Net unrealized gains (losses) on marketable securities, net of tax	20	(4)	(2)	(20)
Comprehensive loss	$ (12,042)	$ (11,399)	$ (37,916)	$ (33,427)

Condensed Consolidated Stateme5

Condensed Consolidated Statement of Cash Flows (Unaudited) - USD ($)	9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015
Operating activities
Net loss	$ (37,923,000)	$ (33,415,000)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	2,739,000	2,500,000
Amortization of premiums on investments	61,000	157,000
Amortization of Debt Issuance Costs and Discounts	277,000	199,000
Gain (Loss) on Sale of Other Investments	(9,000)	(223,000)
Stock-based compensation	6,788,000	7,347,000
Provision for bad debt	13,000	0
Non-cash inventory adjustments	120,000	567,000
Other Operating Activities, Cash Flow Statement	20,000	9,000
Changes in operating assets and liabilities:
Accounts receivable	(1,719,000)	(557,000)
Inventories	1,048,000	980,000
Prepaid expenses and other assets	596,000	320,000
Accounts payable	916,000	(358,000)
Accrued compensation	1,731,000	575,000
Other liabilities	33,000	(295,000)
Net cash used in operating activities	(25,159,000)	(23,680,000)
Investing activities
Payments for intellectual property licenses	(800,000)	(550,000)
Purchases of property and equipment	(5,105,000)	(2,868,000)
Purchases of available-for-sale securities	(32,895,000)	(14,797,000)
Proceeds from sales of marketable securities	9,000	223,000
Maturities of marketable securities	8,050,000	28,350,000
Net cash provided by (used in) investing activities	(30,741,000)	10,358,000
Financing activities
Proceeds from issuance of common stock	30,448,000	427,000
Costs incurred in conjunction with stock issuance	(1,091,000)	0
Principal repayment of borrowings	(28,000)	(15,000)
Proceeds from borrowings	10,000,000	10,000,000
Payments of Debt Issuance Costs	(30,000)	(718,000)
Proceeds from stock option exercises	(507,000)	(986,000)
Net cash provided by financing activities	39,806,000	10,680,000
Effect of Exchange Rate on Cash and Cash Equivalents	2,000	(1,000)
Net decrease in cash and cash equivalents	(16,092,000)	(2,643,000)
Cash and cash equivalents at beginning of period	35,385,000
Cash and cash equivalents at end of period	19,293,000
Non-cash investing and financing activities
Transfer of instruments from property and equipment to inventory	234,000	165,000
Property and equipment costs included in accounts payable	1,040,000	248,000
Intellectual property acquisitions included in other current liabilities	700,000	800,000
Supplemental cash flow disclosures
Cash paid for income taxes, net	38,000	9,000
Cash received for interest	58,000	256,000
Cash paid for interest	$ 761,000	$ 607,000

Organization and Basis of Prese

Organization and Basis of Presentation	9 Months Ended
	Sep. 30, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Organization and Basis of Presentation	asis of Presentation The Company has incurred net losses from operations since its inception and had an accumulated deficit of $342,593,000 as of September 30, 2016 . 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, 2016 were $54,153,000 . 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, 2015 filed with the SEC on February 23, 2016. 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. Principles of Consolidation The consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. 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. 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 March 2016, the FASB issued Accounting Standards Update, or ASU, 2016-09, Improvements to Employee Share-Based Payment Accounting. This guidance identifies areas for simplification involving several aspects of accounting for share-based payment transactions, including the income tax consequences, classification on the statement of cash flows, and an option to recognize gross stock compensation expense with actual forfeitures recognized as they occur. The new standard requires the immediate recognition of all excess tax benefits and deficiencies in the income statement, and requires classification of excess tax benefits as an operating activity as opposed to a financing activity in the statements of cash flows. This guidance is effective for the Company beginning January 1, 2017, with early adoption permitted. The Company is currently evaluating the impact of ASU 2016-09 on its consolidated financial statements and disclosures. In February 2016, the FASB issued ASU 2016-02, Leases. This ASU outlines a comprehensive lease accounting model and supersedes the current lease guidance. The new guidance requires lessees to recognize lease liabilities and corresponding right-of-use assets for all leases with lease terms of greater than 12 months. It also changes the definition of a lease and expands the disclosure requirements of lease arrangements. The new guidance must be adopted using the modified retrospective approach and will be effective for the Company starting in the first quarter of fiscal 2019, with early adoption permitted. The Company is evaluating the effects adoption will have on its consolidated financial statements, but does not anticipate a material impact on its financial statements. In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers , an updated standard on revenue recognition. ASU 2014-09 provides enhancements to the quality and consistency of how revenue is reported by companies while also improving comparability in the financial statements of companies reporting using International Financial Reporting Standards or GAAP. The main purpose of the new standard is for companies to recognize revenue to depict the transfer of goods or services to customers in amounts that reflect the consideration to which a company expects to be entitled in exchange for those goods or services. The new standard also will result in enhanced disclosures of revenue, provide guidance for transactions that were not previously addressed comprehensively, and improve guidance for multiple-element arrangements. In August 2015, the FASB issued ASU No. 2015-14, Revenue from Contracts with Customers: Deferral of the Effective Date, which deferred the effective date of the new revenue standard for periods beginning after December 15, 2016 to December l5, 2017, with early adoption permitted but not earlier than the original effective date. Accordingly, the updated standard is effective for the Company in the first quarter of fiscal 2018. The Company is evaluating the impact of implementation and transition approach of this standard on its financial statements, but does not anticipate a material impact on its financial statements. Cash, Cash Equivalents and Marketable Securities Cash and cash equivalents consist of cash on deposit with banks, money market instruments and other instruments 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, 2016 , 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 bases 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, 2016
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 under the Company's 2010 Equity Incentive Plan, or the 2010 Plan, and employee stock purchases under the Company's 2013 Employee Stock Purchase Plan, or the ESPP. Employee participation in the 2010 Plan is at the discretion of the Compensation Committee of the Board of Directors of the Company. Each equity award grant reduces the number of shares available for grant under the 2010 Plan. Stock-based compensation expense is based on the fair value of the applicable award utilizing various assumptions regarding the underlying attributes of the applicable award. The estimated fair value, 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. Stock-based compensation expense is recorded in cost of sales, sales and marketing, research and development, and/or general and administrative expenses based on the employee's respective function. During the nine months ended September 30, 2016 and 2015 , aggregate stock-based compensation expense was $6,788,000 and $7,347,000 , respectively. 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. 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 common 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. The following table summarizes stock option activity during the nine months ended September 30, 2016 : Number of Shares Weighted Average Exercise Price Outstanding at December 31, 2015 3,004,011 $ 9.74 Granted 5,000 4.70 Exercised (75,895) 6.68 Cancelled (322,530) 11.91 Outstanding at September 30, 2016 2,610,586 9.55 Vested and expected to vest at September 30, 2016 2,502,833 9.45 Exercisable at September 30, 2016 1,804,200 $ 8.49 Options that were exercisable as of September 30, 2016 had a remaining weighted average contractual term of 5.65 years, and an aggregate intrinsic value of $6,403,000 . As of September 30, 2016 , there were 2,610,586 stock options outstanding, which had a remaining weighted average contractual term of 6.40 years and an aggregate intrinsic value of $6,968,000 . 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, 2016 : Nine Months Ended September 30, 2016 2015 Expected volatility 51 % 50 % Expected life (years) 5.90 6.08 Risk-free interest rate 1.35 % 1.69 % Expected dividend — % — % Weighted average fair value $2.27 $6.35 Restricted stock awards or units may be granted in connection with the hiring or retention of personnel and are subject to certain conditions. In March 2013, the Company transitioned to granting restricted stock units under the 2010 Plan in lieu of granting restricted stock awards. 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. The Company’s restricted stock award and restricted stock unit activity for the nine months ended September 30, 2016 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 at December 31, 2015 32,837 $ 5.00 934,977 $ 12.66 Granted — — 1,428,773 5.24 Vested (31,589) 4.80 (383,466) 11.80 Cancelled (312) 11.19 (289,600) 7.58 Unvested at September 30, 2016 936 $ 9.40 1,690,684 $ 7.01 As of September 30, 2016 , there was $ 4,000 of unrecognized compensation expense related to unvested restricted stock awards, which is expected to be recognized over a weighted average period of 0.17 years. The total fair value of restricted stock awards that vested during the nine months ended September 30, 2016 and 2015 was $152,000 and $1,222,000 , respectively. As of September 30, 2016 , there was $8,330,000 of unrecognized compensation expense related to unvested restricted stock units, which is expected to be recognized over a weighted average period of 2.91 years. The total fair value of restricted stock units that vested during the nine months ended September 30, 2016 and 2015 was $ 4,526,000 and $3,885,000 , respectively. The Company issued market-based stock units in February 2015 and February 2016, which may result in the recipient receiving shares of stock equal to 200% of the target number of units granted. The vesting and issuance of Company stock depends on the Company's stock performance as compared to the NASDAQ Composite Index over a three-year period following the grant. As of September 30, 2016 , there was $963,000 of unrecognized stock-based compensation expense related to these awards, which is expected to be recognized over a weighted average period of 1.91 years. The Company’s market-based stock unit activity for the nine months ended September 30, 2016 was as follows: Market-Based Stock Units Number of Shares Weighted Average Grant Date Fair Value Unvested at December 31, 2015 136,730 $ 18.07 Target units granted 263,351 4.94 Vested — — Cancelled (56,269) 9.81 Unvested at September 30, 2016 343,812 $ 9.36 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 achieving the market condition based on simulated future stock prices, with the following assumptions for the nine months ended September 30, 2016 : Nine Months Ended September 30, 2016 2015 Expected volatility 49 % 45 % Risk-free interest rate 0.90 % 1.10 % Expected dividend — % — % Weighted average fair value $ 4.94 $ 18.07 The Company issued 43,200 performance-based restricted stock units in March 2014 with a grant date fair value of $12.30 per share. 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, 2016 , there was $266,000 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, 2016 , there were 335,807 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, 2016 .

Net Loss per Common Share

Net Loss per Common Share	9 Months Ended
	Sep. 30, 2016
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, 2016 and 2015 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 September 30, 2016 2015 2016 2015 Options outstanding to purchase common stock 2,611 3,023 2,611 3,023 Other unvested equity awards 2,057 1,283 2,057 1,283 Total 4,668 4,306 4,668 4,306

Inventories

Inventories	9 Months Ended
	Sep. 30, 2016
Inventory Disclosure [Abstract]
Inventories	Inventories Inventory on hand as of September 30, 2016 and December 31, 2015 comprised the following (in thousands): September 30, 2016 December 31, 2015 Raw materials $ 1,012 $ 1,147 Work-in-process 1,049 693 Finished goods 2,155 1,214 Total inventories $ 4,216 $ 3,054

Property and Equipment, net

Property and Equipment, net	9 Months Ended
	Sep. 30, 2016
Property, Plant and Equipment, Net [Abstract]
Property and Equipment, net	Property and Equipment, net Property and equipment as of September 30, 2016 and December 31, 2015 comprised the following (in thousands): September 30, 2016 December 31, 2015 Property and equipment — at cost: Machinery and laboratory equipment $ 9,434 $ 7,728 Instruments 9,334 8,195 Office equipment 1,695 1,526 Leasehold improvements 9,577 4,311 Total property and equipment — at cost 30,040 21,760 Less: accumulated depreciation (12,705 ) (10,364 ) Property and equipment, net $ 17,335 $ 11,396 Depreciation expense was $854,000 and $797,000 for the three months ended September 30, 2016 and 2015 , respectively and was $2,458,000 and $2,301,000 for the nine months ended September 30, 2016 and 2015 , respectively.

Intangible Assets, net

Intangible Assets, net	9 Months Ended
	Sep. 30, 2016
Goodwill and Intangible Assets Disclosure [Abstract]
Intangible Assets, net	Intangible Assets, net Intangible assets as of September 30, 2016 and December 31, 2015 comprised the following (in thousands): September 30, 2016 December 31, 2015 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Intellectual property licenses $ 4,250 $ (1,455 ) $ 2,795 $ 3,550 $ (1,174 ) $ 2,376 Intellectual property licenses have a weighted average remaining amortization period of 5.63 years as of September 30, 2016 . Amortization expense for these licenses was $94,000 and $71,000 for the three months ended September 30, 2016 and 2015 , respectively, and was $281,000 and $199,000 for the nine months ended September 30, 2016 and 2015 , respectively. Estimated future amortization expense for these licenses is as follows (in thousands): Fiscal Years Ending Future Amortization Expense Remaining in 2016 $ 124 2017 497 2018 497 2019 497 2020 497 Thereafter 683 Total $ 2,795

Loan Payable

Loan Payable	9 Months Ended
	Sep. 30, 2016
Debt Disclosure [Abstract]
Loan Payable	As of September 30, 2016 and December 31, 2015 , long-term debt consisted of the following (in thousands): September 30, 2016 December 31, 2015 Term Loans Term Loan A - 6.9% principal $ 10,000 $ 10,000 Term Loan B - 6.9% principal 10,000 — Unamortized issuance premium (295 ) (483 ) Total debt, net 19,705 9,517 Current portion of long-term debt (5,403 ) 373 Long-term debt $ 14,302 $ 9,890 Term Loans In January 2015, the Company entered into a Loan and Security Agreement, or the LSA, with Solar Capital Partners (as successor-in-interest to General Electric Capital Corporation), 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. The Company borrowed $10,000,000 on each of March 27, 2015 and June 10, 2016 pursuant to Term Loan A and Term Loan B, respectively. The Term Loans 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. In July 2016, the Company entered into an amendment to the LSA pursuant to which the lenders reallocated certain funding commitments under the LSA between the lenders, and the parties extended the date by which the future funding requirements in respect of Term Loan C must be satisfied. 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, 2016 , the Company was in compliance with all covenants under the LSA. Revolving Loan Pursuant to the LSA, as amended, the Company may borrow up to $5,000,000 under a 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. 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, 2016 , the Company had not borrowed any amounts pursuant the revolving loan facility. Debt Issuance Costs As of September 30, 2016 and December 31, 2015 , the Company had $295,000 and $483,000 , respectively, of unamortized debt issuance discount, which is offset against borrowings in long-term and short-term debt. Amortization of debt issuance costs was $108,000 and $83,000 for the three months ended September 30, 2016 and 2015, respectively, and $277,000 and $199,000 for the nine months ended September 30, 2016 and 2015, respectively. Amortization of debt issuance costs is 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, 2016 .

Leases

Leases	9 Months Ended
	Sep. 30, 2016
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 $476,000 and $336,000 for the three months ended September 30, 2016 and 2015 , respectively, and $1,460,000 and $920,000 for the nine months ended September 30, 2016 and 2015 , 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, 2016 and December 31, 2015 was $4,189,000 and $1,445,000 , respectively. As of September 30, 2016 , 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 2016 $ 398 2017 1,644 2018 1,792 2019 1,913 2020 1,972 Thereafter 2,738 Total $ 10,457

Fair Value of Financial Instrum

Fair Value of Financial Instruments	9 Months Ended
	Sep. 30, 2016
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, 2016 and December 31, 2015 (in thousands): September 30, 2016 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) $ 5,010 $ — $ — $ 5,010 Corporate notes and bonds (cash equivalents) — 1,200 — 1,200 Corporate notes and bonds — 23,364 — 23,364 U.S. government and agency securities — 9,015 — 9,015 Commercial paper — 2,481 — 2,481 Total $ 5,010 $ 36,060 $ — $ 41,070 December 31, 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) $ 22,128 $ — $ — $ 22,128 Corporate notes and bonds — 8,483 — 8,483 U.S. government and agency securities — 799 — 799 Commercial paper — 798 — 798 Total $ 22,128 $ 10,080 $ — $ 32,208 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, 2016
Investments, Debt and Equity Securities [Abstract]
Marketable Securities	The following table summarizes the Company’s marketable securities as of September 30, 2016 and December 31, 2015 (in thousands): September 30, 2016 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Corporate notes and bonds $ 24,580 $ — $ (16 ) $ 24,564 U.S. government and agency securities 9,016 1 (2 ) 9,015 Commercial paper 2,481 — — 2,481 Total $ 36,077 $ 1 $ (18 ) $ 36,060 December 31, 2015 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Corporate notes and bonds $ 8,495 $ 1 $ (13 ) $ 8,483 U.S. government and agency securities 799 — — 799 Commercial paper 798 — — 798 Total $ 10,092 $ 1 $ (13 ) $ 10,080 The following table summarizes the maturities of the Company’s marketable securities as of September 30, 2016 (in thousands): Amortized Cost Estimated Fair Value Due in one year or less $ 32,874 $ 32,862 Due after one year through two years 3,203 3,198 Total $ 36,077 $ 36,060

Income Taxes

Income Taxes	9 Months Ended
	Sep. 30, 2016
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, 2016 , 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 in the U.S. federal and state jurisdictions, it only records a tax provision or benefit related to minimum state tax payments or refunds in addition to foreign taxes. The Company recorded an income tax expense of $14,000 and $4,000 for the three months ended September 30, 2016 and 2015, respectively, and income tax expense of $45,000 and $26,000 for the nine month periods ended September 30, 2016 and 2015, respectively. The Company is subject to taxation in the United States and in various state and foreign jurisdictions. The Company's Federal and state returns since inception are subject to examination due to the carryover of net operating losses. As of September 30, 2016 , the Company’s tax years from 2011 through 2012 are subject to examination by the United Kingdom tax authorities related to legacy operations. The statute of limitations for the assessment and collection of income taxes related to other foreign tax returns varies by country. In the foreign countries where we have operations, these time periods generally range from three to five years after the year for which the tax return is due or the tax is assessed.

Organization and Basis of Pre17

Organization and Basis of Presentation (Policies)	9 Months Ended
	Sep. 30, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of Presentation	Basis of Presentation The Company has incurred net losses from operations since its inception and had an accumulated deficit of $342,593,000 as of September 30, 2016 . 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, 2016 were $54,153,000 . 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	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	ccounting 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	sh Equivalents and Marketable Securities Cash an
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 War
Restricted Cash	ed Cash Restricted cash represents amounts designated for uses other than current operations and included $758,000 as of September 30, 2016 , held as sec
Use of Estimates	stimates 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
Product Warranties	anties 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
Intangible Assets	ssets 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
Impairment of Long-Lived Assets	f Long-Lived Assets The Company
Inventories	Inventories
Property and Equipment, net	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 Tax
Income Taxes

Organization and Basis of Pre18

Organization and Basis of Presentation (Tables)	9 Months Ended
	Sep. 30, 2016
Reclassifications [Line Items]
Estimated useful lives of property and equipment	x

Stock-Based Compensation (Table

Stock-Based Compensation (Tables)	9 Months Ended
	Sep. 30, 2016
Compensation Related Costs [Abstract]
Schedule of stock option activity	he following table summarizes stock option activity during the nine months ended September 30, 2016 : Number of Shares Weighted Average Exercise Price Outstanding at December 31, 2015 3,004,011 $ 9.74 Granted 5,000 4.70 Exercised (75,895) 6.68 Cancelled (322,530) 11.91 Outstanding at September 30, 2016 2,610,586 9.55 Vested and expected to vest at September 30, 2016 2,502,833 9.45 Exercisable at September 30, 2016 1,804,200 $ 8.49
Fair value assumptions of stock options	Nine Months Ended September 30, 2016 2015 Expected volatility 51 % 50 % Expected life (years) 5.90 6.08 Risk-free interest rate 1.35 % 1.69 % Expected dividend — % — % Weighted average fair value $2.27 $6.35
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, 2016 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 at December 31, 2015 32,837 $ 5.00 934,977 $ 12.66 Granted — — 1,428,773 5.24 Vested (31,589) 4.80 (383,466) 11.80 Cancelled (312) 11.19 (289,600) 7.58 Unvested at September 30, 2016 936 $ 9.40 1,690,684 $ 7.01

Net Loss per Common Share (Tabl

Net Loss per Common Share (Tables)	9 Months Ended
	Sep. 30, 2016
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, 2016 and 2015 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 September 30, 2016 2015 2016 2015 Options outstanding to purchase common stock 2,611 3,023 2,611 3,023 Other unvested equity awards 2,057 1,283 2,057 1,283 Total 4,668 4,306 4,668 4,306

Inventories (Tables)

Inventories (Tables)	9 Months Ended
	Sep. 30, 2016
Inventory Disclosure [Abstract]
Summary of inventory on hand	Inventory on hand as of September 30, 2016 and December 31, 2015 comprised the following (in thousands): September 30, 2016 December 31, 2015 Raw materials $ 1,012 $ 1,147 Work-in-process 1,049 693 Finished goods 2,155 1,214 Total inventories $ 4,216 $ 3,054

Property and Equipment, net (Ta

Property and Equipment, net (Tables)	9 Months Ended
	Sep. 30, 2016
Property, Plant and Equipment, Net [Abstract]
Property and equipment, net	Property and equipment as of September 30, 2016 and December 31, 2015 comprised the following (in thousands): September 30, 2016 December 31, 2015 Property and equipment — at cost: Machinery and laboratory equipment $ 9,434 $ 7,728 Instruments 9,334 8,195 Office equipment 1,695 1,526 Leasehold improvements 9,577 4,311 Total property and equipment — at cost 30,040 21,760 Less: accumulated depreciation (12,705 ) (10,364 ) Property and equipment, net $ 17,335 $ 11,396

Intangible Assets, net (Tables)

Intangible Assets, net (Tables)	9 Months Ended
	Sep. 30, 2016
Goodwill and Intangible Assets Disclosure [Abstract]
Summary of intangible assets	Intangible assets as of September 30, 2016 and December 31, 2015 comprised the following (in thousands): September 30, 2016 December 31, 2015 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Intellectual property licenses $ 4,250 $ (1,455 ) $ 2,795 $ 3,550 $ (1,174 ) $ 2,376
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 2016 $ 124 2017 497 2018 497 2019 497 2020 497 Thereafter 683 Total $ 2,795

Leases (Tables)

Leases (Tables)	9 Months Ended
	Sep. 30, 2016
Leases [Abstract]
Schedule of future minimum lease payments	As of September 30, 2016 , 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 2016 $ 398 2017 1,644 2018 1,792 2019 1,913 2020 1,972 Thereafter 2,738 Total $ 10,457

Fair Value of Financial Instr25

Fair Value of Financial Instruments (Tables)	9 Months Ended
	Sep. 30, 2016
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, 2016 and December 31, 2015 (in thousands): September 30, 2016 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) $ 5,010 $ — $ — $ 5,010 Corporate notes and bonds (cash equivalents) — 1,200 — 1,200 Corporate notes and bonds — 23,364 — 23,364 U.S. government and agency securities — 9,015 — 9,015 Commercial paper — 2,481 — 2,481 Total $ 5,010 $ 36,060 $ — $ 41,070 December 31, 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) $ 22,128 $ — $ — $ 22,128 Corporate notes and bonds — 8,483 — 8,483 U.S. government and agency securities — 799 — 799 Commercial paper — 798 — 798 Total $ 22,128 $ 10,080 $ — $ 32,208

Marketable Securities (Tables)

Marketable Securities (Tables)	9 Months Ended
	Sep. 30, 2016
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, 2016 and December 31, 2015 (in thousands): September 30, 2016 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Corporate notes and bonds $ 24,580 $ — $ (16 ) $ 24,564 U.S. government and agency securities 9,016 1 (2 ) 9,015 Commercial paper 2,481 — — 2,481 Total $ 36,077 $ 1 $ (18 ) $ 36,060 December 31, 2015 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Corporate notes and bonds $ 8,495 $ 1 $ (13 ) $ 8,483 U.S. government and agency securities 799 — — 799 Commercial paper 798 — — 798 Total $ 10,092 $ 1 $ (13 ) $ 10,080
Company's available-for-sale maturities investments	The following table summarizes the maturities of the Company’s marketable securities as of September 30, 2016 (in thousands): Amortized Cost Estimated Fair Value Due in one year or less $ 32,874 $ 32,862 Due after one year through two years 3,203 3,198 Total $ 36,077 $ 36,060

Organization and Basis of Pre27

Organization and Basis of Presentation (Details)	9 Months Ended
	Sep. 30, 2016
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
Instruments [Member] | Minimum [Member]
Property, Plant and Equipment [Line Items]
Expected useful lives of these assets	4 years
Instruments [Member] | Maximum [Member]
Property, Plant and Equipment [Line Items]
Expected useful lives of these assets	5 years

Organization and Basis of Pre28

Organization and Basis of Presentation (Details Textual)	9 Months Ended
	Sep. 30, 2016USD ($)Segment	Dec. 31, 2015USD ($)
Property, Plant and Equipment [Line Items]
Accumulated deficit	$ (342,593,000)	$ (304,669,000)
Cash and cash equivalents	$ 54,153,000
Sufficient capital to fund its operations	at least the next 12 months
Number of operating segment | Segment	1
Restricted cash	$ 758,000
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

Stock-Based Compensation (Detai

Stock-Based Compensation (Details)	9 Months Ended
	Sep. 30, 2016$ / sharesshares
Schedule of stock option activity
Number of Share options Outstanding, Beginning Balance | shares	3,004,011
Number of Share options, Granted | shares	5,000
Number of Share options, Exercised | shares	(75,895)
Number of Share options, Cancelled | shares	(322,530)
Number of Share options Outstanding, Ending Balance | shares	2,610,586
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Exercisable, Number | shares	2,502,833
Number of Share options, Exercisable | shares	1,804,200
Weighted average exercise price Outstanding, Beginning Balance | $ / shares	$ 9.74
Weighted average exercise price, Granted | $ / shares	4.70
Weighted average exercise price, Exercised | $ / shares	6.68
Weighted average exercise price, Cancelled | $ / shares	11.91
Weighted average exercise price Outstanding, Ending Balance | $ / shares	9.55
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Exercisable, Weighted Average Exercise Price | $ / shares	9.45
Weighted average exercise price, Exercisable | $ / shares	$ 8.49

Stock-Based Compensation (Det30

Stock-Based Compensation (Details 1) - Options [Member] - $ / shares	9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2013
Fair value of stock options granted
Expected volatility (%)	51.00%	50.00%
Expected life (years)	5 years 10 months 25 days	6 years 29 days
Risk free rate (%)	1.35%	1.69%
Expected dividend yield (%)	0.00%	0.00%
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Exercise Price	$ 2.27		$ 6.35

Stock-Based Compensation (Det31

Stock-Based Compensation (Details 2)	9 Months Ended
	Sep. 30, 2016$ / sharesshares
Restricted Stock Awards [Member]
Summary of restricted stock award and restricted stock units activity
Non-vested, Number of shares, Beginning balance | shares	32,837
Number of shares, Granted | shares	0
Number of shares, Vested | shares	(31,589)
Number of shares, Cancelled or expired | shares	(312)
Non-vested, Number of shares, Ending balance | shares	936
Non-vested, Weighted average Grant Date Fair Value, Beginning balance | $ / shares	$ 5
Weighted Average Grant Date Fair Value, Granted | $ / shares	0
Weighted average Grant Date Fair Value, Vested | $ / shares	4.80
Weighted average Grant Date Fair Value, Cancelled or expired | $ / shares	11.19
Non-vested, Weighted average Grant Date Fair Value, Ending balance | $ / shares	$ 9.40
Market Share Unit [Member]
Summary of restricted stock award and restricted stock units activity
Non-vested, Number of shares, Beginning balance | shares	136,730
Number of shares, Granted | shares	263,351
Number of shares, Cancelled or expired | shares	(56,269)
Non-vested, Number of shares, Ending balance | shares	343,812
Non-vested, Weighted average Grant Date Fair Value, Beginning balance | $ / shares	$ 18.07
Weighted Average Grant Date Fair Value, Granted | $ / shares	4.94
Weighted average Grant Date Fair Value, Cancelled or expired | $ / shares	9.81
Non-vested, Weighted average Grant Date Fair Value, Ending balance | $ / shares	$ 9.36
Restricted Stock Units [Member]
Summary of restricted stock award and restricted stock units activity
Non-vested, Number of shares, Beginning balance | shares	934,977
Number of shares, Granted | shares	1,428,773
Number of shares, Vested | shares	(383,466)
Number of shares, Cancelled or expired | shares	(289,600)
Non-vested, Number of shares, Ending balance | shares	1,690,684
Non-vested, Weighted average Grant Date Fair Value, Beginning balance | $ / shares	$ 12.66
Weighted Average Grant Date Fair Value, Granted | $ / shares	5.24
Weighted average Grant Date Fair Value, Vested | $ / shares	11.80
Weighted average Grant Date Fair Value, Cancelled or expired | $ / shares	7.58
Non-vested, Weighted average Grant Date Fair Value, Ending balance | $ / shares	$ 7.01

Stock-Based Compensation (Det32

Stock-Based Compensation (Details Textual) - USD ($)	1 Months Ended	3 Months Ended	9 Months Ended
	Mar. 31, 2013	Sep. 30, 2016	Sep. 30, 2016	Sep. 30, 2015	Dec. 31, 2015	Sep. 30, 2013
Share-based compensation (Textual) [Abstract]
Granted Stock option			5,000
Stock compensation expense			$ 6,788,000	$ 7,347,000
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number		2,610,586	2,610,586		3,004,011
Weighted average exercise price of stock option			$ 4.70
Aggregate intrinsic value of options exercisable		$ 6,403,000	$ 6,403,000
Remaining weighted average contractual term			5 years 7 months 25 days
Employee Stock Purchase Plan [Abstract]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Intrinsic Value		$ 6,968,000	$ 6,968,000
Weighted Average Remaining Contractual Life, Outstanding (in years)			6 years 4 months 25 days
Options [Member]
Share-based compensation (Textual) [Abstract]
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Risk Free Interest Rate			1.35%	1.69%
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Volatility Rate			51.00%	50.00%
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		$ 2.27	$ 2.27			$ 6.35
Restricted Stock Awards [Member]
Share-based compensation (Textual) [Abstract]
Total fair value of restricted stock vested			$ 152,000	$ 1,222,000
Stock compensation expense			6,788,000	$ 7,347,000
Unrecognized compensation cost		$ 4,000	$ 4,000
Weighted average-period, cost is expected to be recognized		2 months
Number of shares, Granted			0
Weighted Average Grant Date Fair Value, Granted			$ 0
Market Share Unit [Member]
Share-based compensation (Textual) [Abstract]
Unrecognized compensation cost		$ 963,000	$ 963,000
Weighted average-period, cost is expected to be recognized			1 year 10 months 27 days
Number of shares, Granted			263,351
Weighted Average Grant Date Fair Value, Granted			$ 4.94
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Risk Free Interest Rate			0.90%	1.10%
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Volatility Rate			49.00%	45.00%
Employee Stock Purchase Plan [Abstract]
Expected dividend yield (%)			0.00%	0.00%
Restricted Stock Units [Member]
Share-based compensation (Textual) [Abstract]
Total fair value of restricted stock vested			$ 4,526,000	$ 3,885,000
Unrecognized compensation cost		8,330,000	$ 8,330,000
Weighted average-period, cost is expected to be recognized			2 years 10 months 27 days
Number of shares, Granted			1,428,773
Weighted Average Grant Date Fair Value, Granted			$ 5.24
Performance Shares [Member]
Share-based compensation (Textual) [Abstract]
Stock compensation expense			$ 43,200
Unrecognized compensation cost		$ 266,000	$ 266,000
Weighted Average Grant Date Fair Value, Granted			$ 12.30
Options [Member]
Employee Stock Purchase Plan [Abstract]
Maximum offering period			27 months
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		335,807	335,807			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, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Computations of diluted net loss per share
Antidilutive securities excluded from calculation	4,668	4,306	4,668	4,306
Options [Member]
Computations of diluted net loss per share
Antidilutive securities excluded from calculation	2,611	3,023	2,611	3,023
Unvested restricted stock [Member]
Computations of diluted net loss per share
Antidilutive securities excluded from calculation	2,057	1,283	2,057	1,283

Inventories (Details)

Inventories (Details) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Summary of inventory on hand
Raw materials	$ 1,012	$ 1,147
Work-in-process	1,049	693
Finished goods	2,155	1,214
Total	$ 4,216	$ 3,054

Property and Equipment, net (De

Property and Equipment, net (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015	Dec. 31, 2015
Property and equipment-at cost:
Total property and equipment-at cost	$ 30,040,000		$ 30,040,000		$ 21,760,000
Less accumulated depreciation	(12,705,000)		(12,705,000)		(10,364,000)
Property and equipment, net	17,335,000		17,335,000		11,396,000
Depreciation expense	854,000	$ 797,000	2,458,000	$ 2,301,000
Plant and machinery [Member]
Property and equipment-at cost:
Total property and equipment-at cost	9,434,000		9,434,000		7,728,000
Instruments [Member]
Property and equipment-at cost:
Total property and equipment-at cost	9,334,000		9,334,000		8,195,000
Office equipment [Member]
Property and equipment-at cost:
Total property and equipment-at cost	1,695,000		1,695,000		1,526,000
Leasehold improvements [Member]
Property and equipment-at cost:
Total property and equipment-at cost	$ 9,577,000		$ 9,577,000		$ 4,311,000

Intangible Assets, net (Details

Intangible Assets, net (Details) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Summary of intangible assets
Net carrying amount	$ 2,795
Licensed intellectual property [Member]
Summary of intangible assets
Gross carrying amount	4,250	$ 3,550
Accumulated amortization	(1,455)	(1,174)
Net carrying amount	$ 2,795	$ 2,376

Intangible Assets, net (Detai37

Intangible Assets, net (Details 1) $ in Thousands	Sep. 30, 2016USD ($)
Summary of estimated future amortization expense
Remaining in 2016	$ 124
2,015	497
2,016	497
2,017	497
2,018	497
Thereafter	683
Net carrying amount	$ 2,795

Intangible Assets, net (Detai38

Intangible Assets, net (Details Textual) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Indefinite-lived Intangible Assets [Line Items]
Amortization expense for intangible assets	$ 94,000	$ 71,000	$ 281,000	$ 199,000
Licensed intellectual property [Member]
Indefinite-lived Intangible Assets [Line Items]
Weighted average amortization period			5 years 7 months 18 days

Loan Payable (Details Textual)

Loan Payable (Details Textual) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015	Dec. 31, 2015
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	295,000		$ 295,000		$ 483,000
Amortization of Debt Issuance Costs and Discounts	108,000	$ 83,000	277,000	$ 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		10,000,000
Term Loan B [Member]
Loan Payable (Textual) [Abstract]
Loans Payable	10,000,000		10,000,000		$ 0
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 ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015	Dec. 31, 2015
Debt Instrument [Line Items]
Amortization of Debt Issuance Costs and Discounts	$ 108,000	$ 83,000	$ 277,000	$ 199,000
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	(295,000)		$ (295,000)		$ (483,000)
Long-term Debt, Current Maturities	(5,403,000)		(5,403,000)		373,000
Long-term Debt, Excluding Current Maturities	14,302,000		14,302,000		9,890,000
Long-term Debt	19,705,000		19,705,000		9,517,000
Term Loans [Member]
Debt Instrument [Line Items]
Loans Payable	35,000,000		35,000,000
Term Loan A [Member]
Debt Instrument [Line Items]
Loans Payable	10,000,000		10,000,000		10,000,000
Term Loan B [Member]
Debt Instrument [Line Items]
Loans Payable	10,000,000		10,000,000		$ 0
Term Loan C [Member]
Debt Instrument [Line Items]
Loans Payable	$ 15,000,000		$ 15,000,000

Leases (Details)

Leases (Details) $ in Thousands	Sep. 30, 2016USD ($)
Schedule of future minimum lease payments
Remaining in 2016	$ 398
2,015	1,644
2,016	1,792
2,017	1,913
2,018	1,972
Thereafter	2,738
Total future minimum payments	$ 10,457

Leases (Details Textual)

Leases (Details Textual) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015	Dec. 31, 2015
Leases [Abstract]
Rent and operating expenses	$ 476,000	$ 336,000	$ 1,460,000	$ 920,000
Operating lease, deferred expense	$ 4,189,000		$ 4,189,000		$ 1,445,000

Fair Value of Financial Instr43

Fair Value of Financial Instruments (Details) - Fair Value, Measurements, Recurring [Member] - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Assets:
Assets, fair value	$ 41,070	$ 32,208
Quotes Prices in Active Markets for Identical Assets (Level 1) [Member]
Assets:
Assets, fair value	5,010	22,128
Significant Other Observable Inputs (Level 2) [Member]
Assets:
Assets, fair value	36,060	10,080
Significant Unobservable Inputs (Level 3) [Member]
Assets:
Assets, fair value	0	0
Money market funds (cash equivalents) [Member]
Assets:
Assets, fair value	5,010	22,128
Money market funds (cash equivalents) [Member] | Quotes Prices in Active Markets for Identical Assets (Level 1) [Member]
Assets:
Assets, fair value	5,010	22,128
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
Cash and Cash Equivalents [Member]
Assets:
Assets, fair value	1,200
Cash and Cash Equivalents [Member] | Quotes Prices in Active Markets for Identical Assets (Level 1) [Member]
Assets:
Assets, fair value	0
Cash and Cash Equivalents [Member] | Significant Other Observable Inputs (Level 2) [Member]
Assets:
Assets, fair value	1,200
Cash and Cash Equivalents [Member] | Significant Unobservable Inputs (Level 3) [Member]
Assets:
Assets, fair value	0
Corporate notes and bonds [Member]
Assets:
Assets, fair value	23,364	8,483
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	23,364	8,483
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	9,015	799
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	9,015	799
U.S. government and agency securities [Member] | Significant Unobservable Inputs (Level 3) [Member]
Assets:
Assets, fair value	0	0
Commercial paper [Member]
Assets:
Assets, fair value	2,481	798
Commercial paper [Member] | Quotes Prices in Active Markets for Identical Assets (Level 1) [Member]
Assets:
Assets, fair value	0	0
Commercial paper [Member] | Significant Other Observable Inputs (Level 2) [Member]
Assets:
Assets, fair value	2,481	798
Commercial paper [Member] | Significant Unobservable Inputs (Level 3) [Member]
Assets:
Assets, fair value	$ 0	$ 0

Marketable Securities Details)

Marketable Securities Details) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Company's available-for-sales investments
Amortized Cost	$ 36,077	$ 10,092
Gross Unrealized Gains	1	1
Gross Unrealized Losses	(18)	(13)
Available-for-sale Securities, Equity Securities	36,060
Fair Value		10,080
Corporate notes and bonds [Member]
Company's available-for-sales investments
Amortized Cost	24,580	8,495
Gross Unrealized Gains	0	1
Gross Unrealized Losses	(16)	(13)
Fair Value	24,564	8,483
U.S. government and agency securities [Member]
Company's available-for-sales investments
Amortized Cost	9,016	799
Gross Unrealized Gains	1	0
Gross Unrealized Losses	(2)	0
Fair Value	9,015	799
Commercial paper [Member]
Company's available-for-sales investments
Amortized Cost	2,481	798
Gross Unrealized Gains	0	0
Gross Unrealized Losses	0	0
Fair Value	$ 2,481	$ 798

Investments (Details 1)

Investments (Details 1) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Company's available-for-sales investments
Less than 1 year, Amortized cost	$ 32,874
Due in 1 to 2 years, Amortized cost	3,203
Amortized Cost	36,077	$ 10,092
Less than 1 year, Fair value	32,862
Due in 1 to 2 years, Fair value	3,198
Fair Value	$ 36,060

Income Taxes (Details)

Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015	Dec. 31, 2015
Income Tax Disclosure [Abstract]
Income tax expense (benefit)	$ (14)	$ (4)	$ (45)	$ (26)
Total amount of unrecognized tax benefits	$ 0		$ 0		$ 0