REVA Medical (RVALL) 10-Q 14 May 15 2015 Q1 Quarterly report Financial data

Document_and_Entity_Informatio

Document and Entity Information	3 Months Ended
	Mar. 31, 2015	1-May-15
Document and Entity Information
Entity Registrant Name	REVA Medical, Inc.
Entity Central Index Key	1496268
Document Type	10-Q
Document Period End Date	31-Mar-15
Amendment Flag	FALSE
Current Fiscal Year End Date	-19
Entity Current Reporting Status	Yes
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		33,579,778
Document Fiscal Year Focus	2015
Document Fiscal Period Focus	Q1

Consolidated_Balance_Sheets

Consolidated Balance Sheets (USD $)	Mar. 31, 2015	Dec. 31, 2014
Current Assets:
Cash and cash equivalents	$20,583,000	$25,814,000
Short-term investments	995,000	995,000
Prepaid expenses and other current assets	361,000	406,000
Total current assets	21,939,000	27,215,000
Property and equipment, net	2,931,000	2,920,000
Other non-current assets	60,000	60,000
Total Assets	24,930,000	30,195,000
Current Liabilities:
Accounts payable	632,000	651,000
Accrued expenses and other current liabilities	1,182,000	2,213,000
Total current liabilities	1,814,000	2,864,000
Long-Term Liabilities:
Convertible Notes Payable	49,990,000	37,780,000
Common stock warrant liability	21,280,000	15,389,000
Other long-term liabilities	1,037,000	611,000
Total Long-term liabilities	72,307,000	53,780,000
Total Liabilities	74,121,000	56,644,000
Commitments and contingencies (Note 7)
Stockholders' Equity (Deficit):
Undesignated preferred stock $ $0.0001 par value; 5,000,000 shares authorized; no shares issued or outstanding
Additional paid-in capital	226,709,000	226,094,000
Accumulated deficit	-275,903,000	-252,546,000
Total Stockholders' Equity (Deficit)	-49,191,000	-26,449,000
Total Liabilities and Stockholders' Equity (Deficit)	24,930,000	30,195,000
Common Stock
Stockholders' Equity (Deficit):
Common stock	3,000	3,000
Class B common stock
Stockholders' Equity (Deficit):
Common stock

Consolidated_Balance_Sheets_Pa

Consolidated Balance Sheets (Parenthetical) (USD $)	Mar. 31, 2015	Dec. 31, 2014
Undesignated preferred stock, par value (in dollars per share)	$0.00	$0.00
Undesignated preferred stock, shares authorized	5,000,000	5,000,000
Undesignated preferred stock, shares issued	0	0
Undesignated preferred stock, shares outstanding	0	0
Common Stock
Common stock, par value (in dollars per share)	$0.00	$0.00
Common stock, shares authorized	100,000,000	100,000,000
Common stock, shares issued	33,579,778	33,529,778
Common stock, shares outstanding	33,579,778	33,529,778
Class B common stock
Common stock, par value (in dollars per share)	$0.00	$0.00
Common stock, shares authorized	25,000,000	25,000,000
Common stock, shares issued	0	0
Common stock, shares outstanding	0	0

Consolidated_Statements_of_Ope

Consolidated Statements of Operations and Comprehensive Loss (USD $)	3 Months Ended
In Thousands, except Share data, unless otherwise specified	Mar. 31, 2015	Mar. 31, 2014
Operating Expense:
Research and development	$3,264	$4,879
General and administrative	1,589	2,393
Loss from operations	-4,853	-7,272
Other Income (Expense):
Interest income	3	3
Interest expense	-465
Loss on change in fair value of convertible notes payable and warrant liability	-18,101
Other income (expense)	59	-7
Other income (expense)	-18,504	-4
Net Loss and Comprehensive Loss	($23,357)	($7,276)
Net loss per share, basic and diluted (in dollars per share)	($0.70)	($0.22)
Shares used to compute net loss per share, basic and diluted (in shares)	33,468,431	33,339,779

Consolidated_Statements_of_Cas

Consolidated Statements of Cash Flows (USD $)	3 Months Ended
In Thousands, unless otherwise specified	Mar. 31, 2015	Mar. 31, 2014
Cash Flows from Operating Activities:
Net loss	($23,357)	($7,276)
Non-cash adjustments to reconcile net loss to net cash used for operating activities:
Depreciation and amortization	260	264
Stock-based compensation	555	1,142
Interest on convertible notes payable	465
Loss on change in fair value of convertible notes payable and warrant liability	18,101
Other non-cash expenses	3	5
Changes in operating assets and liabilities:
Prepaid expenses and other current assets	45	62
Accounts payable	-9	-401
Accrued expenses and other current liabilities	-986	-411
Long-term liabilities	-39	-34
Net cash used for operating activities	-4,962	-6,649
Cash Flows from Investing Activities:
Purchases of property and equipment	-281	-216
Maturities of investments		498
Net cash provided by (used for) investing activities	-281	282
Cash Flows from Financing Activities:
Proceeds from issuances of common stock	62	170
Costs of issuing convertible notes payable and warrants	-50
Net cash provided by financing activities	12	170
Net decrease in cash and cash equivalents	-5,231	-6,197
Cash and cash equivalents at beginning of period	25,814	19,229
Cash and Cash Equivalents at End of Period	20,583	13,032
Supplemental Cash and Non-Cash information:
Property and equipment in accounts payable	$2	$76

Background_and_Basis_of_Presen

Background and Basis of Presentation	3 Months Ended
	Mar. 31, 2015
Background and Basis of Presentation
Background and Basis of Presentation
	1.  Background and Basis of Presentation
	Background:  REVA Medical, Inc. (“REVA” or the “Company”) was incorporated in California in 1998 under the name MD3, Inc. In March 2002, we changed our name to REVA Medical, Inc. In October 2010, we reincorporated in Delaware. We established a non-operating wholly owned subsidiary, REVA Germany GmbH, in 2007. In these notes the terms “us,” “we,” or “our” refer to REVA and our consolidated subsidiary unless context dictates otherwise.
	We do not yet have a product available for sale; our product(s) will become available following completion of required clinical studies with acceptable data and when, and if, we receive regulatory approval. We are currently developing and testing a bioresorbable stent to treat vascular disease in humans. This stent, which we have named Fantom, was first implanted in humans during December 2014. We are currently enrolling up to 110 patients in a clinical trial with Fantom from which we will obtain follow-up data at a six-month time point; we expect to complete enrollment in this trial prior to December 31, 2015. If this data has acceptable safety and efficacy results, we intend to apply for a European CE Marking, the regulatory approval that would allow us to commercialize Fantom in Europe.
	In December 2010 we completed an initial public offering (the “IPO”) of our common stock in Australia and registered with the U.S. Securities and Exchange Commission (“SEC”) and, consequently, became an SEC filer. Our stock is traded in the form of CHESS Depository Interests (“CDIs”) on the Australian Securities Exchange (“ASX”); each share of our common stock is equivalent to ten CDIs. Our trading symbol is “RVA.AX.”
	Basis of Presentation:  We have prepared the accompanying consolidated financial statements in accordance with U.S. generally accepted accounting principles (“GAAP”) and the rules and regulations of the SEC for reporting of interim financial information and, therefore, certain information and footnote disclosures normally included in annual financial statements have been omitted. Accordingly, these interim financial statements should be read in conjunction with Management’s Discussion and Analysis of Financial Condition and Results of Operations contained in this report and with the audited financial statements and accompanying footnotes included in our Annual Report on Form 10-K for the year ended December 31, 2014.
	Our consolidated financial statements include the accounts of REVA and our wholly owned subsidiary. All intercompany transactions and balances, if any, have been eliminated in consolidation. These interim consolidated financial statements are unaudited; the consolidated balance sheet as of December 31, 2014 was derived from the Company’s audited financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2014. The interim financial statements have been prepared on the same basis as our annual financial statements and, in our opinion, all adjustments, consisting only of normal recurring accruals, considered necessary for a fair statement of the results of these interim periods have been included. The results of operations for the three months ended March 31, 2015 are not necessarily indicative of the results to be expected for the year ending December 31, 2015 or for any other interim period.
	Capital Resources:  We had cash and investments totaling $21,578,000 as of March 31, 2015, which we believe will be sufficient to fund our operating and capital needs for at least the next year. We have experienced recurring losses and negative cash flows from operating activities since our inception and, as of March 31, 2015, we had an accumulated deficit of $275,903,000. Until we generate revenue, and at a level to support our cost structure, we expect to continue to incur substantial operating losses and net cash outflows. Even if we do attain revenue, we may never become profitable and even if we do attain profitable operations, we may not be able to sustain that profitability or positive cash flows on a recurring basis. We may need to raise further capital in the future to fund our operations until such time as we can sustain positive cash flows. If we are unable to raise sufficient additional capital when needed, we may be compelled to reduce the scope of our operations and planned capital expenditures or sell certain assets, including our intellectual property assets.
	Use of Estimates:  In order to prepare our financial statements in conformity with GAAP, we are required to make estimates and assumptions that affect the reported amounts in the financial statements and accompanying notes. Our most significant estimates relate to the fair value of our convertible notes payable, the fair value of our warrant liability, our operating expense accruals, including clinical study expenses, and stock-based compensation. Actual results could differ from our estimates.

Fair_Value_Measurements

Fair Value Measurements	3 Months Ended
	Mar. 31, 2015
Fair Value Measurements
Fair Value Disclosures [Text Block]
	2.  Fair Value Measurements
	We measure the fair value of our financial and non-financial assets and liabilities at each reporting date in accordance with the fair value hierarchy according to GAAP, which requires that fair value measurements be classified and disclosed in one of the following three categories:
	Level 1	—	Quoted market prices for identical assets or liabilities in active markets at the measurement date;
	Level 2	—	Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities in active or non-active markets, or other inputs that can be corroborated by observable market data for substantially the full term of an asset or liability; and,
	Level 3	—	Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of an asset or liability, including management’s best estimate of the factors that market participants would use in pricing an asset or liability at the measurement date.
	We carry our convertible notes payable and common stock warrant liability at fair value. We carry our other financial instruments at amortized cost; these items include cash, investments, accounts payable, and accrued expenses. The carrying amounts of our cash and cash equivalents, accounts payable, and accrued expenses are considered to be reasonable estimates of their respective fair values due to their short-term nature and, therefore, fair value information is not provided in the following table. Utilizing the lowest level inputs available under the measurement hierarchy, the fair values of our measured financial instruments comprise the following (we had no Level 1 financial instruments):
			Level 2			Level 3
			(in thousands)
	Fair Value at December 31, 2014:
	Assets:
	Certificates of deposit due in one year or less		$	991		$	—
	Liabilities:
	Convertible notes payable		$	—		$	37,780
	Common stock warrant liability		—			15,389
			$	—		$	53,169
	Fair Value at March 31, 2015:
	Assets:
	Certificates of deposit due in one year or less		$	993		$	—
	Liabilities:
	Convertible notes payable		$	—		$	49,990
	Common stock warrant liability		—			21,280
			$	—		$	71,270
	Our Level 2 financial assets consist of certificates of deposit (“CDs”) that are held to maturity and carried at cost; their fair value is determined each reporting period through quoted market prices of similar instruments in active markets. Unrealized losses on these CDs as of December 31, 2014 and March 31, 2015 were $4,000 and $2,000, respectively.
	Our Level 3 financial liabilities, which are recurring, consist of convertible notes payable (the “Notes”) and warrants for the purchase of common stock, all of which were issued on November 14, 2014. The fair values of these liabilities are determined utilizing a binomial valuation model, which requires use of unobservable inputs that are determined by management, with the assistance of independent experts. These inputs represent our best estimates, but involve certain inherent uncertainties. We used the market value of the underlying stock, a life equal to the contractual life of the financial instrument, incremental borrowing rates and bond yields that correspond to instruments of similar credit worthiness and the instrument’s remaining life, an estimate of volatility based on the historical prices of our trading securities, and we made assumptions as to our abilities to test and commercialize our product(s), to obtain future financings when and if needed, and to comply with the terms and conditions of our Notes. A summary of the assumptions used to value the Notes and warrants is as follows:
			December 31,			March 31,
			2014			2015
	Market price per share of common stock		$	3.35		$	4.34
	Risk-free interest rate		2.30		%	1.81		%
	Expected volatility of common stock		87.2		%	86.4		%
	Expected life — years		4.87			4.63
	Bond yield of equivalent securities		28.4		%	28.8		%
	A significant change in the market price per share, expected volatility, or bond yield of equivalent securities, in isolation, would result in significantly higher or lower fair value measurements. In combination, changes in these inputs could result in a significantly higher or lower fair value measurement if the input changes were to be aligned, or could result in a minimally higher or lower fair value measurement if the input changes were of a compensating nature.
	A total of $18,101 in unrealized losses arising from the change in fair value on our Level 3 financial liabilities was recorded during the three months ended March 31, 2015. Our Level 3 fair value activity during the current reporting period is as follows:
			Level 3
			(in thousands)
	Balance at December 31, 2014		$	53,169
	Losses from Change in Fair Value:
	Convertible notes payable		12,210
	Warrants to purchase common stock		5,891
	Balance at March 31, 2015		$	71,270

Convertible_Notes_Payable_and_

Convertible Notes Payable and Warrants to Purchase Common Stock	3 Months Ended
	Mar. 31, 2015
Convertible Notes Payable and Warrants to Purchase Common Stock
Convertible Notes Payable and Warrants to Purchase Common Stock
	3.  Convertible Notes Payable and Warrants to Purchase Common Stock
	In November 2014, we issued 250 convertible notes payable, each with a face value of $100,000, for total cash proceeds of $25,000,000. The Notes are convertible into 11,506,155 shares of common stock, which is a conversion rate of $2.17275 per share. The Notes are convertible at any time at the holders’ election, except the Notes will automatically convert in the case where we have received a CE Mark approval for our Fantom product and have sustained a market trading price of A$0.60 per CDI for 20 consecutive trading days. The Notes mature on November 14, 2019, if not converted or redeemed earlier. Interest accrues on the Notes at the rate of 7.54 percent per annum, compounded annually, and is payable upon redemption or maturity; accrued interest is not payable or convertible upon conversion of the Notes. The Notes provide the holders a one-time option for cash redemption in January 2017, if not previously converted or redeemed, for the face value plus accrued interest.
	Following an analysis of the embedded and derivative features of the Notes upon their issuance in 2014, and a projection of the volatility of their effective interest rates under the cost method, we elected to utilize fair value accounting for the Notes. Management believes the fair value method of accounting provides a more appropriate presentation of these liabilities than would be provided under the cost method. The fair value of the Notes as of March 31, 2015 was calculated to be $49,990,000, which was $24,990,000 more than the unpaid principal balance of the Notes. The change in fair value of the Notes between December 31, 2014 and March 31, 2015 of $12,210,000 was recorded as a loss in the consolidated statement of operations.
	In connection with issuing the Notes in November 2014, we issued warrants to the noteholders to purchase up to 8,750,000 shares of common stock at $2.17275 per share. The warrants are exercisable immediately and expire in November 2019. The exercise price of the warrants will increase to $2.6073 per share if, and when, we achieve full enrollment in our clinical trial of Fantom with the required number of patients that would provide data for a CE Mark application. None of the warrants had been exercised as of March 31, 2015.
	The fair value of the warrants as of March 31, 2015 was calculated to be $21,280,000. The change in fair value of the warrant liability between December 31, 2014 and March 31, 2015 of $5,891,000 was recorded as a loss in the consolidated statement of operations.

Balance_Sheet_Details

Balance Sheet Details	3 Months Ended
	Mar. 31, 2015
Balance Sheet Details.
Balance Sheet Details
	4.  Balance Sheet Details
	Property and Equipment and Accrued Expenses:  Components of our property and equipment and accrued expenses and other current liabilities are as follows:
		December 31,			March 31,
		2014			2015
		(in thousands)
	Property and equipment:
	Furniture, office equipment, and software	$	648		$	649
	Laboratory equipment	5,187			5,447
	Leasehold improvements	2,361			2,371
		8,196			8,467
	Accumulated depreciation and amortization	(5,276		)	(5,536		)
		$	2,920		$	2,931
	Accrued expenses and other current liabilities:
	Accrued salaries and other employee costs	$	1,315		$	497
	Accrued operating expenses	769			556
	Accrued use taxes and other	129			129
		$	2,213		$	1,182

Income_Taxes

Income Taxes	3 Months Ended
	Mar. 31, 2015
Income Taxes
Income Taxes
	5.  Income Taxes
	We have reported net losses for all periods through March 31, 2015; therefore, no provision for income taxes has been recorded since our inception. The net operating loss carryforwards arising from our net losses may be available to offset future taxable income for income tax purposes; however, under Internal Revenue Code (“IRC”) Sections 382 and 383, use of the net operating loss carryforwards, as well as our research tax credit carryforwards, may be limited based on cumulative changes in ownership. We have established a valuation allowance against our net deferred tax assets due to the uncertainty surrounding the realization of those assets and we, therefore, have no deferred asset or liability balance for any reporting period. We periodically evaluate the recoverability of the deferred tax assets and, when it is determined that it is more-likely-than-not that the deferred tax assets are realizable, the valuation allowance will be reduced. Due to our valuation allowance, future changes in our unrecognized tax benefits will not impact our effective tax rate.

StockBased_Compensation

Stock-Based Compensation	3 Months Ended
	Mar. 31, 2015
Stock-Based Compensation
Stock-Based Compensation
	6.  Stock-Based Compensation
	The Plan:  Our 2010 Equity Incentive Plan, as amended (the “Plan”), provides for grants of incentive and non-qualified stock options for purchase of our common stock at a price per share equal to the closing market price on the date of grant and for awards of restricted stock units and restricted stock for no consideration payable by the recipient. The number of shares reserved for issuance under the Plan may be increased annually by up to three percent of the outstanding stock of the Company and on January 1, 2015, an additional 1,002,893 shares were reserved for issuance under the Plan. An aggregate of 8,209,153 shares are reserved for issuance under the Plan as of March 31, 2015. All stock issuances under the Plan are made with new shares from our authorized but unissued common stock. The term of grants and awards under the Plan may not exceed ten years.
	Employees, non-employee directors, and consultants are eligible to participate in the Plan. For purposes of determining stock-based compensation expense, we include non-employee directors with employees; we account for consultant compensation expense separately.
	No tax benefits arising from stock-based compensation have been recognized in the consolidated statements of operations and comprehensive loss through March 31, 2015.
	Option activity under the Plan is as follows:
				Weighted
				Average
		Options		Exercise
		Outstanding		Price
	Balance at December 31, 2013	4,046,650		$	7.15
	Granted	637,000		$	3.53
	Cancelled	(180,500	)	$	6.61
	Exercised	(259,725	)	$	0.95
	Balance at December 31, 2014	4,243,425		$	7.01
	Granted	352,500		$	4
	Cancelled	(107,342	)	$	4.71
	Exercised	(50,000	)	$	1.25
	Balance at March 31, 2015	4,438,583		$	6.89
	The majority of options granted prior to 2015 vest over four years, with 25 percent vesting on the one-year anniversary of the vesting commencement date and 75 percent in equal monthly installments thereafter and those options are exercisable at any time but, if exercised, are subject to a lapsing right of repurchase by us at the exercise price until fully vested. During March 2015, we granted a total of 316,000 options that vest based on certain performance achievements of the Company. We estimated the vesting term, which ranges from approximately nine months to two years with a weighted average vesting term of 15 months, on the date of grant based on our internal timelines and operating projections.
	During July 2012, January 2013, and May 2013 we awarded 33,000 shares, 40,000 shares, and 47,500 shares, respectively, of restricted stock; 25 percent of each award vests on each annual anniversary date of the award. Through March 31, 2015, none of the restricted stock has been cancelled.
	During March 2015, we awarded 824,200 restricted stock units (“RSUs”) to employees. Each RSU entitles the employee to one share of our common stock upon vesting. The RSUs vest based on certain performance achievements of the Company. We estimated the vesting term, which ranges from approximately 14 months to two years with a weighted average vesting term of 17 months, on the date of award based on our internal timelines and operating projections. Through March 31, 2015, none of the RSUs have vested and none have been cancelled.
	Grants and Awards to Employees:  We account for option grants, restricted stock awards, and RSU awards to employees based on their estimated fair values on the date of grant or award, with the resulting stock-based compensation recorded over the vesting period on a straight-line basis. For the options and RSUs that vest upon performance achievements, we additionally estimate the probability that the performance targets will be met and record only the compensation expense based on these probabilities during the vesting period; during the three months ended March 31, 2015, the probabilities assigned to such options and RSUs ranged from 50 percent to 80 percent. Stock-based compensation arising from employee options and awards under the Plan is as follows:
		Three Months Ended
		March 31,
		2014			2015
		(in thousands)
	Research and development	$	288		$	295
	General and administrative	778			232
	Total stock-based compensation	$	1,066		$	527
	The fair value of restricted stock and RSUs awarded is equal to the closing market price of our common stock on the date of award. The fair value of options granted was estimated using the following weighted-average assumptions:
		Three Months Ended
		March 31,
		2014		2015
	Risk-free interest rate	2.27	%	1.69	%
	Expected volatility of common stock	59.3	%	56.4	%
	Expected life in years	6.25		5.71
	Dividend yield	0	%	0	%
	The assumed risk-free interest rate was based on the implied yield on a U.S. Treasury zero-coupon issue with a remaining term equal to the expected life of the option. The assumed volatility was calculated from the historical market prices of a selected group of publicly traded companies considered to be our peers; we use peer group data due to the fact that we have limited historical trading data. For options that vest based on passage of time, the expected option life was calculated using the simplified method under the accounting standard for stock compensation and a ten-year option expiration; we use the simplified method because we do not yet have adequate history as a public company to establish a reasonable expected life. For options that vest based on performance achievements, the expected life was calculated based on the vesting periods estimated by management and a ten-year option expiration. The expected dividend yield of zero reflects that we have not paid cash dividends since inception and do not intend to pay cash dividends in the foreseeable future. The options granted to employees during the three months ended March 31, 2015 had a weighted average grant date fair value of $2.07.
	The aggregate intrinsic value of options exercised during the three months ended March 31, 2014 and 2015 was $557,000 and $135,000, respectively.
	Stock Options to Consultants:  We account for stock options granted to consultants at their fair value. Under this method, the fair value is estimated at each reporting date during the vesting period using the Black-Scholes option-pricing model. The resulting stock-based compensation expense, or income if the fair value declines in a reporting period, is recorded over the consultant’s service period. Options to purchase 110,000 shares of common stock were granted to consultants during the three months ended March 31, 2014; no options were granted to consultants during the three months ended March 31, 2015. Stock-based compensation expense or (income) arising from consultant options granted under the Plan is as follows:
		Three Months Ended
		March 31,
		2014			2015
		(in thousands)
	Research and development	$	79		$	1
	General and administrative	(3		)	27
	Total stock-based compensation	$	76		$	28
	The weighted-average fair value of unvested consultant options at March 31, 2014 and 2015 was estimated to be $0.73 and $2.60 per share, respectively, based on the following weighted-average assumptions:
		March 31,
		2014		2015
	Risk-free interest rate	2.68	%	1.94	%
	Expected volatility of common stock	59.3	%	57.2	%
	Expected life in years	9.45		8.83
	Dividend yield	0	%	0	%
	The assumed risk-free interest rate was based on the implied yield on a U.S. Treasury zero-coupon issue with a remaining term equal to the expected life of the option. The assumed volatility was calculated from the historical market prices of a selected group of publicly traded companies considered to be our peers; we use peer group data due to the fact that we have limited historical trading data. The expected option life is the remaining term of the option. The expected dividend yield of zero reflects that we have not paid cash dividends since inception and do not intend to pay cash dividends in the foreseeable future.

Commitments_and_Contingencies

Commitments and Contingencies	3 Months Ended
	Mar. 31, 2015
Commitments and Contingencies.
Commitments and Contingencies
	7.  Commitments and Contingencies
	We have licensed certain patents and other intellectual property rights related to the composition and coating of our bioresorbable stent and our other biomaterial products. Terms of these licenses include provisions for royalty payments on any future sales of products, if any, utilizing this technology, with provisions for minimum royalties once product sales begin. The amount of royalties varies depending upon type of product, use of product, stage of product, location of sale, and ultimate sales volume, and ranges from a minimum of approximately $25 per unit to a maximum of approximately $100 per unit sold, with license provisions for escalating minimum royalties that could be as high as $2.2 million per year. Additionally, in the event we sublicense the technology and receive certain milestone payments, the licenses require that up to 40 percent of the milestone amount be paid to the licensors. Additional terms of the technology licenses include annual licensing payments of $175,000 until the underlying technology has been commercialized. Terms of the licenses also include other payments to occur during commercialization that could total $950,000, payment of $350,000 upon a change in control of ownership, payments of up to $300,000 annually to extend filing periods related to certain technology, and payment of patent filing, maintenance, and defense fees. The license terms remain in effect until the last patent expires.

Net_Loss_Per_Common_Share

Net Loss Per Common Share	3 Months Ended
	Mar. 31, 2015
Net Loss Per Common Share:
Net Loss Per Common Share
	8.  Net Loss Per Common Share
	Basic net loss per common share is calculated by dividing the net loss attributable to common stockholders by the weighted average number of common shares outstanding for the period, without consideration for common stock equivalents. Diluted net loss per share is computed by dividing the net loss attributable to common stockholders by the weighted average number of common share equivalents outstanding for the period determined using the treasury-stock method and the if-converted method, as applicable. For purpose of this calculation, common stock options and restricted stock subject to forfeiture are considered to be common stock equivalents and are included in the calculation of diluted net loss per share only when their effect is dilutive. For the three month reporting periods, the following weighted average shares were excluded from the computation of diluted net loss per share because including them would have been antidilutive.
		Three Months Ended
		March 31,
		2014	2015
	Options to purchase common stock	4,293,388	4,320,093
	Unvested restricted stock	103,694	73,569
	Restricted stock units	—	210,629
	Warrants to purchase common stock	—	8,750,000
	Common share equivalents from convertible notes	—	11,506,156
	Total weighted average shares excluded	4,397,082	24,860,447

Background_and_Basis_of_Presen1

Background and Basis of Presentation (Policies)	3 Months Ended
	Mar. 31, 2015
Background and Basis of Presentation
Basis of Presentation
	Basis of Presentation:  We have prepared the accompanying consolidated financial statements in accordance with U.S. generally accepted accounting principles (“GAAP”) and the rules and regulations of the SEC for reporting of interim financial information and, therefore, certain information and footnote disclosures normally included in annual financial statements have been omitted. Accordingly, these interim financial statements should be read in conjunction with Management’s Discussion and Analysis of Financial Condition and Results of Operations contained in this report and with the audited financial statements and accompanying footnotes included in our Annual Report on Form 10-K for the year ended December 31, 2014.
	Our consolidated financial statements include the accounts of REVA and our wholly owned subsidiary. All intercompany transactions and balances, if any, have been eliminated in consolidation. These interim consolidated financial statements are unaudited; the consolidated balance sheet as of December 31, 2014 was derived from the Company’s audited financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2014. The interim financial statements have been prepared on the same basis as our annual financial statements and, in our opinion, all adjustments, consisting only of normal recurring accruals, considered necessary for a fair statement of the results of these interim periods have been included. The results of operations for the three months ended March 31, 2015 are not necessarily indicative of the results to be expected for the year ending December 31, 2015 or for any other interim period.
Capital Resources
	Capital Resources:  We had cash and investments totaling $21,578,000 as of March 31, 2015, which we believe will be sufficient to fund our operating and capital needs for at least the next year. We have experienced recurring losses and negative cash flows from operating activities since our inception and, as of March 31, 2015, we had an accumulated deficit of $275,903,000. Until we generate revenue, and at a level to support our cost structure, we expect to continue to incur substantial operating losses and net cash outflows. Even if we do attain revenue, we may never become profitable and even if we do attain profitable operations, we may not be able to sustain that profitability or positive cash flows on a recurring basis. We may need to raise further capital in the future to fund our operations until such time as we can sustain positive cash flows. If we are unable to raise sufficient additional capital when needed, we may be compelled to reduce the scope of our operations and planned capital expenditures or sell certain assets, including our intellectual property assets.
Use of Estimates
	Use of Estimates:  In order to prepare our financial statements in conformity with GAAP, we are required to make estimates and assumptions that affect the reported amounts in the financial statements and accompanying notes. Our most significant estimates relate to the fair value of our convertible notes payable, the fair value of our warrant liability, our operating expense accruals, including clinical study expenses, and stock-based compensation. Actual results could differ from our estimates.

Fair_Value_Measurements_Tables

Fair Value Measurements (Tables)	3 Months Ended
	Mar. 31, 2015
Fair Value Measurements
Schedule of fair values of investments and liabilities, determined from level 2 and 3 inputs		Level 2			Level 3
		(in thousands)
	Fair Value at December 31, 2014:
	Assets:
	Certificates of deposit due in one year or less	$	991		$	—
	Liabilities:
	Convertible notes payable	$	—		$	37,780
	Common stock warrant liability	—			15,389
		$	—		$	53,169
	Fair Value at March 31, 2015:
	Assets:
	Certificates of deposit due in one year or less	$	993		$	—
	Liabilities:
	Convertible notes payable	$	—		$	49,990
	Common stock warrant liability	—			21,280
		$	—		$	71,270
Summary of assumptions used to value the Notes and warrants		December 31,			March 31,
		2014			2015
	Market price per share of common stock	$	3.35		$	4.34
	Risk-free interest rate	2.30		%	1.81		%
	Expected volatility of common stock	87.2		%	86.4		%
	Expected life — years	4.87			4.63
	Bond yield of equivalent securities	28.4		%	28.8		%
Summary of fair value of financial liabilities determined from "Level 3" inputs		Level 3
		(in thousands)
	Balance at December 31, 2014	$	53,169
	Losses from Change in Fair Value:
	Convertible notes payable	12,210
	Warrants to purchase common stock	5,891
	Balance at March 31, 2015	$	71,270

Balance_Sheet_Details_Tables

Balance Sheet Details (Tables)	3 Months Ended
	Mar. 31, 2015
Balance Sheet Details.
Schedule of components of property and equipment		December 31,			March 31,
		2014			2015
		(in thousands)
	Property and equipment:
	Furniture, office equipment, and software	$	648		$	649
	Laboratory equipment	5,187			5,447
	Leasehold improvements	2,361			2,371
		8,196			8,467
	Accumulated depreciation and amortization	(5,276		)	(5,536		)
		$	2,920		$	2,931
Schedule of components of accrued expenses and other current liabilities	Accrued expenses and other current liabilities:
	Accrued salaries and other employee costs	$	1,315		$	497
	Accrued operating expenses	769			556
	Accrued use taxes and other	129			129
		$	2,213		$	1,182

StockBased_Compensation_Tables

Stock-Based Compensation (Tables)	3 Months Ended
	Mar. 31, 2015
Stock-Based Compensation
Schedule of the option activity under the plan				Weighted
				Average
		Options		Exercise
		Outstanding		Price
	Balance at December 31, 2013	4,046,650		$	7.15
	Granted	637,000		$	3.53
	Cancelled	(180,500	)	$	6.61
	Exercised	(259,725	)	$	0.95
	Balance at December 31, 2014	4,243,425		$	7.01
	Granted	352,500		$	4
	Cancelled	(107,342	)	$	4.71
	Exercised	(50,000	)	$	1.25
	Balance at March 31, 2015	4,438,583		$	6.89
Equity awards to employees
Stock-Based Compensation
Schedule of the expense (income) recorded under the plan		Three Months Ended
		March 31,
		2014			2015
		(in thousands)
	Research and development	$	288		$	295
	General and administrative	778			232
	Total stock-based compensation	$	1,066		$	527
Schedule of the weighted-average assumptions used to estimate fair value of options granted
		Three Months Ended
		March 31,
		2014		2015
	Risk-free interest rate	2.27	%	1.69	%
	Expected volatility of common stock	59.3	%	56.4	%
	Expected life in years	6.25		5.71
	Dividend yield	0	%	0	%
Equity awards to consultants
Stock-Based Compensation
Schedule of the expense (income) recorded under the plan		Three Months Ended
		March 31,
		2014			2015
		(in thousands)
	Research and development	$	79		$	1
	General and administrative	(3		)	27
	Total stock-based compensation	$	76		$	28
Schedule of the weighted-average assumptions used to estimate fair value of options granted		March 31,
		2014		2015
	Risk-free interest rate	2.68	%	1.94	%
	Expected volatility of common stock	59.3	%	57.2	%
	Expected life in years	9.45		8.83
	Dividend yield	0	%	0	%

Net_Loss_Per_Common_Share_Tabl

Net Loss Per Common Share (Tables)	3 Months Ended
	Mar. 31, 2015
Net Loss Per Common Share:
Schedule of weighted average shares excluded from the computation of diluted net loss per share		Three Months Ended
		March 31,
		2014	2015
	Options to purchase common stock	4,293,388	4,320,093
	Unvested restricted stock	103,694	73,569
	Restricted stock units	—	210,629
	Warrants to purchase common stock	—	8,750,000
	Common share equivalents from convertible notes	—	11,506,156
	Total weighted average shares excluded	4,397,082	24,860,447

Background_and_Basis_of_Presen2

Background and Basis of Presentation (Details) (USD $)	3 Months Ended
	Mar. 31, 2015	Dec. 31, 2014	Dec. 31, 2010
	item		item
Background and Basis of Presentation
Number of patients enrolled in a clinical trial of bioresorbable stent product	110
Common stock to CDIs conversion ratio			10
Capital Resources
Cash and investments	$21,578,000
Retained Earnings (Accumulated Deficit)	($275,903,000)	($252,546,000)

Fair_Value_Measurements_Detail

Fair Value Measurements (Details) (USD $)	3 Months Ended	12 Months Ended
	Mar. 31, 2015	Dec. 31, 2014
Certificates of deposit due in one year or less	$995,000	$995,000
Convertible Notes Payable	49,990,000	37,780,000
Common Stock Warrant Liability	21,280,000	15,389,000
Fair Value Assumptions and Methodology for Assets and Liabilities [Abstract]
Market price per share of common stock	$4.34	$3.35
Risk-free interest rate	1.81%	2.30%
Expected volatility of common stock	86.40%	87.20%
Expected life - years	4 years 7 months 17 days	4 years 10 months 13 days
Bond yield of equivalent securities	28.80%	28.40%
Losses from Change in Fair Value:
Convertible note payable	12,210,000
Warrants to purchase common stock	5,891,000
Level 3
Convertible Notes Payable	49,990,000	37,780,000
Common Stock Warrant Liability	21,280,000	15,389,000
Liabilities	71,270,000
Gross Unrealized loss	18,101,000
Financial Liabilities Fair Value Disclosure.
Beginning balance	53,169,000
Losses from Change in Fair Value:
Convertible note payable	12,210,000
Warrants to purchase common stock	5,891,000
Ending balance	71,270,000
Level 2
Gross Unrealized loss	2,000,000	4,000,000
Certificates of Deposit | Level 2
Certificates of deposit due in one year or less	$993,000	$991,000

Notes_Payable_and_Warrants_to_

Notes Payable and Warrants to Purchase Common Stock (Details) (USD $)	1 Months Ended	3 Months Ended
	Nov. 30, 2014	Mar. 31, 2015	Dec. 31, 2014
Proceeds from notes payable and warrants	$25,000,000
Convertible Notes Payable		49,990,000	37,780,000
Change in fair value of Notes		12,210,000
Common Stock Warrant Liability		21,280,000	15,389,000
Change in fair value of Warrants		5,891,000
Warrants to purchase common stock
Convertible rate into common stock	$2.17
Warrants issued to purchase common stock (in shares)	8,750,000
Increased exercise price of warrants		$2.61
Warrants excercised		0
Convertible Notes Payable [Member]
Number of convertible notes payable	250
Face Amount	100,000
Number of converted shares of common stock	11,506,155
Convertible rate into common stock	$2.17
Market trading price	$0.60
Consecutive trading days	20
Interest rate (as a percent)	7.54%
Convertible notes excluding unpaid principal balance		$24,990,000

Balance_Sheet_Details_Details

Balance Sheet Details (Details ) (USD $)	Mar. 31, 2015	Dec. 31, 2014
In Thousands, unless otherwise specified
Property and equipment:
Property and equipment, gross	$8,467	$8,196
Accumulated depreciation and amortization	-5,536	-5,276
Property and equipment, net	2,931	2,920
Office Equipment [Member]
Property and equipment:
Property and equipment, gross	649	648
Equipment [Member]
Property and equipment:
Property and equipment, gross	5,447	5,187
Leasehold Improvements [Member]
Property and equipment:
Property and equipment, gross	$2,371	$2,361

Balance_Sheet_Details_Details_

Balance Sheet Details (Details 2) (USD $)	Mar. 31, 2015	Dec. 31, 2014
In Thousands, unless otherwise specified
Accrued expenses and other current liabilities:
Accrued salaries and other employee costs	$497	$1,315
Accrued operating expenses	556	769
Accrued use taxes and other	129	129
Accrued expenses and other current liabilities, total	$1,182	$2,213

Income_Taxes_Details

Income Taxes (Details) (USD $)	3 Months Ended
	Mar. 31, 2015
Income Taxes
Provision for income taxes	$0
Deferred tax assets	0
Deferred tax liability	$0

StockBased_Compensation_Detail

Stock-Based Compensation (Details) (USD $)	3 Months Ended	33 Months Ended	0 Months Ended	12 Months Ended	1 Months Ended
In Thousands, except Share data, unless otherwise specified	Mar. 31, 2015	Mar. 31, 2015	Jan. 02, 2015	Dec. 31, 2014	31-May-13	Jan. 31, 2013	Jul. 31, 2012
Equity awards to employees
Stock-Based Compensation
Term of options granted under the plan	10 years
Restricted stock
Stock-Based Compensation
Shares of restricted stock cancelled		0
2010 Equity Incentive Plan [Member]
Stock-Based Compensation
Number of shares added in reserve			1,002,893
Total number of shares in reserve with additional shares under the Plan	8,209,153	8,209,153
Tax benefits from stock based compensation	0
Vesting periods	4 years
Vesting percentage	25.00%
Percentage of remaining option grants vesting in equal monthly installments after the one-year anniversary of the vesting commencement date	75.00%
Options Outstanding
Balance at the beginning of period (in shares)	4,243,425		4,243,425	4,046,650
Granted (in shares)	352,500			637,000
Cancelled (in shares)	-107,342			-180,500
Exercised (in shares)	-50,000			-259,725
Balance at the end of period (in shares)	4,438,583	4,438,583		4,243,425
Weighted Average Exercise Price
Balance at the beginning of period (in dollars per share)	7.01		$7.01	$7.15
Granted (in dollars per share)	4			$3.53
Cancelled (in dollars per share)	4.71			$6.61
Exercised (in dollars per share)	1.25			$0.95
Balance at the end of period (in dollars per share)	6.89	6.89		$7.01
2010 Equity Incentive Plan [Member] | Minimum [Member]
Stock-Based Compensation
Performance achievement probability (percentage)	50.00%
2010 Equity Incentive Plan [Member] | Maximum [Member]
Stock-Based Compensation
Increment in the number of shares reserved under the Plan annually (as a percent)	3.00%
Term of options granted under the plan	10 years
Performance achievement probability (percentage)	80.00%
2010 Equity Incentive Plan [Member] | Equity awards to employees
Options Outstanding
Granted (in shares)	316,000
2010 Equity Incentive Plan [Member] | Equity awards to employees | Minimum [Member]
Stock-Based Compensation
Vesting period	P9M
2010 Equity Incentive Plan [Member] | Equity awards to employees | Maximum [Member]
Stock-Based Compensation
Vesting period	P2Y
2010 Equity Incentive Plan [Member] | Equity awards to employees | Weighted Average [Member]
Stock-Based Compensation
Vesting period	P15M
2010 Equity Incentive Plan [Member] | Restricted stock
Stock-Based Compensation
Annual vesting percent					25.00%	25.00%	25.00%
Shares of restricted stock awarded					47,500	40,000	33,000
2010 Equity Incentive Plan [Member] | Restricted stock units
Stock-Based Compensation
Number of shares awarded	824,200
Award vesting rights, description	1
Employee share of common stock upon vesting	1
Options vested	0
Options cancelled	0
2010 Equity Incentive Plan [Member] | Restricted stock units | Minimum [Member]
Stock-Based Compensation
Vesting period	P14M
2010 Equity Incentive Plan [Member] | Restricted stock units | Maximum [Member]
Stock-Based Compensation
Vesting period	P2Y
2010 Equity Incentive Plan [Member] | Restricted stock units | Weighted Average [Member]
Stock-Based Compensation
Vesting period	P17M

StockBased_Compensation_Detail1

Stock-Based Compensation (Details 2) (Equity awards to employees, USD $)	3 Months Ended
In Thousands, unless otherwise specified	Mar. 31, 2015	Mar. 31, 2014
Stock Options and Restricted Stock to Employees
Total stock-based compensation	$527	$1,066
Research And Development Expense [Member]
Stock Options and Restricted Stock to Employees
Total stock-based compensation	295	288
General And Administrative Expense [Member]
Stock Options and Restricted Stock to Employees
Total stock-based compensation	$232	$778

StockBased_Compensation_Detail2

Stock-Based Compensation (Details 3) (USD $)	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Equity awards to employees
Additional information related to fair values of options granted
Risk-free interest rate (as a percent)	1.69%	2.27%
Expected volatility of common stock (as a percent)	56.40%	59.30%
Expected life	5 years 8 months 16 days	6 years 3 months
Dividend yield (as a percent)	0.00%	0.00%
Expiration term	10 years
Weighted average grant date fair value (in dollars per share)	$2.07
Intrinsic value of options exercised	$135,000	$557,000
Total stock-based compensation	527,000	1,066,000
Equity awards to employees | Research And Development Expense [Member]
Additional information related to fair values of options granted
Total stock-based compensation	295,000	288,000
Equity awards to employees | General And Administrative Expense [Member]
Additional information related to fair values of options granted
Total stock-based compensation	232,000	778,000
Equity awards to consultants
Additional information related to fair values of options granted
Risk-free interest rate (as a percent)	1.94%	2.68%
Expected volatility of common stock (as a percent)	57.20%	59.30%
Expected life	8 years 9 months 29 days	9 years 5 months 12 days
Dividend yield (as a percent)	0.00%	0.00%
Weighted average grant date fair value (in dollars per share)	$2.60	$0.73
Granted (in shares)	0	110,000
Total stock-based compensation	28,000	76,000
Equity awards to consultants | Research And Development Expense [Member]
Additional information related to fair values of options granted
Total stock-based compensation	1,000	79,000
Equity awards to consultants | General And Administrative Expense [Member]
Additional information related to fair values of options granted
Total stock-based compensation	$27,000	($3,000)

Commitments_and_Contingencies_

Commitments and Contingencies (Details) (USD $)	3 Months Ended
	Mar. 31, 2015
Commitment and Contingencies
License provisions for escalating minimum royalties	$2,200,000
Annual licensing payment	175,000
Other payments of royalty agreement occur during commercialization	950,000
Contingent license fee payable only upon a change in ownership of licensee	350,000
Minimum [Member]
Commitment and Contingencies
Royalty payment per unit (in dollar per unit)	25
Maximum [Member]
Commitment and Contingencies
Royalty payment per unit (in dollar per unit)	100
Milestone amounts paid to the licensors (as a percent)	40.00%
Annual payments to extend filing periods related to certain technology	$300,000

Net_Loss_Per_Common_Share_Deta

Net Loss Per Common Share (Details)	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Net Income Loss Per Common Share
Total weighted average shares excluded	24,860,447	4,397,082
Options to purchase common stock
Net Income Loss Per Common Share
Total weighted average shares excluded	4,320,093	4,293,388
Restricted stock
Net Income Loss Per Common Share
Total weighted average shares excluded	73,569	103,694
Restricted stock units
Net Income Loss Per Common Share
Total weighted average shares excluded	210,629
Warrants to purchase common stock
Net Income Loss Per Common Share
Total weighted average shares excluded	8,750,000
Common share equivalents from convertible notes
Net Income Loss Per Common Share
Total weighted average shares excluded	11,506,156