Corindus Vascular Robotics (CVRS) 10-Q 10 May 17 2017 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2017	May 08, 2017
Document And Entity Information
Entity Registrant Name	Corindus Vascular Robotics, Inc.
Entity Central Index Key	1,528,557
Document Type	10-Q
Trading Symbol	CVRS
Document Period End Date	Mar. 31, 2017
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding		187,080,921
Document Fiscal Period Focus	Q1
Document Fiscal Year Focus	2,017

UNAUDITED CONDENSED CONSOLIDATE

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Current Assets:
Cash and cash equivalents	$ 45,229	$ 9,183
Accounts receivable	396	384
Due from related party		250
Inventories, net	2,385	1,545
Prepaid expenses and other current assets	396	448
Total current assets	48,406	11,810
Property and equipment, net	952	982
Deposits and other assets	222	221
Total assets	49,580	13,013
Current Liabilities:
Accounts payable	2,283	2,463
Accrued expenses	2,046	1,794
Customer deposits	2,000
Deferred revenue	852	750
Current portion of long-term debt	2,643	3,755
Total current liabilities	9,824	8,762
Long-term liabilities:
Deferred revenue, net of current portion	110	129
Other liabilities	58	52
Total long-term liabilities	168	181
Total liabilities	9,992	8,943
Commitments and Contingencies
Stockholders' equity:
Preferred stock, par value $0.0001 par value; 10,000,000 shares authorized; none issued and outstanding
Common stock, $0.0001 par value; 250,000,000 shares authorized; 119,025,221 shares issued and outstanding at December 31, 2016 and 187,080,921 shares issued and outstanding at March 31, 2017	19	12
Additional paid-in capital	196,172	150,776
Accumulated deficit	(156,603)	(146,718)
Total stockholders' equity	39,588	4,070
Total liabilities and stockholders' equity	$ 49,580	$ 13,013

UNAUDITED CONDENSED CONSOLIDAT3

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Mar. 31, 2017	Dec. 31, 2016
Statement of Financial Position [Abstract]
Preferred stock, par value (in dollars per share)	$ 0.0001	$ 0.0001
Preferred stock, authorized shares	10,000,000	10,000,000
Preferred stock, issued shares	0	0
Preferred stock, outstanding shares	0	0
Common stock, par value (in dollars per share)	$ 0.0001	$ 0.0001
Common stock, authorized shares	250,000,000	250,000,000
Common stock, issued shares	187,080,921	119,025,221

UNAUDITED CONDENSED CONSOLIDAT4

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Income Statement [Abstract]
Revenue	$ 777	$ 1,108
Cost of revenue	1,892	1,078
Gross profit (loss)	(1,115)	30
Operating expenses:
Research and development	2,564	2,310
Selling, general and administrative	6,072	4,965
Total operating expense	8,636	7,275
Operating loss	(9,751)	(7,245)
Interest and other expense, net	(134)	(382)
Net loss	$ (9,885)	$ (7,627)
Net loss per share--basic and diluted (in dollars per share)	$ (0.07)	$ (0.06)
Weighted-average common shares used in computing net loss per share--basic and diluted (in shares)	131,880,187	119,046,243
Other comprehensive loss:
Net loss	$ (9,885)	$ (7,627)
Unrealized gain on marketable securities		18
Comprehensive loss	$ (9,885)	$ (7,609)

UNAUDITED CONDENSED CONSOLIDAT5

UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY - 3 months ended Mar. 31, 2017 - USD ($) $ in Thousands	Common Stock [Member]	Additional Paid-in Capital [Member]	Accumulated Deficit [Member]	Total
Beginning balance at Dec. 31, 2016	$ 12	$ 150,776	$ (146,718)	$ 4,070
Beginning balance, (in shares) at Dec. 31, 2016	119,025,221
Stock-based compensation expense		792		792
Issuance of common stock in connection with private placement of common stock, net of issuance costs of $415	$ 7	44,604		44,611
Issuance of common stock in connection with private placement of common stock, net of issuance costs of $415 (in shares)	68,055,700
Net loss			(9,885)	(9,885)
Ending balance at Mar. 31, 2017	$ 19	$ 196,172	$ (156,603)	$ 39,588
Ending balance, (in shares) at Mar. 31, 2017	187,080,921

UNAUDITED CONDENSED CONSOLIDAT6

UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY (Parenthetical) $ in Thousands	3 Months Ended
	Mar. 31, 2017USD ($)
Statement of Stockholders' Equity [Abstract]
Issuance cost	$ 415

UNAUDITED CONDENSED CONSOLIDAT7

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Operating activities
Net loss	$ (9,885)	$ (7,627)
Adjustments to reconcile net loss to net cash used in operating activities:
Loss on disposal of fixed assets		41
Depreciation and amortization	175	209
Stock-based compensation expense	792	346
Accretion of interest expense	57	130
Accretion of available-for-sale securities		(8)
Write down of inventories	201
Changes in operating assets and liabilities:
Accounts receivable	(12)	(393)
Due from related party	250	(125)
Prepaid expenses and other current assets	52	239
Inventories	(1,166)	(136)
Deposits and other assets	(1)	2
Accounts payable, accrued expenses, and other liabilities	(316)	919
Customer deposits	2,000
Deferred revenue	83	22
Net cash used in operating activities	(7,770)	(6,381)
Investing activities
Maturities of available-for-sale securities		8,873
Collections of notes receivable		65
Purchase of property and equipment	(20)	(18)
Net cash provided by (used in) investing activities	(20)	8,920
Financing activities
Proceeds from issuance of common stock, net of issuance costs	45,005
Proceeds from exercise of stock options		7
Payments on debt	(1,169)	(1,049)
Net cash provided by (used in) financing activities	43,836	(1,042)
Net increase in cash and cash equivalents	36,046	1,497
Cash and cash equivalents at beginning of period	9,183	22,142
Cash and cash equivalents at end of period	45,229	23,639
Supplemental Disclosure of Cash Flow Information:
Accrued statutory minimum withholding taxes on stock option exercises		410
Interest paid	89	$ 170
Transfer from inventories to property and equipment in the field	125
Deferred public offering costs in accounts payable and accrued expenses	$ 394

Nature of Operations

Nature of Operations	3 Months Ended
	Mar. 31, 2017
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Nature of Operations	Note 1 Nature of Operations The Company Corindus Vascular Robotics, Inc. (the “Company”), a Delaware corporation, acquired Corindus, Inc., a privately-held company, in a reverse acquisition on August 12, 2014. The Company’s corporate headquarters, manufacturing and research and development facility are in Waltham, Massachusetts and the Company is engaged in the design, manufacture and sales of precision vascular robotic-assisted systems (“CorPath System”) for use in interventional vascular procedures. Since its inception on March 21, 2002, the Company has devoted its efforts principally to research and development, business development activities, and raising capital. In July 2012, the Company received clearance from the United States Food and Drug Administration (“FDA”) to market its CorPath System in the United States and shipped its first commercial product under this clearance in September 2012. In 2013, the Company moved into the growth stage, investing in sales and marketing in order to build its customer base. While the Company is initially cleared for and is targeting percutaneous coronary intervention (“PCI”) procedures, the Company believes its technology platform has the capability to be developed in the future for other segments of the vascular market, including peripheral vascular, neurointerventional and other more complex cardiac interventions, such as structural heart. In October 2015, the Company announced that it had received 510(k) clearance from the FDA for its robotic-assisted CorPath System to be used during percutaneous coronary interventions performed via radial access. The 510(k) clearance was based on results of a clinical trial conducted at Spectrum Health, Grand Rapids, Michigan, and St. Joseph’s Hospital Health Center, Syracuse, New York. On March 29, 2016, the Company announced that it had received 510(k) clearance from the FDA for its robotic-assisted CorPath System for use in peripheral vascular interventions. This 510(k) clearance for peripheral intervention was based on results of a clinical trial known as the RAPID (Robotic-assisted Peripheral Intervention for Peripheral Artery Disease) Study conducted at Medical University Graz in Austria. On October 27, 2016, the Company announced that it had received 510(k) clearance from the FDA for its CorPath GRX System, the second generation of the CorPath System. The Company began commercial shipment of the CorPath GRX System in late January 2017. The Company’s future capital requirements will depend upon many factors, including progress with developing, manufacturing and marketing its technologies, the time and costs involved in preparing, filing, prosecuting, maintaining and enforcing patent claims and other proprietary rights, its ability to establish collaborative arrangements, marketing activities and competing technological and market developments, including regulatory changes affecting medical procedure reimbursement, and overall economic conditions in the Company’s target markets. Liquidity On March 15, 2017 the Company closed on a private placement for the sale of an aggregate of 68,055,700 shares of its common stock at $0.6616 per share, for an aggregate purchase price of approximately $45,026, before deducting offering expenses of approximately $415. In connection with the private placement, the Company entered into a registration rights agreement (the “Registration Rights Agreement”) with the investors participating in the financing, requiring the Company to register the resale of the shares sold in the private placement. Under the Registration Rights Agreement, the Company was required to file a registration statement with the Securities and Exchange Commission (“SEC”) within 45 days of the closing of the private placement. These shares were registered and the registration statement declared effective as of May 1, 2017. The Registration Rights Agreement also contains piggyback registration rights in favor of the investors and customary indemnification provisions. The Company has incurred losses since inception and has funded its operations primarily through the issuance of capital stock and debt. As of March 31, 2017, the Company had an accumulated deficit of $156,603 and net borrowings outstanding of $2,643, all of which are contractually due during 2017. As of March 31, 2017, the Company had cash and cash equivalents of $45,229 and working capital of $38,647. The Company believes that these available resources will be sufficient to meet the Company’s cash requirements for a least the next 12 months from May 10, 2017, including funding its anticipated losses and scheduled debt maturities. Additionally, the Company is in compliance with its debt covenant requirements as of March 31, 2017 and expects to remain in compliance throughout 2017. As the Company continues to incur losses, a transition to profitability is dependent upon achieving a level of revenues adequate to support the Company’s cost structure. The Company may never achieve profitability, and unless and until doing so, intends to fund future operations through additional debt or equity offerings. There can be no assurances, however, that additional funding will be available on terms acceptable to the Company, if at all. Accounting standards require management to evaluate the Company’s ability to continue as a going concern for a period of one year subsequent to the date of the filing of the Form 10-Q (“evaluation period”). As such, the Company has evaluated whether or not cash and cash equivalents on hand and cash generated through operating activities would be sufficient to sustain projected operating activities during the evaluation period. While the Company currently projects it has adequate resources to meet its requirements through at least the next twelve months from May 10, 2017, the Company projects that additional resources may be required subsequent to this time. Accordingly, the Company has concluded there is no uncertainty about its ability to continue as a going concern throughout the evaluation period. This assessment must be made by management on a quarterly basis based on the facts and circumstances then in existence.

Significant Accounting Policies

Significant Accounting Policies	3 Months Ended
	Mar. 31, 2017
Accounting Policies [Abstract]
Significant Accounting Policies	Note 2 Significant Accounting Policies Basis of Presentation In the opinion of management, the accompanying unaudited condensed consolidated financial statements include all adjustments, consisting of normal recurring adjustments, necessary for a fair presentation of the Company’s financial statements for interim periods in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”). The information included in this quarterly report on Form 10-Q should be read in conjunction with the audited consolidated financial statements and the accompanying notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2016 (“2016 Form 10-K”). The Company’s accounting policies are described in the “ Notes to Consolidated Financial Statements Principles of Consolidation The condensed consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries, Corindus, Inc. and Corindus Security Corporation. All intercompany transactions and balances have been eliminated in consolidation. The functional currency of both wholly-owned subsidiaries is the U.S. dollar and, therefore, the Company has not recorded any currency translation adjustments. In the fourth quarter of 2014, the Company participated in the formation of a not-for-profit, which was established to generate awareness of the health risks linked to the use of fluoroscopy in hospital catheterization. As of March 31, 2017, the Company’s Chief Executive Officer and one of its senior executives represented two of the three voting members of the board of directors of the entity. As a result, under the voting model used for the consolidation of related parties, which are controlled by a company, the Company has consolidated the financial statements of the entity, and recognized expenses of $42 and $12 for the three months ended March 31, 2016 and 2017, respectively, and other income of $15 for the three months ended March 31, 2017 with no such items recognized during the three months ended March 31, 2016. The entity had assets and liabilities of $22 and $17 respectively, on the Company’s balance sheet at March 31, 2017 and had both assets and liabilities of $23 on its balance sheet at December 31, 2016. Segment Information The Company operates in one business segment, which is the development, marketing and sales of robotic-assisted vascular interventions. Operating segments are identified as components of an enterprise about which separate discrete financial information is available for evaluation by the chief operating decision maker in making decisions regarding resource allocation and assessing performance. To date, the chief operating decision maker has made such decisions and assessed performance at the company level, as one segment. The Company’s chief operating decision maker is the Chief Executive Officer. Use of Estimates The process of preparing financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of assets and liabilities at the date of the financial statements. Such management estimates include those relating to revenue recognition, inventory valuation, assumptions used in the valuation of stock-based awards, and valuation allowances against deferred income tax assets. Actual results could differ from those estimates. Significant Customers The table below sets forth the Company’s customers that accounted for greater than 10% of its revenues for the three month periods ended March 31, 2016 and 2017, respectively: Three months ended Customer 2016 2017 A 71 % — % B 11 % — % C 1 % 33 % D — % 33 % Customer C accounted for 62% of the Company’s accounts receivable balance at March 31, 2017. Given the current revenue levels, in a period in which the Company sells a system, that customer is likely to represent a significant customer. The Company has no significant off-balance sheet risk such as foreign exchange contracts, option contracts, or other hedging arrangements. Fair Value Measurements In accordance with ASC 820, Fair Value Measurements and Disclosures, the Company generally defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (exit price). The Company uses a three-tier fair value hierarchy, which classifies the inputs used in measuring fair values. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy are described below: ● Level 1 — ● Level 2 ● Level 3 At both December 31, 2016 and March 31, 2017, the Company had only one asset that was measured at fair value on a recurring basis. The Company had cash equivalents totaling approximately $164 at both December 31, 2016 and March 31, 2017 that were valued based on Level l inputs. The Company’s financial instruments of deposits and notes receivable are carried at cost and approximate their fair values given the liquid nature of such items. The fair value of the Company’s long-term debt is calculated based on discounted cash flow analysis, which includes Level 3 inputs and fair value approximates recorded amounts. Cash Equivalents The Company considers highly liquid short-term investments, which consists of money market funds, to be cash equivalents. From time to time, the Company’s cash balances may exceed federal deposit insurance limits. Inventories Inventories are valued at the lower of cost or market using the first-in, first-out (FIFO) method. The Company routinely monitors the recoverability of its inventory and records the lower of cost or market reserves based on current selling prices and reserves for excess and obsolete inventory based on historical and forecasted usage, as required. Scrap and excess manufacturing costs are charged to cost of revenue as incurred and not capitalized as part of inventories. The Company only capitalizes pre-launch inventories when purchased for commercial use and it deems regulatory approval to be probable. Customer Deposits Customer deposits represent cash received from customers for whom related products have not been delivered or services have not yet been performed. Revenue Recognition The CorPath System is a capital medical device used by hospitals and surgical centers to perform heart catheterizations. Use of the CorPath System requires a sterile, single-use cassette (the “CorPath Cassette”), which is sold separately, for each procedure. Products are sold to customers with no rights of return. The Company recognizes revenue on the sale of products when the following criteria are met: ● Persuasive evidence of an arrangement exists ● The price to the buyer is fixed or determinable ● Collectability is reasonably assured ● Risk of loss transfers and the product is delivered In each arrangement, the Company is responsible for installation of the CorPath System and initial user training, which services are deemed essential to the functionality of the system. Therefore, the Company recognizes system revenue when the CorPath System is delivered and installed, and accepted by the end user customer. Each CorPath System is sold with a standard one year warranty, which provides that the CorPath System will function as intended and during that one year period, the Company will either replace the product or a portion thereof or provide the necessary repair service during the Company’s normal service hours. The Company accrues for the estimated costs of the warranty once the CorPath System revenue is recognized. The Company generally enters into multiple element arrangements, which include the sale of a CorPath System with an initial order of CorPath Cassettes, and may include either a basic service plan or a premium service plan. The basic service plan provides for an extended warranty period and the premium service plan provides for the extended warranty as well as component upgrades, when and if they become available during the service period. Deliverables, which are accounted for as separate units of accounting under multiple-element arrangements include: (a) the CorPath System, including installation and initial training, which are subject to customer acceptance and (b) the initial shipment of CorPath Cassettes to the customer, and may include either (c) an extended warranty or (d) component upgrades. The Company recognizes revenue on multiple-element arrangements in accordance with ASU 2009-13, Revenue Recognition (Topic 605): Multiple Deliverable Revenue Arrangements, based on the estimated selling price of each element. In accordance with ASU 2009-13, the Company uses vendor-specific objective evidence (“VSOE”), if available, to determine the selling price of each element. If VSOE is not available, the Company uses third-party evidence (“TPE”) to determine the selling price. If TPE is not available, the Company uses its best estimate to develop the estimated selling price (“BESP”). The Company uses BESP to determine the selling price of its systems as well as the basic and premium service plans. BESP is determined based on estimated costs plus a reasonable margin, and has generally been consistent with the price charged to the customer for such products and services. The determination of BESP also considers the price of the service plans charged to customers when such services are sold separately in subsequent transactions. The Company also uses BESP to determine the selling price of the initial order of cassettes, which considers the price at which it charges its customers when the cassettes are sold separately. Revenue related to basic and premium service plans is recognized on a straight-line basis over the life of the service contract. Revenue from accessories is recorded upon delivery and services provided by the Company outside of a basic or premium service contract are recognized as the services are provided. If a revenue arrangement contains an undelivered element, such as a specified upgrade, revenues are deferred until delivery is complete. There are no performance, cancellation, termination, and refund-type provisions under the Company’s multiple element arrangements. On January 21, 2011, the Company entered into a distributor agreement with Philips Medical Systems Nederland, B.V. (“Philips”) appointing Philips to be the sole worldwide distributor for the promotion and sale of the Company’s CorPath System. Under the agreement, Philips sold the equipment directly to the end user and the Company was responsible for installation and initial training. Revenue was recognized on a net basis based on the amount billed to Philips and upon acceptance of the system by the end-user customer. This agreement with Philips expired on August 7, 2014. The Company continues to sell CorPath Systems through Philips on a sale by sale basis under a non-exclusive arrangement under mutually agreeable terms, which may include a continued level of discounted pricing, until such time the Company either executes a new distribution arrangement with Philips or the Company no longer does business with Philips. At December 31, 2016, there was $250 outstanding from Philips and at March 31, 2017, there were no amounts outstanding from Philips included in due from related party in the accompanying condensed consolidated balance sheets. The Company also sells CorPath Cassettes under a CorPath Utilization Program (“CUP”), which is a multi-year arrangement that involves the placement of a CorPath System at a customer’s site free of charge and the customer agrees to purchase a minimum number of CorPath Cassettes each month at a premium over the regular price. The Company records revenue upon shipment of the cassettes based on the selling price of the CorPath Cassettes. The system is capitalized as field equipment in property and equipment and is depreciated on a straight line basis through cost of revenue over the estimated useful life of the system, which generally approximates the length of the CUP program contract, which is typically 36 months. At times, the Company may provide products to customers in exchange for future purchases of products and provision of services. The cost of any such products are included in cost of revenue in the accompanying condensed consolidated statements of operations. The Company also uses a One-Stent program to demonstrate its confidence in the CorPath System’s ability to help accurately measure anatomy and precisely place only one stent per lesion. The Company provides eligible customers registered under the program a $1 credit against future CorPath Cassette purchases for a qualifying CorPath PCI procedure which uses more than one stent per lesion. The estimated cost of honoring the potential obligation under the stent program is recorded as a reduction of revenue at the time of shipment. These costs have not been significant to date. The Company records shipping and handling costs as a selling expense in the period incurred, and records payments from customers for shipping costs as a reduction of selling expenses. Such amounts have not been material in the periods presented. Warrants The Company reviews the terms of warrants issued in connection with the applicable accounting guidance and classifies warrants as a long-term liability on the consolidated balance sheets if the warrant may conditionally obligate the Company to transfer assets, including repurchase of the Company’s capital stock, at some point in the future. Warrants to purchase shares of redeemable convertible preferred stock met these criteria and therefore required liability-classification. The Company classifies warrants within stockholders’ equity on the consolidated balance sheets if the warrants are considered to be indexed to the Company’s own capital stock, and otherwise would be recorded in stockholders’ equity. The table below is a summary of the Company's warrant activity during the three months ended March 31, 2017: Number of Warrants Weighted Average Exercise Price Balance at December 31, 2016 5,083,219 $ 1.08 Granted — — Exercised — — Expired — — Outstanding at March 31, 2017 5,083,219 $ 1.08 Stock-Based Compensation The Company recognizes compensation costs resulting from the issuance of service stock-based awards to employees and directors as an expense in the consolidated statements of operations over the requisite service period based on a measurement of fair value for each stock award. The awards issued to date have primarily been stock options with service-based vesting periods over two or four years. During 2016, the Company issued certain stock-based awards that contain both performance and service-based vesting conditions which vest over periods of up to 25 months. The Company records expense on these awards when it becomes probable that the performance condition and requisite service will be met. The Company recognizes compensation costs resulting from the issuance of stock-based awards to non-employees as an expense in the consolidated statements of operations over the service period based on a measurement of fair value for each stock award at each performance date and period end. The Company estimates forfeitures when initially recognizing expenses for share-based payment awards. Income Taxes The Company accounts for income taxes using the liability method, whereby deferred tax asset and liability account balances are determined based on differences between financial reporting and tax basis of assets and liabilities and are measured using the enacted tax rates that will be in effect when the differences are expected to reverse. The Company provides a valuation allowance, if necessary, to reduce deferred tax assets to amounts that are realizable. Consistent with all prior periods, the Company did not record any income tax benefit for its operating losses for the three months ended March 31, 2016 and 2017 due to the uncertainty regarding future taxable income. Comprehensive Loss Comprehensive loss is comprised of net loss and changes in the unrealized gains and losses on marketable securities. Accumulated other comprehensive loss, a component of stockholders’ equity, is comprised of the cumulative unrealized gains and/or losses from the change in fair market value of the Company’s marketable securities. Accumulated other comprehensive loss was $0 at both December 31, 2016 and March 31, 2017. New Accounting Pronouncements In May 2014, August 2015, April 2016 and May 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2014-09, Revenue from Contracts with Customers, ASU 2015-14, Revenue from Contracts with Customers, Deferral of the Effective Date, ASU 2016-10, Revenue from Contracts with Customers, Identifying Performance Obligations and Licensing, and ASU 2016-12, Revenue from Contracts with Customers, Narrow-Scope Improvements and Practical Expedients, respectively, (collectively referred to as "Topic 606"). Topic 606 outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers, and supersedes current revenue recognition guidance, including industry-specific guidance. It also requires entities to disclose both quantitative and qualitative information that enable financial statements users to understand the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. The amendments in these ASUs are effective for fiscal years, and interim periods within those years, beginning after December 15, 2017. Early adoption is permitted for annual periods beginning after December 15, 2016, but the Company has elected not to early adopt. The two permitted transition methods under the new standard are the full retrospective method, in which case the standard would be applied to each prior reporting period presented and the cumulative effect of applying the standard would be recognized at the earliest period shown, or the modified retrospective method, in which case the cumulative effect of applying the standard would be recognized at the date of initial application. The Company will adopt the guidance on January 1, 2018 and currently intends to elect the modified retrospective transition approach. The Company is in the process of evaluating the impact of the adoption of Topic 606 on its consolidated financial statements. In July 2015, the FASB issued ASU 2015-11, Inventory (Topic 330): Simplifying the Measurement of Inventory. Under this accounting guidance, inventory is measured at the lower of cost and net realizable value and other options that currently exist for market value will be eliminated. ASU 2015-11 defines net realizable value as the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. No other changes were made to the current guidance on inventory measurement. The guidance is effective for annual reporting periods and interim periods within those annual reporting periods beginning after December 15, 2016. The Company adopted this standard effective January 1, 2017. There was no impact upon the initial adoption as the Company had no inventories which required adjustment to the lower of cost or market at January 1, 2017. However, during the three months ended March 31, 2017, the Company recorded lower of cost or market reserves totaling $201 relating to activity during the first quarter of 2017. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842), which amends leasing accounting requirements. The new standard requires lessee recognition on the balance sheet of a right-of-use asset and a lease liability, initially measured at the present value of the lease payments. It further requires recognition in the income statement of a single lease cost, calculated so that the cost of the lease is allocated over the lease term generally on a straight-line basis. Finally, it requires classification of all cash payments within operating activities in the statement of cash flows. It is effective for fiscal years commencing after December 15, 2018 and early adoption is permitted. The Company is currently evaluating the impact of this standard on its consolidated financial statements. In March 2016, the FASB issued ASU 2016-09, Compensation-Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting, which simplifies several aspects related to the accounting and presentation of stock-based payments. The amendments require entities to record all tax effects related to stock-based payments at settlement or expiration through the income statement and the windfall tax benefit to be recorded when it arises, subject to normal valuation allowance considerations. All tax-related cash flows resulting from the stock-based payments are required to be reported as operating activities in the statement of cash flows. The updates relating to the income tax effects of the stock-based payments including the cash flow presentation was adopted prospectively. Further, the amendments allow the entities to make an accounting policy election to either estimate forfeitures or recognize forfeitures as they occur. The Company adopted this standard on January 1, 2017, and since the Company historically has maintained a full valuation allowance on its net deferred tax asset, there was no net impact to the Company’s accumulated deficit or on its net loss per share from the adoption of ASU 2016-09. As such, adoption of this standard did not have any impact on the Company’s unaudited condensed consolidated financial statements. The Company elected to continue its practice of estimating forfeitures when recognizing expense for share-based payment awards in each period. In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230), Classification of Certain Cash Receipts and Cash Payments, which reduces diversity in how certain cash receipts and cash payments are presented and classified in the Consolidated Statements of Cash Flows. It is effective for fiscal years, and interim periods within those years, beginning after December 15, 2017 and will be required to be applied retrospectively, with early adoption permitted. The Company is currently evaluating the impact of this update on its consolidated financial statements and related disclosures.

Inventories

Inventories	3 Months Ended
	Mar. 31, 2017
Inventory Disclosure [Abstract]
Inventories	Note 3 Inventories Inventories are valued at the lower of cost or market using the FIFO method and consist of the following: December 31, March 31, Raw material $ 578 $ 1,158 Work in progress 163 470 Finished goods 804 757 Total $ 1,545 $ 2,385 The Company wrote down inventories by $201 during the three months ended March 31, 2017.

Long-Term Debt

Long-Term Debt	3 Months Ended
	Mar. 31, 2017
Debt Disclosure [Abstract]
Long-Term Debt	Note 4 Long-Term Debt On June 11, 2014, the Company entered into a Loan and Security Agreement pursuant to which the lender agreed to make available to the Company $10,000 in two separate $5,000 loans under secured promissory notes. The initial note was made on June 11, 2014 in an aggregate principal amount equal to $5,000 (the “Initial Promissory Note”) and is repayable in equal monthly installments of principal and interest over 27 months beginning on July 1, 2015. Prior to July 1, 2015, the Company was required to make interest only payments. The Initial Promissory Note bears interest at a rate equal to the greater of (a) 11.25% or (b) 11.25% plus the Wall Street Journal Prime Rate, less 3.25%, and includes an additional interest payment of $125 due no later than October 1, 2017, which is accreted over the term of the loan. The effective interest rate of the Initial Promissory Note was 12.0% at March 31, 2017. On December 31, 2014, the Company borrowed the additional $5,000 (the “Second Promissory Note”) under the Loan and Security Agreement. The Second Promissory note is also repayable in equal monthly installments of principal and interest over 27 months beginning on July 1, 2015. Prior to July 1, 2015, the Company was required to make interest only payments. The Second Promissory Note bears interest at a rate equal to the greater of (a) 9.95% or (b) 9.95% plus the Wall Street Journal Prime Rate, less 3.25%, and also includes an additional interest payment of $125 due no later than October 1, 2017, which is accreted over the term of the loan. The effective interest rate of the Second Promissory Note was 10.7% at March 31, 2017. The notes are secured by substantially all the assets of the Company. In connection with the Initial Promissory Note, the Company issued the lender warrants to purchase 177,514 shares of the Company’s common stock at an exercise price of $1.41 per share. The fair value of the warrant issued to the lender was determined to be $230 at the date of issuance, and was recorded as a discount on the debt. Additionally, in connection with the Second Promissory Note, the Company issued the lender warrants to purchase 177,514 shares of the Company’s common stock at an exercise price of $1.41 per share. The fair value of the warrant issued to the lender was determined to be $619 at the date of issuance, and was recorded as a discount on the debt. The Company amortizes the debt discount to interest expense over the term of the debt using the effective interest method. The Loan and Security Agreement also contains covenants which include certain restrictions with respect to subsequent indebtedness, liens, loans and investments, asset sales and share repurchases and other restricted payments, subject to certain exceptions. The Loan and Security Agreement also contains financial reporting obligations. An event of default under the Loan and Security Agreement includes, but is not limited to, breach of covenants, insolvency, and occurrence of any default under any agreement or obligation of the Company. In addition, the Loan and Security Agreement contains a customary material adverse effect clause which states that in the event of a material adverse effect, an event of default would occur and the lender has the option to accelerate and demand payment of all or any part of the loan. A material adverse effect is defined in the Loan and Security Agreement as a material change in the Company’s business, operations, properties, assets or financial condition or a material impairment of its ability to perform all obligations under its Loan and Security Agreement. The Company was not in default of any conditions under the Loan and Security Agreements as of March 31, 2017.

Stock-Based Compensation

Stock-Based Compensation	3 Months Ended
	Mar. 31, 2017
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Stock-Based Compensation	Note 5 Stock-based Compensation Stock-based compensation expense was allocated based on the employees’ or non-employees’ function as follows: Three Months Ended 2016 2017 Research and development $ 33 $ 56 Selling, general and administrative 313 736 Total $ 346 $ 792 The Company granted options to purchase 8,366,906 shares of common stock at exercise prices ranging from $0.99 to $2.03 per share during the three months ended March 31, 2016. The weighted-average fair value of the stock options granted was $0.72 per share for the three months ended March 31, 2016. The Company did not grant any options to purchase shares of common stock during the three months ended March 31, 2017. The following assumptions were used to estimate the fair value of stock options granted using the Black-Scholes Merton option-pricing model for the three months ended March 31, 2016: Risk-free interest 1.44%-1.58% Expected term in years 6.08 Expected volatility 52% Expected dividend yield 0%

Net Loss per Share

Net Loss per Share	3 Months Ended
	Mar. 31, 2017
Earnings Per Share [Abstract]
Net Loss per Share	Note 6 Net Loss per Share Basic net loss per share is computed by dividing net loss by the weighted average shares of common stock outstanding for each period. Diluted net loss per share is the same as basic net loss per share since the Company has net losses for each period presented. The following common stock equivalents were excluded from the calculation of diluted net loss per share for the periods indicated because including them would have had an anti-dilutive effect: Three Months Ended 2016 2017 Options to purchase common stock 13,703,113 17,417,388 Warrants to purchase common stock 5,083,219 5,083,219 Total 18,786,332 22,500,607

Related Party Transactions

Related Party Transactions	3 Months Ended
	Mar. 31, 2017
Related Party Transactions [Abstract]
Related Party Transactions	Note 7 Related Party Transactions Philips Medical Systems Nederland B.V. On January 21, 2011, Corindus, Inc. entered into a distributor agreement with Philips Medical Systems Nederland B.V. (“Philips”) appointing Philips to be a distributor for the promotion and sale of the Company’s CorPath System. The agreement was terminated on August 7, 2014. The Company continues to sell CorPath Systems through Philips on a sale by sale basis under a non-exclusive arrangement under mutually agreeable terms, which may include a continued level of discounted pricing, until such time the Company either executes a new distribution arrangement with Philips or the Company no longer does business with Philips. For the three month periods ended March 31, 2016, the Company recorded revenues of $125 from shipments to Philips. There were no revenues from or shipments to Philips during the three months ended March 31, 2017. At December 31, 2016, Philips owed the Company $250 resulting from selling activity under the agreement. There were no amounts outstanding from Philips at March 31, 2017. Shareholder Loans On June 14, 2010, the Company loaned funds to certain stockholders of the Company for tax payments to be made to the Israel Tax Authority in connection with a tax ruling related to a reorganization that took place in 2008 and the Company received non-interest bearing notes receivable, which documented such loans. The total amount of notes receivable issued was $145. The notes receivable are repayable upon the disposition of the Company’s common stock by the existing shareholder. Notes receivable amounted to $71 at both December 31, 2016 and March 31, 2017, and are included in prepaid expenses and other current assets in the accompanying condensed consolidated balance sheets. The Company does not believe there is any significant collection risk associated with the notes receivable at March 31, 2017 as substantially all amounts were collected in April 2017. Private Placement On March 15, 2017, the Company closed on a private placement for the sale of an aggregate of 68,055,700 shares of its common stock at $0.6616 per share, for an aggregate purchase price of approximately $45,026, before deducting offering expenses of approximately $415. The financing round involved a syndicate of top-tier healthcare investors. Existing key investors who participated in this financing including HealthCor Partners Management, the Company’s largest shareholder, Royal Philips, an affiliate of Philips, and Energy Capital. New investors whose participation in this financing resulted in beneficial ownership of greater than 5% of the Company’s common stock included Consonance Capital and Hudson Executive Capital, L.P.

Significant Accounting Polici15

Significant Accounting Policies (Policies)	3 Months Ended
	Mar. 31, 2017
Accounting Policies [Abstract]
Principles of Consolidation	Principles of Consolidation The condensed consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries, Corindus, Inc. and Corindus Security Corporation. All intercompany transactions and balances have been eliminated in consolidation. The functional currency of both wholly-owned subsidiaries is the U.S. dollar and, therefore, the Company has not recorded any currency translation adjustments. In the fourth quarter of 2014, the Company participated in the formation of a not-for-profit, which was established to generate awareness of the health risks linked to the use of fluoroscopy in hospital catheterization. As of March 31, 2017, the Company’s Chief Executive Officer and one of its senior executives represented two of the three voting members of the board of directors of the entity. As a result, under the voting model used for the consolidation of related parties, which are controlled by a company, the Company has consolidated the financial statements of the entity, and recognized expenses of $42 and $12 for the three months ended March 31, 2016 and 2017, respectively, and other income of $15 for the three months ended March 31, 2017 with no such items recognized during the three months ended March 31, 2016. The entity had assets and liabilities of $22 and $17 respectively, on the Company’s balance sheet at March 31, 2017 and had both assets and liabilities of $23 on its balance sheet at December 31, 2016.
Segment Information	Segment Information The Company operates in one business segment, which is the development, marketing and sales of robotic-assisted vascular interventions. Operating segments are identified as components of an enterprise about which separate discrete financial information is available for evaluation by the chief operating decision maker in making decisions regarding resource allocation and assessing performance. To date, the chief operating decision maker has made such decisions and assessed performance at the company level, as one segment. The Company’s chief operating decision maker is the Chief Executive Officer.
Use of Estimates	Use of Estimates The process of preparing financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of assets and liabilities at the date of the financial statements. Such management estimates include those relating to revenue recognition, inventory valuation, assumptions used in the valuation of stock-based awards, and valuation allowances against deferred income tax assets. Actual results could differ from those estimates.
Significant Customers	Significant Customers The table below sets forth the Company’s customers that accounted for greater than 10% of its revenues for the three month periods ended March 31, 2016 and 2017, respectively: Three months ended Customer 2016 2017 A 71 % — % B 11 % — % C 1 % 33 % D — % 33 % Customer C accounted for 62% of the Company’s accounts receivable balance at March 31, 2017. Given the current revenue levels, in a period in which the Company sells a system, that customer is likely to represent a significant customer. The Company has no significant off-balance sheet risk such as foreign exchange contracts, option contracts, or other hedging arrangements.
Fair Value Measurements	Fair Value Measurements In accordance with ASC 820, Fair Value Measurements and Disclosures, the Company generally defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (exit price). The Company uses a three-tier fair value hierarchy, which classifies the inputs used in measuring fair values. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy are described below: ● Level 1 — ● Level 2 ● Level 3 At both December 31, 2016 and March 31, 2017, the Company had only one asset that was measured at fair value on a recurring basis. The Company had cash equivalents totaling approximately $164 at both December 31, 2016 and March 31, 2017 that were valued based on Level l inputs. The Company’s financial instruments of deposits and notes receivable are carried at cost and approximate their fair values given the liquid nature of such items. The fair value of the Company’s long-term debt is calculated based on discounted cash flow analysis, which includes Level 3 inputs and fair value approximates recorded amounts.
Cash Equivalents	Cash Equivalents The Company considers highly liquid short-term investments, which consists of money market funds, to be cash equivalents. From time to time, the Company’s cash balances may exceed federal deposit insurance limits.
Inventories	Inventories Inventories are valued at the lower of cost or market using the first-in, first-out (FIFO) method. The Company routinely monitors the recoverability of its inventory and records the lower of cost or market reserves based on current selling prices and reserves for excess and obsolete inventory based on historical and forecasted usage, as required. Scrap and excess manufacturing costs are charged to cost of revenue as incurred and not capitalized as part of inventories. The Company only capitalizes pre-launch inventories when purchased for commercial use and it deems regulatory approval to be probable.
Customer Deposits	Customer Deposits Customer deposits represent cash received from customers for whom related products have not been delivered or services have not yet been performed.
Revenue Recognition	Revenue Recognition The CorPath System is a capital medical device used by hospitals and surgical centers to perform heart catheterizations. Use of the CorPath System requires a sterile, single-use cassette (the “CorPath Cassette”), which is sold separately, for each procedure. Products are sold to customers with no rights of return. The Company recognizes revenue on the sale of products when the following criteria are met: ● Persuasive evidence of an arrangement exists ● The price to the buyer is fixed or determinable ● Collectability is reasonably assured ● Risk of loss transfers and the product is delivered In each arrangement, the Company is responsible for installation of the CorPath System and initial user training, which services are deemed essential to the functionality of the system. Therefore, the Company recognizes system revenue when the CorPath System is delivered and installed, and accepted by the end user customer. Each CorPath System is sold with a standard one year warranty, which provides that the CorPath System will function as intended and during that one year period, the Company will either replace the product or a portion thereof or provide the necessary repair service during the Company’s normal service hours. The Company accrues for the estimated costs of the warranty once the CorPath System revenue is recognized. The Company generally enters into multiple element arrangements, which include the sale of a CorPath System with an initial order of CorPath Cassettes, and may include either a basic service plan or a premium service plan. The basic service plan provides for an extended warranty period and the premium service plan provides for the extended warranty as well as component upgrades, when and if they become available during the service period. Deliverables, which are accounted for as separate units of accounting under multiple-element arrangements include: (a) the CorPath System, including installation and initial training, which are subject to customer acceptance and (b) the initial shipment of CorPath Cassettes to the customer, and may include either (c) an extended warranty or (d) component upgrades. The Company recognizes revenue on multiple-element arrangements in accordance with ASU 2009-13, Revenue Recognition (Topic 605): Multiple Deliverable Revenue Arrangements, based on the estimated selling price of each element. In accordance with ASU 2009-13, the Company uses vendor-specific objective evidence (“VSOE”), if available, to determine the selling price of each element. If VSOE is not available, the Company uses third-party evidence (“TPE”) to determine the selling price. If TPE is not available, the Company uses its best estimate to develop the estimated selling price (“BESP”). The Company uses BESP to determine the selling price of its systems as well as the basic and premium service plans. BESP is determined based on estimated costs plus a reasonable margin, and has generally been consistent with the price charged to the customer for such products and services. The determination of BESP also considers the price of the service plans charged to customers when such services are sold separately in subsequent transactions. The Company also uses BESP to determine the selling price of the initial order of cassettes, which considers the price at which it charges its customers when the cassettes are sold separately. Revenue related to basic and premium service plans is recognized on a straight-line basis over the life of the service contract. Revenue from accessories is recorded upon delivery and services provided by the Company outside of a basic or premium service contract are recognized as the services are provided. If a revenue arrangement contains an undelivered element, such as a specified upgrade, revenues are deferred until delivery is complete. There are no performance, cancellation, termination, and refund-type provisions under the Company’s multiple element arrangements. On January 21, 2011, the Company entered into a distributor agreement with Philips Medical Systems Nederland, B.V. (“Philips”) appointing Philips to be the sole worldwide distributor for the promotion and sale of the Company’s CorPath System. Under the agreement, Philips sold the equipment directly to the end user and the Company was responsible for installation and initial training. Revenue was recognized on a net basis based on the amount billed to Philips and upon acceptance of the system by the end-user customer. This agreement with Philips expired on August 7, 2014. The Company continues to sell CorPath Systems through Philips on a sale by sale basis under a non-exclusive arrangement under mutually agreeable terms, which may include a continued level of discounted pricing, until such time the Company either executes a new distribution arrangement with Philips or the Company no longer does business with Philips. At December 31, 2016, there was $250 outstanding from Philips and at March 31, 2017, there were no amounts outstanding from Philips included in due from related party in the accompanying condensed consolidated balance sheets. The Company also sells CorPath Cassettes under a CorPath Utilization Program (“CUP”), which is a multi-year arrangement that involves the placement of a CorPath System at a customer’s site free of charge and the customer agrees to purchase a minimum number of CorPath Cassettes each month at a premium over the regular price. The Company records revenue upon shipment of the cassettes based on the selling price of the CorPath Cassettes. The system is capitalized as field equipment in property and equipment and is depreciated on a straight line basis through cost of revenue over the estimated useful life of the system, which generally approximates the length of the CUP program contract, which is typically 36 months. At times, the Company may provide products to customers in exchange for future purchases of products and provision of services. The cost of any such products are included in cost of revenue in the accompanying condensed consolidated statements of operations. The Company also uses a One-Stent program to demonstrate its confidence in the CorPath System’s ability to help accurately measure anatomy and precisely place only one stent per lesion. The Company provides eligible customers registered under the program a $1 credit against future CorPath Cassette purchases for a qualifying CorPath PCI procedure which uses more than one stent per lesion. The estimated cost of honoring the potential obligation under the stent program is recorded as a reduction of revenue at the time of shipment. These costs have not been significant to date. The Company records shipping and handling costs as a selling expense in the period incurred, and records payments from customers for shipping costs as a reduction of selling expenses. Such amounts have not been material in the periods presented.
Warrants	Warrants The Company reviews the terms of warrants issued in connection with the applicable accounting guidance and classifies warrants as a long-term liability on the consolidated balance sheets if the warrant may conditionally obligate the Company to transfer assets, including repurchase of the Company’s capital stock, at some point in the future. Warrants to purchase shares of redeemable convertible preferred stock met these criteria and therefore required liability-classification. The Company classifies warrants within stockholders’ equity on the consolidated balance sheets if the warrants are considered to be indexed to the Company’s own capital stock, and otherwise would be recorded in stockholders’ equity. The table below is a summary of the Company's warrant activity during the three months ended March 31, 2017: Number of Warrants Weighted Average Exercise Price Balance at December 31, 2016 5,083,219 $ 1.08 Granted — — Exercised — — Expired — — Outstanding at March 31, 2017 5,083,219 $ 1.08
Stock-Based Compensation	Stock-Based Compensation The Company recognizes compensation costs resulting from the issuance of service stock-based awards to employees and directors as an expense in the consolidated statements of operations over the requisite service period based on a measurement of fair value for each stock award. The awards issued to date have primarily been stock options with service-based vesting periods over two or four years. During 2016, the Company issued certain stock-based awards that contain both performance and service-based vesting conditions which vest over periods of up to 25 months. The Company records expense on these awards when it becomes probable that the performance condition and requisite service will be met. The Company recognizes compensation costs resulting from the issuance of stock-based awards to non-employees as an expense in the consolidated statements of operations over the service period based on a measurement of fair value for each stock award at each performance date and period end. The Company estimates forfeitures when initially recognizing expenses for share-based payment awards.
Income Taxes	Income Taxes The Company accounts for income taxes using the liability method, whereby deferred tax asset and liability account balances are determined based on differences between financial reporting and tax basis of assets and liabilities and are measured using the enacted tax rates that will be in effect when the differences are expected to reverse. The Company provides a valuation allowance, if necessary, to reduce deferred tax assets to amounts that are realizable. Consistent with all prior periods, the Company did not record any income tax benefit for its operating losses for the three months ended March 31, 2016 and 2017 due to the uncertainty regarding future taxable income.
Comprehensive Loss	Comprehensive Loss Comprehensive loss is comprised of net loss and changes in the unrealized gains and losses on marketable securities. Accumulated other comprehensive loss, a component of stockholders’ equity, is comprised of the cumulative unrealized gains and/or losses from the change in fair market value of the Company’s marketable securities. Accumulated other comprehensive loss was $0 at both December 31, 2016 and March 31, 2017.
New Accounting Pronouncements	New Accounting Pronouncements In May 2014, August 2015, April 2016 and May 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2014-09, Revenue from Contracts with Customers, ASU 2015-14, Revenue from Contracts with Customers, Deferral of the Effective Date, ASU 2016-10, Revenue from Contracts with Customers, Identifying Performance Obligations and Licensing, and ASU 2016-12, Revenue from Contracts with Customers, Narrow-Scope Improvements and Practical Expedients, respectively, (collectively referred to as "Topic 606"). Topic 606 outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers, and supersedes current revenue recognition guidance, including industry-specific guidance. It also requires entities to disclose both quantitative and qualitative information that enable financial statements users to understand the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. The amendments in these ASUs are effective for fiscal years, and interim periods within those years, beginning after December 15, 2017. Early adoption is permitted for annual periods beginning after December 15, 2016, but the Company has elected not to early adopt. The two permitted transition methods under the new standard are the full retrospective method, in which case the standard would be applied to each prior reporting period presented and the cumulative effect of applying the standard would be recognized at the earliest period shown, or the modified retrospective method, in which case the cumulative effect of applying the standard would be recognized at the date of initial application. The Company will adopt the guidance on January 1, 2018 and currently intends to elect the modified retrospective transition approach. The Company is in the process of evaluating the impact of the adoption of Topic 606 on its consolidated financial statements. In July 2015, the FASB issued ASU 2015-11, Inventory (Topic 330): Simplifying the Measurement of Inventory. Under this accounting guidance, inventory is measured at the lower of cost and net realizable value and other options that currently exist for market value will be eliminated. ASU 2015-11 defines net realizable value as the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. No other changes were made to the current guidance on inventory measurement. The guidance is effective for annual reporting periods and interim periods within those annual reporting periods beginning after December 15, 2016. The Company adopted this standard effective January 1, 2017. There was no impact upon the initial adoption as the Company had no inventories which required adjustment to the lower of cost or market at January 1, 2017. However, during the three months ended March 31, 2017, the Company recorded lower of cost or market reserves totaling $201 relating to activity during the first quarter of 2017. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842), which amends leasing accounting requirements. The new standard requires lessee recognition on the balance sheet of a right-of-use asset and a lease liability, initially measured at the present value of the lease payments. It further requires recognition in the income statement of a single lease cost, calculated so that the cost of the lease is allocated over the lease term generally on a straight-line basis. Finally, it requires classification of all cash payments within operating activities in the statement of cash flows. It is effective for fiscal years commencing after December 15, 2018 and early adoption is permitted. The Company is currently evaluating the impact of this standard on its consolidated financial statements. In March 2016, the FASB issued ASU 2016-09, Compensation-Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting, which simplifies several aspects related to the accounting and presentation of stock-based payments. The amendments require entities to record all tax effects related to stock-based payments at settlement or expiration through the income statement and the windfall tax benefit to be recorded when it arises, subject to normal valuation allowance considerations. All tax-related cash flows resulting from the stock-based payments are required to be reported as operating activities in the statement of cash flows. The updates relating to the income tax effects of the stock-based payments including the cash flow presentation was adopted prospectively. Further, the amendments allow the entities to make an accounting policy election to either estimate forfeitures or recognize forfeitures as they occur. The Company adopted this standard on January 1, 2017, and since the Company historically has maintained a full valuation allowance on its net deferred tax asset, there was no net impact to the Company’s accumulated deficit or on its net loss per share from the adoption of ASU 2016-09. As such, adoption of this standard did not have any impact on the Company’s unaudited condensed consolidated financial statements. The Company elected to continue its practice of estimating forfeitures when recognizing expense for share-based payment awards in each period. In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230), Classification of Certain Cash Receipts and Cash Payments, which reduces diversity in how certain cash receipts and cash payments are presented and classified in the Consolidated Statements of Cash Flows. It is effective for fiscal years, and interim periods within those years, beginning after December 15, 2017 and will be required to be applied retrospectively, with early adoption permitted. The Company is currently evaluating the impact of this update on its consolidated financial statements and related disclosures.

Significant Accounting Polici16

Significant Accounting Policies (Tables)	3 Months Ended
	Mar. 31, 2017
Accounting Policies [Abstract]
Schedule of customers that accounted for greater than 10% of revenues	The table below sets forth the Company’s customers that accounted for greater than 10% of its revenues for the three month periods ended March 31, 2016 and 2017, respectively: Three months ended Customer 2016 2017 A 71 % — % B 11 % — % C 1 % 33 % D — % 33 %
Schedule of rollforward of warrant activity	The table below is a summary of the Company's warrant activity during the three months ended March 31, 2017: Number of Warrants Weighted Average Exercise Price Balance at December 31, 2016 5,083,219 $ 1.08 Granted — — Exercised — — Expired — — Outstanding at March 31, 2017 5,083,219 $ 1.08

Inventories (Tables)

Inventories (Tables)	3 Months Ended
	Mar. 31, 2017
Inventory Disclosure [Abstract]
Schedule of inventories	Inventories are valued at the lower of cost or market using the FIFO method and consist of the following: December 31, March 31, Raw material $ 578 $ 1,158 Work in progress 163 470 Finished goods 804 757 Total $ 1,545 $ 2,385

Stock-Based Compensation (Table

Stock-Based Compensation (Tables)	3 Months Ended
	Mar. 31, 2017
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Schedule of stock-based compensation expense	Stock-based compensation expense was allocated based on the employees’ or non-employees’ function as follows: Three Months Ended 2016 2017 Research and development $ 33 $ 56 Selling, general and administrative 313 736 Total $ 346 $ 792
Schedule of assumptions used to estimate the fair value of stock options	The following assumptions were used to estimate the fair value of stock options granted using the Black-Scholes Merton option-pricing model for the three months ended March 31, 2016: Risk-free interest 1.44%-1.58% Expected term in years 6.08 Expected volatility 52% Expected dividend yield 0%

Net Loss per Share (Tables)

Net Loss per Share (Tables)	3 Months Ended
	Mar. 31, 2017
Earnings Per Share [Abstract]
Schedule of securities excluded from the calculation of diluted net loss per share	The following common stock equivalents were excluded from the calculation of diluted net loss per share for the periods indicated because including them would have had an anti-dilutive effect: Three Months Ended 2016 2017 Options to purchase common stock 13,703,113 17,417,388 Warrants to purchase common stock 5,083,219 5,083,219 Total 18,786,332 22,500,607

Nature of Operations (Details N

Nature of Operations (Details Narrative) - USD ($) $ / shares in Units, $ in Thousands	Mar. 15, 2017	Mar. 31, 2017	Dec. 31, 2016	Mar. 31, 2016	Dec. 31, 2015
Cash and cash equivalents		$ 45,229	$ 9,183	$ 23,639	$ 22,142
Borrowings outstanding			2,643
Accumulated deficit		(156,603)	$ (146,718)
Working capital		38,647
Value of shares issued		$ 44,611
Private Placement [Member]
Number of shares issued	68,055,700
Shares price (in dollars per share)	$ 0.6616
Value of shares issued	$ 45,026
Offering expenses	$ 415

Significant Accounting Polici21

Significant Accounting Policies (Details) - Sales Revenue [Member]	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Customer C [Member]
Concentration percentage	33.00%	1.00%
Customer D [Member]
Concentration percentage	33.00%
Customer A [Member]
Concentration percentage		71.00%
Customer B [Member]
Concentration percentage		11.00%

Significant Accounting Polici22

Significant Accounting Policies (Details 1)	3 Months Ended
	Mar. 31, 2017$ / sharesshares
Class of Warrants, Number of Shares
Outstanding at beginning	5,083,219
Exercised
Outstanding at end	5,083,219
Class of Warrants, Weighted-Average Exercise Price
Outstanding at beginning | $ / shares	$ 1.08
Exercised
Outstanding at end | $ / shares	$ 1.08

Significant Accounting Polici23

Significant Accounting Policies (Details Narrative) $ in Thousands	3 Months Ended
	Mar. 31, 2017USD ($)Seg	Mar. 31, 2016USD ($)	Dec. 31, 2016USD ($)
Number of segments | Seg	1
Assets	$ 49,580		$ 13,013
Liabilities	$ 9,992		8,943
Length of CorPath Utilization Program	36 months
Customer credit - future purchase	$ 1
Amounts outstanding	250
Accumulated other comprehensive loss	0		0
Recurring [Member] | Level 1 Inputs [Member]
Cash equivalents	$ 164
Accounts Receivable [Member] | Customer C [Member]
Concentration percentage	62.00%
Not-For-Profit Subsidiary [Member]
Recognized expenses	$ 12	$ 42
Other income	15
Assets	22		23
Liabilities	$ 17		$ 23

Inventories (Details)

Inventories (Details) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Inventory Disclosure [Abstract]
Raw material	$ 1,158	$ 578
Work in progress	470	163
Finished goods	757	804
Inventories, net	$ 2,385	$ 1,545

Inventories (Details Narrative)

Inventories (Details Narrative) $ in Thousands	3 Months Ended
	Mar. 31, 2017USD ($)
Inventory Disclosure [Abstract]
Inventory write-down	$ 201

Long-Term Debt (Details Narrati

Long-Term Debt (Details Narrative) - USD ($) $ / shares in Units, $ in Thousands	Dec. 31, 2014	Jun. 11, 2014	Mar. 31, 2016	Mar. 31, 2017
Minimum [Member]
Exercise price of warrant			$ 0.99
Promissory Note 1 [Member]
Available borrowing under Loan and Security Agreement		$ 10,000
Amount of each separate note		$ 5,000
Note issuance date		Jun. 11, 2014
Frequency of debt payments		Monthly
Term of debt payments		27 months
Date of first required payment		Jul. 1, 2015
Effective interest rate				12.00%
Interest rate, description of maximum		11.25% plus the Wall Street Journal Prime Rate, less 3.25%
Spread on variable rate		(3.25%)
Additional interest payment		$ 125
Due date of additional interest payment		Oct. 1, 2017
Number of warrants issued with debt (shares)		177,514
Exercise price of warrant		$ 1.41
Fair value of the warrant issued		$ 230
Promissory Note 1 [Member] | Minimum [Member]
Effective interest rate		11.25%
Second Promissory Note [Member]
Amount of each separate note	$ 5,000
Frequency of debt payments	Monthly
Term of debt payments	27 months
Date of first required payment	Jul. 1, 2015
Effective interest rate				10.70%
Interest rate, description of maximum	9.95% plus the Wall Street Journal Prime Rate, less 3.25%
Spread on variable rate	(3.25%)
Additional interest payment	$ 125
Due date of additional interest payment	Oct. 1, 2017
Number of warrants issued with debt (shares)	177,514
Exercise price of warrant	$ 1.41
Fair value of the warrant issued	$ 619
Second Promissory Note [Member] | Minimum [Member]
Effective interest rate	9.95%

Stock-Based Compensation (Detai

Stock-Based Compensation (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Stock-based compensation expense	$ 792	$ 346
Research and Development Expense [Member]
Stock-based compensation expense	56	33
Selling General And Administrative Expense [Member]
Stock-based compensation expense	$ 736	$ 313

Stock-Based Compensation (Det28

Stock-Based Compensation (Details 1) - Stock Option Plans [Member]	3 Months Ended
	Mar. 31, 2016
Expected term in years	6 years 29 days
Expected volatility	52.00%
Expected dividend yield	0.00%
Minimum [Member]
Risk-free interest rate	1.44%
Maximum [Member]
Risk-free interest rate	1.58%

Stock-Based Compensation (Det29

Stock-Based Compensation (Details Narrative)	3 Months Ended
	Mar. 31, 2016$ / sharesshares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Options granted to purchase common stock (shares) | shares	8,366,906
Weighted average grant date fair value options	$ 0.72
Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Exercise price of options granted	2.03
Minimum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Exercise price of options granted	$ 0.99

Net Loss per Share (Details)

Net Loss per Share (Details) - shares	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Number of anti-dilutive securities	22,500,607	18,786,332
Stock Options [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Number of anti-dilutive securities	17,417,388	13,703,113
Warrant [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Number of anti-dilutive securities	5,083,219	5,083,219

Related Party Transactions (Det

Related Party Transactions (Details Narrative) - USD ($) $ / shares in Units, $ in Thousands	Mar. 15, 2017	Jun. 14, 2010	Mar. 31, 2017	Mar. 31, 2016	Dec. 31, 2016
Notes receivable due from stockholders			$ 71		$ 71
Amounts outstanding			$ 250
Private Placement [Member]
Issuance of common stock in connection with private placement of common stock (shares)	68,055,700
Issuance of common stock in connection with private placement of common stock	$ 45,026
Shares price (in dollars per share)	$ 0.6616
Offering expenses	$ 415
Shareholders [Member]
Issuance of notes receivable due from stockholder		$ 145
Philips [Member]
Revenue from related party				$ 125