Sientra (SIENQ) 10-Q21 Nov 142014 Q3 Quarterly reportFinancial data

Company Profile

Document_and_Entity_Informatio

Document and Entity Information	9 Months Ended
Document and Entity Information	Sep. 30, 2014	Nov. 03, 2014
Document and Entity Information	'	'
Entity Registrant Name	'Sientra, Inc.	'
Entity Central Index Key	'0001551693	'
Document Type	'10-Q	'
Document Period End Date	30-Sep-14	'
Amendment Flag	'false	'
Current Fiscal Year End Date	'--12-31	'
Entity Current Reporting Status	'No	'
Entity Filer Category	'Non-accelerated Filer	'
Entity Common Stock, Shares Outstanding	'	14,912,613
Document Fiscal Year Focus	'2014	'
Document Fiscal Period Focus	'Q3	'

Condensed_Balance_Sheets

Condensed Balance Sheets (USD $)	Sep. 30, 2014	Dec. 31, 2013
In Thousands, unless otherwise specified	Sep. 30, 2014	Dec. 31, 2013
Current assets:	'	'
Cash and cash equivalents	$19,816	$9,722
Accounts receivable, net of allowances of $10,452 and $8,543 at September 30, 2014 and December 31, 2013, respectively	4,317	6,111
Inventories, net	19,247	21,533
Prepaid expenses and other current assets	3,782	884
Total current assets	47,162	38,250
Property and equipment, net	449	254
Goodwill	14,278	14,278
Other intangible assets, net	138	207
Other assets	248	177
Total assets	62,275	53,166
Current liabilities:	'	'
Current portion of long-term debt	1,487	'
Accounts payable	2,589	4,768
Accrued and other current liabilities	4,593	4,065
Customer deposits	7,258	4,908
Total current liabilities	15,927	13,741
Long-term debt, net of current portion	23,817	15,092
Warranty reserve and other long-term liabilities	985	550
Total liabilities	40,729	29,383
Commitments and contingencies (note 10)	'	'
Convertible preferred stock, $0.01 par value - Authorized, issued and outstanding 24,593,087 shares at September 30, 2014 and December 31, 2013 (Liquidation preference of $151,000 as of September 30, 2014 and December 31, 2013)	150,456	150,456
Stockholders' deficit:	'	'
Common stock, $0.01 par value - Authorized 30,200,000 shares; Issued 282,071 and 279,879 and outstanding 209,344 and 207,152 shares at September 30, 2014 and December 31, 2013, respectively	3	3
Additional paid-in capital	2,196	1,819
Treasury stock, at cost (72,727 shares at September 30, 2014 and December 31, 2013)	-260	-260
Accumulated deficit	-130,849	-128,235
Total stockholders' deficit	-128,910	-126,673
Total liabilities, convertible preferred stock and stockholders' deficit	$62,275	$53,166

Condensed_Balance_Sheets_Paren

Condensed Balance Sheets (Parenthetical) (USD $)	Sep. 30, 2014	Dec. 31, 2013
In Thousands, except Share data, unless otherwise specified	Sep. 30, 2014	Dec. 31, 2013
Condensed Balance Sheets	'	'
Accounts receivable, allowances (in dollars)	$10,452	$8,543
Convertible preferred stock, par value (in dollars per share)	$0.01	$0.01
Convertible preferred stock, shares authorized	24,593,087	24,593,087
Convertible preferred stock, shares issued	24,593,087	24,593,087
Convertible preferred stock, shares outstanding	24,593,087	24,593,087
Liquidation preference (in dollars)	$151,000	$151,000
Common stock, par value (in dollars per share)	$0.01	$0.01
Common stock, shares authorized	30,200,000	30,200,000
Common stock, shares issued	282,071	279,879
Common stock, shares outstanding	209,344	207,152
Treasury stock, shares	72,727	72,727

Condensed_Statements_of_Operat

Condensed Statements of Operations (USD $)	3 Months Ended		9 Months Ended
In Thousands, except Share data, unless otherwise specified	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013
Condensed Statements of Operations	'	'	'	'
Net sales	$10,670	$7,981	$32,617	$25,921
Cost of goods sold	2,832	1,968	8,287	6,352
Gross profit	7,838	6,013	24,330	19,569
Operating expenses:	'	'	'	'
Sales and marketing	4,711	4,704	16,574	15,501
Research and development	1,246	1,234	3,551	3,400
General and administrative	2,634	6,304	7,542	16,072
Total operating expenses	8,591	12,242	27,667	34,973
Loss from operations	-753	-6,229	-3,337	-15,404
Other (expense) income, net:	'	'	'	'
Interest expense	-665	-232	-1,507	-612
Other (expense) income, net:	-34	-14	2,230	-34
Total other (expense) income, net	-699	-246	723	-646
Loss before income taxes	-1,452	-6,475	-2,614	-16,050
Net loss	($1,452)	($6,475)	($2,614)	($16,050)
Basic and diluted net loss per share attributable to common stockholders (in dollars per share)	($6.94)	($31.45)	($12.53)	($66.58)
Weighted average outstanding common shares used for net loss per share attributable to common stockholders:	'	'	'	'
Basic and diluted (in shares)	209,344	205,901	208,648	241,057

Condensed_Statements_of_Cash_F

Condensed Statements of Cash Flows (USD $)	9 Months Ended
In Thousands, unless otherwise specified	Sep. 30, 2014	Sep. 30, 2013
Cash flows from operating activities:	'	'
Net loss	($2,614)	($16,050)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:	'	'
Depreciation and amortization	196	209
Provision for sales return reserve	1,973	3,186
(Recovery of) provision for doubtful accounts	-64	'
Provision for warranties	363	300
Change in fair value of warrants	135	34
Non cash interest expense	350	137
Stock-based compensation expense	368	256
Changes in assets and liabilities:	'	'
Accounts receivable	-115	-6,925
Prepaid expenses, other current assets and other assets	-1,035	-258
Inventories	2,285	-9,031
Accounts payable	-2,815	5,732
Accrued and other liabilities	169	-369
Customer deposits	2,350	4,421
Net cash provided by (used in) operating activities	1,546	-18,358
Cash flows from investing activities:	'	'
Purchase of property and equipment	-320	-60
Contingent payment related to Silimed acquisition	'	-18,000
Net cash used in investing activities	-320	-18,060
Cash flows from financing activities:	'	'
Proceeds from exercise of stock options	9	10
Repurchase of common stock	'	-260
Proceeds from issuance of long-term debt	10,000	10,000
Deferred financing costs	-148	-108
Deferred equity issuance costs	-993	'
Net cash provided by financing activities	8,868	9,642
Net increase (decrease) in cash and cash equivalents	10,094	-26,776
Cash and cash equivalents at:	'	'
Beginning of period	9,722	39,208
End of period	19,816	12,432
Cash paid during the year for:	'	'
Interest	1,052	410
Supplemental disclosure of noncash investing activities:	'	'
Accrued deferred equity issuance costs	$818	'

Formation_and_Business_of_the_

Formation and Business of the Company	9 Months Ended
Formation and Business of the Company	Sep. 30, 2014
Formation and Business of the Company	'
Formation and Business of the Company	'
	1. Formation and Business of the Company

	a. *Formation*

	Sientra, Inc., or the Company, was incorporated in the State of Delaware on August 29, 2003 under the name Juliet Medical, Inc. and subsequently changed its name to Sientra, Inc. in April 2007. The Company acquired substantially all the assets of Silimed, Inc., or Silimed, on April 4, 2007. The purpose of the acquisition was to acquire the rights to the silicone breast implant clinical trials. Following this acquisition, the Company focused on completing the clinical trials to gain Food and Drug Administration, or FDA, approval to offer its silicone gel breast implants in the United States.

	In March 2012, Sientra announced it had received approval from the FDA for its portfolio of silicone gel breast implants, and in the second quarter of 2012 the Company began commercialization efforts to sell its products in the United States. The Company, based in Santa Barbara, California, is a medical aesthetics company that focuses on serving board-certified plastic surgeons and offers a portfolio of silicone shaped and round breast implants, tissue expanders, and body contouring products.

	b. *Initial Public Offering*

	The Company completed an initial public offering, or IPO, of its common stock on November 3, 2014. See note 11, Subsequent Events for disclosures related to the IPO and other related transactions.

	c. *Reverse Stock Split*

	On October 10, 2014, the board of directors and stockholders approved an amendment to the Company’s fourth amended and restated certificate of incorporation, which was filed on October 17, 2014, which effected a 1 for 2.75 reverse stock split of the Company’s issued and outstanding shares of common stock. The par value of the common stock was not adjusted as a result of the reverse stock split. All issued and outstanding shares of common stock, stock options and warrants and the related per share amounts contained in the Company’s condensed financial statements have been retroactively adjusted to reflect this reverse stock split for all periods presented. Also, as a result of the reverse stock split of the common stock, the conversion ratios for all of the Company’s convertible preferred stock have been adjusted such that the preferred stock are now convertible into shares of common stock at a conversion rate of 2.75-to-1 instead of 1-to-1. The number of issued and outstanding shares of preferred stock and their related per share amounts have not been affected by the reverse stock split and therefore have not been adjusted in the Company’s condensed financial statements. However, to the extent that the convertible preferred stock are presented on an as converted to common stock basis, such share and per share amounts contained in the Company’s financial statements have been retroactively adjusted to reflect this reverse stock split for all periods presented.

Summary_of_Significant_Account

Summary of Significant Accounting Policies	9 Months Ended
Summary of Significant Accounting Policies	Sep. 30, 2014
Summary of Significant Accounting Policies	'
Summary of Significant Accounting Policies	'
	2. Summary of Significant Accounting Policies

	a. *Basis of Presentation*

	The accompanying unaudited condensed financial statements in this Quarterly Report on Form 10-Q have been prepared in accordance with accounting principles generally accepted in the United States of America, or GAAP, and the rules and regulations of the U.S. Securities and Exchange Commission, or SEC. Accordingly, they do not include certain footnotes and financial presentations normally required under accounting principles generally accepted in the United States of America for complete financial reporting. The interim financial information is unaudited, but reflects all normal adjustments and accruals which are, in the opinion of management, considered necessary to provide a fair presentation for the interim periods presented. The accompanying condensed financial statements should be read in conjunction with the Company’s audited financial statements and notes thereto included in the Company’s final prospectus filed pursuant to Rule 424(b)(1) under the Securities and Exchange Act of 1933, as amended, relating to the Company’s Registration Statement on Form S-1 (File No. 333-198837), filed with the SEC. The results for the three and nine months ended September 30, 2014 are not necessarily indicative of results to be expected for the year ending December 31, 2014, any other interim periods, or any future year or period.

	b. *Use of Estimates*

	The preparation of the condensed financial statements, in conformity with GAAP, requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates.

	c. *Significant Accounting Policies*

	There have been no significant changes to the accounting policies during the three and nine months ended September 30, 2014, as compared to the significant accounting policies described in Note 3 of the “Notes to Financial Statements” in the Company’s audited financial statements included in the final prospectus filed with the SEC on October 29, 2014 other than those listed below.

	Deferred Equity Issuance Costs

	Deferred equity issuance costs, primarily consisting of legal, accounting and other direct fees and costs relating to the IPO, are capitalized. The deferred equity issuance costs were offset against the IPO proceeds upon the closing of the offering in November 2014. As of September 30, 2014, there was $1,811 in deferred equity issuance costs capitalized in other current assets on the condensed balance sheet. There were no deferred equity issuance costs capitalized as of December 31, 2013.

	d. *Recent Accounting Pronouncements*

	In May 2014, the Financial Accounting Standards Board, or FASB, issued accounting standard update 2014-09, Revenue from Contracts with Customers. The standard was issued to provide a single framework that replaces existing industry and transaction specific US GAAP with a five step analysis of transactions to determine when and how revenue is recognized. This accounting standard updated will be effective for the Company beginning in fiscal year 2018. The Company is currently assessing the impact that the standard will have on the financial statements upon adoption of the guidance.

	In August 2014, the FASB issued accounting standard update 2014-15, Presentation of Financial Statement — Going Concern. The standard was issued to provide guidance about management’s responsibility to evaluate whether there is substantial doubt about an entity’s ability to continue as a going concern and to provide related footnote disclosures. This accounting standard updated will be effective for the Company beginning in fiscal year 2016. The Company anticipates there will be no impact on its financial statement upon adoption of this guidance.

Fair_Value_of_Financial_Instru

Fair Value of Financial Instruments	9 Months Ended
Fair Value of Financial Instruments	Sep. 30, 2014
Fair Value of Financial Instruments	'
Fair Value of Financial Instruments	'
	3. Fair Value of Financial Instruments

	The Company has estimated the fair value of its financial instruments using the following methods and assumptions:

	· Cash and cash equivalents, accounts receivable, accounts payable, accrued liabilities, and customer deposits are carried at cost, which approximates fair value because of the short term nature of those instruments.

	· Long-term debt is included in the balance sheet at its amortized cost. The carrying value of the long-term debt approximates its fair value. The fair value of the Company’s long-term debt was determined based on the relative timing of the instruments, all under substantially the same terms, including the issuance of each of the three tranches (tranche A, B, and C) drawn in 2013. In addition, tranches B and C were made available to the Company based on the Company meeting certain performance milestones. Furthermore, on June 30, 2014, the Company negotiated with Oxford Finance LLC, or Oxford, to amend the Loan and Security Agreement and raise an additional $10,000 in a fourth tranche (tranche D). The terms for tranche D were substantially the same as for the prior tranches (see Note 8). Based upon this, for December 31, 2013 and September 30, 2014, the Company has determined the carrying value closely approximates the fair value.

Fair_Value_Measurements

Fair Value Measurements	9 Months Ended
Fair Value Measurements	Sep. 30, 2014
Fair Value Measurements	'
Fair Value Measurements	'
	4. Fair Value Measurements

	Certain assets and liabilities are carried at fair value under GAAP. Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs. Financial assets and liabilities carried at fair value are to be classified and disclosed in one of the following three levels of the fair value hierarchy, of which the first two are considered observable and the last is considered unobservable:

	· Level 1 — Quoted prices in active markets for identical assets or liabilities.

	· Level 2 — Observable inputs (other than Level 1 quoted prices) such as quoted prices in active markets for similar assets or liabilities, quoted prices in markets that are not active for identical or similar assets or liabilities, or other inputs that are observable or can be corroborated by observable market data.

	· Level 3 — Unobservable inputs that are supported by little or no market activity and that are significant to determining the fair value of the assets or liabilities, including pricing models, discounted cash flow methodologies and similar techniques.

	The Company’s common stock warrant liabilities are carried at fair value determined according to the fair value hierarchy described above. The Company has utilized an option pricing valuation model to determine the fair value of its outstanding common stock warrant liabilities. The inputs to the model include fair value of the common stock related to the warrant, exercise price of the warrant, expected term, expected volatility, risk-free interest rate and dividend yield. The Company determines the fair value per share of the underlying common stock by taking into consideration its most recent sale of its convertible preferred stock, the occurrence of the initial public offering, as well as additional factors that the Company deems relevant. The Company historically has been a private company and lacks company-specific historical and implied volatility information of its stock. Therefore, it estimates its expected stock volatility based on the historical volatility of publicly traded peer companies for a term equal to the remaining contractual term of the warrants. The risk-free interest rate is determined by reference to the U.S. Treasury yield curve for time periods approximately equal to the remaining contractual term of the warrants. The Company has estimated a 0% dividend yield based on the expected dividend yield and the fact that the Company has never paid or declared dividends. As several significant inputs are not observable, the overall fair value measurement of the warrants is classified as Level 3.

	The following tables present information about the Company’s liabilities that are measured at fair value on a recurring basis as of September 30, 2014 and December 31, 2013 and indicate the level of the fair value hierarchy utilized to determine such fair value:

		Fair Value Measurements as of
		September 30, 2014 Using:
		Level 1		Level 2	Level 3	Total
	Liabilities:
	Liability for common stock warrants	$	—	—	335	335


		Fair Value Measurements as of
		December 31, 2013 Using:
		Level 1		Level 2	Level 3	Total
	Liabilities:
	Liability for common stock warrants	$	—	—	90	90


	The following table provides a rollforward of the aggregate fair values of the Company’s common stock warrants for which fair value is determined by Level 3 inputs:

	Balance, December 31, 2013	$	90
	Fair value of warrants upon issuance during 2014	110
	Increase in fair value through September 30, 2014	135
	Balance, September 30, 2014	335

Product_Warranties

Product Warranties	9 Months Ended
Product Warranties	Sep. 30, 2014
Product Warranties	'
Product Warranties	'
	5. Product Warranties

	The Company offers a limited warranty and a lifetime product replacement program for the Company’s silicone gel breast implants. Under the limited warranty program, the Company will reimburse patients for certain out-of-pocket costs related to revision surgeries performed within ten years from the date of implantation in a covered event. Under the lifetime product replacement program, the Company provides no-charge replacement breast implants under a covered event. The programs are available to all patients implanted with the Company’s silicone breast implants after April 1, 2012 and are subject to the terms, conditions, claim procedures, limitations and exclusions. Timely completion of a device tracking and warranty enrollment form by the patient’s Plastic Surgeon is required to activate the programs and for the patient to be able to receive benefits under either program.

	The Company accrued for warranties issued during the three months ended September 30, 2014 and 2013 in the amounts of $117 and $97, respectively, and accrued for warranties issued during the nine months ended September 30, 2014 and 2013 in the amounts of $363 and $300, respectively. As of September 30, 2014 and December 31, 2013, the Company held total warranty liabilities of $878 and $515, respectively.

Net_Loss_Per_Share

Net Loss Per Share	9 Months Ended
Net Loss Per Share	Sep. 30, 2014
Net Loss Per Share	'
Net Loss Per Share	'
	6. Net Loss Per Share

	Basic loss per share attributable to common stockholders is computed by dividing net loss by the weighted average number of common shares outstanding during each period. Diluted loss per common share is computed by dividing net loss available to common stockholders by the weighted average number of common shares and dilutive potential common share equivalents then outstanding, to the extent they are dilutive. Potential common shares consist of shares issuable upon the exercise of stock options and warrants (using the treasury stock method), and the weighted average conversion of the convertible preferred stock into shares of common stock (using the if-converted method). Dilutive loss per share is the same as basic loss per share for all periods presented because the effects of potentially dilutive items were anti-dilutive.

		Three months ended September 30,					Nine months ended September 30,
		2014			2013		2014		2013
	Net loss	$	(1,452	)	(6,475	)	(2,614	)	(16,050	)
	Weighted average common shares outstanding, basic and diluted	209,344			205,901		208,648		241,057
	Net loss per share attributable to common stockholders	(6.94		)	(31.45	)	(12.53	)	(66.58	)


	The Company excluded the following potentially dilutive securities, outstanding as of September 30, 2014 and 2013, from the computation of diluted net loss per share attributable to common stockholders for the three months and nine months ended September 30, 2014 and 2013 because they had an anti-dilutive impact due to the net loss attributable to common stockholders incurred for the periods.

						September 30,
						2014		2013

	Stock options to purchase common stock					1,631,922		1,409,408
	Warrants for the purchase of common stock					47,710		20,446
	Convertible preferred stock					8,942,925		8,942,925
	(as converted to common stock)					8,942,925		8,942,925
						10,622,557		10,372,779

Balance_Sheet_Components

Balance Sheet Components	9 Months Ended
Balance Sheet Components	Sep. 30, 2014
Balance Sheet Components	'
Balance Sheet Components	'
	7. Balance Sheet Components

	a. *Allowance for Sales Returns and Doubtful Accounts*

	The Company has established an allowance for sales returns of $10,243 and $8,270 as of September 30, 2014 and December 31, 2013, respectively, recorded net against accounts receivable in the balance sheet.

	The Company has established an allowance for doubtful accounts of $209 and $273 as of September 30, 2014 and December 31, 2013, respectively, recorded net against accounts receivable in the balance sheet.

	b. *Property and Equipment*

	Property and equipment, net consist of the following:

		September 30,			December 31,
		2014			2013

	Leasehold improvements	$	58		19
	Computer equipment	202			183
	Software	85			85
	Office equipment	139			128
	Furniture and fixtures	708			456
		1,192			871
	Less accumulated depreciation and amortization	(743		)	(617	)
		$	449		254

	Depreciation expense for the three months ended September 30, 2014 and 2013 was $47 and $38, respectively. Depreciation expense for the nine month ended September 30, 2014 and 2013 was $126 and $110, respectively.

	c. *Goodwill and Other Intangible Assets, net*

	The goodwill on the condensed balance sheets was $14,278 for all periods presented.

	The components of the Company’s intangible assets are as follows:

		September 30,			December 31,
		2014			2013

	Acquired FDA non-gel product approval	$	1,713		1,713
	Less accumulated amortization	(1,575		)	(1,506	)
		$	138		207

	Amortization expense for the three months ended September 30, 2014 and 2013 was $23 and $33, respectively. Amortization expense for the nine months ended September 30, 2014 and 2013 was $70 and $99, respectively.

	d. *Accrued and Other Current Liabilities*

	Accrued and other current liabilities consist of the following:

		September 30,			December 31,
		2014			2013

	Accrued clinical trial and research and development expenses	$	180		166
	Audit, consulting and legal fees	181			124
	Payroll and related expenses	2,039			1,890
	Accrued commission	1,081			1,563
	Other	1,112			322
		$	4,593		4,065

Longterm_Debt

Long-term Debt	9 Months Ended
Long-term Debt	Sep. 30, 2014
Long-term Debt	'
Long-term Debt	'
	8. Long-term Debt

	On January 17, 2013, the Company entered into a Loan and Security Agreement, or the Original Term Loan Agreement, with Oxford providing for a $15,000 term loan facility consisting of original term loans of (i) a $7,500 tranche A term loan, (ii) a $2,500 tranche B term loan and (iii) a $5,000 tranche C term loan, maturing on February 1, 2017. The term loan facility is collateralized by a first-priority security interest in substantially all of the Company’s assets. Borrowings under the term loan facility bear interest at a rate equal to 8.4% per annum and the Original Term Loan Agreement provides for interest-only payments through June 30, 2015. The term loans include an additional lump sum payment of $975 due on February 1, 2017.

	On June 30, 2014, the Company entered into the Amended and Restated Loan and Security Agreement, or the Amended Term Loan Agreement, with Oxford, under which the interest-only period for the original term loans was extended to August 1, 2015 and raised an additional $10,000 in a fourth tranche (tranche D) maturing on January 1, 2019. The term loans are collateralized by a first-priority security interest in substantially all of the Company’s assets. The term loans bear interest at a rate equal to 8.4% per annum. The interest-only period for the tranche A, B and C term loans ends on August 1, 2015 and the interest-only period for the tranche D term loan ends on the same date, but with a possible extension of another year if the Company raises at least $50,000 in gross proceeds as part of an initial public offering before June 30, 2015 (see Note 11). The tranche D term loan includes an additional lump sum payment of $650 due on January 1, 2019.

	The Amended Term Loan Agreement contains various negative and affirmative covenants, including certain restrictive covenants that limit the Company’s ability to transfer or dispose of certain assets, engage in new lines of business, change the composition of Company management, merge with or acquire other companies, incur additional debt, create new liens and encumbrances, pay dividends or subordinated debt and enter into material transactions with affiliates, among others. The Amended Term Loan Agreement also contains financial reporting requirements.

	The aggregate maturities of long-term debt as of September 30, 2014 are: $0 in the remaining three months of 2014, $3,757 in 2015, $11,094 in 2016, $5,558 in 2017, $4,223 in 2018 and $368 in 2019.

	In connection with the Original Term Loan Agreement and the Amended Term Loan Agreement, the Company issued to Oxford (i) seven-year warrants in January 2013 to purchase shares of the Company’s common stock with a value equal to 3.0% of the tranche A, B and C term loans amounts and (ii) seven-year warrants in June 2014 to purchase shares of the Company’s common stock with a value equal to 2.5% of the tranche D term loan amount. The warrants have an exercise price per share equal to the lesser of (i) the Series C preferred stock conversion price of $14.671 per share or (ii) the price per share in a subsequent qualified round of financing where gross proceeds are greater than $10,000.

	The fair value of the warrants at September 30, 2014 and December 31, 2013 was $335 and $90, respectively, and was recorded in accrued and other current liabilities in the balance sheet. The Company recognized changes in the fair value of these warrants amounting to $42 and $14 in other (expense) income, net in the statements of operations for the three months ended September 30, 2014 and 2013, respectively, and $135 and $34 for the nine months ended September 30, 2014 and 2013, respectively.

Stockholders_Deficit

Stockholders' Deficit	9 Months Ended
Stockholders' Deficit	Sep. 30, 2014
Stockholders' Deficit	'
Stockholders' Deficit	'
	9. Stockholders’ Deficit

	a. *Convertible Preferred Stock*

	Under the Company’s certificate of incorporation, as amended, the Company’s convertible preferred stock is issued in three series: A, B and C. At September 30, 2014 and December 31, 2013, the Company’s convertible preferred stock consists of the following:

						Proceeds
						net of
		Shares				issuance		Liquidation	Issue
	Series	authorized		Outstanding		costs		value	Date
	A	1,000,000		1,000,000		$	994	1,000	Oct-06
	B	11,409,397		11,409,397		84,909		85,000	April 2007 and October 2008
	C	12,183,690		12,183,690		64,553		65,000	Mar-12
		24,593,087		24,593,087		$	150,456	151,000

	b. *Common Stock*

	The Company’s certificate of incorporation, as amended, authorizes the Company to issue 30,200,000 shares of $0.01 par value common stock. At September 30, 2014 and December 31, 2013, the Company has reserved sufficient shares of common stock for issuance upon conversion of convertible preferred stock and exercise of stock options. Common stockholders are entitled to dividends when and if declared by the board of directors. There have been no dividends declared to date. The holder of each share of common stock is entitled to one vote.

	c. *Stock Option Plan*

	In April 2007, the Company adopted the 2007 Equity Incentive Plan, or the 2007 Plan. The 2007 Plan provides for the granting of stock options to employees, directors and consultants of the Company. Options granted under the 2007 Plan may either be incentive stock options or nonstatutory stock options. Incentive stock options, or ISOs, may be granted only to Company employees. Nonstatutory stock options, or NSOs, may be granted to all eligible recipients. A total of 1,690,448 shares of the Company’s common stock were reserved for issuance for the 2007 Plan.

	Options under the 2007 Plan may be granted for periods of up to ten years as determined by the board of directors, provided, however, that (i) the exercise price of an ISO shall not be less than 100% of the estimated fair value of the shares on the date of grant, and (ii) the exercise price of an ISO granted to a more than 10% shareholder shall not be less than 110% of the estimated fair value of the shares on the date of grant. An NSO has no such exercise price limitations. The options generally vest over four years. The vesting provisions of individual options may vary but provide for vesting of at least 25% per year.

	The following summarizes all option activity under the 2007 Equity Incentive Plan:

				Options outstanding
								Weighted
		Options				Weighted		average
		available				average		remaining
		for		Number		exercise		contractual term
		grant		of options		price		(years)
	Balances at December 31, 2013	260,980		1,422,315		$	2.67	5.76
	Additional shares authorized	—		—
	Options granted	(224,707	)	224,707		11.7
	Options exercised	—		(2,193	)	3.99
	Options forfeited	12,907		(12,907	)	3.95
	Balances at September 30, 2014	49,180		1,631,922		$	3.9	5.63

	For stock-based awards the Company recognizes compensation expense based on the grant date fair value using the Black-Scholes option valuation model. Stock-based compensation expense was $169 and $85 for the three months ended September 30, 2014 and 2013, respectively. Stock-based compensation expense was $368 and $256 for the nine months ended September 30, 2014 and 2013, respectively. As of September 30, 2014, there was $1,784 of unrecognized compensation costs related to stock options. The expense is recorded within the operating expense captions in the statement of operations based on the employees receiving the awards. These costs are expected to be recognized over weighted average period of 2.84 years.

Commitments_and_Contingencies

Commitments and Contingencies	9 Months Ended
Commitments and Contingencies	Sep. 30, 2014
Commitments and Contingencies	'
Commitments and Contingencies	'
	10. Commitments and Contingencies

	a. *Operating Leases*

	The Company’s general office facility in Santa Barbara, California, lease expires in February 2020. The Company also has warehouse leases for additional general office, warehouse and research and development. Rent expense was $152 and $84 for the three months ended September 30, 2014 and 2013, respectively, and $332 and $256 for the nine months ended September 30, 2014 and 2013, respectively. The Company recognizes rent expense on a straight-line basis over the lease term.

	b. *Contingencies*

	The Company is subject to claims and assessment from time to time in the ordinary course of business. The Company accrues a liability for such matters when it is probable that future expenditures will be made and such expenditures can be reasonably estimated. There were no contingent liabilities requiring accrual at September 30, 2014.

	On March 27, 2012, Mentor Worldwide LLC, or Mentor, a wholly owned subsidiary of Johnson & Johnson, filed thirteen lawsuits against fifteen employees of the Company (all former Mentor employees) and, on June 8, 2012, filed a fourteenth lawsuit against the Company and an additional employee. In general, these fourteen lawsuits alleged that the former employees of Mentor breached their confidentiality and non-compete agreements when they resigned in favor of employment with the Company; misappropriated confidential Mentor information and trade secrets; and breached their respective duties of loyalty. Although not a party to thirteen employee lawsuits, the Company provided for the defense of its employees in the lawsuits. In the employee lawsuits, all of Mentor’s claims for Preliminary Injunctive Relief were denied. Following that, some of the employee lawsuits were dismissed with prejudice and others dismissed without prejudice. On October 3, 2013, the last of the thirteen employee lawsuits was dismissed.

	In the sole lawsuit against the Company, the Company and its employee prevailed at trial with verdicts of “no liability” rendered by the jury and judge. Final judgment in this case was entered on October 3, 2013 with the plaintiff ordered to reimburse defendants for certain court costs, and in 2014, Mentor waived its right to appeal.

	In 2012, the Company filed a claim with the Hartford Insurance Company, or Hartford, for reimbursement of legal costs incurred in connection with litigation with Mentor. The Company held a D&O insurance policy with Hartford, and the Company and Hartford settled the matter in May of 2014. The Company received settlement payments from Hartford and recovery of costs associated with the Mentor litigation of $0 and $0 for the three months ended September 30, 2014 and 2013, respectively, and $2,358 and $0 for the nine months ended September 2014 and 2013, respectively.

Subsequent_Events

Subsequent Events	9 Months Ended
	Sep. 30, 2014
Subsequent Events	'
Subsequent Events	'
	11. Subsequent Events

	a. *Reverse Stock Split*

	On October 10, 2014, the board of directors and stockholders approved an amendment to the Company’s fourth amended and restated certificate of incorporation, which was filed on October 17, 2014, which effected a 1 for 2.75 reverse stock split of the Company’s issued and outstanding shares of common stock. The par value of the common stock was not adjusted as a result of the reverse stock split. All issued and outstanding shares of common stock, stock options and warrants and the related per share amounts contained in the Company’s condensed financial statements have been retroactively adjusted to reflect this reverse stock split for all periods presented. Also, as a result of the reverse stock split of the common stock, the conversion ratios for all of the Company’s convertible preferred stock have been adjusted such that the preferred stock are now convertible into shares of common stock at a conversion rate of 2.75-to-1 instead of 1-to-1. The number of issued and outstanding shares of preferred stock and their related per share amounts have not been affected by the reverse stock split and therefore have not been adjusted in the Company’s condensed financial statements. However, to the extent that the convertible preferred stock are presented on an as converted to common stock basis, such share and per share amounts contained in the Company’s financial statements have been retroactively adjusted to reflect this reverse stock split for all periods presented.

	b. *Initial Public Offering*

	On November 3, 2014, the Company completed the IPO whereby it sold a total of 5,750,000 shares of common stock at $15.00 per share including 750,000 shares sold to underwriters for the exercise of their option to purchase additional shares. The Company received net proceeds from the IPO of approximately $77,213, after deducting underwriting discounts and commissions and offering expenses of approximately $9,038. These expenses will be recorded against the proceeds received from the IPO.

	The interest-only period for the tranche D term loan was extended from August 1, 2015 to August 1, 2016 as a result of having raised at least $50,000 in gross proceeds in the IPO and the completion of the IPO before June 30, 2015.

	The outstanding shares of convertible preferred stock were converted on a 2.75-to-1 basis into shares of common stock concurrent with the closing of the IPO. All of the outstanding shares of Series A, Series B and Series C preferred stock converted into 8,942,925 shares of common stock. Following the closing of the IPO, there were no shares of preferred stock outstanding.

	The accompanying unaudited pro forma balance sheet data as of September 30, 2014 has been prepared to give effect to the automatic conversion of all outstanding shares of convertible preferred stock into 8,942,925 shares of common stock and the issuance of 5,750,000 shares of common stock at a price of $15.00 per share, net of deducting underwriting discounts and estimated offering costs in connection with the closing of this IPO.

		As of September 30, 2014 (Unaudited)
		(In thousands)
	Balance sheet data (at end of period):	Actual			Pro Forma As
					Adjusted

	Cash and cash equivalents	$	19,816		97,029
	Total assets	62,275			139,488
	Long-term debt	25,304			25,304
	Convertible preferred stock	150,456			—
	Total stockholders’ (deficit) equity	(128,910		)	98,759


	c. *2014 Equity Incentive Plan*

	Our board of directors adopted our 2014 Equity Incentive Plan, or 2014 Plan, in July 2014, and our stockholders approved the 2014 Plan in October 2014. The 2014 Plan became effective upon completion of the IPO, at which time the Company ceased making awards under the 2007 Plan. Under the 2014 Plan, the Company may issue ISO, NSOs, stock appreciation rights, restricted stock awards, restricted stock unit awards and other forms of stock awards, or collectively, stock awards, all of which may be granted to employees, including officers, non-employee directors and consultants of us and our affiliates. ISOs may be granted only to employees. A total of 1,027,500 shares of common stock were initially reserved for issuance under the 2014 Plan, subject to certain annual increases.

	d. *2014 Employee Stock Purchase Plan*

	Our board of directors adopted our 2014 Employee Stock Purchase Plan, or our ESPP, in July 2014, and our stockholders approved the ESPP in October 2014. Our ESPP is intended to qualify as an employee stock purchase plan under Section 423 of the Code. The ESPP became effective upon the completion of the IPO. A total of 255,500 shares were initially reserved for issuance under the ESPP, subject to certain annual increases.

Summary_of_Significant_Account1

Summary of Significant Accounting Policies (Policies)	9 Months Ended
Summary of Significant Accounting Policies (Policies)	Sep. 30, 2014
Summary of Significant Accounting Policies	'
Basis of Presentation	'
	a. *Basis of Presentation*

	The accompanying unaudited condensed financial statements in this Quarterly Report on Form 10-Q have been prepared in accordance with accounting principles generally accepted in the United States of America, or GAAP, and the rules and regulations of the U.S. Securities and Exchange Commission, or SEC. Accordingly, they do not include certain footnotes and financial presentations normally required under accounting principles generally accepted in the United States of America for complete financial reporting. The interim financial information is unaudited, but reflects all normal adjustments and accruals which are, in the opinion of management, considered necessary to provide a fair presentation for the interim periods presented. The accompanying condensed financial statements should be read in conjunction with the Company’s audited financial statements and notes thereto included in the Company’s final prospectus filed pursuant to Rule 424(b)(1) under the Securities and Exchange Act of 1933, as amended, relating to the Company’s Registration Statement on Form S-1 (File No. 333-198837), filed with the SEC. The results for the three and nine months ended September 30, 2014 are not necessarily indicative of results to be expected for the year ending December 31, 2014, any other interim periods, or any future year or period.

Use of Estimates	'
	b. *Use of Estimates*

	The preparation of the condensed financial statements, in conformity with GAAP, requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates.

Significant Accounting Policies	'
	c. *Significant Accounting Policies*

	There have been no significant changes to the accounting policies during the three and nine months ended September 30, 2014, as compared to the significant accounting policies described in Note 3 of the “Notes to Financial Statements” in the Company’s audited financial statements included in the final prospectus filed with the SEC on October 29, 2014 other than those listed below.

	Deferred Equity Issuance Costs

	Deferred equity issuance costs, primarily consisting of legal, accounting and other direct fees and costs relating to the IPO, are capitalized. The deferred equity issuance costs were offset against the IPO proceeds upon the closing of the offering in November 2014. As of September 30, 2014, there was $1,811 in deferred equity issuance costs capitalized in other current assets on the condensed balance sheet. There were no deferred equity issuance costs capitalized as of December 31, 2013.

Recent Accounting Pronouncements	'
	d. *Recent Accounting Pronouncements*

	In May 2014, the Financial Accounting Standards Board, or FASB, issued accounting standard update 2014-09, Revenue from Contracts with Customers. The standard was issued to provide a single framework that replaces existing industry and transaction specific US GAAP with a five step analysis of transactions to determine when and how revenue is recognized. This accounting standard updated will be effective for the Company beginning in fiscal year 2018. The Company is currently assessing the impact that the standard will have on the financial statements upon adoption of the guidance.

	In August 2014, the FASB issued accounting standard update 2014-15, Presentation of Financial Statement — Going Concern. The standard was issued to provide guidance about management’s responsibility to evaluate whether there is substantial doubt about an entity’s ability to continue as a going concern and to provide related footnote disclosures. This accounting standard updated will be effective for the Company beginning in fiscal year 2016. The Company anticipates there will be no impact on its financial statement upon adoption of this guidance.

Fair_Value_Measurements_Tables

Fair Value Measurements (Tables)	9 Months Ended
Fair Value Measurements (Tables)	Sep. 30, 2014
Fair Value Measurements	'
Schedule of Company's liabilities that are measured at fair value on a recurring basis	'

		Fair Value Measurements as of
		September 30, 2014 Using:
		Level 1		Level 2	Level 3	Total
	Liabilities:
	Liability for common stock warrants	$	—	—	335	335


		Fair Value Measurements as of
		December 31, 2013 Using:
		Level 1		Level 2	Level 3	Total
	Liabilities:
	Liability for common stock warrants	$	—	—	90	90


Schedule of aggregate fair values of the Company's common stock warrants for which fair value is determined by Level 3 inputs	'


	Balance, December 31, 2013	$	90
	Fair value of warrants upon issuance during 2014	110
	Increase in fair value through September 30, 2014	135
	Balance, September 30, 2014	335

Net_Loss_Per_Share_Tables

Net Loss Per Share (Tables)	9 Months Ended
Net Loss Per Share (Tables)	Sep. 30, 2014
Net Loss Per Share	'
Schedule of net loss per share, basic and diluted	'

		Three months ended September 30,					Nine months ended September 30,
		2014			2013		2014		2013
	Net loss	$	(1,452	)	(6,475	)	(2,614	)	(16,050	)
	Weighted average common shares outstanding, basic and diluted	209,344			205,901		208,648		241,057
	Net loss per share attributable to common stockholders	(6.94		)	(31.45	)	(12.53	)	(66.58	)


Schedule of potentially dilutive securities excluded from the computation of diluted net loss per share attributable to common stockholders	'

						September 30,
						2014		2013

	Stock options to purchase common stock					1,631,922		1,409,408
	Warrants for the purchase of common stock					47,710		20,446
	Convertible preferred stock					8,942,925		8,942,925
	(as converted to common stock)					8,942,925		8,942,925
						10,622,557		10,372,779

Balance_Sheet_Components_Table

Balance Sheet Components (Tables)	9 Months Ended
Balance Sheet Components (Tables)	Sep. 30, 2014
Balance Sheet Components	'
Schedule of property and equipment, net	'

		September 30,			December 31,
		2014			2013

	Leasehold improvements	$	58		19
	Computer equipment	202			183
	Software	85			85
	Office equipment	139			128
	Furniture and fixtures	708			456
		1,192			871
	Less accumulated depreciation and amortization	(743		)	(617	)
		$	449		254

Schedule of intangible assets	'

		September 30,			December 31,
		2014			2013

	Acquired FDA non-gel product approval	$	1,713		1,713
	Less accumulated amortization	(1,575		)	(1,506	)
		$	138		207

Schedule of accrued and other current liabilities	'

		September 30,			December 31,
		2014			2013

	Accrued clinical trial and research and development expenses	$	180		166
	Audit, consulting and legal fees	181			124
	Payroll and related expenses	2,039			1,890
	Accrued commission	1,081			1,563
	Other	1,112			322
		$	4,593		4,065

Stockholders_Deficit_Tables

Stockholders' Deficit (Tables)	9 Months Ended
Stockholders' Deficit (Tables)	Sep. 30, 2014
Stockholders' Deficit	'
Schedule of convertible preferred stock	'

						Proceeds
						net of
		Shares				issuance		Liquidation	Issue
	Series	authorized		Outstanding		costs		value	Date
	A	1,000,000		1,000,000		$	994	1,000	Oct-06
	B	11,409,397		11,409,397		84,909		85,000	April 2007 and October 2008
	C	12,183,690		12,183,690		64,553		65,000	Mar-12
		24,593,087		24,593,087		$	150,456	151,000
Summary of option activity	'

				Options outstanding
								Weighted
		Options				Weighted		average
		available				average		remaining
		for		Number		exercise		contractual term
		grant		of options		price		(years)
	Balances at December 31, 2013	260,980		1,422,315		$	2.67	5.76
	Additional shares authorized	—		—
	Options granted	(224,707	)	224,707		11.7
	Options exercised	—		(2,193	)	3.99
	Options forfeited	12,907		(12,907	)	3.95
	Balances at September 30, 2014	49,180		1,631,922		$	3.9	5.63

Subsequent_Events_Tables

Subsequent Events (Tables)	9 Months Ended
	Sep. 30, 2014
Subsequent Events	'
Schedule of pro forma balance sheet	'

		As of September 30, 2014 (Unaudited)
		(In thousands)
	Balance sheet data (at end of period):	Actual			Pro Forma As
					Adjusted

	Cash and cash equivalents	$	19,816		97,029
	Total assets	62,275			139,488
	Long-term debt	25,304			25,304
	Convertible preferred stock	150,456			—
	Total stockholders’ (deficit) equity	(128,910		)	98,759

Formation_and_Business_of_the_1

Formation and Business of the Company (Details) (Subsequent events)	0 Months Ended
	Oct. 10, 2014
Subsequent events	'
Conversion rate	0.364

Summary_of_Significant_Account2

Summary of Significant Accounting Policies (Details) (USD $)	Sep. 30, 2014	Dec. 31, 2013
In Thousands, unless otherwise specified	Sep. 30, 2014	Dec. 31, 2013
Summary of Significant Accounting Policies	'	'
Deferred equity issuance costs	$1,811	$0

Fair_Value_of_Financial_Instru1

Fair Value of Financial Instruments (Details) (USD $)	0 Months Ended
In Thousands, unless otherwise specified	Jan. 17, 2013	Jan. 17, 2013	Jun. 30, 2014
	Term loan agreement	Term loan agreement	Tranche D term loan
	item
Long-term Debt	'	'	'
Number of tranches	3	'	'
Face amount	'	$15,000	$10,000

Fair_Value_Measurements_Detail

Fair Value Measurements (Details) (Warrants, USD $)	9 Months Ended
In Thousands, unless otherwise specified	Sep. 30, 2014	Sep. 30, 2014	Dec. 31, 2013	Sep. 30, 2014	Dec. 31, 2013
		Recurring	Recurring	Recurring	Recurring
				Level 3	Level 3
Fair Value Measurements	'	'	'	'	'
Estimated dividend yield	0.00%	'	'	'	'
Liabilities	'	$335	$90	$335	$90

Fair_Value_Measurements_Detail1

Fair Value Measurements (Details 2) (Warrants, USD $)	9 Months Ended
In Thousands, unless otherwise specified	Sep. 30, 2014
Warrants	'
Fair values of the Company's common stock warrants determined by Level 3 inputs	'
Balance at beginning of the period	$90
Fair value upon issuance	110
Increase in fair value	135
Balance at the end of the period	$335

Product_Warranties_Details

Product Warranties (Details) (USD $)	3 Months Ended		9 Months Ended
In Thousands, unless otherwise specified	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013	Dec. 31, 2013
Product Warranties	'	'	'	'	'
Period to claim reimbursement under limited warranty program	'	'	'10 years	'	'
Warranties issued	$117	$97	$363	$300	'
Total warranty liabilities	$878	'	$878	'	$515

Net_Loss_Per_Share_Details

Net Loss Per Share (Details) (USD $)	3 Months Ended		9 Months Ended
In Thousands, except Share data, unless otherwise specified	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013
Net loss per share	'	'	'	'
Net loss	($1,452)	($6,475)	($2,614)	($16,050)
Weighted average common shares outstanding, basic and diluted	209,344	205,901	208,648	241,057
Net loss per share attributable to common stockholders	($6.94)	($31.45)	($12.53)	($66.58)
Potentially dilutive securities	'	'	'	'
Potentially dilutive securities	'	'	10,622,557	10,372,779
Stock options to purchase common stock	'	'	'	'
Potentially dilutive securities	'	'	'	'
Potentially dilutive securities	'	'	1,631,922	1,409,408
Warrants for the purchase of common stock	'	'	'	'
Potentially dilutive securities	'	'	'	'
Potentially dilutive securities	'	'	47,710	20,446
Convertible preferred stock	'	'	'	'
Potentially dilutive securities	'	'	'	'
Potentially dilutive securities	'	'	8,942,925	8,942,925

Balance_Sheet_Components_Detai

Balance Sheet Components (Details) (USD $)	3 Months Ended		9 Months Ended
In Thousands, unless otherwise specified	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013	Dec. 31, 2013
Balance Sheet Components	'	'	'	'	'
Allowance for sales returns	$10,243	'	$10,243	'	$8,270
Allowance for doubtful accounts	209	'	209	'	273
Property and equipment, net	'	'	'	'	'
Property and equipment, gross	1,192	'	1,192	'	871
Less accumulated depreciation and amortization	-743	'	-743	'	-617
Property and equipment, net	449	'	449	'	254
Depreciation expense	47	38	126	110	'
Leasehold improvements	'	'	'	'	'
Property and equipment, net	'	'	'	'	'
Property and equipment, gross	58	'	58	'	19
Computer equipment	'	'	'	'	'
Property and equipment, net	'	'	'	'	'
Property and equipment, gross	202	'	202	'	183
Software	'	'	'	'	'
Property and equipment, net	'	'	'	'	'
Property and equipment, gross	85	'	85	'	85
Office equipment	'	'	'	'	'
Property and equipment, net	'	'	'	'	'
Property and equipment, gross	139	'	139	'	128
Furniture and fixtures	'	'	'	'	'
Property and equipment, net	'	'	'	'	'
Property and equipment, gross	$708	'	$708	'	$456

Balance_Sheet_Components_Detai1

Balance Sheet Components (Details 2) (USD $)	3 Months Ended		9 Months Ended
In Thousands, unless otherwise specified	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013	Dec. 31, 2013
Goodwill and intangible assets	'	'	'	'	'
Goodwill	$14,278	'	$14,278	'	$14,278
Intangible assets, net	138	'	138	'	207
Amortization expense	23	33	70	99	'
Accrued and Other Current Liabilities	'	'	'	'	'
Accrued clinical trial and research and development expenses	180	'	180	'	166
Audit, consulting and legal fees	181	'	181	'	124
Payroll and related expenses	2,039	'	2,039	'	1,890
Accrued commission	1,081	'	1,081	'	1,563
Other	1,112	'	1,112	'	322
Total	4,593	'	4,593	'	4,065
Acquired FDA non-gel product approval	'	'	'	'	'
Goodwill and intangible assets	'	'	'	'	'
Intangible assets, gross	1,713	'	1,713	'	1,713
Less accumulated amortization	($1,575)	'	($1,575)	'	($1,506)

Longterm_Debt_Details

Long-term Debt (Details) (USD $)

9 Months Ended

3 Months Ended

9 Months Ended

1 Months Ended

In Thousands, except Per Share data, unless otherwise specified

Sep. 30, 2014

Sep. 30, 2013

Sep. 30, 2014

Sep. 30, 2013

Sep. 30, 2014

Sep. 30, 2013

Dec. 31, 2013

Jan. 17, 2013

Jan. 31, 2013

Jan. 17, 2013

Jan. 31, 2013

Jan. 17, 2013

Jan. 31, 2013

Jan. 17, 2013

Jan. 31, 2013

Jun. 30, 2014

Warrants

Term loan agreement

Tranche A term loan

Tranche B term loan

Tranche C term loan

Tranche D term loan

Warrants

Long-term Debt

Face amount

$15,000

$7,500

$2,500

$5,000

$10,000

Interest rate (as a percent)

8.40%

Additional lump sum payment

975

650

Threshold amount of gross proceeds in IPO to determine extended interest period of debt instruments

50,000

Aggregate maturities of long-term debt

Remaining 3 months of 2014

2015

3,757

2016

11,094

2017

5,558

2018

4,223

2019

368

Warrants

Term of warrants

'7 years

Value of common stock that can be purchased as a percentage of term loan

3.00%

2.50%

Share price (in dollars per share)

$14.67

Minimum gross proceeds to calculate exercise price of warrants

10,000

Fair value of warrants

335

Changes in the fair value of warrants

$135

$34

$42

$14

$135

$34

Stockholders_Deficit_Details

Stockholders' Deficit (Details) (USD $)	9 Months Ended	12 Months Ended
In Thousands, except Share data, unless otherwise specified	Sep. 30, 2014	Dec. 31, 2013
	item	item
Stockholders' Deficit	'	'
Number of Series in Convertible Preferred Stock	3	3
Convertible Preferred Stock	'	'
Shares authorized	24,593,087	24,593,087
Outstanding (in shares)	24,593,087	24,593,087
Proceeds net of issuance costs	$150,456	$150,456
Liquidation value	151,000	151,000
Common Stock	'	'
Common stock, shares authorized	30,200,000	30,200,000
Common stock, par value (in dollars per share)	$0.01	$0.01
Dividends declared	0	'
Number of votes entitled to each holder of common stock	1	'
Series A preferred stock	'	'
Convertible Preferred Stock	'	'
Shares authorized	1,000,000	1,000,000
Outstanding (in shares)	1,000,000	1,000,000
Proceeds net of issuance costs	994	994
Liquidation value	1,000	1,000
Series B preferred stock	'	'
Convertible Preferred Stock	'	'
Shares authorized	11,409,397	11,409,397
Outstanding (in shares)	11,409,397	11,409,397
Proceeds net of issuance costs	84,909	84,909
Liquidation value	85,000	85,000
Series C preferred stock	'	'
Convertible Preferred Stock	'	'
Shares authorized	12,183,690	12,183,690
Outstanding (in shares)	12,183,690	12,183,690
Proceeds net of issuance costs	64,553	64,553
Liquidation value	$65,000	$65,000

Stockholders_Deficit_Details_2

Stockholders' Deficit (Details 2) (USD $)	1 Months Ended	3 Months Ended		9 Months Ended		12 Months Ended
In Thousands, except Share data, unless otherwise specified	Apr. 30, 2007	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013	Dec. 31, 2013
Stock options	'	'	'	'	'	'
Stockholders' Deficit	'	'	'	'	'	'
Common stock reserved for issuance (in shares)	1,690,448	'	'	'	'	'
Vesting period	'4 years	'	'	'	'	'
Options available for grant	'	'	'	'	'	'
Balance at the beginning of period (in shares)	'	'	'	260,980	'	'
Options granted (in shares)	'	'	'	-224,707	'	'
Options forfeited (in shares)	'	'	'	12,907	'	'
Balance at the end of the period (in shares)	'	49,180	'	49,180	'	260,980
Number of options	'	'	'	'	'	'
Balance at the beginning of period (in shares)	'	'	'	1,422,315	'	'
Options granted (in shares)	'	'	'	224,707	'	'
Options exercised (in shares)	'	'	'	-2,193	'	'
Options forfeited (in shares)	'	'	'	-12,907	'	'
Balance at the end of the period (in shares)	'	1,631,922	'	1,631,922	'	1,422,315
Weighted average exercise price	'	'	'	'	'	'
Balance at the beginning of period (in dollars per share)	'	'	'	$2.67	'	'
Options granted (in dollars per share)	'	'	'	$11.70	'	'
Options exercised (in dollars per share)	'	'	'	$3.99	'	'
Options forfeited (in dollars per share)	'	'	'	$3.95	'	'
Balance at the end of period (in dollars per share)	'	$3.90	'	$3.90	'	$2.67
Weighted average remaining contractual term	'	'	'	'5 years 7 months 17 days	'	'5 years 9 months 4 days
Additional information	'	'	'	'	'	'
Stock-based compensation expense (in dollars)	'	$169	$85	$368	$256	'
Unrecognized compensation costs (in dollars)	'	$1,784	'	$1,784	'	'
Weighted average period over which unrecognized compensation costs are expected to be recognized	'	'	'	'2 years 10 months 2 days	'	'
Stock options \| Minimum	'	'	'	'	'	'
Stockholders' Deficit	'	'	'	'	'	'
Vesting percentage	25.00%	'	'	'	'	'
Stock options \| Maximum	'	'	'	'	'	'
Stockholders' Deficit	'	'	'	'	'	'
Grant period of stock awards	'10 years	'	'	'	'	'
Incentive stock options \| Minimum	'	'	'	'	'	'
Stockholders' Deficit	'	'	'	'	'	'
Purchase price of awards expressed as a percentage of fair value of shares on the date of grant	100.00%	'	'	'	'	'
Incentive stock options \| Minimum \| Shareholder owning more than 10% voting power	'	'	'	'	'	'
Stockholders' Deficit	'	'	'	'	'	'
Purchase price of awards expressed as a percentage of fair value of shares on the date of grant	110.00%	'	'	'	'	'
Percentage of voting power owned by shareholder	10.00%	'	'	'	'	'

Commitments_and_Contingencies_

Commitments and Contingencies (Details) (USD $)	0 Months Ended			3 Months Ended		9 Months Ended
In Thousands, unless otherwise specified	Oct. 03, 2013	Jun. 08, 2012	Mar. 27, 2012	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013
	item	item	item	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013
Operating Leases	'	'	'	'	'	'	'
Rent expense	'	'	'	$152	$84	$332	$256
Mentor litigation	'	'	'	'	'	'	'
Contingencies	'	'	'	'	'	'	'
Number of lawsuits filed	'	14	13	'	'	'	'
Number of employees against which lawsuits is filed	'	'	15	'	'	'	'
Number of lawsuits dismissed	13	'	'	'	'	'	'
Settlement payments received	'	'	'	$0	$0	$2,358	$0

Subsequent_Events_Details

Subsequent Events (Details) (USD $)

9 Months Ended

0 Months Ended

In Thousands, except Share data, unless otherwise specified

Sep. 30, 2014

Dec. 31, 2013

Sep. 30, 2013

Dec. 31, 2012

Jun. 30, 2014

Oct. 10, 2014

Nov. 03, 2014

Sep. 30, 2014

Nov. 03, 2014

Tranche D term loan

Subsequent events

2014 Equity Incentive Plan

2014 Employee Stock Purchase Plan

Pro Forma As Adjusted

Common stock

IPO

Over allotment option exercised by underwriters

Common stock

Warrants

Common stock

Tranche D term loan

Subsequent events

Conversion rate

0.364

Shares issued

5,750,000

750,000

Initial public offering price (in dollars per share)

$15

Net proceeds after deducting underwriting discounts and commissions and offering expenses

$77,213

Payment of underwriting discounts and commissions and offering expenses

993

9,038

Threshold amount of gross proceeds in IPO to determine extended interest period of debt instruments

50,000

Shares issued on conversion of Series A, Series B and Series C preferred stock

8,942,925

Convertible preferred stock, shares outstanding

24,593,087

Balance sheet data (at end of period):

Cash and cash equivalents

19,816

9,722

12,432

39,208

97,029

Total assets

62,275

53,166

139,488

Long-term debt

25,304

Total stockholders' (deficit) equity

($128,910)

($126,673)

$98,759

Common stock reserved for issuance (in shares)

1,027,500

255,500