Sientra (SIENQ) 10-Q 9 Nov 16 2016 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2016	Nov. 04, 2016
Document and Entity Information
Entity Registrant Name	Sientra, Inc.
Entity Central Index Key	1,551,693
Document Type	10-Q
Document Period End Date	Sep. 30, 2016
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Current Reporting Status	Yes
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding		18,594,257
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	Q3

Condensed Balance Sheets

Condensed Balance Sheets - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Current assets:
Cash and cash equivalents	$ 79,282	$ 112,801
Accounts receivable, net of allowances of $3,890 and $1,116 at September 30, 2016 and December 31, 2015, respectively	2,812	4,249
Inventories, net	19,048	20,602
Insurance recovery receivable	9,282
Prepaid expenses and other current assets	1,429	1,473
Total current assets	111,853	139,125
Property and equipment, net	2,076	1,404
Goodwill	3,273
Other intangible assets, net	3,586	53
Other assets	231	223
Total assets	121,019	140,805
Current liabilities:
Accounts payable	3,201	4,069
Accrued and other current liabilities	7,507	6,959
Legal settlement payable	10,900
Customer deposits	6,200	9,488
Total current liabilities	27,808	20,516
Warranty reserve and other long-term liabilities	2,141	1,418
Total liabilities	29,949	21,934
Commitments and contingencies (Note 11)
Stockholders' equity:
Common stock, $0.01 par value — Authorized 200,000,000 shares; issued 18,666,984 and 18,066,143 and outstanding 18,594,257 and 17,993,416 shares at September 30, 2016 and December 31, 2015 respectively	186	180
Additional paid-in capital	298,514	294,227
Treasury stock, at cost (72,727 shares at September 30, 2016 and December 31, 2015)	260	260
Accumulated deficit	(207,370)	(175,276)
Total stockholders' equity	91,070	118,871
Total liabilities and stockholders' equity	$ 121,019	$ 140,805

Condensed Balance Sheets (Paren

Condensed Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Condensed Balance Sheets
Accounts receivable, allowances (in dollars)	$ 3,890	$ 1,116
Preferred stock, par value (in dollars per share)	$ 0.01	$ 0.01
Preferred stock, shares authorized	10,000,000	10,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized	200,000,000	200,000,000
Common stock, shares issued	18,666,984	18,066,143
Common stock, shares outstanding	18,594,257	17,993,416
Treasury stock, shares	72,727	72,727

Condensed Statements of Operati

Condensed Statements of Operations - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Condensed Statements of Operations
Net sales	$ 6,531	$ 9,929	$ 14,246	$ 36,569
Cost of goods sold	1,814	2,933	4,319	10,107
Gross profit	4,717	6,996	9,927	26,462
Operating expenses:
Sales and marketing	5,137	6,282	16,533	20,087
Research and development	2,052	2,143	7,370	4,896
General and administrative	7,302	4,140	17,945	11,804
Total operating expenses	14,491	12,565	41,848	36,787
Loss from operations	(9,774)	(5,569)	(31,921)	(10,325)
Other income (expense), net:
Interest income	16	12	47	19
Interest expense	(105)	(1,608)	(118)	(2,947)
Other (expense) income, net	(52)	561	(54)	273
Total other income (expense), net	(141)	(1,035)	(125)	(2,655)
Loss before income taxes	(9,915)	(6,604)	(32,046)	(12,980)
Income taxes	(48)		(48)
Net loss	$ (9,963)	$ (6,604)	$ (32,094)	$ (12,980)
Basic and diluted net loss per share attributable to common stockholders (in dollars per share)	$ (0.55)	$ (0.43)	$ (1.77)	$ (0.86)
Weighted average outstanding common shares used for net loss per share attributable to common stockholders:
Basic and diluted (in shares)	18,208,112	15,207,870	18,111,593	15,022,022

Condensed Statements of Cash Fl

Condensed Statements of Cash Flows - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015
Cash flows from operating activities:
Net loss	$ (32,094)	$ (12,980)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	734	232
Provision for doubtful accounts	384	40
Provision for warranties	133	445
Provision for inventory	519	355
Change in fair value of warrants	57	(274)
Non-cash interest expense	23	1,387
Stock-based compensation expense	2,630	1,759
Loss on disposal of property and equipment	124
Deferred income taxes	48
Changes in assets and liabilities:
Accounts receivable	1,053	1,511
Prepaid expenses, other current assets and other assets	(58)	20
Inventories	1,136	(851)
Insurance recovery receivable	(9,282)
Accounts payable	(986)	295
Accrued and other liabilities	460	1,082
Legal settlement payable	10,900
Customer deposits	(3,288)	(1,048)
Net cash used in operating activities	(27,507)	(8,027)
Cash flows from investing activities:
Purchase of property and equipment	(916)	(844)
Business acquisition	(6,759)
Net cash used in investing activities	(7,675)	(844)
Cash flows from financing activities:
Proceeds from exercise of stock options	910	113
Proceeds from issuance of common stock, net of underwriters discount		62,040
Proceeds from issuance of common stock under ESPP	753	564
Deferred equity issuance costs, IPO		(72)
Deferred equity issuance costs, follow-on offering		(77)
Repayment of long-term debt		(1,487)
Net cash provided by financing activities	1,663	61,081
Net (decrease) increase in cash and cash equivalents	(33,519)	52,210
Cash and cash equivalents at:
Beginning of period	112,801	96,729
End of period	79,282	148,939
Supplemental disclosure of cash flow information:
Interest paid	96	1,570
Supplemental disclosure of non-cash investing and financing activities:
Accrued equity issuance costs		566
Property and equipment in accounts payable	140	$ 36
Acquisition of business, deferred and contingent consideration obligations at fair value	$ 550

Formation and Business of the C

Formation and Business of the Company	9 Months Ended
	Sep. 30, 2016
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. on April 4, 2007. The purpose of the acquisition was to acquire the rights to the silicone breast implant clinical trials, related product specifications and premarket approval, or PMA, assets. 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, scar management, tissue expanders, and body contouring products. In November 2014, the Company completed an initial public offering, or IPO, and its common stock is listed on the Nasdaq Stock Exchange under the symbol “SIEN.” b. Follow-On Offering On September 23, 2015, the Company closed a follow-on public offering, whereby it sold 3,000,000 shares of its common stock, at a price to the public of $22.00 per share. The Company received net proceeds from the follow-on offering of approximately $61.4 million after deducting underwriting discounts and commissions of $4.0 million and offering expenses of approximately $0.6 million. c. Regulatory Inquiries Regarding Products Manufactured by Silimed There have been recent regulatory inquiries related to medical devices manufactured by Silimed Industria de Implantes Ltda. (formerly, Silimed-Silicone e Instrumental Medico-Cirugio e Hospitalar Ltda.), or Silimed, the Company’s On September 23, 2015, the Medicines and Healthcare Products Regulatory Agency, or MHRA, an executive agency of the United Kingdom, or U.K., issued a press release announcing the suspension of sales and implanting in the U.K. of all medical devices manufactured by Silimed following the suspension of the CE certificate of these products issued by TUV SUD, Silimed’s notified body under European Union, or EU, regulation. The suspension of Silimed’s CE certificate by TUV SUD followed TUV SUD’s inspection at Silimed’s manufacturing facilities in Brazil, relating to surface particles on Silimed breast products. Breast implants have stringent standards for manufacturing and robust quality systems, but there is no specific or defined standard for surface particles on breast implants. MHRA noted that no risks to patient health have been identified in connection with implanting Silimed products, and, accordingly, there is no need to adopt any procedure or action for those patients who have received them. On October 2, 2015, the Brazilian regulatory agency ANVISA and the Department of the Secretary of State of the State of Rio de Janeiro announced that as a precautionary measure, they temporarily suspended the manufacturing and shipment of all medical devices made by Silimed, including products manufactured for Sientra, On October 9, 2015, the Company voluntarily placed a hold on the sale of all Sientra devices manufactured by Silimed and recommended that plastic surgeons discontinue implanting the devices until further notice. The Company had ongoing discussions with the FDA regarding European and Brazilian regulatory inquiries into Silimed products, and the Company conducted its own review of the matter with the assistance of independent experts in quality management systems, GMP and data-based risk assessment. The FDA also reiterated that no reports of adverse events and no risks to patient health had been identified in connection with implanting Silimed products. On January 27, 2016, after completing an analysis and risk assessment, ANVISA announced its authorization of Silimed to resume the commercialization and use of its previously manufactured products. ANVISA concluded there was no evidence to prove that the presence of surface particles on the silicone implants represented risks which are additional to the ones inherent in the product. However, Silimed would continue to be suspended from manufacturing and commercializing new batches of implants until an inspection was performed to reassess the fulfillment of its GMP compliance. On March 1, 2016, after the completion of extensive independent, third-party testing and analyses of its devices manufactured by Silimed, the Company lifted the temporary hold on the sale of such devices. The Company also sent a letter to plastic surgeons informing them of the Company’s controlled market re-entry plans designed to optimize the Company’s inventory supply. The results of the Company’s testing indicate no anticipated significant safety concerns with the use of its products, including its breast implants, consistent with their approval status since 2012. On July 11, 2016, after completing an inspection of Silimed’s facility, ANVISA announced the reinstatement of Silimed’s GMP certificate and their ability to manufacture commercial products. The Brazilian GMP certificate is effective as of July 8, 2016 and is valid for two years. The Silimed facility that has been approved for manufacturing is an alternate facility to where Sientra products were previously manufactured, which was damaged by a fire on October 22, 2015, and it remains unclear as to whether the alternate facility is fully equipped to manufacture Sientra’s silicone gel breast implants. Moreover, even if the alternate facility was equipped to manufacture Sientra’s silicone gel breast implants, such products cannot be sold in the U.S. until a PMA supplement for that facility is submitted, Silimed’s operations have been fully validated to U.S. FDA standards and they have successfully passed an FDA inspection, the timing of which remains uncertain. Additionally, the suspension of Silimed’s CE certificate by TUV SUD remains in place and continues to limit Silimed’s ability to sell to countries requiring a CE mark. The Company’s existing manufacturing contract with Silimed expires on its terms in April 2017. For more information on the status of the Company’s relationship with Silimed, see Note 12—Subsequent Events—Silimed Litigation.

Summary of Significant Accounti

Summary of Significant Accounting Policies	9 Months Ended
	Sep. 30, 2016
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 Annual Report on Form 10-K for the year ended December 31, 2015 filed with the SEC on March 10, 2016, or the Annual Report. The results for the three and nine months ended September 30, 2016 are not necessarily indicative of results to be expected for the year ending December 31, 2016, any other interim periods, or any future year or period. b. The accompanying financial statements have been prepared on a going concern basis, which implies the Company will continue to realize its assets and discharge its liabilities in the normal course of business. As of September 30, 2016, Silimed is the Company’s sole source manufacturer of silicone gel breast implants and certain other products, but has not been able to resume manufacturing products for the Company. Accordingly, the Company continues to evaluate the availability of alternative manufacturing sources, including with Vesta Intermediate Funding, Inc., or Vesta, a Lubrizol Lifesciences company, which is establishing manufacturing capacity for the Company and is working with the Company to finalize a long-term supply arrangement for the Company’s PMA-approved breast implants. The continuation of the Company as a going concern is dependent upon many factors including Silimed’s ability to resume the manufacturing of the Company’s medical devices, resolution of any outstanding disputes with Silimed (see Note 12—Subsequent Events – Silimed Litigation), the availability of alternative manufacturing sources, including the entry into a long-term supply arrangement with Vesta or other manufacturers, and continued sale of the Company’s products. Since inception, the Company has incurred net losses. At September 30, 2016, the Company had cash and cash equivalents of $79.3 million. The Company’s ability to continue to meet its obligations and to achieve its business objectives is dependent upon, amongst other things, generating sufficient revenues. The Company believes that it has the ability to continue as a going concern for at least 12 months. These financial statements do not include any adjustments to the recoverability and classification of recorded asset amounts and classification of liabilities that might be necessary should the Company be unable to continue as a going concern. c. 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. d. Significant Accounting Policies There have been no significant changes to the accounting policies during the three and nine months ended September 30, 2016, as compared to the significant accounting policies described in the “Notes to Financial Statements” in the Annual Report. e. Recent Accounting Pronouncements Recently Adopted Accounting Standards In November 2015, the Financial Accounting Standards Board, or FASB, issued accounting standard update, or ASU, 2015-17, Balance Sheet Classification of Deferred Taxes , which simplifies the presentation of deferred income taxes. The standard requires that deferred tax assets and liabilities be classified as noncurrent on the balance sheet rather than being separated into current and noncurrent. ASU 2015-17 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2016. Early adoption is permitted and the standard may be applied either retrospectively or on a prospective basis to all deferred tax assets and liabilities. The Company early adopted ASU 2015-17 during the third quarter of 2016 on a prospective basis. The adoption of this ASU did not have a significant impact on the Company’s financial statements. Recently Issued Accounting Standards In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers. The standard was issued to provide a single framework that replaces existing industry and transaction specific GAAP with a five step analysis of transactions to determine when and how revenue is recognized. The accounting standard update will replace most existing revenue recognition guidance in GAAP when it becomes effective. In August 2015, the FASB issued ASU 2015-14, Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date, to defer the effective date of ASU 2014-09 by one year. Therefore, ASU 2014-09 will become effective for the Company beginning in fiscal year 2018. Early adoption would be permitted for the Company beginning in fiscal year 2017. The standard permits the use of either the retrospective or cumulative transition method. The Company is currently evaluating the accounting, transition and disclosure requirements of the standard and cannot currently estimate the financial statement impact of adoption. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) which supersedes FASB Accounting Standard Codification Leases (Topic 840). The standard is intended to increase the transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. This accounting standard update will be effective for the Company beginning in fiscal year 2019. The Company is currently evaluating the impact that adoption of the standard will have on the financial statements and related disclosures. In March 2016, the FASB issued ASU 2016-09, Compensation – Stock Compensation (Topic 718). The standard identifies areas for simplification involving several aspects of accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, an option to recognize gross stock compensation expense with actual forfeitures recognized as they occur, as well as certain classifications on the statement of cash flows. This accounting standard update will be effective for the Company beginning in fiscal year 2017. The Company is currently evaluating the impact that adoption of the standard will have on the financial statements and related disclosures. In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows – Classifications of Certain Cash Receipts and Cash Payments (Topic 230) . The standard update addresses eight specific cash flow issues not currently addressed by GAAP, with the objective of reducing the existing diversity in practice of how these cash receipts and payments are presented and classified in the statement of cash flows. This accounting standard update will be effective for the Company beginning in fiscal year 2018. The Company is currently evaluating the impact that adoption of the standard will have on the financial statements and related disclosures. f. Reclassifications Certain reclassifications have been made to prior year amounts to conform to the current year presentation.

Acquisition of bioCorneum

Acquisition of bioCorneum	9 Months Ended
	Sep. 30, 2016
Acquisition of bioCorneum
Acquisition	3. On March 9, 2016, the Company entered into an assets purchase agreement with Enaltus LLC, or Enaltus, to acquire exclusive U.S. rights to bioCorneum®, an advanced silicone scar treatment marketed exclusively to physicians. The acquisition of bioCorneum® aligns with the Company’s business development objectives and adds a complementary product that serves the needs of its customers. In connection with the acquisition, the Company recorded $2,000 and $0.2 million of professional fees for the three and nine months ended September 30, 2016, respectively, which are included in general and administrative expense. The aggregate preliminary acquisition date fair value of the consideration transferred was estimated at $7.4 million, which consisted of the following (in thousands): Fair Value Cash $ Deferred consideration Contingent consideration $ The deferred consideration and contingent consideration consist of future royalty payments to be paid on a quarterly basis to Enaltus on future bioCorneum® sales for the 4.5 years beginning January 1, 2024. The Company has determined the fair value of the deferred consideration and contingent consideration at the acquisition date using a Monte Carlo simulation model. The fair value of the deferred consideration is based on the future minimum royalty payments using the risk-free U.S. Treasury yield curve discount rate. The minimum estimated future payments due under the deferred consideration are $0.5 million. The fair value of the contingent consideration is based on projected future bioCorneum® sales and a risk adjusted discount rate. The terms of the agreement do not provide for a limitation on the maximum potential future payments. The inputs are significant inputs not observable in the market, which are referred to as Level 3 inputs and are further discussed in Note 5. The deferred consideration and contingent consideration components are classified as an other long-term liability and are subject to the recognition of subsequent changes in fair value through the results of operations. The Company allocated the total consideration transferred to the tangible and identifiable intangible assets acquired based on their respective fair values on the acquisition date, with the remaining unallocated amount recorded as goodwill. The goodwill arising from the transaction is primarily attributable to expected operational synergies, and all of goodwill will be deductible for income tax purposes. The condensed financial statements for the three and nine months ended September 30, 2016 include the results of operations of bioCorneum® from the date of acquisition. The following table summarizes the allocation of the fair value of the consideration transferred by major class for the business combination completed on March 9, 2016 (in thousands): March 9, 2016 Inventory $ Prepaid expenses Goodwill Intangible assets $ A summary of the intangible assets acquired, estimated useful lives and amortization method is as follows (in thousands): Estimated useful Amortization Amount life (in years) method Customer relationships $ Accelerated Trade name Straight-line $ The Company retained an independent third-party appraiser to assist management in its valuation; however, the purchase price allocation has not been finalized. This could result in adjustments to the carrying value of the assets acquired and liabilities assumed, the useful lives of intangible assets and residual amount allocated to goodwill. The preliminary allocation of the purchase price is based on the best estimates of management and is subject to revision based on the final valuations and estimates of useful lives. Pro forma results of operations have not been presented because the effect of the acquisition was not material to the Company's condensed results of operations.

Fair Value of Financial Instrum

Fair Value of Financial Instruments	9 Months Ended
	Sep. 30, 2016
Fair Value of Financial Instruments
Fair Value of Financial Instruments	4. The carrying amounts of cash and cash equivalents, accounts receivable, accounts payable, accrued liabilities, and customer deposits are reasonable estimates of their fair value because of the short maturity of these items. The fair value of the common stock warrant liability, deferred consideration and contingent consideration is discussed in Note 5. As of September 30, 2016, the Company had no outstanding long-term debt.

Fair Value Measurements

Fair Value Measurements	9 Months Ended
	Sep. 30, 2016
Fair Value Measurements
Fair Value Measurements	5. 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 warrants are valued using the fair value of common stock as of the measurement date. 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 Company assessed the fair value of the deferred consideration and contingent consideration for future royalty payments related to the acquisition of bioCorneum® using the Monte Carlo simulation model. Significant assumptions used in the measurement include future net sales for a defined term and the risk adjusted discount rate associated with the business. As the inputs are not observable, the overall, fair value measurement of the deferred consideration and contingent consideration 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, 2016 and December 31, 2015 and indicate the level of the fair value hierarchy utilized to determine such fair value (in thousands): Fair Value Measurements as of September 30, 2016 Using: Level 1 Level 2 Level 3 Total Liabilities: Liability for common stock warrants $ — — Liability for deferred consideration — — Liability for contingent consideration — — $ — — Fair Value Measurements as of December 31, 2015 Using: Level 1 Level 2 Level 3 Total Liabilities: Liability for common stock warrants $ — — $ — — The liability for common stock warrants is included in “accrued and other current liabilities” and the liability for the deferred consideration and contingent consideration is included in the “warranty reserve and other long-term liabilities” in the balance sheet. The following table provides a rollforward of the aggregate fair values of the Company’s common stock warrants, deferred and contingent consideration for which fair value is determined by Level 3 inputs (in thousands): Warrant Liability Balance, December 31, 2015 $ Increase in fair value through September 30, 2016 Balance, September 30, 2016 $ Deferred Consideration Liability Balance, December 31, 2015 $ — Initial fair value of acquisition-related deferred consideration Deferred consideration accretion expense Balance, September 30, 2016 $ Contingent Consideration Liability Balance, December 31, 2015 $ — Initial fair value of acquisition-related contingent consideration Contingent consideration accretion expense Balance, September 30, 2016 $ The Company recognizes changes in the fair value of the warrants, deferred consideration and contingent consideration in “other income (expense), net” in the statement of operations.

Product Warranties

Product Warranties	9 Months Ended
	Sep. 30, 2016
Product Warranties
Product Warranties	6. 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, 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 if a patient experiences 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 following table provides a rollforward of the accrued warranties (in thousands): Nine Months Ended September 30, 2016 2015 Beginning balance as of December 31 $ $ Payments made during the period Changes in accrual related to warranties issued during the period Changes in accrual related to pre-existing warranties Balance as of September 30 $ $

Net Loss Per Share

Net Loss Per Share	9 Months Ended
	Sep. 30, 2016
Net Loss Per Share
Net Loss Per Share	7. Net Loss Per Share Basic net 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 net 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). Dilutive net loss per share is the same as basic net 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, 2016 2015 2016 2015 Net loss (in thousands) $ $ $ $ Weighted average common shares outstanding, basic and diluted Net loss per share attributable to common stockholders $ $ $ $ The Company excluded the following potentially dilutive securities, outstanding as of September 30, 2016 and 2015, from the computation of diluted net loss per share attributable to common stockholders for the three and nine months ended September 30, 2016 and 2015 because they had an anti-dilutive impact due to the net loss attributable to common stockholders incurred for the periods. September 30, 2016 2015 Stock options to purchase common stock Warrants for the purchase of common stock

Balance Sheet Components

Balance Sheet Components	9 Months Ended
	Sep. 30, 2016
Balance Sheet Components
Balance Sheet Components	8. Balance Sheet Components a. Allowance for Sales Returns and Doubtful Accounts The Company has established an allowance for sales returns of $3.5 million and $0.7 million as of September 30, 2016 and December 31, 2015, respectively, recorded net against accounts receivable in the balance sheet. The Company has established an allowance for doubtful accounts of $0.4 million and $0.5 million as of September 30, 2016 and December 31, 2015, respectively, recorded net against accounts receivable in the balance sheet. b. Property and Equipment Property and equipment, net consist of the following (in thousands): September 30, December 31, 2016 2015 Leasehold improvements $ $ Laboratory equipment and toolings Computer equipment Software Office equipment Furniture and fixtures Less accumulated depreciation $ $ Depreciation expense for the three months ended September 30, 2016 and 2015 was $0.1 million and $0.1 million, respectively. Depreciation expense for the nine months ended September 30, 2016 and 2015 was $0.2 million and $0.2 million, respectively. c. Goodwill and Other Intangible Assets, net Goodwill represents the excess of the purchase price over the fair value of net assets of purchased businesses. Goodwill is not amortized, but instead subject to impairment tests on at least an annual basis and whenever circumstances suggest that goodwill may be impaired. The Company’s annual test for impairment is performed as of October 1 of each fiscal year. The Company makes a qualitative assessment of whether it is more likely than not that a reporting unit’s fair value is less than its carrying amount before applying the two-step goodwill impairment test. If the Company concludes that it is not more likely than not that the fair value of a reporting unit is less than its carrying amount, it is not required to perform the two-step impairment test for that reporting unit. Under the first step of the test, the Company is required to compare the fair value of a reporting unit with its carrying amount, including goodwill. If the fair value of a reporting unit exceeds its carrying amount, goodwill of the reporting unit is not considered impaired and the second step of the test is not performed. If the results of the first step of the impairment test indicate that the fair value of a reporting unit does not exceed its carrying amount, then the second step of the test is required. The second step of the test compares the implied fair value of the reporting unit goodwill with the carrying amount of that goodwill. The impairment loss is measured by the excess of the carrying amount of the reporting unit goodwill over the implied fair value of that goodwill. The changes in the carrying amount of goodwill during the nine months ended September 30, 2016 were as follows (in thousands): Balances as of December 31, 2015 Goodwill $ Accumulated impairment losses — Goodwill acquired (Note 3) Balances as of September 30, 2016 Goodwill Accumulated impairment losses $ The components of the Company’s other intangible assets consist of the following (in thousands): September 30, December 31, 2016 2015 Acquired FDA non-gel product approval $ $ Customer relationships — Trade name — Non-compete agreement — Less accumulated amortization $ $ Amortization expense for the three months ended September 30, 2016 and 2015 was $0.2 million and $15,000, respectively. Amortization expense for the nine months ended September 30, 2016 and 2015 was $0.5 million and $46,000, respectively. The following table summarizes the estimated amortization expense relating to the Company's intangible assets as of September 30, 2016 (in thous ands) : Amortization Period Expense Remainder of 2016 $ 2017 2018 2019 2020 $ d. Accrued and Other Current Liabilities Accrued and other current liabilities consist of the following (in thousands): September 30, December 31, 2016 2015 Accrued clinical trial and research and development expenses $ $ Audit, consulting and legal fees Payroll and related expenses Accrued commission Warrant liability Other $ $

Stockholders' Equity

Stockholders' Equity	9 Months Ended
	Sep. 30, 2016
Stockholders' Equity
Stockholders' Equity	9. Stockholders’ Equity a. Authorized Stock The Company’s Amended and Restated Certificate of Incorporation authorizes the Company to issue 210,000,000 shares of common and preferred stock, consisting of 200,000,000 shares of common stock with $0.01 par value and 10,000,000 shares of preferred stock with $0.01 par value. As of September 30, 2016 and December 31, 2015, the Company had no preferred stock issued or outstanding. b. On January 17, 2013, the Company entered into a Loan and Security Agreement, or the Original Term Loan Agreement, with Oxford Finance, LLC, or Oxford. On June 30, 2014, the Company entered into the Amended and Restated Loan and Security Agreement, or the Amended Term Loan Agreement, with Oxford. 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 of $14.671. As of September 30, 2016, there were warrants c. Stock Option Plans 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 under the 2007 Plan. The Company’s board of directors adopted the 2014 Equity Incentive Plan, or 2014 Plan, in July 2014, and the stockholders approved the 2014 Plan in October 2014. The 2014 Plan became effective upon completion of the IPO on November 3, 2014, at which time the Company ceased granting awards under the 2007 Plan. Under the 2014 Plan, the Company may issue ISOs, 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 the Company and their 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. As of September 30, 2016, a total of 2,045,495 shares of the Company’s common stock were reserved for issuance under the 2014 Plan. Pursuant to a board-approved Inducement Plan, the Company may issue NSOs and restricted stock unit awards, or collectively, stock awards, all of which may only be granted to new employees of the Company and their affiliates in accordance with NASDAQ Stock Market Rule 5635(c)(4) as an inducement material to such individuals entering into employment with the Company. As of September 30, 2016, inducement grants for 30,000 shares have been awarded, and 150,000 shares were reserved for future issuance under the Inducement Plan. Options under the 2007 Plan and the 2014 Plan may be granted for periods of up to ten years as determined by the Company’s 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. NSOs under the Inducement Plan may be granted for periods of up to ten years as determined by the board of directors, provided, the exercise price will be not less than 100% of the estimated fair value of the shares on the date of grant. Options generally vest with 25% of the grant vesting on the first anniversary and the balance vesting monthly on a straight-lined basis over the requisite service period of three additional years for the award. Additionally, options have been granted to certain key executives which vest upon achievement of performance conditions based on performance targets as defined by the board of directors, which have included net sales targets and defined corporate objectives over the performance period with possible payout ranging from 0% to 100% of the target award. Compensation expense is recognized on a straight-lined basis over the vesting term of one year based upon the probable performance target that will be met. 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 Plan, 2014 Plan and Inducement Plan: Weighted average Weighted remaining average contractual Option Shares exercise price term (year) Balances at December 31, 2015 $ Granted Exercised Forfeited Balances at September 30, 2016 $ 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 $0.4 million and $0.6 million for the three months ended September 30, 2016 and 2015, respectively. Stock-based compensation expense was $1.2 million and $1.4 million for the nine months ended September 30, 2016 and 2015, respectively. As of September 30, 2016, there was $3.5 million of unrecognized compensation costs related to stock options. The expense is recorded within the operating expense components in the statement of operations based on the recipients receiving the awards. These costs are expected to be recognized over a weighted average period of 2.57 years. d. The Company has issued restricted stock unit awards, or RSUs, under the 2014 Plan. The RSUs issued vest on a straight-line basis, either quarterly over a 4-year requisite service period or annually over a 3-year requisite service period. Activity related to RSUs is set forth below: Weighted average grant date Number of shares fair value Balances at December 31, 2015 $ Granted Vested Balances at September 30, 2016 $ Stock-based compensation expense for RSUs for the three months ended September 30, 2016 and 2015 was $0.5 million and $0, respectively. Stock-based compensation expense for RSUs for the nine months ended September 30, 2016 and 2015 was $1.1 million and $0, respectively. As of September 30, 2016, there was $3.5 million of total unrecognized compensation cost related to non-vested RSU awards. The cost is expected to be recognized over a weighted average period of 2.11 years. e. The Company’s board of directors adopted the 2014 Employee Stock Purchase Plan, or ESPP, in July 2014, and the stockholders approved the ESPP in October 2014. The ESPP allows eligible employees to purchase shares of the Company’s common stock at a discount through payroll deductions of up to 15% of their eligible compensation, subject to any plan limitations. The ESPP provides offering periods not to exceed 27 months, and each offering period will include purchase periods, which will be the approximately six-month period commencing with one exercise date and ending with the next exercise date, except that the first offering period commenced on the first trading day following the effective date of the Company’s registration statement. Employees are able to purchase shares at 85% of the lower of the fair market value of the Company’s common stock on the first trading day of the offering period or on the exercise date. A total of 255,500 shares of common stock were initially reserved for issuance under the ESPP, subject to certain annual increases. As of September 30, 2016, the number of shares of common stock reserved for issuance under the ESPP was 584,563. During the nine months ended September 30, 2016, employees purchased 122,667 shares of common stock at a weighted average price of $6.14 per share. As of September 30, 2016, the number of shares of common stock available for future issuance was 417,646. The Company estimated the fair value of employee stock purchase rights using the Black-Scholes model. Stock-based compensation expense related to the ESPP was $0.1 million and $0.1 million for the three months ended September 30, 2016 and 2015, respectively. Stock-based compensation expense related to the ESPP was $0.3 million and $0.3 million for the nine months ended September 30, 2016 and 2015, respectively.

Income Taxes

Income Taxes	9 Months Ended
	Sep. 30, 2016
Income Taxes
Income Taxes	10. Income Taxes The Company operates in several tax jurisdictions and is subject to taxes in each jurisdiction in which it conducts business. To date, the Company has incurred cumulative net losses and maintains a full valuation allowance on its net deferred tax assets due to the uncertainty surrounding realization of such assets. However, the Company has deferred tax liabilities associated with indefinite lived intangible assets that cannot be considered sources of income to support the realization of the deferred tax assets, and has provided for tax expense and a corresponding deferred tax liability associated with these indefinite lived intangible assets. Tax expense was $48,000 and $0 for the three and nine months ended September 30, 2016 and 2015, respectively.

Commitments and Contingencies

Commitments and Contingencies	9 Months Ended
	Sep. 30, 2016
Commitments and Contingencies
Commitments and Contingencies	11. Commitments and Contingencies a. Operating Leases The Company’s lease for its general office facility in Santa Barbara, California expires in February 2020. The Company also leases additional industrial space for warehouse, research and development and additional general office use. Rent expense was $0.1 million and $0.1 million for the three months ended September 30, 2016 and 2015, respectively. Rent expense was $0.4 million and $0.4 million for the nine months ended September 30, 2016 and 2015, 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. On September 25, 2015, a lawsuit styled as a class action of the Company’s stockholders was filed in the United States District Court for the Central District of California. The lawsuit names the Company and certain of its officers as defendants, or Sientra Defendants, and alleges violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, as amended, or the Exchange Act, in connection with allegedly false and misleading statements concerning the Company’s business, operations, and prospects. The plaintiff seeks damages and an award of reasonable costs and expenses, including attorneys’ fees. On November 24, 2015, three stockholders (or groups of stockholders) filed motions to appoint lead plaintiff(s) and to approve their selection on lead counsel. On December 10, 2015, the court entered an order appointing lead plaintiffs and approving their selection of lead counsel. On February 19, 2016, lead plaintiffs filed their consolidated amended complaint, which added a claim under Section 11 of the Securities Act and named as defendants the underwriters associated with the Company’s follow-on public offering that closed on September 23, 2015, or the Underwriter Defendants. On March 21, 2016, the Sientra Defendants and the Underwriter Defendants each filed a motion to dismiss, or the Motions to Dismiss, the consolidated amended complaints. On April 20, 2016, lead plaintiffs filed their opposition to the Motions to Dismiss, and the Sientra Defendants and Underwriter Defendants filed separate replies on May 5, 2016. On June 9, 2016, the court granted in part and denied in part the Motions to Dismiss. On July 14, 2016, the Sientra Defendants moved the court to reconsider its June 9, 2016 order and grant the Motions to Dismiss in full. On August 4, 2016, lead plaintiffs filed an opposition to the motion for reconsideration. On August 12, 2016, the court denied the motion for reconsideration, and the Sientra Defendants and the Underwriter Defendants each filed an answer to the consolidated amended complaint. On October 28, November 5, and November 19, 2015, three lawsuits styled as class actions of the Company’s stockholders were filed in the Superior Court of California for the County of San Mateo. The lawsuits name the Company, certain of its officers and directors, and the underwriters associated with the Company’s follow-on public offering that closed on September 23, 2015 as defendants. The lawsuits allege violations of Sections 11, 12(a)(2), and 15 of the Securities Act in connection with allegedly false and misleading statements in the Company’s offering documents associated with the follow-on offering concerning its business, operations, and prospects. The plaintiffs seek damages and an award of reasonable costs and expenses, including attorneys’ fees. On December 4, 2015, defendants removed all three lawsuits to the United States District Court for the Northern District of California. On December 15 and December 16, 2015, plaintiffs filed motions to remand the lawsuits back to San Mateo Superior Court, or the Motions to Remand. On January 19, 2016, defendants filed their opposition to the Motions to Remand, and plaintiffs filed their reply in support of the Motions to Remand on January 26, 2016. On May 20, 2016, the United States District Court for the Northern District of California granted plaintiffs’ Motions to Remand, and the San Mateo Superior Court received the remanded cases on May 27, 2016. On July 19, 2016, the San Mateo Superior Court consolidated the three lawsuits. On August 2, 2016, plaintiffs filed their consolidated complaint. On August 5, 2016, defendants filed a motion to stay all proceedings in favor of the class action filed in the United States District Court for the Central District of California. On September 13, 2016, the parties to the actions pending in the San Mateo Superior Court and the United States District Court for the Central District of California signed a memorandum of understanding that sets forth the material deal points of a settlement that covers both actions and includes class-wide relief. On September 13, 2016 and September 20, 2016, respectively, the parties filed notices of settlement in both courts. On September 22, 2016, the United States District Court for the Central District of California stayed that action pending the court’s approval of a settlement. On September 23, 2016, the San Mateo Superior Court stayed that action as well pending the court’s approval of a settlement. As a result of these developments, the Company has determined a probable loss has been incurred and has recognized a net charge to earnings of approximately $1.6 million within general and administrative expense which is comprised of the loss contingency of approximately $10.9 million, net of expected insurance proceeds of approximately $9.3 million. The Company has classified the loss contingency as “legal settlement payable” and the expected insurance proceeds as “insurance recovery receivable” on the accompanying condensed balance sheets. While it is possible that the Company may incur a loss greater than the amounts recognized in the accompanying interim financial statements, the Company is unable to determine a range of possible losses greater than the amount recognized. It is possible that additional suits will be filed, or allegations made by stockholders, with respect to these same or other matters and also naming the Company and/or its officers and directors as defendants. The Company believes it has meritorious defenses and intends to defend these lawsuits vigorously.

Subsequent Events

Subsequent Events	9 Months Ended
	Sep. 30, 2016
Subsequent Events.
Subsequent Events	12. Subsequent Events a. Acquisition of Certain Assets of Specialty Surgical Products, Inc. On November 2, 2016, pursuant to an Asset Purchase Agreement, or Purchase Agreement, by and among the Company and Specialty Surgical Products, Inc., or SSP, the Company acquired certain assets, consisting of the Dermaspan™, Softspan™, Allox® and Allox2® tissue expanders, from SSP for the purchase price of $5.0 million in cash, along with contingent cash payments of up to an additional $2.0 million if certain future revenue targets are met. The assets acquired consist of accounts receivable, inventory, consigned inventory, tooling, intellectual property and regulatory approvals, specified contracts and the associated assumed liabilities. The acquisition of these products aligns with the Company’s business development objectives and adds complementary products that serve the needs of its customers. The Company expects to account for the transaction as a business combination and is in the process of determining the allocation of the purchase price to acquired assets and assumed liabilities. A determination of the acquisition-date fair values of the assets acquired and the liabilities assumed is pending the completion of an independent appraisal and other evaluations and therefore further disclosures have not been made. Pro forma results of operations have not been presented because the effect of the business combination was not material to the Company's condensed results of operations. b. Resignation of Matthew Pigeon as Chief Financial Officer; Separation Agreement On October 26, 2016, Matthew Pigeon resigned from his position as Chief Financial Officer, Senior Vice President and Treasurer of the Company. The Company entered into a Separation Agreement, or the Separation Agreement, with Mr. Pigeon on November 7, 2016, pursuant to which, Mr. Pigeon is entitled to receive: (i) twelve (12) months of his base salary as in effect on the separation date paid in equal installments plus a payment of $78,750 for the remaining 2016 bonus earned by Mr. Pigeon in connection with the completion of the fiscal year prior to the separation date, consisting of (a) $52,500 payable upon separation and (b) $26,250 to be paid on January 30, 2017, and (ii) up to twelve (12) months of company-paid health insurance premiums to continue his coverage. The benefits provided for in the Separation Agreement are consistent with the benefits that Mr. Pigeon would have been entitled to receive under his Amended and Restated Employment Agreement had Mr. Pigeon been terminated without cause. c. Appointment of Patrick F. Williams as Chief Financial Officer; Employment Agreement On October 26, 2016, the Company appointed Patrick F. Williams as its Chief Financial Officer, Senior Vice President and Treasurer. In connection with the appointment, the Company entered into an Employment Agreement, or the Employment Agreement, with Mr. Williams on October 26, 2016, pursuant to which: (i) Mr. William’s annual base salary will be three hundred fifty thousand dollars, (ii) Mr. Williams shall be eligible to earn an annual discretionary performance-based bonus of up to 50% of his base salary, and (iii) for the partial 2016 calendar year, Mr. Williams shall also be eligible for a discretionary performance-based bonus paid on a pro-rata basis to the extent that it is determined by the compensation committee of the board of directors. Additionally, on October 26, 2016, the compensation committee granted to Mr. Williams a nonqualified stock option under the Inducement Plan to purchase 300,000 shares of the Company’s common stock at a per share exercise price equal to the closing price of the Company’s common stock on the grant date. The stock options shall vest as follows: (i) 200,000 option shares shall vest and be exercisable as to 50,000 option shares on the one-year anniversary of the grant date, and as to 150,000 option shares, in thirty-six equal consecutive monthly installments commencing on the thirteenth month anniversary of the grant date, and (ii) 100,000 option shares shall vest and be exercisable in accordance with performance criteria established by the compensation committee. Mr. Williams is also entitled to participate in all employee benefit programs for which he is eligible. d. Inducement Plan Increase On October 26, 2016, the board of directors approved an increase to the share reserve under the Inducement Plan from 180,000 shares to 400,000 shares in order to cover in part the 300,000 share inducement grant awarded to Mr. Williams in connection with his appointment as the Company’s new Chief Financial Officer, Senior Vice President and Treasurer. As of October 26, 2016, 70,000 shares remain available for future awards under the Inducement Plan. e. Silimed Litigation On November 6, 2016, Silimed filed a lawsuit in the U.S. District Court for the Southern District of New York naming the Company as the defendant and alleging breach of contract of the Amended and Restated Exclusivity Agreement executed by the Company and Silimed in April 2007, or the 2007 Agreement, unfair competition, unjust enrichment, and misappropriation of trade secrets against the Company. In its complaint, Silimed alleges that the Company’s theft, misuse, and improper disclosure of Silimed’s confidential, proprietary, and trade secret manufacturing information was done in order for the Company to develop its own manufacturing capability that the Company intends to use to manufacture its PMA-approved products. Silimed is seeking a declaration that the Company is in material breach of the 2007 Agreement, a preliminary and permanent injunction to prevent the Company’s allegedly wrongful use and disclosure of Silimed’s confidential and proprietary information, as well as unquantified compensatory and punitive damages. The Company believes Silimed’s claims are legally and factually unsupported and intends to defend this lawsuit vigorously.

Summary of Significant Accoun18

Summary of Significant Accounting Policies (Policies)	9 Months Ended
	Sep. 30, 2016
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 Annual Report on Form 10-K for the year ended December 31, 2015 filed with the SEC on March 10, 2016, or the Annual Report. The results for the three and nine months ended September 30, 2016 are not necessarily indicative of results to be expected for the year ending December 31, 2016, any other interim periods, or any future year or period.
Going Concern	b. The accompanying financial statements have been prepared on a going concern basis, which implies the Company will continue to realize its assets and discharge its liabilities in the normal course of business. As of September 30, 2016, Silimed is the Company’s sole source manufacturer of silicone gel breast implants and certain other products, but has not been able to resume manufacturing products for the Company. Accordingly, the Company continues to evaluate the availability of alternative manufacturing sources, including with Vesta Intermediate Funding, Inc., or Vesta, a Lubrizol Lifesciences company, which is establishing manufacturing capacity for the Company and is working with the Company to finalize a long-term supply arrangement for the Company’s PMA-approved breast implants. The continuation of the Company as a going concern is dependent upon many factors including Silimed’s ability to resume the manufacturing of the Company’s medical devices, resolution of any outstanding disputes with Silimed (see Note 12—Subsequent Events – Silimed Litigation), the availability of alternative manufacturing sources, including the entry into a long-term supply arrangement with Vesta or other manufacturers, and continued sale of the Company’s products. Since inception, the Company has incurred net losses. At September 30, 2016, the Company had cash and cash equivalents of $79.3 million. The Company’s ability to continue to meet its obligations and to achieve its business objectives is dependent upon, amongst other things, generating sufficient revenues. The Company believes that it has the ability to continue as a going concern for at least 12 months. These financial statements do not include any adjustments to the recoverability and classification of recorded asset amounts and classification of liabilities that might be necessary should the Company be unable to continue as a going concern.
Use of Estimates	c. 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	d. Significant Accounting Policies There have been no significant changes to the accounting policies during the three and nine months ended September 30, 2016, as compared to the significant accounting policies described in the “Notes to Financial Statements” in the Annual Report.
Recent Accounting Pronouncements	e. Recent Accounting Pronouncements Recently Adopted Accounting Standards In November 2015, the Financial Accounting Standards Board, or FASB, issued accounting standard update, or ASU, 2015-17, Balance Sheet Classification of Deferred Taxes , which simplifies the presentation of deferred income taxes. The standard requires that deferred tax assets and liabilities be classified as noncurrent on the balance sheet rather than being separated into current and noncurrent. ASU 2015-17 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2016. Early adoption is permitted and the standard may be applied either retrospectively or on a prospective basis to all deferred tax assets and liabilities. The Company early adopted ASU 2015-17 during the third quarter of 2016 on a prospective basis. The adoption of this ASU did not have a significant impact on the Company’s financial statements. Recently Issued Accounting Standards In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers. The standard was issued to provide a single framework that replaces existing industry and transaction specific GAAP with a five step analysis of transactions to determine when and how revenue is recognized. The accounting standard update will replace most existing revenue recognition guidance in GAAP when it becomes effective. In August 2015, the FASB issued ASU 2015-14, Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date, to defer the effective date of ASU 2014-09 by one year. Therefore, ASU 2014-09 will become effective for the Company beginning in fiscal year 2018. Early adoption would be permitted for the Company beginning in fiscal year 2017. The standard permits the use of either the retrospective or cumulative transition method. The Company is currently evaluating the accounting, transition and disclosure requirements of the standard and cannot currently estimate the financial statement impact of adoption. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) which supersedes FASB Accounting Standard Codification Leases (Topic 840). The standard is intended to increase the transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. This accounting standard update will be effective for the Company beginning in fiscal year 2019. The Company is currently evaluating the impact that adoption of the standard will have on the financial statements and related disclosures. In March 2016, the FASB issued ASU 2016-09, Compensation – Stock Compensation (Topic 718). The standard identifies areas for simplification involving several aspects of accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, an option to recognize gross stock compensation expense with actual forfeitures recognized as they occur, as well as certain classifications on the statement of cash flows. This accounting standard update will be effective for the Company beginning in fiscal year 2017. The Company is currently evaluating the impact that adoption of the standard will have on the financial statements and related disclosures. In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows – Classifications of Certain Cash Receipts and Cash Payments (Topic 230) . The standard update addresses eight specific cash flow issues not currently addressed by GAAP, with the objective of reducing the existing diversity in practice of how these cash receipts and payments are presented and classified in the statement of cash flows. This accounting standard update will be effective for the Company beginning in fiscal year 2018. The Company is currently evaluating the impact that adoption of the standard will have on the financial statements and related disclosures.
Reclassifications	f. Reclassifications Certain reclassifications have been made to prior year amounts to conform to the current year presentation.

Acquisition of bioCorneum (Tabl

Acquisition of bioCorneum (Tables)	9 Months Ended
	Sep. 30, 2016
Acquisition of bioCorneum
Schedule of aggregate preliminary acquisition date fair value of consideration transferred	The aggregate preliminary acquisition date fair value of the consideration transferred was estimated at $7.4 million, which consisted of the following (in thousands): Fair Value Cash $ Deferred consideration Contingent consideration $
Schedule of allocation of the fair value of the consideration transferred by major class	The following table summarizes the allocation of the fair value of the consideration transferred by major class for the business combination completed on March 9, 2016 (in thousands): March 9, 2016 Inventory $ Prepaid expenses Goodwill Intangible assets $
Schedule of intangible assets acquired	A summary of the intangible assets acquired, estimated useful lives and amortization method is as follows (in thousands): Estimated useful Amortization Amount life (in years) method Customer relationships $ Accelerated Trade name Straight-line $

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	9 Months Ended
	Sep. 30, 2016
Fair Value Measurements
Schedule of Company's liabilities that are measured at fair value on a recurring basis	The following tables present information about the Company’s liabilities that are measured at fair value on a recurring basis as of September 30, 2016 and December 31, 2015 and indicate the level of the fair value hierarchy utilized to determine such fair value (in thousands): Fair Value Measurements as of September 30, 2016 Using: Level 1 Level 2 Level 3 Total Liabilities: Liability for common stock warrants $ — — Liability for deferred consideration — — Liability for contingent consideration — — $ — — Fair Value Measurements as of December 31, 2015 Using: Level 1 Level 2 Level 3 Total Liabilities: Liability for common stock warrants $ — — $ — —
Schedule of aggregate fair values of the Company's common stock warrants and contingent consideration for which fair value is determined by Level 3 inputs	The following table provides a rollforward of the aggregate fair values of the Company’s common stock warrants, deferred and contingent consideration for which fair value is determined by Level 3 inputs (in thousands): Warrant Liability Balance, December 31, 2015 $ Increase in fair value through September 30, 2016 Balance, September 30, 2016 $ Deferred Consideration Liability Balance, December 31, 2015 $ — Initial fair value of acquisition-related deferred consideration Deferred consideration accretion expense Balance, September 30, 2016 $ Contingent Consideration Liability Balance, December 31, 2015 $ — Initial fair value of acquisition-related contingent consideration Contingent consideration accretion expense Balance, September 30, 2016 $

Product Warranties (Tables)

Product Warranties (Tables)	9 Months Ended
	Sep. 30, 2016
Product Warranties
Schedule of rollforward of the accrued warranties	The following table provides a rollforward of the accrued warranties (in thousands): Nine Months Ended September 30, 2016 2015 Beginning balance as of December 31 $ $ Payments made during the period Changes in accrual related to warranties issued during the period Changes in accrual related to pre-existing warranties Balance as of September 30 $ $

Net Loss Per Share (Tables)

Net Loss Per Share (Tables)	9 Months Ended
	Sep. 30, 2016
Net Loss Per Share
Schedule of net loss per share, basic and diluted	Three Months Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 Net loss (in thousands) $ $ $ $ Weighted average common shares outstanding, basic and diluted Net loss per share attributable to common stockholders $ $ $ $
Schedule of potentially dilutive securities excluded from the computation of diluted net loss per share attributable to common stockholders	September 30, 2016 2015 Stock options to purchase common stock Warrants for the purchase of common stock

Balance Sheet Components (Table

Balance Sheet Components (Tables)	9 Months Ended
	Sep. 30, 2016
Balance Sheet Components
Schedule of property and equipment, net	Property and equipment, net consist of the following (in thousands): September 30, December 31, 2016 2015 Leasehold improvements $ $ Laboratory equipment and toolings Computer equipment Software Office equipment Furniture and fixtures Less accumulated depreciation $ $
Schedule of changes in the carrying amount of goodwill	The changes in the carrying amount of goodwill during the nine months ended September 30, 2016 were as follows (in thousands): Balances as of December 31, 2015 Goodwill $ Accumulated impairment losses — Goodwill acquired (Note 3) Balances as of September 30, 2016 Goodwill Accumulated impairment losses $
Schedule of intangible assets	The components of the Company’s other intangible assets consist of the following (in thousands): September 30, December 31, 2016 2015 Acquired FDA non-gel product approval $ $ Customer relationships — Trade name — Non-compete agreement — Less accumulated amortization $ $
Schedule of estimated amortization expense	The following table summarizes the estimated amortization expense relating to the Company's intangible assets as of September 30, 2016 (in thous ands) : Amortization Period Expense Remainder of 2016 $ 2017 2018 2019 2020 $
Schedule of accrued and other current liabilities	Accrued and other current liabilities consist of the following (in thousands): September 30, December 31, 2016 2015 Accrued clinical trial and research and development expenses $ $ Audit, consulting and legal fees Payroll and related expenses Accrued commission Warrant liability Other $ $

Stockholders' Equity (Tables)

Stockholders' Equity (Tables)	9 Months Ended
	Sep. 30, 2016
Stockholders' Equity
Summary of option activity	Weighted average Weighted remaining average contractual Option Shares exercise price term (year) Balances at December 31, 2015 $ Granted Exercised Forfeited Balances at September 30, 2016 $
Summary of RSUs activity	Weighted average grant date Number of shares fair value Balances at December 31, 2015 $ Granted Vested Balances at September 30, 2016 $

Formation and Business of the25

Formation and Business of the Company (Details) - USD ($) $ / shares in Units, $ in Millions	Jul. 08, 2016	Sep. 23, 2015
Formation and Business of the Company
Term of the Silimed GMP certificate	2 years
Common stock | Follow-On Offering
Formation and Business of the Company
Proceeds from IPO/follow-on offering, net of costs (in shares)		3,000,000
Public offering price (in dollars per share)		$ 22
Net proceeds after deducting underwriting discounts and commissions and offering expenses		$ 61.4
Payment of underwriting discounts and commissions and offering expenses		4
Offering expenses		$ 0.6

Summary of Significant Accoun26

Summary of Significant Accounting Policies (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2016	Dec. 31, 2015	Sep. 30, 2015	Dec. 31, 2014
Summary of Significant Accounting Policies
Cash and cash equivalents	$ 79,282	$ 112,801	$ 148,939	$ 96,729
Going concern within next 12 months	false

Acquisition of bioCorneum (Deta

Acquisition of bioCorneum (Details) - U.S. Rights to bioCorneum - USD ($)	Jan. 01, 2024	Mar. 09, 2016	Sep. 30, 2016	Sep. 30, 2016
Acquisition
Cash		$ 6,859,000
Deferred consideration		434,000
Contingent consideration		116,000
Total		$ 7,409,000
Minimum
Acquisition
Estimated future payments due			$ 500,000	$ 500,000
General & administrative expense
Acquisition
Professional fees			$ 2,000	$ 200,000
Forecast
Acquisition
Number of years for future royalty payments to be paid	4 years 6 months

Acquisition of bioCorneum (Fair

Acquisition of bioCorneum (Fair Value) (Details) - USD ($) $ in Thousands	Sep. 30, 2016	Mar. 09, 2016
Fair value of the assets acquired
Goodwill	$ 3,273
U.S. Rights to bioCorneum
Fair value of the assets acquired
Inventory		$ 100
Prepaid expenses		36
Goodwill		3,273
Intangible assets		4,000
Total fair value of assets acquired		$ 7,409

Acquisition of bioCorneum (Inta

Acquisition of bioCorneum (Intangible assets) (Details) - U.S. Rights to bioCorneum $ in Thousands	Mar. 09, 2016USD ($)
Intangible assets acquired
Intangible assets acquired	$ 4,000
Customer relationships
Intangible assets acquired
Intangible assets acquired	$ 3,200
Estimated useful life (in years)	10 years
Trade name
Intangible assets acquired
Intangible assets acquired	$ 800
Estimated useful life (in years)	12 years

Fair Value of Financial Instr30

Fair Value of Financial Instruments (Details) $ in Thousands	Sep. 30, 2016USD ($)
Term loan agreement
Long-term Debt
Long-term Debt.	$ 0

Fair Value Measurements (Detail

Fair Value Measurements (Details) - Recurring - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Fair Value Measurements
Total	$ 687	$ 60
Warranty reserve and other long-term liabilities
Fair Value Measurements
Liability for deferred consideration	439
Liability for contingent consideration	131
Warrants | Accrued and other current liabilities
Fair Value Measurements
Liability for common stock warrants	117	60
Level 3
Fair Value Measurements
Total	687	60
Level 3 | Warranty reserve and other long-term liabilities
Fair Value Measurements
Liability for deferred consideration	439
Liability for contingent consideration	131
Level 3 | Warrants | Accrued and other current liabilities
Fair Value Measurements
Liability for common stock warrants	$ 117	$ 60

Fair Value Measurements (Level

Fair Value Measurements (Level 3) (Details) $ in Thousands	9 Months Ended
	Sep. 30, 2016USD ($)
Derivative | Warrants
Fair values of the Company's common stock warrants and contingent consideration determined by Level 3 inputs.
Balance at beginning of the period	$ 60
Increase in fair value through June 30, 2016	57
Balance at the end of the period	117
Deferred Consideration Liability
Fair values of the Company's common stock warrants and contingent consideration determined by Level 3 inputs.
Initial fair value of acquisition	434
Accretion expense	5
Balance at the end of the period	439
Contingent Consideration Liability
Fair values of the Company's common stock warrants and contingent consideration determined by Level 3 inputs.
Initial fair value of acquisition	116
Accretion expense	15
Balance at the end of the period	$ 131

Product Warranties (Details)

Product Warranties (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015
Product Warranties
Period to claim reimbursement under limited warranty program	10 years
Beginning balance	$ 1,332	$ 961
Payments made during the period	(19)	(15)
Changes in accrual related to warranties issued during the period	134	438
Changes in accrual related to pre-existing warranties	(1)	7
Balance	$ 1,446	$ 1,391

Net Loss Per Share (Details)

Net Loss Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Net loss per share
Net loss	$ (9,963)	$ (6,604)	$ (32,094)	$ (12,980)
Weighted average common shares outstanding, basic and diluted	18,208,112	15,207,870	18,111,593	15,022,022
Net loss per share attributable to common stockholders	$ (0.55)	$ (0.43)	$ (1.77)	$ (0.86)
Potentially dilutive securities
Potentially dilutive securities			1,808,306	1,402,699
Stock options
Potentially dilutive securities
Potentially dilutive securities			1,760,596	1,354,989
Warrants
Potentially dilutive securities
Potentially dilutive securities			47,710	47,710

Balance Sheet Components (Allow

Balance Sheet Components (Allowance) (Details) - USD ($) $ in Millions	Sep. 30, 2016	Dec. 31, 2015
Balance Sheet Components
Allowance for sales returns	$ 3.5	$ 0.7
Allowance for doubtful accounts	$ 0.4	$ 0.5

Balance Sheet Components (PPE)

Balance Sheet Components (PPE) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015	Dec. 31, 2015
Property and equipment, net
Property and equipment, gross	$ 3,135		$ 3,135		$ 2,245
Less accumulated depreciation	(1,059)		(1,059)		(841)
Property and equipment, net	2,076		2,076		1,404
Depreciation expense	100	$ 100	200	$ 200
Leasehold improvements
Property and equipment, net
Property and equipment, gross	86		86		86
Laboratory equipment and toolings
Property and equipment, net
Property and equipment, gross	1,343		1,343		366
Computer equipment
Property and equipment, net
Property and equipment, gross	283		283		277
Software
Property and equipment, net
Property and equipment, gross	569		569		655
Office equipment
Property and equipment, net
Property and equipment, gross	129		129		137
Furniture and fixtures
Property and equipment, net
Property and equipment, gross	$ 725		$ 725		$ 724

Balance Sheet Components (Goodw

Balance Sheet Components (Goodwill and Intangibles) (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015	Dec. 31, 2015
Goodwill
Goodwill	$ 17,551,000		$ 17,551,000		$ 14,278,000
Accumulated impairment losses	(14,278,000)		(14,278,000)		(14,278,000)
Goodwill	3,273,000		3,273,000
Goodwill acquired (Note 3)			3,273,000
Other intangible assets
Less accumulated amortization	(2,157,000)		(2,157,000)		(1,660,000)
Intangible assets, net	3,586,000		3,586,000		53,000
Amortization expense	200,000	$ 15,000	500,000	$ 46,000
Estimated amortization expense
Remainder of 2016	210,000		210,000
2,017	813,000		813,000
2,018	612,000		612,000
2,019	464,000		464,000
2,020	353,000		353,000
Intangible assets, net	2,452,000		2,452,000
Acquired FDA non-gel product approval
Other intangible assets
Finite-lived assets, gross	1,713,000		1,713,000		$ 1,713,000
Customer relationships
Other intangible assets
Finite-lived assets, gross	3,200,000		3,200,000
Trade name
Other intangible assets
Finite-lived assets, gross	800,000		800,000
Non-compete agreement
Other intangible assets
Finite-lived assets, gross	$ 30,000		$ 30,000

Balance Sheet Components (Accru

Balance Sheet Components (Accrued liabilities) (Details) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Accrued and other current liabilities
Accrued clinical trial and research and development expenses	$ 96	$ 215
Audit, consulting and legal fees	2,876	1,208
Payroll and related expenses	1,831	2,494
Accrued commission	1,925	1,960
Warrant liability	117	60
Other	662	1,022
Total	$ 7,507	$ 6,959

Stockholders' Equity (Details)

Stockholders' Equity (Details) - $ / shares	Sep. 30, 2016	Dec. 31, 2015
Stock other disclosures
Shares authorized	210,000,000
Common stock, shares authorized	200,000,000	200,000,000
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Preferred stock, shares authorized	10,000,000	10,000,000
Preferred stock, par value (in dollars per share)	$ 0.01	$ 0.01
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0

Stockholders' Equity (Warrants)

Stockholders' Equity (Warrants) (Details) - $ / shares	Jun. 30, 2014	Jan. 17, 2013	Sep. 30, 2016
Common stock
Common Stock Warrants
Aggregate number of common shares to purchase			47,710
Oxford Finance, LLC
Common Stock Warrants
Exercise price (in dollars per share)	$ 14.671	$ 14.671
Tranche A, B and C loans | Oxford Finance, LLC
Common Stock Warrants
Warrant term	7 years	7 years
Percentage of term loan amounts	3.00%	3.00%
Tranche D term loan | Oxford Finance, LLC
Common Stock Warrants
Warrant term	7 years	7 years
Percentage of term loan amounts	2.50%	2.50%

Stockholders' Equity (Options)

Stockholders' Equity (Options) (Details) - USD ($) $ / shares in Units, $ in Millions	Nov. 03, 2014	Sep. 30, 2016	Apr. 30, 2007	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015	Dec. 31, 2015
2007 Plan
Stockholders' Equity
Common stock reserved for issuance (in shares)			1,690,448
2014 Plan
Stockholders' Equity
Common stock reserved for issuance (in shares)	1,027,500	2,045,495		2,045,495		2,045,495
Inducement Plan
Stockholders' Equity
Number of shares awarded						30,000
Number of shares available for future grants		150,000		150,000		150,000
Minimum | Inducement Plan
Stockholders' Equity
Purchase price of awards expressed as a percentage of fair value of shares on the date of grant		100.00%
Maximum | 2007 Plan
Stockholders' Equity
Grant period of stock awards			10 years
Maximum | 2014 Plan
Stockholders' Equity
Grant period of stock awards	10 years
Maximum | Inducement Plan
Stockholders' Equity
Grant period of stock awards		10 years
Stock options
Stockholders' Equity
Number of additional years of requisite service period						3 years
Number of options
Balance at the beginning of period (in shares)						2,785,672
Options granted (in shares) | shares						271,753
Options exercised (in shares)						(474,799)
Options forfeited (in shares)						(49,205)
Balance at the end of the period (in shares)		2,533,421		2,533,421		2,533,421		2,785,672
Weighted average exercise price
Balance at the beginning of period (in dollars per share)						$ 6.66
Options granted (in dollars per share)						6.14
Options exercised (in dollars per share)						1.92
Options forfeited (in dollars per share)						15.32
Balance at the end of period (in dollars per share)		$ 7.33		$ 7.33		$ 7.33		$ 6.66
Additional information
Weighted average remaining contractual term						7 years 7 days		6 years 7 months 6 days
Stock-based compensation expense				$ 0.4	$ 0.6	$ 1.2	$ 1.4
Unrecognized compensation costs (in dollars)		$ 3.5		$ 3.5		$ 3.5
Weighted average period over which unrecognized compensation costs are expected to be recognized						2 years 6 months 26 days
Stock options | Key executives
Stockholders' Equity
Vesting period						1 year
Stock options | Minimum
Stockholders' Equity
Vesting percentage						25.00%
Stock options | Minimum | Key executives
Stockholders' Equity
Percentage of possible payouts of the target award						0.00%
Stock options | Maximum | Key executives
Stockholders' Equity
Percentage of possible payouts of the target award						100.00%
Stock options | One-year anniversary of the grant date
Stockholders' Equity
Vesting percentage						25.00%
Incentive stock options | Minimum
Stockholders' Equity
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' Equity
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%		10.00%		10.00%

Stockholders' Equity (Restricte

Stockholders' Equity (Restricted Stock) (Details) - Restricted stock units - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Stockholders' Equity, other disclosures
Requisite service period, quarterly			4 years
Requisite service period, annually			3 years
Stock-based compensation expense	$ 500,000	$ 0	$ 1,100,000	$ 0
Unrecognized compensation costs (in dollars)	$ 3,500,000		$ 3,500,000
Weighted average period over which unrecognized compensation costs are expected to be recognized			2 years 1 month 10 days
Number of shares
Balance at beginning of the period			17,993
Granted			557,240
Vested			(3,375)
Balance at end of the period	571,858		571,858
Weighted average grant date fair value
Balance at beginning of the period			$ 3.88
Granted			8.21
Vested			3.88
Balance at end of the period	$ 8.09		$ 8.09

Stockholders' Equity (Stock Pur

Stockholders' Equity (Stock Purchase) (Details) - 2014 Employee Stock Purchase Plan - USD ($) $ / shares in Units, $ in Millions	1 Months Ended	3 Months Ended		9 Months Ended
	Oct. 31, 2014	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Stockholders' Equity
Purchase period of offering	6 months
Rate of purchase price of stock on fair value (as a percent)	85.00%
Number of shares reserved for future issuance	255,500	584,563		584,563
Purchases under the award				122,667
Weighted Average purchase price		$ 6.14		$ 6.14
Number of shares available for future grants		417,646		417,646
Stock-based compensation expense		$ 0.1	$ 0.1	$ 0.3	$ 0.3
Maximum
Stockholders' Equity
Discount rate on the value of shares through payroll deductions (as a percent)	15.00%
Expiration period of each offering	27 months

Income Taxes (Details)

Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended	9 Months Ended
	Sep. 30, 2016	Sep. 30, 2016
Income Taxes
Tax expense	$ 48	$ 48

Commitments and Contingencies (

Commitments and Contingencies (Details) $ in Thousands	Jul. 19, 2016lawsuit	Dec. 04, 2015lawsuit	Nov. 24, 2015shareholder	Nov. 19, 2015lawsuit	Sep. 30, 2016USD ($)	Sep. 30, 2016USD ($)	Sep. 30, 2015USD ($)	Sep. 30, 2016USD ($)	Sep. 30, 2015USD ($)
Operating Leases
Rent expense						$ 100	$ 100	$ 400	$ 400
Contingencies
Legal settlement payable					$ 10,900	10,900		10,900
Insurance recovery receivable					9,282	9,282		9,282
Class Action Lawsuits
Contingencies
Number of stockholders filed motions to appoint lead plaintiff | shareholder			3
Number of lawsuits filed | lawsuit				3
Number of lawsuits dismissed | lawsuit		3
Number of lawsuits consolidated | lawsuit	3
Legal settlement payable					10,900	10,900		10,900
Insurance recovery receivable					9,300	$ 9,300		$ 9,300
Class Action Lawsuits | General & administrative expense
Contingencies
Contingency loss in period					$ 1,600

Subsequent Events (Details)

Subsequent Events (Details)	Nov. 07, 2016USD ($)	Nov. 02, 2016USD ($)	Oct. 26, 2016item$ / yrshares	Jan. 30, 2017USD ($)	Sep. 30, 2016shares
Inducement Plan
Subsequent events
Number of shares reserved for future issuance					180,000
Subsequent events | Inducement Plan
Subsequent events
Number of shares reserved for future issuance			400,000
Number of shares available for future grants			70,000
Subsequent events | Matthew Pigeon | Separation Agreement with Matthew Pigeon
Subsequent events
Base salary, number of months	12 months
Bonus earned | $	$ 78,750
Bonus paid | $	$ 52,500
Subsequent events | Matthew Pigeon | Forecast | Separation Agreement with Matthew Pigeon
Subsequent events
Bonus paid | $				$ 26,250
Subsequent events | Patrick F. Williams | Employment Agreement with Patrick F. Williams
Subsequent events
Employment agreement, salary (in dollars per year) | $ / yr | $ / yr			350,000
Employment agreement, annual discretionary performance-based bonus percentage, maximum (as a percent)			50.00%
Subsequent events | Patrick F. Williams | Inducement Plan | Service based
Subsequent events
Vesting and exercisable (in shares)			200,000
Subsequent events | Patrick F. Williams | Inducement Plan | Service based | One-year anniversary of the grant date
Subsequent events
Vesting and exercisable (in shares)			50,000
Subsequent events | Patrick F. Williams | Inducement Plan | Service based | Commencing on thirteenth month anniversary of the grant date
Subsequent events
Vesting and exercisable (in shares)			150,000
Number of equal consecutive monthly installments | item			36
Subsequent events | Patrick F. Williams | Inducement Plan | Performance based
Subsequent events
Vesting and exercisable (in shares)			100,000
Subsequent events | Patrick F. Williams | Chief Financial Officer | Inducement Plan
Subsequent events
Options granted (in shares) | shares			300,000
Subsequent events | Maximum | Matthew Pigeon | Separation Agreement with Matthew Pigeon
Subsequent events
Company-paid health insurance premiums, number of months	12 months
Asset Purchase Agreement | Subsequent events
Subsequent events
Cash paid | $		$ 5,000,000
Asset Purchase Agreement | Subsequent events | Maximum
Subsequent events
Contingent cash payments due | $		$ 2,000,000