Miramar Labs (KTLC) 10-Q 16 May 17 2017 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information Document - shares	3 Months Ended
	Mar. 31, 2017	May 15, 2017
Document and Entity Information [Abstract]
Entity Registrant Name	Miramar Labs, Inc.
Entity Central Index Key	1,586,727
Document Type	10-Q
Document Period End Date	Mar. 31, 2017
Amendment Flag	false
Document Fiscal Year Focus	2,017
Document Fiscal Period Focus	Q1
Current Fiscal Year End Date	--12-31
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		9,334,857

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($)	Mar. 31, 2017	Dec. 31, 2016
Current assets:
Cash and cash equivalents	$ 1,058,383	$ 2,203,639
Accounts receivable, net	2,948,241	3,159,423
Inventories	6,869,402	6,649,840
Prepaid expenses and other current assets	331,300	341,048
Total current assets	11,207,326	12,353,950
Property and equipment, net	628,884	714,797
Restricted cash	295,067	295,067
Other non-current assets	13,976	13,976
TOTAL ASSETS	12,145,253	13,377,790
Current liabilities:
Notes payable, net of discount	9,498,670	9,916,626
Derivative liability	6,000,209	0
Accounts payable	1,638,216	1,582,145
Accrued and other current liabilities	4,815,482	4,567,076
Deferred revenue	138,480	182,160
Total current liabilities	22,091,057	16,248,007
Warrant liability	0	7,342
Deferred rent, non-current	67,607	77,309
TOTAL LIABILITIES	22,158,664	16,332,658
Commitments and contingencies (Note 6)
Stockholders’ deficit:
Common stock, $0.001 par value - 100,000,000 shares authorized and 9,334,857 shares issued and outstanding at March 31, 2017 and December 31, 2016	9,335	9,335
Additional paid-in capital	111,120,122	110,918,412
Accumulated deficit	(121,142,868)	(113,882,615)
TOTAL STOCKHOLDERS’ DEFICIT	(10,013,411)	(2,954,868)
TOTAL LIABILITIES AND STOCKHOLDERS’ DEFICIT	12,145,253	13,377,790
Blank check preferred stock
Stockholders’ deficit:
Convertible preferred stock	$ 0	$ 0

Condensed Consolidated Balance3

Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares	Mar. 31, 2017	Dec. 31, 2016
Common stock, par value (usd per share)	$ 0.001	$ 0.001
Common stock, shares authorized (shares)	100,000,000	100,000,000
Common stock, shares issued (shares)	9,334,857	9,334,857
Common stock, shares outstanding (shares)	9,334,857	9,334,857
Blank check preferred stock
Convertible preferred stock, par value (usd per share)	$ 0.001	$ 0.001
Convertible preferred stock, shares authorized (shares)	5,000,000	5,000,000
Convertible preferred stock, shares issued (shares)	0	0
Convertible preferred stock, shares outstanding (shares)	0	0

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations and Comprehensive Loss - USD ($)	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Income Statement [Abstract]
Revenue	$ 3,814,867	$ 4,287,333
Cost of revenue	1,692,761	2,028,557
Gross margin	2,122,106	2,258,776
Operating expenses:
Research and development	752,676	921,589
Selling and marketing	3,003,655	3,023,009
General and administrative	1,540,117	1,337,996
Total operating expenses	5,296,448	5,282,594
Loss from operations	(3,174,342)	(3,023,818)
Interest income	853	1,140
Interest expense	(3,940,855)	(315,748)
Other income, net	(143,434)	25,355
Net loss before provision for income taxes	(7,257,778)	(3,313,071)
Provision for income taxes	(2,475)	(1,525)
Net and comprehensive loss attributable to common stockholders	$ (7,260,253)	$ (3,314,596)
Weighted-average common shares used in computing net loss per share attributable to common stockholders, basic and diluted	9,334,857	398,541
Net loss per share attributable to common stockholders, basic and diluted (usd per share)	$ (0.78)	$ (8.32)

Condensed Consolidated Stateme5

Condensed Consolidated Statements of Stockholders’ Deficit Statement - 3 months ended Mar. 31, 2017 - USD ($)	Total	Common Stock	Additional Paid-In Capital	Accumulated Deficit
Stockholders' Equity Beginning Balance (shares) at Dec. 31, 2016		9,334,857
Stockholders' Equity Beginning Balance at Dec. 31, 2016	$ (2,954,868)	$ 9,335	$ 110,918,412	$ (113,882,615)
Stockholders' Equity (Deficit)
Conversion of convertible preferred stock warrants to common stock warrants	7,094		7,094
Offering costs for issuance of common stock	(47,388)
Stock-based compensation	242,004		242,004
Net loss	(7,260,253)			(7,260,253)
Stockholders' Equity Ending Balance (shares) at Mar. 31, 2017		9,334,857
Stockholders' Equity Ending Balance at Mar. 31, 2017	$ (10,013,411)	$ 9,335	$ 111,120,122	$ (121,142,868)

Condensed Consolidated Stateme6

Condensed Consolidated Statements of Cash Flows - USD ($)	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss	$ (7,260,253)	$ (3,314,596)
Adjustments to reconcile net loss to net cash used in operating activities
Depreciation and amortization	118,212	147,448
Stock-based compensation	242,004	142,766
Change in warrant liability value	(248)	(23,878)
Amortization of debt discount and issuance costs	3,690,454	63,378
Revaluation of derivative liability	142,371	0
Changes in operating assets and liabilities
Accounts receivable	211,182	(130,246)
Inventories	(219,562)	146,253
Prepaid expenses and other current assets	9,748	12,948
Other non-current assets	0	(7,700)
Accounts payable	56,071	(408,742)
Accrued and other current liabilities	243,729	60,021
Deferred revenue	(43,680)	(498,583)
Net cash used in operating activities	(2,809,972)	(3,810,931)
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of property and equipment	(32,299)	(48,581)
Net cash used in investing activities	(32,299)	(48,581)
CASH FLOWS FROM FINANCING ACTIVITIES
Offering costs for issuance of common stock	(47,388)	0
Proceeds from issuance of notes payable	2,680,567	2,682,394
Principal payments on capital leases	(5,025)	(12,481)
Payments on notes payable	(931,139)	(25,925)
Net cash provided by financing activities	1,697,015	2,643,988
Net decrease in cash and cash equivalents	(1,145,256)	(1,215,524)
Cash and cash equivalents at beginning of period	2,203,639	2,642,509
Cash and cash equivalents at end of period	1,058,383	1,426,985
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
Cash paid for interest	598,385	195,881
Cash paid for taxes	1,525	1,525
DISCLOSURE OF NON-CASH INVESTING AND FINANCING ACTIVITIES:
Net transfer to inventory from leased equipment	0	(168,143)
Conversion of warrant liabilities to equity	7,904	0
Bifurcation of embedded derivative liability from convertible notes payable	$ 5,857,838	$ 0

Background and Organization

Background and Organization	3 Months Ended
	Mar. 31, 2017
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Background and Organization	Background and Organization On June 7, 2016 (the “ Closing Date ”), the Company, Acquisition Sub and Miramar entered into an Agreement and Plan of Merger and Reorganization (the “ Merger Agreement ”). Pursuant to the terms of the Merger Agreement, Acquisition Sub merged with and into Miramar, and Miramar became the surviving corporation and thus became the Company’s wholly-owned subsidiary (the “ Merger ”). Prior to the Merger, the Company discontinued its prior business of distributing water filtration systems produced in China, and acquired the business of Miramar, which designs, manufactures and markets the miraDry System, which is designed to eliminate axillary, or underarm, sweat. At the Closing Date, each of the shares of Miramar’s common stock and preferred stock issued and outstanding immediately prior to the closing of the Merger was converted into shares of the Company’s common stock at a ratio of 1: 0.07393 (the “ Conversion Ratio ”). Additionally, warrants to purchase shares of Miramar’s Series A Preferred Stock, Series C Preferred Stock and Series D Preferred Stock issued and outstanding immediately prior to the closing of the Merger were converted into warrants to purchase shares of the Company’s common stock at the Conversion Ratio. The Merger was treated as a recapitalization and reverse acquisition of the Company for financial accounting purposes. Miramar is considered the acquirer for accounting purposes, and the Company’s historical financial statements before the Merger will be replaced with the historical financial statements of Miramar before the Merger in future filings with the SEC. For more details on the Merger, please see Item 2.01 of our Current Report on Form 8-K filed with the SEC on June 13, 2016, as amended on June 14, 2016. The Company and its wholly-owned subsidiary, Miramar, develop clinical systems to address hyperhidrosis. In January 2011, Miramar received approval from the U.S. Food and to Drug Administration (the “ FDA ”), to market the miraDry System to eliminate underarm sweat glands. The Company’s principal markets are the United States, Asia-Pacific and Europe/Middle East. During 2012, Miramar Technologies, Inc. commercially launched its first product, the miraDry System, a clinical system to address hyperhidrosis. Miramar has a wholly-owned subsidiary, Miramar Labs HK Limited, which was incorporated under the laws of Hong Kong in January 2013. Miramar Labs HK Limited commenced its operations during 2013 to oversee operations in Asia and is located in Hong Kong. The accompanying unaudited condensed financial statements have been prepared in accordance with the rules and regulations of the SEC, for interim financial information and, accordingly, do not include all of the information and footnotes required by generally accepted accounting principles in the United States (“ GAAP ”) for complete financial statements. These condensed consolidated financial statements are prepared on the same basis and should be read in conjunction with the audited financial statements and related notes included in the Company’s financial statements for the year ended December 31, 2016. Interim results are not necessarily indicative of the results to be expected for the full year, and no representation is made thereto. In the opinion of management, these financial statements include all adjustments necessary to state fairly the financial position and results of operations for each interim period shown. All such adjustments occur in the ordinary course of business and are of a normal, recurring nature. The accompanying financial statements are prepared on a going concern basis which contemplates the realization of assets and discharge of liabilities in the normal course of business. Since inception, Miramar Labs, Inc. had incurred net losses and negative cash flows from operations. From April 4, 2006 (date of inception) to March 31, 2017 , Miramar Labs, Inc. had an accumulated deficit of $121,142,868 . The Company has not achieved positive cash flows from operations. To date, the Company has been funded primarily by preferred stock and debt financings. In order to continue its operations, the Company must raise additional equity or debt financing and achieve profitable operations. These factors raise substantial doubt about the Company’s ability to continue as a going concern. There can be no assurance that the Company will be able to obtain additional equity or debt financing on terms acceptable to the Company, or at all. The failure to obtain sufficient funds on acceptable terms, when needed, could have a material, adverse effect on the Company’s business, results of operations, and future cash flows. To achieve profitable operations, the Company must successfully continue to develop, enhance, manufacture, and market its products. There can be no assurance that any such products can continue to be developed or manufactured at an acceptable cost and with appropriate performance characteristics, or that such products will be successfully marketed. These factors could have a material adverse effect upon the Company’s financial results, financial position and future cash flows.

Summary of Significant Accounti

Summary of Significant Accounting Policies	3 Months Ended
	Mar. 31, 2017
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	Summary of Significant Accounting Policies Principles of Consolidation The consolidated financial statements include the accounts of the Company and its wholly owned subsidiary. Intercompany balances have been eliminated in consolidation. Use of Estimates The preparation of 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 as of the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. The Company’s most significant estimates relate to inventory valuation and reserves, warranty accruals, deferred tax asset valuation allowance, valuation of equity and equity-linked instruments (common stock, options and warrants) and the valuation of the derivative liability. Our management believes that we consistently apply these judgments and estimates and the consolidated financial statements and accompanying notes fairly represent all periods presented. However, any differences between these judgments and estimates and actual results could have a material impact on our consolidated statements of income and financial position. Concentration of Credit Risk and Other Risks and Uncertainties Financial instruments that potentially subject the Company to a concentration of credit risk consist of cash and cash equivalents. The Company’s cash and cash equivalents are deposited with one financial institution in the United States of America. Deposits in this institution may exceed the amount of insurance provided on such deposits. The Company has not experienced any losses on its deposits of cash and cash equivalents. At March 31, 2017 , the Company’s uninsured cash balances totaled $733,793 . The Company performs periodic credit evaluations of its customers’ financial condition and generally requires deposits from its customers. The Company generally does not charge interest on past due accounts. The Company’s customers representing greater than 10% of accounts receivable and revenue were as follows: Revenue Accounts Receivable Three Months Ended March 31, March 31, December 31, 2017 2016 2017 2016 Customer A * 15% * * Customer B 12% 10% * * Customer C * * 15% 20% Customer D * * * 16% Sales in North America consisted of 54% and 41% of total revenue, in the three month periods ended in March 31, 2017 and 2016 , respectively. The remainder of the Company’s sales came primarily from Asia-Pacific and Europe/Middle East. Amplifiers used in the production of the miraDry system are manufactured in the United States and consumables (“ bioTips ”) are manufactured in China. These single source suppliers of these critical components may not be replaced without significant effort and could cause delay in production. If the operations of these manufacturers are interrupted or if they are unable to meet our delivery requirements due to capacity limitations or other constraints, the Company may be limited in its ability to fulfill customer orders or to repair equipment at current customer sites. Significant Accounting Policies There have been no material changes to the Company’s significant accounting policies during the three months ended March 31, 2017 , as compared to the significant accounting policies described in the Company’s financial statements for the year ended December 31, 2016, filed on Form 10-K on March 17, 2017. Recent Accounting Pronouncements In July 2015, the FASB issued ASU 2015-11, “Inventory (Topic 330): Simplifying the Measurement of Inventory”. This update requires inventory that is recorded using the first-in, first-out (FIFO) or average cost method to be measured at the lower of cost or net realizable value (defined as the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation), as opposed to the existing requirement to measure such inventory at the lower of cost or market value. This update is effective for annual periods beginning after December 15, 2016, and interim periods within that year, with early adoption permitted. Adoption of this standard in the quarter ended March 31, 2017 did not have any significant impact on the Company’s financial statements. In March 2016, the FASB issued ASU 2016-09, “Compensation – Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting”. This update will require all income tax effects of awards to be recognized in the income statement when the awards vest or are settled. It will also allow an employer to repurchase more of an employee’s shares than it can today for tax withholding purposes without triggering liability accounting and to make a policy election to account for forfeitures as they occur. For public entities, the new standard is effective for annual periods beginning after December 15, 2016, and interim periods within that year, with early adoption permitted. Adoption of this standard in the quarter ended March 31, 2017 did not have any significant impact on the Company’s financial statements. There were no other changes to the new accounting pronouncements as described in the Company’s financial statements for the year ended December 31, 2016, filed on Form 10-K on March 17, 2017.

Balance Sheet Components

Balance Sheet Components	3 Months Ended
	Mar. 31, 2017
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Balance Sheet Components	Balance Sheet Components Inventories March 31, 2017 December 31, 2016 (Unaudited) Raw materials $ 2,327,896 $ 2,554,853 Work in progress 2,481,557 2,343,898 Finished goods 2,059,949 1,751,089 $ 6,869,402 $ 6,649,840 Purchase commitments for inventory as of March 31, 2017 were $870,711 . Property and Equipment, Net March 31, 2017 December 31, 2016 (Unaudited) Leasehold Improvements $ 844,360 $ 844,360 Machinery and equipment 1,592,473 1,560,174 Computer and office equipment 241,291 241,291 Software 326,992 326,992 Furniture and fixtures 114,564 114,564 3,119,680 3,087,381 Less: Accumulated depreciation and amortization (2,490,796 ) (2,372,584 ) $ 628,884 $ 714,797 No capital leases were entered into during the year ended December 31, 2016 or the three month period ended March 31, 2017 . Depreciation and amortization expense was $118,212 and $147,448 for the three -month periods ended March 31, 2017 and 2016 , respectively. At March 31, 2017 and December 31, 2016 , substantially all of the property and equipment was located at the Company’s corporate headquarters in the United States. Accrued Liabilities March 31, 2017 December 31, 2016 (Unaudited) Accrued payroll and related expenses $ 1,592,457 $ 1,605,214 Accrued royalty 2,018,797 1,887,426 Accrued warranty 149,000 161,000 Accrued marketing 385,400 366,000 Accrued clinical expenses 13,500 9,500 Accrued legal 73,816 41,800 Capital lease payable, current 11,841 16,865 Deferred rent, current 38,806 34,756 Accrued other expenses 531,865 444,515 $ 4,815,482 $ 4,567,076 Accrued Warranty The Company regularly reviews the accrued warranty balance and updates as necessary based on sales and warranty trends. The warranty accrual as of March 31, 2017 and December 31, 2016 consisted of the following activity: Warranty accrual, December 31, 2015 $ 217,000 Accruals for product warranty 342,474 Cost of warranty claims (398,474 ) Warranty accrual, December 31, 2016 $ 161,000 Accruals for product warranty 29,903 Cost of warranty claims (41,903 ) Warranty accrual, March 31, 2017 $ 149,000

Fair Value of Financial Instrum

Fair Value of Financial Instruments	3 Months Ended
	Mar. 31, 2017
Fair Value Disclosures [Abstract]
Fair Value of Financial Instruments	Fair Value of Financial Instruments Fair Value Measurements are determined under a three-level hierarchy for fair value measurements that prioritizes the inputs to valuation techniques used to measure fair value, distinguishing between market participant assumptions developed based on market data obtained from sources independent of the reporting entity (the observable inputs) and the reporting entity’s own assumptions about market participant assumptions developed based on the best information available in the circumstances (the unobservable inputs). Fair value is the price that would be received to sell an asset or would be paid to transfer a liability (i.e., the exit price) in an orderly transaction between market participants at the measurement date. In determining fair value, the Company primarily uses prices and other relevant information generated by market transactions involving identical or comparable assets. The Company also considers the impact of a significant decrease in volume and level of activity for an asset or liability when compared with normal activity to identify transactions that are not orderly. The highest priority is given to unadjusted quoted prices in active markets for identical assets ( Level 1 measurements) and the lowest priority to unobservable inputs ( Level 3 measurements). Securities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. The three hierarchy levels are defined as follows: Level 1 Quoted prices in active markets that are unadjusted and accessible at the measurement date for identical, unrestricted assets or liabilities identical assets and liabilities; Level 2 Quoted prices for identical assets and liabilities in markets that are not active, quoted prices for similar assets and liabilities in active markets or financial instruments for which significant inputs are observable, either directly or indirectly; Level 3 Prices or valuations that require inputs that are both significant to the fair value measurement and unobservable. The fair value of the Company’s financial assets and liabilities measured on a recurring basis, as of March 31, 2017 and December 31, 2016 , were as follows: March 31, 2017 Level 1 Level 2 Level 3 Total Liabilities Warrant liability $ — $ — $ — $ — Derivative liability $ — $ — $ 6,000,209 $ 6,000,209 December 31, 2016 Level 1 Level 2 Level 3 Total Liabilities Warrant liability $ — $ — $ 7,342 $ 7,342 There were no transfers between Level 1, 2 and 3 of the fair value hierarchy during the three months ended March 31, 2017 and 2016 . Assumptions used in valuing the warrant liabilities are discussed in Note 9 below. The principal assumptions used, and their impact on valuations were as follows: Stock Price - As a private company, there was no actively traded market for the Company’s stock and the Company used commonly accepted valuation techniques such as the discounted cash flows, market comparables and recent actual stock sales to derive an estimate of the fair value of its stock. An increase in value of the stock will increase the value of the warrant liability. Upon closing of the Merger, the Company became a publicly traded company and began using its publicly traded stock price. Risk-Free Interest Rate - This is the U.S. Treasury rate for the measurement date having a term equal to the weighted average expected remaining term of the instrument. An increase in the risk-free interest rate will increase the fair value of the warrant liability. Expected Remaining Term - This is the period of time over which the instrument is expected to remain outstanding and is based on management’s estimate, taking into consideration the remaining contractual life, historical experience and the possibility of liquidation. An increase in the expected remaining term will increase the fair value of the warrant liability. Expected Volatility - This is a measure of the amount by which the Company’s common stock price has fluctuated or is expected to fluctuate. The Company uses the historic volatility of a group of comparable peer publicly traded companies over the retrospective period corresponding to the expected remaining term of the instrument on the measurement date. An increase in the expected volatility will increase the fair value of the warrant liability. Since the Company is newly public, it does not have sufficient trading history to estimate it’s own volatility. Dividend Yield - The Company has not made any dividend payments and does not plan to pay dividends in the foreseeable future. An increase in the dividend yield will decrease the fair value of the warrant liability. The changes in the warrant liability are summarized below: Fair value at December 31, 2015 $ 499,616 Fair value of warrants issued during the year 44,663 Conversion to common stock warrants (80,703 ) Change in fair value recorded in other income (expense), net (456,234 ) Fair value at December 31, 2016 $ 7,342 Conversion to common stock warrants (7,094 ) Change in fair value recorded in other income (expense), net (248 ) Fair value at March 31, 2017 $ — Assumptions used in valuing the derivative liabilities are discussed in Note 8 below. The principal assumptions used, and their impact on valuations were as follows: Valuation method - the Company net present valued the probability weighted outcomes Conversion date - Estimated date of the occurance of each identified possible outcomes Probability - The percentage likelihood of each of the four identified possible outcomes discussed in Note 7 below The changes in the derivative liability are summarized below: Fair value at December 31, 2016 $ — Fair value of derivative issued during the year 5,857,838 Change in fair value recorded in other income (expense), net 142,371 Fair value at March 31, 2017 $ 6,000,209

Related Party Transactions

Related Party Transactions	3 Months Ended
	Mar. 31, 2017
Related Party Transactions [Abstract]
Related Party Transactions	Related Party Transactions Miramar Technologies, Inc. was formed at an incubator, The Foundry, LLC, or The Foundry, a company which provides seed capital and management services to its investees. Certain employees of The Foundry serve as members of the Company’s Board of Directors (the “ Board ”) and own shares of our common stock. The total amount reimbursed to The Foundry for services provided as members of the Board was $0 and $16,191 , for the three months ended March 31, 2017 and 2016 , respectively. In February 2008, Miramar Technologies, Inc. entered into a technology license and royalty agreement with The Foundry wherein Miramar Technologies, Inc. agreed to pay The Foundry a royalty of 1.5% of sales of the licensed products and 1.5% of the patented products, up to a maximum of $30 million . In March 2013, the total royalty percentage increased from 1.5% to 3.0% due to the issuance of a patent covering certain products of the Company. The total amount payable to The Foundry as of March 31, 2017 and December 31, 2016 was $2,020,888 and $1,887,426 , respectively, which included interest accrued at the annual interest rate of the prime rate quoted by the Wall Street Journal plus 1% beginning on the first day of the calendar quarter to which such payment relates. No royalties were paid during the three months ended March 31, 2017 or in the year ended December 31, 2016 .

Commitments and Contingencies

Commitments and Contingencies	3 Months Ended
	Mar. 31, 2017
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies Indemnification Agreements The Company enters into standard indemnification arrangements in the ordinary course of business. Pursuant to these arrangements, the Company indemnifies, holds harmless, and agrees to reimburse the indemnified parties for losses suffered or incurred by the indemnified party, in connection with any trade secret, copyright, patent or other intellectual property infringement claim by any third party with respect to its technology. The term of these indemnification agreements is generally perpetual any time after the execution of the agreement. The maximum potential amount of future payments the Company could be required to make under these arrangements is not determinable. The Company has never incurred costs to defend lawsuits or settle claims related to these indemnification agreements. As a result, the Company believes the estimated fair value of these agreements is minimal. The Company has entered into indemnification agreements with its directors and certain executive officers that may require the Company to indemnify its directors and officers against liabilities that may arise by reason of their status or service as directors and officers, other than liabilities arising from willful misconduct of the individual. No liability associated with such indemnifications has been recorded at March 31, 2017 or December 31, 2016 . Legal Claims On July 20, 2015, a lawsuit alleging product liability, breach of warranty and negligence was filed against the Company in the Orange County Superior Court. The plaintiff alleged, among other things, that the Company was liable to plaintiff for injuries suffered due to defects in a certain miraDry device. We believe that there is no merit to the claims against the Company and the Company intends to vigorously defend the lawsuit, but the outcome of any potential litigation matter is uncertain. Management does not believe that resolution of this matter will have a material negative effect on our operating results. As of March 31, 2017 or December 31, 2016 , no amounts have been accrued related to the matters as we believe the risk of material loss to be remote. In September 2016, the Company received a demand from an attorney in Japan who represents a terminated employee claiming wrongful termination. The Company is insured,with a deductible payment immaterial to our operating results, to cover such claims. The matter was settled in March 2017. Occasionally, the Company may be involved in claims and legal proceedings arising from the ordinary course of its business. The Company records a provision for a liability when it believes that it is probable that a liability has been incurred, and when the amount can be reasonably estimated. If these estimates and assumptions change or prove to be incorrect, it could have a material impact on the Company’s consolidated financial statements. Contingencies are inherently unpredictable and the assessments of the value can involve a series of complex judgments about future events and can rely heavily on estimates and assumptions. Other than the foregoing, we are currently not aware of any other pending legal proceedings to which we are a party or of which any of our property is the subject, nor are we aware of any such proceedings that are contemplated by any governmental authority. Operating and Capital Leases Rent expense under the Company’s operating leases was $142,305 and $143,273 for the three -month periods ended March 31, 2017 and 2016 , respectively. The Company recognizes rent expense on a straight-line basis over the lease period. The difference between rent payable and rent expense on a straight-line basis is recorded as deferred rent and amortized over the period of the lease. The aggregate future minimum lease payments under all leases are as follows: Operating Lease Capital Leases Nine months ending December 31, 2017 $ 405,042 $ 11,993 Year ending December 31, 2018 568,773 — Year ending December 31, 2019 241,592 — Total minimum lease payments $ 1,215,407 11,993 Less: Amount representing interest (152 ) Present value of minimum lease payments 11,841 Less: current portion of capital leases (11,841 ) Long term portion of capital leases $ —

Notes Payable

Notes Payable	3 Months Ended
	Mar. 31, 2017
Debt Disclosure [Abstract]
Notes Payable	Notes Payable In August 2015, the Company refinanced the outstanding balance of the $10 million loan and security agreement entered into in June 2013 (the “ Loan and Security Agreement ”). The new agreement provided for the issuance of secured promissory notes in the aggregate principal amount of up to $20 million to be drawn down in two additional tranches of $5 million each, subject to certain milestones. The additional two tranches of $5 million expired in April and October 2016. The refinanced $10 million promissory note accrues interest at 7.80% per annum and monthly interest payments commenced on September 1, 2015. Principal and interest payments commenced on January 1, 2017. In March 2017, the Company entered into the Third Amendment to Loan and Security Agreement granting a security interest in the Company’s intellectual property. All borrowings under the agreement are collateralized by substantially all of the Company’s assets. There are no significant financial covenants. The agreement contains a subjective acceleration clause. Failure to comply with the loan covenants may result in the acceleration of payment of all outstanding principal and interest amounts plus a prepayment fee. Due to the subjective acceleration clause, the outstanding notes payable are classified as current in the accompanying Consolidated Balance Sheets. As of March 31, 2017 , the Company was in compliance with the debt covenants. In January 2017, the Company entered into a note purchase agreement (the “ Note Purchase Agreement ”) with existing investors to draw down up to $3.0 million for working capital purposes. During the quarter ended March 31, 2017 , the Company issued $2.7 million of convertible promissory notes (the “ Notes ”) that accrue interest at 10% per year and are due at the earliest of an event of default, liquidation or dissolution event or January 26, 2018 (the “ Maturity Date ”). In the event of an equity financing with an aggregate sales price of not less than $10 million prior to the Maturity Date and prior to a change of control event, the outstanding balance of each note (principal amount together with accrued but unpaid interest) will be multiplied by five ( 5 ) and automatically convert into shares of securities issued in such equity financing at the price per share paid by investors in such equity financing. In the event of an equity financing with an aggregate sales price of less than $10 million prior to the Maturity Date and prior to a change of control event, at the election of holders of the Notes holding a majority of the aggregate outstanding principal amount of the Notes, the Outstanding Balance of each Note will be multiplied by five ( 5 ) and converted into shares of securities issued in such equity financing at the price per share paid by investors in such equity financing. In the event of a change of control event and prior to repayment of the notes or conversion (i) in the case of a stock-for-stock merger, three ( 3 ) times the Outstanding Balance of each Note will automatically convert into shares of the acquiring company at the price per share as determined by (A) the ten -day average closing price of the common stock of the acquiring company if it is a public company or (B) our board of directors good faith determination of fair value, if it is a private company, or (ii) in the case of a cash-for-stock merger or sale of all or substantially all of our assets, holders of the Notes will be entitled to receive the amount of cash equal to three ( 3 ) times the Outstanding Balance. The Notes are secured by certain assets of the Company pursuant to the security agreement dated January 27, 2017 by and among us and certain investors named therein and subordinated to our obligations under the Loan and Security Agreement pursuant to the subordination agreement dated January 27, 2017 by and among us, Oxford Finance LLC and certain creditors named therein. As a result, the Notes have a second priority security interest in our assets behind the security interest held by Oxford Finance LLC and Silicon Valley Bank. The Notes are also subject to standard event of default provisions that would accelerate the Maturity Date. These conversion premiums represent an embedded derivative liability which has been bifurcated. See Note 8 for further discussion. The Company entered into short term financing agreements for insurance premiums with nine month payment terms and interest rates ranging from 2.25% to 4.95% . The outstanding balance of the financing agreements was $17,894 at March 31, 2017 and $125,691 at December 31, 2016 . Annual future principal payments under the notes payable, which have been adjusted due to the Fourth and Fifth Amendments to the $10 million Loan and Security Agreement as discussed in Note 14 below, are as follows: Nine months ended December 31, 2017 $ 4,601,296 Year ending December 31, 2018 4,034,940 Year ending December 31, 2019 3,238,883 Total payments 11,875,119 Less: Unamortized debt discount (2,376,449 ) Carrying value of notes payable $ 9,498,670

Derivative Liability

Derivative Liability	3 Months Ended
	Mar. 31, 2017
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Derivative Liability	Derivative Liability The Company issued the Notes as described in Note 7 above. Given the terms and structure of the Notes, management concluded that the redemption premium embedded in the Notes was a bifurcatable derivative (the “ Derivative Liability ”) under ASC 480, “ Distinguishing Liabilities from Equity ” and ASC 815, “ Derivatives and Hedging ” guidance. Management noted that there were multiple possible outcomes, all that had a fixed, determinable amount that would only vary depending upon which outcome occurred and the timing of the conversion. The Company used a valuation model that net present valued (at 10% interest rate of the Notes) the weighted average of the probability of the various outcomes to determine the value of the Derivative Liability. The board and management agreed to certain probabilities associated with each of these possible outcomes (ranging from 5% to 80% ), and identified a likely date of occurrence (ranging from July 2017 to January 2018) for such possible outcomes. Based upon these factors, the Company calculated a probability weighted expected value for this financial instrument. Each outcome was evaluated based upon where the Company was at the time of the execution of the Note Purchase Agreement and as of March 31, 2017. As of the date of the Note Purchase Agreement, the Derivative Liability, based upon the above valuation analysis, was valued at $5.9 million , and was recorded as a debt discount and a warrant liability with the value in excess of the face value of the Notes charged to interest expense. As of March 31, 2017, the Derivative Liability was valued at $6.0 million and the change in fair value of $0.1 million was charged to other income (expense), net.

Common Stock

Common Stock	3 Months Ended
	Mar. 31, 2017
Equity [Abstract]
Common Stock	Common Stock The Company’s amended Articles of Incorporation authorize the Company to issue 100,000,000 shares of $0.001 common stock. The common stockholders are entitled to elect three members to the Board. The holders of common stock are also entitled to receive dividends whenever funds are legally available, as, when, and if declared by the Board. As of March 31, 2017 , no dividends have been declared to date. At March 31, 2017 , the Company had reserved common stock for future issuance as follows: Exercise of options under stock plan 1,372,584 Options available for grant under stock plan 109,665 Exercise of common stock warrants 83,319 Common stock reserved for future issuance 1,565,568 Common stock contingently issuable upon the conversion of the Notes is not included in the above table as such amount is not determinable. Stock Warrants Total outstanding warrants as of March 31, 2017 are as follows: Number of Warrants Exercise Price Fair Value at date of issuance November 2010 warrants issued with Series C convertible preferred stock 12,117 $ 21.64 $ 212,409 January 2011 warrants issued with Series C convertible preferred stock 19,042 21.64 259,355 June 2013 warrants issued in conjunction with note purchase agreement 9,241 21.64 152,750 April 2014 warrants issued in conjunction with drawdown on note purchase agreement 9,242 21.64 149,250 August 2015 warrants issued with refinance of note purchase agreement 16,173 21.64 234,719 June to August 2016 warrants issued with in conjunction with merger 17,504 5.00 44,663 Total outstanding warrants 83,319 For the three month period ended March 31, 2017 and 2016 , respectively, $248 and $23,878 were recorded to other income from the revaluation of the warrants to fair market value. During the three month period ended March 31, 2017 , 4,488 of the outstanding warrants valued at $7,094 were reclassified from warrant liability to additional paid-in capital in the accompanying consolidated balance sheets. As of March 31, 2017 , all outstanding warrants were classified as additional paid- capital. The following assumptions were used in the Black-Scholes model to value the outstanding warrants: Three Months Ended March 31, 2017 Year Ended December 31, 2016 Expected term (years) 4.31 - 4.35 4.56 - 4.60 Expected volatility 55% 55% Risk-free interest rate 1.81% - 1.95% 1.96% Annual dividend rate —% —% Stock Price $4.00 $4.00

Stock Warrants

Stock Warrants	3 Months Ended
	Mar. 31, 2017
Warrants and Rights Note Disclosure [Abstract]
Stock Warrants	Common Stock The Company’s amended Articles of Incorporation authorize the Company to issue 100,000,000 shares of $0.001 common stock. The common stockholders are entitled to elect three members to the Board. The holders of common stock are also entitled to receive dividends whenever funds are legally available, as, when, and if declared by the Board. As of March 31, 2017 , no dividends have been declared to date. At March 31, 2017 , the Company had reserved common stock for future issuance as follows: Exercise of options under stock plan 1,372,584 Options available for grant under stock plan 109,665 Exercise of common stock warrants 83,319 Common stock reserved for future issuance 1,565,568 Common stock contingently issuable upon the conversion of the Notes is not included in the above table as such amount is not determinable. Stock Warrants Total outstanding warrants as of March 31, 2017 are as follows: Number of Warrants Exercise Price Fair Value at date of issuance November 2010 warrants issued with Series C convertible preferred stock 12,117 $ 21.64 $ 212,409 January 2011 warrants issued with Series C convertible preferred stock 19,042 21.64 259,355 June 2013 warrants issued in conjunction with note purchase agreement 9,241 21.64 152,750 April 2014 warrants issued in conjunction with drawdown on note purchase agreement 9,242 21.64 149,250 August 2015 warrants issued with refinance of note purchase agreement 16,173 21.64 234,719 June to August 2016 warrants issued with in conjunction with merger 17,504 5.00 44,663 Total outstanding warrants 83,319 For the three month period ended March 31, 2017 and 2016 , respectively, $248 and $23,878 were recorded to other income from the revaluation of the warrants to fair market value. During the three month period ended March 31, 2017 , 4,488 of the outstanding warrants valued at $7,094 were reclassified from warrant liability to additional paid-in capital in the accompanying consolidated balance sheets. As of March 31, 2017 , all outstanding warrants were classified as additional paid- capital. The following assumptions were used in the Black-Scholes model to value the outstanding warrants: Three Months Ended March 31, 2017 Year Ended December 31, 2016 Expected term (years) 4.31 - 4.35 4.56 - 4.60 Expected volatility 55% 55% Risk-free interest rate 1.81% - 1.95% 1.96% Annual dividend rate —% —% Stock Price $4.00 $4.00

Stock Option Plan

Stock Option Plan	3 Months Ended
	Mar. 31, 2017
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Stock Option Plan	Stock Option Plan The following table summarizes activity under the 2006 Stock Option Plan (the “ Plan ”) for the three month period ended March 31, 2017 and year ended December 31, 2016 : Outstanding Options Shares Available for Grant Number of Options Weighted Average Exercise Price Balance, December 31, 2015 48,560 855,904 $ 6.76 Additional shares reserved 599,535 Options granted (579,460 ) 579,460 5.62 Options exercised (21,750 ) 2.28 Options forfeited 30,119 (30,119 ) 6.48 Balance, December 31, 2016 98,754 1,383,495 $ 5.20 Options granted (375 ) 375 4.00 Options forfeited 11,286 (11,286 ) 5.09 Balance, March 31, 2017 109,665 1,372,584 $ 5.21 The following table summarizes information about stock options outstanding at March 31, 2017 : Options Outstanding Options Vested Exercise Number Outstanding Weighted Average Remaining Contractual Life (in years) Weighted Average Exercise Price Aggregate Intrinsic Value Number Vested Weighted Average Exercise Price Aggregate Intrinsic Value $ 1.3600 14,856 0.66 $ 1.3600 $ 13,965 14,856 $ 1.3600 $ 13,965 2.4400 8,501 1.05 2.4400 — 8,501 2.4400 — 4.0000 375 9.85 4.0000 — — 4.0000 — 4.3300 29,553 2.85 4.3300 — 29,553 4.3300 — 5.0000 725,592 7.06 5.0000 — 433,762 5.0000 — 5.4800 15,650 9.65 5.4800 — 1,250 5.4800 — 5.5700 430,233 9.41 5.5700 — 116,860 5.5700 — 5.5925 112,651 9.40 5.5925 — 16,422 5.5925 — 6.3600 20,248 1.63 6.3600 — 20,248 6.3600 — 6.6300 2,109 7.30 6.6300 — 2,109 6.6300 — 7.4400 8,166 4.85 7.4400 — 8,166 7.4400 — 7.5800 1,205 8.29 7.5800 — 1,205 7.5800 — 8.6600 3,445 5.95 8.6600 — 3,445 8.6600 — 1,372,584 7.73 $ 5.2100 $ 13,965 656,377 $ 5.0700 $ 13,965 Stock-Based Compensation Associated with Awards to Employees During the three month period ended March 31, 2017 , the Company granted stock options to employees to purchase 375 shares of common stock with a weighted-average grant date fair value of $1.58 . Stock-based employee compensation expense recognized during the three -month periods ended March 31, 2017 and 2016 was $209,676 and $120,839 , respectively. As of March 31, 2017 , there were total unrecognized compensation costs of $1,491,347 related to stock options. These costs are expected to be recognized over a period of approximately 2.40 years. The total fair value of employee options vested during the three -month periods ended March 31, 2017 and 2016 was $214,012 and $127,870 , respectively. The Company estimated the fair value of stock options using the Black-Scholes option valuation model. The fair value of employee stock options is being amortized on a straight-line basis over the requisite service period of the awards. The fair value of employee stock options granted was estimated using the following weighted average assumptions: Three months ended March 31, 2017 Year ended December 31, 2016 Expected term (in years) 4.75 years 5.21 years Expected volatility 44% 46% Risk-free interest rate 1.85% 1.17% -1.69% Dividend yield —% —% Stock-Based Compensation Associated with Awards to Non-employees The Company did not grant stock options to non-employees during the three -month period ended March 31, 2017 . Stock-based compensation expense recognized during the three -month periods ended March 31, 2017 and 2016 was $32,328 and $21,927 , respectively. As of March 31, 2017 , there was total unrecognized compensation costs of $265,025 related to these stock options. These costs are expected to be recognized over a period of approximately 2.31 years. The fair value of the stock options granted to non-employees is calculated at each reporting date using the Black-Scholes options pricing model. The fair value of stock options granted to non-employees was estimated using the following weighted average assumptions: Three months ended March 31, 2017 Year ended December 31, 2016 Expected term (in years) 5.67 years 5.89 years Expected volatility 49% 47% Risk-free interest rate 1.43% 1.29% -1.69% Dividend yield —% —%

Employee Benefit Plan

Employee Benefit Plan	3 Months Ended
	Mar. 31, 2017
Compensation and Retirement Disclosure [Abstract]
Employee Benefit Plan	Employee Benefit Plan The Company sponsors a 401(k) plan covering all employees. Contributions made by the Company are discretionary and are determined annually by the Board. The Company accrues for a 100% match for employee contributions up to $1,000 . As of March 31, 2017 and December 31, 2016 , the Company had accrued $21,600 and $44,385 , respectively, for employer contributions.

Net Loss per Share

Net Loss per Share	3 Months Ended
	Mar. 31, 2017
Earnings Per Share [Abstract]
Net Loss per Share	Net Loss per Share The Company’s basic and diluted net loss per share are as follows: Three Months Ended March 31, 2017 2016 Net and comprehensive loss attributable to common stockholders $ (7,260,253 ) $ (3,314,596 ) Weighted-average common shares used in computing net loss per share attributable to common stockholders, basic and diluted 9,334,857 398,541 Net loss per share attributable to common stockholders, basic and diluted $ (0.78 ) $ (8.32 ) The following weighted-average common stock equivalents were excluded from the calculation of diluted net loss per share for the periods presented due to their anti-dilutive effect: Three Months Ended March 31, 2017 2016 Convertible preferred stock (if converted) — 3,611,876 Stock warrants 83,319 66,924 Options to purchase common stock 1,372,584 865,802 Common stock contingently issuable upon the conversion of the convertible notes is not included in above table as such amount is not determinable.

Subsequent Events

Subsequent Events	3 Months Ended
	Mar. 31, 2017
Subsequent Events [Abstract]
Subsequent Events	Subsequent Events In April 2017, the Company entered into the Fourth and Fifth Amendments (the “ Amendments ”) to the $10 million Loan and Security Agreement that allow for the deferment of principal payments upon the achievement of a certain milestone as set forth in the Amendments. The deferment period was extended through June 2017. In March 2017, the board of directors approved a Key Employee Retention Plan (the “ Plan ”) that represents a 10% carve-off from Net Proceeds (as defined under the Plan). The purpose of the Plan is to establish a bonus pool for designated Key Employees (as defined under the Plan) payable upon the occurrence of a Change of Control (as defined under the Plan) to (i) assure that the Company will have the continued dedication and objectivity of Key Employees, notwithstanding the possibility, threat or occurrence of a Change of Control, (ii) provide Key Employees with an incentive to continue their service with the Company, or any subsidiary of the Company, prior to a Change of Control and to motivate the team to maximize the value of the Company upon a Change of Control for the benefit of its stockholders, and (iii) provide Key Employees with enhanced financial security, incentive and encouragement to remain with the Company, or any subsidiary of the Company, notwithstanding the possibility of a Change of Control. Management has evaluated all transactions and events through May 16, 2017 , the date on which these financial statements were issued, and did not note any items that would adjust the financial statements or require additional disclosures.

Summary of Significant Accoun21

Summary of Significant Accounting Policies (Policies)	3 Months Ended
	Mar. 31, 2017
Accounting Policies [Abstract]
Principles of Consolidation	Principles of Consolidation The consolidated financial statements include the accounts of the Company and its wholly owned subsidiary. Intercompany balances have been eliminated in consolidation.
Use of Estimates	Use of Estimates The preparation of 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 as of the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. The Company’s most significant estimates relate to inventory valuation and reserves, warranty accruals, deferred tax asset valuation allowance, valuation of equity and equity-linked instruments (common stock, options and warrants) and the valuation of the derivative liability. Our management believes that we consistently apply these judgments and estimates and the consolidated financial statements and accompanying notes fairly represent all periods presented. However, any differences between these judgments and estimates and actual results could have a material impact on our consolidated statements of income and financial position.
Concentration of Credit Risk and Other Risks and Uncertainties	Concentration of Credit Risk and Other Risks and Uncertainties Financial instruments that potentially subject the Company to a concentration of credit risk consist of cash and cash equivalents. The Company’s cash and cash equivalents are deposited with one financial institution in the United States of America. Deposits in this institution may exceed the amount of insurance provided on such deposits.
Recent Accounting Pronouncements	Recent Accounting Pronouncements In July 2015, the FASB issued ASU 2015-11, “Inventory (Topic 330): Simplifying the Measurement of Inventory”. This update requires inventory that is recorded using the first-in, first-out (FIFO) or average cost method to be measured at the lower of cost or net realizable value (defined as the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation), as opposed to the existing requirement to measure such inventory at the lower of cost or market value. This update is effective for annual periods beginning after December 15, 2016, and interim periods within that year, with early adoption permitted. Adoption of this standard in the quarter ended March 31, 2017 did not have any significant impact on the Company’s financial statements. In March 2016, the FASB issued ASU 2016-09, “Compensation – Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting”. This update will require all income tax effects of awards to be recognized in the income statement when the awards vest or are settled. It will also allow an employer to repurchase more of an employee’s shares than it can today for tax withholding purposes without triggering liability accounting and to make a policy election to account for forfeitures as they occur. For public entities, the new standard is effective for annual periods beginning after December 15, 2016, and interim periods within that year, with early adoption permitted. Adoption of this standard in the quarter ended March 31, 2017 did not have any significant impact on the Company’s financial statements. There were no other changes to the new accounting pronouncements as described in the Company’s financial statements for the year ended December 31, 2016, filed on Form 10-K on March 17, 2017.

Summary of Significant Accoun22

Summary of Significant Accounting Policies (Tables)	3 Months Ended
	Mar. 31, 2017
Accounting Policies [Abstract]
Schedule of Customer Concentration of Accounts Receivable and Revenue	The Company’s customers representing greater than 10% of accounts receivable and revenue were as follows: Revenue Accounts Receivable Three Months Ended March 31, March 31, December 31, 2017 2016 2017 2016 Customer A * 15% * * Customer B 12% 10% * * Customer C * * 15% 20% Customer D * * * 16%

Balance Sheet Components (Table

Balance Sheet Components (Tables)	3 Months Ended
	Mar. 31, 2017
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Schedule of Inventories	Inventories March 31, 2017 December 31, 2016 (Unaudited) Raw materials $ 2,327,896 $ 2,554,853 Work in progress 2,481,557 2,343,898 Finished goods 2,059,949 1,751,089 $ 6,869,402 $ 6,649,840
Schedule of Property and Equipment, Net	Property and Equipment, Net March 31, 2017 December 31, 2016 (Unaudited) Leasehold Improvements $ 844,360 $ 844,360 Machinery and equipment 1,592,473 1,560,174 Computer and office equipment 241,291 241,291 Software 326,992 326,992 Furniture and fixtures 114,564 114,564 3,119,680 3,087,381 Less: Accumulated depreciation and amortization (2,490,796 ) (2,372,584 ) $ 628,884 $ 714,797
Schedule of Accrued Liabilities	Accrued Liabilities March 31, 2017 December 31, 2016 (Unaudited) Accrued payroll and related expenses $ 1,592,457 $ 1,605,214 Accrued royalty 2,018,797 1,887,426 Accrued warranty 149,000 161,000 Accrued marketing 385,400 366,000 Accrued clinical expenses 13,500 9,500 Accrued legal 73,816 41,800 Capital lease payable, current 11,841 16,865 Deferred rent, current 38,806 34,756 Accrued other expenses 531,865 444,515 $ 4,815,482 $ 4,567,076
Schedule of Accrued Product Warranty	The warranty accrual as of March 31, 2017 and December 31, 2016 consisted of the following activity: Warranty accrual, December 31, 2015 $ 217,000 Accruals for product warranty 342,474 Cost of warranty claims (398,474 ) Warranty accrual, December 31, 2016 $ 161,000 Accruals for product warranty 29,903 Cost of warranty claims (41,903 ) Warranty accrual, March 31, 2017 $ 149,000

Fair Value of Financial Instr24

Fair Value of Financial Instruments (Tables)	3 Months Ended
	Mar. 31, 2017
Fair Value Disclosures [Abstract]
Fair Value Financial Assets and Liabilities Measured on a Recurring Basis	The fair value of the Company’s financial assets and liabilities measured on a recurring basis, as of March 31, 2017 and December 31, 2016 , were as follows: March 31, 2017 Level 1 Level 2 Level 3 Total Liabilities Warrant liability $ — $ — $ — $ — Derivative liability $ — $ — $ 6,000,209 $ 6,000,209 December 31, 2016 Level 1 Level 2 Level 3 Total Liabilities Warrant liability $ — $ — $ 7,342 $ 7,342
Changes in the Convertible Preferred Stock Warrant Liability	The changes in the warrant liability are summarized below: Fair value at December 31, 2015 $ 499,616 Fair value of warrants issued during the year 44,663 Conversion to common stock warrants (80,703 ) Change in fair value recorded in other income (expense), net (456,234 ) Fair value at December 31, 2016 $ 7,342 Conversion to common stock warrants (7,094 ) Change in fair value recorded in other income (expense), net (248 ) Fair value at March 31, 2017 $ — Assumptions used in valuing the derivative liabilities are disc

Commitments and Contingencies (

Commitments and Contingencies (Tables)	3 Months Ended
	Mar. 31, 2017
Commitments and Contingencies Disclosure [Abstract]
Schedule of Aggregate Future Minimum Operating Lease Payments	The aggregate future minimum lease payments under all leases are as follows: Operating Lease Capital Leases Nine months ending December 31, 2017 $ 405,042 $ 11,993 Year ending December 31, 2018 568,773 — Year ending December 31, 2019 241,592 — Total minimum lease payments $ 1,215,407 11,993 Less: Amount representing interest (152 ) Present value of minimum lease payments 11,841 Less: current portion of capital leases (11,841 ) Long term portion of capital leases $ —
Schedule of Aggregate Future Minimum Capital Lease Payments	The aggregate future minimum lease payments under all leases are as follows: Operating Lease Capital Leases Nine months ending December 31, 2017 $ 405,042 $ 11,993 Year ending December 31, 2018 568,773 — Year ending December 31, 2019 241,592 — Total minimum lease payments $ 1,215,407 11,993 Less: Amount representing interest (152 ) Present value of minimum lease payments 11,841 Less: current portion of capital leases (11,841 ) Long term portion of capital leases $ —

Notes Payable (Tables)

Notes Payable (Tables)	3 Months Ended
	Mar. 31, 2017
Debt Disclosure [Abstract]
Schedule of Annual Future Principal Payments Under Notes Payable	Annual future principal payments under the notes payable, which have been adjusted due to the Fourth and Fifth Amendments to the $10 million Loan and Security Agreement as discussed in Note 14 below, are as follows: Nine months ended December 31, 2017 $ 4,601,296 Year ending December 31, 2018 4,034,940 Year ending December 31, 2019 3,238,883 Total payments 11,875,119 Less: Unamortized debt discount (2,376,449 ) Carrying value of notes payable $ 9,498,670

Common Stock (Tables)

Common Stock (Tables)	3 Months Ended
	Mar. 31, 2017
Equity [Abstract]
Schedule of Reserved Common Stock	At March 31, 2017 , the Company had reserved common stock for future issuance as follows: Exercise of options under stock plan 1,372,584 Options available for grant under stock plan 109,665 Exercise of common stock warrants 83,319 Common stock reserved for future issuance 1,565,568

Stock Warrants (Tables)

Stock Warrants (Tables)	3 Months Ended
	Mar. 31, 2017
Warrants and Rights Note Disclosure [Abstract]
Schedule of Options Outstanding	Total outstanding warrants as of March 31, 2017 are as follows: Number of Warrants Exercise Price Fair Value at date of issuance November 2010 warrants issued with Series C convertible preferred stock 12,117 $ 21.64 $ 212,409 January 2011 warrants issued with Series C convertible preferred stock 19,042 21.64 259,355 June 2013 warrants issued in conjunction with note purchase agreement 9,241 21.64 152,750 April 2014 warrants issued in conjunction with drawdown on note purchase agreement 9,242 21.64 149,250 August 2015 warrants issued with refinance of note purchase agreement 16,173 21.64 234,719 June to August 2016 warrants issued with in conjunction with merger 17,504 5.00 44,663 Total outstanding warrants 83,319
Schedule of Stock Option Plan Fair Value Valuation Assumptions	The following assumptions were used in the Black-Scholes model to value the outstanding warrants: Three Months Ended March 31, 2017 Year Ended December 31, 2016 Expected term (years) 4.31 - 4.35 4.56 - 4.60 Expected volatility 55% 55% Risk-free interest rate 1.81% - 1.95% 1.96% Annual dividend rate —% —% Stock Price $4.00 $4.00

Stock Option Plan (Tables)

Stock Option Plan (Tables)	3 Months Ended
	Mar. 31, 2017
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Schedule of Stock Option Plan Summary Activity	The following table summarizes activity under the 2006 Stock Option Plan (the “ Plan ”) for the three month period ended March 31, 2017 and year ended December 31, 2016 : Outstanding Options Shares Available for Grant Number of Options Weighted Average Exercise Price Balance, December 31, 2015 48,560 855,904 $ 6.76 Additional shares reserved 599,535 Options granted (579,460 ) 579,460 5.62 Options exercised (21,750 ) 2.28 Options forfeited 30,119 (30,119 ) 6.48 Balance, December 31, 2016 98,754 1,383,495 $ 5.20 Options granted (375 ) 375 4.00 Options forfeited 11,286 (11,286 ) 5.09 Balance, March 31, 2017 109,665 1,372,584 $ 5.21
Schedule of Stock Option Plan Options Outstanding	The following table summarizes information about stock options outstanding at March 31, 2017 : Options Outstanding Options Vested Exercise Number Outstanding Weighted Average Remaining Contractual Life (in years) Weighted Average Exercise Price Aggregate Intrinsic Value Number Vested Weighted Average Exercise Price Aggregate Intrinsic Value $ 1.3600 14,856 0.66 $ 1.3600 $ 13,965 14,856 $ 1.3600 $ 13,965 2.4400 8,501 1.05 2.4400 — 8,501 2.4400 — 4.0000 375 9.85 4.0000 — — 4.0000 — 4.3300 29,553 2.85 4.3300 — 29,553 4.3300 — 5.0000 725,592 7.06 5.0000 — 433,762 5.0000 — 5.4800 15,650 9.65 5.4800 — 1,250 5.4800 — 5.5700 430,233 9.41 5.5700 — 116,860 5.5700 — 5.5925 112,651 9.40 5.5925 — 16,422 5.5925 — 6.3600 20,248 1.63 6.3600 — 20,248 6.3600 — 6.6300 2,109 7.30 6.6300 — 2,109 6.6300 — 7.4400 8,166 4.85 7.4400 — 8,166 7.4400 — 7.5800 1,205 8.29 7.5800 — 1,205 7.5800 — 8.6600 3,445 5.95 8.6600 — 3,445 8.6600 — 1,372,584 7.73 $ 5.2100 $ 13,965 656,377 $ 5.0700 $ 13,965
Schedule of Stock Option Plan Fair Value Valuation Assumptions	The fair value of employee stock options granted was estimated using the following weighted average assumptions: Three months ended March 31, 2017 Year ended December 31, 2016 Expected term (in years) 4.75 years 5.21 years Expected volatility 44% 46% Risk-free interest rate 1.85% 1.17% -1.69% Dividend yield —% —%
Schedule of Stock Option Plan Fair Value Valuation Assumptions, Non-Employees	The fair value of stock options granted to non-employees was estimated using the following weighted average assumptions: Three months ended March 31, 2017 Year ended December 31, 2016 Expected term (in years) 5.67 years 5.89 years Expected volatility 49% 47% Risk-free interest rate 1.43% 1.29% -1.69% Dividend yield —% —%

Net Loss per Share (Tables)

Net Loss per Share (Tables)	3 Months Ended
	Mar. 31, 2017
Earnings Per Share [Abstract]
Schedule of Basic and Diluted Net Loss Per Share	The Company’s basic and diluted net loss per share are as follows: Three Months Ended March 31, 2017 2016 Net and comprehensive loss attributable to common stockholders $ (7,260,253 ) $ (3,314,596 ) Weighted-average common shares used in computing net loss per share attributable to common stockholders, basic and diluted 9,334,857 398,541 Net loss per share attributable to common stockholders, basic and diluted $ (0.78 ) $ (8.32 )
Schedule of Weighted-average Common Stock Equivalents Excluded From Calculation of Diluted Net Loss Per Share	The following weighted-average common stock equivalents were excluded from the calculation of diluted net loss per share for the periods presented due to their anti-dilutive effect: Three Months Ended March 31, 2017 2016 Convertible preferred stock (if converted) — 3,611,876 Stock warrants 83,319 66,924 Options to purchase common stock 1,372,584 865,802

Background and Organization (De

Background and Organization (Details)	Jun. 07, 2016	Mar. 31, 2017USD ($)	Dec. 31, 2016USD ($)
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Stock conversion ratio	13.5263
Accumulated deficit		$ 121,142,868	$ 113,882,615

Summary of Significant Accoun32

Summary of Significant Accounting Policies (Details) - USD ($)	3 Months Ended		12 Months Ended
	Mar. 31, 2017	Mar. 31, 2016	Dec. 31, 2016
Accounting Policies [Abstract]
Uninsured cash balances	$ 733,793
Customer concentration risk | Revenue | Customer A
Concentration Risk [Line Items]
Concentration percentage		15.00%
Customer concentration risk | Revenue | Customer B
Concentration Risk [Line Items]
Concentration percentage	12.00%	10.00%
Customer concentration risk | Accounts Receivable | Customer C
Concentration Risk [Line Items]
Concentration percentage	15.00%		20.00%
Customer concentration risk | Accounts Receivable | Customer D
Concentration Risk [Line Items]
Concentration percentage			16.00%
Geographic concentration risk | Revenue | North America
Concentration Risk [Line Items]
Concentration percentage	54.00%	41.00%

Balance Sheet Components - Sche

Balance Sheet Components - Schedule of Inventories (Details) - USD ($)	Mar. 31, 2017	Dec. 31, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Raw materials	$ 2,327,896	$ 2,554,853
Work in progress	2,481,557	2,343,898
Finished goods	2,059,949	1,751,089
Inventories	$ 6,869,402	$ 6,649,840

Balance Sheet Components - Sc34

Balance Sheet Components - Schedule of Property and Equipment, Net (Details) - USD ($)	Mar. 31, 2017	Dec. 31, 2016
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 3,119,680	$ 3,087,381
Less: Accumulated depreciation and amortization	(2,490,796)	(2,372,584)
Property and equipment, net	628,884	714,797
Leasehold Improvements
Property, Plant and Equipment [Line Items]
Property and equipment, gross	844,360	844,360
Machinery and equipment
Property, Plant and Equipment [Line Items]
Property and equipment, gross	1,592,473	1,560,174
Computer and office equipment
Property, Plant and Equipment [Line Items]
Property and equipment, gross	241,291	241,291
Software
Property, Plant and Equipment [Line Items]
Property and equipment, gross	326,992	326,992
Furniture and fixtures
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 114,564	$ 114,564

Balance Sheet Components - Narr

Balance Sheet Components - Narrative (Details) - USD ($)	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Purchase commitments for inventory	$ 870,711
Depreciation and amortization	$ 118,212	$ 147,448

Balance Sheet Components - Accr

Balance Sheet Components - Accrued Liabilities (Details) - USD ($)	Mar. 31, 2017	Dec. 31, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Accrued payroll and related expenses	$ 1,592,457	$ 1,605,214
Accrued royalty	2,018,797	1,887,426
Accrued warranty	149,000	161,000
Accrued marketing	385,400	366,000
Accrued clinical expenses	13,500	9,500
Accrued legal	73,816	41,800
Capital lease payable, current	11,841	16,865
Deferred rent, current	38,806	34,756
Accrued other expenses	531,865	444,515
Accrued liabilities	$ 4,815,482	$ 4,567,076

Balance Sheet Components - Ac37

Balance Sheet Components - Accrued Warranty (Details) - USD ($)	3 Months Ended	12 Months Ended
	Mar. 31, 2017	Dec. 31, 2016
Warranty accrual activity
Warranty accrual, beginning of period	$ 161,000	$ 217,000
Accruals for product warranty	29,903	342,474
Cost of warranty claims	(41,903)	(398,474)
Warranty accrual, end of period	$ 149,000	$ 161,000

Fair Value of Financial Instr38

Fair Value of Financial Instruments - Assets and Liabilities Measured on a Recurring Basis (Details) - Fair Value, Measurements, Recurring - USD ($)	Mar. 31, 2017	Dec. 31, 2016
Stock warrants
Liabilities
Warrant liability	$ 0	$ 7,342
Stock warrants | Level 1
Liabilities
Warrant liability	0	0
Stock warrants | Level 2
Liabilities
Warrant liability	0	0
Stock warrants | Level 3
Liabilities
Warrant liability	0	$ 7,342
Derivative liability
Liabilities
Warrant liability	6,000,209
Derivative liability | Level 1
Liabilities
Warrant liability	0
Derivative liability | Level 2
Liabilities
Warrant liability	0
Derivative liability | Level 3
Liabilities
Warrant liability	$ 6,000,209

Fair Value of Financial Instr39

Fair Value of Financial Instruments - Changes in Warrant and Derivative Liability (Details) - USD ($)	3 Months Ended	12 Months Ended
	Mar. 31, 2017	Dec. 31, 2016
Stock warrants
Changes in the warrant liability
Beginning balance	$ 7,342	$ 499,616
Fair value of warrants issued during the year		44,663
Conversion to common stock warrants	(7,094)	(80,703)
Change in fair value recorded in other income (expense), net	(248)	(456,234)
Ending balance	0	7,342
Derivative liability
Changes in the warrant liability
Beginning balance	0
Fair value of warrants issued during the year	5,857,838
Change in fair value recorded in other income (expense), net	142,371
Ending balance	$ 6,000,209	$ 0

Related Party Transactions (Det

Related Party Transactions (Details) - USD ($)	1 Months Ended		3 Months Ended		12 Months Ended
	Mar. 31, 2013	Feb. 29, 2008	Mar. 31, 2017	Mar. 31, 2016	Dec. 31, 2016
Related Party Transaction [Line Items]
Accrued royalty			$ 2,018,797		$ 1,887,426
The Foundry | Seed capital and management services
Related Party Transaction [Line Items]
Total amount reimbursed for services			0	$ 16,191
The Foundry | Royalty agreements
Related Party Transaction [Line Items]
Agreement rate (percent)	3.00%	1.50%
Maximum royalties		$ 30,000,000
Accrued royalty			2,020,888		1,887,426
Royalties paid			$ 0		$ 0
The Foundry | Royalty agreements | Prime rate
Related Party Transaction [Line Items]
Spread on prime rate (percent)			1.00%
The Foundry | Licensed products
Related Party Transaction [Line Items]
Agreement rate (percent)		1.50%
The Foundry | Patented products
Related Party Transaction [Line Items]
Agreement rate (percent)		1.50%

Commitments and Contingencies -

Commitments and Contingencies - Additional Information (Details) - USD ($)	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016	Dec. 31, 2016
Loss Contingencies [Line Items]
Rent expense under the company's operating leases	$ 142,305	$ 143,273
Indemnification agreement | Directors
Loss Contingencies [Line Items]
Liability associated with indemnification	0		$ 0
Defects in device
Loss Contingencies [Line Items]
Liability associated with indemnification	$ 0		$ 0

Commitments and Contingencies42

Commitments and Contingencies - Future Minimum Lease Payments (Details) - USD ($)	Mar. 31, 2017	Dec. 31, 2016
Operating Lease
Nine months ending December 31, 2017	$ 405,042
Year ending December 31, 2018	568,773
Year ending December 31, 2018	241,592
Total minimum lease payments	1,215,407
Capital Leases
Nine months ending December 31, 2017	11,993
Year ending December 31, 2018	0
Year ending December 31, 2019	0
Total minimum lease payments	11,993
Less: Amount representing interest	(152)
Present value of minimum lease payments	11,841
Less: current portion of capital leases	(11,841)	$ (16,865)
Long term portion of capital leases	$ 0

Notes Payable - Narrative (Deta

Notes Payable - Narrative (Details) - USD ($)	1 Months Ended	3 Months Ended
	Jan. 31, 2017	Mar. 31, 2017	Dec. 31, 2016	Aug. 31, 2015	Jun. 30, 2013
Debt Instrument [Line Items]
Maximum amount	$ 3,000,000
Insurance premiums financing agreements
Debt Instrument [Line Items]
Payment term		9 months
Outstanding balance of financing agreements		$ 17,894	$ 125,691
Insurance premiums financing agreements | Minimum
Debt Instrument [Line Items]
Interest rate (percent)		2.25%
Insurance premiums financing agreements | Maximum
Debt Instrument [Line Items]
Interest rate (percent)		4.95%
10% Convertible Promissory Notes | Convertible promissory notes
Debt Instrument [Line Items]
Aggregate principal amount	$ 2,700,000
Interest rate (percent)	10.00%
Debt Instrument term equity financing minimum	$ 10,000,000
Debt terms change in control event and equity financing met, multiplier on debt	500.00%
Debt terms change in control event and equity financing not met, multiplier on debt	500.00%
Debt terms change in control event, stock-for-stock merger multiplier on debt	300.00%
Debt terms change in control event, trading days of acquiring company	10 days
Debt terms change in control event, cash-for-stock merger multiplier on debt	300.00%
Secured promissory notes | August 2015 Secured Promissory Notes
Debt Instrument [Line Items]
Aggregate principal amount					$ 10,000,000
Interest rate (percent)				7.80%
Secured promissory notes | June 2013 Secured Promissory Notes
Debt Instrument [Line Items]
Maximum amount				$ 20,000,000
Secured promissory notes | June 2013 Secured Promissory Note - Tranche 1
Debt Instrument [Line Items]
Maximum amount				5,000,000
Secured promissory notes | June 2013 Secured Promissory Note - Tranche 2
Debt Instrument [Line Items]
Maximum amount				$ 5,000,000

Notes Payable - Schedule of Ann

Notes Payable - Schedule of Annual Future Principal Payments Under Notes Payable (Details)	Mar. 31, 2017USD ($)
Debt Disclosure [Abstract]
Nine months ended December 31, 2017	$ 4,601,296
Year ending December 31, 2018	4,034,940
Year ending December 31, 2019	3,238,883
Total payments	11,875,119
Less: Unamortized debt discount	(2,376,449)
Carrying value of notes payable	$ 9,498,670

Derivative Liability (Details)

Derivative Liability (Details) - USD ($)	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016	Jan. 31, 2017	Dec. 31, 2016
Debt Instrument [Line Items]
Derivative liability	$ 6,000,209		$ 5,900,000	$ 0
Change in fair value adjustment of derivative liability	(248)	$ (23,878)
Other income (expense), net
Debt Instrument [Line Items]
Change in fair value adjustment of derivative liability	$ 100,000
Minimum
Debt Instrument [Line Items]
Possible outcomes, percent	5.00%
Maximum
Debt Instrument [Line Items]
Possible outcomes, percent	80.00%
Convertible promissory notes | 10% Convertible Promissory Notes
Debt Instrument [Line Items]
Interest rate (percent)			10.00%

Common Stock - Additional Infor

Common Stock - Additional Information (Details)	Mar. 31, 2017board_member$ / sharesshares	Dec. 31, 2016$ / sharesshares
Equity [Abstract]
Common stock, shares issued (shares) | shares	100,000,000	100,000,000
Common stock, par value (usd per share) | $ / shares	$ 0.001	$ 0.001
Number of board members that common stockholders are entitled to elect | board_member	3

Common Stock - Reserved for Iss

Common Stock - Reserved for Issuance (Details)	Mar. 31, 2017shares
Equity [Abstract]
Exercise of options under stock plan (shares)	1,372,584
Options available for grant under stock plan (shares)	109,665
Exercise of common stock warrants (shares)	83,319
Common stock reserved for future issuance (shares)	1,565,568

Stock Warrants - Additional Inf

Stock Warrants - Additional Information (Details) - USD ($)	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Warrants and Rights Note Disclosure [Abstract]
Revaluation of warrants to fair market value	$ 248	$ 23,878
Conversion of convertible warrants to common stock warrants (shares)	4,488
Conversion of convertible preferred stock warrants to common stock warrants	$ 7,094

Stock Warrants - Schedule of Ou

Stock Warrants - Schedule of Outstanding Warrants (Details)	Mar. 31, 2017USD ($)$ / sharesshares
Class of Warrant or Right [Line Items]
Number of Warrants (shares)	83,319
November 2010 warrants issued with Series C convertible preferred stock
Class of Warrant or Right [Line Items]
Number of Warrants (shares)	12,117
Exercise price (usd per share) | $ / shares	$ 21.64
Fair Value at date of issuance | $	$ 212,409
January 2011 warrants issued with Series C convertible preferred stock
Class of Warrant or Right [Line Items]
Number of Warrants (shares)	19,042
Exercise price (usd per share) | $ / shares	$ 21.64
Fair Value at date of issuance | $	$ 259,355
June 2013 warrants issued in conjunction with note purchase agreement
Class of Warrant or Right [Line Items]
Number of Warrants (shares)	9,241
Exercise price (usd per share) | $ / shares	$ 21.64
Fair Value at date of issuance | $	$ 152,750
April 2014 warrants issued in conjunction with drawdown on note purchase agreement
Class of Warrant or Right [Line Items]
Number of Warrants (shares)	9,242
Exercise price (usd per share) | $ / shares	$ 21.64
Fair Value at date of issuance | $	$ 149,250
August 2015 warrants issued with refinance of note purchase agreement
Class of Warrant or Right [Line Items]
Number of Warrants (shares)	16,173
Exercise price (usd per share) | $ / shares	$ 21.64
Fair Value at date of issuance | $	$ 234,719
June to August 2016 warrants issued with in conjunction with merger
Class of Warrant or Right [Line Items]
Number of Warrants (shares)	17,504
Exercise price (usd per share) | $ / shares	$ 5
Fair Value at date of issuance | $	$ 44,663

Stock Warrants - Schedule of St

Stock Warrants - Schedule of Stock Option Plan Fair Value Valuation Assumptions (Details) - Stock warrants - $ / shares	3 Months Ended	12 Months Ended
	Mar. 31, 2017	Dec. 31, 2016
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Expected volatility	55.00%	55.00%
Risk-free interest rate		1.96%
Annual dividend rate	0.00%	0.00%
Share Price (usd per share)	$ 4	$ 4
Minimum
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Expected term (years)	4 years 8 months 5 days	4 years 6 months 22 days
Risk-free interest rate	0.65%
Maximum
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Expected term (years)	4 years 10 months 6 days	4 years 7 months 6 days
Risk-free interest rate	2.27%

Stock Option Plan - Schedule of

Stock Option Plan - Schedule of Stock Option Plan Summary Activity (Details) - 2006 Stock Option Plan - $ / shares	3 Months Ended	12 Months Ended
	Mar. 31, 2017	Dec. 31, 2016
Shares Available for Grant
Beginning balance (shares)	98,754	48,560
Additional shares reserved (shares)		599,535
Options granted (shares)	(375)	(579,460)
Options forfeited (shares)	11,286	30,119
Beginning balance (shares)	109,665	98,754
Number of Options
Beginning balance (shares)	1,383,495	855,904
Options granted (shares)	375	579,460
Options exercised (shares)		(21,750)
Options forfeited (shares)	(11,286)	(30,119)
Ending balance (shares)	1,372,584	1,383,495
Weighted Average Exercise Price
Beginning balance (usd per share)	$ 5.20	$ 6.76
Options granted (usd per share)		5.62
Options granted (usd per share)	4
Options exercised (usd per share)		2.28
Options forfeited (usd per share)	5.09	6.48
Ending balance (usd per share)	$ 5.21	$ 5.20

Stock Option Plan - Schedule 52

Stock Option Plan - Schedule of Stock Option Plan Options Outstanding (Details) - 2006 Stock Option Plan	3 Months Ended
	Mar. 31, 2017USD ($)$ / sharesshares
Options Outstanding
Number outstanding (shares) | shares	1,372,584
Weighted Average Remaining Contractual Life	7 years 8 months 23 days
Weighted Average Exercise Price (usd per share)	$ 5.2100
Aggregate Intrinsic Value | $	$ 13,965
Options Vested
Number Vested (shares) | shares	656,377
Weighted Average Exercise Price (usd per share)	$ 5.0700
Aggregate Intrinsic Value | $	$ 13,965
Exercise price $1.36
Options Outstanding
Exercise price, upper limit (usd per share)	$ 1.3600
Exercise price, lower limit (usd per share)	$ 1.3600
Number outstanding (shares) | shares	14,856
Weighted Average Remaining Contractual Life	7 months 28 days
Weighted Average Exercise Price (usd per share)	$ 1.3600
Aggregate Intrinsic Value | $	$ 13,965
Options Vested
Number Vested (shares) | shares	14,856
Weighted Average Exercise Price (usd per share)	$ 1.3600
Aggregate Intrinsic Value | $	$ 13,965
Exercise price $2.44
Options Outstanding
Exercise price, upper limit (usd per share)	$ 2.4400
Exercise price, lower limit (usd per share)	$ 2.4400
Number outstanding (shares) | shares	8,501
Weighted Average Remaining Contractual Life	1 year 18 days
Weighted Average Exercise Price (usd per share)	$ 2.4400
Aggregate Intrinsic Value | $	$ 0
Options Vested
Number Vested (shares) | shares	8,501
Weighted Average Exercise Price (usd per share)	$ 2.4400
Aggregate Intrinsic Value | $	$ 0
Exercise Price $4.00
Options Outstanding
Exercise price, upper limit (usd per share)	$ 4
Exercise price, lower limit (usd per share)	$ 4
Number outstanding (shares) | shares	375
Weighted Average Remaining Contractual Life	9 years 10 months 6 days
Weighted Average Exercise Price (usd per share)	$ 4
Aggregate Intrinsic Value | $	$ 0
Options Vested
Number Vested (shares) | shares	0
Weighted Average Exercise Price (usd per share)	$ 4
Aggregate Intrinsic Value | $	$ 0
Exercise price $4.33
Options Outstanding
Exercise price, upper limit (usd per share)	$ 4.3300
Exercise price, lower limit (usd per share)	$ 4.3300
Number outstanding (shares) | shares	29,553
Weighted Average Remaining Contractual Life	2 years 10 months 6 days
Weighted Average Exercise Price (usd per share)	$ 4.3300
Aggregate Intrinsic Value | $	$ 0
Options Vested
Number Vested (shares) | shares	29,553
Weighted Average Exercise Price (usd per share)	$ 4.3300
Aggregate Intrinsic Value | $	$ 0
Exercise price $5.00
Options Outstanding
Exercise price, upper limit (usd per share)	$ 5
Exercise price, lower limit (usd per share)	$ 5
Number outstanding (shares) | shares	725,592
Weighted Average Remaining Contractual Life	7 years 22 days
Weighted Average Exercise Price (usd per share)	$ 5
Aggregate Intrinsic Value | $	$ 0
Options Vested
Number Vested (shares) | shares	433,762
Weighted Average Exercise Price (usd per share)	$ 5
Aggregate Intrinsic Value | $	$ 0
Exercise Price $5.48
Options Outstanding
Exercise price, upper limit (usd per share)	$ 5.4800
Exercise price, lower limit (usd per share)	$ 5.4800
Number outstanding (shares) | shares	15,650
Weighted Average Remaining Contractual Life	9 years 7 months 24 days
Weighted Average Exercise Price (usd per share)	$ 5.4800
Aggregate Intrinsic Value | $	$ 0
Options Vested
Number Vested (shares) | shares	1,250
Weighted Average Exercise Price (usd per share)	$ 5.4800
Aggregate Intrinsic Value | $	$ 0
Exercise price $5.57
Options Outstanding
Exercise price, upper limit (usd per share)	$ 5.5700
Exercise price, lower limit (usd per share)	$ 5.5700
Number outstanding (shares) | shares	430,233
Weighted Average Remaining Contractual Life	9 years 4 months 28 days
Weighted Average Exercise Price (usd per share)	$ 5.5700
Aggregate Intrinsic Value | $	$ 0
Options Vested
Number Vested (shares) | shares	116,860
Weighted Average Exercise Price (usd per share)	$ 5.5700
Aggregate Intrinsic Value | $	$ 0
Exercise price $5.9525
Options Outstanding
Exercise price, upper limit (usd per share)	$ 5.5925
Exercise price, lower limit (usd per share)	$ 5.5925
Number outstanding (shares) | shares	112,651
Weighted Average Remaining Contractual Life	9 years 4 months 24 days
Weighted Average Exercise Price (usd per share)	$ 5.5925
Aggregate Intrinsic Value | $	$ 0
Options Vested
Number Vested (shares) | shares	16,422
Weighted Average Exercise Price (usd per share)	$ 5.5925
Aggregate Intrinsic Value | $	$ 0
Exercise price $6.36
Options Outstanding
Exercise price, upper limit (usd per share)	$ 6.3600
Exercise price, lower limit (usd per share)	$ 6.3600
Number outstanding (shares) | shares	20,248
Weighted Average Remaining Contractual Life	1 year 7 months 17 days
Weighted Average Exercise Price (usd per share)	$ 6.3600
Aggregate Intrinsic Value | $	$ 0
Options Vested
Number Vested (shares) | shares	20,248
Weighted Average Exercise Price (usd per share)	$ 6.3600
Aggregate Intrinsic Value | $	$ 0
Exercise price $6.63
Options Outstanding
Exercise price, upper limit (usd per share)	$ 6.6300
Exercise price, lower limit (usd per share)	$ 6.6300
Number outstanding (shares) | shares	2,109
Weighted Average Remaining Contractual Life	7 years 3 months 18 days
Weighted Average Exercise Price (usd per share)	$ 6.6300
Aggregate Intrinsic Value | $	$ 0
Options Vested
Number Vested (shares) | shares	2,109
Weighted Average Exercise Price (usd per share)	$ 6.6300
Aggregate Intrinsic Value | $	$ 0
Exercise price $7.44
Options Outstanding
Exercise price, upper limit (usd per share)	$ 7.4400
Exercise price, lower limit (usd per share)	$ 7.4400
Number outstanding (shares) | shares	8,166
Weighted Average Remaining Contractual Life	4 years 10 months 6 days
Weighted Average Exercise Price (usd per share)	$ 7.4400
Aggregate Intrinsic Value | $	$ 0
Options Vested
Number Vested (shares) | shares	8,166
Weighted Average Exercise Price (usd per share)	$ 7.4400
Aggregate Intrinsic Value | $	$ 0
Exercise price $7.58
Options Outstanding
Exercise price, upper limit (usd per share)	$ 7.5800
Exercise price, lower limit (usd per share)	$ 7.5800
Number outstanding (shares) | shares	1,205
Weighted Average Remaining Contractual Life	8 years 3 months 15 days
Weighted Average Exercise Price (usd per share)	$ 7.5800
Aggregate Intrinsic Value | $	$ 0
Options Vested
Number Vested (shares) | shares	1,205
Weighted Average Exercise Price (usd per share)	$ 7.5800
Aggregate Intrinsic Value | $	$ 0
Exercise price $8.66
Options Outstanding
Exercise price, upper limit (usd per share)	$ 8.6600
Exercise price, lower limit (usd per share)	$ 8.6600
Number outstanding (shares) | shares	3,445
Weighted Average Remaining Contractual Life	5 years 11 months 12 days
Weighted Average Exercise Price (usd per share)	$ 8.6600
Aggregate Intrinsic Value | $	$ 0
Options Vested
Number Vested (shares) | shares	3,445
Weighted Average Exercise Price (usd per share)	$ 8.6600
Aggregate Intrinsic Value | $	$ 0

Stock Option Plan - Stock-Based

Stock Option Plan - Stock-Based Compensation Associated with Awards to Employees Narrative (Details) - 2006 Stock Option Plan - USD ($)	3 Months Ended		12 Months Ended
	Mar. 31, 2017	Mar. 31, 2016	Dec. 31, 2016	Dec. 31, 2015
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Options granted (shares)	375		579,460
Exercise price after adjustment (usd per share)	$ 5.21		$ 5.20	$ 6.76
Employee Stock Option
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Options granted (shares)	375
Exercise price after adjustment (usd per share)	$ 1.58
Compensation expense	$ 209,676	$ 120,839
Total unrecognized compensation costs	$ 1,491,347
Period of recognition for costs not yet recognized	2 years 4 months 24 days
Fair value of employee options vested	$ 214,012	$ 127,870

Stock Option Plan - Schedule 54

Stock Option Plan - Schedule of Stock Option Plan Fair Value Valuation Assumptions, Employees (Details) - 2006 Stock Option Plan - Employee Stock Option	3 Months Ended	12 Months Ended
	Mar. 31, 2017	Dec. 31, 2016
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Expected term (in years)	4 years 9 months	5 years 2 months 16 days
Expected volatility (percent)	44.00%	46.00%
Risk-free interest rate	1.85%
Risk-free interest rate, minimum		1.17%
Risk-free interest rate, maximum		1.69%
Dividend yield	0.00%	0.00%

Stock Option Plan - Stock-Bas55

Stock Option Plan - Stock-Based Compensation Associated with Awards to Non-employees Narrative (Details) - Nonemployee Stock Option - Board Adviser - USD ($)	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Compensation expense	$ 32,328	$ 21,927
Total unrecognized compensation costs	$ 265,025
Period of recognition for costs not yet recognized	2 years 3 months 22 days

Stock Option Plan - Schedule 56

Stock Option Plan - Schedule of Stock Option Plan Fair Value Valuation Assumptions, Nonemployees (Details) - Board Adviser - Nonemployee Stock Option	3 Months Ended	12 Months Ended
	Mar. 31, 2017	Dec. 31, 2016
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected term (in years)	5 years 8 months 1 day	5 years 10 months 21 days
Expected volatility (percent)	49.00%	47.00%
Risk-free interest rate	1.43%
Dividend yield (percent)	0.00%	0.00%
Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Risk-free interest rate		1.29%
Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Risk-free interest rate		1.69%

Employee Benefit Plan (Details)

Employee Benefit Plan (Details) - USD ($)	3 Months Ended	12 Months Ended
	Mar. 31, 2017	Dec. 31, 2016
Compensation and Retirement Disclosure [Abstract]
Match per employee contribution (percent)	100.00%
Match per employee contribution	$ 1,000
Employer contributions	$ 21,600	$ 44,385

Net Loss per Share - Schedule o

Net Loss per Share - Schedule of Basic and Diluted Net Loss Per Share (Details) - USD ($)	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Earnings Per Share [Abstract]
Net and comprehensive loss attributable to common stockholders	$ (7,260,253)	$ (3,314,596)
Weighted-average common shares used in computing net loss per share attributable to common stockholders, basic and diluted	9,334,857	398,541
Net loss per share attributable to common stockholders, basic and diluted (usd per share)	$ (0.78)	$ (8.32)

Net Loss per Share - Schedule59

Net Loss per Share - Schedule of Weighted-average Common Stock Equivalents Excluded From Calculation of Diluted Net Loss Per Share (Details) - shares	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Convertible preferred stock (if converted)
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Weighted-average common stock equivalents excluded from net loss per share (shares)	0	3,611,876
Stock warrants
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Weighted-average common stock equivalents excluded from net loss per share (shares)	83,319	66,924
Options to purchase common stock
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Weighted-average common stock equivalents excluded from net loss per share (shares)	1,372,584	865,802

Subsequent Events (Details)

Subsequent Events (Details) - USD ($)	1 Months Ended
	Mar. 31, 2017	Jun. 30, 2013
Debt Instrument [Line Items]
Carve-off from Net Proceeds, percentage	10.00%
Secured promissory notes | August 2015 Secured Promissory Notes
Debt Instrument [Line Items]
Aggregate principal amount		$ 10,000,000