ViewRay (VRAYQ) 10-Q 15 May 17 2017 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2017	May 10, 2017
Document And Entity Information [Abstract]
Entity Registrant Name	ViewRay, Inc.
Entity Central Index Key	1,597,313
Document Type	10-Q
Trading Symbol	VRAY
Document Period End Date	Mar. 31, 2017
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		57,383,055
Document Fiscal Period Focus	Q1
Document Fiscal Year Focus	2,017

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Current assets:
Cash and cash equivalents	$ 49,301	$ 14,198
Accounts receivable	3,272	4,200
Inventory	10,216	8,082
Deposits on purchased inventory	4,473	2,522
Deferred cost of revenue	6,250	3,909
Prepaid expenses and other current assets	4,698	3,023
Total current assets	78,210	35,934
Property and equipment, net	11,353	11,560
Restricted cash	1,143	1,143
Intangible assets, net	92	97
Other assets	30	30
TOTAL ASSETS	90,828	48,764
Current liabilities:
Accounts payable	5,561	4,980
Accrued liabilities	6,322	6,334
Customer deposits	21,400	19,400
Deferred revenue, current portion	10,291	6,515
Total current liabilities	43,574	37,229
Deferred revenue, net of current portion	3,623	3,918
Long-term debt	44,368	44,290
Warrant liabilities	21,327	2,723
Other long-term liabilities	4,973	4,257
TOTAL LIABILITIES	117,865	92,417
Commitments and contingencies (Note 6)
Stockholders’ deficit:
Preferred stock, par value of $0.01 per share; 10,000,000 shares authorized at March 31, 2017 and December 31, 2016; no shares issued and outstanding at March 31, 2017 and December 31, 2016
Common stock, par value of $0.01 per share; 300,000,000 shares authorized at March 31, 2017 and December 31, 2016; 56,086,583 and 43,581,184 shares issued and outstanding at March 31, 2017 and December 31, 2016	551	426
Additional paid-in capital	248,050	203,598
Accumulated deficit	(275,638)	(247,677)
TOTAL STOCKHOLDERS’ DEFICIT	(27,037)	(43,653)
TOTAL LIABILITIES AND STOCKHOLDERS’ DEFICIT	$ 90,828	$ 48,764

Condensed Consolidated Balance3

Condensed Consolidated Balance Sheets (Parenthetical) (Unaudited) - $ / shares	Mar. 31, 2017	Dec. 31, 2016
Statement Of Financial Position [Abstract]
Preferred stock, par value	$ 0.01	$ 0.01
Preferred stock, shares authorized	10,000,000	10,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized	300,000,000	300,000,000
Common stock, shares issued	56,086,583	43,581,184
Common stock, shares outstanding	56,086,583	43,581,184

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Revenue:
Product		$ 5,240
Service	$ 1,108	216
Distribution rights	119
Total revenue	1,227	5,456
Cost of revenue:
Product	266	5,927
Service	776	601
Total cost of revenue	1,042	6,528
Gross margin	185	(1,072)
Operating expenses:
Research and development	2,914	3,399
Selling and marketing	1,072	1,279
General and administrative	7,151	6,320
Total operating expenses	11,137	10,998
Loss from operations	(10,952)	(12,070)
Interest income	1	1
Interest expense	(1,737)	(1,082)
Other income (expense), net	(15,273)	(217)
Loss before provision for income taxes	(27,961)	(13,368)
Provision for income taxes	0	0
Net loss	$ (27,961)	$ (13,368)
Net loss per share, basic and diluted	$ (0.54)	$ (0.35)
Weighted-average common shares used to compute net loss per share attributable to common stockholders, basic and diluted	51,821,422	38,211,439

Condensed Consolidated Stateme5

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss	$ (27,961)	$ (13,368)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	467	372
Stock-based compensation	769	556
Accretion on asset retirement obligation	9	9
Change in fair value of warrant liabilities	15,231
Loss on disposal of property and equipment	6	2
Inventory lower of cost or market adjustment		235
Amortization of debt discount and interest accrual	785	462
Changes in operating assets and liabilities:
Accounts receivable	928	830
Inventory	(2,134)	(4,261)
Deposits on purchased inventory	(1,951)	384
Deferred cost of revenue	(2,341)	4,887
Prepaid expenses and other assets	(1,675)	(43)
Accounts payable	560	1,957
Accrued expenses and other long-term liabilities	(138)	504
Customer deposits and deferred revenue	5,481	(3,016)
Net cash used in operating activities	(11,964)	(10,490)
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of property and equipment	(319)	(4,456)
Net cash used in investing activities	(319)	(4,456)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from common stock private placement, gross	26,100
Payment of offering costs related to common stock private placement	(210)
Proceeds from the exercise of stock options	2	8
Net cash provided by financing activities	47,386	8
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS	35,103	(14,938)
CASH AND CASH EQUIVALENTS — BEGINNING OF PERIOD	14,198	20,667
CASH AND CASH EQUIVALENTS — END OF PERIOD	49,301	5,729
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
Cash paid for interest	951	621
SUPPLEMENTAL NON-CASH INVESTING AND FINANCING ACTIVITIES:
Purchase of property and equipment in accounts payable and accrued expenses	135	932
Transfer of property and equipment from inventory		$ 1,728
Offering cost in accounts payable and accrued expenses	394
At The Market Offering Program [Member]
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from at-the-market offering of common stock, gross	21,921
Payment of offering costs related to at-the-market offering of common stock	$ (427)

Background and Organization

Background and Organization	3 Months Ended
	Mar. 31, 2017
Accounting Policies [Abstract]
Background and Organization	1. Background and Organization ViewRay, Inc., or ViewRay or the Company, and its wholly-owned subsidiary ViewRay Technologies, Inc., designs, manufactures and markets MRIdian, the first and only MRI-guided radiation therapy system to image and treat cancer patients simultaneously. Since inception, ViewRay Technologies, Inc. has devoted substantially all of its efforts towards research and development, initial selling and marketing activities, raising capital and the manufacturing and shipment of MRIdian systems. In May 2012, ViewRay Technologies, Inc. was granted clearance from the U.S. Food and Drug Administration, or FDA, to sell MRIdian with cobalt. In November 2013, ViewRay Technologies, Inc. received its first clinical acceptance of a MRIdian with cobalt at a customer site, and the first patient was treated with that system in January 2014. ViewRay Technologies, Inc. has had the right to affix the CE mark to MRIdian with cobalt in the European Union, or EU, since November 2014. In September 2016, the Company received the rights to affix the CE mark and in February 2017, the Company received 510(k) clearance from the FDA to market MRIdian Linac. The Company’s condensed consolidated financial statements have been prepared on the basis of the Company continuing as a going concern for a reasonable period of time. The Company’s principal sources of liquidity are cash flows from investment capital and available borrowings under its term loan agreement. These have historically been sufficient to meet working capital needs, capital expenditures, and debt service obligations. During the three months ended March 31, 2017, the Company incurred a net loss from operations of $28.0 million and used cash in operations of $12.0 million. The Company believes that its existing cash balance of $49.3 million as of March 31, 2017, which is largely made up of the aggregate $48.0 million of proceeds from the January 2017 private placement and equity issuances during the first quarter of 2017, is sufficient to provide liquidity to fund its operations for at least the next 12 months.

Summary of Significant Accounti

Summary of Significant Accounting Policies	3 Months Ended
	Mar. 31, 2017
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	2. Summary of Significant Accounting Policies Basis of Presentation The condensed consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America, or GAAP, and pursuant to the rules and regulation of the Securities and Exchanges Commission, or SEC. The condensed consolidated financial statements include the accounts of ViewRay, Inc. and its wholly-owned subsidiary, ViewRay Technologies, Inc. All inter-company accounts and transactions have been eliminated in consolidation. In the opinion of management, all adjustments, including normal recurring adjustments, considered necessary for a fair presentation of the Company’s unaudited condensed consolidated financial statements have been included. The results of operations for the three months ended March 31, 2017 are not necessarily indicative of the results that may be expected for the year ending December 31, 2017 or any future period. These unaudited condensed consolidated financial statements and notes thereto should be read in conjunction with the audited consolidated financial statements and notes thereto for the year ended December 31, 2016. The significant accounting policies used in preparation of these condensed consolidated financial statements are disclosed in the notes to consolidated financial statements included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2016 filed with the SEC on March 17, 2017, and have not changed significantly since such filing. Recent Accounting Pronouncements In May 2014, the Financial Accounting Standards Board, or FASB, issued Accounting Standards Update, or ASU, No. 2014-09, Revenue from Contracts with Customers (Topic 606) In December 2016, the Company initiated its evaluation of ASU No. 2014-09, including the expected impact on its business processes, systems and controls, and potential differences in the timing and/or method of revenue recognition for its sales contracts. Based on the initial assessment, the Company does not believe the adoption of ASU No. 2014-09 will have a material impact on the amount or timing of its revenue recognition. Due to the nature of the Company’s sales arrangements, product revenue, service revenue and distribution rights revenue are expected to remain substantially unchanged. The Company expects to select a transition method during the first half of 2017, and will continue its evaluation of ASU No. 2014-09 through the date of adoption. In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) In August 2016, the FASB issued ASU No. 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments, Statement of Cash Flows (Topic 230): Restricted Cash, Recently Adopted Accounting Pronouncements In July 2015, the FASB issued ASU No. 2015-11, Simplifying the Measurement of Inventory In March 2016, the FASB issued ASU No. 2016-09, Compensation – Stock Compensation (Topic 718 ): Improvements to Employee Share-Based Payment Accounting

Balance Sheet Components

Balance Sheet Components	3 Months Ended
	Mar. 31, 2017
Organization Consolidation And Presentation Of Financial Statements [Abstract]
Balance Sheet Components	3. Balance Sheet Components Property and Equipment Property and equipment consisted of the following (in thousands): March 31, 2017 December 31, 2016 Prototype $ 11,929 $ 6,405 Machinery and equipment 6,027 5,807 Leasehold improvements 4,621 4,621 Furniture and fixtures 368 368 Software 1,028 1,028 Construction in progress — 5,498 Property and equipment, gross 23,973 23,727 Less: accumulated depreciation and amortization (12,620 ) (12,167 ) Property and equipment, net $ 11,353 $ 11,560 Depreciation and amortization expense related to property and equipment were $462 thousand, $326 thousand during the three months ended March 31, 2017 and 2016, respectively. Intangible Assets Intangible assets consisted of the following (in thousands): March 31, 2017 December 31, 2016 License cost $ 512 $ 512 Patents 104 104 Intangible assets, gross 616 616 Accumulated amortization (524 ) (519 ) Intangible assets, net $ 92 $ 97 Intangible assets amortization expense were $5 thousand and $46 At March 31, 2017, the estimated future amortization expense of intangible assets was as follows (in thousands): Year Ending December 31, Estimated Amortization Expense The remainder of 2017 $ 14 2018 19 2019 19 2020 19 2021 10 2022 3 Thereafter 8 Total amortization expense $ 92 Accrued Liabilities Accrued liabilities consisted of the following (in thousands): March 31, 2017 December 31, 2016 Accrued payroll and related benefits $ 4,154 $ 4,274 Accrued accounts payable 940 1,202 Sales tax payable 39 13 Accrued legal, accounting and governance fees 693 509 Other 496 336 Total accrued liabilities $ 6,322 $ 6,334 Deferred Revenue Deferred revenue consisted of the following (in thousands): March 31, 2017 December 31, 2016 Deferred revenue: Product $ 8,550 $ 5,050 Services 1,661 1,561 Distribution rights 3,703 3,822 Total deferred revenue 13,914 10,433 Less: current portion of deferred revenue (10,291 ) (6,515 ) Noncurrent portion of deferred revenue $ 3,623 $ 3,918

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	4. Fair Value of Financial Instruments The Company’s financial instruments that are carried at fair value mainly consist of Level 1 assets and Level 3 liabilities. Level 1 assets include highly liquid bank deposits and money market funds, which were not material at March 31, 2017 and December 31, 2016. Level 3 liabilities that are measured on a recurring basis consist of the 2016 and 2017 warrants for common stock issued in connection with the Company’s private placements. Placement warrant liabilities are valued using the Black-Scholes option-pricing model. Generally, increases (decreases) in the fair value of the underlying stock and estimated term would result in a directionally similar impact to the fair value of the warrants (see Note 9). The gains and losses from re-measurement of Level 3 financial liabilities are recorded as part of other income (expense), net in the condensed consolidated statements of operations. For the three months ended March 31, 2017, the Company recorded a loss of $15.2 million related to the change in fair value of the 2016 and 2017 placement warrants. There have been no transfers between level one, level two and level three in any periods presented. The following table sets forth the fair value of the Company’s financial liabilities by level within the fair value hierarchy (in thousands): At March 31, 2017 Level 1 Level 2 Level 3 Total 2017 Placement Warrants Liability $ — $ — $ 11,818 $ 11,818 2016 Placement Warrants Liability — — 9,509 9,509 Total $ — $ — $ 21,327 $ 21,327 At December 31, 2016 Level 1 Level 2 Level 3 Total 2016 Placement Warrants Liability $ — $ — $ 2,723 $ 2,723 The following table sets forth a summary of the changes in fair value of the Company’s Level 3 financial liabilities (in thousands): Three Months Ended March 31, 2017 Fair value, beginning of period $ 2,723 Issuance of 2017 Placement Warrants 3,373 Change in fair value of Level 3 financial liabilities 15,231 Fair value, end of period $ 21,327

Debt

Debt	3 Months Ended
	Mar. 31, 2017
Debt Instruments [Abstract]
Debt	5. Debt CRG Term Loan In June 2015, ViewRay Technologies, Inc. entered into a Term Loan Agreement, or the CRG Term Loan, with Capital Royalty Partners II L.P., Capital Royalty Partners II – Parallel Fund “A” L.P., Capital Royalty Partners II (Cayman) L.P. and Parallel Investment Opportunities Partners II L.P. or together with their successors by assignment, CRG, for up to $50.0 million of which $30.0 million was made available to the Company upon closing with the remaining $20.0 million to be available on or before June 26, 2016 at its option upon the occurrence of either (i) an initial public offering of its common stock on a nationally recognized securities exchange that raises a minimum of $40.0 million in net cash proceeds with a minimum of $120.0 million post-money valuation, or Qualifying IPO, or (ii) achievement of a minimum of $25.0 million gross revenue from the sales of the MRIdian system during any consecutive 12 months before March 31, 2016. The Company drew down the first $30.0 million on closing date. The CRG Term Loan has a maturity date of June 26, 2020 and bears cash interest at a rate of 12.5% per annum to be paid quarterly during the interest-payment-only period of 3 years. The interest-payment-only period can be extended for another year until June 26, 2019 if the Company completes an underwritten public offering on or before June 26, 2018. During the interest-payment-only period, the Company has the option to elect to pay only 8% of the 12.5% per annum interest in cash, and the remaining 4.5% of the 12.5% per annum interest as compounded interest, or deferred payment in-kind interest, added to the aggregate principal amount of the CRG Term Loan. Principal payment and any deferred payment in-kind interest will be paid quarterly in equal installments following the end of the interest-payment-only period through maturity date. In March 2016, the Company and CRG executed an amendment to the original terms of the CRG Term Loan such that, with regard to the conditions for borrowing the remaining $20.0 million available under the CRG Term Loan, the Company may, at its election, draw down (i) an amount of either $10.0 million or $15.0 million in up to two advances upon achievement of a minimum of $15.0 million of aggregate product and service revenue during any consecutive 12 month period ending on or before March 31, 2016 and (ii) an additional $5.0 million (or $10.0 million, if the previous draw made was only in an amount of $10.0 million) upon achievement of a minimum of $25.0 million of aggregate product and service revenue during any consecutive 12 month period ending on or before December 31, 2016 and upon execution of the first sales contract of the Company’s second generation product. The Company achieved the minimum of $15.0 million gross revenue requirement in March 2016 which made the first $15.0 million of the remaining $20.0 million credit facility immediately available for draw down. In May 2016, the Company drew down the additional $15.0 million available amount. At March 31, 2017, the Company had $45.0 million in outstanding debt to CRG. The CRG Term Loan is subject to a prepayment penalty of 3% on the outstanding balance during the first 12 months following the funding of the Term Loan, 2% on the outstanding balance after year 1 but on or before year 2, 1% on the outstanding balance after year 2 but on or before year 3, and 0% on the outstanding loan if prepaid after year 3 thereafter until maturity. The Term Loan is also subject to a facility fee of 7% based on the sum of the amount drawn and any outstanding payment in-kind interest payable on maturity date or the date such loan becomes due. All direct financing costs were accounted for as a discount on the CRG Term Loan and will be amortized to interest expense during the life of the loan using the effective interest method. The CRG Term Loan is subject to financial covenants and is collateralized by essentially all assets of the Company and limits its ability with respect to additional indebtedness, investments or dividends, among other things, subject to customary exceptions. At March 31, 2017, the Company was in compliance with all financial covenants under the CRG Term Loan. In April 2017, the Company and CRG executed an amendment to the terms of its $50.0 million Term Loan Agreement, as amended in March 2016. Amendments to the CRG Term Loan agreement include availability of the existing $5.0 million tranche at ViewRay’s option through June 30, 2017, the addition of a $15.0 million tranche of borrowing capacity available at ViewRay’s option through September 30, 2017, extension of the interest-only and payment in-kind period, a decrease to the combined 2016 and 2017 revenue covenant and a 1.5% to 1.75% increase to the facility fee.

Commitments and Contingencies

Commitments and Contingencies	3 Months Ended
	Mar. 31, 2017
Commitments And Contingencies Disclosure [Abstract]
Commitments and Contingencies	6. Commitments and Contingencies Operating Leases The Company leases office space in Oakwood Village, Ohio and Mountain View, California under non-cancellable operating leases. At March 31, 2017, the future minimum payments for the operating leases are as follows (in thousands): Year Ending December 31, Future Payments The remainder of 2017 $ 860 2018 1,188 2019 1,079 Total future minimum payments $ 3,127 Contingencies The Company is subject to claims and assessments from time to time in the ordinary course of business. The Company records a provision for a liability when it believes that it is both probable that a liability has been incurred and the amount can be reasonably estimated. Significant judgment is required to determine both probability and the estimated amount. In the normal course of business, the Company may become involved in legal proceedings. The Company will accrue a liability for such matters when it is probable that a liability has been incurred and the amount can be reasonably estimated. When only a range of possible loss can be established, the most probable amount in the range is accrued. If no amount within this range is a better estimate than any other amount within the range, the minimum amount in the range is accrued. The accrual for a litigation loss contingency might include, for example, estimates of potential damages, outside legal fees and other directly related costs expected to be incurred. At March 31, 2017 and December 31, 2016, the Company was not involved in any material legal proceedings. Purchase Commitments At March 31, 2017 and December 31, 2016, the Company had no outstanding firm purchase commitments.

Distribution Agreement

Distribution Agreement	3 Months Ended
	Mar. 31, 2017
Other Industries [Abstract]
Distribution Agreement	7. Distribution Agreement In December 2014, the Company entered into a distribution agreement with Itochu Corporation, or Itochu, a Japanese entity, pursuant to which the Company appointed Itochu as its exclusive distributor for the sale and delivery of the Company’s MRIdian products within Japan. The exclusive distribution agreement has an initial term of 10 years from December 2014 and contains features customary in such distribution agreements. Under this distribution agreement, the Company will supply its products and services to Itochu based upon the Company’s then-current pricing. In consideration of the exclusive distribution rights granted, Itochu agreed to pay a distribution fee of $4.0 million in three installments: (i) the first installment of $1.0 million was due upon execution of the distribution agreement; (ii) the second installment of $1.0 million was due within 10 business days following submission of the application for regulatory approval of the Company’s product to the Japan regulatory authority; and (iii) the final installment of $2.0 million was due within 10 business days following receipt of approval for the Company’s product from the Japanese Ministry of Health, Labor and Welfare. The distribution fee paid by Itochu was refundable if the Company failed to obtain the approval from the Japan regulatory authority before December 31, 2017. The first and second installments of $2.0 million in aggregate were received in December 2014 and December 2015, respectively. In August 2016, the Company received the third and final $2.0 million installment upon the receipt of regulatory approval to market MRIdian in Japan

Equity Financing

Equity Financing	3 Months Ended
	Mar. 31, 2017
Equity [Abstract]
Equity Financing	8. Equity Financing Private Placements In September 2016, the Company completed the final closing of a private placement offering, or the 2016 Private Placement, through which it sold an aggregate of 4,602,506 shares of its common stock at a purchase price of $2.95 per share and warrants that provide the warrant holder the right to purchase 1,380,745 shares of common stock, or the 2016 Placement Warrants, and raised total gross proceeds of $13.8 million. The 2016 Placement Warrants have a per share exercise price of $2.95 per share, are exercisable at any time at the option of the holder and expire seven years from the date of issuance. In January 2017, the Company entered into a Securities Purchase Agreement pursuant to which it sold an aggregate of 10,323,101 shares of common stock which consists of 8,602,589 shares of common stock and warrants to purchase 1,720,512 shares of common stock, or the 2017 Placement Warrants, for total gross proceeds of $26.1 million, or the 2017 Private Placement. The Company completed the closing of the 2017 Private Placement on January 18, 2017. The 2017 Placement Warrants have a per share exercise price of $3.17 per share, are exercisable after six months and expire seven years from the date of issuance. At-The-Market Offering of Common Stock In January 2017, the Company issued a base prospectus which covers the offering, issuance and sale by the registrant of up to a maximum aggregate offering price of $75.0 million of the registrant’s common stock, preferred stock, debt securities, warrants, purchase contracts and/or units; and in accordance with Rule 415(a)(4) under the Securities Act FBR acted as sales agent on a best efforts basis and used commercially reasonable efforts to sell on behalf of the Company all of the shares of common stock requested to be sold by the Company, consistent with its normal trading and sales practices, on mutually agreed terms between FBR and the Company. There is no arrangement for funds to be received in any escrow, trust or similar arrangement. FBR is entitled to compensation of up to 3.0% of the gross sales price per share sold. In connection with the sale of the Company’s common stock on the Company’s behalf, FBR is deemed to be an “underwriter” within the meaning of the Securities Act and the compensation of FBR is deemed to be underwriting commissions or discounts. The Company has also agreed to provide indemnification and contribution to FBR with respect to certain liabilities, including liabilities under the Securities Act. As of March 31, 2017, the Company sold 3,884,234 shares of its common stock at an average market price of $5.64 per share, resulting in aggregate gross proceeds of approximately $21.9 million.

Warrants

Warrants	3 Months Ended
	Mar. 31, 2017
Equity [Abstract]
Warrants	9. Warrants Equity Classified Common Stock Warrants At March 31, 2017 and December 31, 2016, the Company had warrants to purchase 128,231 shares of its common stock with an exercise price of $5.84 per share. These warrants were issued in connection with a debt financing in December 2013, and are exercisable any time at the option of the holder until December 16, 2023. In connection with the merger of the Company and ViewRay Technologies, Inc. in July 2015, or the Merger, in July and August 2015, the Company conducted a private placement offering during which the Company the five year anniversary of its date of issuance All of these warrants remain outstanding at March 31, 2017 and December 31, 2016, and were accounted for as equity awards. Liability Classified Common Stock Warrants In connection with the 2016 Private Placement, in August and September 2016, the Company issued warrants, the 2016 Placement Warrants, that provide the warrant holder the right to purchase 1,380,745 shares of common stock at an exercise price of $2.95 per share. These 2016 Placement Warrants are exercisable at any time at the option of the holder until the seven year anniversary of its date of issuance. The 2016 Placement Warrants also contain protection whereby warrants will expire immediately prior to the consummation of a Change of Control and holders have the right to receive cash in the amount equal to the Black-Scholes value of warrants. A Change of Control is defined as (i) a merger or consolidation of the Company with another corporation, (ii) the sale, transfer or other disposal of substantially all of the assets or a majority of the Company’s outstanding shares of capital stock, (iii) a purchase or exchange offer accepted by the holders of a majority of the outstanding voting shares of the Company’s capital stock, or (iv) a “person” or “group,” as defined by Section 13(d) and 14(d) of the Securities Exchange Act of 1934, as amended, is or will become the beneficial owner, directly or indirectly, of at least a majority of the voting power of the Company’s capital stock. The 2016 Placement Warrants were accounted for as a liability at the date of issuance and are adjusted to fair value at each balance sheet date, with the change in fair value recorded as a component of other income (expense), net in the condensed consolidated statements of operations. As separate classes of securities were issued in a bundled transaction, the gross proceeds from the 2016 Private Placement of $13.8 million was allocated first to the 2016 Placement Warrants based on its fair value upon issuance, and the residual was allocated to the common stock. The fair value upon issuance of $2.7 million for the 2016 Placement Warrants was estimated using the Black-Scholes option-pricing model with the following weighted-average assumptions: expected term of seven years, expected volatility of 61.6%, risk-free interest rate of 1.4% and expected dividend yield of 0%. During the three months ended March 31, 2017, the Company recorded a loss of $6.8 million related to the change in fair value of the 2016 Placement Warrants. The fair value of the 2016 Placement Warrants of $9.5 million was estimated using the Black-Scholes option pricing model and the following weighted-average assumptions: March 31, 2017 2016 Placement Warrant: Expected term (in years) 6.4 Expected volatility 67.9% Risk-free interest rate 2.2% Expected dividend yield 0% At March 31, 2017 and December 31, 2016 the 2016 Placement Warrants had not been exercised and were still outstanding. In connection with the 2017 Private Placement, in January 2017, the Company issued warrants, the 2017 Placement Warrants, that provide the warrant holder the right to purchase 1,720,512 shares of common stock at an exercise price of $3.17 per share. These 2017 Placement Warrants are exercisable after six months and expire seven years from the date of issuance. As separate classes of securities were issued in a bundled transaction, the gross proceeds from the 2017 Private Placement of $26.1 million was allocated first to the 2017 Placement Warrants based on its fair value upon issuance, and the residual was allocated to the common stock. The fair value upon issuance of $3.4 million for the 2017 Placement Warrants was estimated using the Black-Scholes option-pricing model with the following weighted-average assumptions: expected term of seven years, expected volatility of 62.9%, risk-free interest rate of 2.2% and expected dividend yield of 0%. During the three months ended March 31, 2017, the Company recorded a loss of $8.4 million related to the change in fair value of the 2017 Placement Warrants. The fair value of the 2017 Placement Warrants of $11.8 million was estimated using the Black-Scholes option pricing model and the following weighted-average assumptions: March 31, 2017 2017 Placement Warrant: Expected term (in years) 6.8 Expected volatility 67.9% Risk-free interest rate 2.2% Expected dividend yield 0% At March 31, 2017, the 2017 Placement Warrants had not been exercised and were still outstanding.

Stock-Based Compensation

Stock-Based Compensation	3 Months Ended
	Mar. 31, 2017
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
Stock-Based Compensation	10. Stock-Based Compensation A summary of the Company’s stock option activity and related information is as follows: Options Outstanding Shares Available for Grant Number of Stock Options Outstanding Weighted- Average Exercise Price Weighted- Average Remaining Contractual (Years) Aggregate Intrinsic Value (In thousands) Balance at December 31, 2016 2,168,391 6,127,291 $ 2.60 7.3 $ 7,800 Additional options authorized 1,743,247 — Granted (2,042,487 ) 2,042,487 5.04 Exercised — (559 ) 3.00 Cancelled 7,361 (7,361 ) 4.66 Balance at March 31, 2017 1,876,512 8,161,858 3.21 7.8 $ 43,281 Vested and exercisable at March 31, 2017 3,906,790 $ 1.77 6.3 $ 26,345 Vested and expected to vest at March 31, 2017 7,800,566 $ 3.15 7.7 $ 41,818 The weighted-average grant date fair value of options granted to employees was $3.10 and $3.06 per share during the three months ended March 31, 2017 and 2016, respectively. The grant date fair value of options vested was $558 thousand and $444 thousand during the three months ended March 31, 2017 and 2016, respectively. Aggregate intrinsic value represents the difference between the estimated fair value of the underlying common stock and the exercise price of outstanding, in-the-money options. The aggregate intrinsic value of options exercised was insignificant during the three months ended March 31, 2017 and 2016, respectively. At March 31, 2017, total unrecognized compensation cost related to stock-based awards granted to employees, net of estimated forfeitures, was $10.3 million which is expected to be recognized over a weighted-average period of 3.3 years. Determination of Fair Value The determination of the fair value of stock options on the date of grant using an option-pricing model is affected by the estimated fair value of the Company’s common stock, as well as assumptions regarding a number of complex and subjective variables. The variables used to calculate the fair value of stock options using the Black-Scholes option-pricing model include actual and projected employee stock option exercise behaviors, expected price volatility of the Company’s common stock, the risk-free interest rate and expected dividends. Each of these inputs is subjective and generally requires significant judgment to determine. Fair Value of Common Stock Prior to the Merger, the fair value of the common stock underlying the stock-based awards was determined by ViewRay Technologies, Inc.’s board of directors, with input from management and third-party valuations. Post-Merger and up through March 30, 2016, the Company’s common stock shares were listed on the OTC Bulletin Board. Beginning March 31, 2016, the Company’s common stock shares were listed on The NASDAQ Global Market, or NASDAQ. Fair value of the common stock is the adjusted closing price of the Company’s common stock on the trading date on these stock exchanges. Expected Term The expected term represents the period that the Company’s option awards are expected to be outstanding. The Company considers several factors in estimating the expected term of options granted, including the expected lives used by a peer group of companies within the Company’s industry that the Company considers to be comparable to its business and the historical option exercise behavior of its employees, which the Company believes is representative of future behavior. Expected Volatility As the Company has a limited trading history for its common stock, the expected stock price volatility for the Company’s common stock was estimated by taking a combination of the average historic price volatility of the Company’s common stock and industry peers based on daily price observations over a period equivalent to the expected term of the stock option grants. Industry peers consist of several public companies in the Company’s industry which were the same as the comparable companies used in the common stock valuation analysis. The Company intends to continue to consistently apply this process using the same or similar public companies until a sufficient amount of historical information regarding the volatility of its own share price becomes available, or unless circumstances change such that the identified companies are no longer similar to the Company, in which case, more suitable companies whose share prices are publicly available would be used in the calculation. Risk-Free Interest Rate The risk-free interest rate is based on the zero coupon U.S. Treasury notes, with maturities similar to the expected term of the options. Expected Dividend Yield The Company does not anticipate paying any dividends in the foreseeable future and, therefore, uses an expected dividend yield of zero in the Black-Scholes option-valuation model. In addition to the Black-Scholes assumptions discussed immediately above, the estimated forfeiture rate also has a significant impact on the related stock-based compensation. The forfeiture rate of stock options is estimated at the time of grant and revised in subsequent periods if actual forfeitures differ from those estimates. The Company uses historical data to estimate pre-vesting option forfeitures and records stock-based compensation expense only for those awards that are expected to vest. The fair value of employee stock option was estimated at the date of grant using a Black-Scholes option-pricing model with the following weighted-average assumptions: Three Months Ended March 31, 2017 2016 Expected term (in years) 6.0 6.0 Expected volatility% 67.1% 69.8% Risk-free interest rate% 2.1% 1.5% Expected dividend yield% 0.0% 0.0% Restricted Stock Units In September 2016, the Company granted 112,578 shares of restricted stock units, or RSUs, to its board of directors for their past services. These RSUs had a grant date fair value of were fully vested upon issuance and will be released and settled upon termination of the board services or the occurrence of a change in control event. In December 2016, the Company granted 18,017 and 20,645 shares of RSUs to certain executive officers for bonus and one consultant for their service, respectively. These RSUs were fully vested upon issuance and the 18,017 shares of RSUs granted to certain executive officers were released during the three months ended March 31, 2017. For the three months ended March 31, 2017, no additional RSUs were issued and no stock-based compensation expense related to RSUs was recorded in the accompanying condensed consolidated statements of operations. Stock-Based Compensation Expense Total stock-based compensation expense recognized in the Company’s condensed consolidated statements of operations is classified as follows (in thousands): Three Months Ended March 31, 2017 2016 Research and development $ 165 $ 121 Selling and marketing 51 24 General and administrative 553 411 Total stock-based compensation expense $ 769 $ 556 During the three months ended March 31, 2017 and 2016, there were no stock-based compensation expenses capitalized as a component of inventory or recognized in cost of revenue. Stock-based compensation relating to stock-based awards granted to consultants were insignificant during the three months ended March 31, 2017 and 2016.

Income Tax

Income Tax	3 Months Ended
	Mar. 31, 2017
Income Tax Disclosure [Abstract]
Income Tax	11. Income Tax Due to the current operating losses, the Company recorded zero income tax expense during the three months ended March 31, 2017 and 2016, respectively. During these periods, the Company’s activities were limited to U.S. federal and state tax jurisdictions, as it does not have any foreign operations. The federal and state effective tax rate is approximately 35%. Due to the Company’s history of cumulative losses, management concluded that, after considering all the available objective evidence, it is not more likely than not that all of the Company’s net deferred tax assets will be realized. Accordingly, the Company’s deferred tax assets, which includes net operating loss, or NOL, carryforwards and tax credits related primarily to research and development continue to be subject to a valuation allowance as of March 31, 2017. The Company will continue to maintain a full valuation allowance until there is sufficient evidence to support recoverability of its deferred tax assets. The Company had unrecognized tax benefit of $1.2 million and $940 thousand at March 31, 2017 and December 31, 2016, respectively. The reversal of the uncertain tax benefits would not affect the effective tax rate to the extent that the Company continues to maintain a full valuation allowance against its deferred tax assets. Unrecognized tax benefits may change during the next 12 months for items that arise in the ordinary course of business. Interest and/or penalties related to income tax matters are recognized as a component of income tax expense. At March 31, 2017 and 2016, there were no accrued interest and penalties related to uncertain tax positions.

Net Loss per Share

Net Loss per Share	3 Months Ended
	Mar. 31, 2017
Earnings Per Share [Abstract]
Net Loss per Share	12. Net Loss per Share Since the Company was in a loss position for all periods presented, diluted net loss per common share is the same as basic net loss per common share for all periods presented, because the inclusion of all potential common shares outstanding would have an anti-dilutive effect. The following weighted-average common stock equivalents were excluded from the calculation of diluted net loss per share for the periods presented, because including them would have an anti-dilutive effect: Three Months Ended March 31, 2017 2016 Options to purchase common stock 7,117,452 6,063,836 Common stock warrants 3,103,262 326,991 Restricted stock units 112,578 — Total 10,333,292 6,390,827

Related Party Transactions

Related Party Transactions	3 Months Ended
	Mar. 31, 2017
Related Party Transactions [Abstract]
Related Party Transactions	13. Related Party Transactions In December 2004, the Company entered into a licensing agreement with the University of Florida Research Foundation, or UFRF, whereby UFRF granted the Company a worldwide exclusive license to certain of UFRF’s patents in exchange for 33,652 shares of common stock and a 1% royalty from sales of products developed and sold by the Company utilizing the licensed patents. In January 2017, the Company entered into a sales consulting agreement with Puissance Capital Management, or PCM, to assist with business development activities in a key market in Asia. PCM is the investment manager of the Puissance Cross-Border Opportunities I LP, a stockholder in the Company. Theodore T. Wang, Ph.D., a member of the Company’s board of directors, is the managing member of the general partners of PCM.

Segment and Geographic Informat

Segment and Geographic Information	3 Months Ended
	Mar. 31, 2017
Segment Reporting [Abstract]
Segment and Geographic Information	14. Segment and Geographic Information The Company has one business activity, which is radiation therapy technology combined with magnetic resonance imaging, and operates in one reportable segment. The Company’s chief operating decision-maker, its chief executive officer, reviews its operating results on an aggregate basis for purposes of allocating resources and evaluating financial performance. Also, the Company does not have segment managers as the Company manages its operations as a single operating segment.

Subsequent Events

Subsequent Events	3 Months Ended
	Mar. 31, 2017
Subsequent Events [Abstract]
Subsequent Events	15. Subsequent Events In April 2017, the Company and CRG executed an amendment to the terms of the CRG Term Loan (see Note 5). In April and May 2017, the Company sold approximately 1.1 million shares of its common stock through its at-the-market offering program. The shares had an average market price of $7.04 per share, resulting in aggregate net proceeds of approximately $7.4 million.

Summary of Significant Accoun21

Summary of Significant Accounting Policies (Policies)	3 Months Ended
	Mar. 31, 2017
Accounting Policies [Abstract]
Basis of Presentation	Basis of Presentation The condensed consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America, or GAAP, and pursuant to the rules and regulation of the Securities and Exchanges Commission, or SEC. The condensed consolidated financial statements include the accounts of ViewRay, Inc. and its wholly-owned subsidiary, ViewRay Technologies, Inc. All inter-company accounts and transactions have been eliminated in consolidation. In the opinion of management, all adjustments, including normal recurring adjustments, considered necessary for a fair presentation of the Company’s unaudited condensed consolidated financial statements have been included. The results of operations for the three months ended March 31, 2017 are not necessarily indicative of the results that may be expected for the year ending December 31, 2017 or any future period. These unaudited condensed consolidated financial statements and notes thereto should be read in conjunction with the audited consolidated financial statements and notes thereto for the year ended December 31, 2016. The significant accounting policies used in preparation of these condensed consolidated financial statements are disclosed in the notes to consolidated financial statements included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2016 filed with the SEC on March 17, 2017, and have not changed significantly since such filing.
Recent Accounting Pronouncements	Recent Accounting Pronouncements In May 2014, the Financial Accounting Standards Board, or FASB, issued Accounting Standards Update, or ASU, No. 2014-09, Revenue from Contracts with Customers (Topic 606) In December 2016, the Company initiated its evaluation of ASU No. 2014-09, including the expected impact on its business processes, systems and controls, and potential differences in the timing and/or method of revenue recognition for its sales contracts. Based on the initial assessment, the Company does not believe the adoption of ASU No. 2014-09 will have a material impact on the amount or timing of its revenue recognition. Due to the nature of the Company’s sales arrangements, product revenue, service revenue and distribution rights revenue are expected to remain substantially unchanged. The Company expects to select a transition method during the first half of 2017, and will continue its evaluation of ASU No. 2014-09 through the date of adoption. In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) In August 2016, the FASB issued ASU No. 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments, Statement of Cash Flows (Topic 230): Restricted Cash, Recently Adopted Accounting Pronouncements In July 2015, the FASB issued ASU No. 2015-11, Simplifying the Measurement of Inventory In March 2016, the FASB issued ASU No. 2016-09, Compensation – Stock Compensation (Topic 718 ): Improvements to Employee Share-Based Payment Accounting

Balance Sheet Components (Table

Balance Sheet Components (Tables)	3 Months Ended
	Mar. 31, 2017
Organization Consolidation And Presentation Of Financial Statements [Abstract]
Schedule of Property and Equipment	Property and equipment consisted of the following (in thousands): March 31, 2017 December 31, 2016 Prototype $ 11,929 $ 6,405 Machinery and equipment 6,027 5,807 Leasehold improvements 4,621 4,621 Furniture and fixtures 368 368 Software 1,028 1,028 Construction in progress — 5,498 Property and equipment, gross 23,973 23,727 Less: accumulated depreciation and amortization (12,620 ) (12,167 ) Property and equipment, net $ 11,353 $ 11,560
Summary of Intangible Assets	Intangible assets consisted of the following (in thousands): March 31, 2017 December 31, 2016 License cost $ 512 $ 512 Patents 104 104 Intangible assets, gross 616 616 Accumulated amortization (524 ) (519 ) Intangible assets, net $ 92 $ 97
Summary of Estimated Future Amortization Expense	At March 31, 2017, the estimated future amortization expense of intangible assets was as follows (in thousands): Year Ending December 31, Estimated Amortization Expense The remainder of 2017 $ 14 2018 19 2019 19 2020 19 2021 10 2022 3 Thereafter 8 Total amortization expense $ 92
Schedule of Accrued Liabilities	Accrued liabilities consisted of the following (in thousands): March 31, 2017 December 31, 2016 Accrued payroll and related benefits $ 4,154 $ 4,274 Accrued accounts payable 940 1,202 Sales tax payable 39 13 Accrued legal, accounting and governance fees 693 509 Other 496 336 Total accrued liabilities $ 6,322 $ 6,334
Schedule of Deferred Revenue	Deferred revenue consisted of the following (in thousands): March 31, 2017 December 31, 2016 Deferred revenue: Product $ 8,550 $ 5,050 Services 1,661 1,561 Distribution rights 3,703 3,822 Total deferred revenue 13,914 10,433 Less: current portion of deferred revenue (10,291 ) (6,515 ) Noncurrent portion of deferred revenue $ 3,623 $ 3,918

Fair Value of Financial Instr23

Fair Value of Financial Instruments (Tables)	3 Months Ended
	Mar. 31, 2017
Fair Value Disclosures [Abstract]
Schedule of Fair Value of Financial Liabilities	The following table sets forth the fair value of the Company’s financial liabilities by level within the fair value hierarchy (in thousands): At March 31, 2017 Level 1 Level 2 Level 3 Total 2017 Placement Warrants Liability $ — $ — $ 11,818 $ 11,818 2016 Placement Warrants Liability — — 9,509 9,509 Total $ — $ — $ 21,327 $ 21,327 At December 31, 2016 Level 1 Level 2 Level 3 Total 2016 Placement Warrants Liability $ — $ — $ 2,723 $ 2,723
Summary of Changes in Fair Value of Level 3 Financial Liabilities	The following table sets forth a summary of the changes in fair value of the Company’s Level 3 financial liabilities (in thousands): Three Months Ended March 31, 2017 Fair value, beginning of period $ 2,723 Issuance of 2017 Placement Warrants 3,373 Change in fair value of Level 3 financial liabilities 15,231 Fair value, end of period $ 21,327

Commitments and Contingencies (

Commitments and Contingencies (Tables)	3 Months Ended
	Mar. 31, 2017
Commitments And Contingencies Disclosure [Abstract]
Schedule of Future Minimum Lease Payments Under Non-cancellable Operating Lease Agreements	At March 31, 2017, the future minimum payments for the operating leases are as follows (in thousands): Year Ending December 31, Future Payments The remainder of 2017 $ 860 2018 1,188 2019 1,079 Total future minimum payments $ 3,127

Warrants (Tables)

Warrants (Tables)	3 Months Ended
	Mar. 31, 2017
Equity [Abstract]
Summary of Assumptions using Black- Scholes Option Pricing Model to estimate fair value	The fair value of the 2016 Placement Warrants of $9.5 million was estimated using the Black-Scholes option pricing model and the following weighted-average assumptions: March 31, 2017 2016 Placement Warrant: Expected term (in years) 6.4 Expected volatility 67.9% Risk-free interest rate 2.2% Expected dividend yield 0% The fair value of the 2017 Placement Warrants of $11.8 million was estimated using the Black-Scholes option pricing model and the following weighted-average assumptions: March 31, 2017 2017 Placement Warrant: Expected term (in years) 6.8 Expected volatility 67.9% Risk-free interest rate 2.2% Expected dividend yield 0%

Stock-Based Compensation (Table

Stock-Based Compensation (Tables)	3 Months Ended
	Mar. 31, 2017
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
Summary of Company's Stock Option Activity and Related Information	A summary of the Company’s stock option activity and related information is as follows: Options Outstanding Shares Available for Grant Number of Stock Options Outstanding Weighted- Average Exercise Price Weighted- Average Remaining Contractual (Years) Aggregate Intrinsic Value (In thousands) Balance at December 31, 2016 2,168,391 6,127,291 $ 2.60 7.3 $ 7,800 Additional options authorized 1,743,247 — Granted (2,042,487 ) 2,042,487 5.04 Exercised — (559 ) 3.00 Cancelled 7,361 (7,361 ) 4.66 Balance at March 31, 2017 1,876,512 8,161,858 3.21 7.8 $ 43,281 Vested and exercisable at March 31, 2017 3,906,790 $ 1.77 6.3 $ 26,345 Vested and expected to vest at March 31, 2017 7,800,566 $ 3.15 7.7 $ 41,818
Schedule of Weighted-Average Assumptions Used in Black-Scholes Option-Pricing Model to Estimate Fair Value of Employee Stock Option at Grant Date	The fair value of employee stock option was estimated at the date of grant using a Black-Scholes option-pricing model with the following weighted-average assumptions: Three Months Ended March 31, 2017 2016 Expected term (in years) 6.0 6.0 Expected volatility% 67.1% 69.8% Risk-free interest rate% 2.1% 1.5% Expected dividend yield% 0.0% 0.0%
Summary of Stock-Based Compensation Expense	Total stock-based compensation expense recognized in the Company’s condensed consolidated statements of operations is classified as follows (in thousands): Three Months Ended March 31, 2017 2016 Research and development $ 165 $ 121 Selling and marketing 51 24 General and administrative 553 411 Total stock-based compensation expense $ 769 $ 556

Net Loss per Share (Tables)

Net Loss per Share (Tables)	3 Months Ended
	Mar. 31, 2017
Earnings Per Share [Abstract]
Anti-Dilutive Securities Excluded from Calculation of Diluted Net Loss Per Share	Since the Company was in a loss position for all periods presented, diluted net loss per common share is the same as basic net loss per common share for all periods presented, because the inclusion of all potential common shares outstanding would have an anti-dilutive effect. The following weighted-average common stock equivalents were excluded from the calculation of diluted net loss per share for the periods presented, because including them would have an anti-dilutive effect: Three Months Ended March 31, 2017 2016 Options to purchase common stock 7,117,452 6,063,836 Common stock warrants 3,103,262 326,991 Restricted stock units 112,578 — Total 10,333,292 6,390,827

Background and Organization - A

Background and Organization - Additional Information (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016	Dec. 31, 2016	Dec. 31, 2015
Background And Organization [Line Items]
Net loss from operations	$ 27,961	$ 13,368
Net cash used from operations	11,964	10,490
Cash and cash equivalents	49,301	$ 5,729	$ 14,198	$ 20,667
2017 Private Placement Common Stock Warrants
Background And Organization [Line Items]
Proceed from private placement and equity issuances, gross	$ 48,000

Summary of Significant Accoun29

Summary of Significant Accounting Policies - Additional Information (Detail) $ in Thousands	Mar. 31, 2017USD ($)
Accounting Policies [Abstract]
Operating leases future minimum payments due	$ 3,127

Balance Sheet Components - Sche

Balance Sheet Components - Schedule of Property and Equipment (Detail) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Property Plant And Equipment [Line Items]
Property and equipment, gross	$ 23,973	$ 23,727
Less: accumulated depreciation and amortization	(12,620)	(12,167)
Property and equipment, net	11,353	11,560
Prototype
Property Plant And Equipment [Line Items]
Property and equipment, gross	11,929	6,405
Machinery and Equipment
Property Plant And Equipment [Line Items]
Property and equipment, gross	6,027	5,807
Leasehold Improvements
Property Plant And Equipment [Line Items]
Property and equipment, gross	4,621	4,621
Furniture and Fixtures
Property Plant And Equipment [Line Items]
Property and equipment, gross	368	368
Software
Property Plant And Equipment [Line Items]
Property and equipment, gross	$ 1,028	1,028
Construction In Progress
Property Plant And Equipment [Line Items]
Property and equipment, gross		$ 5,498

Balance Sheet Components - Addi

Balance Sheet Components - Additional Information (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Balance Sheet Related Disclosures [Abstract]
Depreciation and amortization	$ 462	$ 326
Amortization of intangible assets	$ 5	$ 46

Balance Sheet Components - Summ

Balance Sheet Components - Summary of Intangible Assets (Detail) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Finite Lived Intangible Assets [Line Items]
Intangible assets, gross	$ 616	$ 616
Accumulated amortization	(524)	(519)
Intangible assets, net	92	97
License Cost
Finite Lived Intangible Assets [Line Items]
Intangible assets, gross	512	512
Patents
Finite Lived Intangible Assets [Line Items]
Intangible assets, gross	$ 104	$ 104

Balance Sheet Components - Su33

Balance Sheet Components - Summary of Estimated Future Amortization Expense (Detail) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Balance Sheet Related Disclosures [Abstract]
The remainder of 2017	$ 14
2,018	19
2,019	19
2,020	19
2,021	10
2,022	3
Thereafter	8
Intangible assets, net	$ 92	$ 97

Balance Sheet Components - Sc34

Balance Sheet Components - Schedule of Accrued Liabilities (Detail) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Payables And Accruals [Abstract]
Accrued payroll and related benefits	$ 4,154	$ 4,274
Accrued accounts payable	940	1,202
Sales tax payable	39	13
Accrued legal, accounting and governance fees	693	509
Other	496	336
Total accrued liabilities	$ 6,322	$ 6,334

Balance Sheet Components - Sc35

Balance Sheet Components - Schedule of Deferred Revenue (Detail) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Deferred Revenue [Line Items]
Total deferred revenue	$ 13,914	$ 10,433
Less: current portion of deferred revenue	(10,291)	(6,515)
Noncurrent portion of deferred revenue	3,623	3,918
Product
Deferred Revenue [Line Items]
Total deferred revenue	8,550	5,050
Services
Deferred Revenue [Line Items]
Total deferred revenue	1,661	1,561
Distribution Rights
Deferred Revenue [Line Items]
Total deferred revenue	$ 3,703	$ 3,822

Fair Value of Financial Instr36

Fair Value of Financial Instruments - Additional Information (Detail) $ in Thousands	3 Months Ended
	Mar. 31, 2017USD ($)
Fair Value Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items]
Change in fair value of Level 3 financial liabilities	$ 15,231
2016 and 2017 Placement Warrants Liability
Fair Value Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items]
Change in fair value of Level 3 financial liabilities	$ 15,231

Fair Value of Financial Instr37

Fair Value of Financial Instruments - Schedule of Fair Value of Financial Liabilities (Detail) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Placement Warrants Liability	$ 21,327	$ 2,723
2017 Placement Warrants Liability
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Placement Warrants Liability	11,818
2016 Placement Warrants Liability
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Placement Warrants Liability	9,509	2,723
Level 3
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Placement Warrants Liability	21,327
Level 3 | 2017 Placement Warrants Liability
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Placement Warrants Liability	11,818
Level 3 | 2016 Placement Warrants Liability
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Placement Warrants Liability	$ 9,509	$ 2,723

Fair Value of Financial Instr38

Fair Value of Financial Instruments - Summary of Changes in Fair Value of Level 3 Financial Liabilities (Detail) $ in Thousands	3 Months Ended
	Mar. 31, 2017USD ($)
Fair Value Disclosures [Abstract]
Fair value, beginning of period	$ 2,723
Issuance of 2017 Placement Warrants	3,373
Change in fair value of Level 3 financial liabilities	15,231
Fair value, end of period	$ 21,327

Debt - Additional Information (

Debt - Additional Information (Detail) - CRG Term Loan - USD ($)	Jun. 26, 2015	Apr. 30, 2017	May 31, 2016	Mar. 31, 2017	Mar. 31, 2016
Debt Instrument [Line Items]
Maximum borrowing capacity	$ 50,000,000
Current borrowing capacity	30,000,000
Remaining borrowing capacity	20,000,000
Proceeds from term loan	40,000,000
Post Money Valuation Minimum Amount	120,000,000
Debt drawn	$ 30,000,000
Debt maturity date				Jun. 26, 2020
Frequency of periodic payment				Quarterly
Line of credit facility, covenant terms				In March 2016, the Company and CRG executed an amendment to the original terms of the CRG Term Loan such that, with regard to the conditions for borrowing the remaining $20.0 million available under the CRG Term Loan, the Company may, at its election, draw down (i) an amount of either $10.0 million or $15.0 million in up to two advances upon achievement of a minimum of $15.0 million of aggregate product and service revenue during any consecutive 12 month period ending on or before March 31, 2016 and (ii) an additional $5.0 million (or $10.0 million, if the previous draw made was only in an amount of $10.0 million) upon achievement of a minimum of $25.0 million of aggregate product and service revenue during any consecutive 12 month period ending on or before December 31, 2016 and upon execution of the first sales contract of the Company’s second generation product.
Proceeds from draw down of debt			$ 15,000,000
Amount outstanding under the agreement				$ 45,000,000
Facility fee	7.00%
Existing capacity extended expiration date				Jun. 30, 2017
Additional capacity extended expiration date				Sep. 30, 2017
Subsequent Event
Debt Instrument [Line Items]
Current borrowing capacity		$ 5,000,000
Additional borrowing capacity		$ 15,000,000
Subsequent Event | Minimum
Debt Instrument [Line Items]
Increase in facility fee		1.50%
Subsequent Event | Maximum
Debt Instrument [Line Items]
Increase in facility fee		1.75%
Milestone One
Debt Instrument [Line Items]
Remaining borrowing capacity					$ 10,000,000
Required minimum gross revenue					15,000,000
Debt drawn					10,000,000
Milestone Two
Debt Instrument [Line Items]
Remaining borrowing capacity					5,000,000
Required minimum gross revenue					25,000,000
Debt drawn					$ 15,000,000
First 12 months
Debt Instrument [Line Items]
Debt instrument cash interest rate percentage	12.50%
Debt instrument cash interest rate percentage	8.00%
Deferred payment in-kind interest rate	4.50%
Prepayment penalty	3.00%
After Year 1 but on or Before Year 2
Debt Instrument [Line Items]
Debt instrument cash interest rate percentage	12.50%
Debt instrument cash interest rate percentage	8.00%
Deferred payment in-kind interest rate	4.50%
Prepayment penalty	2.00%
After Year 2 but on or Before Year 3
Debt Instrument [Line Items]
Debt instrument cash interest rate percentage	12.50%
Prepayment penalty	1.00%
After Year 3 Thereafter Until Maturity
Debt Instrument [Line Items]
Prepayment penalty	0.00%
MRIdian System
Debt Instrument [Line Items]
Required minimum gross revenue	$ 25,000,000

Commitments and Contingencies -

Commitments and Contingencies - Schedule of Future Minimum Lease Payments Under Non-cancellable Operating Lease Agreements (Detail) $ in Thousands	Mar. 31, 2017USD ($)
Operating Leases Future Minimum Payments Due [Abstract]
The remainder of 2017	$ 860
2,018	1,188
2,019	1,079
Total future minimum payments	$ 3,127

Commitments and Contingencies41

Commitments and Contingencies - Additional Information (Detail) - USD ($)	Mar. 31, 2017	Dec. 31, 2016
Commitments And Contingencies Disclosure [Abstract]
Purchase commitments	$ 0	$ 0

Distribution Agreement - Additi

Distribution Agreement - Additional Information (Detail) $ in Thousands	1 Months Ended	3 Months Ended
	Dec. 31, 2014USD ($)Installment	Mar. 31, 2017USD ($)	Dec. 31, 2016USD ($)	Aug. 31, 2016USD ($)	Dec. 31, 2015USD ($)
Marketing Agreement [Line Items]
Customer deposits		$ 21,400	$ 19,400
Distribution fee reclassified to deferred revenue		13,914	10,433
Distribution rights revenue		119
Distribution Rights
Marketing Agreement [Line Items]
Distribution fee reclassified to deferred revenue		$ 3,703	$ 3,822
Itochu Corporation Agreement
Marketing Agreement [Line Items]
Distribution agreement term	10 years
Distribution fees	$ 4,000
Number of installments | Installment	3
Remaining term of distribution agreement		8 years 6 months
Distribution rights revenue		$ 119
Itochu Corporation Agreement | Distribution Rights
Marketing Agreement [Line Items]
Distribution fee reclassified to deferred revenue		$ 4,000
Itochu Corporation Agreement | First Installment
Marketing Agreement [Line Items]
Distribution fees	$ 1,000
Customer deposits	1,000
Itochu Corporation Agreement | Second Installment
Marketing Agreement [Line Items]
Distribution fees	1,000
Customer deposits					$ 1,000
Itochu Corporation Agreement | Third Installment
Marketing Agreement [Line Items]
Distribution fees	$ 2,000
Customer deposits				$ 2,000

Equity Financing - Additional I

Equity Financing - Additional Information (Detail) - USD ($)	1 Months Ended				3 Months Ended
	Mar. 31, 2017	Jan. 31, 2017	Sep. 30, 2016	Aug. 31, 2016	Mar. 31, 2017
2016 Placement Warrants Liability
Subsidiary Sale Of Stock [Line Items]
Private placement, common shares			4,602,506
Sales of share common stock, per share			$ 2.95
Warrants to purchase common stock, shares			1,380,745	1,380,745
Warrant exercise price			$ 2.95	$ 2.95
Proceed from private placement and equity issuances, gross			$ 13,800,000		$ 13,800,000
Warrant expiration period			7 years	7 years
2017 Placement Warrant
Subsidiary Sale Of Stock [Line Items]
Warrants to purchase common stock, shares		1,720,512
Warrant exercise price		$ 3.17
Proceed from private placement and equity issuances, gross		$ 26,100,000
Warrant expiration period		7 years
Stock issued during period		10,323,101
Warrant exercisable period		6 months
2017 Placement Warrant | Directors and/or Officers
Subsidiary Sale Of Stock [Line Items]
Warrant exercise price		$ 3.17
2017 Placement Warrant | Common Stock
Subsidiary Sale Of Stock [Line Items]
Stock issued during period		8,602,589
At The Market Offering Program [Member]
Subsidiary Sale Of Stock [Line Items]
Compensation percentage pertaining to gross sales price per share sold					3.00%
Average market price per share	$ 5.64				$ 5.64
Aggregate gross proceeds from issuance of common stock	$ 21,900,000				$ 21,921,000
At The Market Offering Program [Member] | Maximum
Subsidiary Sale Of Stock [Line Items]
Maximum aggregate offering price		$ 75,000,000
Maximum common stock saleable value		$ 25,000,000
At The Market Offering Program [Member] | Common Stock
Subsidiary Sale Of Stock [Line Items]
Stock issued during period	3,884,234

Warrants - Additional Informati

Warrants - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands	Aug. 22, 2016	Jan. 31, 2017	Sep. 30, 2016	Aug. 31, 2016	Aug. 31, 2015	Jul. 31, 2015	Mar. 31, 2017	Dec. 31, 2016
Convertible Preferred Stock Warrants [Line Items]
Loss related to change in fair value							$ 15,231
Fair value of warrants							21,327	$ 2,723
2015 Placement Common Stock Warrants | Insiders
Convertible Preferred Stock Warrants [Line Items]
Warrants issued					198,760	198,760
Exercise price					$ 5	$ 5
Common stock warrants, expiry term					5 years	5 years
2016 Placement Warrant
Convertible Preferred Stock Warrants [Line Items]
Warrants issued			1,380,745	1,380,745
Exercise price			$ 2.95	$ 2.95
Common stock warrants, expiry term			7 years	7 years
Proceed from private placement and equity issuances, gross			$ 13,800				$ 13,800
Fair value of warrants upon issuance under Private Placement	$ 2,700
Expected term (in years)	7 years						6 years 4 months 24 days
Expected volatility	61.60%						67.90%
Risk-free interest rate	1.40%						2.20%
Expected dividend yield	0.00%						0.00%
Loss related to change in fair value							$ 6,800
Fair value of warrants							$ 9,500
2017 Placement Warrants Liability
Convertible Preferred Stock Warrants [Line Items]
Warrants issued		1,720,512
Exercise price		$ 3.17
Common stock warrants, expiry term		7 years
Proceed from private placement and equity issuances, gross		$ 26,100
Fair value of warrants upon issuance under Private Placement		$ 3,400
Expected term (in years)		7 years					6 years 9 months 18 days
Expected volatility		62.90%					67.90%
Risk-free interest rate		2.20%					2.20%
Expected dividend yield		0.00%					0.00%
Loss related to change in fair value							$ 8,400
Fair value of warrants							$ 11,800
Warrants exercisable term		6 months
Common Stock Warrant
Convertible Preferred Stock Warrants [Line Items]
Warrants issued							128,231	128,231
Exercise price							$ 5.84	$ 5.84
Common stock warrants, expiration date							Dec. 16, 2023

Warrants - Summary of Assumptio

Warrants - Summary of Assumptions to Use Option Pricing Model (Detail)	Aug. 22, 2016	Jan. 31, 2017	Mar. 31, 2017
2016 Placement Warrant
Fair Value Inputs Liabilities Quantitative Information [Line Items]
Expected term (in years)	7 years		6 years 4 months 24 days
Expected volatility	61.60%		67.90%
Risk-free interest rate	1.40%		2.20%
Expected dividend yield	0.00%		0.00%
2017 Placement Warrant
Fair Value Inputs Liabilities Quantitative Information [Line Items]
Expected term (in years)		7 years	6 years 9 months 18 days
Expected volatility		62.90%	67.90%
Risk-free interest rate		2.20%	2.20%
Expected dividend yield		0.00%	0.00%

Stock-Based Compensation - Summ

Stock-Based Compensation - Summary of Company's Stock Option Activity and Related Information (Detail) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2017	Dec. 31, 2016
Shares Available for Grant
Shares Available for Grant, Beginning balance	2,168,391
Shares Available for Grant, Additional options authorized	1,743,247
Shares Available for Grant, Granted	(2,042,487)
Shares Available for Grant, Cancelled	7,361
Shares Available for Grant, Ending balance	1,876,512	2,168,391
Number of Stock Options Outstanding
Number of Stock Options Outstanding, Beginning balance	6,127,291
Number of Stock Options Outstanding, Granted	2,042,487
Number of Stock Options Outstanding, Exercised	(559)
Number of Stock Options Outstanding, Cancelled	(7,361)
Number of Stock Options Outstanding, Ending balance	8,161,858	6,127,291
Number of Stock Options Outstanding, Vested and exercisable	3,906,790
Number of Stock Options Outstanding, Vested and expected to vest	7,800,566
Weighted- Average Exercise Price
Weighted- Average Exercise Price, Beginning balance	$ 2.60
Weighted- Average Exercise Price, Granted	5.04
Weighted- Average Exercise Price, Exercised	3
Weighted- Average Exercise Price, Cancelled	4.66
Weighted- Average Exercise Price, Ending balance	3.21	$ 2.60
Weighted- Average Exercise Price, Vested and exercisable	1.77
Weighted- Average Exercise Price, Vested and expected to vest	$ 3.15
Weighted- Average Remaining Contractual Life (Years)
Options Outstanding, Weighted- Average Remaining Contractual Life (Years)	7 years 9 months 18 days	7 years 3 months 18 days
Weighted- Average Remaining Contractual Life (Years), Vested and exercisable	6 years 3 months 18 days
Weighted- Average Remaining Contractual Life (Years), Vested and expected to vest	7 years 8 months 12 days
Aggregate Intrinsic Value
Aggregate Intrinsic Value	$ 43,281	$ 7,800
Aggregate Intrinsic Value, Vested and exercisable	26,345
Aggregate Intrinsic Value, Vested and expected to vest	$ 41,818

Stock-Based Compensation - Addi

Stock-Based Compensation - Additional Information (Detail) - USD ($)	1 Months Ended		3 Months Ended
	Dec. 31, 2016	Sep. 30, 2016	Mar. 31, 2017	Mar. 31, 2016
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Grant date fair value of options vested, per share			$ 3.10	$ 3.06
Grant date fair value of options vested			$ 558,000	$ 444,000
Unrecognized compensation cost			$ 10,300,000
Weighted average period for recognition of compensation costs			3 years 3 months 18 days
Stock based compensation expenses			$ 769,000	556,000
Stock-based compensation expense capitalized			$ 0	$ 0
Restricted Stock Units (RSUs)
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
RSUs Granted			0
Grant date fair value of RSUs vested, per share		$ 3.58
Stock based compensation expenses			$ 0
Restricted Stock Units (RSUs) | Board of Directors
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
RSUs Granted		112,578
Restricted Stock Units (RSUs) | Executive Officers
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
RSUs Granted	18,017
RSUs Released			18,017
Restricted Stock Units (RSUs) | Consultant
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
RSUs Granted	20,645

Stock-Based Compensation - Sche

Stock-Based Compensation - Schedule of Weighted-Average Assumptions Used in Black-Scholes Option-Pricing Model to Estimate Fair Value of Employee Stock Option at Grant Date (Detail)	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
Expected term (in years)	6 years	6 years
Expected volatility%	67.10%	69.80%
Risk-free interest rate%	2.10%	1.50%
Expected dividend yield%	0.00%	0.00%

Stock-Based Compensation - Su49

Stock-Based Compensation - Summary of Stock-Based Compensation Expense (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Stock-based compensation expense	$ 769	$ 556
Research and Development
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Stock-based compensation expense	165	121
Selling and Marketing
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Stock-based compensation expense	51	24
General and Administrative
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Stock-based compensation expense	$ 553	$ 411

Income Tax - Additional Informa

Income Tax - Additional Information (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016	Dec. 31, 2016
Income Tax Disclosure [Abstract]
Income tax expense	$ 0	$ 0
Federal effective tax rate	35.00%	35.00%
State effective tax rate	35.00%	35.00%
Unrecognized tax benefits	$ 1,200		$ 940
Accrued interest and penalties related to uncertain tax positions	$ 0	$ 0

Net Loss Per Share - Anti-Dilut

Net Loss Per Share - Anti-Dilutive Securities Excluded from Calculation of Diluted Net Loss Per Share (Detail) - shares	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Anti-dilutive securities excluded from calculation of diluted net loss per share	10,333,292	6,390,827
Options To Purchase Common Stock
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Anti-dilutive securities excluded from calculation of diluted net loss per share	7,117,452	6,063,836
Restricted Stock Units (RSUs)
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Anti-dilutive securities excluded from calculation of diluted net loss per share	112,578
Common Stock Warrant
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Anti-dilutive securities excluded from calculation of diluted net loss per share	3,103,262	326,991

Related Party Transactions - Ad

Related Party Transactions - Additional Information (Detail) - USD ($) $ in Millions	1 Months Ended
	Jan. 31, 2017	Dec. 31, 2014	Dec. 31, 2004
University Of Florida Research Foundation | Licensing Agreements
Related Party Transaction [Line Items]
Common Stock granted in exchange for licensing		33,652
Percentage of royalty payment based on sale			1.00%
Puissance Capital Management | Sales Consulting Agreement [Member]
Related Party Transaction [Line Items]
Related party, agreement term	1 year
Related party, total consideration	$ 1.3

Segment and Geographic Inform53

Segment and Geographic Information - Additional Information (Detail)	3 Months Ended
	Mar. 31, 2017Segment
Segment Reporting [Abstract]
Number of reportable segments	1

Subsequent Events - Additional

Subsequent Events - Additional Information (Detail) - At The Market Offering Program [Member] - USD ($) $ / shares in Units, $ in Thousands	1 Months Ended	2 Months Ended	3 Months Ended
	Mar. 31, 2017	May 31, 2017	Mar. 31, 2017
Subsequent Event [Line Items]
Average market price per share	$ 5.64		$ 5.64
Aggregate net proceeds from issuance of common stock	$ 21,900		$ 21,921
Subsequent Event
Subsequent Event [Line Items]
Average market price per share		$ 7.04
Aggregate net proceeds from issuance of common stock		$ 7,400
Common Stock
Subsequent Event [Line Items]
Stock issued during period	3,884,234
Common Stock | Subsequent Event
Subsequent Event [Line Items]
Stock issued during period		1,100,000