Senseonics (SENS) 10-Q 9 Aug 16 2016 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2016	Jul. 31, 2016
Document and Entity Information
Entity Registrant Name	Senseonics Holdings, Inc.
Entity Central Index Key	1,616,543
Entity Current Reporting Status	Yes
Current Fiscal Year End Date	--12-31
Entity Filer Category	Non-accelerated Filer
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	Q2
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Jun. 30, 2016
Entity Common Stock, Shares Outstanding		93,389,594

Condensed Consolidated Balance

Condensed Consolidated Balance Sheet - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Current assets:
Cash and cash equivalents	$ 36,190	$ 3,939
Prepaid expenses and other current assets	911	1,025
Inventory	324
Total current assets	37,425	4,964
Deposits and other assets	648	217
Property and equipment, net	611	311
Total assets	38,684	5,492
Current liabilities:
Accounts payable	5,092	1,252
Accrued expenses and other current liabilities	4,475	3,694
Note payable, current portion		2,389
Total current liabilities	9,567	7,335
Notes payable, net of discount	14,619	7,499
Accrued interest		327
Deferred rent	40	28
Total liabilities	24,226	15,189
Commitments and contingencies (Note 5)
Stockholders' equity (deficit):
Preferred stock, $0.001 par value per share; 5,000,000 and 0 shares authorized, no shares issued and outstanding as of June 30, 2016 and December 31, 2015	0	0
Common stock, $0.001 par value per share; 250,000,000 shares authorized, 93,368,011 and 75,760,061 shares issued and outstanding as of June 30, 2016 and December 31, 2015	93	76
Additional paid-in capital	198,235	151,019
Accumulated deficit	(183,870)	(160,792)
Total stockholders' equity (deficit)	14,458	(9,697)
Total liabilities and stockholders' equity (deficit)	$ 38,684	$ 5,492

Condensed Consolidated Balance3

Condensed Consolidated Balance Sheet (Parentheticals) - $ / shares	Jun. 30, 2016	Dec. 31, 2015
Stockholders' Equity, par value and other disclosures
Preferred stock, par value per share (in dollars per share)	$ 0.001	$ 0.001
Preferred stock, shares authorized	5,000,000	0
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value per share (in dollars per share)	$ 0.001	$ 0.001
Common stock, shares authorized	250,000,000	250,000,000
Common stock, shares issued	93,368,011	75,760,061
Common stock, shares outstanding	93,368,011	75,760,061

Unaudited Condensed Consolidate

Unaudited Condensed Consolidated Statement of Operations - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Unaudited Condensed Consolidated Statement of Operations
Revenue	$ 19	$ 23	$ 19	$ 38
Cost of sales	34		34
Gross profit	(15)	23	(15)	38
Expenses:
Sales and marketing expenses	635	258	1,268	590
Research and development expenses	7,539	5,195	13,955	8,860
General and administrative expenses	3,361	1,478	7,241	2,895
Operating loss	(11,550)	(6,908)	(22,479)	(12,307)
Other income (expense), net:
Interest income	31	2	34	3
Interest expense	(268)	(265)	(544)	(568)
Other expense	(74)	(14)	(89)	(5)
Net loss	$ (11,861)	$ (7,185)	$ (23,078)	$ (12,877)
Basic and diluted net loss per common share	$ (0.13)	$ (3.68)	$ (0.27)	$ (6.63)
Basic and diluted weighted-average shares outstanding (in shares)	92,742,097	1,950,399	85,033,493	1,942,287

Unaudited Condensed Consolidat5

Unaudited Condensed Consolidated Statement of Cash Flows - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
Cash flows from operating activities
Net loss	$ (23,078)	$ (12,877)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation expense	63	45
Non-cash interest expense (debt discount and deferred costs)	17	27
Change in fair value of derivative liabilities	304	13
Stock-based compensation expense	1,154	525
Changes in assets and liabilities:
Prepaid expenses and other current assets	114	(2)
Inventory	(324)
Deposits and other assets	68
Accounts payable	3,839	(16)
Accrued expenses and other current liabilities	781	1,537
Accrued interest	(327)	194
Deferred rent	12	5
Net cash used in operating activities	(17,377)	(10,549)
Cash flows from investing activities
Capital expenditures	(362)	(61)
Net cash used in investing activities	(362)	(61)
Cash flows from financing activities
Proceeds from issuance of common stock, net of issuance costs	45,738
Proceeds from exercise of stock options	36	19
Proceeds from notes payable	17,500
Repayments of notes payable	(13,284)
Net cash provided by financing activities	49,990	19
Net increase (decrease) in cash and cash equivalents	32,251	(10,591)
Cash and cash equivalents, at beginning of period	3,939	18,923
Cash and cash equivalents, at end of period	$ 36,190	$ 8,332

Organization

Organization	6 Months Ended
	Jun. 30, 2016
Organization
Organization	1. Organization Senseonics Holdings, Inc. (the “Company”), a Delaware corporation, is a medical technology company focused on the design, development and commercialization of glucose monitoring systems to improve the lives of people with diabetes by enhancing their ability to manage their disease with relative ease and accuracy. ASN Technologies, Inc. (“ASN”) was incorporated in Nevada on June 26, 2014. On December 4, 2015, ASN reincorporated in Delaware and changed its name to Senseonics Holdings, Inc. On December 7, 2015, Senseonics Holdings, Inc. acquired 100% of the outstanding capital stock of Senseonics, Incorporated (the "Acquisition"). Senseonics, Incorporated was originally incorporated on October 30, 1996 and commenced operations on January 15, 1997. Senseonics Holdings and its wholly-owned subsidiary Senseonics, Incorporated are hereinafter referred to as the “Company” unless the context requires otherwise. Recent Significant Transaction On June 30, 2016, the Company entered into an Amended and Restated Loan and Security Agreement with Oxford Finance LLC (“Oxford”) and Silicon Valley Bank (“SVB”) to potentially borrow up to an aggregate principal amount of $30.0 million. Under the terms of the agreement, Oxford and SVB have initially provided an aggregate of $15 million to the Company, of which the Company used $11 million to retire existing loans with Oxford, including a final payment fee of $1 million. The agreement also permits the Company to borrow up to an additional $15 million upon the achievement of specified milestones, and the funding of specific tranches under the agreement, through the end of 2017. The agreement provides for monthly payments of interest only for a period of 12 months, followed by an amortization period of 36 months. However, if the Company satisfies certain milestones and borrows an additional $10 million under the agreement, the interest only period will be extended by an additional six months and the amortization period will be 30 months. For additional information, see Note 6.

Liquidity

Liquidity	6 Months Ended
	Jun. 30, 2016
Liquidity
Liquidity	2. Liquidity The Company’s operations are subject to certain risks and uncertainties including, among others, current and potential competitors with greater resources, lack of operating history and uncertainty of future profitability. Since inception, the Company has incurred substantial operating losses, principally from expenses associated with the Company’s research and development programs. The Company has not generated significant revenues from the sale of products and its ability to generate revenue and achieve profitability largely depends on the Company’s ability, alone or with others, to complete the development of its products or product candidates, and to obtain necessary regulatory approvals for the manufacture, marketing and sales of those products. These activities, including planned significant research and development efforts, will require significant uses of working capital throughout 2016 and beyond. On March 23, 2016, the Company effected the initial closing its public offering of 15,800,000 shares of its common stock at a price to the public of $2.85 per share (the “Offering”). Additionally, the Company closed on the partial exercise of the underwriters’ option to purchase additional shares on April 5, 2016. The Company received aggregate net proceeds from the Offering of $44.8 million (after deducting underwriters’ discounts and commissions of $2.7 million and additional offering related costs of $1.4 million). On June 30, 2016, the Company entered into Amended and Restated Loan and Security Agreement with Oxford and SVB to potentially borrow up to an aggregate principal amount of $30.0 million. Management has concluded that, based on its current operating plans, the receipt of these funds and future borrowing upon the achievement of specified milestones, its existing cash and cash equivalents will be sufficient to meet the Company’s anticipated operating needs through the third quarter 2017. Accordingly, management has concluded that the doubt about the Company’s ability to continue as a going concern through December 31, 2016 that existed at December 31, 2015 has been alleviated. Historically, the Company has financed its operating activities through the sale of equity and equity linked securities and the issuance of debt. Although the Company began generating revenue from product sales of Eversense, its continuous glucose monitoring system, in June 2016, the Company does not expect product revenues to be sufficient to satisfy its operating needs for several years, if ever. Accordingly, t he Company plans to continue financing its operations with external capital for the foreseeable future. However, the Company may not be able to raise additional funds on acceptable terms, or at all. If the Company is unable to secure sufficient capital to fund its research and development and other operating activities, the Company may be required to delay or suspend operations, enter into collaboration agreements with partners that could require the Company to share commercial rights to its products to a greater extent or at earlier stages in the product development process than is currently intended, merge or consolidate with other entities, or liquidate.

Summary of Significant Accounti

Summary of Significant Accounting Policies	6 Months Ended
	Jun. 30, 2016
Summary of Significant Accounting Policies
Summary of Significant Accounting Policies	3. Summary of Significant Accounting Policies Basis of Accounting The accompanying unaudited interim condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). In the Company’s opinion, the accompanying unaudited interim condensed consolidated financial statements include all adjustments, consisting of normal recurring adjustments, which are necessary to present fairly its financial position, results of operations, and cash flows. The consolidated balance sheet at December 31, 2015 , has been derived from audited financial statements as of that date. The interim condensed consolidated results of operations are not necessarily indicative of the results that may occur for the full fiscal year. Certain information and footnote disclosure normally included in financial statements prepared in accordance with U.S. GAAP have been omitted pursuant to instructions, rules, and regulations prescribed by the SEC. The Company believes that the disclosures provided herein are adequate to make the information presented not misleading when these unaudited interim condensed consolidated financial statements are read in conjunction with the audited financial statements and notes previously distributed in the Company’s Annual Report on Form 10-K for the year ended December 31, 2015. Reclassification Sales and marketing expenses of approximately $258,000 and $590,000 included in general and administrative expenses for the three and six months ended June 30, 2015, respectively, have been reclassified to sales and marketing expenses to conform to 2016 presentation. Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the reported amounts of revenues and expenses during the reporting period. In the accompanying unaudited condensed consolidated financial statements, estimates are used for, but not limited to, valuation of common and preferred stock, stock ‑based compensation, the fair value of warrant liabilities and beneficial conversion features in convertible securities, recoverability of long ‑lived assets, deferred taxes and valuation allowances, depreciable lives of property and equipment, and estimated accruals for preclinical study costs, which are accrued based on estimates of work performed under contracts. Actual results could differ from those estimates; however management does not believe that such differences would be material. Segment Information Operating segments are defined as components of an enterprise about which separate discrete financial information is available for evaluation by the chief operating decision ‑maker, or decision ‑making group, in deciding how to allocate resources and in accessing performance. The Company views its operations and manages its business in one segment, glucose monitoring systems. Inventory Inventory is valued at the lower of cost to purchase or the market value of such inventory. Cost is determined using the standard cost method that approximates first in, first out. Market is determined by the lower of replacement cost or net realizable value. The Company periodically reviews inventory to determine if a write down is necessary for inventory that has become obsolete, inventory that has a cost basis less than net realizable value, and inventory in excess of future demand taking into consideration the product shelf life. Revenue Recognition Revenue is generated from sales of sensor kits, transmitter kits, and related supplies under agreements for research and third-party distributors that resell the product to customers. The Company is paid for its sales directly by third-party distributors, regardless of whether or not the distributors resell the products to their customers. The Company recognizes product sales revenue when all of the following criteria are met:  persuasive evidence of an arrangement exists  delivery has occurred  the price is fixed or determinable; and  collectability is probable. The Company offers no rights of return and has no significant post-delivery obligations and therefore, the above criteria are generally met as products are shipped to third-party distributors. Property and Equipment Property and equipment are stated at historical cost and depreciated on a straight ‑line basis over the estimated useful lives, generally five years. Equipment under capital leases is depreciated on a straight ‑line basis over the lesser of its estimated useful life or the lease term. Leasehold improvements are depreciated over the shorter of the remaining lease term or useful lives of the assets. Upon disposition of the assets, the costs and related accumulated depreciation are removed from the accounts and any resulting gain or loss is included in the results of operations. Repairs and maintenance costs are included as expense in the accompanying statement of operations. Management reviews property and equipment for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of the long ‑lived asset is measured by a comparison of the carrying amount of the asset to future undiscounted net cash flows expected to be generated by the asset. If the undiscounted cash flows are less than the carrying amount, the impairment to be recognized is measured by the amount by which the carrying amount of the assets exceeds the estimated fair value of the assets. Management did not identify any indicators of impairment through June 30, 2016 . Research and Development Costs Research and development costs are expensed as incurred. Research and development expenses include costs related to employee compensation, preclinical studies and clinical trials, supplies, outsource testing, consulting and depreciation and other facilities ‑related expenses. Stock ‑Based Compensation The Company recognizes the cost of employee services received in exchange for awards of equity instruments, such as stock options, based on the fair value of those awards at the date of grant. The estimated fair value of stock options on the date of grant is amortized on a straight ‑line basis over the requisite service period for each separately vesting portion of the award for those awards with service conditions only. For awards that also contain performance conditions, expense is recognized beginning at the time the performance condition is considered probable of being met over the remaining vesting period. The Company uses the Black ‑Scholes option pricing model to determine the fair value of stock ‑option awards. Valuation of stock awards requires management to make assumptions and to apply judgment to determine the fair value of the awards. These assumptions and judgments include estimating the fair value of the Company’s common stock, future volatility of the Company’s stock price, dividend yields, future employee turnover rates, and future employee stock option exercise behaviors. Changes in these assumptions can affect the fair value estimate. Fair Value Disclosures The carrying amounts of short ‑term financial instruments, including cash and cash equivalents, prepaid expenses and other current assets, and accounts payable and other current liabilities approximate fair value as of June 30, 2016 , because of the relatively short ‑term maturity of these instruments. The fair value of the note payable approximates its carrying value as of June 30, 2016 and is based on the effective interest rate compared to the current market rates, which is a Level 2 fair value measurement. Income Taxes The Company uses the asset and liability method of accounting for income taxes. Deferred tax assets and liabilities are determined based on differences between the financial reporting and tax basis of assets and liabilities and are measured using the enacted tax rates and laws that are in effect when the differences are expected to reverse. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the period that such tax rate changes are enacted. The measurement of a deferred tax asset is reduced, if necessary, by a valuation allowance if it is more likely than not that some portion or all of the deferred tax asset will not be realized. Management uses a recognition threshold and a measurement attribute for the financial statement recognition and measurement of tax positions taken or expected to be taken in a tax return, as well as guidance on derecognition, classification, interest and penalties and financial statement reporting disclosures. For those benefits to be recognized, a tax position must be more-likely-than-not to be sustained upon examination by taxing authorities. In the ordinary course of business, transactions occur for which the ultimate outcome may be uncertain. Management does not expect the outcome related to accrued uncertain tax provisions to have a material adverse effect on the Company’s financial position, results of operations or cash flows. The Company recognizes interest and penalties accrued on any unrecognized tax exposures as a component of income tax expense. The Company did not have any amounts accrued relating to interest and penalties as of June 30, 2016 and December 31, 2015 . The Company is subject to taxation in various jurisdictions in the United States and remains subject to examination by taxing jurisdictions for the year 1996 and all subsequent periods due to the availability of net operating loss carryforwards. In addition, all of the net operating losses and research and development credit carryforwards that may be used in future years are still subject to adjustment. N et Loss per Share Basic net loss per share is computed by dividing net loss by the weighted average number of shares of common stock outstanding during the period. For periods of net loss, diluted net loss per share is calculated similarly to basic loss per share because the impact of all potential dilutive common shares is anti ‑dilutive. The total number of anti ‑dilutive shares, consisting of common stock options and stock purchase warrants exercisable for common stock, which have been excluded from the computation of diluted loss per share, was 11,354,147 and 8,321,198 common stock options and 5,127,176 and 5,010,595 stock purchase warrants, for the three and six months ended June 30, 2016 and 2015, respectively. Recent Accounting Pronouncements In March 2016, the Financial Accounting Standards Board (“FASB”) issued guidance simplifying the accounting for and financial statement disclosure of stock-based compensation awards. Under the guidance, all excess tax benefits and tax deficiencies related to stock-based compensation awards are to be recognized as income tax expenses or benefits in the income statement and excess tax benefits should be classified along with other income tax cash flows in the operating activities section of the statement of cash flows. Under the guidance, companies can also elect to either estimate the number of awards that are expected to vest or account for forfeitures as they occur. In addition, the guidance amends some of the other stock-based compensation awards guidance to more clearly articulate the requirements and cash flow presentation for withholding shares for tax-withholding purposes. The guidance is effective for reporting periods beginning after December 15, 2016 and early adoption is permitted, though all amendments of the guidance must be adopted in the same period. The adoption of certain amendments of the guidance must be applied prospectively, and adoption of the remaining amendments must be applied either on a modified retrospective basis or retrospectively to all periods presented. The Company is currently evaluating the impact that this guidance will have on its consolidated financial statements. In February 2016, the FASB issued guidance for the accounting for leases . The guidance requires lessees to recognize assets and liabilities related to long-term leases on the balance sheet and expands disclosure requirements regarding leasing arrangements. The guidance is effective for reporting periods beginning after December 15, 2018 and early adoption is permitted. The guidance must be adopted on a modified retrospective basis and provides for certain practical expedients. The Company is currently evaluating the impact that this guidance will have on its consolidated financial statements. In November 2015, the FASB issued guidance simplifying the balance sheet classification of deferred taxes. The new guidance requires that all deferred taxes be presented as noncurrent, rather than separated into current and noncurrent amounts. The guidance is effective for reporting periods beginning after December 15, 2016 and early adoption is permitted. In addition, the adoption of guidance can be applied either prospectively or retrospectively to all periods presented. T he Company is currently evaluating the impact that this guidance will have on its consolidated financial statements. In July 2015, the FASB issued guidance for inventory. Under the guidance, an entity should measure inventory within the scope of this guidance at the lower of cost and net realizable value, except when inventory is measured using the last in first out method or the retail inventory method. Net realizable value is the estimated selling price in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. In addition, the FASB has amended some of the other inventory guidance to more clearly articulate the requirements for the measurement and disclosure of inventory. The guidance is effective for reporting periods beginning after December 15, 2016. The guidance should be applied prospectively, with earlier application permitted. The Company adopted this guidance for the year ended December 31, 2016, on a prospective basis. The adoption of this new guidance did not have a material impact on the Company’s consolidated financial statements . In April 2015, the FASB issued guidance as to whether a cloud computing arrangement (e.g., software as a service, platform as a service, infrastructure as a service, and other similar hosting arrangements) includes a software license and, based on that determination, how to account for such arrangements. If a cloud computing arrangement includes a software license, then the customer should account for the software license element of the arrangement consistent with the acquisition of other software licenses. If a cloud computing arrangement does not include a software license, the customer should account for the arrangement as a service contract. The guidance is effective for reporting periods beginning after December 15, 2015, and can be adopted on either a prospective or retrospective basis. The Company adopted this guidance for the year ended December 31, 2016, on a prospective basis. The adoption of this new guidance did not have a material impact on the Company’s consolidated financial statements. In April 2015, the FASB issued guidance to simplify the balance sheet disclosure for debt issuance costs. Under the guidance, debt issuance costs related to a recognized debt liability are presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, in the same manner as debt discounts, rather than as an asset. In August 2015, the FASB issued guidance clarifying debt issuance costs related to line-of-credit arrangements, which guidance states that the SEC does not object to an entity deferring and presenting debt issuance costs as an asset and subsequently amortizing the deferred debt issuance costs ratably over the term of the line-of-credit arrangement, regardless of whether there are any outstanding borrowings on the line-of-credit. The guidance is effective for reporting periods beginning after December 15, 2015 and must be adopted on a retrospective basis. Early adoption is permitted. The Company is currently evaluating the impact that this guidance will have on its consolidated financial statements. In May 2014, the FASB issued guidance for revenue recognition for contracts, superseding the previous revenue recognition requirements, along with most existing industry-specific guidance. The guidance requires an entity to review contracts in five steps: 1) identify the contract, 2) identify performance obligations, 3) determine the transaction price, 4) allocate the transaction price, and 5) recognize revenue. The new standard will result in enhanced disclosures regarding the nature, amount, timing, and uncertainty of revenue arising from contracts with customers. In August 2015, the FASB issued guidance approving a one-year deferral, making the standard effective for reporting periods beginning after December 15, 2017, with early adoption permitted only for reporting periods beginning after December 15, 2016. In March 2016, the FASB issued guidance to clarify the implementation guidance on principal versus agent considerations for reporting revenue gross rather than net, with the same deferred effective date. In April 2016, the FASB issued guidance to clarify the implementation guidance on identifying performance obligations and the accounting for licenses of intellectual property, with the same deferred effective date. In May 2016, the FASB issued guidance rescinding SEC paragraphs related to revenue recognition, pursuant to two SEC Staff Announcements at the March 3, 2016 Emerging Issues Task Force meeting. In May 2016, the FASB also issued guidance to clarify the implementation guidance on assessing collectability, presentation of sales tax, noncash consideration, and contracts and contract modifications at transition, with the same effective date. The Company is currently evaluating the impact, if any, that this guidance will have on its consolidated financial statements. The Company has evaluated all other issued unadopted Accounting Standards Updates and believes the adoption of these standards will not have a material impact on its consolidated statements of earnings, balance sheets, or cash flows.

Accrued Expenses and Other Curr

Accrued Expenses and Other Current Liabilities	6 Months Ended
	Jun. 30, 2016
Accrued Expenses and Other Current Liabilities
Other Balance Sheet Details	4. Accrued Expenses and Other Current Liabilities Accrued expenses and other current liabilities consisted of the following as of June 30, 2016 and December 31, 2015 (in thousands): June 30, December 31, 2016 2015 Clinical and preclinical $ $ Contract manufacturing Compensation and benefits Legal Audit and tax related Other Financing costs Deferred rent, current portion — Total $ $

Commitments and Contingencies

Commitments and Contingencies	6 Months Ended
	Jun. 30, 2016
Commitments and Contingencies
Commitments and Contingencies	5. Commitments and Contingencies The Company leases approximately 32,000 square feet of research and office space under a non ‑cancelable operating lease expiring in 2023. The Company has an option to renew the lease for one additional five ‑year term. Expense recognition is based upon a straight ‑line basis and was $130,699 and $94,651 for the three months ended June 30, 2016 and 2015, respectively, and $227,224 and $188,365 the six months ended June 30, 2016 and 2015 , respectively. On March 31, 2016 the Company amended a corporate development agreement with a supplier to include a minimum purchase commitment per year. Total research and development expense related to the minimum payment was $141,000 and $0 for the three months ended June 30, 2016 and 2015, respectively, and $253,890 and $0 for the six months ended June 30, 2016 and 2015, respectively.

Notes Payable

Notes Payable	6 Months Ended
	Jun. 30, 2016
Notes Payable
Notes Payable	6. Notes Payable Term Notes Payable On June 30, 2016, the Company entered into an Amended and Restated Loan and Security Agreement with Oxford and SVB (the “Lenders”). Pursuant to the Amended and Restated Loan and Security Agreement, the Company may potentially borrow up to an aggregate principal amount of $30.0 million in the following four tranches: $15.0 million (“Tranche 1 Term Loan”); $5.0 million (“Tranche 2 Term Loan”); $5.0 million (“Tranche 3 Term Loan”); and $5.0 million (“Tranche 4 Term Loan”) (each, a “Term Loan,” and collectively, the “Term Loans”). The funding conditions for the Tranche 1 Term Loan were satisfied as of June 30, 2016. Therefore, the Company issued secured notes to the Lenders for aggregate gross proceeds of $15.0 million (the “Notes”) on June 30 , 2016. The Company used approximately $11.0 million from the proceeds from the Notes to repay the outstanding balance under the Company’s previously existing Loan and Security Agreement with Oxford, dated as of July 31, 2014, including the applicable final payment fee due thereunder of $1 million. The Company may borrow the Tranche 2 Term Loan on or before December 31, 2016 if the Lenders confirm that the Company received positive data in its U.S. pivotal trial of Eversense, and the Company files a pre-market approval (“PMA”) application for Eversense in the United States with the FDA. The Company may borrow the Tranche 3 Term Loan on or before April 30, 2017 if it borrows the Tranche 2 Term Loan and completes the first commercial sale of its second-generation transmitter in the European Union. The Company may borrow the Tranche 4 Term Loan on or before December 31, 2017 if it borrows the Tranche 2 and Tranche 3 Term Loans, receives PMA approval from the FDA for Eversense, and achieves trailing six-month revenue for the applicable period of measurement of at least $4.0 million. The maturity date for all Term Loans is June 1, 2020 (the “Maturity Date”). The Term Loans bear interest at a floating annual rate of 6.31% plus the greater of (i) 90- day U.S. Dollar LIBOR reported in the Wall Street Journal or (ii) 0.64% , provided that the minimum floor interest rate is 6.95% , and require monthly payments. The monthly payments initially consist of interest -only. After twelve months, the monthly payments will convert to payments of principal and monthly accrued interest, with the principal amount being amortized over the ensuing 36 months. However, if the Company borrows the Tranche 2 Term Loan and the Tranche 3 Term Loan, the interest-only period will be extended by an additional six months, and the amortization period will be shortened to 30 months. The Company may elect to prepay all Term Loans prior to the Maturity Date subject to a prepayment fee equal to 3.00% if the prepayment occurs within one year of the funding date of any Term Loan, 2.00% if the prepayment occurs during the second year following the funding date of any Term Loan, and 1.00% if the prepayment occurs more than two years after the funding date of any Term Loan and prior to the Maturity Date. The Amended and Restated Loan and Security Agreement contains customary events of default, including bankruptcy, the failure to make payments when due, the occurrence of a material impairment on the Lenders’ security interest over the collateral, a material adverse change, the occurrence of a default under certain other agreements entered into by the Company, the rendering of certain types of judgments against the Company, the revocation of certain government approvals of the Company, violation of covenants, and incorrectness of representations and warranties in any material respect. Upon the occurrence of an event of default, subject to specified cure periods, all amounts owed by the Company would begin to bear interest at a rate that is 5.00% above the rate effective immediately before the event of default, and may be declared immediately due and payable by Lenders. Pursuant to the Amended and Restated Loan and Security Agreement, the Company also issued 10 -year stock purchase warrants to purchase an aggregate of 116,581 shares of common stock with an exercise price of $3.86 per share to the Lenders (see Note 7). The Notes are collateralized by all of the Company’s consolidated assets other than its intellectual property. The Notes also contain certain restrictive covenants that limit the Company’s ability to incur additional indebtedness and liens, merge with other companies or consummate certain changes of control, acquire other companies, engage in new lines of business, make certain investments, pay dividends, transfer or dispose of assets, amend certain material agreements or enter into various specified transactions, as well as financial reporting requirements. The Company incurred issuance costs related to the Notes of approximately $568,648 that are being amortized as additional interest expense over the term of the Notes using the effective interest method. The fair value of the stock purchase warrants, which was estimated to be $304,113 , was recorded as a discount to the Notes, which is also being amortized as additional interest expense over the term of the Notes using the effective interest method. At maturity (or earlier prepayment), the Company is also required to make a final payment equal to 9.00% of the aggregate principal balances of the funded Term Loans. This fee is being accrued as additional interest expense over the term of the Notes using the effective interest method. In the event that the Company achieves the requirements to borrow the Tranche 3 Term Loan or the Tranche 4 Term Loan, and elects not to borrow either tranche, the Company is obligated to pay the Lenders a non-utilization fee of 2.00% of the undrawn amounts. The following are the scheduled maturities of the Notes as of June 30, 2016 (in thousands): 2016 (remaining six months) $ — 2017 2018 2019 2020 Total $ Energy Capital, LLC Borrowing Facility On December 7, 2015, the Company entered into a note purchase agreement (the “Purchase Agreement”) with Energy Capital, LLC (“Energy Capital”) pursuant to which the Company could borrow an aggregate principal amount of up to $10.0 million from Energy Capital. During the six months ended June 30, 2016, the Company borrowed an aggregate of $2.5 million from Energy Capital under the facility, which amounts were repaid in full prior to June 30, 2016 and the facility was terminated.

Stockholders' Equity (Deficit)

Stockholders' Equity (Deficit)	6 Months Ended
	Jun. 30, 2016
Stockholders' Equity (Deficit)
Stockholders' Equity (Deficit)	7. Stockholders’ Equity (Deficit) Preferred Stock As of June 30, 2016 and December 31, 2015, the Company’s authorized capital stock included 5,000,000 shares and 0 shares of undesignated preferred stock, par value $0.001 per share , respectively. No shares of preferred stock were outstanding as of June 30, 2016 or December 31, 2015. Common Stock As of June 30, 2016 and December 31, 2015, the Company’s authorized capital stock included 250,000,000 shares of common stock, par value $0.001 per share. The Company had 93,368,011 and 75,760,061 shares of common stock issued and outstanding at June 30, 2016 and December 31, 2015, respectively. As discussed in Note 2, the Company completed the initial closing of the Offering on March 23, 2016 and completed the closing of the underwriters’ partial exercise of their option to purchase additional shares on April 5, 2016, issuing an aggregate of 17,239,143 shares of common stock. Net cash proceeds from the Offering were approximately $44.8 million, after deducting underwriting discounts and commissions and estimated Offering-related transaction costs payable by the Company. Stock Purchase Warrants In connection with the issuance of the Notes, the Company also issued to the Lenders 10 -year stock purchase warrants to purchase an aggregate of 116,581 shares of common stock at an exercise price of $3.86 per share. The fair value of the warrants, which the Company estimated to be $304,113 , was recorded as a discount to the Notes. These warrants expire on June 30, 2026 and are classified in equity. In connection with the Company’s original Loan and Security Agreement with Oxford in 2014, the Company issued to Oxford 10 -year stock purchase warrants to purchase an aggregate of 167,570 shares of common stock at an exercise price of $1.79 per share. The fair value of the warrants, which the Company estimated to be $205,150 , was recorded as a discount to the promissory notes issued to Oxford in connection with the original Loan and Security Agreement. These warrants expire on November 2, 2020, July 14, 2021 and August 19, 2021, and are classified in equity. The unamortized deferred financing fees and debt discount related to the notes rollover amount will be amortized along with the deferred financing costs and the discount created by the new issuance of the warrants over the term of the loan using the effective interest method . For the three months ended June 30, 2016 and 2015 , the Company recorded amortization of discount of debt of $12,683 and $15,488 , respectively, and for the six months ended June 30, 2016 and 2015, the Company recorded amortization of discount of debt of $27,010 and $41,065 , respectively, within interest expense in the accompanying statement of operations. Restricted Stock Awards The Company issued 398,525 shares of restricted stock to the chairman of the Company’s board of directors (the “Chairman”) in December 2015, half of which were vested upon grant and half of which vested upon the completion of the Offering, pursuant to an agreement between the Company and the Chairman, as described in greater detail in Note 8. In June 2016, the Company issued a fully vested restricted stock award for 300,000 shares of common stock the Chairman to settle the outstanding obligations under the agreement. The Company recognized stock-based compensation expense of $378,470 and $1.17 million in the three and six months ended June 30, 2016, respectively, related to the grant and vesting of this restricted stock. Stock ‑Based Compensation In December 2015, the Company adopted the 2015 Equity Incentive Plan (the “2015 Plan”) under which incentive stock options and non-qualified stock options may be granted to the Company’s employees and certain other persons in accordance with the 2015 Plan provisions. In connection with the Offering, the Company’s board of directors adopted and the Company’s stockholders approved an Amended and Restated 2015 Equity Incentive Plan (the “amended and restated 2015 Plan”). The amended and restated 2015 plan became effective as of the date of the pricing of the Offering. The Company’s board of directors may terminate the amended and restated 2015 Plan at any time. Options granted under the amended and restated 2015 Plan expire ten years after the date of grant. The Company retains the right of first offer to buy any shares issued under the amended and restated 2015 Plan. Pursuant to the amended and restated 2015 Plan, the number of shares initially reserved for issuance pursuant to equity awards was 17,251,115 shares, representing 8,000,000 shares plus up to an additional 9,251,115 shares in the event that options that were outstanding under our equity incentive plans as of February 16, 2016 expire or otherwise terminate without having been exercised (in such case, the shares not acquired will revert to and become available for issuance under the amended and restated 2015 Plan). The number of shares of our common stock reserved for issuance under our amended and restated 2015 Plan will automatically increase on January 1 of each year, beginning on January 1, 2017 and ending on January 1, 2026, by 3.5% of the total number of shares of our common stock outstanding on December 31 of the preceding calendar year, or a lesser number of shares as may be determined by our board of directors. As of June 30, 2016, 5,429,635 shares remained available for grant under the amended and restated 2015 Plan. On May 8, 1997, the Company adopted the 1997 Stock Option Plan (the “1997 Plan”), under which incentive stock options and non ‑qualified stock options may be granted to the Company’s employees and certain other persons in accordance with the 1997 Plan provisions. The 1997 Plan was amended in September 2001, to clarify certain provisions regarding the method of exercise, amendment and termination of the Plan, and the effect of changes in capitalization of the Company. The board of directors, which administers the 1997 Plan, determines the number of options granted, the vesting period and the exercise price. Options granted under the 1997 Plan expire ten years after the date of grant. Upon the effectiveness of the 2015 Plan, the Company no longer grants any awards under the 1997 Plan. The Company recognizes the cost of employee services received in exchange for awards of equity instruments, such as stock options, based on the fair value of those awards at the date of grant. The estimated fair value of stock options on the date of grant is amortized on a straight-line basis over the requisite service period for each separately vesting portion of the award for those awards with service conditions only. For awards that also contain performance conditions, expense is recognized beginning at the time the performance condition is considered probable of being met over the remaining vesting period. Capital Structure Prior to the Acquisition Prior to the Acquisition, the Company had the following shares of preferred stock authorized: · 599,997 shares of Series A Convertible Preferred Stock with a par value of $0.01 per share · 1,202,497 shares of Series B Convertible Preferred Stock with a par value of $0.01 per share · 2,073,749 shares of Series C Convertible Preferred Stock with a par value of $0.01 per share · 22,995,265 shares of Series D Convertible Preferred Stock with a par value of $0.01 per share, and · 3,192,537 shares of Series E Convertible Preferred Stock with a par value of $0.01 per share (“Series E Stock”). In August 2015, the Company completed a private offering of 2,711,926 shares of Series E Stock at a purchase price of $3.93 per share for total proceeds of $10.7 million. The Company recognized a beneficial conversion feature of $406,783 associated with the Series E Stock since the initial effective conversion price was determined to be less than the fair value of the underlying common stock into which the Series E Stock is convertible. The beneficial conversion feature was recognized as a “deemed dividend” at issuance since the Series E Stock is convertible at any time at the option of the holders. Prior to their conversion to common stock in connection with the Acquisition, all series of preferred stock were equity classified. The holders of preferred stock were entitled to receive dividends as may be declared by the board of directors. The Company did not declare or otherwise recognize any preferred stock dividends during the three and six months ended June 30, 2016 or 2015 . Pursuant to the terms of the Acquisition (i) all outstanding shares of common stock of Senseonics, Incorporated $0.01 par value per share, were exchanged for 1,955,929 shares of the Company's common stock, $0.001 par value per share (reflecting an exchange ratio of 2.0975 ), (ii) all outstanding shares of preferred stock were converted into shares of common stock of Senseonics, Incorporated and exchanged into 55,301,674 shares of the Company’s common stock, $0.001 par value per share, and (iii) all outstanding options and warrants to purchase shares of common stock or preferred stock of Senseonics, Incorporated were exchanged for or replaced with options and warrants to acquire shares of the Company’s common stock using the same exchange ratio. As a result, the Company did not have any shares of preferred stock issued or outstanding as of June 30, 2016 or December 31, 2015.

Related Party Transactions

Related Party Transactions	6 Months Ended
	Jun. 30, 2016
Related Party Transactions
Related Party Transactions	8. Related Party Transactions In December 2015, the Chairman received a restricted stock award of 398,525 shares of common stock pursuant to an agreement entered into with the Company (the “December Agreement”) that superseded a pre-existing agreement. One half of the shares covered by this restricted stock award were fully vested on grant. The remainder vested in full upon the completion of the Company’s Offering, which was the specific performance condition of the award. Additionally, as a result of the completion of the Offering, pursuant to the December Agreement, the Chairman was entitled to receive estimated compensation in the amount of $785,000 . In June 2016, the Chairman received a restricted stock award of 300,000 shares of common stock pursuant to an agreement entered into with the Company that superseded the December Agreement and satisfied the outstanding compensation obligation under the December Agreement. All of the shares covered by this restricted stock award were fully vested on date of grant. As described in Note 6, on December 7, 2015, the Company entered into a note purchase agreement with a stockholder, Energy Capital, pursuant to which the Company could borrow an aggregate principal amount of up to $10.0 million from Energy Capital. During the three months ended March 31, 2016, the Company borrowed an aggregate of $2.5 million from Energy Capital under the facility, which amounts were repaid in full prior to March 31, 2016 and the facility was terminated.

Fair Value Measurements

Fair Value Measurements	6 Months Ended
	Jun. 30, 2016
Fair Value Measurements
Fair Value Measurements	9. Fair Value Measurements Fair value is defined as the price that would be received to sell an asset or paid to settle a liability in an orderly transaction between market participants at the measurement date. Fair value has a three level hierarchy from highest priority (Level 1) to lowest priority (Level 3). The fair value hierarchy, defined by Accounting Standards Codification 820, Fair Value Measurements and Disclosures , was established based on whether the inputs are observable from independent sources or rely on unobservable inputs based on the Company’s market assumptions. The three levels of the fair value hierarchy are described below: · Level 1—Quoted prices for identical assets or liabilities (unadjusted) in active markets. · Level 2—Observable inputs other than quoted prices that are either directly or indirectly observable for the assets or liability. · Level 3—Unobservable inputs that are supported by little or no market activity. The levels are not necessarily an indication of the risk of liquidity associated with the financial assets or liabilities disclosed. Financial Assets and Liabilities Measured at Fair Value on a Recurring Basis The Company has segregated its financial assets and liabilities that are measured at fair value on a recurring basis into the most appropriate level within the fair value hierarchy based on the inputs used to determine the fair value at the measurement date in the table below. The inputs used in measuring the fair value of the Company’s money market funds included in cash equivalents are considered to be Level 1 in accordance with the three ‑tier fair value hierarchy. The fair market values are based on period ‑end statements supplied by the various banks and brokers that held the majority of the funds. The following table represents the fair value hierarchy of the Company’s financial assets and liabilities measured at fair value on a recurring basis at June 30, 2016 (in thousands): June 30, 2016 Total Level 1 Level 2 Level 3 Money market funds $ $ $ — $ — December 31, 2015 Total Level 1 Level 2 Level 3 Money market funds $ $ $ — $ — Non ‑Financial Assets and Liabilities Measured at Fair Value on a Non ‑Recurring Basis The Company measures its long ‑lived assets, including property and equipment, at fair value on a non ‑recurring basis. These assets are recognized at fair value when they are deemed to be impaired. No such fair value impairment was recognized in the three and six months ended June 30, 2016 or June 30, 2015.

Income Taxes

Income Taxes	6 Months Ended
	Jun. 30, 2016
Income Taxes
Income Taxes	10. Income Taxes The Company has not recorded any tax provision or benefit for the three and six months ended June 30, 2016 or June 30, 2015 . The Company has provided a valuation allowance for the full amount of its net deferred tax assets since realization of any future benefit from deductible temporary differences, net operating loss carryforwards and research and development credits is not more-likely-than-not to be realized at June 30, 2016 and December 31, 2015.

Summary of Significant Accoun16

Summary of Significant Accounting Policies (Policies)	6 Months Ended
	Jun. 30, 2016
Summary of Significant Accounting Policies
Basis of Accounting	Basis of Accounting The accompanying unaudited interim condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). In the Company’s opinion, the accompanying unaudited interim condensed consolidated financial statements include all adjustments, consisting of normal recurring adjustments, which are necessary to present fairly its financial position, results of operations, and cash flows. The consolidated balance sheet at December 31, 2015 , has been derived from audited financial statements as of that date. The interim condensed consolidated results of operations are not necessarily indicative of the results that may occur for the full fiscal year. Certain information and footnote disclosure normally included in financial statements prepared in accordance with U.S. GAAP have been omitted pursuant to instructions, rules, and regulations prescribed by the SEC. The Company believes that the disclosures provided herein are adequate to make the information presented not misleading when these unaudited interim condensed consolidated financial statements are read in conjunction with the audited financial statements and notes previously distributed in the Company’s Annual Report on Form 10-K for the year ended December 31, 2015.
Reclassification	Reclassification Sales and marketing expenses of approximately $258,000 and $590,000 included in general and administrative expenses for the three and six months ended June 30, 2015, respectively, have been reclassified to sales and marketing expenses to conform to 2016 presentation.
Use of Estimates	Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the reported amounts of revenues and expenses during the reporting period. In the accompanying unaudited condensed consolidated financial statements, estimates are used for, but not limited to, valuation of common and preferred stock, stock ‑based compensation, the fair value of warrant liabilities and beneficial conversion features in convertible securities, recoverability of long ‑lived assets, deferred taxes and valuation allowances, depreciable lives of property and equipment, and estimated accruals for preclinical study costs, which are accrued based on estimates of work performed under contracts. Actual results could differ from those estimates; however management does not believe that such differences would be material.
Segment Information	Segment Information Operating segments are defined as components of an enterprise about which separate discrete financial information is available for evaluation by the chief operating decision ‑maker, or decision ‑making group, in deciding how to allocate resources and in accessing performance. The Company views its operations and manages its business in one segment, glucose monitoring systems.
Inventory	Inventory Inventory is valued at the lower of cost to purchase or the market value of such inventory. Cost is determined using the standard cost method that approximates first in, first out. Market is determined by the lower of replacement cost or net realizable value. The Company periodically reviews inventory to determine if a write down is necessary for inventory that has become obsolete, inventory that has a cost basis less than net realizable value, and inventory in excess of future demand taking into consideration the product shelf life.
Revenue Recognition	Revenue Recognition Revenue is generated from sales of sensor kits, transmitter kits, and related supplies under agreements for research and third-party distributors that resell the product to customers. The Company is paid for its sales directly by third-party distributors, regardless of whether or not the distributors resell the products to their customers. The Company recognizes product sales revenue when all of the following criteria are met:  persuasive evidence of an arrangement exists  delivery has occurred  the price is fixed or determinable; and  collectability is probable. The Company offers no rights of return and has no significant post-delivery obligations and therefore, the above criteria are generally met as products are shipped to third-party distributors.
Property and Equipment	Property and Equipment Property and equipment are stated at historical cost and depreciated on a straight ‑line basis over the estimated useful lives, generally five years. Equipment under capital leases is depreciated on a straight ‑line basis over the lesser of its estimated useful life or the lease term. Leasehold improvements are depreciated over the shorter of the remaining lease term or useful lives of the assets. Upon disposition of the assets, the costs and related accumulated depreciation are removed from the accounts and any resulting gain or loss is included in the results of operations. Repairs and maintenance costs are included as expense in the accompanying statement of operations. Management reviews property and equipment for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of the long ‑lived asset is measured by a comparison of the carrying amount of the asset to future undiscounted net cash flows expected to be generated by the asset. If the undiscounted cash flows are less than the carrying amount, the impairment to be recognized is measured by the amount by which the carrying amount of the assets exceeds the estimated fair value of the assets. Management did not identify any indicators of impairment through June 30, 2016 .
Research and Development Costs	Research and Development Costs Research and development costs are expensed as incurred. Research and development expenses include costs related to employee compensation, preclinical studies and clinical trials, supplies, outsource testing, consulting and depreciation and other facilities ‑related expenses.
Stock-Based Compensation	Stock ‑Based Compensation The Company recognizes the cost of employee services received in exchange for awards of equity instruments, such as stock options, based on the fair value of those awards at the date of grant. The estimated fair value of stock options on the date of grant is amortized on a straight ‑line basis over the requisite service period for each separately vesting portion of the award for those awards with service conditions only. For awards that also contain performance conditions, expense is recognized beginning at the time the performance condition is considered probable of being met over the remaining vesting period. The Company uses the Black ‑Scholes option pricing model to determine the fair value of stock ‑option awards. Valuation of stock awards requires management to make assumptions and to apply judgment to determine the fair value of the awards. These assumptions and judgments include estimating the fair value of the Company’s common stock, future volatility of the Company’s stock price, dividend yields, future employee turnover rates, and future employee stock option exercise behaviors. Changes in these assumptions can affect the fair value estimate.
Fair Value Disclosures	Fair Value Disclosures The carrying amounts of short ‑term financial instruments, including cash and cash equivalents, prepaid expenses and other current assets, and accounts payable and other current liabilities approximate fair value as of June 30, 2016 , because of the relatively short ‑term maturity of these instruments. The fair value of the note payable approximates its carrying value as of June 30, 2016 and is based on the effective interest rate compared to the current market rates, which is a Level 2 fair value measurement.
Income Taxes	Income Taxes The Company uses the asset and liability method of accounting for income taxes. Deferred tax assets and liabilities are determined based on differences between the financial reporting and tax basis of assets and liabilities and are measured using the enacted tax rates and laws that are in effect when the differences are expected to reverse. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the period that such tax rate changes are enacted. The measurement of a deferred tax asset is reduced, if necessary, by a valuation allowance if it is more likely than not that some portion or all of the deferred tax asset will not be realized. Management uses a recognition threshold and a measurement attribute for the financial statement recognition and measurement of tax positions taken or expected to be taken in a tax return, as well as guidance on derecognition, classification, interest and penalties and financial statement reporting disclosures. For those benefits to be recognized, a tax position must be more-likely-than-not to be sustained upon examination by taxing authorities. In the ordinary course of business, transactions occur for which the ultimate outcome may be uncertain. Management does not expect the outcome related to accrued uncertain tax provisions to have a material adverse effect on the Company’s financial position, results of operations or cash flows. The Company recognizes interest and penalties accrued on any unrecognized tax exposures as a component of income tax expense. The Company did not have any amounts accrued relating to interest and penalties as of June 30, 2016 and December 31, 2015 . The Company is subject to taxation in various jurisdictions in the United States and remains subject to examination by taxing jurisdictions for the year 1996 and all subsequent periods due to the availability of net operating loss carryforwards. In addition, all of the net operating losses and research and development credit carryforwards that may be used in future years are still subject to adjustment.
Net Loss per Share	Net Loss per Share Basic net loss per share is computed by dividing net loss by the weighted average number of shares of common stock outstanding during the period. For periods of net loss, diluted net loss per share is calculated similarly to basic loss per share because the impact of all potential dilutive common shares is anti ‑dilutive. The total number of anti ‑dilutive shares, consisting of common stock options and stock purchase warrants exercisable for common stock, which have been excluded from the computation of diluted loss per share, was 11,354,147 and 8,321,198 common stock options and 5,127,176 and 5,010,595 stock purchase warrants, for the three and six months ended June 30, 2016 and 2015, respectively.
Recent Accounting Pronouncements	Recent Accounting Pronouncements In March 2016, the Financial Accounting Standards Board (“FASB”) issued guidance simplifying the accounting for and financial statement disclosure of stock-based compensation awards. Under the guidance, all excess tax benefits and tax deficiencies related to stock-based compensation awards are to be recognized as income tax expenses or benefits in the income statement and excess tax benefits should be classified along with other income tax cash flows in the operating activities section of the statement of cash flows. Under the guidance, companies can also elect to either estimate the number of awards that are expected to vest or account for forfeitures as they occur. In addition, the guidance amends some of the other stock-based compensation awards guidance to more clearly articulate the requirements and cash flow presentation for withholding shares for tax-withholding purposes. The guidance is effective for reporting periods beginning after December 15, 2016 and early adoption is permitted, though all amendments of the guidance must be adopted in the same period. The adoption of certain amendments of the guidance must be applied prospectively, and adoption of the remaining amendments must be applied either on a modified retrospective basis or retrospectively to all periods presented. The Company is currently evaluating the impact that this guidance will have on its consolidated financial statements. In February 2016, the FASB issued guidance for the accounting for leases . The guidance requires lessees to recognize assets and liabilities related to long-term leases on the balance sheet and expands disclosure requirements regarding leasing arrangements. The guidance is effective for reporting periods beginning after December 15, 2018 and early adoption is permitted. The guidance must be adopted on a modified retrospective basis and provides for certain practical expedients. The Company is currently evaluating the impact that this guidance will have on its consolidated financial statements. In November 2015, the FASB issued guidance simplifying the balance sheet classification of deferred taxes. The new guidance requires that all deferred taxes be presented as noncurrent, rather than separated into current and noncurrent amounts. The guidance is effective for reporting periods beginning after December 15, 2016 and early adoption is permitted. In addition, the adoption of guidance can be applied either prospectively or retrospectively to all periods presented. T he Company is currently evaluating the impact that this guidance will have on its consolidated financial statements. In July 2015, the FASB issued guidance for inventory. Under the guidance, an entity should measure inventory within the scope of this guidance at the lower of cost and net realizable value, except when inventory is measured using the last in first out method or the retail inventory method. Net realizable value is the estimated selling price in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. In addition, the FASB has amended some of the other inventory guidance to more clearly articulate the requirements for the measurement and disclosure of inventory. The guidance is effective for reporting periods beginning after December 15, 2016. The guidance should be applied prospectively, with earlier application permitted. The Company adopted this guidance for the year ended December 31, 2016, on a prospective basis. The adoption of this new guidance did not have a material impact on the Company’s consolidated financial statements . In April 2015, the FASB issued guidance as to whether a cloud computing arrangement (e.g., software as a service, platform as a service, infrastructure as a service, and other similar hosting arrangements) includes a software license and, based on that determination, how to account for such arrangements. If a cloud computing arrangement includes a software license, then the customer should account for the software license element of the arrangement consistent with the acquisition of other software licenses. If a cloud computing arrangement does not include a software license, the customer should account for the arrangement as a service contract. The guidance is effective for reporting periods beginning after December 15, 2015, and can be adopted on either a prospective or retrospective basis. The Company adopted this guidance for the year ended December 31, 2016, on a prospective basis. The adoption of this new guidance did not have a material impact on the Company’s consolidated financial statements. In April 2015, the FASB issued guidance to simplify the balance sheet disclosure for debt issuance costs. Under the guidance, debt issuance costs related to a recognized debt liability are presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, in the same manner as debt discounts, rather than as an asset. In August 2015, the FASB issued guidance clarifying debt issuance costs related to line-of-credit arrangements, which guidance states that the SEC does not object to an entity deferring and presenting debt issuance costs as an asset and subsequently amortizing the deferred debt issuance costs ratably over the term of the line-of-credit arrangement, regardless of whether there are any outstanding borrowings on the line-of-credit. The guidance is effective for reporting periods beginning after December 15, 2015 and must be adopted on a retrospective basis. Early adoption is permitted. The Company is currently evaluating the impact that this guidance will have on its consolidated financial statements. In May 2014, the FASB issued guidance for revenue recognition for contracts, superseding the previous revenue recognition requirements, along with most existing industry-specific guidance. The guidance requires an entity to review contracts in five steps: 1) identify the contract, 2) identify performance obligations, 3) determine the transaction price, 4) allocate the transaction price, and 5) recognize revenue. The new standard will result in enhanced disclosures regarding the nature, amount, timing, and uncertainty of revenue arising from contracts with customers. In August 2015, the FASB issued guidance approving a one-year deferral, making the standard effective for reporting periods beginning after December 15, 2017, with early adoption permitted only for reporting periods beginning after December 15, 2016. In March 2016, the FASB issued guidance to clarify the implementation guidance on principal versus agent considerations for reporting revenue gross rather than net, with the same deferred effective date. In April 2016, the FASB issued guidance to clarify the implementation guidance on identifying performance obligations and the accounting for licenses of intellectual property, with the same deferred effective date. In May 2016, the FASB issued guidance rescinding SEC paragraphs related to revenue recognition, pursuant to two SEC Staff Announcements at the March 3, 2016 Emerging Issues Task Force meeting. In May 2016, the FASB also issued guidance to clarify the implementation guidance on assessing collectability, presentation of sales tax, noncash consideration, and contracts and contract modifications at transition, with the same effective date. The Company is currently evaluating the impact, if any, that this guidance will have on its consolidated financial statements. The Company has evaluated all other issued unadopted Accounting Standards Updates and believes the adoption of these standards will not have a material impact on its consolidated statements of earnings, balance sheets, or cash flows.

Accrued Expenses and Other Cu17

Accrued Expenses and Other Current Liabilities (Tables)	6 Months Ended
	Jun. 30, 2016
Accrued Expenses and Other Current Liabilities
Schedule of Accrued expenses and other current liabilities	Accrued expenses and other current liabilities consisted of the following as of June 30, 2016 and December 31, 2015 (in thousands): June 30, December 31, 2016 2015 Clinical and preclinical $ $ Contract manufacturing Compensation and benefits Legal Audit and tax related Other Financing costs Deferred rent, current portion — Total $ $

Notes Payable (Tables)

Notes Payable (Tables)	6 Months Ended
	Jun. 30, 2016
Notes Payable
Schedule of future maturities of the Oxford notes	The following are the scheduled maturities of the Notes as of June 30, 2016 (in thousands): 2016 (remaining six months) $ — 2017 2018 2019 2020 Total $

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	6 Months Ended
	Jun. 30, 2016
Fair Value Measurements
Schedule of financial assets and liabilities measured at fair value on a recurring basis	The following table represents the fair value hierarchy of the Company’s financial assets and liabilities measured at fair value on a recurring basis at June 30, 2016 (in thousands): June 30, 2016 Total Level 1 Level 2 Level 3 Money market funds $ $ $ — $ — December 31, 2015 Total Level 1 Level 2 Level 3 Money market funds $ $ $ — $ —

Organization - Acquisition (Det

Organization - Acquisition (Details)	Dec. 07, 2015
ASN Technologies, Inc. | Senseonics Reverse Merger Agreement | Capital Stock, Senseonics, Inc.
Significant Transaction
Interest in capital stock acquired (as a percent)	100.00%

Organization - Recent Significa

Organization - Recent Significant Transaction - Debt Agreement (Details)	Jun. 30, 2016USD ($)
Oxford Notes
Recent Significant Transaction
Amount used to retire existing loans	$ 11,000,000
Final payment fee, notes	1,000,000
Amended and Restated Loan and Security Agreement
Recent Significant Transaction
Potential maximum borrowing capacity	30,000,000
Maximum amount available under facility	15,000,000
Potential increase in maximum borrowing capacity	15,000,000
Additional amount borrowed as a trigger for extension in interest only and amortization periods.	$ 10,000,000
Amended and Restated Loan and Security Agreement | Interest only period
Recent Significant Transaction
Repayment period	12 months
Amended and Restated Loan and Security Agreement | Amortization period
Recent Significant Transaction
Repayment period	36 months
Amended and Restated Loan and Security Agreement | Interest only period, contingent terms met
Recent Significant Transaction
Repayment period	6 months
Amended and Restated Loan and Security Agreement | Amortization period, contingent terms met
Recent Significant Transaction
Repayment period	30 months

Liquidity - Offering (Details)

Liquidity - Offering (Details) - USD ($)	Mar. 23, 2016	Jun. 30, 2016	Jun. 30, 2016
Recent Significant Transaction
Proceeds from issuance of common stock, net of issuance costs			$ 45,738,000
Offering
Recent Significant Transaction
Shares issued	15,800,000
Price per share (in dollars per share)	$ 2.85
IPO and Underwriters' Option
Recent Significant Transaction
Shares issued		17,239,143
Proceeds from issuance of common stock, net of issuance costs		$ 44,800,000
Underwriters' discounts and commissions		2,700,000
Additional offering related costs		1,400,000
Amended and Restated Loan and Security Agreement
Recent Significant Transaction
Potential maximum borrowing capacity		$ 30,000,000	$ 30,000,000

Summary of Significant Accoun23

Summary of Significant Accounting Policies - Additional Information (Details)	3 Months Ended		6 Months Ended
	Jun. 30, 2016USD ($)shares	Jun. 30, 2015USD ($)shares	Jun. 30, 2016USD ($)segmentshares	Jun. 30, 2015USD ($)shares	Dec. 31, 2015USD ($)
Reclassification
Sales and marketing expenses	$ 635,000	$ 258,000	$ 1,268,000	$ 590,000
General and administrative expenses	3,361,000	1,478,000	$ 7,241,000	2,895,000
Segment Information
Number of operating segments | segment			1
Property and Equipment
Useful lives			5 years
Income Taxes
Accrued for income tax penalties and interest	$ 0		$ 0		$ 0
Adjustment
Reclassification
Sales and marketing expenses		258,000		590,000
General and administrative expenses		$ (258,000)		$ (590,000)
Common Stock options
Net Income (Loss) per Share
Securities excluded from computation of diluted loss per share | shares	11,354,147	8,321,198	11,354,147	8,321,198
Stock Purchase Warrants
Net Income (Loss) per Share
Securities excluded from computation of diluted loss per share | shares	5,127,176	5,010,595	5,127,176	5,010,595

Accrued Expenses and Other Cu24

Accrued Expenses and Other Current Liabilities - Accrued expenses and other current liabilities (Details) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Accrued Expenses and Other Current Liabilities
Clinical and preclinical	$ 1,241	$ 871
Contract manufacturing	1,312	754
Compensation and benefits	987	605
Legal	492	243
Audit and tax related	306	376
Other	86	183
Financing Costs	51	655
Deferred rent, current portion		7
Total	$ 4,475	$ 3,694

Commitments and Contingencies -

Commitments and Contingencies - Operating Lease (Details) - Research and office space	3 Months Ended		6 Months Ended
	Jun. 30, 2016USD ($)ft²	Jun. 30, 2015USD ($)	Jun. 30, 2016USD ($)ft²item	Jun. 30, 2015USD ($)
Operating Leases
Leased space, in square feet | ft²	32,000		32,000
Number of renewal terms | item			1
Renewal term of lease			5 years
Operating lease expense | $	$ 130,699	$ 94,651	$ 227,224	$ 188,365

Commitments and Contingencies26

Commitments and Contingencies - Minimum Payments (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Commitments and contingencies
Research and development expense	$ 7,539,000	$ 5,195,000	$ 13,955,000	$ 8,860,000
Corporate development agreement
Commitments and contingencies
Research and development expense	$ 141,000	$ 0	$ 253,890	$ 0

Notes Payable - Amended Agreeme

Notes Payable - Amended Agreement (Details)	Jun. 30, 2016USD ($)instrument	Jun. 30, 2016USD ($)
Notes payable
Proceeds from notes payable		$ 17,500,000
Amended and Restated Loan and Security Agreement
Notes payable
Potential maximum borrowing capacity	$ 30,000,000	30,000,000
Number of tranches under facility | instrument	4
Maximum amount available under facility	$ 15,000,000	$ 15,000,000
Proceeds from notes payable	$ 15,000,000
Amended and Restated Loan and Security Agreement | Interest only period
Notes payable
Repayment period	12 months
Amended and Restated Loan and Security Agreement | Amortization period
Notes payable
Repayment period	36 months
Amended and Restated Loan and Security Agreement | Interest only period, contingent terms met
Notes payable
Repayment period	6 months
Amended and Restated Loan and Security Agreement | Amortization period, contingent terms met
Notes payable
Repayment period	30 months
Oxford Notes
Notes payable
Amount used to retire existing loans	$ 11,000,000
Final payment fee, notes	$ 1,000,000
Term Loans | Amended and Restated Loan and Security Agreement
Notes payable
Prepayment fee percentage within one year of funding	3.00%
Prepayment fee percentage second year after funding date	2.00%
Prepayment fee percentage after second anniversary of funding	1.00%
Debt default, interest rate (as a percent)	5.00%
Term Loans | Amended and Restated Loan and Security Agreement | LIBOR
Notes payable
Floating annual rate, spread (as a percent)	6.31%
90-day U.S. Dollar LIBOR	90-day U.S. Dollar LIBOR
Term Loans | Amended and Restated Loan and Security Agreement | Floor interest rate
Notes payable
Floating annual rate, spread (as a percent)	0.64%
Term Loans | Amended and Restated Loan and Security Agreement | Floor interest rate | Minimum
Notes payable
Interest rate (as a percent)	6.95%	6.95%
Term Loans | Amended and Restated Loan and Security Agreement | Interest only period
Notes payable
Frequency of payment	monthly
Repayment period	12 months
Type of payment required	interest-only
Term Loans | Amended and Restated Loan and Security Agreement | Amortization period
Notes payable
Frequency of payment	monthly
Repayment period	36 months
Type of payment required	principal and interest
Tranche 1 Term Loan | Amended and Restated Loan and Security Agreement
Notes payable
Maximum amount available under facility	$ 15,000,000	$ 15,000,000
Tranche 2 Term Loan | Amended and Restated Loan and Security Agreement
Notes payable
Maximum amount available under facility	5,000,000	5,000,000
Tranche 3 Term Loan | Amended and Restated Loan and Security Agreement
Notes payable
Maximum amount available under facility	5,000,000	5,000,000
Tranche 4 Term Loan | Amended and Restated Loan and Security Agreement
Notes payable
Maximum amount available under facility	5,000,000	$ 5,000,000
Trailing six month revenue requirement	$ 4,000,000
Tranche 2 and Tranche 3 Term Loans | Amended and Restated Loan and Security Agreement | Interest only period, contingent terms met
Notes payable
Repayment period	6 months
Tranche 2 and Tranche 3 Term Loans | Amended and Restated Loan and Security Agreement | Amortization period, contingent terms met
Notes payable
Repayment period	30 months

Notes Payable - Term Notes Paya

Notes Payable - Term Notes Payable (Details) - Amended and Restated Loan and Security Agreement	Jun. 30, 2016USD ($)$ / sharesshares
Common Stock | Stock Purchase Warrants
Long term debt
Term of stock purchase warrants	10 years
Number of shares called by warrants | shares	116,581
Exercise price of warrant (in dollars per share) | $ / shares	$ 3.86
Term Loans
Long term debt
Issuance costs	$ 568,648
Final prepayment fee (as a percent)	9.00%
Term Loans | Warrant liability | Stock Purchase Warrants
Long term debt
Warrant liability	$ 304,113
Tranche 3 Term Loan
Long term debt
Non-utilization fee (as a percent)	2.00%
Tranche 4 Term Loan
Long term debt
Non-utilization fee (as a percent)	2.00%

Notes Payable - Scheduled Matur

Notes Payable - Scheduled Maturities Oxford Notes (Details) - Term Loans $ in Thousands	Jun. 30, 2016USD ($)
Scheduled maturities of Oxford notes
2,017	$ 2,917
2,018	5,000
2,019	5,000
2,020	2,083
Total maturities	$ 15,000

Notes Payable - Energy Capital,

Notes Payable - Energy Capital, LLC Borrowing Facility (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2016	Dec. 07, 2015
Long term debt
Proceeds from notes payable	$ 17,500
Amounts repaid under facility	13,284
Energy Capital
Long term debt
Maximum amount available under facility		$ 10,000
Proceeds from notes payable	2,500
Amounts repaid under facility	$ 2,500

Stockholders' Equity (Deficit)

Stockholders' Equity (Deficit) - Class of Stock Disclosures (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended	6 Months Ended
	Jun. 30, 2016	Jun. 30, 2016	Dec. 31, 2015
Stockholders' Equity, Number of Shares, Par Value and Other Disclosures [Abstract]
Preferred stock, shares authorized	5,000,000	5,000,000	0
Preferred stock, par value per share (in dollars per share)	$ 0.001	$ 0.001	$ 0.001
Preferred stock, shares outstanding	0	0	0
Authorized common stock	250,000,000	250,000,000	250,000,000
Common stock, par value	$ 0.001	$ 0.001	$ 0.001
Common stock issued	93,368,011	93,368,011	75,760,061
Common stock, shares outstanding	93,368,011	93,368,011	75,760,061
Offering
Proceeds from issuance of common stock, net of issuance costs		$ 45,738
IPO and Underwriters' Option
Offering
Shares issued	17,239,143
Proceeds from issuance of common stock, net of issuance costs	$ 44,800

Stockholders' Equity (Deficit32

Stockholders' Equity (Deficit) - Stock Purchase Warrants (Details) - Stock Purchase Warrants - USD ($)	Jun. 30, 2016	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015	Dec. 31, 2014
Interest Expense
Stock Purchase Warrants
Accretion of debt discount		$ 12,683	$ 27,010	$ 15,488	$ 41,065
Amended and Restated Loan and Security Agreement | Common Stock
Stock Purchase Warrants
Term of stock purchase warrants	10 years
Number of shares called by warrants	116,581	116,581		116,581
Exercise price of warrant (in dollars per share)	$ 3.86	$ 3.86		$ 3.86
Amended and Restated Loan and Security Agreement | Term Loans | Warrant liability
Stock Purchase Warrants
Warrant liability	$ 304,113	$ 304,113		$ 304,113
Oxford Notes
Stock Purchase Warrants
Term of stock purchase warrants						10 years
Oxford Notes | Common Stock
Stock Purchase Warrants
Number of shares called by warrants						167,570
Exercise price of warrant (in dollars per share)						$ 1.79
Oxford Notes | Warrant liability
Stock Purchase Warrants
Warrant liability						$ 205,150

Stockholders' Equity (Deficit33

Stockholders' Equity (Deficit) - Restricted Stock Awards (Details) - Chairman - Restricted Stock Award - USD ($)	1 Months Ended		3 Months Ended	6 Months Ended
	Jun. 30, 2016	Dec. 31, 2015	Jun. 30, 2016	Jun. 30, 2016
Stock-based compensation
Shares issued		398,525
Total stock-based compensation			$ 378,470	$ 1,170,000
Vesting on grant date
Stock-based compensation
Shares issued	300,000
Vesting percentage		50.00%
Performance-based vesting conditions
Stock-based compensation
Vesting percentage				50.00%

Stockholders' Equity (Deficit34

Stockholders' Equity (Deficit) - Stock-Based Compensation (Details) - shares	1 Months Ended	6 Months Ended
	Dec. 31, 2015	Jun. 30, 2016
2015 Equity Incentive Plan
Stock-based compensation
Expiration period	10 years
Total shares that may be issued		17,251,115
Additional shares authorized		8,000,000
Shares available for grant		5,429,635
Automatic annual increase in shares authorized, percent of common stock outstanding		3.50%
2015 Equity Incentive Plan | Maximum
Stock-based compensation
Shares available for grant		9,251,115
1997 Stock Option Plan
Stock-based compensation
Expiration period		10 years

Stockholders' Equity (Deficit35

Stockholders' Equity (Deficit) - Preferred Stock (Details) - USD ($)	1 Months Ended
	Aug. 31, 2015	Jun. 30, 2016	Dec. 31, 2015	Dec. 06, 2015
Offerings
Preferred stock, shares authorized		5,000,000	0
Preferred stock, par value per share (in dollars per share)		$ 0.001	$ 0.001
Convertible preferred stock | Series A Preferred Stock
Offerings
Preferred stock, shares authorized				599,997
Preferred stock, par value per share (in dollars per share)				$ 0.01
Convertible preferred stock | Series B Preferred Stock
Offerings
Preferred stock, shares authorized				1,202,497
Preferred stock, par value per share (in dollars per share)				$ 0.01
Convertible preferred stock | Series C Preferred Stock
Offerings
Preferred stock, shares authorized				2,073,749
Preferred stock, par value per share (in dollars per share)				$ 0.01
Convertible preferred stock | Series D Preferred Stock
Offerings
Preferred stock, shares authorized				22,995,265
Preferred stock, par value per share (in dollars per share)				$ 0.01
Convertible preferred stock | Series E Preferred Stock
Offerings
Preferred stock, shares authorized				3,192,537
Preferred stock, par value per share (in dollars per share)				$ 0.01
Convertible preferred stock | Series E Preferred Stock | Private offering
Offerings
Preferred stock, shares sold	2,711,926
Purchase price (in dollars per share)	$ 3.93
Total proceeds	$ 10,700,000
Beneficial conversion feature recognized	$ 406,783

Stockholders' Equity (Deficit36

Stockholders' Equity (Deficit) - Acquisition Transactions (Details)	Dec. 07, 2015$ / sharesshares	Jun. 30, 2016$ / sharesshares	Dec. 31, 2015$ / sharesshares
Significant Transaction
Common stock, par value per share (in dollars per share) | $ / shares		$ 0.001	$ 0.001
Preferred stock, shares issued | shares		0	0
Preferred stock, shares outstanding | shares		0	0
Senseonics Reverse Merger Agreement | Common Stock | Common Shares Exchanged in Reverse Capitalization
Significant Transaction
Common stock, par value per share (in dollars per share) | $ / shares	$ 0.001
Shares issued | shares	1,955,929
Senseonics Reverse Merger Agreement | Common Stock | Common Stock, Senseonics, Inc.
Significant Transaction
Common stock, par value per share (in dollars per share) | $ / shares	$ 0.01
Senseonics Reverse Merger Agreement | Common Stock | Common Stock, Senseonics, Inc. | Common Shares Exchanged in Reverse Capitalization
Significant Transaction
Exchange ratio	2.0975
Senseonics Reverse Merger Agreement | Common Stock | Preferred Stock, Senseonics, Inc. | Common Shares Exchanged in Reverse Capitalization
Significant Transaction
Common stock, par value per share (in dollars per share) | $ / shares	$ 0.001
Shares issued | shares	55,301,674

Related Party Transactions - (D

Related Party Transactions - (Details) - USD ($) $ in Thousands	1 Months Ended		3 Months Ended	6 Months Ended
	Jun. 30, 2016	Dec. 31, 2015	Mar. 31, 2016	Jun. 30, 2016	Dec. 07, 2015
Related party transactions
Proceeds from Notes Payable				$ 17,500
Repayments of Notes Payable				13,284
Energy Capital
Related party transactions
Maximum amount available under facility					$ 10,000
Proceeds from Notes Payable				2,500
Repayments of Notes Payable				2,500
Chairman
Related party transactions
Share-based compensation, amount earned				$ 785
Chairman | Restricted Stock Award
Related party transactions
Restricted stock awarded to board member		398,525
Energy Capital | Energy Capital
Related party transactions
Maximum amount available under facility					$ 10,000
Proceeds from Notes Payable			$ 2,500
Repayments of Notes Payable			$ 2,500
Vesting on grant date | Chairman | Restricted Stock Award
Related party transactions
Restricted stock awarded to board member	300,000
Vesting percentage		50.00%

Fair Value Measurements - Recur

Fair Value Measurements - Recurring (Details) - Recurring - Money market funds - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Fair Value Measurements
Assets, fair value	$ 36,190	$ 3,939
Level 1
Fair Value Measurements
Assets, fair value	$ 36,190	$ 3,939

Fair Value Measurements - Nonre

Fair Value Measurements - Nonrecurring (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Nonrecurring
Fair Value Measurements
Fair value impairment recognized on long-lived assets	$ 0	$ 0	$ 0	$ 0

Income Taxes - Tax Provision (D

Income Taxes - Tax Provision (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Income Taxes
Income tax provision	$ 0	$ 0	$ 0	$ 0