EndoChoice 10-Q 5 Nov 15 2015 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2015	Nov. 02, 2015
Entity [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Sep. 30, 2015
Document Fiscal Year Focus	2,015
Entity Registrant Name	EndoChoice Holdings, Inc.
Entity Central Index Key	1,623,919
Current Fiscal Year End Date	--12-31
Document Fiscal Period Focus	Q3
Entity Filer Category	Non-accelerated Filer
Entity Common Stock, Shares Outstanding (in shares)		24,796,767

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Current assets:
Cash and cash equivalents	$ 47,796	$ 13,761
Short-term investments	25,761	0
Receivables, net	8,399	8,379
Inventories	15,532	13,637
Deferred tax assets	242	970
Prepaid expenses and other current assets	4,042	2,363
Total current assets	101,772	39,110
Property and equipment, net	9,172	9,668
Long-term investments	29,167	0
Intangible assets, net	14,395	16,655
Goodwill	19,989	20,301
Deposits and other long-term assets	716	1,075
Total assets	175,211	86,809
Current liabilities:
Accounts payable	6,688	5,127
Accrued expenses and other current liabilities	9,559	8,328
Current portion of deferred rent	195	55
Deferred revenue	787	1,278
Total current liabilities	17,229	14,788
Long-term debt, net of discount	42,617	38,939
Deferred rent, less current portion	342	607
Deferred tax liabilities	3,758	4,147
Other long-term liabilities	1,128	2,089
Total liabilities	$ 65,074	$ 60,570
Commitments and contingencies
Stockholders’ equity:
Preferred stock, $0.001 par value per share; 50,000,000 shares authorized; no shares issued and outstanding at September 30, 2015 and December 31, 2014	$ 0	$ 0
Common stock, $0.001 par value; 150,000,000 shares authorized; 24,793,841 shares issued and outstanding at September 30, 2015; 14,467,219 shares issued and outstanding at December 31, 2014	25	14
Additional paid-in capital	255,976	125,404
Accumulated deficit	(143,504)	(97,165)
Accumulated other comprehensive loss	(2,360)	(2,014)
Total stockholders’ equity	110,137	26,239
Total liabilities and stockholders’ equity	$ 175,211	$ 86,809

Condensed Consolidated Balance3

Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares	Sep. 30, 2015	Dec. 31, 2014
Statement of Financial Position [Abstract]
Common stock, par value (in usd per share)	$ 0.001	$ 0.001
Common stock, shares authorized (in shares)	150,000,000	150,000,000
Common stock, shares issued (in shares)	24,793,841	14,467,219
Common stock, shares outstanding (in shares)	24,793,841	14,467,219
Preferred Stock, Par or Stated Value Per Share (in usd per share)	$ 0.001	$ 0.001
Preferred Stock, Shares Authorized (in shares)	50,000,000	50,000,000
Preferred Stock, Shares Issued (in shares)	0	0
Preferred Stock, Shares Outstanding (in shares)	0	0

Condensed Consolidated Statemen

Condensed Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Revenues:
GI equipment and supplies	$ 14,684	$ 10,723	$ 43,764	$ 33,648
GI pathology services	3,679	3,446	9,989	9,449
Net revenues	18,363	14,169	53,753	43,097
Cost of revenues:
GI equipment and supplies	10,804	7,122	31,782	21,665
GI pathology services	1,418	1,256	3,718	3,956
Cost of revenues	12,222	8,378	35,500	25,621
Gross profit	6,141	5,791	18,253	17,476
Operating expenses:
Research and development	3,938	5,750	13,787	16,823
Sales and marketing	6,923	6,661	22,723	19,964
General and administrative	5,033	4,272	17,394	11,924
Amortization of intangible assets	690	818	2,067	3,179
Operating expenses	16,584	17,501	55,971	51,890
Operating loss	(10,443)	(11,710)	(37,718)	(34,414)
Other income (expense):
Other income (expense)	360	(948)	(1,271)	(1,225)
Interest expense	(1,163)	(1,151)	(4,257)	(2,240)
Loss on early retirement of debt	0	0	(2,282)	0
Total other expense	(803)	(2,099)	(7,810)	(3,465)
Net loss before income taxes	(11,246)	(13,809)	(45,528)	(37,879)
Income tax expense	(332)	(218)	(811)	(734)
Net loss	(11,578)	(14,027)	(46,339)	(38,613)
Foreign currency translation adjustments	(1,413)	(2,783)	(357)	(2,806)
Change in fair value of available-for-sale securities	11	0	11	0
Other comprehensive loss	(1,402)	(2,783)	(346)	(2,806)
Comprehensive loss	$ (12,980)	$ (16,810)	$ (46,685)	$ (41,419)
Net loss per share attributable to common stockholders, basic and diluted (in usd per share)	$ (0.47)	$ (1.16)	$ (2.34)	$ (3.20)
Weighted-average shares of common stock used to compute net loss per share attributable to common stockholders, basic and diluted (in shares)	24,738,893	12,091,882	19,820,453	12,081,123

Condensed Consolidated Stateme5

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
Cash flows from operating activities:
Net loss	$ (46,339)	$ (38,613)
Adjustments to reconcile net loss to net cash used in operations:
Depreciation and amortization	6,055	6,524
Loss on disposal of fixed assets	372	260
Non-cash interest expense and discount amortization	565	117
Amortization (accretion) of premium (discount) on investment securities, net	195	0
Change in fair value of warrant liability	435	0
Provision for doubtful accounts	872	325
Unrealized foreign currency loss	545	625
Deferred taxes	327	364
Stock-based compensation	4,230	15
Loss on early retirement of debt	2,282	0
Loss on impairment of property and equipment	912	0
Changes in certain working capital components and other assets and liabilities:
Accounts receivable	(971)	735
Inventories	(2,350)	(2,629)
Prepaid expenses and other current assets	(1,755)	(1,040)
Other assets	459	(993)
Accounts payable, accrued expenses, and other liabilities	3,031	1,089
Net cash used in operations	(31,135)	(33,221)
Cash flows from investing activities:
Capital expenditures	(4,977)	(8,193)
Purchases of investment securities	(55,352)	0
Net cash used in investing activities	(60,329)	(8,193)
Cash flows from financing activities:
Borrowings on line of credit	0	18,800
Payments on line of credit	0	(20,993)
Proceeds from term loan	43,000	40,000
Principal payments on term loan	(40,000)	0
Prepayment and end of term fees for early retirement of debt	(2,306)	0
Payments for debt financing fees	(417)	(506)
Principal payments on capital leases	0	(55)
Proceeds from issuance of member units, net	31,000	141
Proceeds from issuance of common stock, net of issuance costs	94,186	0
Proceeds from option exercises	71	0
Net cash provided by financing activities	125,534	37,387
Effect of exchange rate changes on cash and cash equivalents	(35)	1
Net increase (decrease) in cash and cash equivalents	34,035	(4,026)
Cash and cash equivalents, beginning of period	13,761	8,040
Cash and cash equivalents, end of period	47,796	4,014
Supplemental disclosure of cash flow information:
Interest, net of capitalized interest	2,492	2,124
Income taxes	$ 43	$ 0

Background and Basis of Present

Background and Basis of Presentation	9 Months Ended
	Sep. 30, 2015
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Background and Basis of Presentation	Background and Basis of Presentation Description of Business EndoChoice Holdings, Inc. and its subsidiaries ("EndoChoice", or the "Company") is a medical device company headquartered in Alpharetta, Georgia focused exclusively on designing and commercializing a platform of innovative products for gastrointestinal, or GI, caregivers. The Company offers a comprehensive range of products and services that span single use devices and infection control, pathology, and imaging technologies. Since the Company began commercial operations in 2008, it has developed an extensive line of devices and infection control products and acquired pathology and scope repair services providers. Basis of Presentation The accompanying unaudited condensed consolidated financial statements are presented in accordance with United States generally accepted accounting principles pursuant to the rules and regulations of the Securities and Exchange Commission regarding interim financial reporting. The unaudited condensed consolidated financial statements include the accounts of EndoChoice Holdings, Inc. (formerly ECPM Holdings, LLC prior to the corporate conversion discussed below; EndoChoice Innovation Center, Ltd.; EndoChoice GmbH; and Robert S. Smith, M.D., Inc. d/b/a EndoChoice Pathology ("EC Pathology")). The Company also owns a 67% interest in EndoChoice Israel, Ltd., which had no material transactions during the three and nine months ended September 30, 2015 or 2014. All significant intercompany transactions and balances were eliminated in consolidation. The accompanying unaudited condensed consolidated financial statements have been prepared on the same basis as the audited annual financial statements and, in the opinion of management, reflect all adjustments, which include only normal recurring adjustments, necessary for the fair statement of the Company’s financial position as of September 30, 2015 and the results of its operations and its cash flows for the three and nine months ended September 30, 2015 and 2014. The condensed consolidated financial statements, including these condensed notes, exclude some of the disclosures required in annual consolidated financial statements. The accompanying unaudited condensed consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements and notes thereto included in the Company’s final prospectus filed with the Securities Exchange Commission (SEC) on June 5, 2015 pursuant to Rule 424(b) under the Securities and Exchange Act of 1933, as amended, relating to the Company’s Registration Statement on Form S-1 (File No. 333-203883). The results for the three and nine months ended September 30, 2015 are not necessarily indicative of results to be expected for the year ending December 31, 2015, any other interim periods, or any future year or period. Corporate Conversion On June 4, 2015, ECPM Holdings, LLC converted into a Delaware corporation pursuant to a statutory conversion and changed its name to EndoChoice Holdings, Inc. As a result of the corporate conversion, the holders of the different classes and series of units of ECPM Holdings, LLC became holders, in aggregate, of 17,580,918 shares of common stock and 579,869 shares of restricted stock in EndoChoice Holdings, Inc. In addition, holders of options and warrants to purchase units of ECPM Holdings, LLC received an aggregate of 339,373 options and 187,161 warrants to purchase shares of EndoChoice Holdings, Inc. common stock. The accompanying condensed consolidated financial statements and related notes thereto have been retroactively adjusted to account for the effect of the corporate conversion for all periods presented prior to June 4, 2015. Initial Public Offering On June 10, 2015, the Company completed an initial public offering (the "IPO", or the "offering") of 7,302,500 shares of common stock, including 952,500 shares sold to underwriters for the exercise of their option to purchase additional shares, at an offering price of $15.00 per share. Of the 7,302,500 common shares sold in the offering, 7,052,500 shares were sold by the Company and 250,000 shares were sold by existing stockholders. The Company received net proceeds from the IPO of approximately $94,186 after deducting underwriting discounts and commissions of $7,405 and offering expenses of $4,197 . Net Loss Per Share of Common Stock Basic and diluted net loss per share of common stock reflect the conversion of all member units of ECPM Holdings, LLC to shares of EndoChoice common stock by treating all units as if they had been converted as of the beginning of the periods presented. Basic and diluted net loss per share amounts do not give effect to potentially dilutive securities where the impact would have been anti-dilutive. Reclassifications Certain prior period amounts in the accompanying condensed consolidated financial statements have been reclassified to conform to the current period presentation.

Summary of Significant Accounti

Summary of Significant Accounting Policies	9 Months Ended
	Sep. 30, 2015
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	Summary of Significant Accounting Policies There have been no significant changes to the accounting policies during the three and nine months ended September 30, 2015 as compared to the significant accounting policies described in Note 3 of the “Notes to consolidated financial statements” in the Company’s December 31, 2014 audited financial statements included in the final prospectus filed with the SEC on June 5, 2015, other than as detailed below. Cash and Cash Equivalents The Company considers all short-term, highly liquid investments with remaining maturities at the purchase date of three months or less to be cash equivalents. The Company invests the majority of its cash in interest-bearing accounts in U.S. banks, and the Company’s foreign subsidiaries maintain cash accounts denominated in Euros and Shekels. Foreign currency accounts are remeasured to U.S. dollars at each month-end. At times, deposit balances in the U.S. may exceed the FDIC insured limit. The Company had $34,928 and $0 of investments in money market funds classified as cash equivalents as of September 30, 2015 and December 31, 2014, respectively. Investment Securities The Company’s short-term and long-term investments consist of U.S. Treasury securities, U.S. government agency securities, commercial paper, and corporate securities. The Company’s investments are classified as available-for-sale and reported at fair value, with the unrealized gains and losses, net of taxes, reported as a component of stockholders’ equity. Management determines the appropriate classification of its investments at the time of purchase and re-evaluates the designations at each balance sheet date. The Company classifies its investment securities as either short-term or long-term based on each instrument’s underlying contractual maturity date. Investment securities not classified as cash equivalents that have remaining maturities of less than one year are classified as short-term investments, and investment securities with remaining maturities one year or greater are classified as long-term investments. The cost of investment securities sold is based on the specific identification method. In addition, interest income for investments in fixed maturity securities is recorded when earned using an effective yield method, giving effect to the amortization of premiums and accretion of discounts. The Company regularly reviews its investment portfolio to determine if any security is other-than-temporarily impaired, which would require the Company to record an impairment charge in the period any such determination is made. In making this judgment, the Company evaluates, among other things, the duration and extent to which the fair value of a security is less than its cost; the financial condition of the issuer and any changes thereto; and the Company’s intent to sell, or whether it will more likely than not be required to sell, the security before recovery of its amortized cost basis. The Company’s assessment on whether a security is other-than-temporarily impaired could change in the future due to new developments or changes in assumptions related to any particular security. Net Loss per Common Share Basic net loss per common share is computed by dividing the net loss attributable to common stockholders by the weighted-average number of common shares outstanding during the period. Diluted net loss per common share is computed by dividing the net loss attributable to common stockholders by the weighted-average number of common shares and dilutive common stock equivalents outstanding for the period. Stock options, warrants, and restricted shares are considered to be common stock equivalents and are evaluated for dilutive effect using the treasury-stock method. Basic and diluted net loss per common share are the same for the three and nine months ended September 30, 2015 and 2014 due to the Company's reported net losses during those periods and the exclusion of dilutive common stock equivalents from diluted weighted-average shares of common stock outstanding.

Recent Accounting Pronouncement

Recent Accounting Pronouncements	9 Months Ended
	Sep. 30, 2015
Accounting Changes and Error Corrections [Abstract]
Recent Accounting Pronouncements	Recent Accounting Pronouncements Adoption of New Accounting Pronouncements In April 2015, the FASB issued Accounting Standards Update ("ASU") 2015-03, Interest – Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs. ASU 2015-03 will require an entity to present debt issuance costs in the balance sheet as a direct deduction from the carrying amount of the related debt liability rather than as an asset, consistent with the treatment of debt discounts. The amendment does not change the recognition and measurement guidance for debt issuance costs, and the amortization of debt issuance costs will continue to be reported as interest expense. ASU 2015-03 is effective for annual reporting periods beginning after December 15, 2016. The Company early adopted ASU 2015-03 in June 2015, as permitted, and applied the new guidance retrospectively to the condensed consolidated balance sheet as of December 31, 2014. There was no impact from the early adoption of ASU 2015-03 on the condensed consolidated statements of comprehensive loss or the condensed consolidated statements of cash flows. Future Adoption of Accounting Pronouncements In July 2015, the FASB issued ASU 2015-11, Simplifying the Measurement of Inventory. ASU 2015-11 changes the measurement principle for inventory for entities using FIFO or average cost from the lower of cost or market to lower of cost and net realizable value. ASU 2015-11 defines net realizable value as estimated selling prices in the ordinary course of business less reasonably predictable costs of completion, disposal, and transportation. The guidance is effective for reporting periods beginning after December 15, 2016 and interim periods within those fiscal years with early adoption permitted. ASU 2015-11 should be applied prospectively. We are currently evaluating the impact of the future adoption of this standard, but we do not expect the adoption to have a material effect on our consolidated financial statements. In August 2014, the FASB issued ASU No. 2014-15, Presentation of Financial Statements – Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern. ASU 2014-15 will explicitly require management to assess an entity’s ability to continue as a going concern at each annual and interim period. Related footnote disclosures will be required if conditions give rise to substantial doubt about an entity’s ability to continue as a going concern within one year after the report issuance date. If conditions do not give rise to substantial doubt, no disclosures will be required specific to going concern uncertainties. The ASU defines substantial doubt using a likelihood threshold of “probable” similar to the current use of that term in U.S. GAAP for loss contingencies and provides example indicators. ASU 2014-15 is effective for reporting periods ending after December 15, 2016, and early adoption is permitted. We are currently evaluating the impact of the future adoption of this standard, but we do not expect the adoption to have a material effect on our consolidated financial statements. In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606). ASU 2014-09 will eliminate transaction- and industry-specific revenue recognition guidance under current U.S. GAAP and replace it with a principle based approach for determining revenue recognition. ASU 2014-09 will require that companies recognize revenue based on the value of transferred goods or services as they occur in the contract. The ASU also will require additional disclosure about the nature, amount, timing, and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments and assets recognized from costs incurred to obtain or fulfill a contract. ASU 2014-09 is effective for reporting periods beginning after December 15, 2017. Earlier adoption is permitted only as of annual reporting periods beginning after December 15, 2016, including interim reporting periods within that reporting period. Entities can transition to the standard either retrospectively or as a cumulative-effect adjustment as of the date of adoption. We are currently evaluating the impact of the future adoption of this standard.

Fair Value Measurements

Fair Value Measurements	9 Months Ended
	Sep. 30, 2015
Fair Value Disclosures [Abstract]
Fair Value Measurements	Fair Value Measurements Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date under current market conditions. The Company categorizes its financial assets and liabilities into a three-level hierarchy based on the priority of the inputs to the valuation, pursuant to the Fair Value Measurements and disclosures of ASC Topic 820. The fair value hierarchy gives the highest priority to quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). If the inputs used to measure fair value fall within different levels of the hierarchy, the category level is based on the lowest priority level input that is significant to the overall fair value measurement of the instrument. Level 1 – Quoted prices available in active markets for identical investments as of the reporting date; Level 2 – Inputs other than quoted prices for identical assets or liabilities in active markets that are either directly or indirectly observable as of the reporting date; and, Level 3 – Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the asset or liability. These inputs reflect management judgment about the assumptions that market participants would use in valuing the asset or liability. As of September 30, 2015, the Company has categorized the following as Level 3 within the fair value hierarchy: • Contingent liabilities for accrued earn-out consideration were recorded at fair value on the acquisition date and are remeasured periodically based on the then assessed fair value. They are adjusted if deemed necessary and have been recorded in other long-term liabilities within the condensed consolidated balance sheets. The increases or decreases in the fair value of these contingent consideration liabilities can result from changes in anticipated revenue levels and changes in assumed discount periods and rates. As the fair value measures are based on significant inputs that are not observable in the market, they are categorized as Level 3. Warrants issued to Triple Point Capital, LLC in connection with the Growth Capital Facility (as defined in Note 10) were previously categorized as Level 3 within the fair value level hierarchy. As a result of the corporate conversion on June 4, 2015 (see Note 1), the warrants were converted from warrants to purchase 2,091,175 Class A member units in ECPM Holdings, LLC at an exercise price of $0.96 to warrants to purchase 187,161 shares of EndoChoice Holdings, Inc. common stock at an exercise price of $10.95 . Accordingly, the warrant liability was remeasured to fair value on the date of the corporate conversion and reclassified from other long-term liabilities to additional paid-in capital on the condensed consolidated balance sheet. The Company recognized losses of $0 and $435 within other expense on the condensed consolidated statement of comprehensive loss during the three and nine months ended September 30, 2015, respectively, due to increases in the fair value of the warrant liability during those periods through the date of the corporate conversion. The fair value of the warrant liability was determined using the Black-Scholes-Merton option pricing model, which resulted in an estimate of fair value at the time of conversion that was consistent with the value of the common shares issued to the warrant holders upon the full exercise of the warrants on June 16, 2015. As of September 30, 2015, the Company holds a portfolio of available-for-sale investment securities recorded at fair value on the condensed consolidated balance sheets (as discussed in Note 5). The Company had no marketable securities as of December 31, 2014. Other financial assets and liabilities recorded in the accompanying condensed consolidated balance sheets as of September 30, 2015 and December 31, 2014 that require fair value disclosure include cash and cash equivalents, accounts receivable, accounts payable and accrued expenses, and long-term debt. The estimated fair values of these financial assets and liabilities as of September 30, 2015 and December 31, 2014 reasonably approximate their respective carrying values as reported within the condensed consolidated balance sheets. For the Company’s assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3), the following table provides a reconciliation of the beginning and ending balances for each category therein and gains or losses recognized during the period: Fair value measurements using significant unobservable inputs (level 3): Contingent liabilities for accrued earn-out acquisition consideration Balance as of December 31, 2014 $ 632 Foreign currency translation adjustments (23 ) Balance as of September 30, 2015 $ 609 Contingent liabilities for accrued earn-out acquisition consideration are included in other long-term liabilities within the condensed consolidated balance sheets.

Financial Instruments Financial

Financial Instruments Financial Instruments	9 Months Ended
	Sep. 30, 2015
Investments, Debt and Equity Securities [Abstract]
Financial Instruments Disclosure	Financial Instruments The table below summarizes the Company’s available-for-sale securities' amortized cost, gross unrealized gains, gross unrealized losses, and fair value by significant investment category recorded as short-term investment securities or long-term investment securities as of September 30, 2015 (refer to Note 4 for discussion of our fair value hierarchy). The Company had no investment securities as of December 31, 2014. Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Short-term Investments Long-term Investments Level 1: U.S. Treasuries $ 4,022 $ 4 $ — $ 4,026 $ 2,011 $ 2,015 U.S. government agencies 3,693 4 — 3,697 — 3,697 Subtotal 7,715 8 — 7,723 2,011 5,712 Level 2: Commercial paper 3,993 — — 3,993 3,993 — Corporate securities 43,209 20 (17 ) 43,212 19,757 23,455 Subtotal 47,202 20 (17 ) 47,205 23,750 23,455 Total $ 54,917 $ 28 $ (17 ) $ 54,928 $ 25,761 $ 29,167 The amortized cost and fair value of short-term and long-term investments as of September 30, 2015 are shown below by contractual maturity. Actual maturities may differ from contractual maturities as securities may be restructured, called, or prepaid. Amortized Cost Fair Value Due to mature: Less than one year $ 25,758 $ 25,761 One to two years 29,159 29,167 Total $ 54,917 $ 54,928 No realized gains and losses were recognized on the sale of investments for any of the periods presented. As of September 30, 2015, net unrealized gains of $11 , net of tax, were included in accumulated other comprehensive loss in the accompanying condensed consolidated balance sheets. There were no transfers between Level 1 and Level 2 fair value measurements during the nine months ended September 30, 2015, and there were no changes in the valuation techniques used by the Company.

Inventories

Inventories	9 Months Ended
	Sep. 30, 2015
Inventory Disclosure [Abstract]
Inventories	Inventories Inventories consisted of the following: September 30, 2015 December 31, 2014 Raw materials $ 5,737 $ 4,428 Work-in-process 2,688 3,282 Finished goods 7,107 5,927 Total inventories $ 15,532 $ 13,637

Property and Equipment

Property and Equipment	9 Months Ended
	Sep. 30, 2015
Property, Plant and Equipment [Abstract]
Property and Equipment	Property and Equipment Property and equipment consisted of the following: September 30, 2015 December 31, 2014 Furniture and fixtures $ 1,183 $ 925 Leasehold improvements 2,264 2,053 Computers and software 2,957 2,864 Demonstration equipment 6,772 6,553 Machinery and equipment 5,233 3,666 Construction in progress 229 — Total 18,638 16,061 Accumulated depreciation (9,466 ) (6,393 ) Property and equipment, net $ 9,172 $ 9,668 Depreciation expense was $1,338 and $1,425 for the three months ended September 30, 2015 and 2014, respectively, and $3,988 and $3,345 for the nine months ended September 30, 2015 and 2014, respectively. During the nine months ended September 30, 2015, we recognized an impairment of $912 on demonstration equipment due to the replacement of certain of this equipment with newer versions of Fuse ®. N o impairment on demonstration equipment was recognized during the three months ended September 30, 2015.

Goodwill and Other Intangible A

Goodwill and Other Intangible Assets	9 Months Ended
	Sep. 30, 2015
Goodwill and Intangible Assets Disclosure [Abstract]
Goodwill and Other Intangible Assets	Goodwill and Other Intangible Assets The gross carrying amount of goodwill and other intangible assets and the related accumulated amortization for amortizable intangible assets as of September 30, 2015 and December 31, 2014 are as follows: September 30, 2015 December 31, 2014 Gross carrying amount Accumulated amortization Net carrying value Gross carrying amount Accumulated amortization Net carrying value Amortizable intangible assets: Customer relationships $ 1,721 $ (704 ) $ 1,017 $ 1,845 $ (595 ) $ 1,250 Developed technology 20,290 (6,975 ) 13,315 20,435 (5,109 ) 15,326 Other intangible assets 2,180 (2,117 ) 63 2,203 (2,124 ) 79 Total amortizable intangible assets $ 24,191 $ (9,796 ) $ 14,395 $ 24,483 $ (7,828 ) $ 16,655 Unamortizable intangible assets: Goodwill $ 19,989 $ — $ 19,989 $ 20,301 $ — $ 20,301 The Company recorded amortization expense related to the amortizable intangible assets of $690 and $818 for the three months ended September 30, 2015 and 2014, respectively, and $2,067 and $3,179 for the nine months ended September 30, 2015 and 2014, respectively. As of September 30, 2015, estimated aggregate future amortization expense for the intangible assets is as follows: Estimated amortization expenses: 2015 (remaining) $ 689 2016 2,714 2017 2,714 2018 2,714 2019 2,714 2020 2,699 Thereafter 151 Total $ 14,395 Changes in the carrying amount of amortizable intangible assets and goodwill for the nine months ended September 30, 2015 are as follows: Amortizable intangible assets: Balance at December 31, 2014 16,655 Amortization (2,067 ) Foreign currency translation adjustment (193 ) Balance at September 30, 2015 $ 14,395 Goodwill: Balance at December 31, 2014 20,301 Foreign currency translation adjustment (312 ) Balance at September 30, 2015 $ 19,989

Accrued Expenses and Other Curr

Accrued Expenses and Other Current Liabilities	9 Months Ended
	Sep. 30, 2015
Payables and Accruals [Abstract]
Accrued Expenses and Other Current Liabilities	Accrued Expenses and Other Current Liabilities Accrued expenses and other current liabilities consisted of the following: September 30, 2015 December 31, 2014 Payroll and employee related expenses $ 5,319 $ 4,293 Accrued warranty costs 712 803 Sales and other taxes payable 249 412 Income taxes payable 413 26 Other accrued liabilities 2,866 2,794 Accrued expenses and other current liabilities $ 9,559 $ 8,328

Debt

Debt	9 Months Ended
	Sep. 30, 2015
Debt Disclosure [Abstract]
Debt	Debt The Company had $42,617 and $38,939 in total debt outstanding, net of discount, as of September 30, 2015 and December 31, 2014, respectively, which was fully included in long-term debt on our condensed consolidated balance sheets. Effective June 30, 2015, the Company refinanced its outstanding debt by entering into a new term loan credit and security agreement (the "Term Loan Credit Agreement") and a new revolving loan credit and security agreement (the "Revolving Loan Credit Agreement", and together with the Term Loan Credit Agreement, the "Credit Agreements") each dated June 30, 2015 (the "Closing Date") by and among EndoChoice and certain of its subsidiaries, MidCap Financial Trust, and Silicon Valley Bank. The Credit Agreements contain representations and covenants typical for credit arrangements of comparable size in the medical device industry, including certain financial covenants related to minimum liquidity levels and net revenues. The Credit Agreements also contain customary events of default. If an event of default occurs and is not cured within any applicable grace period or is not waived, the creditors are entitled to take various actions, including, without limitation, the acceleration of amounts due thereunder, termination of commitments under the Credit Agreements, and realization upon the collateral securing the credit facilities. Term Loan Facility The Term Loan Credit Agreement provides for a five -year $43,000 senior term loan facility (the "Term Loan Facility") secured by a lien on substantially all of the assets of EndoChoice and its domestic subsidiaries, other than intellectual property, which is subject to a negative pledge only. The Term Loan Facility bears interest at a fixed rate of 9.5% per year and is subject to an end of term fee of 2.95% on the $43,000 advanced under the facility on the Closing Date. Interest-only payments are due during the first 30 months of the Term Loan Facility, with principal payments beginning in January 2018 in equal monthly installments until maturity. The end of term fee is not applied to scheduled principal payments and is due only upon the earlier of repayment or maturity of the loan. The end of term fee will be accrued as additional interest expense using the effective interest rate method over the term of the loan. We incurred debt issuance costs of $417 in connection with entering into the Term Loan Facility. Pursuant to our adoption of ASU 2015-03 as discussed in Note 3, we recognized the debt issuance costs, including deferred financing costs, as a direct deduction from the carrying amount of the long-term debt outstanding under the Term Loan Facility. The debt issuance costs will be amortized each period after the Closing Date using the effective interest method and will be reported as interest expense. Proceeds from the Term Loan Facility were used to voluntarily prepay $40,000 of outstanding loans under the Growth Capital Loan and Security Agreement dated February 18, 2014 with Triple Point Capital, LLC (the "Growth Capital Facility"), to pay $2,306 of prepayment and end of term fees, and to pay $517 of other fees and expenses in connection with the refinancing. Revolving Credit Facility The Revolving Loan Credit Agreement provides for a five -year $15,000 senior revolving credit facility (the "Revolving Credit Facility") also secured by a lien on substantially all of the assets of EndoChoice and its domestic subsidiaries, other than intellectual property, which is subject to a negative pledge only. Amounts drawn under the Revolving Credit Facility will bear interest at the LIBOR Rate (as defined in the Revolving Loan Credit Agreement) plus 5.25% per year, while the undrawn portion is subject to an unused line fee of 0.50% per year. No amounts were drawn or outstanding under the Revolving Credit Facility as of September 30, 2015. The Revolving Credit Facility expires on June 30, 2020. Early Debt Retirement Concurrently with entering into the Credit Agreements described above, on June 30, 2015, the Company repaid all outstanding loans under and terminated the Growth Capital Facility with Triple Point Capital, LLC. In connection with such termination, the Company recognized a loss on early retirement of debt of $ 2,282 in the condensed consolidated statements of comprehensive loss for the nine months ended September 30, 2015. In accordance with Accounting Standards Codification (“ASC”) Section 470-50-40-2 - Debt - Modifications and Extinguishments, the loss on early retirement of debt was calculated based on the difference between the amount paid to retire the debt less its net carrying value on the repayment date, adjusted for the write-off of certain unamortized balances such as deferred financing costs and debt discounts. No loss on early retirement of debt was recognized during the three months ended September 30, 2015. Also concurrently with entering into the Credit Agreements described above, on June 30, 2015, the Company terminated the Loan and Security Agreement dated as of September 9, 2013 for its line of credit with Silicon Valley Bank. There were no outstanding amounts owed under the line of credit with Silicon Valley Bank at the time of termination.

Stock-based Compensation

Stock-based Compensation	9 Months Ended
	Sep. 30, 2015
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Stock-based Compensation	Stock-based Compensation Equity Incentive Plans Our equity incentive plans are broad-based, long-term programs intended to attract, motivate, and retain talented non-employee directors, officers, and employees and to align their interests with stockholders. For the three months ended September 30, 2015, the Company made new grants under the following equity incentive plans: 2015 Omnibus Equity Incentive Plan In June 2015, the Company adopted the 2015 Omnibus Equity Incentive Plan (the "2015 Plan"). The 2015 plan allows for the granting of stock options, stock appreciation rights, restricted stock awards, restricted stock units, performance unit awards, performance share awards, cash-based awards, and other stock-based awards to eligible individuals. A total of 1,260,664 shares of our common stock were reserved for issuance under the 2015 Plan. As of September 30, 2015, 568,713 stock options and 639,067 shares of restricted stock have been granted under the 2015 Plan. The 2015 Plan contains an “evergreen” provision allowing for an annual increase in the number of shares of our common stock available for issuance under the 2015 Plan on January 1 of each year during the period beginning January 1, 2016 and ending on (and including) January 1, 2025. The annual increase in the number of shares will be equal to four percent ( 4% ) of the total number of shares of common stock outstanding on December 31st of the preceding calendar year; provided, however, that our board of directors is authorized to act prior to the first day of any calendar year to determine if the increase will be a lesser number of shares of common stock than would otherwise occur. Employee Stock Purchase Plan In June 2015, the Company adopted an Employee Stock Purchase Plan (the "ESPP"). The ESPP is designed to allow our eligible employees to purchase shares of our common stock with accumulated payroll deductions of up to 15% , subject to a purchase limitation of the lesser of 5,000 shares per offering period or $25 in fair market value of shares of common stock (determined at the time the option to purchase shares under the ESPP is granted) per annual period. The ESPP is intended to qualify under Section 423 of the Internal Revenue Code and is administered by the compensation committee of the Board of Directors. The first offering period under the ESPP began on July 1, 2015 and concludes on December 31, 2015. Stock Options Following is a summary of stock option activity for the nine months ended September 30, 2015: Number of Options Weighted average exercise price Weighted average remaining contractual term Outstanding at December 31, 2014 341,345 $ 2.30 5.2 years Granted 568,713 16.01 Exercised (25,197 ) 3.02 Forfeited (1,130 ) 3.32 Outstanding at September 30, 2015 883,731 11.10 7.9 years Vested and exercisable at September 30, 2015 316,518 $ 2.32 We estimate the fair value of stock options at the grant date using the Black-Scholes-Merton option pricing model. As of September 30, 2015, there was $3,332 of total unrecognized compensation cost related to stock options. These costs are expected to be recognized over a weighted average period of 3.8 years . Restricted Stock Following is a summary of the restricted stock activity for the nine months ended September 30, 2015: Number of Restricted Stock Shares Unvested at December 31, 2014 715,577 Granted 788,153 Vested (345,813 ) Forfeited (14,482 ) Unvested at September 30, 2015 1,143,435 As of September 30, 2015, total unrecognized compensation cost related to the restricted stock shares was $10,845 , net of estimated forfeitures, which is expected to be recognized over a weighted-average period of 3.4 years . Estimated Grant Date Fair Values The Company estimated the grant-date fair values of restricted stock grants made during three months ended September 30, 2015 based on the adjusted closing price of EndoChoice Holdings, Inc. common shares on the respective grant dates. For grants made prior to our initial public offering, the Company estimated the underlying grant-date fair values of the restricted stock shares using methodologies, approaches, and assumptions consistent with the American Institute of Certified Public Accountants Accounting and Valuation Guide, Valuation of Privately-Held-Company Equity Securities Issued as Compensation (the “AICPA Practice Guide") . For grants made during the second quarter of 2015, including for determining changes in grant-date fair values associated with the modification that occurred on May 7, 2015 discussed further below, the Company completed a valuation of its equity utilizing the probability-weighted expected return method (“PWERM”) as outlined in the AICPA Practice Aid. The company utilized the PWERM because it could reasonably estimate the form and timing of a potential liquidity event, as preparations for the Company’s IPO had commenced. Under the PWERM valuation method, the per share value of equity is estimated based upon the probability-weighted present value of expected future equity values under various possible future liquidity event scenarios. For grants made prior to second quarter of 2015, the Company utilized the option pricing method (“OPM"), an accepted valuation method under the AICPA Practice Guide. The OPM values each equity class by creating a series of call options on the equity value, with exercise prices based on the liquidation preferences, participation rights, and strike prices of derivatives. Prior to starting preparations for the Company’s IPO, the OPM was utilized because the Company could not reasonably estimate the form and timing of potential liquidity events. Stock-based Compensation Expense Stock-based compensation expense is recorded within the operating expense captions in the condensed consolidated statements of comprehensive loss based on the employees receiving the awards. We recognized stock-based compensation expense as follows during the three and nine months ended September 30, 2015 and 2014: Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 Cost of revenues $ 35 $ — $ 114 $ — Research and development 76 1 595 3 Sales and marketing 147 1 548 3 General and administrative 471 3 2,973 9 Total $ 729 $ 5 $ 4,230 $ 15 Stock-based compensation expense during the three and nine months ended September 30, 2015 includes $ 0 , and $3,496 of previously unrecognized compensation cost that was incurred in June 2015 for restricted stock grants that vested in connection with our initial public offering, or IPO, discussed in Note 1. The restricted stock grants made prior to the IPO contained vesting criteria based on both service ( four years) and performance (the achievement of a minimum valuation threshold upon a liquidity event or initial public offering). The minimum valuation threshold was achieved in connection with our IPO. The Black-Scholes option pricing model is used to estimate the fair value of stock options granted under the Company’s stock-based compensation plans and rights to acquire stock granted under the Company’s ESPP. The weighted average estimated fair values of stock options, the rights to acquire stock granted, and the weighted average assumptions used in calculating those fair values were as follows: Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 Stock Options Risk free interest rate 1.6 % — % 1.6 % — % Expected term (in years) 5.0 — 5.0 — Expected volatility 45.0 % — % 45.0 % — % Weighted average fair value at grant date $ 6.42 $ — $ 6.42 $ — Employee Stock Purchase Plan Risk free interest rate 0.1 % — % 0.1 % — % Expected term (in years) 0.5 — 0.5 — Expected volatility 47.0 % — % 47.0 % — % Weighted average fair value at grant date $ 4.65 $ — $ 4.65 $ —

Net Loss per Common Share

Net Loss per Common Share	9 Months Ended
	Sep. 30, 2015
Earnings Per Share [Abstract]
Net Loss per Common Share	Net Loss per Common Share After giving effect to the corporate conversion on a retroactive basis as described in Note 1, the following table provides a reconciliation of the numerator and denominator used in calculating basic and diluted net loss per share attributable to common stockholders for the three and nine months ended September 30, 2015 and 2014. Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 Numerator: Net loss attributable to common stockholders $ (11,578 ) $ (14,027 ) $ (46,339 ) $ (38,613 ) Denominator: Weighted-average common shares outstanding - basic 24,738,893 12,091,882 19,820,453 12,081,123 Dilutive effect of stock options, warrants, and restricted stock units( 1) — — — — Weighted-average common shares outstanding - diluted 24,738,893 12,091,882 19,820,453 12,081,123 Net loss per share attributable to common stockholders - basic and diluted $ (0.47 ) $ (1.16 ) $ (2.34 ) $ (3.20 ) (1) Potentially dilutive stock options, warrants, and restricted stock were excluded from the calculation of diluted weighted-average shares outstanding as they would have had an anti-dilutive effect due to losses reported during the three and nine months ended September 30, 2015 and 2014. The treasury stock method is used to determine the dilutive effect of the Company’s potentially dilutive securities. The following securities were excluded from the calculation of diluted shares outstanding due to their anti-dilutive effect: September 30, 2015 September 30, 2014 Stock options 883,731 341,345 Warrants for common stock 4,061 187,161 Restricted stock 1,143,435 — Total 2,031,227 528,506

Income Taxes

Income Taxes	9 Months Ended
	Sep. 30, 2015
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes Prior to our conversion to a corporation on June 5, 2015, we were organized as a limited liability company and had elected to be taxed as a corporation subject to applicable domestic and foreign income tax laws. Therefore, the corporate conversion had no impact on our income taxes, deferred tax assets, or deferred tax liabilities; however, our net operating loss carryforwards could be subject to limitation based on the ownership changes associated with our initial public offering in June 2015. Income taxes are determined using an estimated annual effective tax rate applied against income, which are then adjusted for the tax impacts of certain discrete items. The Company recorded income tax expense of $332 and $218 during the three months ended September 30, 2015 and September 30, 2014, respectively, resulting in effective rates of 2.95% and 1.58% , respectively. The Company recorded income tax expense of $811 and $734 during the nine months ended September 30, 2015 and September 30, 2014, respectively, resulting in effective rates of 1.78% and 1.94% , respectively. The Company updates its annual effective income tax rate each quarter, and if the estimated effective income tax rate changes, a cumulative adjustment is made. The low effective tax rates for the three and nine months ended September 30, 2015 and 2014 are primarily due to full valuation allowances against certain deferred tax assets. The Company evaluates the realizability of the deferred tax assets on a jurisdictional basis at each reporting date. Accounting for income taxes guidance requires that a valuation allowance be established when it is more-likely than-not that all or a portion of the deferred tax assets will not be realized. As part of the evaluation, the Company reviews both positive and negative evidence to determine if a valuation allowance is needed. The Company’s review of positive evidence included the review of in-process tax planning strategies, favorable historical results and forecasted pretax income. Negative evidence includes a forecasted current year loss and near-term industry challenges. In circumstances where there is sufficient negative evidence indicating that the deferred tax assets are not more-likely than-not realizable, the Company establishes a valuation allowance. The Company determined that there was sufficient evidence to establish that the Company’s current recorded valuation allowance against certain deferred tax assets remains reasonable. The Company will monitor the need for additional valuation allowances at each quarter in the future and if the negative evidence outweighs the positive evidence an allowance will be recorded. No liability for uncertain tax positions has been recorded as of September 30, 2015 or December 31, 2014.

Commitments and Contingencies

Commitments and Contingencies	9 Months Ended
	Sep. 30, 2015
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies The Company has certain minimum obligations under noncancelable operating leases, principally in connection with office and warehouse space. The Company has entered into noncancelable lease agreements, which contain provisions for rent-free periods. The total amount of rental payments due over the lease terms are being charged to rent expense on the straight-line method over the terms of the leases. Rent expense associated with noncancelable operating leases totaled $320 and $297 for the three months ended September 30, 2015 and 2014, respectively, and $929 and $926 for the nine months ended September 30, 2015 and 2014, respectively. Future minimum lease payments under noncancelable operating leases at September 30, 2015 are as follows: Amount Year: 2015 (remaining) $ 386 2016 1,518 2017 1,225 2018 912 2019 628 2020 21 Total $ 4,690

Segment, Geographical, and Cust

Segment, Geographical, and Customer Concentration	9 Months Ended
	Sep. 30, 2015
Segment Reporting [Abstract]
Segment, Geographical, and Customer Concentration	Segment, Geographical, and Customer Concentration Operating segments are defined as components of an enterprise for which separate financial information is available and evaluated regularly by the chief operating decision maker, or decision-making group, in deciding how to allocate resources and in assessing performance. The Company globally manages the business within one reportable segment, which is consistent with how management reviews the business, makes investing and resource allocation decisions, and assesses operating performance. The Company’s geographic regions consist of the United States and other areas, which are referred to as international. The following table represents net revenues by geographic area based on the location of the customer during the three and nine months ended September 30, 2015 and 2014: Three Months Ended Nine Months Ended 2015 2014 2015 2014 United States $ 16,241 $ 13,432 $ 48,141 $ 39,733 International 2,122 737 5,612 3,364 Total $ 18,363 $ 14,169 $ 53,753 $ 43,097 For the three and nine months ended September 30, 2015 and 2014, no customers accounted for greater than 10% of revenues. Additionally, no customers accounted for greater than 10% of accounts receivable as of September 30, 2015 or December 31, 2014. The composition of the Company’s long-lived assets, consisting of property and equipment, amortizable intangible assets, and goodwill by geographic area is set forth below: September 30, 2015 December 31, 2014 United States $ 5,669 $ 6,516 Israel 31,967 33,855 Other Regions 5,920 6,253 Total $ 43,556 $ 46,624

Subsequent Events Subsequent Ev

Subsequent Events Subsequent Events	9 Months Ended
	Sep. 30, 2015
Subsequent Events [Abstract]
Subsequent Events	Subsequent Events In October 2015, the Company entered into a noncancelable operating lease for additional office space in Alpharetta, Georgia and extended the terms of its other leases for office space in Alpharetta, Georgia to conform all of the leases to a common end date. The new and amended operating lease agreements resulted in an aggregate increase to future minimum lease payments of $3,878 through 2022.

Summary of Significant Accoun22

Summary of Significant Accounting Policies (Policies)	9 Months Ended
	Sep. 30, 2015
Accounting Policies [Abstract]
Cash and Cash Equivalents	Cash and Cash Equivalents The Company considers all short-term, highly liquid investments with remaining maturities at the purchase date of three months or less to be cash equivalents. The Company invests the majority of its cash in interest-bearing accounts in U.S. banks, and the Company’s foreign subsidiaries maintain cash accounts denominated in Euros and Shekels. Foreign currency accounts are remeasured to U.S. dollars at each month-end. At times, deposit balances in the U.S. may exceed the FDIC insured limit.
Net Loss per Common Share	Net Loss per Common Share Basic net loss per common share is computed by dividing the net loss attributable to common stockholders by the weighted-average number of common shares outstanding during the period. Diluted net loss per common share is computed by dividing the net loss attributable to common stockholders by the weighted-average number of common shares and dilutive common stock equivalents outstanding for the period. Stock options, warrants, and restricted shares are considered to be common stock equivalents and are evaluated for dilutive effect using the treasury-stock method. Basic and diluted net loss per common share are the same for the three and nine months ended September 30, 2015 and 2014 due to the Company's reported net losses during those periods
Adoption of New Accounting Pronouncements	Adoption of New Accounting Pronouncements In April 2015, the FASB issued Accounting Standards Update ("ASU") 2015-03, Interest – Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs. ASU 2015-03 will require an entity to present debt issuance costs in the balance sheet as a direct deduction from the carrying amount of the related debt liability rather than as an asset, consistent with the treatment of debt discounts. The amendment does not change the recognition and measurement guidance for debt issuance costs, and the amortization of debt issuance costs will continue to be reported as interest expense. ASU 2015-03 is effective for annual reporting periods beginning after December 15, 2016. The Company early adopted ASU 2015-03 in June 2015, as permitted, and applied the new guidance retrospectively to the condensed consolidated balance sheet as of December 31, 2014. There was no impact from the early adoption of ASU 2015-03 on the condensed consolidated statements of comprehensive loss or the condensed consolidated statements of cash flows. Future Adoption of Accounting Pronouncements In July 2015, the FASB issued ASU 2015-11, Simplifying the Measurement of Inventory. ASU 2015-11 changes the measurement principle for inventory for entities using FIFO or average cost from the lower of cost or market to lower of cost and net realizable value. ASU 2015-11 defines net realizable value as estimated selling prices in the ordinary course of business less reasonably predictable costs of completion, disposal, and transportation. The guidance is effective for reporting periods beginning after December 15, 2016 and interim periods within those fiscal years with early adoption permitted. ASU 2015-11 should be applied prospectively. We are currently evaluating the impact of the future adoption of this standard, but we do not expect the adoption to have a material effect on our consolidated financial statements. In August 2014, the FASB issued ASU No. 2014-15, Presentation of Financial Statements – Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern. ASU 2014-15 will explicitly require management to assess an entity’s ability to continue as a going concern at each annual and interim period. Related footnote disclosures will be required if conditions give rise to substantial doubt about an entity’s ability to continue as a going concern within one year after the report issuance date. If conditions do not give rise to substantial doubt, no disclosures will be required specific to going concern uncertainties. The ASU defines substantial doubt using a likelihood threshold of “probable” similar to the current use of that term in U.S. GAAP for loss contingencies and provides example indicators. ASU 2014-15 is effective for reporting periods ending after December 15, 2016, and early adoption is permitted. We are currently evaluating the impact of the future adoption of this standard, but we do not expect the adoption to have a material effect on our consolidated financial statements. In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606). ASU 2014-09 will eliminate transaction- and industry-specific revenue recognition guidance under current U.S. GAAP and replace it with a principle based approach for determining revenue recognition. ASU 2014-09 will require that companies recognize revenue based on the value of transferred goods or services as they occur in the contract. The ASU also will require additional disclosure about the nature, amount, timing, and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments and assets recognized from costs incurred to obtain or fulfill a contract. ASU 2014-09 is effective for reporting periods beginning after December 15, 2017. Earlier adoption is permitted only as of annual reporting periods beginning after December 15, 2016, including interim reporting periods within that reporting period. Entities can transition to the standard either retrospectively or as a cumulative-effect adjustment as of the date of adoption. We are currently evaluating the impact of the future adoption of this standard.

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	9 Months Ended
	Sep. 30, 2015
Fair Value Disclosures [Abstract]
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation	For the Company’s assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3), the following table provides a reconciliation of the beginning and ending balances for each category therein and gains or losses recognized during the period: Fair value measurements using significant unobservable inputs (level 3): Contingent liabilities for accrued earn-out acquisition consideration Balance as of December 31, 2014 $ 632 Foreign currency translation adjustments (23 ) Balance as of September 30, 2015 $ 609

Financial Instruments Financi24

Financial Instruments Financial Instruments (Tables)	9 Months Ended
	Sep. 30, 2015
Investments, Debt and Equity Securities [Abstract]
Available-for-sale Securities	The table below summarizes the Company’s available-for-sale securities' amortized cost, gross unrealized gains, gross unrealized losses, and fair value by significant investment category recorded as short-term investment securities or long-term investment securities as of September 30, 2015 (refer to Note 4 for discussion of our fair value hierarchy). The Company had no investment securities as of December 31, 2014. Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Short-term Investments Long-term Investments Level 1: U.S. Treasuries $ 4,022 $ 4 $ — $ 4,026 $ 2,011 $ 2,015 U.S. government agencies 3,693 4 — 3,697 — 3,697 Subtotal 7,715 8 — 7,723 2,011 5,712 Level 2: Commercial paper 3,993 — — 3,993 3,993 — Corporate securities 43,209 20 (17 ) 43,212 19,757 23,455 Subtotal 47,202 20 (17 ) 47,205 23,750 23,455 Total $ 54,917 $ 28 $ (17 ) $ 54,928 $ 25,761 $ 29,167
Investments Classified by Contractual Maturity Date	The amortized cost and fair value of short-term and long-term investments as of September 30, 2015 are shown below by contractual maturity. Actual maturities may differ from contractual maturities as securities may be restructured, called, or prepaid. Amortized Cost Fair Value Due to mature: Less than one year $ 25,758 $ 25,761 One to two years 29,159 29,167 Total $ 54,917 $ 54,928

Inventories (Tables)

Inventories (Tables)	9 Months Ended
	Sep. 30, 2015
Inventory Disclosure [Abstract]
Schedule of Inventory, Current	Inventories consisted of the following: September 30, 2015 December 31, 2014 Raw materials $ 5,737 $ 4,428 Work-in-process 2,688 3,282 Finished goods 7,107 5,927 Total inventories $ 15,532 $ 13,637

Property and Equipment (Tables)

Property and Equipment (Tables)	9 Months Ended
	Sep. 30, 2015
Property, Plant and Equipment [Abstract]
Property and Equipment	Property and equipment consisted of the following: September 30, 2015 December 31, 2014 Furniture and fixtures $ 1,183 $ 925 Leasehold improvements 2,264 2,053 Computers and software 2,957 2,864 Demonstration equipment 6,772 6,553 Machinery and equipment 5,233 3,666 Construction in progress 229 — Total 18,638 16,061 Accumulated depreciation (9,466 ) (6,393 ) Property and equipment, net $ 9,172 $ 9,668

Goodwill and Other Intangible27

Goodwill and Other Intangible Assets (Tables)	9 Months Ended
	Sep. 30, 2015
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of Intangible Assets and Goodwill	The gross carrying amount of goodwill and other intangible assets and the related accumulated amortization for amortizable intangible assets as of September 30, 2015 and December 31, 2014 are as follows: September 30, 2015 December 31, 2014 Gross carrying amount Accumulated amortization Net carrying value Gross carrying amount Accumulated amortization Net carrying value Amortizable intangible assets: Customer relationships $ 1,721 $ (704 ) $ 1,017 $ 1,845 $ (595 ) $ 1,250 Developed technology 20,290 (6,975 ) 13,315 20,435 (5,109 ) 15,326 Other intangible assets 2,180 (2,117 ) 63 2,203 (2,124 ) 79 Total amortizable intangible assets $ 24,191 $ (9,796 ) $ 14,395 $ 24,483 $ (7,828 ) $ 16,655 Unamortizable intangible assets: Goodwill $ 19,989 $ — $ 19,989 $ 20,301 $ — $ 20,301
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense	As of September 30, 2015, estimated aggregate future amortization expense for the intangible assets is as follows: Estimated amortization expenses: 2015 (remaining) $ 689 2016 2,714 2017 2,714 2018 2,714 2019 2,714 2020 2,699 Thereafter 151 Total $ 14,395
Schedule of Goodwill	Changes in the carrying amount of amortizable intangible assets and goodwill for the nine months ended September 30, 2015 are as follows: Amortizable intangible assets: Balance at December 31, 2014 16,655 Amortization (2,067 ) Foreign currency translation adjustment (193 ) Balance at September 30, 2015 $ 14,395 Goodwill: Balance at December 31, 2014 20,301 Foreign currency translation adjustment (312 ) Balance at September 30, 2015 $ 19,989
Schedule of Finite-Lived Intangible Assets	Changes in the carrying amount of amortizable intangible assets and goodwill for the nine months ended September 30, 2015 are as follows: Amortizable intangible assets: Balance at December 31, 2014 16,655 Amortization (2,067 ) Foreign currency translation adjustment (193 ) Balance at September 30, 2015 $ 14,395 Goodwill: Balance at December 31, 2014 20,301 Foreign currency translation adjustment (312 ) Balance at September 30, 2015 $ 19,989

Accrued Expenses and Other Cu28

Accrued Expenses and Other Current Liabilities (Tables)	9 Months Ended
	Sep. 30, 2015
Payables and Accruals [Abstract]
Schedule of Accrued Liabilities	Accrued expenses and other current liabilities consisted of the following: September 30, 2015 December 31, 2014 Payroll and employee related expenses $ 5,319 $ 4,293 Accrued warranty costs 712 803 Sales and other taxes payable 249 412 Income taxes payable 413 26 Other accrued liabilities 2,866 2,794 Accrued expenses and other current liabilities $ 9,559 $ 8,328

Stock-based Compensation (Table

Stock-based Compensation (Tables)	9 Months Ended
	Sep. 30, 2015
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Schedule of Share-based Compensation, Stock Options, Activity	Following is a summary of stock option activity for the nine months ended September 30, 2015: Number of Options Weighted average exercise price Weighted average remaining contractual term Outstanding at December 31, 2014 341,345 $ 2.30 5.2 years Granted 568,713 16.01 Exercised (25,197 ) 3.02 Forfeited (1,130 ) 3.32 Outstanding at September 30, 2015 883,731 11.10 7.9 years Vested and exercisable at September 30, 2015 316,518 $ 2.32
Nonvested Restricted Stock Shares Activity	Following is a summary of the restricted stock activity for the nine months ended September 30, 2015: Number of Restricted Stock Shares Unvested at December 31, 2014 715,577 Granted 788,153 Vested (345,813 ) Forfeited (14,482 ) Unvested at September 30, 2015 1,143,435
Schedule of Employee Service Share-based Compensation, Allocation of Recognized Period Costs	We recognized stock-based compensation expense as follows during the three and nine months ended September 30, 2015 and 2014: Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 Cost of revenues $ 35 $ — $ 114 $ — Research and development 76 1 595 3 Sales and marketing 147 1 548 3 General and administrative 471 3 2,973 9 Total $ 729 $ 5 $ 4,230 $ 15
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions	The Black-Scholes option pricing model is used to estimate the fair value of stock options granted under the Company’s stock-based compensation plans and rights to acquire stock granted under the Company’s ESPP. The weighted average estimated fair values of stock options, the rights to acquire stock granted, and the weighted average assumptions used in calculating those fair values were as follows: Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 Stock Options Risk free interest rate 1.6 % — % 1.6 % — % Expected term (in years) 5.0 — 5.0 — Expected volatility 45.0 % — % 45.0 % — % Weighted average fair value at grant date $ 6.42 $ — $ 6.42 $ — Employee Stock Purchase Plan Risk free interest rate 0.1 % — % 0.1 % — % Expected term (in years) 0.5 — 0.5 — Expected volatility 47.0 % — % 47.0 % — % Weighted average fair value at grant date $ 4.65 $ — $ 4.65 $ —
Schedule of Share-based Payment Award, Employee Stock Purchase Plan, Valuation Assumptions	The Black-Scholes option pricing model is used to estimate the fair value of stock options granted under the Company’s stock-based compensation plans and rights to acquire stock granted under the Company’s ESPP. The weighted average estimated fair values of stock options, the rights to acquire stock granted, and the weighted average assumptions used in calculating those fair values were as follows: Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 Stock Options Risk free interest rate 1.6 % — % 1.6 % — % Expected term (in years) 5.0 — 5.0 — Expected volatility 45.0 % — % 45.0 % — % Weighted average fair value at grant date $ 6.42 $ — $ 6.42 $ — Employee Stock Purchase Plan Risk free interest rate 0.1 % — % 0.1 % — % Expected term (in years) 0.5 — 0.5 — Expected volatility 47.0 % — % 47.0 % — % Weighted average fair value at grant date $ 4.65 $ — $ 4.65 $ —

Net Loss per Common Share (Tabl

Net Loss per Common Share (Tables)	9 Months Ended
	Sep. 30, 2015
Earnings Per Share [Abstract]
Schedule of Earnings Per Share, Basic and Diluted	After giving effect to the corporate conversion on a retroactive basis as described in Note 1, the following table provides a reconciliation of the numerator and denominator used in calculating basic and diluted net loss per share attributable to common stockholders for the three and nine months ended September 30, 2015 and 2014. Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 Numerator: Net loss attributable to common stockholders $ (11,578 ) $ (14,027 ) $ (46,339 ) $ (38,613 ) Denominator: Weighted-average common shares outstanding - basic 24,738,893 12,091,882 19,820,453 12,081,123 Dilutive effect of stock options, warrants, and restricted stock units( 1) — — — — Weighted-average common shares outstanding - diluted 24,738,893 12,091,882 19,820,453 12,081,123 Net loss per share attributable to common stockholders - basic and diluted $ (0.47 ) $ (1.16 ) $ (2.34 ) $ (3.20 ) (1) Potentially dilutive stock options, warrants, and restricted stock were excluded from the calculation of diluted weighted-average shares outstanding as they would have had an anti-dilutive effect due to losses reported during the three and nine months ended September 30, 2015 and 2014.
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share	The treasury stock method is used to determine the dilutive effect of the Company’s potentially dilutive securities. The following securities were excluded from the calculation of diluted shares outstanding due to their anti-dilutive effect: September 30, 2015 September 30, 2014 Stock options 883,731 341,345 Warrants for common stock 4,061 187,161 Restricted stock 1,143,435 — Total 2,031,227 528,506

Commitments and Contingencies (

Commitments and Contingencies (Tables)	9 Months Ended
	Sep. 30, 2015
Commitments and Contingencies Disclosure [Abstract]
Contractual Obligation, Fiscal Year Maturity Schedule	Future minimum lease payments under noncancelable operating leases at September 30, 2015 are as follows: Amount Year: 2015 (remaining) $ 386 2016 1,518 2017 1,225 2018 912 2019 628 2020 21 Total $ 4,690

Segment, Geographical, and Cu32

Segment, Geographical, and Customer Concentration Goodwill and Other Intangible Assets (Tables)	9 Months Ended
	Sep. 30, 2015
Segment Reporting [Abstract]
Revenue from External Customers by Geographic Areas	The following table represents net revenues by geographic area based on the location of the customer during the three and nine months ended September 30, 2015 and 2014: Three Months Ended Nine Months Ended 2015 2014 2015 2014 United States $ 16,241 $ 13,432 $ 48,141 $ 39,733 International 2,122 737 5,612 3,364 Total $ 18,363 $ 14,169 $ 53,753 $ 43,097
Long-lived Assets by Geographic Areas	The composition of the Company’s long-lived assets, consisting of property and equipment, amortizable intangible assets, and goodwill by geographic area is set forth below: September 30, 2015 December 31, 2014 United States $ 5,669 $ 6,516 Israel 31,967 33,855 Other Regions 5,920 6,253 Total $ 43,556 $ 46,624

Background and Basis of Prese33

Background and Basis of Presentation (Details) - USD ($) $ / shares in Units, $ in Thousands	Jun. 10, 2015	Jun. 04, 2015	Sep. 30, 2015	Dec. 31, 2014
Business Acquisition [Line Items]
Aggregate number of options shareholders have (in shares)		339,373	883,731	341,345
EndoChoice Israel, Ltd. [Member]
Business Acquisition [Line Items]
Ownership interest percentage (in shares)			67.00%
Common Stock [Member]
Business Acquisition [Line Items]
Shares available for conversion (in shares)		17,580,918
Restricted Stock [Member]
Business Acquisition [Line Items]
Shares available for conversion (in shares)		579,869
Warrant [Member]
Business Acquisition [Line Items]
Aggregate amount of convertible securities (in shares)		187,161
IPO [Member]
Business Acquisition [Line Items]
Proceeds from IPO	$ 94,186
Payment for underwriting discounts and commissions	7,405
offering expenses	$ 4,197
IPO [Member] | Common Stock [Member]
Business Acquisition [Line Items]
IPO shares (in shares)	7,302,500
Shares issued in IPO (in shares)	7,052,500
Shares sold in the IPO by existing stockholders (in shares)	250,000
Over-Allotment Option [Member] | Common Stock [Member]
Business Acquisition [Line Items]
IPO shares (in shares)	952,500
Underwriter Option [Member] | Common Stock [Member]
Business Acquisition [Line Items]
Price of shares sold to underwriter (in usd per share)	$ 15

Summary of Significant Accoun34

Summary of Significant Accounting Policies (Details) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Money Market Funds [Member]
Cash and Cash Equivalents [Line Items]
Investments in money market funds classified as cash equivalents	$ 34,928	$ 0

Fair Value Measurements (Detail

Fair Value Measurements (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended	9 Months Ended
	Sep. 30, 2015	Sep. 30, 2015	Sep. 30, 2014	Jun. 04, 2015	Jun. 03, 2015
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Number of warrants (in shares)				187,161	2,091,175
Warrant exercise price (in usd per share)				$ 10.95	$ 0.96
Change in fair value of warrant liability		$ 435	$ 0
Other Expense [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Change in fair value of warrant liability	$ 0	$ 435

Fair Value Measurements (Deta36

Fair Value Measurements (Details 2) - Contingent liabilities For Accrued Earn-Out Acquisition Consideration [Member] $ in Thousands	9 Months Ended
	Sep. 30, 2015USD ($)
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Beginning balance	$ 632
Foreign currency translation adjustments	(23)
Ending balance	$ 609

Financial Instruments Financi37

Financial Instruments Financial Instruments Summary of Available-for-Sale Securities (Details) - USD ($)	Sep. 30, 2015	Dec. 31, 2014
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Amortized Cost	$ 54,917,000
Gross Unrealized Gains	28,000
Gross Unrealized Losses	(17,000)
Fair Value	54,928,000	$ 0
Short-term Investments	25,761,000
Long-term Investments	29,167,000
Fair Value, Inputs, Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Amortized Cost	7,715,000
Gross Unrealized Gains	8,000
Gross Unrealized Losses	0
Fair Value	7,723,000
Short-term Investments	2,011,000
Long-term Investments	5,712,000
Fair Value, Inputs, Level 1 [Member] | US Treasury Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Amortized Cost	4,022,000
Gross Unrealized Gains	4,000
Gross Unrealized Losses	0
Fair Value	4,026,000
Short-term Investments	2,011,000
Long-term Investments	2,015,000
Fair Value, Inputs, Level 1 [Member] | US Government Agencies Debt Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Amortized Cost	3,693,000
Gross Unrealized Gains	4,000
Gross Unrealized Losses	0
Fair Value	3,697,000
Short-term Investments	0
Long-term Investments	3,697,000
Fair Value, Inputs, Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Amortized Cost	47,202,000
Gross Unrealized Gains	20,000
Gross Unrealized Losses	(17,000)
Fair Value	47,205,000
Short-term Investments	23,750,000
Long-term Investments	23,455,000
Fair Value, Inputs, Level 2 [Member] | Commercial Paper [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Amortized Cost	3,993,000
Gross Unrealized Gains	0
Gross Unrealized Losses	0
Fair Value	3,993,000
Short-term Investments	3,993,000
Long-term Investments	0
Fair Value, Inputs, Level 2 [Member] | Corporate Debt Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Amortized Cost	43,209,000
Gross Unrealized Gains	20,000
Gross Unrealized Losses	(17,000)
Fair Value	43,212,000
Short-term Investments	19,757,000
Long-term Investments	$ 23,455,000

Financial Instruments Financi38

Financial Instruments Financial Instruments Amortized Cost and Fair Value of Short-Term and Long-Term Investments (Details) $ in Thousands	9 Months Ended
	Sep. 30, 2015USD ($)
Investments, Debt and Equity Securities [Abstract]
Less than one year, Amortized Cost	$ 25,758
One to two years, Amortized Cost	29,159
Total, Amortized Cost	54,917
Less than one year, Fair Value	25,761
One to two years, Fair Value	29,167
Total, Fair Value	54,928
Unrealized gains net of tax	$ 11

Inventories (Details)

Inventories (Details) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Inventory Disclosure [Abstract]
Raw materials	$ 5,737	$ 4,428
Work-in-process	2,688	3,282
Finished goods	7,107	5,927
Inventory, Net	$ 15,532	$ 13,637

Property and Equipment Property

Property and Equipment Property and Equipment (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014	Dec. 31, 2014
Property, Plant and Equipment [Line Items]
Property and equipment	$ 18,638		$ 18,638		$ 16,061
Accumulated depreciation	(9,466)		(9,466)		(6,393)
Property and equipment, net	9,172		9,172		9,668
Depreciation expense	1,338	$ 1,425	3,988	$ 3,345
Loss on impairment of property and equipment			912	$ 0
Furniture and Fixtures [Member]
Property, Plant and Equipment [Line Items]
Property and equipment	1,183		1,183		925
Leasehold Improvements [Member]
Property, Plant and Equipment [Line Items]
Property and equipment	2,264		2,264		2,053
Computers And Software [Member]
Property, Plant and Equipment [Line Items]
Property and equipment	2,957		2,957		2,864
Demonstration Equipment [Member]
Property, Plant and Equipment [Line Items]
Property and equipment	6,772		6,772		6,553
Loss on impairment of property and equipment	0		912
Machinery and Equipment [Member]
Property, Plant and Equipment [Line Items]
Property and equipment	5,233		5,233		3,666
Construction in Progress [Member]
Property, Plant and Equipment [Line Items]
Property and equipment	$ 229		$ 229		$ 0

Goodwill and Other Intangible41

Goodwill and Other Intangible Assets (Details) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Amortizable intangible assets:
Amortizable intangible assets, Gross carrying amount	$ 24,191	$ 24,483
Amortizable intangible assets, Accumulated amortization	(9,796)	(7,828)
Amortizable intangible assets, Net carrying value	14,395	16,655
Unamortizable intangible assets:
Goodwill, Gross carrying amount	19,989	20,301
Goodwill, Impaired, Accumulated Impairment Loss	0	0
Goodwill	19,989	20,301
Customer Relationships [Member]
Amortizable intangible assets:
Amortizable intangible assets, Gross carrying amount	1,721	1,845
Amortizable intangible assets, Accumulated amortization	(704)	(595)
Amortizable intangible assets, Net carrying value	1,017	1,250
Developed Technology Rights [Member]
Amortizable intangible assets:
Amortizable intangible assets, Gross carrying amount	20,290	20,435
Amortizable intangible assets, Accumulated amortization	(6,975)	(5,109)
Amortizable intangible assets, Net carrying value	13,315	15,326
Other Intangible Assets [Member]
Amortizable intangible assets:
Amortizable intangible assets, Gross carrying amount	2,180	2,203
Amortizable intangible assets, Accumulated amortization	(2,117)	(2,124)
Amortizable intangible assets, Net carrying value	$ 63	$ 79

Goodwill and Other Intangible42

Goodwill and Other Intangible Assets (Details 2) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014	Dec. 31, 2014
Goodwill and Intangible Assets Disclosure [Abstract]
Amortization of intangible assets	$ 690	$ 818	$ 2,067	$ 3,179
2015 (remaining)	689		689
2,016	2,714		2,714
2,017	2,714		2,714
2,018	2,714		2,714
2,019	2,714		2,714
2,020	2,699		2,699
Thereafter	151		151
Amortizable intangible assets, Net carrying value	$ 14,395		$ 14,395		$ 16,655

Goodwill and Other Intangible43

Goodwill and Other Intangible Assets (Details 3) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Finite-lived Intangible Assets [Roll Forward]
Finite-lived intangible assets, beginning			$ 16,655
Amortization	$ (690)	$ (818)	(2,067)	$ (3,179)
Foreign currency translation adjustment, intangible assets			(193)
Finite-lived intangible assets, ending	14,395		14,395
Goodwill [Roll Forward]
Goodwill, beginning			20,301
Foreign currency translation adjustment, goodwill			(312)
Goodwill, ending	$ 19,989		$ 19,989

Accrued Expenses and Other Cu44

Accrued Expenses and Other Current Liabilities (Details) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Payables and Accruals [Abstract]
Payroll and employee related expenses	$ 5,319	$ 4,293
Accrued warranty costs	712	803
Sales and other taxes payable	249	412
Income taxes payable	413	26
Other accrued liabilities	2,866	2,794
Accrued expenses and other current liabilities	$ 9,559	$ 8,328

Debt Debt (Details)

Debt Debt (Details) - USD ($)	Jun. 30, 2015	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014	Dec. 31, 2014
Debt Instrument [Line Items]
Long-term debt, net of discount		$ 42,617,000		$ 42,617,000		$ 38,939,000
Outstanding debt prepaid				40,000,000	$ 0
Prepayment and end of term fees				2,306,000	0
Loss on early retirement of debt		0	$ 0	$ 2,282,000	$ 0
Secured Debt [Member] | Term Loan Facility [Member]
Debt Instrument [Line Items]
Loan agreement term	5 years
Loan facility face amount	$ 43,000,000
Stated interest rate	9.50%
End of term loan fee	2.95%
Interest only period for term loan	30 months
Debt issuance cost	$ 417,000
Triple Point Capital, LLC [Member] | Secured Debt [Member] | Growth Capital Facility [Member]
Debt Instrument [Line Items]
Outstanding debt prepaid	40,000,000
Prepayment and end of term fees	2,306,000
Payments other fees and expenses in connection with the refinancing	517,000
Loss on early retirement of debt		$ 0
Revolving Credit Facility [Member]
Debt Instrument [Line Items]
Revolving credit facility amount	15,000,000
Long term revolving credit facility	$ 0
Revolving Credit Facility [Member] | Line of Credit [Member]
Debt Instrument [Line Items]
Loan agreement term	5 years
London Interbank Offered Rate (LIBOR) [Member] | Revolving Credit Facility [Member]
Debt Instrument [Line Items]
Revolving credit facility spread	5.25%
Revolving credit facility unused line fee	0.50%

Stock-based Compensation (Detai

Stock-based Compensation (Details) - USD ($)	Sep. 30, 2015	Jun. 04, 2015	Jun. 30, 2015	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of options granted (in shares)						568,713
Unrecognized compensation cost related to stock options	$ 3,332,000			$ 3,332,000		$ 3,332,000
Weighted average period of compensation cost recognition						3 years 9 months 24 days
Share based compensation expense				729,000	$ 5,000	$ 4,230,000	$ 15,000
Common Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares available for conversion (in shares)		17,580,918
Restricted Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares available for conversion (in shares)		579,869
Employee Stock [Member] | Common Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
ESPP payroll deduction percentage			15.00%
ESPP share purchase limitation (in shares)			5,000
ESPP purchase limitation market value of common shares			$ 25,000
Restricted Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Awards granted (in shares)						788,153
Unrecognized compensation cost related to the restricted stock	$ 10,845,000			$ 10,845,000		$ 10,845,000
Weighted average period of compensation cost recognition	3 years 4 months 24 days
Restricted stock vesting period						4 years
2015 Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of options granted (in shares)						568,713
Awards granted (in shares)				639,067
2015 Plan [Member] | Common Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award shares authorized (in shares)	1,260,664			1,260,664		1,260,664
Percentage increase in issued shares by outstanding shares	4.00%			4.00%		4.00%

Stock-based Compensation (Det47

Stock-based Compensation (Details 2) - $ / shares	9 Months Ended	12 Months Ended
	Sep. 30, 2015	Dec. 31, 2014
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward]
Number of options outstanding, beginning balance (in shares)	341,345
Number of options granted (in shares)	568,713
Number of options exercised (in shares)	(25,197)
Number of options forfeited (in shares)	(1,130)
Number of options outstanding, ending balance (in shares)	883,731	341,345
Number of options vested and exercisable (in shares)	316,518
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract]
Options outstanding, Weighted average exercise price, beginning balance (in usd per share)	$ 2.30
Options granted, Weighted average exercise price (in usd per share)	16.01
Options exercised, Weighted average exercise price (in usd per share)	3.02
Options forfeited, Weighted average exercise price (in usd per share)	3.32
Options outstanding, Weighted average exercise price, ending balance (in usd per share)	11.10	$ 2.30
Options vested and exercisable, Weighted average exercise price (in usd per share)	$ 2.32
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract]
Options outstanding, Weighted average remaining contractual term	7 years 10 months 24 days	5 years 2 months 6 days

Stock-based Compensation (Det48

Stock-based Compensation (Details 3) - Restricted Stock [Member]	9 Months Ended
	Sep. 30, 2015shares
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward]
Number of Restricted Stock Shares, beginning balance (in shares)	715,577
Number of Restricted Stock Shares, Granted (in shares)	788,153
Number of Restricted Stock Shares, Vested (in shares)	(345,813)
Number of Restricted Stock Shares, Forfeited (in shares)	(14,482)
Number of Restricted Stock Shares, ending balance (in shares)	1,143,435

Stock-based Compensation (Det49

Stock-based Compensation (Details 4) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Share based compensation expense	$ 729	$ 5	$ 4,230	$ 15
Cost of Sales [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Share based compensation expense	35	0	114	0
Research and Development Expense [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Share based compensation expense	76	1	595	3
Selling and Marketing Expense [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Share based compensation expense	147	1	548	3
General and Administrative Expense [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Share based compensation expense	471	$ 3	2,973	$ 9
Restricted Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Share based compensation expense, previously unrecognized	$ 0		$ 3,496

Stock-based Compensation (Det50

Stock-based Compensation (Details 5) - $ / shares	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Employee Stock Option [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Risk free interest rate	1.60%	0.00%	1.60%	0.00%
Expected term (in years)	5 years		5 years
Expected volatility	45.00%	0.00%	45.00%	0.00%
Weighted average fair value at grant date (in usd per share)	$ 6.42	$ 0	$ 6.42	$ 0
Employee Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Risk free interest rate	0.10%	0.00%	0.10%	0.00%
Expected term (in years)	6 months		6 months
Expected volatility	47.00%	0.00%	47.00%	0.00%
Weighted average fair value at grant date (in usd per share)	$ 4.65	$ 0	$ 4.65	$ 0

Net Loss per Common Share (Deta

Net Loss per Common Share (Details) - USD ($) $ / shares in Units, $ in Thousands		3 Months Ended		9 Months Ended
		Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Numerator:
Net loss attributable to common stockholders		$ (11,578)	$ (14,027)	$ (46,339)	$ (38,613)
Denominator:
Weighted-average shares of common stock used to compute net loss per share attributable to common stockholders, basic and diluted (in shares)		24,738,893	12,091,882	19,820,453	12,081,123
Dilutive effect of stock options, warrants, and restricted stock units (in shares)	[1]	0	0	0	0
Net loss per share attributable to common stockholders, basic and diluted (in usd per share)		$ (0.47)	$ (1.16)	$ (2.34)	$ (3.20)
[1]	Potentially dilutive stock options, warrants, and restricted stock were excluded from the calculation of diluted weighted-average shares outstanding as they would have had an anti-dilutive effect due to losses reported during the three and nine months ended September 30, 2015 and 2014.

Net Loss per Common Share (De52

Net Loss per Common Share (Details 2) - shares	9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from EPS (in shares)	2,031,227	528,506
Employee Stock Option [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from EPS (in shares)	883,731	341,345
Warrant [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from EPS (in shares)	4,061	187,161
Restricted Stock [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from EPS (in shares)	1,143,435	0

Income Taxes Income Taxes (Deta

Income Taxes Income Taxes (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014	Dec. 31, 2014
Income Tax Disclosure [Abstract]
Income tax expense	$ 332,000	$ 218,000	$ 811,000	$ 734,000
Effective income tax rate	2.95%	1.58%	1.78%	1.94%
Liability for uncertain tax positions	$ 0		$ 0		$ 0

Commitments and Contingencies54

Commitments and Contingencies (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Commitments and Contingencies Disclosure [Abstract]
Rent expense for operating lease	$ 320	$ 297	$ 929	$ 926
2015 (remaining)	386		386
2,016	1,518		1,518
2,017	1,225		1,225
2,018	912		912
2,019	628		628
2,020	21		21
Total	$ 4,690		$ 4,690

Segment, Geographical, and Cu55

Segment, Geographical, and Customer Concentration Goodwill and Other Intangible Assets (Details) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015USD ($)	Sep. 30, 2014USD ($)	Sep. 30, 2015USD ($)segment	Sep. 30, 2014USD ($)	Dec. 31, 2014USD ($)
Segment Reporting Information [Line Items]
Number of reportable segments | segment			1
Revenues	$ 18,363	$ 14,169	$ 53,753	$ 43,097
Long-Lived Assets	43,556		43,556		$ 46,624
UNITED STATES [Member] | Reportable Geographical Components [Member]
Segment Reporting Information [Line Items]
Revenues	16,241	13,432	48,141	39,733
Long-Lived Assets	5,669		5,669		6,516
Non-US [Member] | Reportable Geographical Components [Member]
Segment Reporting Information [Line Items]
Revenues	2,122	$ 737	5,612	$ 3,364
ISRAEL [Member] | Reportable Geographical Components [Member]
Segment Reporting Information [Line Items]
Long-Lived Assets	31,967		31,967		33,855
Other Regions [Member] | Reportable Geographical Components [Member]
Segment Reporting Information [Line Items]
Long-Lived Assets	$ 5,920		$ 5,920		$ 6,253

Subsequent Events Subsequent 56

Subsequent Events Subsequent Events (Details) - USD ($) $ in Thousands	Oct. 31, 2015	Sep. 30, 2015
Subsequent Event [Line Items]
Minimum future lease payments due		$ 4,690
Subsequent Event [Member]
Subsequent Event [Line Items]
Minimum future lease payments due	$ 3,878