EndoChoice 10-Q 4 May 16 2016 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2016	Apr. 29, 2016
Entity [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Mar. 31, 2016
Document Fiscal Year Focus	2,016
Entity Registrant Name	EndoChoice Holdings, Inc.
Entity Central Index Key	1,623,919
Current Fiscal Year End Date	--12-31
Document Fiscal Period Focus	Q1
Entity Filer Category	Non-accelerated Filer
Entity Common Stock, Shares Outstanding		26,011,050

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Current assets:
Cash and cash equivalents	$ 26,985	$ 34,033
Short-term marketable securities	37,533	33,872
Receivables, net	8,902	9,880
Inventories	17,096	17,473
Prepaid expenses and other current assets	2,908	3,108
Total current assets	93,424	98,366
Long-term marketable securities	6,099	19,748
Property and equipment, net	12,463	11,523
Intangible assets, net	13,522	13,819
Goodwill	20,690	20,105
Deposits and other long-term assets	780	777
Total assets	146,978	164,338
Current liabilities:
Accounts payable	6,141	8,434
Accrued expenses and other current liabilities	8,309	9,203
Current portion of deferred rent	118	85
Deferred revenue	696	812
Total current liabilities	15,264	18,534
Long-term debt, net of discount	42,670	42,643
Deferred rent, less current portion	759	761
Deferred income taxes	2,526	2,493
Other long-term liabilities	719	614
Total liabilities	$ 61,938	$ 65,045
Commitments and contingencies (Note 11)
Stockholders’ equity:
Preferred stock, $0.001 par value per share; 50,000,000 shares authorized; no shares issued and outstanding at March 31, 2016 and December 31, 2015	$ 0	$ 0
Common stock, $0.001 par value; 150,000,000 shares authorized; 24,982,091 shares issued and outstanding at March 31, 2016; 24,886,516 shares issued and outstanding at December 31, 2015	26	26
Additional paid-in capital	258,696	257,384
Accumulated deficit	(173,611)	(156,549)
Accumulated other comprehensive loss	(71)	(1,568)
Total stockholders’ equity	85,040	99,293
Total liabilities and stockholders’ equity	$ 146,978	$ 164,338

Condensed Consolidated Balance3

Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares	Mar. 31, 2016	Dec. 31, 2015
Statement of Financial Position [Abstract]
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, shares authorized	150,000,000	150,000,000
Common stock, shares issued	24,982,091	24,886,516
Common stock, shares outstanding	24,982,091	24,886,516
Preferred stock, par value (in dollars per share)	$ 0.001	$ 0.001
Preferred stock, shares authorized	50,000,000	50,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations and Comprehensive Loss - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Revenues:
GI equipment and supplies	$ 14,414	$ 13,795
GI pathology services	4,048	2,953
Net revenues	18,462	16,748
Cost of revenues:
GI equipment and supplies	12,397	10,026
GI pathology services	1,536	1,143
Cost of revenues	13,933	11,169
Gross profit	4,529	5,579
Operating expenses:
Research and development	4,023	4,683
Sales and marketing	9,609	8,243
General and administrative	6,324	4,417
Amortization of intangible assets	682	687
Operating expenses	20,638	18,030
Operating loss	(16,109)	(12,451)
Other income (expense):
Other income (expense)	164	(1,033)
Interest expense	(1,147)	(1,591)
Total other expense	(983)	(2,624)
Net loss before income taxes	(17,092)	(15,075)
Income tax benefit (expense)	30	(199)
Net loss	(17,062)	(15,274)
Other comprehensive income (loss):
Foreign currency translation adjustments	1,382	(740)
Change in fair value of available-for-sale securities	115	0
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent	1,497	(740)
Comprehensive loss	$ (15,565)	$ (16,014)
Net loss per share attributable to common stockholders, basic and diluted (in dollars per share)	$ (0.68)	$ (1)
Weighted-average shares of common stock used to compute net loss per share attributable to common stockholders, basic and diluted	24,957,002	15,318,390

Condensed Consolidated Stateme5

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Cash flows from operating activities:
Net loss	$ (17,062)	$ (15,274)
Adjustments to reconcile net loss to net cash used in operations:
Depreciation and amortization	2,333	2,102
Loss on disposal of property and equipment	5	0
Non-cash interest expense and discount amortization	93	181
Amortization of premium on marketable securities, net	177	0
Change in fair value of warrant liability	0	28
Provision for doubtful accounts	335	277
Unrealized foreign currency (gain) loss	(198)	972
Deferred income taxes	(41)	106
Stock-based compensation	1,337	5
Loss on impairment of property and equipment	423	912
Changes in certain working capital components and other assets and liabilities:
Accounts receivable	727	(1,393)
Inventories	795	710
Prepaid expenses and other current assets	240	(161)
Other assets	9	51
Accounts payable, accrued expenses, and other liabilities	(3,518)	1,063
Net cash used in operations	(14,345)	(10,421)
Cash flows from investing activities:
Capital expenditures	(2,840)	(1,292)
Proceeds from maturities of marketable securities	9,925	0
Net cash provided by (used in) investing activities	7,085	(1,292)
Cash flows from financing activities:
Proceeds from issuance of member units, net	0	31,000
Proceeds from option exercises	26	0
Net cash provided by financing activities	26	31,000
Effect of exchange rate changes on cash and cash equivalents	186	(67)
Net (decrease) increase in cash and cash equivalents	(7,048)	19,220
Cash and cash equivalents, beginning of period	26,985	32,981
Cash and cash equivalents, end of period	26,985	32,981
Supplemental disclosure of cash flow information:
Interest	1,053	1,175
Income taxes	$ 35	$ 26

Background and Basis of Present

Background and Basis of Presentation	3 Months Ended
	Mar. 31, 2016
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. The condensed consolidated financial statements have been prepared on a going-concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. As shown in the accompanying condensed consolidated financial statements, the Company has incurred losses and cash flow deficits from operations for the three months ended March 31, 2016 and 2015 . The Company has financed operations to date primarily through private placements of equity securities, borrowings under debt agreements, and the issuance of common stock in the initial public offering completed in June 2015. The Company’s ability to meet its obligations in the ordinary course of business is dependent upon its ability to generate sufficient cash flow to meet its obligations and ultimately to attain profitable operations. Failure to increase sales of its products, manage discretionary expenditures, or raise additional financing, if required, may adversely impact the Company’s ability to achieve its intended business objectives. 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 (SEC) 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 months ended March 31, 2016 or 2015 . 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 March 31, 2016 and the results of its operations and its cash flows for the three months ended March 31, 2016 and 2015 . 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 Annual Report on Form 10-K (Annual Report) for the year ended December 31, 2015 filed with the SEC on March 21, 2016. The results for the three months ended March 31, 2016 are not necessarily indicative of results to be expected for the year ending December 31, 2016 , any other interim periods, or any future year or period. 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	3 Months Ended
	Mar. 31, 2016
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 months ended March 31, 2016 as compared to the significant accounting policies described in Note 2 of the “Notes to consolidated financial statements” in the Company’s December 31, 2015 audited financial statements included in its Annual Report.

Recent Accounting Pronouncement

Recent Accounting Pronouncements	3 Months Ended
	Mar. 31, 2016
Accounting Changes and Error Corrections [Abstract]
Recent Accounting Pronouncements	Recent Accounting Pronouncements In February 2016, the FASB issued ASU 2016-02, Leases (ASC 842), which sets out the principles for the recognition, measurement, presentation and disclosure of leases for both parties to a contract (i.e. lessees and lessors). The new standard requires lessees to apply a dual approach, classifying leases as either finance or operating leases based on the principle of whether or not the lease is effectively a financed purchase by the lessee. This classification will determine whether lease expense is recognized based on an effective interest method or on a straight line basis over the term of the lease, respectively. A lessee is also required to record a right-of-use asset and a lease liability for all leases with a term of greater than 12 months regardless of their classification. Leases with a term of 12 months or less will be accounted for similar to existing guidance for operating leases today. ASC 842 supersedes the previous leases standard, ASC 840. The standard is effective on January 1, 2019, with early adoption permitted. The Company is in the process of evaluating the impact of this new guidance. In January 2016, the FASB issued ASU 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities, which addresses certain aspects of recognition, measurement, presentation and disclosure of financial instruments. ASU 2016-01 is effective for annual reporting periods, and interim periods within those annual periods, beginning after December 15, 2017. The Company is currently evaluating the impact of the future adoption of this standard, but the adoption is not expected to have a material effect on the consolidated financial statements. 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 standard 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. The Company is currently evaluating the impact of the future adoption of this standard, but the adoption is not expected to have a material effect on the 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 disclosures 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, as specified in ASU 2015-14, is now 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. The Company is currently evaluating the impact of the future adoption of this standard.

Fair Value Measurements

Fair Value Measurements	3 Months Ended
	Mar. 31, 2016
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 assets or liabilities 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 March 31, 2016 and December 31, 2015 , the Company holds a portfolio of available-for-sale marketable securities recorded at fair value on the condensed consolidated balance sheets (as discussed in Note 5). Other financial assets and liabilities recorded in the accompanying condensed consolidated balance sheets as of March 31, 2016 and December 31, 2015 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 March 31, 2016 and December 31, 2015 reasonably approximate their respective carrying values as reported within the condensed consolidated balance sheets. As of March 31, 2016 and December 31, 2015 , contingent liabilities for accrued earn-out consideration were categorized as Level 3 within the fair value hierarchy and were recorded at fair value on the acquisition date and are remeasured periodically based on the then assessed fair value. These liabilities 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. 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, 2015 $ 393 Foreign currency translation adjustments 11 Payments (20 ) Balance as of March 31, 2016 $ 384 Within the condensed consolidated balance sheets, the current portion of contingent liabilities for accrued earn-out acquisition consideration are included in accrued expenses and other current liabilities, while the non-current portion is included in other long-term liabilities. The determination of current versus non-current is made based on the expected timing of the payments from the balance sheet date. Amounts expected to be paid within twelve months of the balance sheet date are classified as current, and amounts expected to be paid after twelve months from the balance sheet date are classified as non-current. As of March 31, 2016 , $384 of contingent liabilities for accrued earn-out acquisition consideration were included in accrued expenses and other current liabilities. As of December 31, 2015 , $110 and $283 of contingent liabilities for accrued earn-out acquisition consideration were included in accrued expenses and other current liabilities and other long-term liabilities, respectively.

Marketable Securities

Marketable Securities	3 Months Ended
	Mar. 31, 2016
Investments, Debt and Equity Securities [Abstract]
Marketable Securities	Marketable Securities The table below summarizes the Company’s available-for-sale marketable securities' amortized cost, gross unrealized gains, gross unrealized losses, and fair value by significant investment category recorded as short-term marketable securities or long-term marketable securities as of March 31, 2016 (refer to Note 4 for discussion of our fair value hierarchy). The Company had total marketable securities of $53,620 as of December 31, 2015 . Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Short-term Marketable Securities Long-term Marketable Securities Level 1: U.S. Treasuries $ 4,012 $ — $ — $ 4,012 $ 2,005 $ 2,007 U.S. government agencies 3,619 — — 3,619 3,619 — Subtotal 7,631 — — 7,631 5,624 2,007 Level 2: Corporate securities 36,002 13 (14 ) 36,001 31,909 4,092 Subtotal 36,002 13 (14 ) 36,001 31,909 4,092 Total $ 43,633 $ 13 $ (14 ) $ 43,632 $ 37,533 $ 6,099 The amortized cost and fair value of short-term and long-term marketable securities as of March 31, 2016 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 $ 37,534 $ 37,533 One to two years 6,099 6,099 Total $ 43,633 $ 43,632 No realized gains and losses were recognized on the sale of marketable securities for any of the periods presented. As of March 31, 2016 , net unrealized losses of $1 , 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 three months ended March 31, 2016 , and there were no changes in the valuation techniques used by the Company.

Inventories

Inventories	3 Months Ended
	Mar. 31, 2016
Inventory Disclosure [Abstract]
Inventories	Inventories Inventories consisted of the following: March 31, 2016 December 31, 2015 Raw materials $ 6,592 $ 6,821 Work-in-process 3,936 3,113 Finished goods 6,568 7,539 Total inventories $ 17,096 $ 17,473

Property and Equipment

Property and Equipment	3 Months Ended
	Mar. 31, 2016
Property, Plant and Equipment [Abstract]
Property and Equipment	Property and Equipment Property and equipment consisted of the following: March 31, 2016 December 31, 2015 Furniture and fixtures $ 1,480 $ 1,229 Leasehold improvements 2,540 2,244 Computers and software 3,765 3,245 Demonstration equipment 9,075 8,414 Machinery and equipment 7,190 6,428 Construction in progress 1,168 1,015 Total 25,218 22,575 Accumulated depreciation (12,755 ) (11,052 ) Property and equipment, net $ 12,463 $ 11,523 Depreciation expense was $1,651 and $1,415 for the three months ended March 31, 2016 and 2015 , respectively. D uring the three months ended March 31, 2016 , we recognized an impairment of $282 on demonstration equipment as the Company plans to replace this equipment with newer versions of Fuse ®. During the three months ended March 31, 2015, we recognized an impairment of $912 on demonstration equipment due to the replacement of certain of this equipment with newer versions of Fuse ®. The loss is recorded in sales and marketing expense in the condensed consolidated statements of operations and comprehensive loss.

Goodwill and Other Intangible A

Goodwill and Other Intangible Assets	3 Months Ended
	Mar. 31, 2016
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 March 31, 2016 and December 31, 2015 are as follows: March 31, 2016 December 31, 2015 Gross carrying amount Accumulated amortization Net carrying value Gross carrying amount Accumulated amortization Net carrying value Amortizable intangible assets: Customer relationships $ 1,742 $ (793 ) $ 949 $ 1,683 $ (732 ) $ 951 Developed technology 21,082 (8,565 ) 12,517 20,498 (7,687 ) 12,811 Other intangible assets 2,262 (2,206 ) 56 2,198 (2,141 ) 57 Total amortizable intangible assets $ 25,086 $ (11,564 ) $ 13,522 $ 24,379 $ (10,560 ) $ 13,819 Unamortizable intangible assets: Goodwill $ 20,690 $ — $ 20,690 $ 20,105 $ — $ 20,105 The Company recorded amortization expense related to the amortizable intangible assets of $682 and $687 for the three months ended March 31, 2016 and 2015 , respectively. As of March 31, 2016 , estimated aggregate future amortization expense for the intangible assets is as follows: Estimated amortization expenses: 2016 (remaining) $ 2,111 2017 2,815 2018 2,815 2019 2,815 2020 2,800 2021 166 Total $ 13,522 Changes in the carrying amount of amortizable intangible assets and goodwill for the three months ended March 31, 2016 are as follows: Amortizable intangible assets: Balance at December 31, 2015 $ 13,819 Amortization (682 ) Foreign currency translation adjustment 385 Balance at March 31, 2016 $ 13,522 Goodwill: Balance at December 31, 2015 20,105 Foreign currency translation adjustment 585 Balance at March 31, 2016 $ 20,690

Accrued Expenses and Other Curr

Accrued Expenses and Other Current Liabilities	3 Months Ended
	Mar. 31, 2016
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: March 31, 2016 December 31, 2015 Payroll and employee related expenses $ 4,412 $ 4,787 Accrued warranty costs 624 922 Sales and other taxes payable 184 320 Other accrued liabilities 3,089 3,174 Accrued expenses and other current liabilities $ 8,309 $ 9,203

Debt

Debt	3 Months Ended
	Mar. 31, 2016
Debt Disclosure [Abstract]
Debt	Debt The Company had $42,670 and $42,643 in total debt outstanding, net of discount, as of March 31, 2016 and December 31, 2015 , respectively, which is fully included in long-term debt on the accompanying 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 is accrued as additional interest expense using the effective interest rate method over the term of the loan. 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 March 31, 2016 . The Revolving Credit Facility expires on June 30, 2020.

Commitments and Contingencies

Commitments and Contingencies	3 Months Ended
	Mar. 31, 2016
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies The Company has certain minimum obligations under noncancelable operating lease agreements, principally in connection with office and warehouse space, which contain provisions for rent-free periods. The total amount of rental payments due over the lease terms are being charged to rent expense using the straight-line method over the terms of the leases. Rent expense associated with noncancelable operating leases totaled $370 and $288 for the three months ended March 31, 2016 and 2015 , respectively. Future minimum lease payments under noncancelable operating leases at March 31, 2016 are as follows: Amount Year: 2016 (remaining) $ 1,292 2017 1,792 2018 1,567 2019 1,534 2020 1,153 2021 1,051 Thereafter 370 Total $ 8,759

Stock-based Compensation

Stock-based Compensation	3 Months Ended
	Mar. 31, 2016
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Stock-based Compensation	Stock-based Compensation Equity Incentive Plans The Company's 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 March 31, 2016 , the Company made new grants under the following equity incentive plans: 2015 Omnibus Equity Incentive Plan The 2015 Omnibus Equity Incentive 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 2,301,145 shares of our common stock are reserved for issuance under the 2015 Plan. As of March 31, 2016 , 795,957 stock options, 649,067 shares of restricted stock, and 212,504 restricted stock units 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 31 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 The Company's Employee Stock Purchase Plan ("ESPP") is designed to allow our eligible employees to purchase shares of our common stock with accumulated payroll deductions of up to 15% of eligible compensation, 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 current offering period under the ESPP began on January 1, 2016 and concludes on June 30, 2016. Stock Options Following is a summary of stock option activity for the three months ended March 31, 2016 : Number of Options Weighted average exercise price Weighted average remaining contractual term Outstanding at December 31, 2015 848,400 $ 11.10 7.7 years Granted 217,244 5.31 Exercised (9,523 ) 1.15 Forfeited (812 ) 2.83 Outstanding at March 31, 2016 1,055,309 10.02 8.0 years Vested and exercisable at March 31, 2016 298,895 $ 2.83 We estimate the fair value of stock options at the grant date using the Black-Scholes-Merton option pricing model. As of March 31, 2016 , there was $3,010 of total unrecognized compensation cost related to stock options. These costs are expected to be recognized over a weighted average period of 3.4 years. Restricted Stock and Restricted Stock Units Following is a summary of restricted stock and restricted stock units activity for the three months ended March 31, 2016 : Number of Restricted Stock Shares Number of Restricted Stock Units Unvested at December 31, 2015 1,083,793 — Granted — 212,504 Vested (86,052 ) — Forfeited (674 ) — Unvested at March 31, 2016 997,067 212,504 As of March 31, 2016 , total unrecognized compensation cost related to restricted stock shares was $8,103 net of estimated forfeitures, which is expected to be recognized over a weighted-average period of 3.0 years. As of March 31, 2016 , total unrecognized compensation cost related to restricted stock units was $953 , net of estimated forfeitures, which is expected to be recognized over a weighted-average period of 4.0 years. 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 months ended March 31, 2016 and 2015 : Three Months Ended March 31, 2016 2015 Cost of revenues $ 47 $ — Research and development 111 1 Sales and marketing 269 1 General and administrative 910 3 Total $ 1,337 $ 5

Net Loss per Common Share

Net Loss per Common Share	3 Months Ended
	Mar. 31, 2016
Earnings Per Share [Abstract]
Net Loss per Common Share	Net Loss per Common Share After giving effect to the corporate conversion 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 months ended March 31, 2016 and 2015 . Three Months Ended March 31, 2016 2015 Numerator: Net loss attributable to common stockholders $ (17,062 ) $ (15,274 ) Denominator: Weighted-average common shares outstanding - basic 24,957,002 15,318,390 Dilutive effect of stock options, warrants, restricted stock, and restricted stock units 1 — — Weighted-average common shares outstanding - diluted 24,957,002 15,318,390 Net loss per share attributable to common stockholders - basic and diluted $ (0.68 ) $ (1.00 ) 1 Potentially dilutive stock options, warrants, restricted stock, and restricted stock units 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 months ended March 31, 2016 and 2015 . 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 March 31, 2016 Stock options 1,055,309 Warrants for common stock 4,061 Restricted stock 997,067 Restricted stock units 212,504 Total 2,268,941

Income Taxes

Income Taxes	3 Months Ended
	Mar. 31, 2016
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes 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 benefit of $30 and income tax expense of $199 during the three months ended March 31, 2016 and 2015 , respectively, resulting in effective rates of 0.19% and 1.30% 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 months ended March 31, 2016 and 2015 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. In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets depends on the generation of future taxable income during the periods in which those temporary differences become deductible. Management considers the scheduled reversal of deferred tax liabilities (including the impact of available carryback and carryforward periods), projected future taxable income, and tax planning strategies in making this assessment. Based on future operating results, there is a reasonable possibility that the valuation allowance against deferred tax assets in Germany could be released within the next twelve months. No liability for uncertain tax positions has been recorded as of March 31, 2016 or December 31, 2015 .

Segment, Geographical, and Cust

Segment, Geographical, and Customer Concentration	3 Months Ended
	Mar. 31, 2016
Segment Reporting [Abstract]
Segment, Geographical, and Customer Concentration	Segment, Geographical, and Customer Concentration The Company is globally managed as 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 months ended March 31, 2016 and 2015 : Three Months Ended 2016 2015 United States $ 16,603 $ 15,321 International 1,859 1,427 Total $ 18,462 $ 16,748 For the three months ended March 31, 2016 and 2015 , no customers accounted for greater than 10% of revenues. Additionally, no customers accounted for greater than 10% of accounts receivable as of March 31, 2016 or December 31, 2015 . 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: March 31, 2016 December 31, 2015 United States $ 8,155 $ 7,694 Israel 32,042 31,694 Other Regions 6,478 6,059 Total $ 46,675 $ 45,447

Recent Accounting Pronounceme21

Recent Accounting Pronouncements (Policies)	3 Months Ended
	Mar. 31, 2016
Accounting Changes and Error Corrections [Abstract]
Recent Accounting Pronouncements	Recent Accounting Pronouncements In February 2016, the FASB issued ASU 2016-02, Leases (ASC 842), which sets out the principles for the recognition, measurement, presentation and disclosure of leases for both parties to a contract (i.e. lessees and lessors). The new standard requires lessees to apply a dual approach, classifying leases as either finance or operating leases based on the principle of whether or not the lease is effectively a financed purchase by the lessee. This classification will determine whether lease expense is recognized based on an effective interest method or on a straight line basis over the term of the lease, respectively. A lessee is also required to record a right-of-use asset and a lease liability for all leases with a term of greater than 12 months regardless of their classification. Leases with a term of 12 months or less will be accounted for similar to existing guidance for operating leases today. ASC 842 supersedes the previous leases standard, ASC 840. The standard is effective on January 1, 2019, with early adoption permitted. The Company is in the process of evaluating the impact of this new guidance. In January 2016, the FASB issued ASU 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities, which addresses certain aspects of recognition, measurement, presentation and disclosure of financial instruments. ASU 2016-01 is effective for annual reporting periods, and interim periods within those annual periods, beginning after December 15, 2017. The Company is currently evaluating the impact of the future adoption of this standard, but the adoption is not expected to have a material effect on the consolidated financial statements. 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 standard 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. The Company is currently evaluating the impact of the future adoption of this standard, but the adoption is not expected to have a material effect on the 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 disclosures 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, as specified in ASU 2015-14, is now 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. The Company is currently evaluating the impact of the future adoption of this standard.

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	3 Months Ended
	Mar. 31, 2016
Fair Value Disclosures [Abstract]
Schedule of fair value measurements using significant unobservable inputs	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, 2015 $ 393 Foreign currency translation adjustments 11 Payments (20 ) Balance as of March 31, 2016 $ 384

Marketable Securities (Tables)

Marketable Securities (Tables)	3 Months Ended
	Mar. 31, 2016
Investments, Debt and Equity Securities [Abstract]
Schedule of available-for-sale marketable securities	The table below summarizes the Company’s available-for-sale marketable securities' amortized cost, gross unrealized gains, gross unrealized losses, and fair value by significant investment category recorded as short-term marketable securities or long-term marketable securities as of March 31, 2016 (refer to Note 4 for discussion of our fair value hierarchy). The Company had total marketable securities of $53,620 as of December 31, 2015 . Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Short-term Marketable Securities Long-term Marketable Securities Level 1: U.S. Treasuries $ 4,012 $ — $ — $ 4,012 $ 2,005 $ 2,007 U.S. government agencies 3,619 — — 3,619 3,619 — Subtotal 7,631 — — 7,631 5,624 2,007 Level 2: Corporate securities 36,002 13 (14 ) 36,001 31,909 4,092 Subtotal 36,002 13 (14 ) 36,001 31,909 4,092 Total $ 43,633 $ 13 $ (14 ) $ 43,632 $ 37,533 $ 6,099
Schedule of amortized cost and fair value of short-term and long-term marketable securities	The amortized cost and fair value of short-term and long-term marketable securities as of March 31, 2016 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 $ 37,534 $ 37,533 One to two years 6,099 6,099 Total $ 43,633 $ 43,632

Inventories (Tables)

Inventories (Tables)	3 Months Ended
	Mar. 31, 2016
Inventory Disclosure [Abstract]
Schedule of inventories	Inventories consisted of the following: March 31, 2016 December 31, 2015 Raw materials $ 6,592 $ 6,821 Work-in-process 3,936 3,113 Finished goods 6,568 7,539 Total inventories $ 17,096 $ 17,473

Property and Equipment (Tables)

Property and Equipment (Tables)	3 Months Ended
	Mar. 31, 2016
Property, Plant and Equipment [Abstract]
Schedule of property and equipment	Property and equipment consisted of the following: March 31, 2016 December 31, 2015 Furniture and fixtures $ 1,480 $ 1,229 Leasehold improvements 2,540 2,244 Computers and software 3,765 3,245 Demonstration equipment 9,075 8,414 Machinery and equipment 7,190 6,428 Construction in progress 1,168 1,015 Total 25,218 22,575 Accumulated depreciation (12,755 ) (11,052 ) Property and equipment, net $ 12,463 $ 11,523

Goodwill and Other Intangible26

Goodwill and Other Intangible Assets (Tables)	3 Months Ended
	Mar. 31, 2016
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of intangible assets and goodwill	Changes in the carrying amount of amortizable intangible assets and goodwill for the three months ended March 31, 2016 are as follows: Amortizable intangible assets: Balance at December 31, 2015 $ 13,819 Amortization (682 ) Foreign currency translation adjustment 385 Balance at March 31, 2016 $ 13,522 Goodwill: Balance at December 31, 2015 20,105 Foreign currency translation adjustment 585 Balance at March 31, 2016 $ 20,690 The gross carrying amount of goodwill and other intangible assets and the related accumulated amortization for amortizable intangible assets as of March 31, 2016 and December 31, 2015 are as follows: March 31, 2016 December 31, 2015 Gross carrying amount Accumulated amortization Net carrying value Gross carrying amount Accumulated amortization Net carrying value Amortizable intangible assets: Customer relationships $ 1,742 $ (793 ) $ 949 $ 1,683 $ (732 ) $ 951 Developed technology 21,082 (8,565 ) 12,517 20,498 (7,687 ) 12,811 Other intangible assets 2,262 (2,206 ) 56 2,198 (2,141 ) 57 Total amortizable intangible assets $ 25,086 $ (11,564 ) $ 13,522 $ 24,379 $ (10,560 ) $ 13,819 Unamortizable intangible assets: Goodwill $ 20,690 $ — $ 20,690 $ 20,105 $ — $ 20,105
Schedule of finite-lived intangible assets, future amortization expense	As of March 31, 2016 , estimated aggregate future amortization expense for the intangible assets is as follows: Estimated amortization expenses: 2016 (remaining) $ 2,111 2017 2,815 2018 2,815 2019 2,815 2020 2,800 2021 166 Total $ 13,522

Accrued Expenses and Other Cu27

Accrued Expenses and Other Current Liabilities (Tables)	3 Months Ended
	Mar. 31, 2016
Payables and Accruals [Abstract]
Schedule of accrued expense and other current liabilities	Accrued expenses and other current liabilities consisted of the following: March 31, 2016 December 31, 2015 Payroll and employee related expenses $ 4,412 $ 4,787 Accrued warranty costs 624 922 Sales and other taxes payable 184 320 Other accrued liabilities 3,089 3,174 Accrued expenses and other current liabilities $ 8,309 $ 9,203

Commitments and Contingencies (

Commitments and Contingencies (Tables)	3 Months Ended
	Mar. 31, 2016
Commitments and Contingencies Disclosure [Abstract]
Schedule of future minimum lease payments under noncancelable operating leases	Future minimum lease payments under noncancelable operating leases at March 31, 2016 are as follows: Amount Year: 2016 (remaining) $ 1,292 2017 1,792 2018 1,567 2019 1,534 2020 1,153 2021 1,051 Thereafter 370 Total $ 8,759

Stock-based Compensation (Table

Stock-based Compensation (Tables)	3 Months Ended
	Mar. 31, 2016
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Schedule of stock options activity	Following is a summary of stock option activity for the three months ended March 31, 2016 : Number of Options Weighted average exercise price Weighted average remaining contractual term Outstanding at December 31, 2015 848,400 $ 11.10 7.7 years Granted 217,244 5.31 Exercised (9,523 ) 1.15 Forfeited (812 ) 2.83 Outstanding at March 31, 2016 1,055,309 10.02 8.0 years Vested and exercisable at March 31, 2016 298,895 $ 2.83
Schedule of restricted stock and restricted stock units	Following is a summary of restricted stock and restricted stock units activity for the three months ended March 31, 2016 : Number of Restricted Stock Shares Number of Restricted Stock Units Unvested at December 31, 2015 1,083,793 — Granted — 212,504 Vested (86,052 ) — Forfeited (674 ) — Unvested at March 31, 2016 997,067 212,504
Schedule of stock-based compensation expense	We recognized stock-based compensation expense as follows during the three months ended March 31, 2016 and 2015 : Three Months Ended March 31, 2016 2015 Cost of revenues $ 47 $ — Research and development 111 1 Sales and marketing 269 1 General and administrative 910 3 Total $ 1,337 $ 5

Net Loss per Common Share (Tabl

Net Loss per Common Share (Tables)	3 Months Ended
	Mar. 31, 2016
Earnings Per Share [Abstract]
Schedule of earnings per share, basic and diluted	After giving effect to the corporate conversion 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 months ended March 31, 2016 and 2015 . Three Months Ended March 31, 2016 2015 Numerator: Net loss attributable to common stockholders $ (17,062 ) $ (15,274 ) Denominator: Weighted-average common shares outstanding - basic 24,957,002 15,318,390 Dilutive effect of stock options, warrants, restricted stock, and restricted stock units 1 — — Weighted-average common shares outstanding - diluted 24,957,002 15,318,390 Net loss per share attributable to common stockholders - basic and diluted $ (0.68 ) $ (1.00 ) 1 Potentially dilutive stock options, warrants, restricted stock, and restricted stock units 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 months ended March 31, 2016 and 2015 .
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 March 31, 2016 Stock options 1,055,309 Warrants for common stock 4,061 Restricted stock 997,067 Restricted stock units 212,504 Total 2,268,941

Segment, Geographical, and Cu31

Segment, Geographical, and Customer Concentration (Tables)	3 Months Ended
	Mar. 31, 2016
Segment Reporting [Abstract]
Schedule of net revenues by geographic area	The following table represents net revenues by geographic area based on the location of the customer during the three months ended March 31, 2016 and 2015 : Three Months Ended 2016 2015 United States $ 16,603 $ 15,321 International 1,859 1,427 Total $ 18,462 $ 16,748
Schedule of long-lived assets by geographic area	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: March 31, 2016 December 31, 2015 United States $ 8,155 $ 7,694 Israel 32,042 31,694 Other Regions 6,478 6,059 Total $ 46,675 $ 45,447

Background and Basis of Prese32

Background and Basis of Presentation (Details) - USD ($) $ / shares in Units, $ in Thousands	Jun. 10, 2015	Jun. 04, 2015	Mar. 31, 2016	Dec. 31, 2015	Mar. 31, 2015
Business Acquisition [Line Items]
Aggregate number of options shareholders have (in shares)		339,373	1,055,309	848,400
IPO
Business Acquisition [Line Items]
Proceeds from IPO	$ 94,186
Payment for underwriting discounts and commissions	7,405
Offering expenses	$ 4,197
Common Stock
Business Acquisition [Line Items]
Shares available for conversion (in shares)		17,580,918
Common Stock | Underwriter Option
Business Acquisition [Line Items]
Price of shares sold to underwriter (in usd per share)	$ 15
Common Stock | IPO
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
Common Stock | Over-Allotment Option
Business Acquisition [Line Items]
IPO shares (in shares)	952,500
Restricted stock
Business Acquisition [Line Items]
Shares available for conversion (in shares)		579,869
Warrants for common stock
Business Acquisition [Line Items]
Aggregate amount of convertible securities (in shares)		187,161
EndoChoice Israel, Ltd.
Business Acquisition [Line Items]
Ownership interest percentage (in shares)			67.00%		67.00%

Fair Value Measurements - Sched

Fair Value Measurements - Schedule of Fair Value Measurements Using Significant Unobservable Inputs (Details) - Contingent liabilities for accrued earn-out acquisition consideration $ in Thousands	3 Months Ended
	Mar. 31, 2016USD ($)
Fair value measurements using significant unobservable inputs (level 3):
Beginning balance	$ 393
Foreign currency translation adjustments	11
Payments	(20)
Ending balance	$ 384

Fair Value Measurements - Narra

Fair Value Measurements - Narrative (Details) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Accrued Expenses and Other Current Liabilities
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Amount of contingent liabilities	$ 384	$ 110
Other Long-term Liabilities
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Amount of contingent liabilities		$ 283

Marketable Securities - Narrati

Marketable Securities - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Dec. 31, 2015
Investments, Debt and Equity Securities [Abstract]
Marketable securities	$ 43,632	$ 53,620
Net unrealized losses	$ 1

Marketable Securities - Schedul

Marketable Securities - Schedule of Available-for-Sale Marketable Securities (Details) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Amortized Cost	$ 43,633
Gross Unrealized Gains	13
Gross Unrealized Losses	(14)
Fair Value	43,632	$ 53,620
Short-term Marketable Securities	37,533
Long-term Marketable Securities	6,099
Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Amortized Cost	7,631
Gross Unrealized Gains	0
Gross Unrealized Losses	0
Fair Value	7,631
Short-term Marketable Securities	5,624
Long-term Marketable Securities	2,007
Level 1 | U.S. Treasuries
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Amortized Cost	4,012
Gross Unrealized Gains	0
Gross Unrealized Losses	0
Fair Value	4,012
Short-term Marketable Securities	2,005
Long-term Marketable Securities	2,007
Level 1 | U.S. government agencies
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Amortized Cost	3,619
Gross Unrealized Gains	0
Gross Unrealized Losses	0
Fair Value	3,619
Short-term Marketable Securities	3,619
Long-term Marketable Securities	0
Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Amortized Cost	36,002
Gross Unrealized Gains	13
Gross Unrealized Losses	(14)
Fair Value	36,001
Short-term Marketable Securities	31,909
Long-term Marketable Securities	4,092
Level 2 | Corporate securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Amortized Cost	36,002
Gross Unrealized Gains	13
Gross Unrealized Losses	(14)
Fair Value	36,001
Short-term Marketable Securities	31,909
Long-term Marketable Securities	$ 4,092

Marketable Securities - Sched37

Marketable Securities - Schedule of Amortized Cost and Fair Value of Short-term and Long-term Marketable Securities (Details) $ in Thousands	Mar. 31, 2016USD ($)
Amortized Cost
Less than one year	$ 37,534
Less than one year	6,099
Total	43,633
Fair Value
Less than one year	37,533
Total	6,099
Total	$ 43,632

Inventories (Details)

Inventories (Details) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Inventory Disclosure [Abstract]
Raw materials	$ 6,592	$ 6,821
Work-in-process	3,936	3,113
Finished goods	6,568	7,539
Inventory, Net	$ 17,096	$ 17,473

Property and Equipment - Schedu

Property and Equipment - Schedule of Property and Equipment (Details) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Property, Plant and Equipment [Line Items]
Total	$ 25,218	$ 22,575
Accumulated depreciation	(12,755)	(11,052)
Property and equipment, net	12,463	11,523
Furniture and fixtures
Property, Plant and Equipment [Line Items]
Total	1,480	1,229
Leasehold improvements
Property, Plant and Equipment [Line Items]
Total	2,540	2,244
Computers and software
Property, Plant and Equipment [Line Items]
Total	3,765	3,245
Demonstration equipment
Property, Plant and Equipment [Line Items]
Total	9,075	8,414
Machinery and equipment
Property, Plant and Equipment [Line Items]
Total	7,190	6,428
Construction in progress
Property, Plant and Equipment [Line Items]
Total	$ 1,168	$ 1,015

Property and Equipment - Narrat

Property and Equipment - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Property, Plant and Equipment [Line Items]
Depreciation expense	$ 1,651	$ 1,415
Impairment	423	912
Demonstration Equipment
Property, Plant and Equipment [Line Items]
Impairment	$ 282	$ 912

Goodwill and Other Intangible41

Goodwill and Other Intangible Assets - Schedule of Intangible Assets and Goodwill (Details) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Amortizable intangible assets:
Gross carrying amount	$ 25,086	$ 24,379
Accumulated amortization	(11,564)	(10,560)
Net carrying value	13,522	13,819
Unamortizable intangible assets:
Gross carrying amount	20,690	20,105
Accumulated amortization	0	0
Net carrying value	20,690	20,105
Customer relationships
Amortizable intangible assets:
Gross carrying amount	1,742	1,683
Accumulated amortization	(793)	(732)
Net carrying value	949	951
Developed technology
Amortizable intangible assets:
Gross carrying amount	21,082	20,498
Accumulated amortization	(8,565)	(7,687)
Net carrying value	12,517	12,811
Other intangible assets
Amortizable intangible assets:
Gross carrying amount	2,262	2,198
Accumulated amortization	(2,206)	(2,141)
Net carrying value	$ 56	$ 57

Goodwill and Other Intangible42

Goodwill and Other Intangible Assets - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Goodwill and Intangible Assets Disclosure [Abstract]
Amortization of intangible assets	$ 682	$ 687

Goodwill and Other Intangible43

Goodwill and Other Intangible Assets - Schedule of Estimated Amortization Expense (Details) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Estimated amortization expenses:
2016 (remaining)	$ 2,111
2,017	2,815
2,018	2,815
2,019	2,815
2,020	2,800
2,021	166
Net carrying value	$ 13,522	$ 13,819

Goodwill and Other Intangible44

Goodwill and Other Intangible Assets - Schedule of Amortizable Intangible Assets and Goodwill (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Amortizable intangible assets:
Finite-lived intangible assets, beginning	$ 13,819
Amortization	(682)	$ (687)
Foreign currency translation adjustment	385
Finite-lived intangible assets, ending	13,522
Goodwill:
Goodwill, beginning	20,105
Foreign currency translation adjustment	585
Goodwill, ending	$ 20,690

Accrued Expenses and Other Cu45

Accrued Expenses and Other Current Liabilities (Details) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Payables and Accruals [Abstract]
Payroll and employee related expenses	$ 4,412	$ 4,787
Accrued warranty costs	624	922
Sales and other taxes payable	184	320
Other accrued liabilities	3,089	3,174
Accrued expenses and other current liabilities	$ 8,309	$ 9,203

Debt (Details)

Debt (Details) - USD ($)	Jun. 30, 2015	Mar. 31, 2016	Dec. 31, 2015
Debt Instrument [Line Items]
Long-term debt, net of discount		$ 42,670,000	$ 42,643,000
Revolving Credit Facility
Debt Instrument [Line Items]
Revolving credit facility amount	$ 15,000,000
Long term revolving credit facility		$ 0
Revolving Credit Facility | LIBOR
Debt Instrument [Line Items]
Revolving credit facility spread (as a percent)	5.25%
Revolving credit facility unused line fee (as a percent)	0.50%
Secured Debt | Term Loan Facility
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 (as a percent)	2.95%
Interest only period for term loan	30 months
Line of Credit | Revolving Credit Facility
Debt Instrument [Line Items]
Loan agreement term	5 years

Commitments and Contingencies -

Commitments and Contingencies - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Commitments and Contingencies Disclosure [Abstract]
Rent expense for operating lease	$ 370	$ 288

Commitments and Contingencies48

Commitments and Contingencies - Schedule of Future Minimum Lease Payments (Details) $ in Thousands	Mar. 31, 2016USD ($)
Year:
2016 (remaining)	$ 1,292
2,017	1,792
2,018	1,567
2,019	1,534
2,020	1,153
2,021	1,051
Thereafter	370
Total	$ 8,759

Stock-based Compensation - Narr

Stock-based Compensation - Narrative (Details)	3 Months Ended
	Mar. 31, 2016USD ($)shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of options granted (in shares)	217,244
Stock Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation cost related to stock options | $	$ 3,010,000
Weighted average period of compensation cost recognition	3 years 4 months 24 days
Stock Options | Common Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
ESPP payroll deduction percentage (up to)	15.00%
ESPP share purchase limitation (in shares) (lesser)	5,000
ESPP purchase limitation market value of common shares | $	$ 25,000
Restricted stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Awards granted (in shares)	0
Weighted average period of compensation cost recognition	3 years
Unrecognized compensation cost related to the restricted stock | $	$ 8,103,000
Restricted Stock Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Awards granted (in shares)	212,504
Weighted average period of compensation cost recognition	4 years
Unrecognized compensation cost related to the restricted stock | $	$ 953,000
2015 Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award shares authorized (in shares)	2,301,145
2015 Plan | Common Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Percentage increase in issued shares by outstanding shares	4.00%
2015 Plan | Stock Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of options granted (in shares)	795,957
2015 Plan | Restricted stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Awards granted (in shares)	649,067
2015 Plan | Restricted Stock Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Awards granted (in shares)	212,504

Stock-based Compensation - Sche

Stock-based Compensation - Schedule of Stock Options Activity (Details) - $ / shares	3 Months Ended	12 Months Ended
	Mar. 31, 2016	Dec. 31, 2014
Number of Options
Number of options outstanding, beginning balance (in shares)	848,400
Number of options granted (in shares)	217,244
Number of options exercised (in shares)	(9,523)
Number of options forfeited (in shares)	(812)
Number of options outstanding, ending balance (in shares)	1,055,309
Number of options vested and exercisable (in shares)	298,895
Weighted average exercise price
Options outstanding, Weighted average exercise price, beginning balance (in dollars per share)	$ 11.10
Options granted, Weighted average exercise price (in dollars per share)	5.31
Options exercised, Weighted average exercise price (in dollars per share)	1.15
Options forfeited, Weighted average exercise price (in dollars per share)	2.83
Options outstanding, Weighted average exercise price, ending balance (in dollars per share)	10.02
Options vested and exercisable, Weighted average exercise price (in dollars per share)	$ 2.83
Weighted average remaining contractual term
Options outstanding, Weighted average remaining contractual term	8 years 6 days	7 years 8 months 24 days

Stock-based Compensation - Sc51

Stock-based Compensation - Schedule of Restricted and Restricted Stock Units (Details)	3 Months Ended
	Mar. 31, 2016shares
Restricted Stock
Number of Restricted Stock Shares and Units
Number of Restricted Stock Shares, beginning balance (in shares)	1,083,793
Number of Restricted Stock Shares, Granted (in shares)	0
Number of Restricted Stock Shares, Vested (in shares)	(86,052)
Number of Restricted Stock Shares, Forfeited (in shares)	(674)
Number of Restricted Stock Shares, ending balance (in shares)	997,067
Restricted Stock Units
Number of Restricted Stock Shares and Units
Number of Restricted Stock Shares, beginning balance (in shares)	0
Number of Restricted Stock Shares, Granted (in shares)	212,504
Number of Restricted Stock Shares, Vested (in shares)	0
Number of Restricted Stock Shares, Forfeited (in shares)	0
Number of Restricted Stock Shares, ending balance (in shares)	212,504

Stock-based Compensation - Sc52

Stock-based Compensation - Schedule of Stock-based Compensation Expense (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Total	$ 1,337	$ 5
Cost of revenues
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Total	47	0
Research and development
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Total	111	1
Sales and marketing
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Total	269	1
General and administrative
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Total	$ 910	$ 3

Net Loss per Common Share - Sch

Net Loss per Common Share - Schedule of Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Numerator:
Net loss attributable to common stockholders	$ (17,062)	$ (15,274)
Denominator:
Weighted-average common shares outstanding - basic	24,957,002	15,318,390
Dilutive effect of stock options, warrants, restricted stock and restricted stock units (in shares)	0	0
Weighted-average common shares outstanding - diluted	24,957,002	15,318,390
Net loss per share attributable to common stockholders - basic and diluted (in usd per share)	$ (0.68)	$ (1)

Net Loss per Common Share - S54

Net Loss per Common Share - Schedule of Antidilutive Securities (Details)	3 Months Ended
	Mar. 31, 2016shares
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total (in shares)	2,268,941
Stock options
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total (in shares)	1,055,309
Warrants for common stock
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total (in shares)	4,061
Restricted stock
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total (in shares)	997,067
Restricted stock units
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total (in shares)	212,504

Income Taxes (Details)

Income Taxes (Details) - USD ($)	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015	Dec. 31, 2015
Income Tax Disclosure [Abstract]
Income tax expense (benefit)	$ (30,000)	$ 199,000
Effective rates	0.19%	1.30%
Liability for uncertain tax positions	$ 0		$ 0

Segment, Geographical, and Cu56

Segment, Geographical, and Customer Concentration (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2016USD ($)segment	Mar. 31, 2015USD ($)	Dec. 31, 2015USD ($)
Segment Reporting [Abstract]
Number of reportable segments | segment	1
Segment Reporting Information [Line Items]
Total revenues	$ 18,462	$ 16,748
Total long-lived assets	46,675		$ 45,447
United States | Reportable Geographical Components
Segment Reporting Information [Line Items]
Total revenues	16,603	15,321
Total long-lived assets	8,155		7,694
International | Reportable Geographical Components
Segment Reporting Information [Line Items]
Total revenues	1,859	$ 1,427
Israel | Reportable Geographical Components
Segment Reporting Information [Line Items]
Total long-lived assets	32,042		31,694
Other Regions | Reportable Geographical Components
Segment Reporting Information [Line Items]
Total long-lived assets	$ 6,478		$ 6,059