Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2017 | Oct. 20, 2017 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | APOLLO ENDOSURGERY, INC. | |
Entity Central Index Key | 1,251,769 | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2017 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Smaller Reporting Company | |
Entity Common Stock, Shares Outstanding | 17,290,347 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q3 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Current assets: | ||
Cash and cash equivalents | $ 34,553 | $ 19,111 |
Accounts receivable, net of allowance for doubtful accounts of $435 and $479, respectively | 12,327 | 10,509 |
Inventory, net | 12,773 | 12,163 |
Prepaid expenses and other current assets | 1,149 | 1,838 |
Total current assets | 60,802 | 43,621 |
Restricted cash | 946 | 930 |
Property and equipment, net of accumulated depreciation of $6,046 and $4,404, respectively | 6,955 | 6,889 |
Goodwill | 6,828 | 6,828 |
Intangible assets, net of accumulated amortization of $26,580 and $20,959, respectively | 38,130 | 43,315 |
Other assets | 341 | 541 |
Total assets | 114,002 | 102,124 |
Current liabilities: | ||
Accounts payable | 16,194 | 13,650 |
Accrued expenses | 7,792 | 6,630 |
Total current liabilities | 23,986 | 20,280 |
Long-term debt | 33,177 | 39,427 |
Total liabilities | 57,163 | 59,707 |
Commitments and contingencies | ||
Stockholders' equity: | ||
Common stock; $0.001 par value; 100,000,000 shares authorized; 17,290,347 and 10,688,992 shares issued and outstanding at September 30, 2017 and December 31, 2016, respectively | 17 | 11 |
Additional paid-in capital | 224,899 | 190,664 |
Accumulated other comprehensive income | 1,629 | 1,471 |
Accumulated deficit | (169,706) | (149,729) |
Total stockholders' equity | 56,839 | 42,417 |
Total liabilities and stockholders' equity | $ 114,002 | $ 102,124 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts | $ 435 | $ 479 |
Accumulated depreciation | 6,046 | 4,404 |
Accumulated amortization | $ 26,580 | $ 20,959 |
Common stock, par value (USD per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized (shares) | 100,000,000 | 100,000,000 |
Common stock, shares issued (shares) | 17,290,347 | 10,688,992 |
Common stock, shares outstanding (shares) | 17,290,347 | 10,688,992 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations and Comprehensive Loss - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Income Statement [Abstract] | ||||
Revenues | $ 16,544 | $ 15,786 | $ 48,170 | $ 49,319 |
Cost of sales | 6,012 | 5,253 | 17,744 | 19,356 |
Gross margin | 10,532 | 10,533 | 30,426 | 29,963 |
Operating expenses: | ||||
Sales and marketing | 7,978 | 6,832 | 24,832 | 23,541 |
General and administrative | 2,858 | 3,842 | 10,293 | 8,808 |
Research and development | 2,178 | 1,782 | 6,420 | 5,222 |
Amortization of intangible assets | 1,803 | 1,799 | 5,444 | 5,399 |
Total operating expenses | 14,817 | 14,255 | 46,989 | 42,970 |
Loss from operations | (4,285) | (3,722) | (16,563) | (13,007) |
Other expenses: | ||||
Interest expense, net | 1,013 | 1,533 | 3,529 | 6,881 |
Other (income) expense | (451) | 674 | (283) | 1,364 |
Net loss before income taxes | (4,847) | (5,929) | (19,809) | (21,252) |
Income tax expense | 55 | 4 | 168 | 203 |
Net loss | (4,902) | (5,933) | (19,977) | (21,455) |
Current dividends on convertible preferred stock | 0 | (2,396) | 0 | (6,913) |
Net loss attributable to common stockholders | (4,902) | (8,329) | (19,977) | (28,368) |
Other comprehensive income (loss): | ||||
Foreign currency translation | (227) | 406 | 158 | 1,611 |
Comprehensive loss | $ (5,129) | $ (5,527) | $ (19,819) | $ (19,844) |
Net loss per share, basic and diluted (USD per share) | $ (0.32) | $ (24.85) | $ (1.62) | $ (85.63) |
Shares used in computing net loss per share, basic and diluted (shares) | 15,481,872 | 335,172 | 12,310,426 | 331,288 |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Changes in Stockholders’ Equity - 9 months ended Sep. 30, 2017 - USD ($) $ in Thousands | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Accumulated Other Comprehensive Income [Member] | Accumulated Deficit [Member] |
Beginning balance, shares at Dec. 31, 2016 | 10,688,992 | 10,688,992 | |||
Beginning balance at Dec. 31, 2016 | $ 42,417 | $ 11 | $ 190,664 | $ 1,471 | $ (149,729) |
Stockholders' Equity: | |||||
Exercise of common stock options, shares | 58,902 | ||||
Exercise of common stock options | 119 | 119 | |||
Issuances of common stock, net of issuance costs, shares | 6,542,453 | ||||
Issuances of common stock, net of issuance costs of $2,400 | 33,584 | $ 6 | 33,578 | ||
Stock based compensation | 538 | 538 | |||
Foreign currency translation | 158 | 158 | |||
Net loss | $ (19,977) | (19,977) | |||
Ending balance, shares at Sep. 30, 2017 | 17,290,347 | 17,290,347 | |||
Ending balance at Sep. 30, 2017 | $ 56,839 | $ 17 | $ 224,899 | $ 1,629 | $ (169,706) |
Condensed Consolidated Stateme6
Condensed Consolidated Statements of Changes in Stockholders’ Equity (Parenthetical) $ in Thousands | 9 Months Ended |
Sep. 30, 2017USD ($) | |
Statement of Stockholders' Equity [Abstract] | |
Issuance costs | $ 2,400 |
Condensed Consolidated Stateme7
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Cash flows from operating activities: | ||
Net loss | $ (19,977) | $ (21,455) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation and amortization | 7,260 | 6,747 |
Amortization of deferred financing costs | 257 | 246 |
Non-cash interest expense | 493 | 3,895 |
Change in fair value of warrant liability | 0 | (918) |
Provision for doubtful accounts receivable | 106 | 173 |
Change in inventory reserve | 199 | 3,297 |
Stock based compensation | 538 | 309 |
Foreign exchange on short-term intercompany loans | (592) | 1,069 |
Changes in operating assets and liabilities: | ||
Accounts receivable | (1,414) | 116 |
Inventory | (729) | (4,092) |
Prepaid expenses and other assets | 885 | 882 |
Accounts payable and accrued expenses | 3,299 | 3,199 |
Net cash used in operating activities | (9,675) | (6,532) |
Cash flows from investing activities: | ||
Purchases of property and equipment | (1,258) | (624) |
Purchase of intangibles and other assets | (419) | (993) |
Net cash used in investing activities | (1,677) | (1,617) |
Cash flows from financing activities: | ||
Proceeds from exercise of stock options | 119 | 45 |
Proceeds from issuance of common stock, net of issuance costs | 33,584 | 0 |
Payment of debt | (7,000) | 0 |
Payment of contingent consideration | 0 | (5,000) |
Net cash provided by (used in) financing activities | 26,703 | (4,955) |
Effect of exchange rate changes on cash | 107 | 55 |
Net decrease in cash, cash equivalents and restricted cash | 15,458 | (13,049) |
Cash, cash equivalents and restricted cash at beginning of year | 20,041 | 22,586 |
Cash, cash equivalents and restricted cash at end of period | 35,499 | 9,537 |
Supplemental disclosure of cash flow information: | ||
Cash paid for interest | 2,875 | 3,694 |
Cash paid for income taxes | 178 | 0 |
Supplemental disclosure of non-cash investing and financing activity: | ||
Accretion of dividends on preferred stock | $ 0 | $ 6,913 |
Organization and Business Descr
Organization and Business Description | 9 Months Ended |
Sep. 30, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Business Description | Organization and Business Description Apollo Endosurgery, Inc. is a Delaware corporation with both domestic and foreign wholly-owned subsidiaries. Throughout these Notes "Apollo" and the "Company" refer to Apollo Endosurgery, Inc. and its consolidated subsidiaries. Apollo is a medical technology company primarily focused on the design, development, and commercialization of innovative medical devices that can be used for the treatment of obesity. The Company develops and distributes minimally invasive surgical and non-surgical devices for bariatric and gastrointestinal procedures that are used by general surgeons, bariatric surgeons and gastroenterologists in a variety of settings to provide interventional therapy to patients who suffer from obesity and the many co-morbidities associated with obesity. The Company's core products include the Orbera® intra-gastric balloon system, the OverStitch™ endoscopic suturing system and the Lap-Band® adjustable gastric banding system. All devices are regulated by the United States Food and Drug Administration (the "FDA") and equivalent regulatory bodies outside the United States. The Company's products are sold throughout the world with principal markets in the United States of America, Europe, Australia, Brazil and Canada. The Company also has a manufacturing facility located in Costa Rica. |
Significant Accounting Policies
Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2017 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | Significant Accounting Policies (a) Basis of Presentation The Company prepared its interim condensed consolidated financial statements in conformity with accounting principles generally accepted in the United States of America ("GAAP"). They do not include all of the information and footnotes required by GAAP for complete financial statements. The accompanying condensed consolidated financial statements include the Company's accounts and the accounts of its wholly-owned subsidiaries. The Company has eliminated all intercompany balances and transactions. The Company has made estimates and judgments affecting the amounts reported in its condensed consolidated financial statements and the accompanying notes. The actual results that the Company experiences may differ materially from the Company's estimates. The accounting estimates that require the Company's most significant, difficult and subjective judgments include useful lives of intangible assets and long-lived assets, valuation of inventory, allowance for doubtful accounts, stock compensation, and deferred tax asset valuation. (b) Unaudited Interim Results In management's opinion, the unaudited financial information for the interim periods presented includes all adjustments necessary for a fair presentation of the results of operations, financial position, and cash flows. All adjustments are of a normal recurring nature unless otherwise disclosed. Revenues, expenses, assets and liabilities can vary during each quarter of the year. Therefore, the results and trends in these interim financial statements may not be the same as those for the full year. This interim information should be read in conjunction with the audited consolidated financial statements in our Annual Report on Form 10-K for the year ended December 31, 2016 . Certain reclassifications of prior period amounts have been made to conform to the current presentation. (c) Recent Accounting Pronouncements In May 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2014-09, Revenue from Contracts with Customers ("ASU 2014-09"), which requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. ASU 2014-09 replaces most existing revenue recognition guidance in GAAP. In July 2015, the FASB approved a one-year deferral of this standard, with a revised effective date for annual and interim reporting in fiscal years beginning after December 15, 2017. In March 2016 and April 2016, the FASB issued ASU 2016-08, Principal versus Agent Considerations (Reporting Revenue Gross versus Net ) and ASU 2016-10, Identifying Performance Obligations and Licensing , respectively. ASU 2014-09 permits the use of either the retrospective or modified retrospective (cumulative effect) transition method. While we are finalizing our assessment on the impact of the new standard, our revenue is primarily generated from the sale of finished product to customers. Those sales predominantly contain a single delivery element and revenue is recognized at a single point in time when ownership, risks and rewards transfer. These are largely unimpacted by the new standard. Therefore, we do not expect this new guidance to have a material impact on the Company's consolidated financial statements. The Company expects to adopt this new standard using the modified restrospective method and continues to review this guidance to complete its evaluation of the impact on its consolidated financial statements and disclosures. In addition, the Company continues to monitor additional changes, modifications, clarifications or interpretations being undertaken by the FASB, which may impact the Company’s current conclusions. The Company has adopted the provisions of ASU 2015-11, Simplifying the Measurement of Inventory ("ASU 2015-11"), which simplifies the subsequent measurement of inventory by requiring inventory to be measured at the lower of cost and net realizable value. Net realizable value is the estimated selling price in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation. The adoption of ASU 2015-11 as of January 1, 2017 resulted in no material impact on the Company's consolidated financial statements. The Company has adopted the provisions of ASU 2015-17, Balance Sheet Classification of Deferred Taxes ("ASU 2015-17") which requires that all deferred tax assets and liabilities, along with any related valuation allowance, be classified as noncurrent on the balance sheet. The adoption of ASU 2015-17 as of January 1, 2017 resulted in no material impact on the Company's consolidated financial statements. In February 2016, the FASB issued ASU 2016-02, Leases ("ASU 2016-02") which requires a lessee to recognize assets and liabilities for leases with a maximum possible term of more than 12 months. A lessee would recognize a liability to make lease payments (the lease liability) and a right-of-use asset representing its right to use the leased asset (the underlying asset) for the lease term which will require companies to recognize most leases on the balance sheet, thereby increasing reported assets and liabilities. Extensive quantitative and qualitative disclosures, including significant judgments made by management, will be required. ASU 2016-02 requires adoption using a modified retrospective transition with application of the guidance at the beginning of the earliest comparative period presented. ASU 2016-02 will be effective for the Company on January 1, 2019. Early adoption is permitted. The Company is evaluating the effect that ASU 2016-02 will have on its consolidated financial statements. The Company has adopted the provisions of ASU 2016-09, Improvements to Employee Share-Based Payment Accounting ("ASU 2016-09"), which contains guidance on accounting for certain aspects of share-based payments to employees. ASU 2016-09 requires excess tax benefits and tax deficiencies to be recorded in the income statement when the awards vest or are settled. Furthermore, cash flows related to excess tax benefits will no longer be separately classified as a financing activity apart from other income tax cash flows. ASU 2016-09 also allows companies to repurchase more of an employee's shares for tax withholding purposes without triggering liability accounting, clarifying that all cash payments made on an employee's behalf for withheld shares should be presented as a financing activity in the consolidated statements of cash flows and provides an accounting policy election to account for forfeitures as they occur. The adoption of ASU 2016-09 as of January 1, 2017 resulted in no material impact on the Company's consolidated financial statements. In January 2017, the FASB issued ASU 2017-04, Intangibles - Goodwill and Other: Simplifying the Test for Goodwill Impairment (“ASU 2017-04”) to simplify the accounting for goodwill impairment. The guidance removes Step 2 of the goodwill impairment test, which requires a hypothetical purchase price allocation. A goodwill impairment will now be the amount by which a reporting unit’s carrying value exceeds its fair value, not to exceed the carrying amount of goodwill. Entities will continue to have the option to perform a qualitative assessment to determine if a quantitative impairment test is necessary. ASU 2017-04 will be effective for the Company for annual and interim reporting in fiscal years beginning after December 15, 2019. Early adoption is permitted. The effect of ASU 2017-04 on the Company's consolidated financial statements will be dependent on any future impairments. |
Acquisitions
Acquisitions | 9 Months Ended |
Sep. 30, 2017 | |
Business Combinations [Abstract] | |
Acquisitions | Acquisitions On December 29, 2016 , the Company completed a business combination with Lpath, Inc. ("Lpath"), a publicly held company, in accordance with the terms of the Agreement and Plan of Merger and Reorganization dated September 8, 2016 (the "Merger"). The following summary pro forma condensed consolidated financial information reflects the Merger with Lpath as if it had occurred on January 1, 2016 for purposes of the statements of operations. This summary pro forma information is not necessarily representative of what the Company’s results of operations would have been had the Merger in fact occurred on January 1, 2016, and is not intended to project the Company’s results of operations for any future period. Pro forma condensed consolidated financial information for the nine months ended September 30, 2016 (unaudited): Pro forma combined revenues $ 49,362 Pro forma combined net loss $ (25,827 ) Pro forma combined loss per share $ (2.43 ) Pro forma combined net loss includes an adjustment to reduce historical interest expense by $3,937 for the nine months ended September 30, 2016 , due to the conversion of the convertible notes and the principal repayments of long-term debt of $11,000 . |
Concentrations
Concentrations | 9 Months Ended |
Sep. 30, 2017 | |
Risks and Uncertainties [Abstract] | |
Concentrations | Concentrations Consolidated financial instruments that potentially subject the Company to a concentration of credit risk principally consist of cash and cash equivalents and accounts receivable. At September 30, 2017 , the Company's cash and cash equivalents and restricted cash are held in deposit accounts at three different banks totaling $35,499 . The Company has not experienced any losses in such accounts, and management does not believe the Company is exposed to any significant credit risk. Management further believes that the concentration of credit risk in the Company's accounts receivable is substantially mitigated by the Company's evaluation process, relatively short collection terms, and the high level of creditworthiness of its customers. The Company continually evaluates the status of each of its customers, but generally requires no collateral. |
Inventory
Inventory | 9 Months Ended |
Sep. 30, 2017 | |
Inventory Disclosure [Abstract] | |
Inventory | Inventory Inventory consists of the following as of: September 30, 2017 December 31, 2016 (unaudited) Raw materials $ 4,006 $ 5,031 Work in progress 609 346 Finished goods 10,889 10,520 Less inventory reserve (2,731 ) (3,734 ) Total inventory, net $ 12,773 $ 12,163 The Company reviews the components of its inventory on a periodic basis for excess, obsolete or impaired inventory and records a reserve for items identified. During the three and nine months ended September 30, 2017 , the Company recorded an impairment charge of $30 and $199 , respectively. During the nine months ended September 30, 2017 , the Company disposed of $1,202 of expired product which was fully reserved. |
Accrued Expenses
Accrued Expenses | 9 Months Ended |
Sep. 30, 2017 | |
Payables and Accruals [Abstract] | |
Accrued Expenses | Accrued Expenses Accrued expenses consist of the following: September 30, 2017 December 31, 2016 (unaudited) Accrued employee compensation and expenses $ 3,862 $ 3,040 Accrued professional service fees 657 1,521 Accrued returns and rebates 572 366 Accrued insurance, property and sales taxes 475 256 Accrued construction in progress 360 — Other 1,866 1,447 Total accrued expenses $ 7,792 $ 6,630 |
Long-Term Debt
Long-Term Debt | 9 Months Ended |
Sep. 30, 2017 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | Long-Term Debt Long-term debt consists of the following as of: September 30, 2017 December 31, 2016 (unaudited) Senior secured credit facility $ 32,000 $ 39,000 Payment-in-kind interest 2,183 2,046 Long-term debt 34,183 41,046 Discount on long-term debt (596 ) (952 ) Deferred financing costs (410 ) (667 ) Long-term debt $ 33,177 $ 39,427 On March 7, 2017, the Company entered into a Fifth Amendment (the "Fifth Amendment") to the senior secured credit facility (the "Credit Agreement") with its lender, Athyrium Opportunities II Acquisition LP ("Athyrium"). The Fifth Amendment (i) reduced the minimum cash balance requirement to $0 from $8,000 , (ii) reduced the minimum quarterly revenue requirement to $13,000 from $18,000 , (iii) increased the maximum debt-to-revenue ratio to 0.65 from 0.60 and (iv) required Apollo to make a principal repayment of $7,000 . The minimum quarterly revenue requirement will increase by $1,000 quarterly over the remaining term of the facility, and the maximum debt-to-revenue ratio will decline gradually each quarter, from 0.65 to 0.25 , over the remaining term of the facility. Unamortized deferred financing costs of $113 and unamortized discount of $162 were written off in March 2017 in connection with the principal repayment of $7,000 . As of September 30, 2017 , the Company was in compliance with the financial covenants. |
Stock Based Compensation
Stock Based Compensation | 9 Months Ended |
Sep. 30, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock Based Compensation | Stock Based Compensation On June 9, 2017, the 2017 Equity Incentive Plan (the "2017 Plan") was approved by the Company's shareholders and replaced the Company's 2016 Equity Incentive Plan (the "2016 Plan"), which was the successor to the 2006 Stock Option Plan ("the 2006 Plan"), and the Lpath Amended and Restated 2005 Equity Incentive Plan (the "Lpath Plan") (collectively with the 2016 Plan and the 2006 Plan, the "Prior Plans"). Grants will no longer be made under the Prior Plans, but the awards that remain outstanding will continue to be governed by the terms of the applicable Prior Plan and the applicable award agreement. A summary of the stock option activity under the Company's 2017 Plan and Prior Plans as of September 30, 2017 is presented below. Options Weighted Average Exercise Price Weighted Average Remaining Contractual Term Aggregate Intrinsic Value (Number) (Price) (Years) ($000's) Options outstanding, December 31, 2016 1,016,647 $2.94 7.0 years $9,343 Options granted 663,006 $7.43 Options exercised (58,902 ) $2.07 Options forfeited (43,067 ) $5.74 Options outstanding, September 30, 2017 1,577,684 $4.85 6.2 years $1,649 Options vested and expected to vest 1,577,684 $4.85 6.2 years $1,649 Options exercisable 629,738 $3.13 6.2 years $1,107 Shares subject to awards granted under the 2017 Plan which expire, are repurchased, or are canceled or forfeited will again become available for issuance under the 2017 Plan. The shares available will not be reduced by awards settled in cash or by shares withheld to satisfy tax withholding obligations. Only the net number of shares issued upon the exercise of stock appreciation rights or options exercised by means of a net exercise will be deducted from the shares available under the 2017 Plan. The fair value of stock option grants has been estimated at the date of grant using the Black-Scholes option pricing model with the following weighted average assumptions: Nine Months Ended September 30, 2017 Nine Months Ended September 30, 2016 Risk free interest rate 1.9% 1.3% Expected dividend yield —% —% Estimated volatility 65.1% 56.7% Expected life 5.5 years 5.5 years Additional information regarding options is as follows: Nine Months Ended September 30, 2017 Nine Months Ended September 30, 2016 Weighted-average grant date fair value of options granted during the period $ 4.76 $ 0.99 Aggregate intrinsic value of options exercised during the period $ 249 $ 15 The total compensation cost recognized for stock-based awards was $211 and $538 for the three and nine months ended September 30, 2017 , respectively, and $102 and $309 for the three and nine months ended September 30, 2016 , respectively. The aggregate intrinsic value in the table above represents the total pre-tax value of the options shown, calculated as the difference between the Company’s closing stock price on September 30, 2017 and the exercise prices of the options shown, multiplied by the number of in-the money options. This is the aggregate amount that would have been received by the option holders if they had all exercised their options on September 30, 2017 and sold the shares thereby received at the closing price of the Company’s stock on that date. This amount changes based on the closing price of the Company’s stock. The Company has 400,351 options outstanding to purchase common shares that vest upon the Company's achievement of certain global revenue and EBITDA targets for calendar years 2016 and 2017. Achievement of the performance targets deemed probable are included in total stock compensation expense. Unrecognized compensation expense related to unvested options was approximately $2,071 at September 30, 2017 , with a remaining amortization period of less than four years . In addition, the Company granted 39,348 time-based restricted stock units with a weighted-average grant date fair value of $6.50 during the nine months ended September 30, 2017 . Intrinsic value of the restricted stock units was $310 and unrecognized compensation expense related to unvested restricted stock units was approximately $220 at September 30, 2017 , with a remaining amortization period of less than four years . |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The provision for income taxes for the three and nine months ended September 30, 2017 and 2016 includes both domestic and foreign income taxes at applicable statutory rates. The provision primarily consists of foreign income taxes. The Company has established a valuation allowance equal to the total net domestic deferred tax asset due to uncertainties regarding the realization of deferred tax assets based on the Company's lack of earnings history. As of September 30, 2017 , the Company has no unrecognized tax benefits or accrued interest or penalties associated with uncertain tax positions. |
Net Loss Per Share
Net Loss Per Share | 9 Months Ended |
Sep. 30, 2017 | |
Earnings Per Share [Abstract] | |
Net Loss Per Share | Net Loss Per Share The basic and diluted net loss per common share presented in the condensed consolidated statement of operations and comprehensive loss is calculated by dividing net loss attributable to common stockholders by the weighted-average number of common shares outstanding during the period, without consideration for common stock equivalents. Net loss attributable to common stock is computed by deducting current dividends on convertible preferred stock from net loss. Potentially dilutive shares, which include convertible preferred stock, warrants for the purchase of common and preferred stock, options outstanding under the Company's equity incentive plans, and restricted stock units are considered to be common stock equivalents and are only included in the calculation of diluted net loss per share when their effect is dilutive. Potentially dilutive securities not included in the calculation of diluted net loss per share attributable to common stockholders because to do so would be anti-dilutive are as follows (in common stock equivalent shares on a weighted-average basis): Three Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 Preferred stock — 7,220,987 — 7,220,987 Warrants for common and preferred stock 251,934 495,144 254,902 495,144 Common stock options 1,547,354 993,525 1,539,562 979,100 Restricted stock units 39,348 — 27,826 — 1,838,636 8,709,656 1,822,290 8,695,231 |
Liquidity and Capital Resources
Liquidity and Capital Resources | 9 Months Ended |
Sep. 30, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Liquidity and Capital Resources | Liquidity and Capital Resources The Company has experienced operating losses since inception and occasional debt covenant violations and has an accumulated deficit of $169,706 as of September 30, 2017 . To date, the Company has funded its operating losses and acquisitions through equity offerings and the issuance of debt instruments. The Company's ability to fund future operations will depend upon its level of future operating cash flow and its ability to access additional funding through either equity offerings, issuances of debt instruments or both. On July 25, 2017, the Company completed a public offering selling 6,542,453 shares at a price of $5.50 per share, including 853,363 shares sold to the underwriters upon the full exercise of their option to purchase additional shares, before the underwriting discount. The public offering generated net proceeds of approximately $33,584 , after deducting the underwriting discount and related offering expenses. In February 2015, the Company entered into the Credit Agreement which requires the Company to meet minimum revenue requirements and other covenants each quarter and provides a cure provision in the event this requirement is not met. If the Company is not able to meet its ongoing quarterly covenant requirements or utilize the remaining cure provision rights, the repayment of the Credit Facility could be accelerated at the lender's discretion. The Company believes its existing cash and cash equivalents and remaining cure provision rights will be sufficient to meet liquidity and capital requirements for at least the next twelve months. |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements The carrying amounts of the Company's financial instruments, which primarily include cash and cash equivalents, accounts receivable, accounts payable and accrued expenses, approximate their fair values due to their short maturities. The fair value of the Company's long-term debt is estimated by management to approximate $31,000 at September 30, 2017 . Management's estimates are based on comparisons of the characteristics of the Company's obligations, comparable ranges of interest rates on recently issued debt, and maturity. Such valuation inputs are considered a Level 3 measurement in the fair value valuation hierarchy. The accounting guidance defines fair value, establishes a consistent framework for measuring fair value and expands disclosure for each major asset and liability category measured at fair value on either a recurring or nonrecurring basis. Fair value is defined as an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or liability. As a basis for considering such assumptions, the accounting guidance establishes a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value as follows: Level 1: Observable inputs such as quoted prices in active markets; Level 2: Inputs, other than the quoted prices in active markets, that are observable either directly or indirectly; and Level 3: Unobservable inputs in which there is little or no market data, which require the reporting entity to develop its own assumptions. |
Segment and Geographic Informat
Segment and Geographic Information | 9 Months Ended |
Sep. 30, 2017 | |
Segment Reporting [Abstract] | |
Segment and Geographic Information | Segment and Geographic Information 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. Segment information is consistent with how management reviews the business, makes investing and resource allocation decisions and assesses operating performance. The Company’s products are principally sold in the U.S. No other countries are individually significant. Product sales by product group and geographic market, based on the location of the customer, for the periods shown were as follows: Three Months Ended September 30, 2017 Three Months Ended September 30, 2016 (unaudited) U.S. OUS Total Revenues % Total Revenues U.S. OUS Total Revenues % Total Revenues Endo-bariatric $ 3,281 $ 6,029 $ 9,310 56.3 % $ 3,266 $ 4,455 $ 7,721 48.9 % Surgical 4,422 2,605 7,027 42.5 % 5,295 2,656 7,951 50.4 % Other 200 7 207 1.3 % 111 3 114 0.7 % Total revenues $ 7,903 $ 8,641 $ 16,544 100.0 % $ 8,672 $ 7,114 $ 15,786 100.0 % % Total revenues 47.8 % 52.2 % 54.9 % 45.1 % Nine Months Ended September 30, 2017 Nine Months Ended September 30, 2016 (unaudited) U.S. OUS Total Revenues % Total Revenues U.S. OUS Total Revenues % Total Revenues Endo-bariatric $ 10,863 $ 15,300 $ 26,163 54.3 % $ 11,801 $ 12,547 $ 24,348 49.4 % Surgical 13,271 8,164 21,435 44.5 % 16,245 8,374 24,619 49.9 % Other 551 21 572 1.2 % 334 18 352 0.7 % Total revenues $ 24,685 $ 23,485 $ 48,170 100.0 % $ 28,380 $ 20,939 $ 49,319 100.0 % % Total revenues 51.2 % 48.8 % 57.5 % 42.5 % The following table represents property and equipment, net based on the physical geographic location of the asset: September 30, 2017 December 31, 2016 (unaudited) United States $ 3,034 $ 2,426 Costa Rica 3,633 4,195 Other 288 268 Total property and equipment, net $ 6,955 $ 6,889 |
Significant Accounting Polici21
Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2017 | |
Accounting Policies [Abstract] | |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In May 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2014-09, Revenue from Contracts with Customers ("ASU 2014-09"), which requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. ASU 2014-09 replaces most existing revenue recognition guidance in GAAP. In July 2015, the FASB approved a one-year deferral of this standard, with a revised effective date for annual and interim reporting in fiscal years beginning after December 15, 2017. In March 2016 and April 2016, the FASB issued ASU 2016-08, Principal versus Agent Considerations (Reporting Revenue Gross versus Net ) and ASU 2016-10, Identifying Performance Obligations and Licensing , respectively. ASU 2014-09 permits the use of either the retrospective or modified retrospective (cumulative effect) transition method. While we are finalizing our assessment on the impact of the new standard, our revenue is primarily generated from the sale of finished product to customers. Those sales predominantly contain a single delivery element and revenue is recognized at a single point in time when ownership, risks and rewards transfer. These are largely unimpacted by the new standard. Therefore, we do not expect this new guidance to have a material impact on the Company's consolidated financial statements. The Company expects to adopt this new standard using the modified restrospective method and continues to review this guidance to complete its evaluation of the impact on its consolidated financial statements and disclosures. In addition, the Company continues to monitor additional changes, modifications, clarifications or interpretations being undertaken by the FASB, which may impact the Company’s current conclusions. The Company has adopted the provisions of ASU 2015-11, Simplifying the Measurement of Inventory ("ASU 2015-11"), which simplifies the subsequent measurement of inventory by requiring inventory to be measured at the lower of cost and net realizable value. Net realizable value is the estimated selling price in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation. The adoption of ASU 2015-11 as of January 1, 2017 resulted in no material impact on the Company's consolidated financial statements. The Company has adopted the provisions of ASU 2015-17, Balance Sheet Classification of Deferred Taxes ("ASU 2015-17") which requires that all deferred tax assets and liabilities, along with any related valuation allowance, be classified as noncurrent on the balance sheet. The adoption of ASU 2015-17 as of January 1, 2017 resulted in no material impact on the Company's consolidated financial statements. In February 2016, the FASB issued ASU 2016-02, Leases ("ASU 2016-02") which requires a lessee to recognize assets and liabilities for leases with a maximum possible term of more than 12 months. A lessee would recognize a liability to make lease payments (the lease liability) and a right-of-use asset representing its right to use the leased asset (the underlying asset) for the lease term which will require companies to recognize most leases on the balance sheet, thereby increasing reported assets and liabilities. Extensive quantitative and qualitative disclosures, including significant judgments made by management, will be required. ASU 2016-02 requires adoption using a modified retrospective transition with application of the guidance at the beginning of the earliest comparative period presented. ASU 2016-02 will be effective for the Company on January 1, 2019. Early adoption is permitted. The Company is evaluating the effect that ASU 2016-02 will have on its consolidated financial statements. The Company has adopted the provisions of ASU 2016-09, Improvements to Employee Share-Based Payment Accounting ("ASU 2016-09"), which contains guidance on accounting for certain aspects of share-based payments to employees. ASU 2016-09 requires excess tax benefits and tax deficiencies to be recorded in the income statement when the awards vest or are settled. Furthermore, cash flows related to excess tax benefits will no longer be separately classified as a financing activity apart from other income tax cash flows. ASU 2016-09 also allows companies to repurchase more of an employee's shares for tax withholding purposes without triggering liability accounting, clarifying that all cash payments made on an employee's behalf for withheld shares should be presented as a financing activity in the consolidated statements of cash flows and provides an accounting policy election to account for forfeitures as they occur. The adoption of ASU 2016-09 as of January 1, 2017 resulted in no material impact on the Company's consolidated financial statements. In January 2017, the FASB issued ASU 2017-04, Intangibles - Goodwill and Other: Simplifying the Test for Goodwill Impairment (“ASU 2017-04”) to simplify the accounting for goodwill impairment. The guidance removes Step 2 of the goodwill impairment test, which requires a hypothetical purchase price allocation. A goodwill impairment will now be the amount by which a reporting unit’s carrying value exceeds its fair value, not to exceed the carrying amount of goodwill. Entities will continue to have the option to perform a qualitative assessment to determine if a quantitative impairment test is necessary. ASU 2017-04 will be effective for the Company for annual and interim reporting in fiscal years beginning after December 15, 2019. Early adoption is permitted. The effect of ASU 2017-04 on the Company's consolidated financial statements will be dependent on any future impairments. |
Net Loss Per Share | The basic and diluted net loss per common share presented in the condensed consolidated statement of operations and comprehensive loss is calculated by dividing net loss attributable to common stockholders by the weighted-average number of common shares outstanding during the period, without consideration for common stock equivalents. Net loss attributable to common stock is computed by deducting current dividends on convertible preferred stock from net loss. Potentially dilutive shares, which include convertible preferred stock, warrants for the purchase of common and preferred stock, options outstanding under the Company's equity incentive plans, and restricted stock units are considered to be common stock equivalents and are only included in the calculation of diluted net loss per share when their effect is dilutive. |
Acquisitions (Tables)
Acquisitions (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Business Combinations [Abstract] | |
Schedule of Pro Forma Information | Pro forma condensed consolidated financial information for the nine months ended September 30, 2016 (unaudited): Pro forma combined revenues $ 49,362 Pro forma combined net loss $ (25,827 ) Pro forma combined loss per share $ (2.43 ) |
Inventory (Tables)
Inventory (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory | Inventory consists of the following as of: September 30, 2017 December 31, 2016 (unaudited) Raw materials $ 4,006 $ 5,031 Work in progress 609 346 Finished goods 10,889 10,520 Less inventory reserve (2,731 ) (3,734 ) Total inventory, net $ 12,773 $ 12,163 |
Accrued Expenses (Tables)
Accrued Expenses (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Payables and Accruals [Abstract] | |
Schedule of Accrued Expenses | Accrued expenses consist of the following: September 30, 2017 December 31, 2016 (unaudited) Accrued employee compensation and expenses $ 3,862 $ 3,040 Accrued professional service fees 657 1,521 Accrued returns and rebates 572 366 Accrued insurance, property and sales taxes 475 256 Accrued construction in progress 360 — Other 1,866 1,447 Total accrued expenses $ 7,792 $ 6,630 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt | Long-term debt consists of the following as of: September 30, 2017 December 31, 2016 (unaudited) Senior secured credit facility $ 32,000 $ 39,000 Payment-in-kind interest 2,183 2,046 Long-term debt 34,183 41,046 Discount on long-term debt (596 ) (952 ) Deferred financing costs (410 ) (667 ) Long-term debt $ 33,177 $ 39,427 |
Stock Based Compensation (Table
Stock Based Compensation (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of Stock Option Activity | A summary of the stock option activity under the Company's 2017 Plan and Prior Plans as of September 30, 2017 is presented below. Options Weighted Average Exercise Price Weighted Average Remaining Contractual Term Aggregate Intrinsic Value (Number) (Price) (Years) ($000's) Options outstanding, December 31, 2016 1,016,647 $2.94 7.0 years $9,343 Options granted 663,006 $7.43 Options exercised (58,902 ) $2.07 Options forfeited (43,067 ) $5.74 Options outstanding, September 30, 2017 1,577,684 $4.85 6.2 years $1,649 Options vested and expected to vest 1,577,684 $4.85 6.2 years $1,649 Options exercisable 629,738 $3.13 6.2 years $1,107 |
Schedule of Fair Value of Stock Options | The fair value of stock option grants has been estimated at the date of grant using the Black-Scholes option pricing model with the following weighted average assumptions: Nine Months Ended September 30, 2017 Nine Months Ended September 30, 2016 Risk free interest rate 1.9% 1.3% Expected dividend yield —% —% Estimated volatility 65.1% 56.7% Expected life 5.5 years 5.5 years |
Schedule of Other Stock Option Information | Additional information regarding options is as follows: Nine Months Ended September 30, 2017 Nine Months Ended September 30, 2016 Weighted-average grant date fair value of options granted during the period $ 4.76 $ 0.99 Aggregate intrinsic value of options exercised during the period $ 249 $ 15 |
Net Loss Per Share (Tables)
Net Loss Per Share (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Earnings Per Share [Abstract] | |
Schedule of Antidilutive Securities Excluded from Computation of Diluted Loss Per Share | Potentially dilutive securities not included in the calculation of diluted net loss per share attributable to common stockholders because to do so would be anti-dilutive are as follows (in common stock equivalent shares on a weighted-average basis): Three Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 Preferred stock — 7,220,987 — 7,220,987 Warrants for common and preferred stock 251,934 495,144 254,902 495,144 Common stock options 1,547,354 993,525 1,539,562 979,100 Restricted stock units 39,348 — 27,826 — 1,838,636 8,709,656 1,822,290 8,695,231 |
Segment and Geographic Inform28
Segment and Geographic Information (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Segment Reporting [Abstract] | |
Schedule of Product Sales by Product Group and Geographic Market | Product sales by product group and geographic market, based on the location of the customer, for the periods shown were as follows: Three Months Ended September 30, 2017 Three Months Ended September 30, 2016 (unaudited) U.S. OUS Total Revenues % Total Revenues U.S. OUS Total Revenues % Total Revenues Endo-bariatric $ 3,281 $ 6,029 $ 9,310 56.3 % $ 3,266 $ 4,455 $ 7,721 48.9 % Surgical 4,422 2,605 7,027 42.5 % 5,295 2,656 7,951 50.4 % Other 200 7 207 1.3 % 111 3 114 0.7 % Total revenues $ 7,903 $ 8,641 $ 16,544 100.0 % $ 8,672 $ 7,114 $ 15,786 100.0 % % Total revenues 47.8 % 52.2 % 54.9 % 45.1 % Nine Months Ended September 30, 2017 Nine Months Ended September 30, 2016 (unaudited) U.S. OUS Total Revenues % Total Revenues U.S. OUS Total Revenues % Total Revenues Endo-bariatric $ 10,863 $ 15,300 $ 26,163 54.3 % $ 11,801 $ 12,547 $ 24,348 49.4 % Surgical 13,271 8,164 21,435 44.5 % 16,245 8,374 24,619 49.9 % Other 551 21 572 1.2 % 334 18 352 0.7 % Total revenues $ 24,685 $ 23,485 $ 48,170 100.0 % $ 28,380 $ 20,939 $ 49,319 100.0 % % Total revenues 51.2 % 48.8 % 57.5 % 42.5 % |
Schedule of Long-Lived Assets by Geographic Area | The following table represents property and equipment, net based on the physical geographic location of the asset: September 30, 2017 December 31, 2016 (unaudited) United States $ 3,034 $ 2,426 Costa Rica 3,633 4,195 Other 288 268 Total property and equipment, net $ 6,955 $ 6,889 |
Acquisitions (Details)
Acquisitions (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Business Acquisition [Line Items] | ||||
Interest expense, net | $ (1,013,000) | $ (1,533,000) | $ (3,529,000) | $ (6,881,000) |
Lpath [Member] | ||||
Business Acquisition [Line Items] | ||||
Pro forma combined revenues | 49,362 | |||
Pro forma combined net loss | $ (25,827) | |||
Pro forma combined loss per share (USD per share) | $ (2.43) | |||
Conversion of convertible notes and repayments of long-term debt | $ 11,000,000 | |||
Lpath [Member] | Restatement Adjustment [Member] | Acquisition-related Costs [Member] | ||||
Business Acquisition [Line Items] | ||||
Interest expense, net | $ 3,937 |
Concentrations (Details)
Concentrations (Details) $ in Thousands | Sep. 30, 2017USD ($)bank |
Risks and Uncertainties [Abstract] | |
Number of banks | bank | 3 |
Cash and cash equivalents and restricted cash | $ | $ 35,499 |
Inventory (Details)
Inventory (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2017 | Sep. 30, 2016 | Dec. 31, 2016 | |
Inventory Disclosure [Abstract] | ||||
Raw materials | $ 4,006 | $ 4,006 | $ 5,031 | |
Work in progress | 609 | 609 | 346 | |
Finished goods | 10,889 | 10,889 | 10,520 | |
Less inventory reserve | (2,731) | (2,731) | (3,734) | |
Total inventory, net | 12,773 | 12,773 | $ 12,163 | |
Change in inventory reserve | $ 30 | 199 | $ 3,297 | |
Disposal of expired product | $ 1,202 |
Accrued Expenses (Details)
Accrued Expenses (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Payables and Accruals [Abstract] | ||
Accrued employee compensation and expenses | $ 3,862 | $ 3,040 |
Accrued professional service fees | 657 | 1,521 |
Accrued returns and rebates | 572 | 366 |
Accrued insurance, property and sales taxes | 475 | 256 |
Accrued construction in progress | 360 | 0 |
Other | 1,866 | 1,447 |
Total accrued expenses | $ 7,792 | $ 6,630 |
Long-Term Debt (Schedule of Lon
Long-Term Debt (Schedule of Long-term Debt) (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Debt Instrument [Line Items] | ||
Long-term debt | $ 34,183 | $ 41,046 |
Discount on long-term debt | (596) | (952) |
Deferred financing costs | (410) | (667) |
Long-term debt | 33,177 | 39,427 |
Payment in Kind Interest [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt | 2,183 | 2,046 |
Line of Credit [Member] | Secured Debt [Member] | Credit Facility [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt | $ 32,000 | $ 39,000 |
Long-Term Debt (Narrative) (Det
Long-Term Debt (Narrative) (Details) - Secured Debt [Member] - Line of Credit [Member] | Mar. 07, 2017USD ($) | Mar. 31, 2017USD ($) | Dec. 31, 2016USD ($) |
Credit Facility Fifth Amendment [Member] | |||
Debt Instrument [Line Items] | |||
Covenant, minimum cash on hand | $ 0 | $ 8,000,000 | |
Quarterly revenue requirement | $ 13,000,000 | $ 18,000,000 | |
Minimum debt to revenue ratio | 0.65 | 0.60 | |
Repayments of debt | $ 7,000,000 | ||
Increase in quarterly revenue | $ 1,000,000 | ||
Credit Facility Fifth Amendment [Member] | Gradual Decline Each Quarter [Member] | |||
Debt Instrument [Line Items] | |||
Minimum debt to revenue ratio | 0.25 | 0.65 | |
Credit Facility [Member] | |||
Debt Instrument [Line Items] | |||
Unamortized deferred financing costs | 113,000 | ||
Discount on long-term debt | $ 162,000 |
Stock Based Compensation (Stock
Stock Based Compensation (Stock Option Activity) (Details) - Stock Option [Member] - USD ($) $ / shares in Units, $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2017 | Dec. 31, 2016 | |
Options | ||
Options outstanding, beginning balance (in shares) | 1,016,647 | |
Options granted (in shares) | 663,006 | |
Options exercised (in shares) | (58,902) | |
Options forfeited (in shares) | (43,067) | |
Options outstanding, ending balance (in shares) | 1,577,684 | 1,016,647 |
Options vested and expected to vest (in shares) | 1,577,684 | |
Options exercisable (in shares) | 629,738 | |
Weighted Average Exercise Price | ||
Weighted average exercise price, beginning balance (in USD per share) | $ 2.94 | |
Options granted (in USD per share) | 7.43 | |
Options exercised (in USD per share) | 2.07 | |
Options forfeited (in USD per share) | 5.74 | |
Weighted average exercise price, ending balance (in USD per share) | 4.85 | $ 2.94 |
Options vested and expected to vest (in USD per share) | 4.85 | |
Options exercisable (in USD per share) | $ 3.13 | |
Weighted Average Remaining Contractual Term | ||
Weighted average remaining contractual term | 6 years 2 months | 7 years |
Options vested and expected to vest | 6 years 2 months | |
Options exercisable | 6 years 2 months | |
Aggregate Intrinsic Value | ||
Aggregate intrinsic value | $ 1,649 | $ 9,343 |
Options vested and expected to vest | 1,649 | |
Options exercisable | $ 1,107 |
Stock Based Compensation (Fair
Stock Based Compensation (Fair Value of Stock Options) (Details) - Stock Option [Member] | 9 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Risk free interest rate | 1.90% | 1.30% |
Expected dividend yield | 0.00% | 0.00% |
Estimated volatility | 65.10% | 56.70% |
Expected life | 5 years 6 months | 5 years 6 months |
Stock Based Compensation (Addit
Stock Based Compensation (Additional Information) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Dec. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock compensation cost | $ 538 | $ 309 | |||
Unrecognized compensation expense related to unvested options | $ 2,071 | $ 2,071 | |||
Remaining amortization period, less then | 4 years | ||||
Stock Option [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Weighted-average grant date fair value of options granted during the period (USD per share) | $ 4.76 | $ 0.99 | |||
Aggregate intrinsic value of options exercised during the period | $ 249 | $ 15 | |||
Stock compensation cost | $ 211 | $ 102 | $ 538 | $ 309 | |
Options granted in period (in shares) | 1,577,684 | 1,577,684 | 1,016,647 | ||
Performance Shares [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Options granted in period (in shares) | 400,351 | 400,351 | |||
Restricted stock units [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Remaining amortization period, less then | 4 years | ||||
Awards granted (shares) | 39,348 | ||||
Weighted-average grant date fair value (USD per share) | $ 6.50 | $ 6.50 | |||
Intrinsic value | $ 310 | $ 310 | |||
Unrecognized compensation expense related to unvested restricted stock units | $ 220 | $ 220 |
Income Taxes (Details)
Income Taxes (Details) | Sep. 30, 2017USD ($) |
Income Tax Disclosure [Abstract] | |
Unrecognized tax benefits | $ 0 |
Accrued interest | 0 |
Tax penalties | $ 0 |
Net Loss Per Share (Details)
Net Loss Per Share (Details) - shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded from computation of diluted loss per share | 1,838,636 | 8,709,656 | 1,822,290 | 8,695,231 |
Preferred stock [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded from computation of diluted loss per share | 0 | 7,220,987 | 0 | 7,220,987 |
Warrants for common and preferred stock [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded from computation of diluted loss per share | 251,934 | 495,144 | 254,902 | 495,144 |
Common stock options [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded from computation of diluted loss per share | 1,547,354 | 993,525 | 1,539,562 | 979,100 |
Restricted stock units [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded from computation of diluted loss per share | 39,348 | 0 | 27,826 | 0 |
Liquidity and Capital Resourc40
Liquidity and Capital Resources (Details) - USD ($) $ / shares in Units, $ in Thousands | Jul. 25, 2017 | Sep. 30, 2017 | Dec. 31, 2016 |
Subsidiary, Sale of Stock [Line Items] | |||
Accumulated deficit | $ 169,706 | $ 149,729 | |
Proceeds from issuance of common stock, net of issuance costs | $ 33,584 | ||
Public Stock Offering [Member] | |||
Subsidiary, Sale of Stock [Line Items] | |||
Sale of stock, number of shares issued in transaction | 6,542,453 | ||
Share price (USD per share) | $ 5.50 | ||
Underwriters [Member] | |||
Subsidiary, Sale of Stock [Line Items] | |||
Sale of stock, number of shares issued in transaction | 853,363 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) $ in Thousands | Sep. 30, 2017USD ($) |
Fair Value Disclosures [Abstract] | |
Fair value of long-term debt | $ 31,000 |
Segment and Geographic Inform42
Segment and Geographic Information (Segment Information) (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017USD ($) | Sep. 30, 2016USD ($) | Sep. 30, 2017USD ($)segment | Sep. 30, 2016USD ($) | |
Segment Reporting [Abstract] | ||||
Number of reportable segments | segment | 1 | |||
Revenue, Major Customer [Line Items] | ||||
Revenues | $ 16,544 | $ 15,786 | $ 48,170 | $ 49,319 |
Segment Revenue [Member] | Product Risk [Member] | ||||
Revenue, Major Customer [Line Items] | ||||
Percentage of total revenue | 100.00% | 100.00% | 100.00% | 100.00% |
United States [Member] | ||||
Revenue, Major Customer [Line Items] | ||||
Revenues | $ 7,903 | $ 8,672 | $ 24,685 | $ 28,380 |
United States [Member] | Segment Revenue [Member] | Product Risk [Member] | ||||
Revenue, Major Customer [Line Items] | ||||
Percentage of total revenue | 47.80% | 54.90% | 51.20% | 57.50% |
Other countries [Member] | ||||
Revenue, Major Customer [Line Items] | ||||
Revenues | $ 8,641 | $ 7,114 | $ 23,485 | $ 20,939 |
Other countries [Member] | Segment Revenue [Member] | Product Risk [Member] | ||||
Revenue, Major Customer [Line Items] | ||||
Percentage of total revenue | 52.20% | 45.10% | 48.80% | 42.50% |
Endo-Bariatric [Member] | ||||
Revenue, Major Customer [Line Items] | ||||
Revenues | $ 9,310 | $ 7,721 | $ 26,163 | $ 24,348 |
Endo-Bariatric [Member] | Segment Revenue [Member] | Product Risk [Member] | ||||
Revenue, Major Customer [Line Items] | ||||
Percentage of total revenue | 56.30% | 48.90% | 54.30% | 49.40% |
Endo-Bariatric [Member] | United States [Member] | ||||
Revenue, Major Customer [Line Items] | ||||
Revenues | $ 3,281 | $ 3,266 | $ 10,863 | $ 11,801 |
Endo-Bariatric [Member] | Other countries [Member] | ||||
Revenue, Major Customer [Line Items] | ||||
Revenues | 6,029 | 4,455 | 15,300 | 12,547 |
Surgical [Member] | ||||
Revenue, Major Customer [Line Items] | ||||
Revenues | $ 7,027 | $ 7,951 | $ 21,435 | $ 24,619 |
Surgical [Member] | Segment Revenue [Member] | Product Risk [Member] | ||||
Revenue, Major Customer [Line Items] | ||||
Percentage of total revenue | 42.50% | 50.40% | 44.50% | 49.90% |
Surgical [Member] | United States [Member] | ||||
Revenue, Major Customer [Line Items] | ||||
Revenues | $ 4,422 | $ 5,295 | $ 13,271 | $ 16,245 |
Surgical [Member] | Other countries [Member] | ||||
Revenue, Major Customer [Line Items] | ||||
Revenues | 2,605 | 2,656 | 8,164 | 8,374 |
Other [Member] | ||||
Revenue, Major Customer [Line Items] | ||||
Revenues | $ 207 | $ 114 | $ 572 | $ 352 |
Other [Member] | Segment Revenue [Member] | Product Risk [Member] | ||||
Revenue, Major Customer [Line Items] | ||||
Percentage of total revenue | 1.30% | 0.70% | 1.20% | 0.70% |
Other [Member] | United States [Member] | ||||
Revenue, Major Customer [Line Items] | ||||
Revenues | $ 200 | $ 111 | $ 551 | $ 334 |
Other [Member] | Other countries [Member] | ||||
Revenue, Major Customer [Line Items] | ||||
Revenues | $ 7 | $ 3 | $ 21 | $ 18 |
Segment and Geographic Inform43
Segment and Geographic Information (Long-Lived Assets by Geographic Area) (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total property and equipment, net | $ 6,955 | $ 6,889 |
United States [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total property and equipment, net | 3,034 | 2,426 |
Costa Rica [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total property and equipment, net | 3,633 | 4,195 |
Other countries [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total property and equipment, net | $ 288 | $ 268 |