Document and Entity Information
Document and Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Feb. 27, 2018 | Jun. 30, 2017 | |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2017 | ||
Document Fiscal Year Focus | 2,017 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | OBLN | ||
Entity Registrant Name | OBALON THERAPEUTICS INC | ||
Entity Central Index Key | 1,427,570 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 17,612,490 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $ 84.7 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Current assets: | ||
Cash and cash equivalents | $ 21,108 | $ 72,975 |
Short-term investments | 23,292 | 2,500 |
Accounts receivable, net | 4,223 | 0 |
Accounts receivable, related party | 0 | 515 |
Inventory | 1,418 | 827 |
Other current assets | 1,714 | 1,244 |
Total current assets | 51,755 | 78,061 |
Property and equipment, net | 1,346 | 717 |
Total assets | 53,101 | 78,778 |
Current liabilities: | ||
Accounts payable | 1,276 | 595 |
Accrued compensation | 4,494 | 2,497 |
Deferred revenue | 510 | 121 |
Other current liabilities | 1,773 | 1,379 |
Current portion of long-term loan | 1,958 | 0 |
Total current liabilities | 10,011 | 4,592 |
Deferred rent | 13 | 0 |
Long-term loan, excluding current potion | 7,964 | 9,881 |
Total long-term liabilities | 7,977 | 9,881 |
Total liabilities | 17,988 | 14,473 |
Commitments and contingencies (See Note 10) | ||
Stockholders’ equity: | ||
Common stock, $0.001 par value; 300,000,000 shares authorized at December 31, 2017 and December 31, 2016; 17,500,604 and 16,773,205 shares issued and outstanding at December 31, 2017 and December 31, 2016, respectively | 18 | 17 |
Additional paid-in capital | 146,474 | 140,898 |
Accumulated other comprehensive loss | (5) | (1) |
Accumulated deficit | (111,374) | (76,609) |
Total stockholders’ equity | 35,113 | 64,305 |
Total liabilities and stockholders’ equity | $ 53,101 | $ 78,778 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Dec. 31, 2017 | Dec. 31, 2016 |
Statement of Financial Position [Abstract] | ||
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized (in shares) | 300,000,000 | 300,000,000 |
Common stock, shares issued | 17,500,604 | 16,773,205 |
Common stock, shares outstanding (in shares) | 17,500,604 | 16,773,205 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Revenue: | |||
Revenue | $ 9,914 | $ 0 | $ 216 |
Revenue, related party | 0 | 3,393 | 3,823 |
Total revenue | 9,914 | 3,393 | 4,039 |
Cost of revenue | 4,829 | 2,809 | 2,503 |
Gross profit | 5,085 | 584 | 1,536 |
Operating expenses: | |||
Research and development | 10,647 | 9,872 | 12,978 |
Selling, general and administrative | 28,829 | 10,217 | 3,491 |
Total operating expenses | 39,476 | 20,089 | 16,469 |
Loss from operations | (34,391) | (19,505) | (14,933) |
Interest expense, net | (135) | (477) | (549) |
Loss from change in fair value of warrant liability | 0 | (466) | (34) |
Other expense | (239) | (19) | (41) |
Net loss | (34,765) | (20,467) | (15,557) |
Other comprehensive (loss) income | (4) | (1) | 5 |
Net loss and comprehensive loss | $ (34,769) | $ (20,468) | $ (15,552) |
Net loss per share, basic and diluted (in dollars per share) | $ (2.08) | $ (4.85) | $ (27.14) |
Weighted-average common shares outstanding, basic and diluted (in shares) | 16,717,106 | 4,221,893 | 573,181 |
CONSOLIDATED STATEMENTS OF CONV
CONSOLIDATED STATEMENTS OF CONVERTIBLE PREFERRED STOCK AND STOCKHOLDERS' EQUITY (DEFICIT) - USD ($) $ in Thousands | Total | Convertible Preferred Stock | Common stock | Additional paid-in capital | Accumulated other comprehensive (loss) income | Accumulated deficit | IPOCommon stock | ||
Beginning Balance (in shares) at Dec. 31, 2014 | [1] | $ 54,826 | |||||||
Increase (Decrease) in Temporary Equity [Roll Forward] | |||||||||
Issuance of warrants in connection with preferred stock financing | [1] | (127) | |||||||
Ending Balance (in shares) at Dec. 31, 2015 | [1] | $ 54,699 | |||||||
Beginning Balance at Dec. 31, 2014 | $ (39,856) | $ 1 | $ 733 | $ (5) | $ (40,585) | ||||
Beginning Balance (in shares) at Dec. 31, 2014 | 8,180,214 | [1] | 533,484 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Issuance of common stock for cash upon exercise of stock options (in shares) | 41,642 | ||||||||
Issuance of common stock for cash upon exercise of stock options | 62 | 62 | |||||||
Stock-based compensation | 207 | 207 | |||||||
Unrealized loss on short term investments | 5 | 5 | |||||||
Net loss | (15,557) | (15,557) | |||||||
Ending Balance at Dec. 31, 2015 | (55,139) | $ 1 | 1,002 | 0 | (56,142) | ||||
Ending Balance (in shares) at Dec. 31, 2015 | 8,180,214 | [1] | 575,126 | ||||||
Increase (Decrease) in Temporary Equity [Roll Forward] | |||||||||
Issuance of stock (in shares) | 1,916,425 | [1] | 5,000,000 | ||||||
Value of new shares issued | [1] | $ 15,799 | |||||||
Conversion of preferred stock to common stock in connection with initial public offering (in shares) | [1] | (10,096,639) | 10,360,419 | ||||||
Conversion of preferred stock to common stock in connection with initial public offering (1) | [1] | 70,498 | $ (70,498) | $ 10 | 70,488 | ||||
Ending Balance (in shares) at Dec. 31, 2016 | [1] | $ 0 | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Issuance of common stock for cash upon exercise of stock options (in shares) | 808,885 | ||||||||
Issuance of common stock for cash upon exercise of stock options | 820 | $ 1 | 819 | ||||||
Stock-based compensation | 563 | 563 | |||||||
Conversion of preferred stock to common stock in connection with initial public offering (in shares) | [1] | (10,096,639) | 10,360,419 | ||||||
Conversion of preferred stock to common stock in connection with initial public offering (1) | [1] | 70,498 | $ (70,498) | $ 10 | 70,488 | ||||
Issuance of stock (in shares) | 1,916,425 | [1] | 5,000,000 | ||||||
Issuance of common stock in initial public offering, net of underwriting discount, commissions and issuance costs | 67,233 | $ 5 | 67,228 | ||||||
Net exercise of common stock warrants (in shares) | 28,775 | ||||||||
Net exercise of common stock warrants | 591 | 591 | |||||||
Reclassification of warrant liability as equity | 207 | 207 | |||||||
Unrealized loss on short term investments | (1) | (1) | |||||||
Net loss | (20,467) | (20,467) | |||||||
Ending Balance at Dec. 31, 2016 | $ 64,305 | $ 17 | 140,898 | (1) | (76,609) | ||||
Ending Balance (in shares) at Dec. 31, 2016 | 16,773,205 | 0 | [1] | 16,773,205 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Shares issued (in shares) | 263,780 | ||||||||
Number of convertible preferred stock converted into one share of common stock (in shares) | 1 | ||||||||
Issuance of common stock for cash upon exercise of stock options (in shares) | 84,433 | 84,433 | |||||||
Issuance of common stock for cash upon exercise of stock options | $ 184 | 184 | |||||||
Stock-based compensation | 3,241 | 3,241 | |||||||
Vesting of early exercised stock options | 116 | 116 | |||||||
Issuance of common stock under ESPP (in shares) | 53,758 | ||||||||
Issuance of common stock under ESPP | 429 | 429 | |||||||
Fair value of stock issued for legal settlements (in shares) | 175,000 | ||||||||
Issuance of common stock pursuant to legal settlements | 1,606 | 1,606 | |||||||
Issuance of restricted stock awards (in shares) | 414,208 | ||||||||
Issuance of restricted stock awards | 1 | $ 1 | |||||||
Unrealized loss on short term investments | (4) | (4) | |||||||
Net loss | (34,765) | (34,765) | |||||||
Ending Balance at Dec. 31, 2017 | $ 35,113 | $ 18 | $ 146,474 | $ (5) | $ (111,374) | ||||
Ending Balance (in shares) at Dec. 31, 2017 | 17,500,604 | 17,500,604 | |||||||
[1] | The Company completed multiple series of preferred stock financings prior to its initial public offering, which are consolidated in the table above. Upon the initial public offering, certain preferred stock converted to common stock at a higher ratio than 1:1 resulting in the issuance of an additional 263,780 shares of common stock in connection with the Company's initial public offering. |
CONSOLIDATED STATEMENTS OF CON6
CONSOLIDATED STATEMENTS OF CONVERTIBLE PREFERRED STOCK AND STOCKHOLDERS' EQUITY (DEFICIT) (Parenthetical) - Series E Convertible Preferred Stock $ in Thousands | 12 Months Ended |
Dec. 31, 2016USD ($)$ / shares | |
Sale of stock (in dollars per share) | $ / shares | $ 8.2932 |
Issuance costs | $ | $ 94 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Operating activities: | |||
Net loss | $ (34,765) | $ (20,467) | $ (15,557) |
Adjustments to reconcile net loss to net cash used in operating activities: | |||
Depreciation and amortization | 330 | 192 | 167 |
Stock-based compensation | 3,241 | 563 | 207 |
Fair value of stock issued for legal settlements | 1,606 | 0 | 0 |
Loss on disposal of fixed assets | 0 | 13 | 19 |
Change in fair value of warrant liability | 0 | 466 | 34 |
Amortization of investment premium, net | 18 | 125 | 260 |
Amortization of debt discount | 42 | 70 | 79 |
Change in operating assets and liabilities: | |||
Accounts receivable, net | (4,223) | 0 | 96 |
Accounts receivable from related party | 515 | 121 | (481) |
Inventory | (591) | (464) | 77 |
Other current assets | (470) | (985) | 27 |
Accounts payable | 624 | 46 | 370 |
Accrued compensation | 1,997 | 1,247 | 1,018 |
Deferred revenue | 389 | 121 | 0 |
Other current and long-term liabilities | 663 | (416) | 1,009 |
Customer deposit from related party | 0 | 0 | 1,283 |
Net cash used in operating activities | (30,624) | (19,368) | (11,392) |
Investing activities: | |||
Purchases of short-term investments | (94,613) | (18,897) | (18,590) |
Maturities of short-term investments | 73,800 | 25,450 | 21,500 |
Purchase of property and equipment | (1,043) | (352) | (139) |
Proceeds from disposal of property and equipment | 0 | 0 | 6 |
Net cash (used in) provided by investing activities | (21,856) | 6,201 | 2,777 |
Financing activities: | |||
Issuance of preferred stock for cash, net of offering costs | 0 | 14,517 | 0 |
Proceeds from initial public offering, net of issuance costs | 0 | 67,233 | 0 |
Proceeds from long-term loan, net of issuance costs | 0 | 0 | 5,000 |
Fees paid in connection with loan amendment | 0 | (30) | 0 |
Proceeds from common stock issued under employee stock purchase plan | 429 | 0 | 0 |
Proceeds from sale of common stock upon exercise of stock options | 184 | 1,066 | 62 |
Net cash provided by financing activities | 613 | 82,786 | 5,062 |
Effect of exchange rate changes on cash and cash equivalents | 0 | 0 | 7 |
Net (decrease) increase in cash and cash equivalents | (51,867) | 69,619 | (3,546) |
Cash and cash equivalents at beginning of period | 72,975 | 3,356 | 6,902 |
Cash and cash equivalents at end of period | 21,108 | 72,975 | 3,356 |
Supplemental cash flow information: | |||
Interest paid | 562 | 527 | 475 |
Income taxes paid | 2 | 0 | 2 |
Conversion of convertible preferred stock to common stock | 0 | 70,498 | 0 |
Net exercises of warrants | 0 | 591 | 0 |
Conversion of customer deposit from related party to preferred stock | 0 | 1,283 | 0 |
Property and equipment in accounts payable | $ 83 | $ 140 | $ 0 |
Organization and Basis of Prese
Organization and Basis of Presentation | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Organization and Basis of Presentation | Organization and Basis of Presentation Obalon Therapeutics, Inc., or the Company, was incorporated in the state of Delaware on January 2, 2008. The Company is a vertically-integrated medical device company focused on developing and commercializing innovative medical devices to treat obese and overweight people. Using its patented technology, the Company has developed the Obalon balloon system, the first and only FDA approved swallowable, gas-filled intragastric balloon designed to provide progressive and sustained weight loss in obese patients. The consolidated financial statements include the accounts of Obalon Therapeutics, Inc., and its wholly owned subsidiaries, Obalon Italy SRL and Obalon Therapeutics, LLC. Obalon Therapeutics, LLC is a shell company, which owns 99% of Obalon Mexico DE RL CV. Obalon Italy SRL was dissolved during 2015 and Obalon Mexico DE RL CV was dissolved during 2016. All intercompany balances and transactions have been eliminated in consolidation. The accompanying consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles, or GAAP. The Company’s principal operations are located in Carlsbad, California and it operates in one business segment. As of December 31, 2017 , the Company has devoted a substantial portion of its efforts to product development, market development, raising capital, and building infrastructure. The Company has incurred operating losses and has experienced negative cash flows from operations since its inception. The Company recognized revenue, including revenue from related parties, of $9.9 million , $3.4 million and $4.0 million for the years ended December 31, 2017 , 2016 and 2015 , respectively. However, the Company has not yet established an ongoing source of revenue sufficient to cover its operating costs and has funded its activities to date almost exclusively from debt and equity financings. On September 8, 2016, the Company received premarket approval from the U.S. Food and Drug Administration, or FDA, to market the Obalon balloon system for temporary use to facilitate weight loss in obese adults with a body mass index, or BMI of 30 to 40 who have failed to lose weight through diet and exercise. The Obalon balloon system is intended to be used as an adjunct to a moderate intensity diet and behavior modification program. For periods presented prior to 2017, all sales are to customers outside of the United States. Initial Public Offering On October 5, 2016, the Company’s Registration Statement on Form S-1 (File No. 333-213551) relating to the initial public offering, or IPO, of its common stock was declared effective by the Securities and Exchange Commission, or SEC. Pursuant to such Registration Statement, the Company sold an aggregate of 5,000,000 shares of its common stock at a price of $15.00 per share for aggregate cash proceeds of $67.2 million , net of underwriting discounts, commissions, and offering costs. The IPO closed on October 12, 2016. On October 12, 2016, immediately prior to the closing of the IPO, the following events occurred: • An aggregate of 10,360,419 shares of common stock, excluding any warrant conversions, were issued to the holders of the Company’s Series A, Series B, Series C, Series C-1, Series D and Series E convertible preferred stockholders upon the automatic conversion of all shares of convertible preferred stock to common stock. As a result, no Series A, Series B, Series C, Series C-1, Series D or Series E convertible preferred stock remain outstanding at December 31, 2016. • Initiated on October 11, 2016, Series C-1 and D warrants for 36,562 shares of the Company's preferred stock were exercised by Pacific Western Bank (as successor in interest to Square 1 Bank) via cashless exercise resulting in the subsequent issuance of 16,558 shares of common stock on October 12, 2016. • Series D warrants for 24,550 shares of the Company’s preferred stock were automatically net exercised resulting in the issuance of 12,217 shares of common stock. • The remaining outstanding Series C preferred stock warrants exercisable for an aggregate of 24,224 shares of convertible preferred stock automatically converted into warrants exercisable for an aggregate of 24,224 shares of common stock. • The 2016 Plan, and the 2016 ESPP, as described in Note 7, were adopted. • An aggregate of 223,371 shares of common stock reserved but not issued under the 2008 Plan became available for grant under the 2016 Plan. • The Company filed its amended and restated certificate of incorporation on October 12, 2016, authorizing 300,000,000 shares of common stock and 10,000,000 shares of preferred stock. September 2016 Reverse Stock Split In September 2016, the Company’s board of directors approved an amendment to the Company’s amended and restated certificate of incorporation to effect a reverse stock split of the Company’s issued and outstanding common stock and convertible preferred stock at a 2.9-to-1 ratio, which was effected on September 23, 2016. All share and per share information included in the accompanying consolidated financial statements and notes to the consolidated financial statements have been retroactively adjusted to reflect the reverse stock split for the Company’s common and preferred stock for all periods presented. Reclassifications C ertain immaterial reclassifications have been made to certain of the prior years’ consolidated financial statements to conform to the current year presentation. These reclassifications have not changed the results of operations. Liquidity As reflected in the accompanying consolidated financial statements, the Company has a limited operating history and the sales and income potential of the Company’s business are unproven. The Company has not been profitable since inception, and as of December 31, 2017 , its accumulated deficit was $111.4 million . Since inception, the Company has financed its operations primarily through private placements of preferred securities, the sale of common stock through its IPO and, to a lesser extent, debt financing arrangements. The Company expects to continue to incur net losses for the foreseeable future as it builds its sales and marketing organization, supports commercialization of its product in the United States and continues research and development efforts. The Company may need additional funding to pay expenses relating to its operating activities, including selling, general and administrative expenses and research and development expenses. Adequate funding, if needed, may not be available to the Company on acceptable terms, or at all. The failure to obtain sufficient funds on acceptable terms could have a material adverse effect on the Company’s business, results of operations or financial condition. The Company believes that its existing cash and cash equivalents and short-term investments and expected revenue will be sufficient to meet its capital requirements and fund its operations through at least the next twelve months from the date of this filing. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of assets and liabilities at the date of the financial statements and the reported amounts of expenses during the reporting period. Reported amounts and note disclosures reflect the overall economic conditions that are most likely to occur and anticipated measures management intends to take. Actual results could differ materially from those estimates. All revisions to accounting estimates are recognized in the period in which the estimates are revised and in any future periods affected. Cash and Cash Equivalents The Company considers all highly liquid investments with original maturities of three months or less at the date of purchase to be cash equivalents. Cash and cash equivalents include cash in readily available checking and money market accounts. Short-Term Investments The Company classifies its investments as available-for-sale and records such assets at estimated fair value on the balance sheet, with unrealized gains and losses, if any, reported as a component of other comprehensive loss within the consolidated statements of operations and comprehensive loss. All of the Company’s short-term investments are U.S. Treasury notes with maturities of less than one year. For the years ended December 31, 2017, 2016 and 2015, unrealized losses were immaterial amounts, respectively. Realized gains and losses would be calculated on the specific-identification method and recorded as interest income. There have been no material realized gains and losses for the years ended December 31, 2017, 2016 and 2015. The Company periodically reviews available-for-sale securities for other-than-temporary declines in fair value below the cost basis whenever events or changes in circumstances indicate the carrying amount of an asset may not be recoverable. Fair Value Measurements The carrying values of the Company’s financial instruments, including cash and cash equivalents, accounts receivable from related party, accounts payable, and accrued expenses approximate their fair values due to the short maturity of these instruments. The carrying value of the term loan approximates its fair value as the interest rate and other terms are that which is currently available to the Company. The Company utilizes valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs to the extent possible. The Company determines fair value based on assumptions that market participants would use in pricing an asset or liability in the principal or most advantageous market. When considering market participant assumptions in fair value measurements, the following fair value hierarchy distinguishes between observable and unobservable inputs, which are categorized in one of the following levels in accordance with authoritative accounting guidance: ▪ Level 1 inputs: Observable inputs such as unadjusted, quoted prices in active markets for identical assets or liabilities at the measurement date. ▪ Level 2 inputs: Other than quoted prices included in Level 1 inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the asset or liability. ▪ Level 3 inputs: Unobservable inputs for the asset or liability used to measure fair value to the extent that observable inputs are not available, thereby allowing for situations in which there is little, if any, market activity for the asset or liability at measurement date. Accounts Receivable Receivables are unsecured and are carried at net realizable value including an allowance for estimated uncollectible amounts. Trade credit is generally extended on a short-term basis; thus trade receivables do not bear interest, although a finance charge may be applied to such receivables that are more than 30 days past due. The allowance for doubtful accounts is based on the Company’s assessment of the collectability of customer accounts. The Company regularly reviews the allowance by considering factors such as historical expense, credit quality, the age of the account receivable balances, and current economic conditions that may affect a customer’s ability to pay. Amounts determined to be uncollectible are charged or written off against the reserve. The Company’s allowance for doubtful accounts was $0.2 million and $0 at December 31, 2017 and 2016, respectively. Concentrations of Credit Risk Financial instruments that potentially subject the Company to significant concentrations of credit risk consist primarily of cash equivalents and trade accounts receivable, which are generally not collateralized. The Company limits its exposure to credit loss by placing its cash equivalents with high credit quality financial institutions and investing in high quality short-term debt instruments. The Company’s customers consist of distributors. The Company establishes customer credit policies related to its accounts receivable based on historical collection experiences within the various markets in which the Company operates, historical past-due amounts, and any specific information that the Company becomes aware of such as bankruptcy or liquidity issues of customers. The following table summarizes certain financial data for the customers who accounted for 10.0% or more of sales and accounts receivable. Year ended December 31, 2017 2016 2015 Single largest customer:* Revenue 16.7 % N/A N/A Accounts receivable 17.4 % N/A N/A Revenue, related party N/A 100.0 % 94.7 % Accounts receivable, related party N/A 100.0 % 100.0 % * The Company's largest customer for the years ended December 31, 2017, 2016 and 2015 was Bader Sultan & Bros. Co W.L.L., or Bader. Prior to January 1, 2017, Bader was considered a related party for accounting purposes. Inventory Inventory is stated at the lower of cost (which approximates actual cost on a first-in, first-out basis) or net realizable value, computed on a standard cost basis. Inventory that is obsolete or is in excess of forecasted usage is written down to its estimated net realizable value based on assumptions about future demand. Inventory write-downs are charged to cost of revenue and establish a new cost basis for the inventory. Property and Equipment Property and equipment are stated at cost and depreciated over the estimated useful lives of the assets. Maintenance and repairs are charged to expense as incurred. Assets not yet placed in use are not depreciated. The useful lives of the property and equipment are as follows: Computer hardware 3 years Computer software 3 years Leasehold improvements Shorter of lease term or useful life Furniture and fixtures 5 years Scientific equipment 5 years Impairment of Long-Lived Assets The Company evaluates property and equipment for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability is measured by comparison of the carrying amount of the assets to the future undiscounted net cash flows, which the assets are expected to generate. If such assets are considered to be impaired, the impairment to be recognized is measured as the difference between the carrying amount and the fair value of the impaired asset. The Company did not recognize any material impairment losses for the respective years ended December 31, 2017, 2016 and 2015. Research and Development Costs All research and development costs are charged to expense as incurred. Research and development expenses primarily include (i) payroll and related costs associated with research and development performed, (ii) costs related to clinical and preclinical testing of our technologies under development and (iii) other research and development expenses. Clinical Trial Expenses The Company enters into contracts with third party hospitals and doctors to perform clinical trial activities. The Company accrues expenses for clinical trial activities performed by third parties based on estimates of work performed by each third party as of the balance sheet date. The Company’s clinical trial expense is primarily driven by patient visits to the third party hospitals and doctors. As such, the Company accrues expense for actual patient visits based on third-party reporting and the contractually agreed upon cost for each visit to calculate its clinical accrual. Stock-Based Compensation Stock-based awards issued to employees and directors, are recorded at fair value as of the grant date and recognized as expense on a straight-line basis over the employee’s or director’s requisite service period (generally the vesting period). The fair value of incentive stock options is estimated using the Black-Scholes option pricing model. The fair value of restricted stock awards is estimated using the Company's stock price on the grant date. Because non-cash stock compensation expense is based on awards ultimately expected to vest, it is reduced by an estimate for future forfeitures. Forfeitures are estimated at the time of grant and revised, if necessary, in subsequent periods if actual forfeitures differ from estimates. Income Taxes Income taxes are accounted for under the asset-and-liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. The Company recognizes the effect of income tax positions only if those positions are more likely than not of being sustained. Recognized income tax positions are measured at the largest amount that is greater than 50% likely of being realized. Changes in recognition or measurement are reflected in the period in which the change in judgment occurs. Valuation allowances are established, when necessary, to reduce deferred tax assets to the amount expected to be realized. The Company accounts for interest and penalties related to income tax matters, if any, as a component of income tax expense or benefit. Revenue recognition The Company recognizes revenue when (i) persuasive evidence of an arrangement exists, (ii) delivery has occurred, (iii) the selling price is fixed or determinable and (iv) collectability is reasonably assured. Determination of criteria (iii) and (iv) are based on management’s judgments regarding the fixed nature of the selling prices of the products delivered and the collectability of those amounts. The Company reserves for sales returns, as a reduction to revenue, based on its historical experience. Shipping charges billed to customers are included in product revenue and the related shipping costs are included in cost of revenue. The Company's revenue contracts do not provide for maintenance. Multiple element arrangements The Company evaluates its revenue contracts under the authoritative guidance for multiple-element arrangements to determine whether each deliverable represents a separate unit of accounting. A deliverable constitutes a separate unit of accounting when it has standalone value to the customer. If the deliverable does not have standalone value without one of the undelivered elements in the arrangement, the Company combines such elements and accounts for them as a single unit of accounting. The Company allocates revenue to each separate unit of accounting based on a selling price hierarchy at the arrangement inception. The selling price for each element is based upon the following selling price hierarchy: vendor specific objective evidence, or VSOE, if available, third-party evidence, or TPE, if VSOE is not available, or estimated selling price, or ESP, if neither VSOE nor TPE are available. Typically, the components of the Obalon balloon system are packaged in a kit and delivered to the customer at the same time. If a partial delivery occurs, the Company recognizes revenue for the components which have been delivered and have met the aforementioned revenue recognition criteria. The Company allocates revenue to the various components based on management’s estimated selling price of each component. The Company bases the estimated selling price of each Obalon balloon system component using estimates within a range of selling prices considering multiple factors including, but not limited to, size of transaction, pricing strategies and market conditions. Customer incentives Estimated costs of customer incentive programs are recorded at the time the incentives are offered, based on the specific terms and conditions of the program. Estimated costs from these programs are recorded as a reduction of revenue unless the Company receives a separately identifiable benefit from the customer and can reasonably estimate the fair value of that benefit, in which case, these costs are recorded as an operating expense. In order to closely monitor the safety, efficacy and quality of the Obalon balloon system in actual commercial use, the Company has created an online clinical performance database, or registry. All physicians and institutions using the Obalon balloon system are able to enter their patents' data in the registry and compare their performance to national and regional data. Physicians are given a credit for each patient entered into the registry, subject to requirements and restrictions. The Company accrues the cost of the credit as a reduction of revenue. The Company offers a swallow guarantee program in the United States where it may provide replacement balloons to physicians and institutions when patients are unsuccessful in swallowing an Obalon balloon, subject to certain requirements and restrictions. The Company defers revenue relating to its swallow guarantee program based on its expected failure rate and then recognizes the revenue when replacement balloons are provided. In October 2017, the Company began offering a partnership program where it guarantees customers a certain number of patient leads as part of a sale. For sales involving a lead guarantee, the Company allocates a portion of the revenue to the lead component of the sale based on the estimated selling price of the leads and recognizes this revenue as the leads are provided. The Company classifies the cost of delivering the leads as a marketing expense. Product Warranty The Company warranties its products to be of good quality and free from defects in design, materials, or workmanship for approximately one year from the date of purchase. The Company accrues for the estimated future costs of repair or replacement upon shipment. The warranty accrual is recorded to cost of revenue and is based on historical and forecasted trends in the volume of product failures during the warranty period and the cost to repair or replace the equipment. It is possible that the Company’s underlying assumptions will not reflect the actual experience and in that case, future adjustments will be made to the recorded warranty obligation. The warranty expense as of December 31, 2017, 2016 and 2015 was immaterial for each year. Advertising Costs Advertising costs are expensed as incurred and included in selling, general and administrative expense. Advertising costs for the years ended December 31, 2017 , 2016 and 2015 were approximately $2.9 million , $0.9 million and $0.3 million , respectively. Net Loss per Share Basic net loss per share is calculated by dividing the net loss by the weighted-average number of shares of common stock outstanding during the period without consideration for common stock equivalents. Diluted net loss per share is the same as basic net loss per common share, since the effects of potentially dilutive securities are anti-dilutive for all periods presented due to the net loss position. Dilutive common stock equivalents are comprised of unexercised stock options outstanding, unvested restricted stock awards (RSAs) and, prior to the Company's IPO, convertible preferred stock. Recently Issued and Adopted Accounting Pronouncements From time to time, new accounting pronouncements are issued by the Financial Accounting Standards Board, or FASB, or other standard setting bodies that are adopted by the Company as of the specified effective date. Unless otherwise discussed, the Company believes that the impact of recently issued standards that are not yet effective will not have a material impact on its financial position or results of operations upon adoption. Recently Adopted Accounting Pronouncements In July 2015, FASB issued ASU 2015-11, Simplifying the Measurement of Inventory (Topic 330) . This update applies to companies that measure inventory on a first in, first out, or FIFO, or average cost basis. Under this update, companies are to measure their inventory at the lower of cost and net realizable value. Net realizable value is the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion. The amendments in this update are effective for annual reporting periods, and interim periods within those periods, beginning after December 15, 2016 with earlier application permitted as of the beginning of an interim or annual reporting period. The adoption, effective January 1, 2017, did not have a material impact on the Company’s consolidated financial statements. In March 2016, the FASB issued ASU 2016-09, Improvements to Employee Share-Based Payment Accounting Compensation - Stock Compensation (Topic 718) , which involves several aspects of the accounting for stock-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. This new guidance requires all income tax effects of awards to be recognized as income tax expense or benefit in the income statement when the awards vest or are settled, as opposed to additional paid-in-capital where it is currently recorded. It also allows an employer to repurchase more of an employee’s shares than it could for tax withholding purposes without triggering liability accounting. All tax-related cash flows resulting from stock-based payments are reported as operating activities on the statement of cash flows. The guidance also allows a Company to make a policy election to either estimate the number of awards that are expected to vest or account for forfeitures as they occur. This new standard is effective for annual reporting periods, and interim periods within those periods, beginning after December 15, 2016, with early adoption permitted. The Company adopted this guidance effective January 1, 2017. As the Company does not recognize any tax benefit related to employee stock-based compensation expense as a result of the full valuation allowance on its deferred tax assets nor does it currently grant share grants nor withhold any taxes upon option exercises, the adoption did not result in an impact to its consolidated financial statements. In addition, the Company elected to keep its policy consistent for the application of an estimated forfeiture rate. Recently Issued Accounting Pronouncements not yet adopted In August 2015, the FASB issued Accounting Standards Update, or ASU, 2015-14, Revenue from Contracts with Customers (ASC 606) , which defers the effective date of ASU 2014-09 by one year. ASC 606 outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance, including industry-specific guidance. ASC 606 provides a five step approach for analyzing revenue transactions: identify the contract with the customer, identify the performance obligations in the contract, determine the transaction price, allocate the transaction price to the performance obligations, and recognize revenue when (or as) performance obligations are satisfied. ASC 606 becomes effective for the Company in the first quarter of fiscal year 2018. ASC 606 also provides companies with two implementation methods: (a) full retrospective adoption, meaning the standard is applied to all periods presented, or (b) modified retrospective adoption, meaning the cumulative effect of applying the new standard is recognized as an adjustment to the opening retained earnings balance. The Company will adopt ASC 606 on January 1, 2018 using the modified retrospective method. The Company has substantially completed its assessment of the impact of ASC 606 for its current standard customer contracts. Based on the assessment, the Company has identified similar performance obligations under ASC 606 as compared with deliverables and separate unit of accounts previously identified under ASC 605. The majority of the Company's revenue relates to product sales for which revenue is recognized at a point in time (typically at shipping point). Based on its analysis, the Company does not expect revenue for its current standard contracts to be affected materially in any period due to the adoption of ASC 606. ASC 606 is principle based and interpretation of those principles may vary from company to company based on their unique circumstances. It is possible that interpretation, industry practice, and guidance may evolve as companies and the accounting profession work to implement this new standard. While substantially complete, the Company is still in the process of finalizing its evaluation of the effect of ASC 606 on the Company’s disclosures. The Company also is finalizing its evaluation of the standard on its multiple element arrangements and customer incentive programs including its swallow guarantee, patient registry and partnership programs. As the Company completes its evaluation of this new standard, new information may arise that could change the Company’s current understanding of the impact to revenue and expense recognized. Additionally, the Company will continue to monitor industry activities and any additional guidance provided by regulators, standards setters, or the accounting profession and adjust the Company’s assessment and implementation plans accordingly. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) . Under this new guidance, at the commencement date, lessees will be required to recognize (i) a lease liability, which is a lessee’s obligation to make lease payments arising from a lease, measured on a discounted basis and (ii) a right-of-use asset, which is an asset that represents the lessee’s right to use, or control the use of, a specified asset for the lease term. This guidance is not applicable for leases with a term of 12 months or less. The new standard is effective for annual reporting periods, and interim periods within those periods, beginning after December 15, 2018, with early adoption permitted. The Company is currently evaluating the impact that this standard will have on its consolidated financial statements. In May 2017, the FASB issued ASU 2017-09, Compensation-Stock Compensation (Topic 718). This guidance was created to provide clarity and reduce both (1) diversity in practice and (2) cost and complexity when applying the guidance in Topic 718 to a change in the terms or conditions of a share-based payment award. ASU 2017-09 provides guidance about which changes to the terms or conditions of a share-based payment award require an entity to apply modification accounting under Topic 718. The amendments in ASU 2017-09 should be applied prospectively to an award modified on or after the adoption date. This guidance is effective for fiscal years, and interim periods within those years, beginning after December 15, 2017, with early adoption permitted. The Company does not anticipate that the adoption of ASU 2017-09 will have a material impact on its consolidated financial statements unless there are significant changes to the Company's outstanding share based payment awards at which time the Company would assess the impact of the standard. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements Instruments Recorded at Fair Value on a Recurring Basis The Company has segregated all financial assets and liabilities that are measured at fair value on a recurring basis (at least annually) into the most appropriate level within the fair value hierarchy based on the inputs used to determine the fair value at the measurement date in the table below. Assets and liabilities measured at fair value on a recurring basis at December 31, 2017 and 2016 are as follows (in thousands): Fair value measurements at reporting date using Balance as of December 31, 2017 Quoted prices Significant Significant Assets: Cash Equivalents Money Market Funds 12,115 12,115 — — U.S. Treasury bonds 8,993 8,993 — — Short-term investments: U.S. Treasury bonds $ 23,292 $ 23,292 $ — $ — Total assets $ 44,400 $ 44,400 $ — $ — Fair value measurements at reporting date using Balance as of December 31, 2016 Quoted prices in active Significant (Level 2) Significant (Level 3) Assets: Short-term investments: U.S. Treasury bonds $ 2,500 $ 2,500 — — Total assets $ 2,500 $ 2,500 $ — $ — The Company’s investments in Level 1 assets are valued based on publicly available quoted market prices for identical securities as of December 31, 2017 and 2016 . Instruments Not Recorded at Fair Value on a Recurring Basis The estimated fair value of the term loan is determined by Level 2 inputs and is based primarily on quoted market prices for the same or similar issues. The recorded value of the term loan approximates the current fair value due to the proximity of when the term loan was negotiated. |
Net Loss per Share
Net Loss per Share | 12 Months Ended |
Dec. 31, 2017 | |
Earnings Per Share [Abstract] | |
Net Loss per Share | Net Loss per Share The following table sets forth the computation of basic and diluted net loss per share of common stock (in thousands, except shares and per share data): Year ended December 31, 2017 2016 2015 Net loss $ (34,765 ) $ (20,467 ) $ (15,557 ) Weighted-average shares used in computing net loss per share 16,717,106 4,221,893 573,181 Net loss per share, basic and diluted $ (2.08 ) $ (4.85 ) $ (27.14 ) The following table sets forth the outstanding potentially dilutive securities determined using the treasury stock and if-converted methods that have been excluded in the calculation of diluted net loss per share because to do so would be anti-dilutive (in common stock equivalent shares): Year ended December 31, 2017 2016 2015 Convertible preferred stock, on an as-converted basis — — 8,443,994 Stock options to purchase common stock 886,526 830,145 — Unvested restricted common stock awards 103,706 — — Total 990,232 830,145 8,443,994 |
Balance Sheet Details
Balance Sheet Details | 12 Months Ended |
Dec. 31, 2017 | |
Balance Sheet Related Disclosures [Abstract] | |
Balance Sheet Details | Balance Sheet Details Short-term investments consist of the following (in thousands): Maturity Amortized Gross Gross Estimated At December 31, 2017: U.S. Treasury bonds 1 year or less $ 23,295 $ — $ (3 ) $ 23,292 Maturity Amortized Gross Gross Estimated At December 31, 2016: U.S. Treasury bonds 1 year or less $ 2,501 $ — $ (1 ) $ 2,500 Inventory consists of the following (in thousands): December 31, 2017 2016 Raw materials $ 1,046 $ 379 Work in process 127 239 Finished goods 245 209 Total $ 1,418 $ 827 Other current assets consist of the following (in thousands): December 31, 2017 2016 Prepaid assets $ 1,514 $ 962 Interest receivable 85 5 Other assets 115 277 Total $ 1,714 $ 1,244 Property and equipment, net consist of the following (in thousands): December 31, 2017 2016 Computer hardware $ 397 $ 261 Computer software 392 73 Leasehold improvements 238 193 Furniture and fixtures 160 118 Scientific equipment 1,354 854 Construction in progress 220 302 2,761 1,801 Less: accumulated depreciation and amortization (1,415 ) (1,084 ) Total $ 1,346 $ 717 Depreciation and amortization expense for the years ended December 31, 2017 , 2016 and 2015 was $ 0.3 million, $0.2 million and $0.2 million for each period, respectively. Other current liabilities consist of the following (in thousands): December 31, 2017 2016 Accrued legal and professional fees 289 613 Accrued customer incentives 558 — Accrued sales and other taxes 167 — Accrued marketing expenses 60 122 Other accrued expenses 699 644 Total $ 1,773 $ 1,379 |
Term Loan
Term Loan | 12 Months Ended |
Dec. 31, 2017 | |
Debt Disclosure [Abstract] | |
Term Loan | Term Loan In June 2013, the Company entered into a $3.0 million loan and security agreement (Loan Agreement) with Square 1 Bank (predecessor-in-interest to Pacific Western Bank), which it subsequently amended in October 2014, September 2016, December 2016 and June 2017. As of December 31, 2017 , the Company had $10.0 million outstanding under this Loan Agreement. Originally, the Loan Agreement had two tranches available as follows: a first tranche consisting of $10.0 million which was carried over from the previous agreement, and a second tranche of $5.0 million which could have been drawn down any time prior to December 21, 2017, but went unused and expired. The outstanding debt has a variable annual interest rate equal to the greater of the prime rate plus 1.50% or 5.0% . As the prime rate was 4.50% as of December 31, 2017, the interest rate on the debt was 6.0% as of December 31, 2017. The Loan Agreement matures on December 21, 2020 and has an interest-only period through June 21, 2018 followed by 30 equal monthly installments of principal and interest with the first principal payment due on July 1, 2018. The Loan Agreement may be prepaid in full at any time with no additional cost. The loan fees and debt issuance costs paid related to the Loan Agreement and its amendments are being amortized to interest expense over the remaining term of the Loan Agreement using the effective-interest method. The Loan Agreement also states that the Company's accounts maintained with the bank contain an aggregate balance in an amount equal to or greater than the total amount of outstanding debt under the Loan Agreement. While the bank has a security interest in those funds, the Company is able to use the funds in the ordinary course of its business. Total long-term loan and unamortized debt discount balances are as follows (in thousands): December 31, 2017 Face value $ 10,000 Less: debt issuance costs (78 ) Total long-term loan $ 9,922 Less: current portion of long-term loan (1,958 ) Total long-term loan, excluding current portion $ 7,964 As of December 31, 2017 , future principal payments due under the December 2016 Loan Agreement are as follows (in thousands): Year ended: December 31, 2018 2,000 December 31, 2019 4,000 December 31, 2020 4,000 Total future principal payments due under the December 2016 Loan Agreement $ 10,000 |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation Equity Incentive Plans On October 4, 2016, the 2016 Equity Incentive Plan, or the 2016 Plan, became effective. The 2016 Plan serves as a successor to the 2008 Plan. The 2016 Plan permits the award of stock options, restricted stock awards, stock appreciation rights, restricted stock units, performance awards, cash awards and stock bonuses. The Company reserved 2,200,000 shares of common stock for issuance under the 2016 Plan, plus the 223,371 reserved and unissued shares under the 2008 plan on the effective date of the 2016 Plan. The number of shares reserved for issuance under the 2016 Plan will increase automatically on January 1 of each calendar year continuing through the tenth calendar year during the term of the 2016 Plan by the number of shares equal to 4% of the total outstanding shares of the Company's common stock and common stock equivalents as of the immediately preceding December 31. At December 31, 2017, 895,231 shares remained available for future grant under the 2016 Plan. The Company determines the fair value of each stock option or award on the grant date and recognizes that fair value as stock-based compensation straight-line over the vesting term of the award. The Company estimates forfeitures at the time of grant based on historical data and records stock-based compensation only for options and awards expected to vest. The Company revises its forfeiture estimates on an annual basis and records any difference as a cumulative adjustment in the period the estimates are revised. The Company recorded total non-cash compensation, including non-cash compensation to employees and nonemployees in the consolidated statements of operations and comprehensive loss as follows (in thousands): Year ended December 31, 2017 2016 2015 Cost of revenue $ 115 $ 46 $ 31 Research and development 406 115 47 Selling, general and administrative 2,720 402 129 Total $ 3,241 $ 563 $ 207 Unrecognized stock- based compensation expense at December 31, 2017 was approximately $8.2 million , which is expected to be recognized over a weighted-average term of 2.3 years. Incentive Stock Options Recipients of incentive stock options can purchase shares of the Company’s common stock at a price equal to the stock's fair market value on the grant date, based on the closing price of the Company's stock on the grant date. Options granted generally expire after 10 years. Options granted generally vest 25% on the first anniversary of the original vesting date, with the balance vesting monthly over the remaining three years , subject to continued employment. The fair value of each option granted was estimated on the date of grant using the Black-Scholes option pricing model using the following assumptions: Year ended December 31, 2017 2016 2015 Assumed risk-free interest rate (1) 1.81%- 2.23% 1.40% -1.53% 1.57% Assumed volatility (2) 55.11%-58.97% 52.91% - 53.49% 61.53% Expected option life (3) 6.1 years 6.1 years 6.1 years Expected dividend yield (4) —% —% —% (1) The risk-free interest rate was determined based on the U.S. Treasury yield in effect at the time of the grant for zero-coupon U.S. Treasury notes with remaining terms similar to the expected term of the options. (2) The volatility was determined based on analysis of the volatility of a peer group of publicly traded companies as the Company's stock has not traded publicly for a significant time and the Company has limited company specific historical volatility. The peer group was determined considering factors such as stage of development, risk profile, enterprise value and position within the industry. (3) The expected option life was determined using the “simplified method” for estimating the expected option life, which is the average of the weighted-average vesting period and contractual term of the option. (4) The expected dividend yield was zero as the Company has not historically issued dividends and does not expect to do so in the foreseeable future. The following table summarizes stock option transactions for the Plan for the year ended December 31, 2017 (in thousands, except shares and per share data): Number of Weighted- Weighted- (in years) Aggregate Outstanding at December 31, 2016 2,225,684 $ 5.00 Options granted 931,343 9.62 Options exercised (84,433 ) 2.17 Options canceled (93,309 ) 6.25 Outstanding at December 31, 2017 2,979,285 6.49 8.1 5,244 Vested and expected to vest at December 31, 2017 2,718,966 $ 6.36 8.1 5,024 Vested and exercisable at December 31, 2017 1,042,618 $ 4.36 6.7 3,253 The weighted-average fair value of options granted during the year ended December 31, 2017 was $5.31 . The intrinsic value of options exercised for the years ended December 31, 2017, 2016, and 2015 was $0.6 million , $1.2 million , and immaterial, respectively. All options outstanding under the previous 2008 Plan are exercisable under the early exercise provisions of the Plan. Options granted under the Plan that are exercised prior to vesting are subject to repurchase by the Company at the original issue price and will vest according to the respective option agreement. There were no options early exercised for the year ended December 31, 2017 . For the prior year ended December 31, 2016, 252,453 options were early exercised and 122,047 remain unvested with a related liability of $0.1 million recorded under other current liabilities on the Company’s consolidated balance sheet as of December 31, 2017 . No options were early exercised for the year ended December 31, 2015. Restricted Stock Awards During fiscal year 2017, the Company began granting restricted stock awards to certain employees. The following table summarizes restricted stock award transactions for the year ended December 31, 2017 : Number of awards Weighted- average grant date fair value Outstanding at December 31, 2016 — $ — Awards granted 414,208 9.99 Awards vested (1,208 ) 8.86 Awards canceled — — Outstanding at December 31, 2017 413,000 $ 9.98 The Company's current restricted stock awards generally vest 100% on the four year anniversary of the grant date, subject to continued employment. The fair-value of each restricted stock award is determined on the grant date using the closing price of the Company's common stock on the grant date. Stock-based compensation expense related to restricted stock awards was $0.3 million for the year ended December 31, 2017 , and is included in total stock-based compensation expense previously disclosed. This expense is expected to be recognized over a weighted-average period of 3.7 years. Employee Stock Purchase Plan On October 5, 2016, the 2016 Employee Stock Purchase Plan, or ESPP, became effective. The 2016 ESPP was adopted in order to enable eligible employees to purchase shares of the Company’s common stock at a discount. Purchases will be accomplished through participation in discrete offering periods. The Company initially reserved 180,000 shares of common stock for issuance under the 2016 ESPP. The number of shares reserved for issuance under the 2016 ESPP will increase automatically on January 1 of each calendar year beginning after the first offering date and continuing through the first ten calendar years by the number of shares equal to 1% of the total outstanding shares of our common stock and common stock equivalents as of the immediately preceding December 31. During the year ended December 31, 2017 , the company issued 53,758 shares of common stock pursuant to the ESPP, and received proceeds of $0.4 million . Stock compensation expense related to the ESPP was $0.2 million and immaterial for the years ended December 31, 2017 and 2016, respectively, and is included in total stock compensation expense disclosed above. |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Dec. 31, 2017 | |
Equity [Abstract] | |
Stockholders' Equity | Stockholders’ Equity Outstanding Warrants The following equity classified warrants were outstanding as of December 31, 2017 : Shares Weighted- Issuance date Expiration date Common stock warrants (1) 24,224 $ 6.1918 Feb 24, 2012 Feb 24, 2019 (1) Prior to conversion upon IPO, the remaining warrants were for the purchase of Series C preferred stock. Common Stock Reserved for Future Issuance Common stock reserved for future issuance consists of the following at December 31, 2017 : Stock options issued and outstanding 2,979,285 Authorized for future option and award grants 895,231 Authorized for future issuance under ESPP 316,473 Warrants outstanding 24,224 Total 4,215,213 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The income tax provision (benefit) consists of the following (in thousands): Year ended December 31, 2017 2016 2015 Current: Federal $ — $ — $ — State 10 2 2 Foreign — — (15 ) Total current provision 10 2 (13 ) Deferred: Federal — — — State — — — Foreign — — — Total deferred provision — — — Income tax provision (benefit) $ 10 $ 2 $ (13 ) The difference between income tax benefits and income taxes computed using the U.S. federal income tax rate as of December 31, 2017, 2016 and 2015 are as follows (in thousands): Year ended December 31, 2017 2016 2015 Federal provision (benefit) At statutory rates $ (11,820 ) $ (6,959 ) $ (5,290 ) State taxes, net of federal — — 1 Change in valuation allowance 11,830 6,961 5,291 Foreign operations — — (15 ) Income tax provision (benefit) $ 10 $ 2 $ (13 ) Significant components of the Company’s deferred tax assets are as shown below: Year ended December 31, 2017 2016 Deferred tax assets: Net operating losses $ 20,795 $ 20,801 Tax credits 3,747 2,773 Capitalized research and development costs 3,720 5,279 Other 1,808 259 Total gross deferred tax assets 30,070 29,112 Less valuation allowance (30,070 ) (29,112 ) Total deferred tax assets $ — $ — A valuation allowance of $ 30.1 million and $ 29.1 million as of December 31, 2017 and 2016, respectively, has been established to offset the deferred tax assets as realization of such assets are uncertain. At December 31, 2017 , the Company had federal and state net operating loss carryforwards of approximately $ 88.8 million and $ 56.8 million , respectively. Each of the federal and state tax loss carryforwards will begin expiring in 2028, unless previously utilized. The Company also has federal and California research and development tax credit carryforwards totaling $ 2.1 million and $ 2.0 million , respectively. The federal research and development tax credit carryforward will begin to expire in 2028 unless previously utilized. The California research tax credits do not expire. Pursuant to Internal Revenue Code, or IRC, Sections 382 and 383, annual use of the Company’s net operating loss and research and development credit carryforwards may be limited in the event a cumulative change in ownership of more than 50% occurs within a three-year period. The Company has not completed an IRC Section 382 and 383 analysis regarding the limitation of net operating loss and research and development credit carryforwards. In accordance with authoritative guidance, the impact of an uncertain income tax position on the income tax return must be recognized at the largest amount that is more-likely-than-not to be sustained upon an audit by the relevant taxing authority. An uncertain income tax position will not be recognized if it has less than a 50% likelihood of being sustained. As of December 31, 2017 and 2016, the Company had unrecognized tax benefits of $2.1 million and $0 , respectively. There are no unrecognized tax benefits included on the consolidated balance sheet that would, if recognized, impact the effective tax rate, given the valuation allowance recorded against the deferred tax assets. The Company does not anticipate there will be a significant change in unrecognized tax benefits within the next 12 months. A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows Year ended December 31, 2017 2016 Balance at January 1 $ — $ — Additions based on tax positions related to current year 449 — Additions based on tax positions related to prior years 1,679 — Balance at December 31 $ 2,128 $ — The Company is subject to taxation in the United States and various state jurisdictions. Due to the net operating loss carryforwards, the U.S. federal and state returns are open to examination for all years since inception. The Company has not been, nor is it currently, under examination by the federal or any state tax authority. On December 22, 2017, President Trump signed into law the Tax Cuts and Jobs Act (the "Act"). The Act amends the Internal Revenue Code to reduce tax rates and modify policies, credits, and deductions for individuals and businesses. For businesses, the Act reduces the corporate tax rate from a maximum of 35% to a flat 21% rate. The rate reduction is effective on January 1, 2018. As a result of the rate reduction, the Company has reduced the deferred tax asset balance as of December 31, 2017 by $13.3 million . Due to the Company's full valuation allowance position, the Company has also reduced the valuation allowance by the same amount. The accounting for the effects of the rate change on deferred tax balances is provisional and may be updated as further guidance regarding the Act becomes available and further analysis is performed. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies The Company leases facilities under a noncancelable operating lease that expires on March 31, 2019. Under the terms of the facilities lease, the Company is required to pay its proportionate share of property taxes, insurance and normal maintenance costs. We enter into contracts in the normal course of business with clinical trial sites and clinical supply manufacturing organizations and with vendors for preclinical studies, research supplies and other services and products for operating purposes. These contracts generally provide for termination after a notice period, and, therefore, are cancelable contracts and not included in the table below. Future noncancelable minimum payment obligations under the operating lease were as follows as of December 31, 2017 (in thousands): Year ended: December 31, 2018 397 December 31, 2019 100 Total future payments due under building lease $ 497 Rent expense totaled $0.4 million for the year ended December 31, 2017 , $0.3 million for the year ended December 31, 2016 and $0.2 million for the year ended December 31, 2015, respectively. Litigation On June 22, 2017, Polyzen, Inc. initiated a patent infringement action against the Company in the United States District Court for the Southern District of California relating to three patents owned by Polyzen. The complaint sought damages related to the alleged infringement. The Company settled this claim in August 2017 by issuing 150,000 shares of common stock to Polyzen in return for a general release of all claims. The Company recognized $1.4 million in non-cash expense related to this settlement based on the fair value of the Company's stock on the settlement date. On October 30, 2017, the Company agreed to issue 25,000 shares of common stock and to make a nominal cash payment to Phagia Technology, Inc. in connection with the settlement of certain contractual claims asserted by Phagia for milestone and royalty payments associated with the approval and commercial launch of the Obalon balloon system. In return, the Company is receiving a general release of all claims. The Company recognized $0.2 million in non-cash expense related to this settlement based on the fair value of the Company's stock on the settlement date. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2017 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions In June 2013, the Company and Bader, a healthcare products distributor based in Sufat, Kuwait, entered into a distribution agreement, whereby the Company appointed Bader as a distributor of its products in the Middle East. Sales to Bader began in November 2013. Bader subsequently participated in the Company's Series D convertible preferred stock financing in 2014. Prior to the Company's initial public offering, or IPO, in October 2016, Bader was considered a related party due to its beneficial ownership percentage of the Company. As a result of Bader’s decreased beneficial ownership percentage of the Company following the IPO, Bader is no longer considered a related party for accounting purposes beginning January 1, 2017. Sales to Bader for the years ended December 31, 2017, 2016 and 2015 totaled $1.7 million , $3.4 million and $3.8 million , respectively and represented 16.7% , 100% and 94.7% of total revenue for the respective years. As of December 31, 2017, the Company had accounts receivable from Bader of $0.8 million . |
Selected Quarterly Financial Da
Selected Quarterly Financial Data (Unaudited) | 12 Months Ended |
Dec. 31, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |
Selected Quarterly Financial Data (Unaudited) | Selected Quarterly Financial Data (Unaudited) The following is a summary of the quarterly results of the Company for the years ended December 31, 2017 and 2016 (unaudited, in thousands, except for per share data) : Three Months Ended Year Ended 2017: March 31, June 30, September 30, December 31, December 31, Revenue $ 1,472 $ 1,963 $ 2,787 $ 3,692 $ 9,914 Gross profit 649 973 1,473 1,990 5,085 Loss from operations (7,691 ) (7,640 ) (9,138 ) (9,922 ) (34,391 ) Net loss $ (7,745 ) $ (7,730 ) $ (9,170 ) $ (10,120 ) $ (34,765 ) Per common share: Net loss per share, basic and diluted $ (0.47 ) $ (0.46 ) $ (0.55 ) $ (0.60 ) $ (2.08 ) Three Months Ended Year Ended 2016: March 31, June 30, September 30, December 31, December 31, Revenue $ 1,069 $ 779 $ 773 $ 772 $ 3,393 Gross profit 447 107 129 (99 ) 584 Loss from operations (3,444 ) (4,075 ) (4,452 ) (7,534 ) (19,505 ) Net loss $ (3,581 ) $ (4,131 ) $ (5,260 ) $ (7,495 ) $ (20,467 ) Per common share: Net loss per share, basic and diluted $ (6.22 ) $ (7.15 ) $ (5.46 ) $ (0.51 ) $ (4.85 ) |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2017 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events Stock Option Grants Subsequent to December 31, 2017 , stock options and awards for 0.9 million shares of the Company’s common stock were granted to Company employees. Hustig and Cook Litigation On February 14 and 22, 2018, plaintiff stockholders filed class action lawsuits against us and certain of our executive officers in the United States District Court for the Southern District of California (Hustig v. Obalon Therapeutics, Inc., et al., Case No. 3:18-cv-00352-AJB-WVG, and Cook v. Obalon Therapeutics, Inc. et al., Case No. 3:18-cv-00407-CAB-RBB). The complaints allege that we and certain of our executive officers made false and misleading statements and failed to disclose material adverse facts about our business, operations, and prospects in violation of Sections 10(b) (and Rule 10b-5 promulgated thereunder) and 20(a) of the Exchange Act. The Cook complaint also alleges violations of Section 11 of the Exchange Act arising out of the Company’s initial public offering. The plaintiffs seek damages, interest, costs, attorneys' fees, and other unspecified equitable relief. The cases are at a preliminary stage and we intend to vigorously defend against it. |
Summary of Significant Accoun21
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Reclassifications | Reclassifications C ertain immaterial reclassifications have been made to certain of the prior years’ consolidated financial statements to conform to the current year presentation. These reclassifications have not changed the results of operations. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of assets and liabilities at the date of the financial statements and the reported amounts of expenses during the reporting period. Reported amounts and note disclosures reflect the overall economic conditions that are most likely to occur and anticipated measures management intends to take. Actual results could differ materially from those estimates. All revisions to accounting estimates are recognized in the period in which the estimates are revised and in any future periods affected. |
Cash and Cash Equivalents | Cash and Cash Equivalents The Company considers all highly liquid investments with original maturities of three months or less at the date of purchase to be cash equivalents. Cash and cash equivalents include cash in readily available checking and money market accounts. |
Short-Term Investments | Short-Term Investments The Company classifies its investments as available-for-sale and records such assets at estimated fair value on the balance sheet, with unrealized gains and losses, if any, reported as a component of other comprehensive loss within the consolidated statements of operations and comprehensive loss. All of the Company’s short-term investments are U.S. Treasury notes with maturities of less than one year. For the years ended December 31, 2017, 2016 and 2015, unrealized losses were immaterial amounts, respectively. Realized gains and losses would be calculated on the specific-identification method and recorded as interest income. There have been no material realized gains and losses for the years ended December 31, 2017, 2016 and 2015. The Company periodically reviews available-for-sale securities for other-than-temporary declines in fair value below the cost basis whenever events or changes in circumstances indicate the carrying amount of an asset may not be recoverable. |
Fair Value Measurements | Fair Value Measurements The carrying values of the Company’s financial instruments, including cash and cash equivalents, accounts receivable from related party, accounts payable, and accrued expenses approximate their fair values due to the short maturity of these instruments. The carrying value of the term loan approximates its fair value as the interest rate and other terms are that which is currently available to the Company. The Company utilizes valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs to the extent possible. The Company determines fair value based on assumptions that market participants would use in pricing an asset or liability in the principal or most advantageous market. When considering market participant assumptions in fair value measurements, the following fair value hierarchy distinguishes between observable and unobservable inputs, which are categorized in one of the following levels in accordance with authoritative accounting guidance: ▪ Level 1 inputs: Observable inputs such as unadjusted, quoted prices in active markets for identical assets or liabilities at the measurement date. ▪ Level 2 inputs: Other than quoted prices included in Level 1 inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the asset or liability. ▪ Level 3 inputs: Unobservable inputs for the asset or liability used to measure fair value to the extent that observable inputs are not available, thereby allowing for situations in which there is little, if any, market activity for the asset or liability at measurement date. |
Accounts Receivable | Accounts Receivable Receivables are unsecured and are carried at net realizable value including an allowance for estimated uncollectible amounts. Trade credit is generally extended on a short-term basis; thus trade receivables do not bear interest, although a finance charge may be applied to such receivables that are more than 30 days past due. The allowance for doubtful accounts is based on the Company’s assessment of the collectability of customer accounts. The Company regularly reviews the allowance by considering factors such as historical expense, credit quality, the age of the account receivable balances, and current economic conditions that may affect a customer’s ability to pay. Amounts determined to be uncollectible are charged or written off against the reserve. |
Concentrations of Credit Risk | Concentrations of Credit Risk Financial instruments that potentially subject the Company to significant concentrations of credit risk consist primarily of cash equivalents and trade accounts receivable, which are generally not collateralized. The Company limits its exposure to credit loss by placing its cash equivalents with high credit quality financial institutions and investing in high quality short-term debt instruments. The Company’s customers consist of distributors. The Company establishes customer credit policies related to its accounts receivable based on historical collection experiences within the various markets in which the Company operates, historical past-due amounts, and any specific information that the Company becomes aware of such as bankruptcy or liquidity issues of customers. |
Inventory | Inventory Inventory is stated at the lower of cost (which approximates actual cost on a first-in, first-out basis) or net realizable value, computed on a standard cost basis. Inventory that is obsolete or is in excess of forecasted usage is written down to its estimated net realizable value based on assumptions about future demand. Inventory write-downs are charged to cost of revenue and establish a new cost basis for the inventory. |
Property and Equipment | Property and Equipment Property and equipment are stated at cost and depreciated over the estimated useful lives of the assets. Maintenance and repairs are charged to expense as incurred. Assets not yet placed in use are not depreciated. The useful lives of the property and equipment are as follows: Computer hardware 3 years Computer software 3 years Leasehold improvements Shorter of lease term or useful life Furniture and fixtures 5 years Scientific equipment 5 years |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets The Company evaluates property and equipment for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability is measured by comparison of the carrying amount of the assets to the future undiscounted net cash flows, which the assets are expected to generate. If such assets are considered to be impaired, the impairment to be recognized is measured as the difference between the carrying amount and the fair value of the impaired asset. |
Research and Development Costs | Research and Development Costs All research and development costs are charged to expense as incurred. Research and development expenses primarily include (i) payroll and related costs associated with research and development performed, (ii) costs related to clinical and preclinical testing of our technologies under development and (iii) other research and development expenses. |
Clinical Trial Expenses | Clinical Trial Expenses The Company enters into contracts with third party hospitals and doctors to perform clinical trial activities. The Company accrues expenses for clinical trial activities performed by third parties based on estimates of work performed by each third party as of the balance sheet date. The Company’s clinical trial expense is primarily driven by patient visits to the third party hospitals and doctors. As such, the Company accrues expense for actual patient visits based on third-party reporting and the contractually agreed upon cost for each visit to calculate its clinical accrual. |
Stock-Based Compensation | Stock-Based Compensation Stock-based awards issued to employees and directors, are recorded at fair value as of the grant date and recognized as expense on a straight-line basis over the employee’s or director’s requisite service period (generally the vesting period). The fair value of incentive stock options is estimated using the Black-Scholes option pricing model. The fair value of restricted stock awards is estimated using the Company's stock price on the grant date. Because non-cash stock compensation expense is based on awards ultimately expected to vest, it is reduced by an estimate for future forfeitures. Forfeitures are estimated at the time of grant and revised, if necessary, in subsequent periods if actual forfeitures differ from estimates. |
Income Taxes | Income Taxes Income taxes are accounted for under the asset-and-liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. The Company recognizes the effect of income tax positions only if those positions are more likely than not of being sustained. Recognized income tax positions are measured at the largest amount that is greater than 50% likely of being realized. Changes in recognition or measurement are reflected in the period in which the change in judgment occurs. Valuation allowances are established, when necessary, to reduce deferred tax assets to the amount expected to be realized. The Company accounts for interest and penalties related to income tax matters, if any, as a component of income tax expense or benefit. |
Revenue Recognition | Revenue recognition The Company recognizes revenue when (i) persuasive evidence of an arrangement exists, (ii) delivery has occurred, (iii) the selling price is fixed or determinable and (iv) collectability is reasonably assured. Determination of criteria (iii) and (iv) are based on management’s judgments regarding the fixed nature of the selling prices of the products delivered and the collectability of those amounts. The Company reserves for sales returns, as a reduction to revenue, based on its historical experience. Shipping charges billed to customers are included in product revenue and the related shipping costs are included in cost of revenue. The Company's revenue contracts do not provide for maintenance. Multiple element arrangements The Company evaluates its revenue contracts under the authoritative guidance for multiple-element arrangements to determine whether each deliverable represents a separate unit of accounting. A deliverable constitutes a separate unit of accounting when it has standalone value to the customer. If the deliverable does not have standalone value without one of the undelivered elements in the arrangement, the Company combines such elements and accounts for them as a single unit of accounting. The Company allocates revenue to each separate unit of accounting based on a selling price hierarchy at the arrangement inception. The selling price for each element is based upon the following selling price hierarchy: vendor specific objective evidence, or VSOE, if available, third-party evidence, or TPE, if VSOE is not available, or estimated selling price, or ESP, if neither VSOE nor TPE are available. Typically, the components of the Obalon balloon system are packaged in a kit and delivered to the customer at the same time. If a partial delivery occurs, the Company recognizes revenue for the components which have been delivered and have met the aforementioned revenue recognition criteria. The Company allocates revenue to the various components based on management’s estimated selling price of each component. The Company bases the estimated selling price of each Obalon balloon system component using estimates within a range of selling prices considering multiple factors including, but not limited to, size of transaction, pricing strategies and market conditions. Customer incentives Estimated costs of customer incentive programs are recorded at the time the incentives are offered, based on the specific terms and conditions of the program. Estimated costs from these programs are recorded as a reduction of revenue unless the Company receives a separately identifiable benefit from the customer and can reasonably estimate the fair value of that benefit, in which case, these costs are recorded as an operating expense. In order to closely monitor the safety, efficacy and quality of the Obalon balloon system in actual commercial use, the Company has created an online clinical performance database, or registry. All physicians and institutions using the Obalon balloon system are able to enter their patents' data in the registry and compare their performance to national and regional data. Physicians are given a credit for each patient entered into the registry, subject to requirements and restrictions. The Company accrues the cost of the credit as a reduction of revenue. The Company offers a swallow guarantee program in the United States where it may provide replacement balloons to physicians and institutions when patients are unsuccessful in swallowing an Obalon balloon, subject to certain requirements and restrictions. The Company defers revenue relating to its swallow guarantee program based on its expected failure rate and then recognizes the revenue when replacement balloons are provided. In October 2017, the Company began offering a partnership program where it guarantees customers a certain number of patient leads as part of a sale. For sales involving a lead guarantee, the Company allocates a portion of the revenue to the lead component of the sale based on the estimated selling price of the leads and recognizes this revenue as the leads are provided. |
Product Warranty | Product Warranty The Company warranties its products to be of good quality and free from defects in design, materials, or workmanship for approximately one year from the date of purchase. The Company accrues for the estimated future costs of repair or replacement upon shipment. The warranty accrual is recorded to cost of revenue and is based on historical and forecasted trends in the volume of product failures during the warranty period and the cost to repair or replace the equipment. It is possible that the Company’s underlying assumptions will not reflect the actual experience and in that case, future adjustments will be made to the recorded warranty obligation. |
Advertising Costs | Advertising Costs Advertising costs are expensed as incurred and included in selling, general and administrative expense. |
Net Loss per Share | Net Loss per Share Basic net loss per share is calculated by dividing the net loss by the weighted-average number of shares of common stock outstanding during the period without consideration for common stock equivalents. Diluted net loss per share is the same as basic net loss per common share, since the effects of potentially dilutive securities are anti-dilutive for all periods presented due to the net loss position. Dilutive common stock equivalents are comprised of unexercised stock options outstanding, unvested restricted stock awards (RSAs) |
Recently Issued and Adopted Accounting Pronouncements | Recently Issued and Adopted Accounting Pronouncements From time to time, new accounting pronouncements are issued by the Financial Accounting Standards Board, or FASB, or other standard setting bodies that are adopted by the Company as of the specified effective date. Unless otherwise discussed, the Company believes that the impact of recently issued standards that are not yet effective will not have a material impact on its financial position or results of operations upon adoption. Recently Adopted Accounting Pronouncements In July 2015, FASB issued ASU 2015-11, Simplifying the Measurement of Inventory (Topic 330) . This update applies to companies that measure inventory on a first in, first out, or FIFO, or average cost basis. Under this update, companies are to measure their inventory at the lower of cost and net realizable value. Net realizable value is the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion. The amendments in this update are effective for annual reporting periods, and interim periods within those periods, beginning after December 15, 2016 with earlier application permitted as of the beginning of an interim or annual reporting period. The adoption, effective January 1, 2017, did not have a material impact on the Company’s consolidated financial statements. In March 2016, the FASB issued ASU 2016-09, Improvements to Employee Share-Based Payment Accounting Compensation - Stock Compensation (Topic 718) , which involves several aspects of the accounting for stock-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. This new guidance requires all income tax effects of awards to be recognized as income tax expense or benefit in the income statement when the awards vest or are settled, as opposed to additional paid-in-capital where it is currently recorded. It also allows an employer to repurchase more of an employee’s shares than it could for tax withholding purposes without triggering liability accounting. All tax-related cash flows resulting from stock-based payments are reported as operating activities on the statement of cash flows. The guidance also allows a Company to make a policy election to either estimate the number of awards that are expected to vest or account for forfeitures as they occur. This new standard is effective for annual reporting periods, and interim periods within those periods, beginning after December 15, 2016, with early adoption permitted. The Company adopted this guidance effective January 1, 2017. As the Company does not recognize any tax benefit related to employee stock-based compensation expense as a result of the full valuation allowance on its deferred tax assets nor does it currently grant share grants nor withhold any taxes upon option exercises, the adoption did not result in an impact to its consolidated financial statements. In addition, the Company elected to keep its policy consistent for the application of an estimated forfeiture rate. Recently Issued Accounting Pronouncements not yet adopted In August 2015, the FASB issued Accounting Standards Update, or ASU, 2015-14, Revenue from Contracts with Customers (ASC 606) , which defers the effective date of ASU 2014-09 by one year. ASC 606 outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance, including industry-specific guidance. ASC 606 provides a five step approach for analyzing revenue transactions: identify the contract with the customer, identify the performance obligations in the contract, determine the transaction price, allocate the transaction price to the performance obligations, and recognize revenue when (or as) performance obligations are satisfied. ASC 606 becomes effective for the Company in the first quarter of fiscal year 2018. ASC 606 also provides companies with two implementation methods: (a) full retrospective adoption, meaning the standard is applied to all periods presented, or (b) modified retrospective adoption, meaning the cumulative effect of applying the new standard is recognized as an adjustment to the opening retained earnings balance. The Company will adopt ASC 606 on January 1, 2018 using the modified retrospective method. The Company has substantially completed its assessment of the impact of ASC 606 for its current standard customer contracts. Based on the assessment, the Company has identified similar performance obligations under ASC 606 as compared with deliverables and separate unit of accounts previously identified under ASC 605. The majority of the Company's revenue relates to product sales for which revenue is recognized at a point in time (typically at shipping point). Based on its analysis, the Company does not expect revenue for its current standard contracts to be affected materially in any period due to the adoption of ASC 606. ASC 606 is principle based and interpretation of those principles may vary from company to company based on their unique circumstances. It is possible that interpretation, industry practice, and guidance may evolve as companies and the accounting profession work to implement this new standard. While substantially complete, the Company is still in the process of finalizing its evaluation of the effect of ASC 606 on the Company’s disclosures. The Company also is finalizing its evaluation of the standard on its multiple element arrangements and customer incentive programs including its swallow guarantee, patient registry and partnership programs. As the Company completes its evaluation of this new standard, new information may arise that could change the Company’s current understanding of the impact to revenue and expense recognized. Additionally, the Company will continue to monitor industry activities and any additional guidance provided by regulators, standards setters, or the accounting profession and adjust the Company’s assessment and implementation plans accordingly. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) . Under this new guidance, at the commencement date, lessees will be required to recognize (i) a lease liability, which is a lessee’s obligation to make lease payments arising from a lease, measured on a discounted basis and (ii) a right-of-use asset, which is an asset that represents the lessee’s right to use, or control the use of, a specified asset for the lease term. This guidance is not applicable for leases with a term of 12 months or less. The new standard is effective for annual reporting periods, and interim periods within those periods, beginning after December 15, 2018, with early adoption permitted. The Company is currently evaluating the impact that this standard will have on its consolidated financial statements. In May 2017, the FASB issued ASU 2017-09, Compensation-Stock Compensation (Topic 718). This guidance was created to provide clarity and reduce both (1) diversity in practice and (2) cost and complexity when applying the guidance in Topic 718 to a change in the terms or conditions of a share-based payment award. ASU 2017-09 provides guidance about which changes to the terms or conditions of a share-based payment award require an entity to apply modification accounting under Topic 718. The amendments in ASU 2017-09 should be applied prospectively to an award modified on or after the adoption date. This guidance is effective for fiscal years, and interim periods within those years, beginning after December 15, 2017, with early adoption permitted. The Company does not anticipate that the adoption of ASU 2017-09 will have a material impact on its consolidated financial statements unless there are significant changes to the Company's outstanding share based payment awards at which time the Company would assess the impact of the standard. |
Summary of Significant Accoun22
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Schedules of Concentration of Risk by Risk Factor | The following table summarizes certain financial data for the customers who accounted for 10.0% or more of sales and accounts receivable. Year ended December 31, 2017 2016 2015 Single largest customer:* Revenue 16.7 % N/A N/A Accounts receivable 17.4 % N/A N/A Revenue, related party N/A 100.0 % 94.7 % Accounts receivable, related party N/A 100.0 % 100.0 % * The Company's largest customer for the years ended December 31, 2017, 2016 and 2015 was Bader Sultan & Bros. Co W.L.L., or Bader. Prior to January 1, 2017, Bader was considered a related party for accounting purposes. |
Estimated Useful Lives of Property, Plant and Equipment | The useful lives of the property and equipment are as follows: Computer hardware 3 years Computer software 3 years Leasehold improvements Shorter of lease term or useful life Furniture and fixtures 5 years Scientific equipment 5 years Property and equipment, net consist of the following (in thousands): December 31, 2017 2016 Computer hardware $ 397 $ 261 Computer software 392 73 Leasehold improvements 238 193 Furniture and fixtures 160 118 Scientific equipment 1,354 854 Construction in progress 220 302 2,761 1,801 Less: accumulated depreciation and amortization (1,415 ) (1,084 ) Total $ 1,346 $ 717 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
Schedule of Assets and Liabilities Measured at Fair Value on Recurring Basis | Assets and liabilities measured at fair value on a recurring basis at December 31, 2017 and 2016 are as follows (in thousands): Fair value measurements at reporting date using Balance as of December 31, 2017 Quoted prices Significant Significant Assets: Cash Equivalents Money Market Funds 12,115 12,115 — — U.S. Treasury bonds 8,993 8,993 — — Short-term investments: U.S. Treasury bonds $ 23,292 $ 23,292 $ — $ — Total assets $ 44,400 $ 44,400 $ — $ — Fair value measurements at reporting date using Balance as of December 31, 2016 Quoted prices in active Significant (Level 2) Significant (Level 3) Assets: Short-term investments: U.S. Treasury bonds $ 2,500 $ 2,500 — — Total assets $ 2,500 $ 2,500 $ — $ — |
Net Loss per Share (Tables)
Net Loss per Share (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Earnings Per Share [Abstract] | |
Schedule of Computation of Basic and Diluted Net Loss per Share of Common Stock | The following table sets forth the computation of basic and diluted net loss per share of common stock (in thousands, except shares and per share data): Year ended December 31, 2017 2016 2015 Net loss $ (34,765 ) $ (20,467 ) $ (15,557 ) Weighted-average shares used in computing net loss per share 16,717,106 4,221,893 573,181 Net loss per share, basic and diluted $ (2.08 ) $ (4.85 ) $ (27.14 ) |
Schedule of Anti-Dilutive Common Stock Equivalents Excluded from the Calculation of Diluted Net Loss Per Share | The following table sets forth the outstanding potentially dilutive securities determined using the treasury stock and if-converted methods that have been excluded in the calculation of diluted net loss per share because to do so would be anti-dilutive (in common stock equivalent shares): Year ended December 31, 2017 2016 2015 Convertible preferred stock, on an as-converted basis — — 8,443,994 Stock options to purchase common stock 886,526 830,145 — Unvested restricted common stock awards 103,706 — — Total 990,232 830,145 8,443,994 |
Balance Sheet Details (Tables)
Balance Sheet Details (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Balance Sheet Related Disclosures [Abstract] | |
Schedule of Short-term Investments | Short-term investments consist of the following (in thousands): Maturity Amortized Gross Gross Estimated At December 31, 2017: U.S. Treasury bonds 1 year or less $ 23,295 $ — $ (3 ) $ 23,292 Maturity Amortized Gross Gross Estimated At December 31, 2016: U.S. Treasury bonds 1 year or less $ 2,501 $ — $ (1 ) $ 2,500 |
Schedule of Inventory | Inventory consists of the following (in thousands): December 31, 2017 2016 Raw materials $ 1,046 $ 379 Work in process 127 239 Finished goods 245 209 Total $ 1,418 $ 827 |
Schedule of Other Current Assets | Other current assets consist of the following (in thousands): December 31, 2017 2016 Prepaid assets $ 1,514 $ 962 Interest receivable 85 5 Other assets 115 277 Total $ 1,714 $ 1,244 |
Schedule of Property and Equipment, Net | The useful lives of the property and equipment are as follows: Computer hardware 3 years Computer software 3 years Leasehold improvements Shorter of lease term or useful life Furniture and fixtures 5 years Scientific equipment 5 years Property and equipment, net consist of the following (in thousands): December 31, 2017 2016 Computer hardware $ 397 $ 261 Computer software 392 73 Leasehold improvements 238 193 Furniture and fixtures 160 118 Scientific equipment 1,354 854 Construction in progress 220 302 2,761 1,801 Less: accumulated depreciation and amortization (1,415 ) (1,084 ) Total $ 1,346 $ 717 |
Schedule of Other Current Liabilities | Other current liabilities consist of the following (in thousands): December 31, 2017 2016 Accrued legal and professional fees 289 613 Accrued customer incentives 558 — Accrued sales and other taxes 167 — Accrued marketing expenses 60 122 Other accrued expenses 699 644 Total $ 1,773 $ 1,379 |
Term Loan (Tables)
Term Loan (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Debt Disclosure [Abstract] | |
Summary of Total Long-term Loan and Unamortized Debt Discount | Total long-term loan and unamortized debt discount balances are as follows (in thousands): December 31, 2017 Face value $ 10,000 Less: debt issuance costs (78 ) Total long-term loan $ 9,922 Less: current portion of long-term loan (1,958 ) Total long-term loan, excluding current portion $ 7,964 |
Schedule of Future Principal Payments Due | As of December 31, 2017 , future principal payments due under the December 2016 Loan Agreement are as follows (in thousands): Year ended: December 31, 2018 2,000 December 31, 2019 4,000 December 31, 2020 4,000 Total future principal payments due under the December 2016 Loan Agreement $ 10,000 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Summary of Non-cash Compensation to Employees and Nonemployees in Condensed Consolidated Statements of Operations and Comprehensive Loss | The Company recorded total non-cash compensation, including non-cash compensation to employees and nonemployees in the consolidated statements of operations and comprehensive loss as follows (in thousands): Year ended December 31, 2017 2016 2015 Cost of revenue $ 115 $ 46 $ 31 Research and development 406 115 47 Selling, general and administrative 2,720 402 129 Total $ 3,241 $ 563 $ 207 |
Summary of Fair Value of Stock Options for Employees was Estimated using Black-Scholes Option Pricing Model | The fair value of each option granted was estimated on the date of grant using the Black-Scholes option pricing model using the following assumptions: Year ended December 31, 2017 2016 2015 Assumed risk-free interest rate (1) 1.81%- 2.23% 1.40% -1.53% 1.57% Assumed volatility (2) 55.11%-58.97% 52.91% - 53.49% 61.53% Expected option life (3) 6.1 years 6.1 years 6.1 years Expected dividend yield (4) —% —% —% (1) The risk-free interest rate was determined based on the U.S. Treasury yield in effect at the time of the grant for zero-coupon U.S. Treasury notes with remaining terms similar to the expected term of the options. (2) The volatility was determined based on analysis of the volatility of a peer group of publicly traded companies as the Company's stock has not traded publicly for a significant time and the Company has limited company specific historical volatility. The peer group was determined considering factors such as stage of development, risk profile, enterprise value and position within the industry. (3) The expected option life was determined using the “simplified method” for estimating the expected option life, which is the average of the weighted-average vesting period and contractual term of the option. (4) The expected dividend yield was zero as the Company has not historically issued dividends and does not expect to do so in the foreseeable future. |
Summary of Stock Option Transactions | The following table summarizes stock option transactions for the Plan for the year ended December 31, 2017 (in thousands, except shares and per share data): Number of Weighted- Weighted- (in years) Aggregate Outstanding at December 31, 2016 2,225,684 $ 5.00 Options granted 931,343 9.62 Options exercised (84,433 ) 2.17 Options canceled (93,309 ) 6.25 Outstanding at December 31, 2017 2,979,285 6.49 8.1 5,244 Vested and expected to vest at December 31, 2017 2,718,966 $ 6.36 8.1 5,024 Vested and exercisable at December 31, 2017 1,042,618 $ 4.36 6.7 3,253 |
Summary of Restricted Stock Awards | The following table summarizes restricted stock award transactions for the year ended December 31, 2017 : Number of awards Weighted- average grant date fair value Outstanding at December 31, 2016 — $ — Awards granted 414,208 9.99 Awards vested (1,208 ) 8.86 Awards canceled — — Outstanding at December 31, 2017 413,000 $ 9.98 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Equity [Abstract] | |
Schedule of Outstanding Warrants | The following equity classified warrants were outstanding as of December 31, 2017 : Shares Weighted- Issuance date Expiration date Common stock warrants (1) 24,224 $ 6.1918 Feb 24, 2012 Feb 24, 2019 (1) Prior to conversion upon IPO, the remaining warrants were for the purchase of Series C preferred stock. |
Schedule of Common Stock Reserved for Future Issuance | Common stock reserved for future issuance consists of the following at December 31, 2017 : Stock options issued and outstanding 2,979,285 Authorized for future option and award grants 895,231 Authorized for future issuance under ESPP 316,473 Warrants outstanding 24,224 Total 4,215,213 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Tax Provision (Benefit) | The income tax provision (benefit) consists of the following (in thousands): Year ended December 31, 2017 2016 2015 Current: Federal $ — $ — $ — State 10 2 2 Foreign — — (15 ) Total current provision 10 2 (13 ) Deferred: Federal — — — State — — — Foreign — — — Total deferred provision — — — Income tax provision (benefit) $ 10 $ 2 $ (13 ) |
Schedule of Effective Income Tax Rate Reconciliation | The difference between income tax benefits and income taxes computed using the U.S. federal income tax rate as of December 31, 2017, 2016 and 2015 are as follows (in thousands): Year ended December 31, 2017 2016 2015 Federal provision (benefit) At statutory rates $ (11,820 ) $ (6,959 ) $ (5,290 ) State taxes, net of federal — — 1 Change in valuation allowance 11,830 6,961 5,291 Foreign operations — — (15 ) Income tax provision (benefit) $ 10 $ 2 $ (13 ) |
Schedule of Deferred Tax Assets | Significant components of the Company’s deferred tax assets are as shown below: Year ended December 31, 2017 2016 Deferred tax assets: Net operating losses $ 20,795 $ 20,801 Tax credits 3,747 2,773 Capitalized research and development costs 3,720 5,279 Other 1,808 259 Total gross deferred tax assets 30,070 29,112 Less valuation allowance (30,070 ) (29,112 ) Total deferred tax assets $ — $ — |
Summary of Unrecognized Tax Benefits | A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows Year ended December 31, 2017 2016 Balance at January 1 $ — $ — Additions based on tax positions related to current year 449 — Additions based on tax positions related to prior years 1,679 — Balance at December 31 $ 2,128 $ — |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Future Noncancelable Minimum Payment Obligations Under Operating Lease | Future noncancelable minimum payment obligations under the operating lease were as follows as of December 31, 2017 (in thousands): Year ended: December 31, 2018 397 December 31, 2019 100 Total future payments due under building lease $ 497 |
Selected Quarterly Financial 31
Selected Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Information | The following is a summary of the quarterly results of the Company for the years ended December 31, 2017 and 2016 (unaudited, in thousands, except for per share data) : Three Months Ended Year Ended 2017: March 31, June 30, September 30, December 31, December 31, Revenue $ 1,472 $ 1,963 $ 2,787 $ 3,692 $ 9,914 Gross profit 649 973 1,473 1,990 5,085 Loss from operations (7,691 ) (7,640 ) (9,138 ) (9,922 ) (34,391 ) Net loss $ (7,745 ) $ (7,730 ) $ (9,170 ) $ (10,120 ) $ (34,765 ) Per common share: Net loss per share, basic and diluted $ (0.47 ) $ (0.46 ) $ (0.55 ) $ (0.60 ) $ (2.08 ) Three Months Ended Year Ended 2016: March 31, June 30, September 30, December 31, December 31, Revenue $ 1,069 $ 779 $ 773 $ 772 $ 3,393 Gross profit 447 107 129 (99 ) 584 Loss from operations (3,444 ) (4,075 ) (4,452 ) (7,534 ) (19,505 ) Net loss $ (3,581 ) $ (4,131 ) $ (5,260 ) $ (7,495 ) $ (20,467 ) Per common share: Net loss per share, basic and diluted $ (6.22 ) $ (7.15 ) $ (5.46 ) $ (0.51 ) $ (4.85 ) |
Organization and Basis of Pre32
Organization and Basis of Presentation - Additional Information (Detail) $ / shares in Units, $ in Thousands | Oct. 12, 2016USD ($)$ / sharesshares | Oct. 11, 2016shares | Sep. 30, 2016 | Dec. 31, 2017USD ($)shares | Sep. 30, 2017USD ($) | Jun. 30, 2017USD ($) | Mar. 31, 2017USD ($) | Dec. 31, 2016USD ($)shares | Sep. 30, 2016USD ($) | Jun. 30, 2016USD ($) | Mar. 31, 2016USD ($) | Dec. 31, 2017USD ($)segmentshares | Dec. 31, 2016USD ($)shares | Dec. 31, 2015USD ($) |
Basis Of Presentation And Organization [Line Items] | ||||||||||||||
Number of operating segments | segment | 1 | |||||||||||||
Total revenue | $ | $ 3,692 | $ 2,787 | $ 1,963 | $ 1,472 | $ 772 | $ 773 | $ 779 | $ 1,069 | $ 9,914 | $ 3,393 | $ 4,039 | |||
Proceeds from initial public offering, net of issuance costs | $ | $ 0 | $ 67,233 | $ 0 | |||||||||||
Number of convertible preferred stock converted into one share of common stock (in shares) | 10,360,419 | |||||||||||||
Common stock shares reserved for issuance (in shares) | 4,215,213 | 4,215,213 | ||||||||||||
Common stock, shares authorized (in shares) | 300,000,000 | 300,000,000 | 300,000,000 | 300,000,000 | 300,000,000 | |||||||||
Preferred stock, shares authorized (in shares) | 10,000,000 | |||||||||||||
Reverse stock split ratio | 0.3448 | |||||||||||||
Accumulated deficit | $ | $ 111,374 | $ 76,609 | $ 111,374 | $ 76,609 | ||||||||||
Common stock | ||||||||||||||
Basis Of Presentation And Organization [Line Items] | ||||||||||||||
Issuance for common stock for cash (in shares) | 5,000,000 | |||||||||||||
Proceeds from initial public offering, net of issuance costs | $ | $ 67,200 | |||||||||||||
Number of shares of common stocks issuable upon exercise of warrants (in shares) | 24,224 | |||||||||||||
IPO | ||||||||||||||
Basis Of Presentation And Organization [Line Items] | ||||||||||||||
Issuance for common stock for cash (in shares) | 5,000,000 | |||||||||||||
Common stock, price per share (in dollars per share) | $ / shares | $ 15 | |||||||||||||
IPO | Common stock | ||||||||||||||
Basis Of Presentation And Organization [Line Items] | ||||||||||||||
Number of convertible preferred stock converted into one share of common stock (in shares) | 1 | 1 | ||||||||||||
Obalon Mexico DE RL CV | ||||||||||||||
Basis Of Presentation And Organization [Line Items] | ||||||||||||||
Ownership percentage in subsidiary | 99.00% | 99.00% | ||||||||||||
Pacific Western Bank | ||||||||||||||
Basis Of Presentation And Organization [Line Items] | ||||||||||||||
Number of warrants exercised (in shares) | 36,562 | |||||||||||||
Common stock issued upon exercise of warrants (in shares) | 16,558 | |||||||||||||
2008 Plan | ||||||||||||||
Basis Of Presentation And Organization [Line Items] | ||||||||||||||
Common stock shares reserved for issuance (in shares) | 223,371 | |||||||||||||
Series A Convertible Preferred Stock | ||||||||||||||
Basis Of Presentation And Organization [Line Items] | ||||||||||||||
Common stock, shares outstanding (in shares) | 0 | 0 | ||||||||||||
Series B Convertible Preferred Stock | ||||||||||||||
Basis Of Presentation And Organization [Line Items] | ||||||||||||||
Common stock, shares outstanding (in shares) | 0 | 0 | ||||||||||||
Series C Convertible Preferred Stock | ||||||||||||||
Basis Of Presentation And Organization [Line Items] | ||||||||||||||
Common stock, shares outstanding (in shares) | 0 | 0 | ||||||||||||
Warrants to purchase convertible preferred stock converted into warrants to purchase common stock (in shares) | 24,224 | |||||||||||||
Series C-1 Convertible Preferred Stock | ||||||||||||||
Basis Of Presentation And Organization [Line Items] | ||||||||||||||
Common stock, shares outstanding (in shares) | 0 | 0 | ||||||||||||
Series D Convertible Preferred Stock | ||||||||||||||
Basis Of Presentation And Organization [Line Items] | ||||||||||||||
Common stock, shares outstanding (in shares) | 0 | 0 | ||||||||||||
Number of warrants exercised (in shares) | 24,550 | |||||||||||||
Common stock issued upon exercise of warrants (in shares) | 12,217 | |||||||||||||
Series E Convertible Preferred Stock | ||||||||||||||
Basis Of Presentation And Organization [Line Items] | ||||||||||||||
Common stock, shares outstanding (in shares) | 0 | 0 |
Summary of Significant Accoun33
Summary of Significant Accounting Policies - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Accounting Policies [Abstract] | |||
Unrealized losses on short term investments | $ 0 | $ 0 | $ 0 |
Realized gain (loss) on short term investments | 0 | 0 | 0 |
Allowance for doubtful accounts | 200,000 | 0 | |
Impairment of long-lived assets | 0 | 0 | 0 |
Product warranty expense | 0 | 0 | 0 |
Advertising expense | $ 2,900,000 | $ 900,000 | $ 300,000 |
Summary of Significant Accoun34
Summary of Significant Accounting Policies - Concentration Risk (Details) - Customer Concentration Risk - Single Largest Customer | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Revenue | |||
Concentration Risk [Line Items] | |||
Concentration risk percentage | 16.70% | ||
Accounts receivable | |||
Concentration Risk [Line Items] | |||
Concentration risk percentage | 17.40% | ||
Affiliated Entity | Revenue | |||
Concentration Risk [Line Items] | |||
Concentration risk percentage | 100.00% | 94.70% | |
Affiliated Entity | Accounts receivable | |||
Concentration Risk [Line Items] | |||
Concentration risk percentage | 100.00% | 100.00% |
Summary of Significant Accoun35
Summary of Significant Accounting Policies - Estimated Useful Lives (Details) | 12 Months Ended |
Dec. 31, 2017 | |
Computer hardware | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 3 years |
Computer software | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 3 years |
Furniture and fixtures | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 5 years |
Scientific equipment | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 5 years |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule of Assets and Liabilities Measured at Fair Value on Recurring Basis (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Total assets measured at fair value | $ 44,400 | $ 2,500 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Total assets measured at fair value | 44,400 | 2,500 |
Significant Other Observable Inputs (Level 2) | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Total assets measured at fair value | 0 | 0 |
Significant Unobservable Inputs (Level 3) | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Total assets measured at fair value | 0 | 0 |
Cash Equivalents | Money Market Funds | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Total assets measured at fair value | 12,115 | |
Cash Equivalents | U.S. Treasury Bonds | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Total assets measured at fair value | 8,993 | |
Cash Equivalents | Quoted Prices in Active Markets for Identical Assets (Level 1) | Money Market Funds | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Total assets measured at fair value | 12,115 | |
Cash Equivalents | Quoted Prices in Active Markets for Identical Assets (Level 1) | U.S. Treasury Bonds | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Total assets measured at fair value | 8,993 | |
Cash Equivalents | Significant Other Observable Inputs (Level 2) | Money Market Funds | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Total assets measured at fair value | 0 | |
Cash Equivalents | Significant Other Observable Inputs (Level 2) | U.S. Treasury Bonds | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Total assets measured at fair value | 0 | |
Cash Equivalents | Significant Unobservable Inputs (Level 3) | Money Market Funds | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Total assets measured at fair value | 0 | |
Cash Equivalents | Significant Unobservable Inputs (Level 3) | U.S. Treasury Bonds | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Total assets measured at fair value | 0 | |
Short-term Investments | U.S. Treasury Bonds | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Total assets measured at fair value | 23,292 | 2,500 |
Short-term Investments | Quoted Prices in Active Markets for Identical Assets (Level 1) | U.S. Treasury Bonds | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Total assets measured at fair value | 23,292 | 2,500 |
Short-term Investments | Significant Other Observable Inputs (Level 2) | U.S. Treasury Bonds | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Total assets measured at fair value | 0 | 0 |
Short-term Investments | Significant Unobservable Inputs (Level 3) | U.S. Treasury Bonds | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Total assets measured at fair value | $ 0 | $ 0 |
Net Loss per Share - Schedule o
Net Loss per Share - Schedule of Computation of Basic and Diluted Net Loss Per Share of Common Stock (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Earnings Per Share [Abstract] | |||||||||||
Net loss | $ (10,120) | $ (9,170) | $ (7,730) | $ (7,745) | $ (7,495) | $ (5,260) | $ (4,131) | $ (3,581) | $ (34,765) | $ (20,467) | $ (15,557) |
Weighted-average shares used in computing net loss per share (in shares) | 16,717,106 | 4,221,893 | 573,181 | ||||||||
Net loss per share, basic and diluted (in dollars per share) | $ (0.60) | $ (0.55) | $ (0.46) | $ (0.47) | $ (0.51) | $ (5.46) | $ (7.15) | $ (6.22) | $ (2.08) | $ (4.85) | $ (27.14) |
Net Loss per Share - Schedule38
Net Loss per Share - Schedule of Anti-Dilutive Common Stock Equivalents Excluded from the Calculation of Diluted Net Loss Per Share (Details) - shares | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | |||
Anti-dilutive securities excluded from computation of diluted net loss per share (in shares) | 990,232 | 830,145 | 8,443,994 |
Convertible Preferred Stock | |||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | |||
Anti-dilutive securities excluded from computation of diluted net loss per share (in shares) | 0 | 0 | 8,443,994 |
Stock Options to Purchase Common Stock | |||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | |||
Anti-dilutive securities excluded from computation of diluted net loss per share (in shares) | 886,526 | 830,145 | 0 |
Unvested restricted common stock awards | |||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | |||
Anti-dilutive securities excluded from computation of diluted net loss per share (in shares) | 103,706 | 0 | 0 |
Balance Sheet Details - Additio
Balance Sheet Details - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Balance Sheet Related Disclosures [Abstract] | |||
Depreciation and amortization expense | $ 330 | $ 192 | $ 167 |
Balance Sheet Details - Schedul
Balance Sheet Details - Schedule of Short-term Investments (Details) - U.S. Treasury Bonds - Maturity in 1 Year or Less - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized cost | $ 23,295 | $ 2,501 |
Gross unrealized gains | 0 | 0 |
Gross unrealized losses | (3) | (1) |
Estimated fair value | $ 23,292 | $ 2,500 |
Balance Sheet Details - Sched41
Balance Sheet Details - Schedule of Inventory (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Balance Sheet Related Disclosures [Abstract] | ||
Raw materials | $ 1,046 | $ 379 |
Work in process | 127 | 239 |
Finished goods | 245 | 209 |
Total | $ 1,418 | $ 827 |
Balance Sheet Details - Sched42
Balance Sheet Details - Schedule of Other Current Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Balance Sheet Related Disclosures [Abstract] | ||
Prepaid assets | $ 1,514 | $ 962 |
Interest receivable | 85 | 5 |
Other assets | 115 | 277 |
Total | $ 1,714 | $ 1,244 |
Balance Sheet Details - Sched43
Balance Sheet Details - Schedule of Property and Equipment, Net (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 2,761 | $ 1,801 |
Less: accumulated depreciation and amortization | (1,415) | (1,084) |
Property and equipment, net | 1,346 | 717 |
Computer hardware | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 397 | 261 |
Computer software | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 392 | 73 |
Leasehold Improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 238 | 193 |
Furniture and fixtures | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 160 | 118 |
Scientific equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 1,354 | 854 |
Construction in progress | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 220 | $ 302 |
Balance Sheet Details - Sched44
Balance Sheet Details - Schedule of Other Current Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Balance Sheet Related Disclosures [Abstract] | ||
Accrued legal and professional fees | $ 289 | $ 613 |
Accrued customer incentives | 558 | 0 |
Accrued sales and other taxes | 167 | 0 |
Accrued marketing expenses | 60 | 122 |
Other accrued expenses | 699 | 644 |
Total | $ 1,773 | $ 1,379 |
Term Loan - Additional Informat
Term Loan - Additional Information (Details) | 12 Months Ended | |
Dec. 31, 2017USD ($)trancheinstallment | Jun. 30, 2013USD ($) | |
Debt Instrument [Line Items] | ||
Outstanding balance | $ 9,922,000 | |
2013 Loan Agreement | ||
Debt Instrument [Line Items] | ||
Term loan, maximum borrowings | $ 3,000,000 | |
December 2016 Loan Agreement | ||
Debt Instrument [Line Items] | ||
Outstanding balance | $ 10,000,000 | |
Number of tranches | tranche | 2 | |
Term loan, fixed interest rate | 6.00% | |
Number of installments | installment | 30 | |
December 2016 Loan Agreement | Prime Rate | ||
Debt Instrument [Line Items] | ||
Term loan, variable interest rate | 1.50% | |
Term loan, fixed interest rate | 4.50% | |
December 2016 Loan Agreement | First Tranche | ||
Debt Instrument [Line Items] | ||
Term loan, maximum borrowings | $ 10,000,000 | |
December 2016 Loan Agreement | Second Tranche | ||
Debt Instrument [Line Items] | ||
Term loan, maximum borrowings | $ 5,000,000 | |
Maximum | December 2016 Loan Agreement | ||
Debt Instrument [Line Items] | ||
Term loan, fixed interest rate | 5.00% |
Term Loan - Summary of Total Lo
Term Loan - Summary of Total Long-term Loan and Unamortized Debt Discount (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Debt Disclosure [Abstract] | ||
Face value | $ 10,000 | |
Less: debt issuance costs | (78) | |
Total future principal payments due | 9,922 | |
Less: current portion of long-term loan | (1,958) | $ 0 |
Long-term loan, excluding current potion | $ 7,964 | $ 9,881 |
Term Loan - Schedule of Future
Term Loan - Schedule of Future Principal Payments Due (Details) $ in Thousands | Dec. 31, 2017USD ($) |
Long-term Debt, Fiscal Year Maturity [Abstract] | |
Total future principal payments due | $ 9,922 |
December 2016 Loan Agreement | |
Long-term Debt, Fiscal Year Maturity [Abstract] | |
December 31, 2018 | 2,000 |
December 31, 2019 | 4,000 |
December 31, 2020 | 4,000 |
Total future principal payments due | $ 10,000 |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Details) - USD ($) $ / shares in Units, $ in Millions | Oct. 05, 2016 | Oct. 04, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Common stock shares reserved for issuance (in shares) | 4,215,213 | ||||
Unrecognized compensation expense | $ 8.2 | ||||
Weighted average compensation cost recognition period | 2 years 3 months 18 days | ||||
Weighted-average fair value of options granted (in dollars per share) | $ 5.31 | ||||
Intrinsic value of options exercised in period | $ 0.6 | $ 1.2 | $ 0 | ||
Stock options early exercised (in shares) | 0 | 252,453 | 0 | ||
Stock options remaining, unvested (in shares) | 122,047 | ||||
Stock options early exercised liability | $ 0.1 | ||||
Equity Incentive Plan | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Common stock shares reserved for issuance (in shares) | 223,371 | ||||
2016 Equity Incentive Plan | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Common stock shares reserved for issuance (in shares) | 2,200,000 | 895,231 | |||
Shares reserved for issuance, increase percentage of common stock outstanding and common stock equivalents | 4.00% | ||||
Award vesting percentage | 25.00% | ||||
Vesting period | 3 years | ||||
2016 Employee Stock Purchase Plan | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Common stock shares reserved for issuance (in shares) | 180,000 | 316,473 | |||
Shares reserved for issuance, increase percentage of common stock outstanding and common stock equivalents | 1.00% | ||||
Share-based compensation expense | $ 0.2 | $ 0 | |||
Number of years shares reserved for issuance increases automatically | 10 years | ||||
Shares issued in period (in shares) | 53,758 | ||||
Proceeds from sale of common stock upon exercise of stock options | $ 0.4 | ||||
Unvested restricted common stock awards | 2016 Equity Incentive Plan | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Award vesting percentage | 100.00% | ||||
Vesting period | 4 years | ||||
Share-based compensation expense | $ 0.3 | ||||
Weighted average compensation cost recognition period | 3 years 8 months 12 days |
Stock-Based Compensation - Summ
Stock-Based Compensation - Summary of Non-cash Compensation to Employees and Nonemployees in Condensed Consolidated Statements of Operations and Comprehensive Loss (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | |||
Stock-based compensation | $ 3,241 | $ 563 | $ 207 |
Cost of Revenue | |||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | |||
Stock-based compensation | 115 | 46 | 31 |
Research and Development | |||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | |||
Stock-based compensation | 406 | 115 | 47 |
Selling, General and Administrative | |||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | |||
Stock-based compensation | $ 2,720 | $ 402 | $ 129 |
Stock-Based Compensation - Su50
Stock-Based Compensation - Summary of Fair Value of Stock Options for Employees was Estimated using Black-Scholes Option Pricing Model (Details) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Assumed risk-free interest rate | 1.57% | ||
Assumed volatility | 61.53% | ||
Expected option life | 6 years 1 month 6 days | 6 years 1 month 6 days | 6 years 1 month 6 days |
Expected dividend yield | 0.00% | 0.00% | 0.00% |
Minimum | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Assumed risk-free interest rate | 1.81% | 1.40% | |
Assumed volatility | 55.11% | 52.91% | |
Maximum | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Assumed risk-free interest rate | 2.23% | 1.53% | |
Assumed volatility | 58.97% | 53.49% |
Stock-Based Compensation - Su51
Stock-Based Compensation - Summary of Stock Option Transactions (Details) $ / shares in Units, $ in Thousands | 12 Months Ended |
Dec. 31, 2017USD ($)$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |
Number of shares outstanding, beginning balance (in shares) | shares | 2,225,684 |
Number of shares, options granted (in shares) | shares | 931,343 |
Number of shares, options exercised (in shares) | shares | (84,433) |
Number of shares, options canceled (in shares) | shares | (93,309) |
Number of shares outstanding, ending balance (in shares) | shares | 2,979,285 |
Number of shares, vested and expected to vest at end of period (in shares) | shares | 2,718,966 |
Number of shares, vested and exercisable at period end (in shares) | shares | 1,042,618 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract] | |
Weighted average exercise price outstanding, beginning balance (in dollars per share) | $ / shares | $ 5 |
Weighted average exercise price, options granted (in dollars per share) | $ / shares | 9.62 |
Weighted average exercise price, options exercised (in dollars per share) | $ / shares | 2.17 |
Weighted average exercise price, options canceled (in dollars per share) | $ / shares | 6.25 |
Weighted average exercise price outstanding, ending balance (in dollars per share) | $ / shares | 6.49 |
Weighted average exercise price, vested and expected to vest (in dollars per share) | $ / shares | 6.36 |
Weighted average exercise price, vested and exercisable (in dollars per share) | $ / shares | $ 4.36 |
Weighted average contractual life outstanding, ending balance | 8 years 1 month |
Weighted average contractual life, vested and expected to vest | 8 years 1 month |
Weighted average contractual life, vested and exercisable | 6 years 8 months |
Aggregate intrinsic value outstanding | $ | $ 5,244 |
Aggregate intrinsic value, vested and expected to vest | $ | 5,024 |
Aggregate intrinsic value, vested and exercisable | $ | $ 3,253 |
Stock-Based Compensation - Su52
Stock-Based Compensation - Summary of Restricted Stock Awards (Details) - $ / shares | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Number of awards | ||
Outstanding, beginning balance | 0 | |
Awards granted | 414,208 | |
Awards vested | (1,208) | |
Awards canceled | 0 | |
Outstanding, ending balance | 413,000 | |
Weighted- average grant date fair value | ||
Outstanding balance (in dollars per share) | $ 9.98 | $ 0 |
Awards granted (in dollars per share) | 9.99 | |
Awards vested (in dollars per share) | 8.86 | |
Awards canceled (in dollars per share) | $ 0 |
Stockholders' Equity - Schedule
Stockholders' Equity - Schedule of Outstanding Warrants (Details) - Series C Convertible Preferred Stock - Feb 24, 2012 Warrant Issuance | Dec. 31, 2017$ / sharesshares |
Class Of Warrant Or Right [Line Items] | |
Shares | shares | 24,224 |
Weighted-average exercise price (in dollars per share) | $ / shares | $ 6.1918 |
Stockholders' Equity - Schedu54
Stockholders' Equity - Schedule of Common Stock Reserved for Future Issuance (Details) - shares | Dec. 31, 2017 | Oct. 05, 2016 | Oct. 04, 2016 |
Class Of Stock [Line Items] | |||
Total common stock (in shares) | 4,215,213 | ||
Warrants Outstanding | |||
Class Of Stock [Line Items] | |||
Total common stock (in shares) | 24,224 | ||
2016 Equity Incentive Plan | |||
Class Of Stock [Line Items] | |||
Total common stock (in shares) | 895,231 | 2,200,000 | |
2016 Employee Stock Purchase Plan | |||
Class Of Stock [Line Items] | |||
Total common stock (in shares) | 316,473 | 180,000 | |
Stock options issued and outstanding | |||
Class Of Stock [Line Items] | |||
Total common stock (in shares) | 2,979,285 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Operating Loss Carryforwards [Line Items] | |||
Valuation allowance | $ 30,070,000 | $ 29,112,000 | |
Unrecognized tax benefits | 2,128,000 | $ 0 | $ 0 |
Unrecognized tax benefits that would impact effective tax rate | 0 | ||
Deduction in deferred tax asset due to Tax Cuts and Job Act | 13,300,000 | ||
Federal | |||
Operating Loss Carryforwards [Line Items] | |||
Operating loss carryforwards | 88,800,000 | ||
Federal | Research Tax Credit Carryforward | |||
Operating Loss Carryforwards [Line Items] | |||
Tax credit carryforward amount | 2,100,000 | ||
State | |||
Operating Loss Carryforwards [Line Items] | |||
Operating loss carryforwards | 56,800,000 | ||
State | Research Tax Credit Carryforward | California | |||
Operating Loss Carryforwards [Line Items] | |||
Tax credit carryforward amount | $ 2,000,000 |
Income Taxes - Income Tax Provi
Income Taxes - Income Tax Provision (Benefit) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Current: | |||
Federal | $ 0 | $ 0 | $ 0 |
State | 10 | 2 | 2 |
Foreign | 0 | 0 | (15) |
Total current provision | 10 | 2 | (13) |
Deferred: | |||
Federal | 0 | 0 | 0 |
State | 0 | 0 | 0 |
Foreign | 0 | 0 | 0 |
Total deferred provision | 0 | 0 | 0 |
Income tax provision (benefit) | $ 10 | $ 2 | $ (13) |
Income Taxes - Effective Income
Income Taxes - Effective Income Tax Rate Reconciliation (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Federal provision (benefit) | |||
At statutory rates | $ (11,820) | $ (6,959) | $ (5,290) |
State taxes, net of federal | 0 | 0 | 1 |
Change in valuation allowance | 11,830 | 6,961 | 5,291 |
Foreign operations | 0 | 0 | (15) |
Income tax provision (benefit) | $ 10 | $ 2 | $ (13) |
Income Taxes - Deferred Tax Ass
Income Taxes - Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Deferred tax assets: | ||
Net operating losses | $ 20,795 | $ 20,801 |
Tax credits | 3,747 | 2,773 |
Capitalized research and development costs | 3,720 | 5,279 |
Other | 1,808 | 259 |
Total gross deferred tax assets | 30,070 | 29,112 |
Less valuation allowance | (30,070) | (29,112) |
Total deferred tax assets | $ 0 | $ 0 |
Income Taxes - Roll Forward of
Income Taxes - Roll Forward of Unrecognized Tax Benefits (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | ||
Balance at January 1 | $ 0 | $ 0 |
Additions based on tax positions related to current year | 449,000 | 0 |
Additions based on tax positions related to prior years | 1,679,000 | 0 |
Balance at December 31 | $ 2,128,000 | $ 0 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Details) $ in Thousands | Oct. 30, 2017USD ($)shares | Jun. 22, 2017patent | Aug. 31, 2017USD ($)shares | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) |
Commitments and Contingencies Disclosure [Abstract] | ||||||
Operating lease rent expense | $ 400 | $ 300 | $ 200 | |||
Loss Contingencies [Line Items] | ||||||
Fair value of stock issued for legal settlements | $ 1,606 | $ 0 | $ 0 | |||
Polyzen Inc. | Settled Litigation [Member] | ||||||
Loss Contingencies [Line Items] | ||||||
Patents allegedly infringed upon | patent | 3 | |||||
Issuance of stock (in shares) | shares | 150,000 | |||||
Fair value of stock issued for legal settlements | $ 1,400 | |||||
Phagia Technology Inc. | Settled Litigation [Member] | ||||||
Loss Contingencies [Line Items] | ||||||
Issuance of stock (in shares) | shares | 25,000 | |||||
Fair value of stock issued for legal settlements | $ 200 |
Commitments and Contingencies61
Commitments and Contingencies - Schedule of Future Noncancelable Minimum Payment Obligations Under Operating Lease (Details) $ in Thousands | Dec. 31, 2017USD ($) |
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | |
December 31, 2018 | $ 397 |
December 31, 2019 | 100 |
Total future payments due under building lease | $ 497 |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Details) - Customer Concentration Risk - Bader - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Revenue | |||
Related Party Transaction [Line Items] | |||
Sales to related party | $ 1.7 | $ 3.4 | $ 3.8 |
Revenue from related parties as percentage of total revenue | 16.70% | 100.00% | 94.70% |
Accounts Receivable Balance | |||
Related Party Transaction [Line Items] | |||
Sales to related party | $ 0.8 |
Selected Quarterly Financial 63
Selected Quarterly Financial Data (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Revenue | $ 3,692 | $ 2,787 | $ 1,963 | $ 1,472 | $ 772 | $ 773 | $ 779 | $ 1,069 | $ 9,914 | $ 3,393 | $ 4,039 |
Gross profit | 1,990 | 1,473 | 973 | 649 | (99) | 129 | 107 | 447 | 5,085 | 584 | 1,536 |
Loss from operations | (9,922) | (9,138) | (7,640) | (7,691) | (7,534) | (4,452) | (4,075) | (3,444) | (34,391) | (19,505) | (14,933) |
Net loss | $ (10,120) | $ (9,170) | $ (7,730) | $ (7,745) | $ (7,495) | $ (5,260) | $ (4,131) | $ (3,581) | $ (34,765) | $ (20,467) | $ (15,557) |
Net loss per share, basic and diluted (in dollars per share) | $ (0.60) | $ (0.55) | $ (0.46) | $ (0.47) | $ (0.51) | $ (5.46) | $ (7.15) | $ (6.22) | $ (2.08) | $ (4.85) | $ (27.14) |
Subsequent Events - Additional
Subsequent Events - Additional Information (Details) - shares | 2 Months Ended | 12 Months Ended |
Mar. 02, 2018 | Dec. 31, 2017 | |
Subsequent Event [Line Items] | ||
Number of shares, options granted (in shares) | 931,343 | |
Subsequent Event | Stock Options to Purchase Common Stock | ||
Subsequent Event [Line Items] | ||
Number of shares, options granted (in shares) | 900,000 |