Document and Entity Information
Document and Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Feb. 08, 2019 | Jun. 29, 2018 | |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2018 | ||
Document Fiscal Year Focus | 2,018 | ||
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 | Non-accelerated Filer | ||
Entity Small Business | true | ||
Entity Emerging Growth Company | true | ||
Entity Ex Transition Period | true | ||
Entity Common Stock, Shares Outstanding | 23,502,824 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Shell Company | false | ||
Entity Public Float | $ 19.8 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Current assets: | ||
Cash and cash equivalents | $ 21,187 | $ 21,108 |
Short-term investments | 2,548 | 23,292 |
Accounts receivable, net | 870 | 4,223 |
Inventory | 1,580 | 1,418 |
Other current assets | 2,462 | 1,714 |
Total current assets | 28,647 | 51,755 |
Property and equipment, net | 1,739 | 1,346 |
Total assets | 30,386 | 53,101 |
Current liabilities: | ||
Accounts payable | 1,159 | 1,276 |
Accrued compensation | 3,805 | 4,494 |
Deferred revenue | 352 | 510 |
Other current liabilities | 1,985 | 1,773 |
Current portion of long-term loan | 9,930 | 1,958 |
Total current liabilities | 17,231 | 10,011 |
Deferred rent | 48 | 13 |
Long-term loan, excluding current portion | 0 | 7,964 |
Total long-term liabilities | 48 | 7,977 |
Total liabilities | 17,279 | 17,988 |
Commitments and contingencies (See Note 10) | ||
Stockholders’ equity: | ||
Common stock, $0.001 par value; 100,000,000 and 300,000,000 shares authorized at December 31, 2018 and December 31, 2017; 23,513,292 and 17,500,604 shares issued and outstanding at December 31, 2018 and December 31, 2017, respectively | 23 | 18 |
Additional paid-in capital | 161,838 | 146,474 |
Accumulated other comprehensive loss | 0 | (5) |
Accumulated deficit | (148,754) | (111,374) |
Total stockholders’ equity | 13,107 | 35,113 |
Total liabilities and stockholders’ equity | $ 30,386 | $ 53,101 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Dec. 31, 2018 | Dec. 31, 2017 |
Statement of Financial Position [Abstract] | ||
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized (in shares) | 100,000,000 | 300,000,000 |
Common stock, shares issued (in shares) | 23,513,292 | 17,500,604 |
Common stock, shares outstanding (in shares) | 23,513,292 | 17,500,604 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Revenue: | ||
Revenue | $ 9,101 | $ 9,914 |
Total revenue | 9,101 | 9,914 |
Cost of revenue | 5,423 | 4,829 |
Gross profit | 3,678 | 5,085 |
Operating expenses: | ||
Research and development | 10,697 | 10,647 |
Selling, general and administrative | 29,946 | 28,829 |
Total operating expenses | 40,643 | 39,476 |
Loss from operations | (36,965) | (34,391) |
Interest expense, net | (226) | (135) |
Other expense | (189) | (239) |
Net loss | (37,380) | (34,765) |
Other comprehensive income (loss) | 5 | (4) |
Net loss and comprehensive loss | $ (37,375) | $ (34,769) |
Net loss per share, basic and diluted (in dollars per share) | $ (1.96) | $ (2.08) |
Weighted-average common shares outstanding, basic and diluted (in shares) | 19,036,693 | 16,717,106 |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (DEFICIT) - USD ($) $ in Thousands | Total | Common stock | Additional paid-in capital | Accumulated other comprehensive (loss) income | Accumulated deficit |
Beginning Balance at Dec. 31, 2016 | $ 64,305 | $ 17 | $ 140,898 | $ (1) | $ (76,609) |
Beginning Balance (in shares) at Dec. 31, 2016 | 16,773,205 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Stock-based compensation | 3,241 | 3,241 | |||
Issuance of common stock for cash upon exercise of stock options | 184 | 184 | |||
Issuance of common stock for cash upon exercise of stock options (in shares) | 84,433 | ||||
Vesting of early exercised stock options | 116 | 116 | |||
Issuance of common stock under ESPP | 429 | 429 | |||
Issuance of common stock under ESPP (in shares) | 53,758 | ||||
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 | 1 | $ 1 | |||
Issuance of restricted stock awards (in shares) | 414,208 | ||||
Unrealized gain (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 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Stock-based compensation | $ 4,693 | 4,693 | |||
Issuance of common stock for cash upon exercise of stock options | $ 53 | 53 | |||
Issuance of common stock for cash upon exercise of stock options (in shares) | 45,805 | 45,805 | |||
Vesting of early exercised stock options | $ 57 | 57 | |||
Issuance of common stock under ESPP | 148 | 148 | |||
Issuance of common stock under ESPP (in shares) | 45,255 | ||||
Issuance of common stock, net of issuance costs | 10,418 | $ 5 | 10,413 | ||
Issuance of common stock, net of issuance costs (in shares) | 5,722,686 | ||||
Issuance of restricted stock awards, net of cancellations (in shares) | 198,942 | ||||
Unrealized gain (loss) on short term investments | 5 | 5 | |||
Net loss | (37,380) | (37,380) | |||
Ending Balance at Dec. 31, 2018 | $ 13,107 | $ 23 | $ 161,838 | $ 0 | $ (148,754) |
Ending Balance (in shares) at Dec. 31, 2018 | 23,513,292 | 23,513,292 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Operating activities: | ||
Net loss | $ (37,380) | $ (34,765) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation | 581 | 330 |
Stock-based compensation | 4,693 | 3,241 |
Fair value of stock issued for legal settlements | 0 | 1,606 |
Loss on disposal of fixed assets | 107 | 0 |
Amortization of investment premium, net | (50) | 18 |
Amortization of debt discount | 37 | 42 |
Change in operating assets and liabilities: | ||
Accounts receivable, net | 3,353 | (4,223) |
Accounts receivable from related party | 0 | 515 |
Inventory | (162) | (591) |
Other current assets | 98 | (470) |
Accounts payable | 70 | 624 |
Accrued compensation | (689) | 1,997 |
Deferred revenue | (158) | 389 |
Other current and long-term liabilities | 68 | 663 |
Net cash used in operating activities | (29,432) | (30,624) |
Investing activities: | ||
Purchases of short-term investments | (9,102) | (94,613) |
Maturities of short-term investments | 29,901 | 73,800 |
Purchase of property and equipment | (1,282) | (1,043) |
Net cash provided by (used in) investing activities | 19,517 | (21,856) |
Financing activities: | ||
Proceeds from issuance of common stock, net of issuance costs | 9,823 | 0 |
Fees paid in connection with fifth amendment to loan and security agreement | (30) | 0 |
Proceeds from common stock issued under employee stock purchase plan | 148 | 429 |
Proceeds from sale of common stock upon exercise of stock options | 53 | 184 |
Net cash provided by financing activities | 9,994 | 613 |
Net increase (decrease) in cash and cash equivalents | 79 | (51,867) |
Cash and cash equivalents at beginning of period | 21,108 | 72,975 |
Cash and cash equivalents at end of period | 21,187 | 21,108 |
Supplemental cash flow information: | ||
Interest paid | 642 | 562 |
Income taxes paid | 7 | 2 |
Property and equipment in accounts payable | 201 | 83 |
Fair value of commitment shares issued | 595 | 0 |
Unpaid issuance costs | $ 250 | $ 0 |
Organization and Basis of Prese
Organization and Basis of Presentation | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Organization and Basis of Presentation | Organization and Basis of Presentation The Company 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 U.S. Food and Drug Administration, or FDA, approved swallowable, gas-filled intragastric balloon designed to provide progressive and sustained weight loss in obese patients. Basis of Presentation The consolidated financial statements include the accounts of Obalon Therapeutics, Inc., and its wholly owned subsidiary, Obalon Therapeutics, LLC, which was dissolved in 2017 and had no activity during the years ended December 31, 2018 and 2017. 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. Liquidity As of December 31, 2018 , the Company has devoted a substantial portion of its efforts to product development, raising capital, and building infrastructure, and, since January 2017, U.S. commercialization. The Company has incurred operating losses and has experienced negative cash flows from operations since its inception. In July 2012, the Company realized initial revenue from its planned principal operations. The Company recognized total revenue of $9.1 million and $9.9 million for the years ended December 31, 2018 and 2017 , respectively. However, the Company has not yet established an ongoing source of revenues sufficient to cover its operating costs and has funded its activities to date almost exclusively from debt and equity financings. 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, 2018 , its accumulated deficit was $148.8 million . Since inception, the Company has financed its operations primarily through private placements of preferred securities, the sale of common stock through its initial public offering (IPO), and a subsequent private placement, and, to a lesser extent, debt financing arrangements. The Company expects to continue to incur net losses for the foreseeable future as it continues to build its sales and marketing organization, and continues research and development efforts. As a result, there is substantial doubt about the Company's ability to continue as a going concern for the twelve months following the issuance date of the consolidated financial statements for the year ended December 31, 2018. 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 plans to use proceeds from the Equity Distribution Agreement and the Lincoln Park Purchase Agreement to the extent needed to fund operations. If the Company is unable to execute against its strategic plan, the Company may be required to delay the development of one or more of their products, delay clinical trials necessary to market their products, or delay establishment or expansion of sales and marketing capabilities. See Note 8 for further detail regarding the 2018 equity financing transactions. Private Placement In August 2018, the Company sold 5,494,506 shares of its common stock pursuant to a securities purchase agreement (the "Purchase Agreement") for aggregate gross proceeds of $10.0 million in connection with a private placement financing transaction (the "Private Placement"). Equity Distribution Agreement In December 2018, the Company entered into an equity distribution agreement (the "Equity Distribution Agreement"), with Canaccord Genuity LLC ("Canaccord"), pursuant to which the Company may, from time to time, sell shares of its common stock, par value $0.001 per share (the "ATM Shares"), having an aggregate offering price of up to $10 million through Canaccord, as its sales agent. Lincoln Park Purchase Agreement In December 2018, the Company entered into a purchase agreement (the "Lincoln Park Purchase Agreement"), and a registration rights agreement, (the "Registration Rights Agreement"), with Lincoln Park Capital Fund, LLC ("Lincoln Park"), pursuant to which Lincoln Park has committed to purchase up to $20.0 million of the Company's common stock, $0.001 par value per share (the "Common Stock"). Subsequent to December 31, 2018, the Company drew down $10.0 million on the second tranche under its loan and security agreement with Pacific Western Bank for a total outstanding amount of $20.0 million . |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2018 | |
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 and 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, 2018 and 2017, unrealized gains and 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, 2018 and 2017. 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, short-term investments, accounts receivable, 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 are 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 $0.7 million and $0.2 million at December 31, 2018 and 2017, 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 physicians and institutions in the United States and one international distributor. 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, 2018 2017 Single largest customer:* Revenue 48.4 % 16.7 % Accounts receivable — % 17.4 % Second largest customer: Revenue 14.1 % 1.4 % Accounts receivable 0.7 % — % * The Company's largest customer for the years ended December 31, 2018 and 2017 was its Middle East distributor. There were no other international sales aside from sales to this distributor for the years ended December 31, 2018 and 2017. 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, 2018 and 2017. 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, in accordance with ASC 606, when control of its products is transferred to its customers in an amount that reflects the consideration it expects to receive in exchange for those products. The Company's revenue recognition process involves identifying the contract with a customer, determining the performance obligations in the contract, determining the transaction price, allocating the transaction price to the distinct performance obligations in the contract, and recognizing revenue as performance obligations are satisfied. A performance obligation is considered distinct from other obligations in a contract when it provides a benefit to the customer either on its own or together with other resources that are readily available to the customer and is separately identified in the contract. The Company considers a performance obligation satisfied once it has transferred control of a good or service to the customer, meaning the customer has the ability to use and obtain the benefit of the good or service. The Company recognizes revenue for satisfied performance obligations only when it determines there are no uncertainties regarding payment terms or transfer of control. Revenue is generated from sales of the Obalon Balloon System to physicians and institutions in the United States and to a distributor in the Middle East. The Company recognizes revenue upon shipment of its product as the Company's standard contract terms dictate that control transfers to the customer upon shipment of its product. Invoicing typically occurs upon shipment and the time period between invoicing and when payment is due is not significant. Sales taxes collected are excluded from revenues. Shipping charges billed to customers are included in revenue and related shipping cost is included in cost of revenue. The Company's revenue contracts do not provide for maintenance. Commissions are considered incremental costs to obtain a contract with a customer and paid to salespeople when contracts are executed. Commissions are recognized as a selling expense when incurred as the amortization period is one year or less. The components of the Obalon Balloon System are typically packaged in a kit and shipped to the customer at the same time, satisfying the majority of performance obligations in the contract. The Company recognizes revenue for any unsatisfied, distinct performance obligations, such as undelivered components, as they are satisfied based on the standalone selling price of each performance obligation. The Company estimates the standalone selling price of each performance obligation by estimating the expected cost of satisfying that performance obligation plus an appropriate margin. When the Company enters into contracts with multiple performance obligations, such obligations are generally satisfied within a short time frame of approximately three to six months after the contract execution date. The Company does not disclose the value of the unsatisfied performance obligations within its contracts. The Company offers a swallow guarantee program in the United States where it may provide replacement balloons to customers when their patients are unsuccessful in swallowing an Obalon balloon, subject to certain requirements and restrictions. The Company considers the replacement balloons provided under this program as an additional performance obligation in the contract and defers revenue relating to the replacement balloons based on an expected swallow failure rate and then recognizes revenue when replacement balloons are provided. The Company recognizes revenue at the net sales price, which reflects the consideration the Company believes it is most likely to receive. The net sales price includes estimates of variable consideration for customer incentives and returns. The Company reserves for product returns as a reduction to revenue in the period when the related revenue is recognized. The Company estimates its product returns based on historical return rates and specifically known events. 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. Customer incentives that provide discounts to the customer on purchases of current or future product are recorded as a reduction of revenue in the period the related product revenue is recognized. Any consideration payable to a customer is presumed as a reduction to revenue unless the Company can demonstrate that the consideration provided to the customer is in exchange for a distinct good or service. Actual amounts of consideration ultimately received may differ from the Company’s estimates. If actual results vary from the Company’s estimates, the Company would adjust these estimates, which would impact net product revenue and results of operations in the period such variances become known. 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, 2018 and 2017 was $0.1 million and immaterial, respectively. Advertising Costs Advertising costs are expensed as incurred and included in selling, general and administrative expense. Advertising costs for the years ended December 31, 2018 and 2017 were approximately $3.8 million and $2.9 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 due to the net loss position of all periods presented. Potentially dilutive common stock equivalents are comprised of warrants, if material, unvested restricted stock awards (RSAs), and unexercised stock options outstanding under the Company's equity plan. 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 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. ASC 606 is based on the principle that revenue should be recognized in an amount that reflects the consideration to which a company expects to be entitled in exchange for the transfer of promised goods or services. The Company adopted ASC 606 on January 1, 2018 using the modified retrospective implementation method. The Company noted the following in its assessment of the impact of ASC 606 on its financial statements issued prior to fiscal year 2018: • The majority of the Company's sales contracts fall under its standard sales agreement whereby control transfers to the customer upon delivery of the product to the named common carrier at the Company's location, satisfying the performance obligations of the contract. As such, revenue is recognized upon shipment under ASC 606 in the same way that it was recognized under the previous revenue guidance. The Company's contracts did not meet the criteria under ASC 606 for revenue recognition over time. • Customer incentives existing prior to December 31, 2017 related to discounts that were recognized as a reduction to revenue in the same period when the related revenue was recognized or situations where the Company deferred revenue related to undelivered elements of the contract and then recognized the revenue as the undelivered elements were delivered. The Company concluded that the revenue recognition for these customer incentives under ASC 606 was the same as under the previous revenue guidance. • Prior to December 31, 2017, the Company presented the reserve for expected sales returns as a decrease to its accounts receivable balance. Under ASC 606, the Company accounts for expected sales returns as a refund liability and presents the reserve for sales returns as a current liability in its consolidated financial statements with a corresponding asset if the returned item is expected to be re-sold. The adoption of ASC 606 resulted in an immaterial transition adjustment related to this reserve. This reclassification did not have an impact on the results of operations. The reserve for sales returns was $0.2 million at December 31, 2018. Overall, the cumulative effect of applying the new revenue standard to all incomplete contracts as of January 1, 2018 was not material and, therefore, did not result in an adjustment to retained earnings. Although there was no material impact compared to the previous accounting guidance to the consolidated financial statements for the year ended December 31, 2018 due to the adoption of ASC 606, the adoption of this standard resulted in increased disclosure requirements. In May 2017, the FASB issued ASU 2017-09, Compensation-Stock Compensation, 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 provided 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 were effective for fiscal and interim reporting periods in fiscal years beginning after December 15, 2017. The amendments in ASU 2017-09 should be applied prospectively to an award modified on or after the adoption date. The Company adopted ASU 2017-09 on January 1, 2018 and the adoption did not have a material impact on the Company's consolidated financial statements or related financial statement disclosure. In June 2018, the FASB issued ASU 2018-07, Compensation - Stock Compensation (Topic 718), Improvements to Nonemployee Share-Based Payment Accounting. This ASU expands the scope of Topic 718 to include share based payment transactions for acquiring goods and services from nonemployees. An entity should apply the requirements of Topic 718 to nonemployee awards except for specific guidance on inputs to an option pricing model and the attribution of cost. This ASU is effective for the Company on January 1, 2019 with early adoption permitted, although no earlier than the adoption date of Topic 606. The Company elected to early adopt this ASU in the quarter ended June 30, 2018, which did not have a material impact on its consolidated financial statements. Recently Issued Accounting Pronouncements not yet adopted 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. In July 2018, the FASB issued ASU 2018-10, Codification Improvements to Topic 842 (Leases) , which provides narrow amendments to clarify how to apply certain aspects of the new lease standard. The new standard is effective for annual reporting periods, and interim periods within those periods, beginning after December 15, 2018, with early adoption permitted. In July 2018, the FASB issued ASU No. 2018-11, Leases Topic (842): Targeted Improvements. This ASU provides companies an option to apply the transition provisions of the new lease standard at its adoption date instead of at the earliest comparative period presented in its financial statements. The Company will elect the optional method to account for the impact of the adoption with a cumulative-effect adjustment in the period of adoption and will not restate prior periods. The Company expects to elect certain practical expedients permitted under the transition guidance. The Company is in the process of completing its evaluation of the effect that the adoption of this ASU will have on its financial statements. The Company currently believes the most significant change will be related to the recognition of a new right-of-use asset and lease liability at January 1, 2019 on the Company's consolidated balance sheet for its real estate operating lease. In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820); Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement. This guidance removes certain disclosure requirements related to the fair value hierarchy, modifies existing disclosure requirements related to measurement uncertainty and adds new disclosure requirements. The new disclosure requirements include disclosing the changes in unrealized gains and losses for the period included in other comprehensive income for recurring Level 3 fair value measurements held at the end of the reporting period and the range and weighted-average of significant unobservable inputs used to develop Level 3 fair value measurements. Certain disclosures required by this guidance must be applied on a retrospective basis and others on a prospective basis. The guidance will be effective for fiscal years beginning after December 15, 2019, although early adoption is permitted. The Company is currently evaluating this guidance to determine the impact, if any, it may have on its consolidated financial statements. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2018 | |
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, 2018 and 2017 are as follows (in thousands): Fair value measurements at reporting date using Balance as of December 31, 2018 Quoted prices Significant Significant Assets: Cash Equivalents Money Market Funds 21,187 21,187 — — Short-term investments: U.S. Treasury bonds $ 2,548 $ 2,548 $ — $ — Total assets $ 23,735 $ 23,735 $ — $ — Fair value measurements at reporting date using Balance as of December 31, 2017 Quoted prices in active Significant (Level 2) Significant (Level 3) 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 $ — $ — The Company’s investments in Level 1 assets are valued based on publicly available quoted market prices for identical securities as of December 31, 2018 and 2017 . Instruments Not Recorded at Fair Value on a Recurring Basis The estimated fair value of the Company's long-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 Company's long-term loan approximates the current fair value as the interest rate and other terms are that which are currently available to the Company. |
Net Loss per Share
Net Loss per Share | 12 Months Ended |
Dec. 31, 2018 | |
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, 2018 2017 Net loss $ (37,380 ) $ (34,765 ) Weighted-average common shares outstanding, basic and diluted 19,036,693 16,717,106 Net loss per share, basic and diluted $ (1.96 ) $ (2.08 ) The following table sets forth the outstanding potentially dilutive securities determined using the treasury stock method 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, 2018 2017 Stock options to purchase common stock 383,515 886,526 Total 383,515 886,526 |
Balance Sheet Details
Balance Sheet Details | 12 Months Ended |
Dec. 31, 2018 | |
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, 2018: U.S. Treasury bonds 1 year or less $ 2,548 $ — $ — $ 2,548 Maturity Amortized Gross Gross Estimated At December 31, 2017: U.S. Treasury bonds 1 year or less $ 23,295 $ — $ (3 ) $ 23,292 Inventory consists of the following (in thousands): December 31, 2018 2017 Raw materials $ 1,090 $ 1,046 Work in process 288 127 Finished goods 202 245 Total $ 1,580 $ 1,418 Other current assets consist of the following (in thousands): December 31, 2018 2017 Prepaid expenses $ 2,329 $ 1,514 Interest receivable 12 85 Other assets 121 115 Total $ 2,462 $ 1,714 Property and equipment, net consist of the following (in thousands): December 31, 2018 2017 Computer hardware $ 410 $ 397 Computer software 274 392 Leasehold improvements 405 238 Furniture and fixtures 178 160 Scientific equipment 1,921 1,354 Construction in progress, or CIP 530 220 3,718 2,761 Less: accumulated depreciation (1,979 ) (1,415 ) Total $ 1,739 $ 1,346 Depreciation expense for the years ended December 31, 2018 and 2017 was $ 0.6 million and $0.3 million for each period, respectively. Other current liabilities consist of the following (in thousands): December 31, 2018 2017 Accrued legal and professional fees 624 289 Accrued customer incentives 467 558 Accrued sales and other taxes 132 167 Accrued marketing expenses — 60 Other accrued expenses 762 699 Total $ 1,985 $ 1,773 |
Term Loan
Term Loan | 12 Months Ended |
Dec. 31, 2018 | |
Debt Disclosure [Abstract] | |
Term Loan | Term Loan In June 2013, the Company entered into a $3.0 million loan and security agreement (the "Loan Agreement") with Square 1 Bank (predecessor-in-interest to Pacific Western Bank), which it subsequently amended in October 2014, September 2016, December 2016, June 2017 and July 2018. In July 2018, the Company executed the Fifth Amendment to the Loan and Security Agreement (the "Loan Amendment") with Pacific Western Bank, which increased the loan capacity to $20 million from $10 million . The loan capacity of $20 million consists of two tranches as follows: a first tranche consisting of $10.0 million funded on July 10, 2018, of which the full $10.0 million was required to settle the existing debt with Pacific Western Bank on a net settlement basis (pursuant to its original terms); and a second tranche consisting of an additional $10.0 million which may be drawn at any time prior to July 9, 2019. As of December 31, 2018 , the Company had $10.0 million in outstanding borrowings under the Loan Agreement. During the first quarter of 2019, the Company subsequently drew down on the remaining $10.0 million tranche. See Note 12 for further detail. The outstanding debt has a variable annual interest rate equal to the greater of the prime rate plus 1.5% per annum, or 5.0% , and matures in July 2022. As the prime rate was 5.5% as of December 31, 2018, the interest rate on the debt was 7.0% as of December 31, 2018. The Loan Amendment provides for an interest-only period through July 9, 2019 followed by 36 equal monthly installments of principal and interest with the first principal payment due on August 9, 2019. The Loan Agreement may be prepaid in full at any time with no additional cost. The present value of the future cash flows under the Loan Amendment terms did not exceed the present value of the future cash flows under the previous Loan Amendment terms by more than 10% . As such, the Company treated this amendment as a modification and recorded the associated immaterial facility fee as a discount to the Loam Amendment. The loan fees paid and the remaining balance of debt issuance costs and debt discount on the previous loan agreement held with Pacific Western Bank are 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. In addition, the Company is required to deposit into such accounts a portion or all of the net proceeds from its next equity offering, which the Company satisfied in connection with the completion of the private placement in August 2018. These, and other covenants under the Loan Agreement, may make it difficult to operate the Company's business. As of December 31, 2018, the Company was in compliance with all covenants under the loan and security agreement. However, the Company does not believe that its current available cash, cash equivalents and short-term investments will be sufficient to fund its planned expenditures and meet its obligations for at least 12 months following the financial statement issuance date. If the Company is unable to raise additional capital and the cash balance in its accounts with its lender falls below the amount of outstanding debt, the Company would be in default. If any event of default is triggered, including this minimum cash balance covenant, and the Company does not obtain a waiver from the lender, the lender can, among other things, accelerate the entire outstanding amount of the debt, which could significantly deplete its cash resources, cause it to raise additional capital at unfavorable terms, require it to sell portions of the business or result in it becoming insolvent. Due to the Company's current cash flow position, the substantial doubt about its ability to continue as a going concern, and the requirement under the Loan Agreement to maintain accounts with the bank at an aggregate balance in an amount equal to or greater than the total outstanding debt under the Loan Agreement, the Company reclassified the long-term portion of the term loan to current. The Company will continue to evaluate the debt classification on a quarterly basis and evaluate for reclassification in the future should its financial condition improve. Total long-term loan and unamortized debt discount balances are as follows (in thousands): December 31, 2018 Face value $ 10,000 Less: unamortized debt issuance costs (70 ) Total term loan $ 9,930 Less: current portion of long-term loan (9,930 ) Total long-term loan, excluding current portion $ — As of December 31, 2018 , future principal payments due under the Loan Agreement are as follows (in thousands): Year ended: December 31, 2019 1,389 December 31, 2020 3,333 December 31, 2021 3,333 December 31, 2022 1,945 Total future principal payments due under the Loan Agreement $ 10,000 |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Dec. 31, 2018 | |
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 1,956,562 shares of common stock for issuance under 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, 2018, 1,089,885 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, 2018 2017 Cost of revenue $ 96 $ 115 Research and development 1,141 406 Selling, general and administrative 3,456 2,720 Total $ 4,693 $ 3,241 Unrecognized stock-based compensation expense at December 31, 2018 was approximately $5.6 million , which is expected to be recognized over a weighted-average term of 1.8 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, 2018 2017 Assumed risk-free interest rate (1) 2.31%- 3.10% 1.81%- 2.23% Assumed volatility (2) 53.95%-55.44% 55.11%-58.97% Expected option life (3) 5.0-6.1 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, 2018 (in thousands, except shares and per share data): Number of Weighted- Weighted- (in years) Aggregate Outstanding at December 31, 2017 2,979,285 $ 6.49 Options granted 1,640,589 4.78 Options exercised (45,805 ) 1.16 Options canceled (1,214,021 ) 6.22 Outstanding at December 31, 2018 3,360,048 5.83 8.0 $ 535 Vested and expected to vest at December 31, 2018 3,174,081 $ 5.81 8.0 $ 531 Vested and exercisable at December 31, 2018 1,634,506 $ 5.99 7.2 $ 483 The weighted-average fair value of options granted during the year ended December 31, 2018 was $2.54 . The intrinsic value of options exercised for the years ended December 31, 2018 and 2017 was $0.1 million and $0.6 million , 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 years ended December 31, 2018 and 2017. For prior early exercised options, 67,938 shares 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, 2018 . 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, 2018 : Number of awards Weighted- average grant date fair value Outstanding at December 31, 2017 413,000 $ 9.98 Awards granted 425,942 4.10 Awards vested — — Awards canceled (227,000 ) 10.00 Outstanding at December 31, 2018 611,942 $ 5.89 The Company's current restricted stock awards vest 100% at various terms from 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 $1.1 million and $0.3 million for the years ended December 31, 2018 and 2017, respectively, and is included in total stock-based compensation expense previously disclosed. This expense is expected to be recognized over a weighted-average period of 1.5 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 reserved 521,514 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 years ended December 31, 2018 and 2017, the company issued 45,255 and 53,758 shares of common stock pursuant to the ESPP, respectively, and received proceeds of $0.1 million and $0.4 million , respectively. Stock compensation expense related to the ESPP was $0.2 million for the years ended December 31, 2018 and 2017, and is included in total stock compensation expense disclosed above. |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Dec. 31, 2018 | |
Equity [Abstract] | |
Stockholders' Equity | Stockholders’ Equity In June 2018, the Company amended its certificate of incorporation to reduce the authorized number of shares of common stock from 300,000,000 to 100,000,000 . Private Placement In August 2018, the Company sold 5,494,506 shares of its common stock pursuant to a securities purchase agreement (the "Purchase Agreement") for aggregate gross proceeds of $10.0 million in connection with a private placement financing transaction (the "Private Placement"). Investors in the private placement included certain unaffiliated investors, members of the Company's management team and the board of directors and certain of their affiliated funds, including Domain Associates and InterWest Partners. The Company incurred $0.2 million of legal, accounting, registration and other professional fees related to the private placement. These amounts were charged against the proceeds upon completion of the private placement. Equity Distribution Agreement On December 27, 2018, the Company entered into the Equity Distribution Agreement, with Canaccord, pursuant to which the Company may, from time to time, sell shares of its common stock, having an aggregate offering price of up to $10.0 million through Canaccord, as the Company's sales agent. The Company will pay Canaccord a commission of 3.0% of the gross proceeds from the sales of common stock sold pursuant to the terms of the Equity Distribution Agreement. The Equity Distribution Agreement also contains, among other things, customary representations, warranties and covenants by the Company and indemnification obligations of the Company and Canaccord as well as certain termination rights for both the Company and Canaccord. The Company has no obligation to sell any ATM Shares under the Equity Distribution Agreement, and may at any time suspend solicitation and offers under the Equity Distribution Agreement. Until the aggregate market value of the Company's common stock held by non-affiliates, or public float, is greater than $75.0 million, the amount the Company can raise through primary public offerings of securities in any twelve-month period using shelf registration statements, including sales under the Company's ATM program, is limited to an aggregate of one-third of its public float. The Company incurred $0.2 million of legal, accounting and other professional fees related to the Equity Distribution Agreement. These amounts are included as deferred charges within other current assets on the Company's balance sheet as of December 31, 2018 and will be charged against paid-in capital upon future proceeds from the sale of common stock under the Equity Distribution Agreement. As of December 31, 2018, the Company has not sold any shares under the Equity Distribution Agreement. Lincoln Park Purchase Agreement On December 27, 2018, the Company entered into the Lincoln Park Purchase Agreement and a registration rights agreement, or the Registration Rights Agreement, with Lincoln Park, pursuant to which the Company has the right, but not the obligation, to sell to Lincoln Park, and Lincoln Park is obligated to purchase up to $20.0 million of the Company's common stock, over the 36 -month period commencing on the effectiveness of the registration statement related to the shares, which the Company expects to occur on or about the filing of its Annual Report on Form 10-K for the year ended December 31, 2018. Under the Lincoln Park Purchase Agreement, on any business day selected by the Company on which the closing price of its common stock is not less than $0.50 per share (subject to “standard anti-dilution adjustments”), the Company may direct Lincoln Park to purchase up to 50,000 shares of common stock on such business day (each, a “Regular Purchase”), provided, however, that (i) the Regular Purchase may be increased to up to 100,000 shares, provided that the closing sale price of the common stock is not below $2.00 on the purchase date (subject to standard anti-dilution adjustments) (ii) the Regular Purchase may be increased to up to 125,000 shares, provided that the closing sale price of the common stock is not below $3.00 on the purchase date (subject to standard anti-dilution adjustments) and (iii) the Regular Purchase may be increased to up to 150,000 shares, provided that the closing sale price of the common stock is not below $4.00 on the purchase date (subject to standard anti-dilution adjustments). In each case, Lincoln Park’s maximum commitment in any single Regular Purchase may not exceed $1,000,000 . The purchase price per share for each such Regular Purchase will be based off of prevailing market prices of the Company's common stock immediately preceding the time of sale without any fixed discount. In addition to Regular Purchases, the Company may also direct Lincoln Park to purchase other amounts as accelerated purchases or as additional accelerated purchases if the closing sale price of the common stock exceeds certain threshold prices as set forth in the Lincoln Park Purchase Agreement. Depending on the prevailing market price of our common stock, the Company may not be able to sell shares to Lincoln Park for the maximum $20.0 million over the term of the Lincoln Park Purchase Agreement. For example, under the rules of the Nasdaq Capital Market, in no event may the Company issue more than 19.99% of its shares outstanding (which is approximately 4,654,694 shares based on 23,285,112 shares outstanding prior to the signing of the Lincoln Park Purchase Agreement) under the Lincoln Park Purchase Agreement unless the Company obtains stockholder approval or an exception pursuant to the rules of the Nasdaq Capital Market is obtained to issue more than 19.99%. This limitation will not apply if, at any time the exchange cap is reached and at all times thereafter, the average price paid for all shares issued and sold under the Lincoln Park Purchase Agreement is equal to or greater than $2.244 , which was the average closing price of the Company's common stock for the five trading days ending on the trading day immediately preceding the date, plus an incremental amount of $0.1157 for the commitment shares the Company issued to Lincoln Park. The Company is not required or permitted to issue any shares of common stock under the Purchase Agreement if such issuance would breach the its obligations under the rules or regulations of the Nasdaq Capital Market. In addition, Lincoln Park will not be required to purchase any shares of the Company's common stock if such sale would result in Lincoln Park’s beneficial ownership exceeding 9.99% of the then outstanding shares of the Company's common stock. The Company's inability to access a portion or the full amount available under the Lincoln Park Purchase Agreement, in the absence of any other financing sources, could have a material adverse effect on its business. The Company incurred $0.7 million of commitment shares issued, legal, accounting, registration and other professional fees related to the Lincoln Park Purchase Agreement These amounts are included as deferred charges within other current assets on the Company's balance sheet as of December 31, 2018 and will be charged against paid-in capital upon future proceeds from the sale of common stock under the Lincoln Park Purchase Agreement. As of December 31, 2018, the Company has not sold any shares under the Lincoln Park Purchase Agreement. Outstanding Warrants The following equity classified warrants were outstanding as of December 31, 2018 : Shares Weighted- Issuance date Expiration date Common stock warrants 24,224 $ 6.1918 Feb 24, 2012 Feb 24, 2019 Common Stock Reserved for Future Issuance Common stock reserved for future issuance consists of the following at December 31, 2018 : Stock options issued and outstanding 3,360,048 Authorized for future option and award grants 1,089,885 Authorized for future issuance under ESPP 476,259 Warrants outstanding 24,224 Total 4,950,416 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The income tax provision (benefit) consists of the following (in thousands): Year ended December 31, 2018 2017 Current: Federal $ — $ — State 11 10 Foreign — — Total current provision 11 10 Deferred: Federal — — State — — Foreign — — Total deferred provision — — Income tax provision (benefit) $ 11 $ 10 The difference between income tax benefits and income taxes computed using the U.S. federal income tax rate as of December 31, 2018 and 2017 are as follows (in thousands): Year ended December 31, 2018 2017 Federal provision (benefit) At statutory rates $ (7,848 ) $ (11,820 ) State taxes, net of federal — — Change in valuation allowance 7,859 11,830 Foreign operations — — Income tax provision (benefit) $ 11 $ 10 Significant components of the Company’s deferred tax assets are as shown below: Year ended December 31, 2018 2017 Deferred tax assets: Net operating losses $ 28,708 $ 20,795 Tax credits 4,898 3,747 Capitalized research and development costs 2,566 3,720 Other 2,458 1,808 Total gross deferred tax assets 38,630 30,070 Less valuation allowance (38,630 ) (30,070 ) Total deferred tax assets $ — $ — A valuation allowance of $ 38.6 million and $ 30.1 million as of December 31, 2018 and 2017, respectively, has been established to offset the deferred tax assets as realization of such assets are uncertain. At December 31, 2018 , the Company had federal and state net operating loss carryforwards of approximately $ 122.2 million and $ 87.9 million , respectively. The federal and state tax loss carryforwards will begin expiring in 2028, unless previously utilized. The federal net operating loss carryover includes $34.0 million of net operating losses generated in 2018. Federal net operating losses generated in 2018 carryover indefinitely and may generally be used to offset up to 80% of future taxable income. The Company also has federal and California research and development tax credit carryforwards totaling $ 3.0 million and $ 2.4 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. Due to the existence of the valuation allowance, future changes in the Company's unrecognized tax benefits will not impact its effective tax rate. Any carryforwards that will expire prior to utilization as a result of such limitations will be removed from deferred tax assets with a corresponding reduction of the valuation allowance. 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, 2018 and 2017, the Company had unrecognized tax benefits of $3.6 million and $2.1 million , 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, 2018 2017 Balance at January 1 $ 2,128 $ — Additions based on tax positions related to current year 1,513 449 Additions based on tax positions related to prior years — 1,679 Reductions for tax positions related to prior years (32 ) — Balance at December 31 $ 3,609 $ 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. There were no changes made in 2018 to our 2017 enactment-date provisional amounts. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies On June 1, 2018, the Company amended its office lease agreement for the purpose of extending the term of the current lease on its corporate headquarters and leasing an additional 2,700 square feet of space in an adjacent building. The Company leases facilities under a noncancelable operating lease that expires on March 31, 2022. Under the terms of the facilities lease, the Company is required to pay its proportionate share of property taxes, insurance and normal maintenance costs. The Company enters 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, 2018 (in thousands): Year ended: December 31, 2019 $ 474 December 31, 2020 487 December 31, 2021 501 December 31, 2022 127 Total future payments due under building lease $ 1,589 Rent expense totaled $0.4 million for both the years ended December 31, 2018 and 2017. Pursuant to our supplier agreement entered into in December 2018, we are obligated to purchase certain minimum quantities. These costs scale up as our projected manufacturing volume increases. Under the terms of the agreement, we can reduce the forecasted minimum quantities and are required to incur a holding fee for items manufactured by the supplier. This commitment represents the commitment of one year for approximately $1.1 million , which is the minimum commitment allowed under the agreement. 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. Termination of Stock Offering On January 23, 2018, the Company issued a press release announcing the termination of its previously announced offering of common stock due to a purported whistleblower compliant, which was later found to be without merit. As of December 31, 2018, the Company did not record any liability associated with termination of the offering, and management believed that the likelihood is remote that the Company will incur material fees in the future. Shareholder Lawsuit On February 14 and 22, 2018, plaintiff stockholders filed class action lawsuits against the Company and certain of its 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). On July 24, 2018, the court appointed Inter-Local Pension Fund GCC/IBT as lead plaintiff. On October 5, 2018, plaintiffs filed an amended complaint. The amended complaint alleges that the Company and certain of its executive officers made false and misleading statements and failed to disclose material adverse facts about its business, operations, and prospects in violation of Sections 10(b) (and Rule 10b-5 promulgated thereunder) and 20(a) of the Exchange Act. The amended 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 underwriters from our initial public offering have also been named as defendants in this case and we have certain obligations under the underwriting agreement to indemnify them for their costs and expenses incurred in connection with this litigation. The Company believes the complaint is without merit, and on December 4, 2018, the Company moved to dismiss the amended complaint. The court has scheduled a hearing for April 11, 2019 on the motion to dismiss. |
Selected Quarterly Financial Da
Selected Quarterly Financial Data (Unaudited) | 12 Months Ended |
Dec. 31, 2018 | |
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, 2018 and 2017 (unaudited, in thousands, except for per share data) : Three Months Ended Year Ended 2018: March 31, June 30, September 30, December 31, December 31, Revenue $ 1,346 $ 2,732 $ 2,987 $ 2,036 $ 9,101 Gross profit 577 1,000 1,569 532 3,678 Loss from operations (12,068 ) (9,602 ) (6,635 ) (8,660 ) (36,965 ) Net loss $ (12,126 ) $ (9,753 ) $ (6,745 ) $ (8,756 ) $ (37,380 ) Per common share: Net loss per share, basic and diluted $ (0.71 ) $ (0.57 ) $ (0.35 ) $ (0.39 ) $ (1.96 ) 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 ) |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2018 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events Stock Option Grants Subsequent to December 31, 2018 , stock options and awards for 900,572 shares of the Company’s common stock were granted to Company employees. Term Loan Subsequent to December 31, 2018, the Company drew down $10.0 million on the second tranche under its loan and security agreement with Pacific Western Bank for a total outstanding amount of $20.0 million . The outstanding debt has a variable annual interest rate equal to the greater of the prime rate plus 1.5% per annum, or 5.0% , and matures in July 2022. The Loan Amendment provides for an interest-only period through July 9, 2019 followed by 36 equal monthly installments of principal and interest with the first principal payment due on August 9, 2019. The Loan Agreement may be prepaid in full at any time with no additional cost. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The consolidated financial statements include the accounts of Obalon Therapeutics, Inc., and its wholly owned subsidiary, Obalon Therapeutics, LLC, which was dissolved in 2017 and had no activity during the years ended December 31, 2018 and 2017. 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. |
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 and 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, 2018 and 2017, unrealized gains and 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, 2018 and 2017. 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, short-term investments, accounts receivable, 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 are 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 physicians and institutions in the United States and one international distributor. 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, in accordance with ASC 606, when control of its products is transferred to its customers in an amount that reflects the consideration it expects to receive in exchange for those products. The Company's revenue recognition process involves identifying the contract with a customer, determining the performance obligations in the contract, determining the transaction price, allocating the transaction price to the distinct performance obligations in the contract, and recognizing revenue as performance obligations are satisfied. A performance obligation is considered distinct from other obligations in a contract when it provides a benefit to the customer either on its own or together with other resources that are readily available to the customer and is separately identified in the contract. The Company considers a performance obligation satisfied once it has transferred control of a good or service to the customer, meaning the customer has the ability to use and obtain the benefit of the good or service. The Company recognizes revenue for satisfied performance obligations only when it determines there are no uncertainties regarding payment terms or transfer of control. Revenue is generated from sales of the Obalon Balloon System to physicians and institutions in the United States and to a distributor in the Middle East. The Company recognizes revenue upon shipment of its product as the Company's standard contract terms dictate that control transfers to the customer upon shipment of its product. Invoicing typically occurs upon shipment and the time period between invoicing and when payment is due is not significant. Sales taxes collected are excluded from revenues. Shipping charges billed to customers are included in revenue and related shipping cost is included in cost of revenue. The Company's revenue contracts do not provide for maintenance. Commissions are considered incremental costs to obtain a contract with a customer and paid to salespeople when contracts are executed. Commissions are recognized as a selling expense when incurred as the amortization period is one year or less. The components of the Obalon Balloon System are typically packaged in a kit and shipped to the customer at the same time, satisfying the majority of performance obligations in the contract. The Company recognizes revenue for any unsatisfied, distinct performance obligations, such as undelivered components, as they are satisfied based on the standalone selling price of each performance obligation. The Company estimates the standalone selling price of each performance obligation by estimating the expected cost of satisfying that performance obligation plus an appropriate margin. When the Company enters into contracts with multiple performance obligations, such obligations are generally satisfied within a short time frame of approximately three to six months after the contract execution date. The Company does not disclose the value of the unsatisfied performance obligations within its contracts. The Company offers a swallow guarantee program in the United States where it may provide replacement balloons to customers when their patients are unsuccessful in swallowing an Obalon balloon, subject to certain requirements and restrictions. The Company considers the replacement balloons provided under this program as an additional performance obligation in the contract and defers revenue relating to the replacement balloons based on an expected swallow failure rate and then recognizes revenue when replacement balloons are provided. The Company recognizes revenue at the net sales price, which reflects the consideration the Company believes it is most likely to receive. The net sales price includes estimates of variable consideration for customer incentives and returns. The Company reserves for product returns as a reduction to revenue in the period when the related revenue is recognized. The Company estimates its product returns based on historical return rates and specifically known events. 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. Customer incentives that provide discounts to the customer on purchases of current or future product are recorded as a reduction of revenue in the period the related product revenue is recognized. Any consideration payable to a customer is presumed as a reduction to revenue unless the Company can demonstrate that the consideration provided to the customer is in exchange for a distinct good or service. Actual amounts of consideration ultimately received may differ from the Company’s estimates. If actual results vary from the Company’s estimates, the Company would adjust these estimates, which would impact net product revenue and results of operations in the period such variances become known. |
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 due to the net loss position of all periods presented. Potentially dilutive common stock equivalents are comprised of warrants, if material, unvested restricted stock awards (RSAs), and unexercised stock options outstanding under the Company's equity plan. |
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 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. ASC 606 is based on the principle that revenue should be recognized in an amount that reflects the consideration to which a company expects to be entitled in exchange for the transfer of promised goods or services. The Company adopted ASC 606 on January 1, 2018 using the modified retrospective implementation method. The Company noted the following in its assessment of the impact of ASC 606 on its financial statements issued prior to fiscal year 2018: • The majority of the Company's sales contracts fall under its standard sales agreement whereby control transfers to the customer upon delivery of the product to the named common carrier at the Company's location, satisfying the performance obligations of the contract. As such, revenue is recognized upon shipment under ASC 606 in the same way that it was recognized under the previous revenue guidance. The Company's contracts did not meet the criteria under ASC 606 for revenue recognition over time. • Customer incentives existing prior to December 31, 2017 related to discounts that were recognized as a reduction to revenue in the same period when the related revenue was recognized or situations where the Company deferred revenue related to undelivered elements of the contract and then recognized the revenue as the undelivered elements were delivered. The Company concluded that the revenue recognition for these customer incentives under ASC 606 was the same as under the previous revenue guidance. • Prior to December 31, 2017, the Company presented the reserve for expected sales returns as a decrease to its accounts receivable balance. Under ASC 606, the Company accounts for expected sales returns as a refund liability and presents the reserve for sales returns as a current liability in its consolidated financial statements with a corresponding asset if the returned item is expected to be re-sold. The adoption of ASC 606 resulted in an immaterial transition adjustment related to this reserve. This reclassification did not have an impact on the results of operations. The reserve for sales returns was $0.2 million at December 31, 2018. Overall, the cumulative effect of applying the new revenue standard to all incomplete contracts as of January 1, 2018 was not material and, therefore, did not result in an adjustment to retained earnings. Although there was no material impact compared to the previous accounting guidance to the consolidated financial statements for the year ended December 31, 2018 due to the adoption of ASC 606, the adoption of this standard resulted in increased disclosure requirements. In May 2017, the FASB issued ASU 2017-09, Compensation-Stock Compensation, 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 provided 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 were effective for fiscal and interim reporting periods in fiscal years beginning after December 15, 2017. The amendments in ASU 2017-09 should be applied prospectively to an award modified on or after the adoption date. The Company adopted ASU 2017-09 on January 1, 2018 and the adoption did not have a material impact on the Company's consolidated financial statements or related financial statement disclosure. In June 2018, the FASB issued ASU 2018-07, Compensation - Stock Compensation (Topic 718), Improvements to Nonemployee Share-Based Payment Accounting. This ASU expands the scope of Topic 718 to include share based payment transactions for acquiring goods and services from nonemployees. An entity should apply the requirements of Topic 718 to nonemployee awards except for specific guidance on inputs to an option pricing model and the attribution of cost. This ASU is effective for the Company on January 1, 2019 with early adoption permitted, although no earlier than the adoption date of Topic 606. The Company elected to early adopt this ASU in the quarter ended June 30, 2018, which did not have a material impact on its consolidated financial statements. Recently Issued Accounting Pronouncements not yet adopted 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. In July 2018, the FASB issued ASU 2018-10, Codification Improvements to Topic 842 (Leases) , which provides narrow amendments to clarify how to apply certain aspects of the new lease standard. The new standard is effective for annual reporting periods, and interim periods within those periods, beginning after December 15, 2018, with early adoption permitted. In July 2018, the FASB issued ASU No. 2018-11, Leases Topic (842): Targeted Improvements. This ASU provides companies an option to apply the transition provisions of the new lease standard at its adoption date instead of at the earliest comparative period presented in its financial statements. The Company will elect the optional method to account for the impact of the adoption with a cumulative-effect adjustment in the period of adoption and will not restate prior periods. The Company expects to elect certain practical expedients permitted under the transition guidance. The Company is in the process of completing its evaluation of the effect that the adoption of this ASU will have on its financial statements. The Company currently believes the most significant change will be related to the recognition of a new right-of-use asset and lease liability at January 1, 2019 on the Company's consolidated balance sheet for its real estate operating lease. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
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, 2018 2017 Single largest customer:* Revenue 48.4 % 16.7 % Accounts receivable — % 17.4 % Second largest customer: Revenue 14.1 % 1.4 % Accounts receivable 0.7 % — % * The Company's largest customer for the years ended December 31, 2018 and 2017 was its Middle East distributor. There were no other international sales aside from sales to this distributor for the years ended December 31, 2018 and 2017. |
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, 2018 2017 Computer hardware $ 410 $ 397 Computer software 274 392 Leasehold improvements 405 238 Furniture and fixtures 178 160 Scientific equipment 1,921 1,354 Construction in progress, or CIP 530 220 3,718 2,761 Less: accumulated depreciation (1,979 ) (1,415 ) Total $ 1,739 $ 1,346 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
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, 2018 and 2017 are as follows (in thousands): Fair value measurements at reporting date using Balance as of December 31, 2018 Quoted prices Significant Significant Assets: Cash Equivalents Money Market Funds 21,187 21,187 — — Short-term investments: U.S. Treasury bonds $ 2,548 $ 2,548 $ — $ — Total assets $ 23,735 $ 23,735 $ — $ — Fair value measurements at reporting date using Balance as of December 31, 2017 Quoted prices in active Significant (Level 2) Significant (Level 3) 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 $ — $ — |
Net Loss per Share (Tables)
Net Loss per Share (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
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, 2018 2017 Net loss $ (37,380 ) $ (34,765 ) Weighted-average common shares outstanding, basic and diluted 19,036,693 16,717,106 Net loss per share, basic and diluted $ (1.96 ) $ (2.08 ) |
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 method 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, 2018 2017 Stock options to purchase common stock 383,515 886,526 Total 383,515 886,526 |
Balance Sheet Details (Tables)
Balance Sheet Details (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
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, 2018: U.S. Treasury bonds 1 year or less $ 2,548 $ — $ — $ 2,548 Maturity Amortized Gross Gross Estimated At December 31, 2017: U.S. Treasury bonds 1 year or less $ 23,295 $ — $ (3 ) $ 23,292 |
Schedule of Inventory | Inventory consists of the following (in thousands): December 31, 2018 2017 Raw materials $ 1,090 $ 1,046 Work in process 288 127 Finished goods 202 245 Total $ 1,580 $ 1,418 |
Schedule of Other Current Assets | Other current assets consist of the following (in thousands): December 31, 2018 2017 Prepaid expenses $ 2,329 $ 1,514 Interest receivable 12 85 Other assets 121 115 Total $ 2,462 $ 1,714 |
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, 2018 2017 Computer hardware $ 410 $ 397 Computer software 274 392 Leasehold improvements 405 238 Furniture and fixtures 178 160 Scientific equipment 1,921 1,354 Construction in progress, or CIP 530 220 3,718 2,761 Less: accumulated depreciation (1,979 ) (1,415 ) Total $ 1,739 $ 1,346 |
Schedule of Other Current Liabilities | Other current liabilities consist of the following (in thousands): December 31, 2018 2017 Accrued legal and professional fees 624 289 Accrued customer incentives 467 558 Accrued sales and other taxes 132 167 Accrued marketing expenses — 60 Other accrued expenses 762 699 Total $ 1,985 $ 1,773 |
Term Loan (Tables)
Term Loan (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
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, 2018 Face value $ 10,000 Less: unamortized debt issuance costs (70 ) Total term loan $ 9,930 Less: current portion of long-term loan (9,930 ) Total long-term loan, excluding current portion $ — |
Schedule of Future Principal Payments Due | As of December 31, 2018 , future principal payments due under the Loan Agreement are as follows (in thousands): Year ended: December 31, 2019 1,389 December 31, 2020 3,333 December 31, 2021 3,333 December 31, 2022 1,945 Total future principal payments due under the Loan Agreement $ 10,000 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
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, 2018 2017 Cost of revenue $ 96 $ 115 Research and development 1,141 406 Selling, general and administrative 3,456 2,720 Total $ 4,693 $ 3,241 |
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, 2018 2017 Assumed risk-free interest rate (1) 2.31%- 3.10% 1.81%- 2.23% Assumed volatility (2) 53.95%-55.44% 55.11%-58.97% Expected option life (3) 5.0-6.1 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, 2018 (in thousands, except shares and per share data): Number of Weighted- Weighted- (in years) Aggregate Outstanding at December 31, 2017 2,979,285 $ 6.49 Options granted 1,640,589 4.78 Options exercised (45,805 ) 1.16 Options canceled (1,214,021 ) 6.22 Outstanding at December 31, 2018 3,360,048 5.83 8.0 $ 535 Vested and expected to vest at December 31, 2018 3,174,081 $ 5.81 8.0 $ 531 Vested and exercisable at December 31, 2018 1,634,506 $ 5.99 7.2 $ 483 |
Summary of Restricted Stock Awards | The following table summarizes restricted stock award transactions for the year ended December 31, 2018 : Number of awards Weighted- average grant date fair value Outstanding at December 31, 2017 413,000 $ 9.98 Awards granted 425,942 4.10 Awards vested — — Awards canceled (227,000 ) 10.00 Outstanding at December 31, 2018 611,942 $ 5.89 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Equity [Abstract] | |
Schedule of Outstanding Warrants | The following equity classified warrants were outstanding as of December 31, 2018 : Shares Weighted- Issuance date Expiration date Common stock warrants 24,224 $ 6.1918 Feb 24, 2012 Feb 24, 2019 |
Schedule of Common Stock Reserved for Future Issuance | Common stock reserved for future issuance consists of the following at December 31, 2018 : Stock options issued and outstanding 3,360,048 Authorized for future option and award grants 1,089,885 Authorized for future issuance under ESPP 476,259 Warrants outstanding 24,224 Total 4,950,416 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
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, 2018 2017 Current: Federal $ — $ — State 11 10 Foreign — — Total current provision 11 10 Deferred: Federal — — State — — Foreign — — Total deferred provision — — Income tax provision (benefit) $ 11 $ 10 |
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, 2018 and 2017 are as follows (in thousands): Year ended December 31, 2018 2017 Federal provision (benefit) At statutory rates $ (7,848 ) $ (11,820 ) State taxes, net of federal — — Change in valuation allowance 7,859 11,830 Foreign operations — — Income tax provision (benefit) $ 11 $ 10 |
Schedule of Deferred Tax Assets | Significant components of the Company’s deferred tax assets are as shown below: Year ended December 31, 2018 2017 Deferred tax assets: Net operating losses $ 28,708 $ 20,795 Tax credits 4,898 3,747 Capitalized research and development costs 2,566 3,720 Other 2,458 1,808 Total gross deferred tax assets 38,630 30,070 Less valuation allowance (38,630 ) (30,070 ) 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, 2018 2017 Balance at January 1 $ 2,128 $ — Additions based on tax positions related to current year 1,513 449 Additions based on tax positions related to prior years — 1,679 Reductions for tax positions related to prior years (32 ) — Balance at December 31 $ 3,609 $ 2,128 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
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, 2018 (in thousands): Year ended: December 31, 2019 $ 474 December 31, 2020 487 December 31, 2021 501 December 31, 2022 127 Total future payments due under building lease $ 1,589 |
Selected Quarterly Financial _2
Selected Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
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, 2018 and 2017 (unaudited, in thousands, except for per share data) : Three Months Ended Year Ended 2018: March 31, June 30, September 30, December 31, December 31, Revenue $ 1,346 $ 2,732 $ 2,987 $ 2,036 $ 9,101 Gross profit 577 1,000 1,569 532 3,678 Loss from operations (12,068 ) (9,602 ) (6,635 ) (8,660 ) (36,965 ) Net loss $ (12,126 ) $ (9,753 ) $ (6,745 ) $ (8,756 ) $ (37,380 ) Per common share: Net loss per share, basic and diluted $ (0.71 ) $ (0.57 ) $ (0.35 ) $ (0.39 ) $ (1.96 ) 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 ) |
Organization and Basis of Pre_2
Organization and Basis of Presentation - Additional Information (Detail) | 1 Months Ended | 2 Months Ended | 3 Months Ended | 12 Months Ended | |||||||||
Aug. 31, 2018USD ($)shares | Feb. 22, 2019USD ($) | Dec. 31, 2018USD ($)$ / shares | Sep. 30, 2018USD ($) | Jun. 30, 2018USD ($) | Mar. 31, 2018USD ($) | Dec. 31, 2017USD ($)$ / shares | Sep. 30, 2017USD ($) | Jun. 30, 2017USD ($) | Mar. 31, 2017USD ($) | Dec. 31, 2018USD ($)segment$ / shares | Dec. 31, 2017USD ($)$ / shares | Dec. 27, 2018USD ($)$ / shares | |
Basis Of Presentation And Organization [Line Items] | |||||||||||||
Number of operating segments | segment | 1 | ||||||||||||
Total revenue | $ 2,036,000 | $ 2,987,000 | $ 2,732,000 | $ 1,346,000 | $ 3,692,000 | $ 2,787,000 | $ 1,963,000 | $ 1,472,000 | $ 9,101,000 | $ 9,914,000 | |||
Accumulated deficit | $ 148,754,000 | $ 111,374,000 | $ 148,754,000 | $ 111,374,000 | |||||||||
Common stock, par value (in dollars per share) | $ / shares | $ 0.001 | $ 0.001 | $ 0.001 | $ 0.001 | $ 0.001 | ||||||||
Outstanding balance | $ 9,930,000 | $ 9,930,000 | |||||||||||
Private Placement | |||||||||||||
Basis Of Presentation And Organization [Line Items] | |||||||||||||
Number of shares sold (in shares) | shares | 5,494,506 | ||||||||||||
Gross proceeds | $ 10,000,000 | ||||||||||||
Canaccord Genuity, LLC | Equity Distribution Agreement | |||||||||||||
Basis Of Presentation And Organization [Line Items] | |||||||||||||
Maximum purchase commitment | 10,000,000 | 10,000,000 | $ 10,000,000 | ||||||||||
Lincoln Park Capital Fund, LLC | Registration Rights Agreement | |||||||||||||
Basis Of Presentation And Organization [Line Items] | |||||||||||||
Maximum purchase commitment | $ 20,000,000 | ||||||||||||
December 2016 Loan Agreement | |||||||||||||
Basis Of Presentation And Organization [Line Items] | |||||||||||||
Outstanding balance | $ 10,000,000 | $ 10,000,000 | |||||||||||
Subsequent Event | December 2016 Loan Agreement | |||||||||||||
Basis Of Presentation And Organization [Line Items] | |||||||||||||
Outstanding balance | $ 20,000,000 | ||||||||||||
Subsequent Event | Line of Credit | 5th Amendment To The Loan And Security Agreement Tranche 2 | |||||||||||||
Basis Of Presentation And Organization [Line Items] | |||||||||||||
Proceeds from debt | $ 10,000,000 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Unrealized losses on short term investments | $ 0 | $ 0 | $ 0 |
Realized gain (loss) on short term investments | 0 | 0 | $ 0 |
Allowance for doubtful accounts | 0.7 | 0.2 | |
Product warranty expense | 0.1 | ||
Advertising expense | 3.8 | $ 2.9 | |
Sales returns reserve | $ 0.2 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Concentration Risk (Details) - Customer Concentration Risk | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Single Largest Customer | Revenue | ||
Concentration Risk [Line Items] | ||
Concentration risk percentage | 48.40% | 16.70% |
Single Largest Customer | Accounts receivable | ||
Concentration Risk [Line Items] | ||
Concentration risk percentage | 0.00% | 17.40% |
Customer Two [Member] | Revenue | ||
Concentration Risk [Line Items] | ||
Concentration risk percentage | 14.10% | 1.40% |
Customer Two [Member] | Accounts receivable | ||
Concentration Risk [Line Items] | ||
Concentration risk percentage | 0.70% | 0.00% |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Estimated Useful Lives (Details) | 12 Months Ended |
Dec. 31, 2018 | |
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) - Recurring - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Assets, fair value disclosure | $ 23,735,000 | $ 44,400,000 |
Quoted prices in active markets for identical assets (Level 1) | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Assets, fair value disclosure | 23,735,000 | 44,400,000 |
Significant other observable inputs (Level 2) | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Assets, fair value disclosure | 0 | 0 |
Significant unobservable inputs (Level 3) | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Assets, fair value disclosure | 0 | 0 |
Cash Equivalents | Money Market Funds | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Assets, fair value disclosure | 21,187,000 | 12,115,000 |
Cash Equivalents | U.S. Treasury bonds | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Assets, fair value disclosure | 8,993,000 | |
Cash Equivalents | Quoted prices in active markets for identical assets (Level 1) | Money Market Funds | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Assets, fair value disclosure | 21,187,000 | 12,115,000 |
Cash Equivalents | Quoted prices in active markets for identical assets (Level 1) | U.S. Treasury bonds | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Assets, fair value disclosure | 8,993,000 | |
Cash Equivalents | Significant other observable inputs (Level 2) | Money Market Funds | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Assets, fair value disclosure | 0 | 0 |
Cash Equivalents | Significant other observable inputs (Level 2) | U.S. Treasury bonds | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Assets, fair value disclosure | 0 | |
Cash Equivalents | Significant unobservable inputs (Level 3) | Money Market Funds | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Assets, fair value disclosure | 0 | 0 |
Cash Equivalents | Significant unobservable inputs (Level 3) | U.S. Treasury bonds | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Assets, fair value disclosure | 0 | |
Short-term investments: | U.S. Treasury bonds | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Assets, fair value disclosure | 2,548,000 | 23,292,000 |
Short-term investments: | Quoted prices in active markets for identical assets (Level 1) | U.S. Treasury bonds | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Assets, fair value disclosure | 2,548,000 | 23,292,000 |
Short-term investments: | Significant other observable inputs (Level 2) | U.S. Treasury bonds | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Assets, fair value disclosure | 0 | 0 |
Short-term investments: | Significant unobservable inputs (Level 3) | U.S. Treasury bonds | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Assets, fair value disclosure | $ 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, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | |
Earnings Per Share [Abstract] | ||||||||||
Net loss | $ (8,756) | $ (6,745) | $ (9,753) | $ (12,126) | $ (10,120) | $ (9,170) | $ (7,730) | $ (7,745) | $ (37,380) | $ (34,765) |
Weighted-average common shares outstanding, basic and diluted (in shares) | 19,036,693 | 16,717,106 | ||||||||
Net loss per share, basic and diluted (in dollars per share) | $ (0.39) | $ (0.35) | $ (0.57) | $ (0.71) | $ (0.60) | $ (0.55) | $ (0.46) | $ (0.47) | $ (1.96) | $ (2.08) |
Net Loss per Share - Schedule_2
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, 2018 | Dec. 31, 2017 | |
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) | 383,515 | 886,526 |
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) | 383,515 | 886,526 |
Balance Sheet Details - Additio
Balance Sheet Details - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Balance Sheet Related Disclosures [Abstract] | ||
Depreciation | $ 581 | $ 330 |
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, 2018 | Dec. 31, 2017 |
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized cost | $ 2,548 | $ 23,295 |
Gross unrealized gains | 0 | 0 |
Gross unrealized losses | 0 | (3) |
Estimated fair value | $ 2,548 | $ 23,292 |
Balance Sheet Details - Sched_2
Balance Sheet Details - Schedule of Inventory (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Balance Sheet Related Disclosures [Abstract] | ||
Raw materials | $ 1,090 | $ 1,046 |
Work in process | 288 | 127 |
Finished goods | 202 | 245 |
Total | $ 1,580 | $ 1,418 |
Balance Sheet Details - Sched_3
Balance Sheet Details - Schedule of Other Current Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Balance Sheet Related Disclosures [Abstract] | ||
Prepaid expenses | $ 2,329 | $ 1,514 |
Interest receivable | 12 | 85 |
Other assets | 121 | 115 |
Total | $ 2,462 | $ 1,714 |
Balance Sheet Details - Sched_4
Balance Sheet Details - Schedule of Property and Equipment, Net (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 3,718 | $ 2,761 |
Less: accumulated depreciation | (1,979) | (1,415) |
Property and equipment, net | 1,739 | 1,346 |
Computer hardware | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 410 | 397 |
Computer software | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 274 | 392 |
Leasehold Improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 405 | 238 |
Furniture and fixtures | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 178 | 160 |
Scientific equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 1,921 | 1,354 |
Construction in progress, or CIP | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 530 | $ 220 |
Balance Sheet Details - Sched_5
Balance Sheet Details - Schedule of Other Current Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Balance Sheet Related Disclosures [Abstract] | ||
Accrued legal and professional fees | $ 624 | $ 289 |
Accrued customer incentives | 467 | 558 |
Accrued sales and other taxes | 132 | 167 |
Accrued marketing expenses | 0 | 60 |
Other accrued expenses | 762 | 699 |
Total | $ 1,985 | $ 1,773 |
Term Loan - Additional Informat
Term Loan - Additional Information (Details) | 1 Months Ended | 2 Months Ended | 12 Months Ended | |||
Jul. 31, 2018USD ($)tranche | Feb. 22, 2019USD ($) | Dec. 31, 2018USD ($)installment | Jun. 30, 2018USD ($) | Dec. 31, 2017 | Jun. 30, 2013USD ($) | |
Debt Instrument [Line Items] | ||||||
Outstanding balance | $ 9,930,000 | |||||
2013 Loan Agreement | ||||||
Debt Instrument [Line Items] | ||||||
Term loan, maximum borrowings | $ 3,000,000 | |||||
5th Amendment To The Loan And Security Agreement | Line of Credit | ||||||
Debt Instrument [Line Items] | ||||||
Term loan, maximum borrowings | $ 20,000,000 | |||||
Number of tranches | tranche | 2 | |||||
December 2016 Loan Agreement | ||||||
Debt Instrument [Line Items] | ||||||
Outstanding balance | $ 10,000,000 | |||||
Term loan, fixed interest rate | 7.00% | |||||
Number of installments | installment | 36 | |||||
December 2016 Loan Agreement | Prime Rate | ||||||
Debt Instrument [Line Items] | ||||||
Term loan, variable interest rate | 1.50% | |||||
Term loan, fixed interest rate | 5.50% | |||||
December 2016 Loan Agreement | Line of Credit | ||||||
Debt Instrument [Line Items] | ||||||
Term loan, maximum borrowings | $ 10,000,000 | |||||
5th Amendment To The Loan And Security Agreement Tranche 1 | Line of Credit | ||||||
Debt Instrument [Line Items] | ||||||
Term loan, maximum borrowings | $ 10,000,000 | |||||
Proceeds used for repayment of debt | 10,000,000 | |||||
5th Amendment To The Loan And Security Agreement Tranche 2 | Line of Credit | ||||||
Debt Instrument [Line Items] | ||||||
Term loan, maximum borrowings | $ 10,000,000 | |||||
Maximum | December 2016 Loan Agreement | ||||||
Debt Instrument [Line Items] | ||||||
Term loan, fixed interest rate | 5.00% | |||||
Subsequent Event | December 2016 Loan Agreement | ||||||
Debt Instrument [Line Items] | ||||||
Outstanding balance | $ 20,000,000 | |||||
Subsequent Event | 5th Amendment To The Loan And Security Agreement Tranche 2 | Line of Credit | ||||||
Debt Instrument [Line Items] | ||||||
Proceeds from debt | $ 10,000,000 |
Term Loan - Summary of Total Lo
Term Loan - Summary of Total Long-term Loan and Unamortized Debt Discount (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Debt Disclosure [Abstract] | ||
Face value | $ 10,000 | |
Less: unamortized debt issuance costs | (70) | |
Total future principal payments due | 9,930 | |
Less: current portion of long-term loan | (9,930) | $ (1,958) |
Long-term loan, excluding current portion | $ 0 | $ 7,964 |
Term Loan - Schedule of Future
Term Loan - Schedule of Future Principal Payments Due (Details) $ in Thousands | Dec. 31, 2018USD ($) |
Long-term Debt, Fiscal Year Maturity [Abstract] | |
Total future principal payments due | $ 9,930 |
December 2016 Loan Agreement | |
Long-term Debt, Fiscal Year Maturity [Abstract] | |
December 31, 2019 | 1,389 |
December 31, 2020 | 3,333 |
December 31, 2021 | 3,333 |
December 31, 2022 | 1,945 |
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, 2018 | Dec. 31, 2017 |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Common stock shares reserved for issuance (in shares) | 4,950,416 | |||
Unrecognized compensation expense | $ 5.6 | |||
Weighted average compensation cost recognition period | 1 year 9 months 30 days | |||
Weighted-average fair value of options granted (in dollars per share) | $ 2.54 | |||
Intrinsic value of options exercised in period | $ 0.1 | $ 0.6 | ||
Stock options early exercised (in shares) | 0 | 0 | ||
Stock options remaining, unvested (in shares) | 67,938 | |||
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) | 1,956,562 | |||
2016 Equity Incentive Plan | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Common stock shares reserved for issuance (in shares) | 1,089,885 | |||
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) | 521,514 | 476,259 | ||
Shares reserved for issuance, increase percentage of common stock outstanding and common stock equivalents | 1.00% | |||
Share-based compensation expense | $ 0.2 | $ 0.2 | ||
Number of years shares reserved for issuance increases automatically | 10 years | |||
Shares issued in period (in shares) | 45,255 | 53,758 | ||
Proceeds from sale of common stock upon exercise of stock options | $ 0.1 | $ 0.4 | ||
Unvested restricted common stock awards | 2016 Equity Incentive Plan | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Weighted average compensation cost recognition period | 1 year 6 months | |||
Award vesting percentage | 100.00% | |||
Vesting period | 10 years | |||
Share-based compensation expense | $ 1.1 | $ 0.3 |
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, 2018 | Dec. 31, 2017 | |
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||
Stock-based compensation | $ 4,693 | $ 3,241 |
Cost of revenue | ||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||
Stock-based compensation | 96 | 115 |
Research and development | ||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||
Stock-based compensation | 1,141 | 406 |
Selling, general and administrative | ||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||
Stock-based compensation | $ 3,456 | $ 2,720 |
Stock-Based Compensation - Su_2
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, 2018 | Dec. 31, 2017 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Expected option life | 6 years 1 month 6 days | |
Expected dividend yield | 0.00% | 0.00% |
Minimum | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Assumed risk-free interest rate | 2.31% | 1.81% |
Assumed volatility | 53.95% | 55.11% |
Expected option life | 5 years | |
Maximum | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Assumed risk-free interest rate | 3.10% | 2.23% |
Assumed volatility | 55.44% | 58.97% |
Expected option life | 6 years 1 month 6 days |
Stock-Based Compensation - Su_3
Stock-Based Compensation - Summary of Stock Option Transactions (Details) $ / shares in Units, $ in Thousands | 12 Months Ended |
Dec. 31, 2018USD ($)$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |
Number of shares outstanding, beginning balance (in shares) | shares | 2,979,285 |
Number of shares, options granted (in shares) | shares | 1,640,589 |
Number of shares, options exercised (in shares) | shares | (45,805) |
Number of shares, options canceled (in shares) | shares | (1,214,021) |
Number of shares outstanding, ending balance (in shares) | shares | 3,360,048 |
Number of shares, vested and expected to vest at end of period (in shares) | shares | 3,174,081 |
Number of shares, vested and exercisable at period end (in shares) | shares | 1,634,506 |
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 | $ 6.49 |
Weighted average exercise price, options granted (in dollars per share) | $ / shares | 4.78 |
Weighted average exercise price, options exercised (in dollars per share) | $ / shares | 1.16 |
Weighted average exercise price, options canceled (in dollars per share) | $ / shares | 6.22 |
Weighted average exercise price outstanding, ending balance (in dollars per share) | $ / shares | 5.83 |
Weighted average exercise price, vested and expected to vest (in dollars per share) | $ / shares | 5.81 |
Weighted average exercise price, vested and exercisable (in dollars per share) | $ / shares | $ 5.99 |
Weighted average contractual life outstanding, ending balance | 8 years |
Weighted average contractual life, vested and expected to vest | 7 years 12 months |
Weighted average contractual life, vested and exercisable | 7 years 2 months |
Aggregate intrinsic value outstanding | $ | $ 535 |
Aggregate intrinsic value, vested and expected to vest | $ | 531 |
Aggregate intrinsic value, vested and exercisable | $ | $ 483 |
Stock-Based Compensation - Su_4
Stock-Based Compensation - Summary of Restricted Stock Awards (Details) - $ / shares | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Number of awards | ||
Outstanding, beginning balance (in shares) | 413,000 | |
Awards granted (in shares) | 425,942 | |
Awards vested (in shares) | 0 | |
Awards canceled (in shares) | (227,000) | |
Outstanding, ending balance (in shares) | 611,942 | |
Weighted- average grant date fair value | ||
Outstanding balance (in dollars per share) | $ 5.89 | $ 9.98 |
Awards granted (in dollars per share) | 4.10 | |
Awards vested (in dollars per share) | 0 | |
Awards canceled (in dollars per share) | $ 10 |
Stockholders' Equity - Addition
Stockholders' Equity - Additional Information (Details) | Dec. 27, 2018USD ($)day$ / sharesshares | Aug. 31, 2018USD ($)shares | Dec. 31, 2018USD ($)shares | Dec. 26, 2018shares | Jun. 30, 2018shares | May 31, 2018shares | Dec. 31, 2017shares |
Class of Stock [Line Items] | |||||||
Common stock, shares authorized (in shares) | 100,000,000 | 100,000,000 | 300,000,000 | 300,000,000 | |||
Common stock, shares outstanding (in shares) | 23,513,292 | 23,285,112 | 17,500,604 | ||||
Private Placement | |||||||
Class of Stock [Line Items] | |||||||
Number of shares sold (in shares) | 5,494,506 | ||||||
Gross proceeds | $ | $ 10,000,000 | ||||||
Fees incurred | $ | $ 200,000 | ||||||
Canaccord Genuity, LLC | Equity Distribution Agreement | |||||||
Class of Stock [Line Items] | |||||||
Fees incurred | $ | $ 200,000 | ||||||
Maximum purchase commitment | $ | $ 10,000,000 | $ 10,000,000 | |||||
Commission rate | 3.00% | ||||||
Lincoln Park Capital Fund, LLC | Registration Rights Agreement | |||||||
Class of Stock [Line Items] | |||||||
Fees incurred | $ | $ 700,000 | ||||||
Maximum purchase commitment | $ | $ 20,000,000 | ||||||
Selling period | 36 months | ||||||
Maximum purchase amount in a single day | $ | $ 1,000,000 | ||||||
Maximum number of shares to be issued (in shares) | 4,654,694 | ||||||
Average share price during consecutive trading days (in dollars per share) | $ / shares | $ 2.244 | ||||||
Consecutive trading days | day | 5 | ||||||
Incremental amount (in dollars per share) | $ / shares | $ 0.1157 | ||||||
Maximum ownership percentage of outstanding shares | 9.99% | ||||||
$0.50 | Lincoln Park Capital Fund, LLC | Registration Rights Agreement | |||||||
Class of Stock [Line Items] | |||||||
Closing price, not less than (in dollars per share) | $ / shares | $ 0.50 | ||||||
Maximum purchase amount in a single day (in shares) | 50,000 | ||||||
$2.00 | Lincoln Park Capital Fund, LLC | Registration Rights Agreement | |||||||
Class of Stock [Line Items] | |||||||
Closing price, not less than (in dollars per share) | $ / shares | $ 2 | ||||||
Maximum purchase amount in a single day (in shares) | 100,000 | ||||||
$3.00 | Lincoln Park Capital Fund, LLC | Registration Rights Agreement | |||||||
Class of Stock [Line Items] | |||||||
Closing price, not less than (in dollars per share) | $ / shares | $ 3 | ||||||
Maximum purchase amount in a single day (in shares) | 125,000 | ||||||
$4.00 | Lincoln Park Capital Fund, LLC | Registration Rights Agreement | |||||||
Class of Stock [Line Items] | |||||||
Closing price, not less than (in dollars per share) | $ / shares | $ 4 | ||||||
Maximum purchase amount in a single day (in shares) | 150,000 |
Stockholders' Equity - Schedule
Stockholders' Equity - Schedule of Outstanding Warrants (Details) - Series C Convertible Preferred Stock - Feb 24, 2012 Warrant Issuance | Dec. 31, 2018$ / 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 - Schedu_2
Stockholders' Equity - Schedule of Common Stock Reserved for Future Issuance (Details) - shares | Dec. 31, 2018 | Oct. 05, 2016 |
Class of Stock [Line Items] | ||
Total common stock (in shares) | 4,950,416 | |
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) | 1,089,885 | |
2016 Employee Stock Purchase Plan | ||
Class of Stock [Line Items] | ||
Total common stock (in shares) | 476,259 | 521,514 |
Stock options issued and outstanding | ||
Class of Stock [Line Items] | ||
Total common stock (in shares) | 3,360,048 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Operating Loss Carryforwards [Line Items] | |||||||||||
Valuation allowance | $ 38,630,000 | $ 30,070,000 | $ 38,630,000 | $ 30,070,000 | |||||||
Loss from operations | 8,660,000 | $ 6,635,000 | $ 9,602,000 | $ 12,068,000 | 9,922,000 | $ 9,138,000 | $ 7,640,000 | $ 7,691,000 | 36,965,000 | 34,391,000 | |
Unrecognized tax benefits | 3,609,000 | $ 2,128,000 | 3,609,000 | 2,128,000 | $ 0 | ||||||
Unrecognized tax benefits that would impact effective tax rate | 0 | 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 | 122,200,000 | 122,200,000 | |||||||||
Loss from operations | 34,000,000 | ||||||||||
Federal | Research Tax Credit Carryforward | |||||||||||
Operating Loss Carryforwards [Line Items] | |||||||||||
Tax credit carryforward amount | 3,000,000 | 3,000,000 | |||||||||
State | |||||||||||
Operating Loss Carryforwards [Line Items] | |||||||||||
Operating loss carryforwards | 87,900,000 | 87,900,000 | |||||||||
State | Research Tax Credit Carryforward | California | |||||||||||
Operating Loss Carryforwards [Line Items] | |||||||||||
Tax credit carryforward amount | $ 2,400,000 | $ 2,400,000 |
Income Taxes - Income Tax Provi
Income Taxes - Income Tax Provision (Benefit) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Current: | ||
Federal | $ 0 | $ 0 |
State | 11 | 10 |
Foreign | 0 | 0 |
Total current provision | 11 | 10 |
Deferred: | ||
Federal | 0 | 0 |
State | 0 | 0 |
Foreign | 0 | 0 |
Total deferred provision | 0 | 0 |
Income tax provision (benefit) | $ 11 | $ 10 |
Income Taxes - Effective Income
Income Taxes - Effective Income Tax Rate Reconciliation (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Federal provision (benefit) | ||
At statutory rates | $ (7,848) | $ (11,820) |
State taxes, net of federal | 0 | 0 |
Change in valuation allowance | 7,859 | 11,830 |
Foreign operations | 0 | 0 |
Income tax provision (benefit) | $ 11 | $ 10 |
Income Taxes - Deferred Tax Ass
Income Taxes - Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Deferred tax assets: | ||
Net operating losses | $ 28,708 | $ 20,795 |
Tax credits | 4,898 | 3,747 |
Capitalized research and development costs | 2,566 | 3,720 |
Other | 2,458 | 1,808 |
Total gross deferred tax assets | 38,630 | 30,070 |
Less valuation allowance | (38,630) | (30,070) |
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, 2018 | Dec. 31, 2017 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | ||
Balance at January 1 | $ 2,128,000 | $ 0 |
Additions based on tax positions related to current year | 1,513,000 | 449,000 |
Additions based on tax positions related to prior years | 0 | 1,679,000 |
Reductions for tax positions related to prior years | (32,000) | 0 |
Balance at December 31 | $ 3,609,000 | $ 2,128,000 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Details) $ in Thousands | Jun. 01, 2018ft² | Oct. 30, 2017USD ($)shares | Jun. 22, 2017patent | Aug. 31, 2017USD ($)shares | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) |
Commitments and Contingencies Disclosure [Abstract] | ||||||
Operating lease rent expense | $ 400 | $ 400 | ||||
Remaining minimum amount committed | 1,100 | |||||
Loss Contingencies [Line Items] | ||||||
Operating leases, additional square feet | ft² | 2,700 | |||||
Fair value of stock issued for legal settlements | $ 0 | $ 1,606 | ||||
Polyzen Inc. | Settled Litigation | ||||||
Loss Contingencies [Line Items] | ||||||
Patents allegedly infringed upon | patent | 3 | |||||
Issuance of common stock, net of issuance costs (in shares) | shares | 150,000 | |||||
Fair value of stock issued for legal settlements | $ 1,400 | |||||
Phagia Technology Inc. | Settled Litigation | ||||||
Loss Contingencies [Line Items] | ||||||
Issuance of common stock, net of issuance costs (in shares) | shares | 25,000 | |||||
Fair value of stock issued for legal settlements | $ 200 |
Commitments and Contingencies_2
Commitments and Contingencies - Schedule of Future Noncancelable Minimum Payment Obligations Under Operating Lease (Details) $ in Thousands | Dec. 31, 2018USD ($) |
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | |
December 31, 2019 | $ 474 |
December 31, 2020 | 487 |
December 31, 2021 | 501 |
December 31, 2022 | 127 |
Total future payments due under building lease | $ 1,589 |
Selected Quarterly Financial _3
Selected Quarterly Financial Data (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | ||||||||||
Revenue | $ 2,036 | $ 2,987 | $ 2,732 | $ 1,346 | $ 3,692 | $ 2,787 | $ 1,963 | $ 1,472 | $ 9,101 | $ 9,914 |
Gross profit | 532 | 1,569 | 1,000 | 577 | 1,990 | 1,473 | 973 | 649 | 3,678 | 5,085 |
Loss from operations | (8,660) | (6,635) | (9,602) | (12,068) | (9,922) | (9,138) | (7,640) | (7,691) | (36,965) | (34,391) |
Net loss | $ (8,756) | $ (6,745) | $ (9,753) | $ (12,126) | $ (10,120) | $ (9,170) | $ (7,730) | $ (7,745) | $ (37,380) | $ (34,765) |
Net loss per share, basic and diluted (in dollars per share) | $ (0.39) | $ (0.35) | $ (0.57) | $ (0.71) | $ (0.60) | $ (0.55) | $ (0.46) | $ (0.47) | $ (1.96) | $ (2.08) |
Subsequent Events - Additional
Subsequent Events - Additional Information (Details) $ in Thousands | 2 Months Ended | 12 Months Ended | |
Feb. 22, 2019USD ($)shares | Dec. 31, 2018USD ($)installmentshares | Dec. 31, 2017 | |
Subsequent Event [Line Items] | |||
Number of shares, options granted (in shares) | shares | 1,640,589 | ||
Outstanding balance | $ 9,930 | ||
Subsequent Event | Stock options to purchase common stock | |||
Subsequent Event [Line Items] | |||
Number of shares, options granted (in shares) | shares | 900,572 | ||
December 2016 Loan Agreement | |||
Subsequent Event [Line Items] | |||
Outstanding balance | $ 10,000 | ||
Term loan, fixed interest rate | 7.00% | ||
Number of installments | installment | 36 | ||
December 2016 Loan Agreement | Subsequent Event | |||
Subsequent Event [Line Items] | |||
Outstanding balance | $ 20,000 | ||
Line of Credit | 5th Amendment To The Loan And Security Agreement Tranche 2 | Subsequent Event | |||
Subsequent Event [Line Items] | |||
Proceeds from debt | $ 10,000 | ||
Prime Rate | December 2016 Loan Agreement | |||
Subsequent Event [Line Items] | |||
Term loan, variable interest rate | 1.50% | ||
Term loan, fixed interest rate | 5.50% | ||
Maximum | December 2016 Loan Agreement | |||
Subsequent Event [Line Items] | |||
Term loan, fixed interest rate | 5.00% |