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Summary of Significant Accounting Policies (Tables)
12 Months Ended
Dec. 31, 2016
Schedule of Revenue and Accounts Receivable for Each Significant Customer

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue

 

Accounts Receivable

 

 

 

Year Ended December 31, 

 

December 31, 

 

Customers

 

2016

    

2015

    

2014

    

2016

    

2015

 

Customer A

 

22

%  

26

%  

26

%  

12

%

28

%

Customer B

 

*

 

13

 

13

 

13

 

23

 

Customer C

 

*

 

*

 

15

 

*

 

*

 

Customer D

 

*

 

*

 

*

 

10

 

*

 

Customer E

 

12

 

*

 

*

 

18

 

*

 


*Less than 10%

Schedule of Fair Value of Financial Assets and Liabilities Measured on Recurring Basis

The following table sets forth the fair value of the Company’s financial assets and liabilities measured at fair value on a recurring basis based on the three-tier fair value hierarchy (in thousands):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2016

 

    

Level 1

    

Level 2

    

Level 3

    

 

Total

Assets:

 

 

 

  

 

 

  

 

 

  

 

 

Money market funds

 

$

29,869

  

$

 —

  

$

 —

  

$

29,869

Total assets measured at fair value

 

$

29,869

  

$

 —

  

$

 —

  

$

29,869

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2015

 

    

Level 1

    

Level 2

    

Level 3

    

 

Total

Assets:

 

 

 

  

 

 

  

 

 

  

 

 

Money market funds

 

$

2,354

  

$

  

$

  

$

2,354

Total assets measured at fair value

 

$

2,354

  

$

 —

  

$

 —

  

$

2,354

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities:

 

 

 

  

 

 

  

 

 

  

 

 

Redeemable convertible preferred stock warrant liability

 

$

  

$

  

$

437

  

$

437

Total liabilities measured at fair value

 

$

 —

  

$

 —

  

$

437

  

$

437

 

Schedule of estimated useful lives of the assets

 

 

 

 

Useful Lives

Computer and network equipment

 

2 years

Manufacturing equipment

 

2 – 7 years

Furniture and fixtures

 

7 years

Software

 

3 years

 

Redeemable Convertible Preferred Stock Warrants  
Schedule of Change in Fair Value of Liability

The following table sets forth a summary of the changes in the fair value of the redeemable convertible preferred stock warrant liability, a Level 3 financial liability, which is measured on a recurring basis (in thousands):

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 

 

 

2016

 

2015

 

2014

Beginning balance

    

$

437

    

$

145

    

$

45

Issuance of redeemable convertible preferred stock warrants

 

 

 —

 

 

307

 

 

106

Change in fair value recorded in other income (expense), net

 

 

(372)

 

 

(15)

 

 

(6)

Reclassification to additional paid-in capital

 

 

(65)

 

 

 —

 

 

 —

Ending balance

 

$

 —

 

$

437

 

$

145

 

Schedule of Assumptions Used in Valuation of Redeemable Convertible Preferred Stock Warrants

 

 

 

 

 

 

 

 

 

 

 

 

 

Year Ended December 31, 

 

 

2016

 

2015

 

2014

 

Expected volatility

    

 

42.4 – 52.0

%

 

43.6 – 52.9

%

 

52.8 - 53.8

%

Risk-free interest rate

 

 

1.22 – 1.86

%

 

1.76 – 2.27

%

 

1.81 – 2.17

%

Expected term (in years)

 

 

4 – 9

 

 

5 – 10

 

 

6 – 10

 

Exercise price

 

$

26.00

 

$

26.00

 

$

26.00

 

Dividend yield

 

 

 —

%

 

 —

%

 

 —

%

 

Derivative Liability  
Summary of the changes in the fair value of the derivative liability, a Level 3 financial liability, which is measured on a recurring basis

The following table sets forth a summary of the changes in the fair value of the derivative liability, a Level 3 financial liability, which is measured on a recurring basis (in thousands):

 

 

 

 

Balance at December 31, 2015

    

$

 —

Issuance of derivative liability

 

 

918

Change in fair value recorded in other income (expense), net

 

 

(798)

Reclassification to additional paid-in capital

 

 

(120)

Balance at December 31, 2016

 

$

 —